Implementation of New Customs Provisional Assessment Rules.

The Finance Act, 2025 has introduced significant amendments to Section 18 of the Customs Act, 1962, dealing with Provisional Assessment. These changes aim to streamline timelines, enhance compliance, and ensure greater transparency in customs procedures.

1. Key Amendments under Finance Act, 2025

The following changes have been notified with effect from 29th March, 2025:

• A two-year time limit for finalisation of provisional assessments has been introduced. This can be extended by the Principal Commissioner of Customs or Commissioner of Customs if sufficient cause is shown.
• For pending cases, the time limit will apply from the date of enactment, i.e., 29th March, 2025.
• Certain grounds have been defined under which the two-year time limit will not apply from the date of provisional assessment, but instead from the date when such reasons cease to exist.
• Section 18 also empowers the government to prescribe timelines for submission of documents or information by the importer/exporter and the procedure for finalisation.

2. Notification of Customs (Provisional Assessment) Regulations, 2025

In line with the above, the Customs (Provisional Assessment) Regulations, 2025 were notified vide Notification No. 55/2025-Customs (NT) dated 12.09.2025, replacing the earlier 2018 regulations.

2.1 Salient Features of the New Regulations

1. Fourteen-month time limit: Importers/exporters must submit pending documents, information, or test reports within 14 months from the date of provisional assessment. Similarly, enquiries must be completed within this timeframe.
2. If documents are not submitted, the Proper Officer will finalise based on available information, after providing an opportunity of hearing, following principles of natural justice.
3. The new rules apply to pending cases as on 29.03.2025. Such cases must be finalised by 29.05.2026.
4. Proper Officers should, where possible, finalise provisional assessments within 3 months of receiving required documents or completing enquiries. Extensions can be sought but must remain within the statutory timelines.
5. Time limits may be extended by the Principal Commissioner/Commissioner of Customs if sufficient cause is shown.
6. Importers/exporters may voluntarily pay ascertained duty amounts (along with interest) anytime during provisional assessment. Such amounts will be adjusted against final duty.
7. Regulations are aligned with the new statutory time limits in Section 18.
8. Proper officers must issue a speaking order while finalising. If the final assessment differs from provisional, principles of natural justice must be applied. If the provisional and final assessments match, written acceptance from the importer/exporter is required.
9. If additional duty becomes payable, it must be paid along with applicable interest. If entitled to a refund, the same shall be processed under Section 18(4)/(5).
10. Upon finalisation, the bond and security furnished earlier will be cancelled/returned, provided no dues are pending.
11. Any unpaid dues (duty, interest, fine, penalty, etc.) older than 90 days will be recovered through adjustment of security or under Section 142 of the Act.
12. These regulations will also apply to provisional assessments under Project Imports.
    
    3. Unified Multi-Purpose Bond

As per Circular No. 04/2025-Customs dated 17.02.2025, importers/exporters can now furnish a Single Unified Multi-Purpose Electronic Bond in place of transaction-wise bonds across ports.

4. Monitoring and Compliance

• Cases pending for more than 17 months must be reported to the Commissioner of Customs for monitoring and decision on extensions.
• Provisional assessment continues to be a facilitative mechanism, ensuring clearance of goods even when final details are not available. The updated framework will improve predictability, efficiency, and transparency in customs processes.

5. Way Forward

Officers under respective jurisdictions are expected to be sensitised on the above provisions to ensure strict compliance.
Stakeholders are advised to stay vigilant about the document submission timelines and proactively utilise the electronic multipurpose bond facility for ease of operations.

6. Clarifications

Any difficulties in implementation may be reported to the Board for necessary action or clarification.

Notification Reference: Customs
Circular No. 22/2025-Customs
12 /09/2025