Customs Act, 1962 — Chapter V: Levy of, and Exemption from, Customs Duties
18. Provisional assessment of duty
(1) Notwithstanding anything in this Act, without prejudice to sections 46 and 50, the proper officer may direct provisional assessment of duty, on such security as he deems fit, where: (a) the importer/exporter is unable to self-assess and requests assessment in writing; (b) the proper officer deems chemical or other testing necessary; (c) the importer/exporter has furnished full information but the officer needs further enquiry; or (d) documents/information are missing and further enquiry is needed.
(1A) Where further documents/information are required for final assessment, the importer/exporter shall submit them within the prescribed time, and the proper officer shall finalise the provisional assessment within the prescribed time and manner.
(2) On final assessment or re-assessment: (a) for goods cleared for home consumption or export, the amount paid is adjusted against the duty finally assessed/re-assessed, with the importer/exporter paying any deficiency or receiving a refund of any excess; (b) for warehoused goods, if the final duty exceeds the provisional duty, the proper officer may require a bond for twice the excess amount.
(3) Interest is payable by the importer/exporter on amounts due to the Central Government following final assessment/re-assessment, at the rate fixed under section 28AA, from the first day of the month of provisional assessment until payment.
(4) If a refundable amount under sub-section (2)(a) is not refunded within three months of final assessment/re-assessment, interest is payable on the un-refunded amount at the rate fixed under section 27A until refund.
(5) Duty refundable under sub-section (2) and interest under sub-section (4) is paid directly to the importer/exporter (rather than credited to the Fund) where relatable to: (a) duty/interest borne by the importer or exporter without passing on the incidence; (b) duty/interest on imports by an individual for personal use; (c) duty/interest borne by the buyer without passing it on; (d) export duty under section 26; (e) drawback of duty under sections 74 and 75.
