The Central Board of Indirect Taxes and Customs (CBIC) has issued the Customs (Finalisation of Provisional Assessment) Regulations, 2025, replacing the 2018 regulations. The notification, published on September 12, 2025, under Notification No. 55/2025-Customs (N.T.), lays down detailed timelines, procedures, and compliance requirements for finalising provisional customs duty assessments.
Key Highlights of the 2025 Regulations
1. Applicability - The new rules apply to all provisional assessments pending as of September 12, 2025, and to those made thereafter. Each bill of entry or shipping bill assessed provisionally will be treated as a separate case.
2. Submission of Documents - Importers and exporters must furnish required documents or information within two months of requisition. An extension of up to two more months may be granted, with a maximum cap of 14 months from the date of provisional assessment.
3. Enquiry & Finalisation -
- Customs officers must complete enquiries within 14 months of provisional assessment.
- Finalisation should be completed within three months after receipt of documents or completion of enquiry, extendable by two months at a time.
- A maximum overall period of two years (extendable by one additional year by the Commissioner of Customs) is allowed.
4. Payment & Adjustment - Importers/exporters may voluntarily pay duty during pendency of provisional assessment. These payments will be adjusted at the time of finalisation. Interest liability applies as per Section 18 of the Customs Act, 1962.
5. Refunds & Recoveries -
- Refunds arising after finalisation will be processed under Section 18(4) and (5) of the Act.
- Unpaid dues (duty, penalty, interest) pending beyond 90 days will be recovered from securities furnished at the time of provisional assessment or through other recovery provisions.
6. Penalty - Importers, exporters, authorised representatives, or customs brokers violating the regulations face penalties under Section 158(2)(ii) of the Customs Act, without prejudice to other legal actions.
Industry Implications
The new framework provides greater certainty by tightening timelines for finalisation and streamlining procedures. Experts note that the clear demarcation of responsibilities and the cap on extensions will improve efficiency and reduce litigation in customs administration.
The regulations also ensure that both revenue protection and trade facilitation are balanced, aligning customs practices with global best standards.
Official copy of the notification has been attached
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