ASSESSMENT &

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Chapter 3 DATE FOR DETERMINATION
OF RATE & TARIFF VALUE
Table of Content

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Sections Descriptions
The Provisional Collection Of Taxes Act, 1931
15 Date for Determination of Duty
Rate & Tariff Value for Imported goods Sec. 3 - Power to make declarations under this Act. Where a Bill to be
16 Date for Determination of Duty Rate & introduced in Parliament on behalf of Government provides for the
Tariff value for Export goods. imposition or increase of a duty of customs or excise, the Central
17 Self Assessment Government may cause to be inserted in the Bill a declaration that it is
expedient in the public interest that any provision of the Bill relating to
18 Provisional Assessment
● Such imposition or
19 Articles brought in Set
● Increase
Project import shall have immediate effect under this Act.

Sec.4- Effect of declarations under this Act, and duration thereof.

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(1) A declared provision shall have the force of law immediately on the
expiry of the day on which the Bill containing it is introduced.
(2) A declared provision shall cease to have the force of law under the
provisions of this Act–
(a) when it comes into operation as an enactment, with or without
amendment, or
(b) when the Central Government, in pursuance of a motion passed by
Parliament, directs, by notification in the Official Gazette, that it shall
cease to have the force of law.
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 Date - 15/03/20
Date - 27/02/20 Duty Rate - 10%
Duty Rate - 20%
Date - 5/03/20

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Territorial Water Duty Rate - 20% CUSTOMS
CUSTOMS

Bill
of
Entry

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ENTRY INWARD ORDER
Applicable
Rate ?
10%

Date - 20/02/20
Date - 5/03/20 Duty Rate - 10%
Duty Rate - 20%
Date - 10/03/20
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Territorial Water Duty Rate -20% CUSTOMS
CUSTOMS

Bill
of
Entry

ENTRY INWARD ORDER Applicable

Rate ?
20%

Date - 25/03/20
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Date - 28/02/20 Duty Rate - 10%

Duty Rate - 20%
Date - 15/06/20
Territorial Water Into Duty Rate - 15%
CUSTOMS
Bond
CUSTOMS
B/E

Date - 5/03/20 Ex
Duty Rate - 10% Bond
B/E
ENTRY INWARD ORDER

Applicable
Rate ?
15%

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 DATE FOR DETERMINATION RATE & TARIFF VALUE
SECTION 15(1) FOR IMPORTED GOODS

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If goods cleared In the case of any
If goods entered for home consumption
from warehouse other goods

After : If bill of entry is presented Prior : If bill of entry is Relevant date for duty rate Relevant date for duty rate

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after entry inward of vessel or presented & tariff value is date of & tariff value is date of
arrival of aircraft. presentation of Exbond BOE payment of duty.

Relevant date for duty rate and tariff
value is date of presentation of bill
of entry.
Before entry inward of vessel Before arrival of aircraft/ Vehicle
Relevant date is date of entry Relevant date is date of arrival of
inward of vessel aircraft / Vehicle

(2) The provisions of this section shall not apply to baggage and goods imported by post.
Tutorial Notes
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Relevant date for duty rate and tariff value for baggage and post is governed by Sec. 77 and Sec. 83 of Custom Act 1962 respectively.

SECTION 16(1) FOR EXPORT GOODS

If goods entered for Export u/s 50 In the case of any other goods

Relevant date for duty rate and tariff value is date of Let Export Order Relevant date for duty rate and tariff value is date of
(ie, order for loading for exportation) given by Proper Officer. payment of export duty.

(2) The provisions of this section shall not apply to baggage and goods exported by post.

EXPORTED GOODS
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SHIPPING BILL Date Shipping

- 20/02/20
Date - 20/03/20 Bill
Duty Rate - 10%
Duty Rate - 10% Shipping
Bill

Territorial Water CUSTO

MS CUSTO
MS

LET EXPORT
ORDER RECEIVED

Date - 5/03/20 Applicable

Duty Rate - 15% Rate is
15%

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 Examination
Question An Exporter exported goods valuing ` 1,00,000 to United States of America (USA) by a vessel. Other
details are as follows:

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Particulars Date of submission Rate of export duty
Shipping Bill 1.8.2019 10%
Entry outwards granted to the 5.8.2019 8%
vessel by the proper officer of Customs
Let export order received 6.8.2019 8%
Ship let for USA from the Indian port 7.8.2019 15%

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Ship crossed the territorial water of India 8.8.2019 12%

You are required to find the customs duty payable for exported goods?
Answer:

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ASSESSMENT
Section 2(2) Assessment” means determination of the dutiability of any goods and the amount of duty, tax, cess or any
other sum so payable, if any, under this Act or under the Customs Tariff Act, 1975 or under any other law for the time being

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in force, with reference to—
(a) the tariff classification of such goods as determined in accordance with the provisions of the Customs Tariff Act
(b) the value of such goods as determined in accordance with the provisions of this Act and the Customs Tariff Act
(c) exemption or concession of duty, tax, cess or any other sum, consequent upon any notification issued therefor under
this Act or under the Customs Tariff Act or under any other law for the time being in force

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(d) the quantity, weight, volume, measurement or other specifics where such duty, tax, cess or any other sum is leviable on
the basis of the quantity, weight, volume, measurement or other specifics of such goods
(e) the origin of such goods determined in accordance with the provisions of the Customs Tariff Act or the rules made
thereunder, if the amount of duty, tax, cess or any other sum is affected by the origin of such goods
(f) any other specific factor which affects the duty, tax, cess or any other sum payable on such goods,
and includes provisional assessment, self-assessment, re-assessment and any assessment in which the
duty assessed is nil

SEC 17 SELF ASSESSMENT & RE -ASSESSMENT

a) Duty to be self-assessed by the importer/exporter assessment not done correctly
An importer entering any imported goods under section 46 (Bill Where it is found on verification, examination or testing of the
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of entry), or an exporter entering any export goods under goods or otherwise that the self-assessment is not done
section 50 (shipping bill), shall, save as otherwise provided in correctly, the proper officer may, without prejudice to any other
section 85 (i.e. stores allowed to be warehoused without action which may be taken under this Act, re-assess the duty
assessment of duty), self-assess the duty, if any, leviable on leviable on such goods.
such goods. d) Speaking order for re-assessment to be passed unless
The proper officer may verify the entries made under section the importer agrees with the reassessment
46 or section 50 and the self assessment of goods referred to Where any re-assessment done under sub section (4) is
in sub section 1 and for this purpose, examine or test any contrary to the self-assessment done by the importer or
imported goods or export goods or such part thereof as may be exporter
necessary.
If importer confirmed his Re-assessment done by proper
Provided that the selection of cases for verification shall acceptance on re- officer is final
primarily be on the basis of risk evaluation through appropriate assessment -
selection criteria.
If importer does not The proper officer shall pass a
confirm his acceptance speaking order on the re-
b) Verification by proper officer on re-assessment - assessment, within 15 days
The purpose of Verification, the proper officer may require the from the date of re-assessment
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importer, exporter or any other person to produce any
document or information, whereby the duty leviable on the
imported goods or export goods, as the case may be, can be
ascertained and thereupon, the importer, exporter or such
other person shall produce such document or furnish such
information.
c) Reassessment of duty by the proper officer if self-
of the bill of entry or the shipping
bill, as the case may be.
Explanation- In cases where an importer has entered any
imported goods under section 46 or an exporter has entered
any export goods under section 50 before 08.04.2011, such
imported goods/ export goods shall continue to be governed by
the provisions of erstwhile section 17.

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 SEC 18 PROVISIONAL ASSESSMENT
If Warehousing
1) Notwithstanding anything contained in this Act but without prejudice to the provisions of without
section 46 and Section 50 Warehousing
is allowed

a)Where the importer or
exporter is unable to make
self-assessment under
section 17(1) and makes a
b)Where the proper officer
deems it necessary to
subject any imported
goods or export goods to
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c)Where the importer or exporter
has produced all the necessary
documents and furnished full
information but the proper officer
d)Where necessary documents
have not been produced or
information has not been
furnished and the proper officer

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request in writing to the any chemical or other test; deems it necessary to make deems it necessary to make
proper officer for assessment further enquiry further enquiry

The proper officer may direct that the duty leviable on such goods be assessed provisionally if the importer or the exporter, as
the case may be, furnishes such security as the proper officer deems fit for the payment of the deficiency, if any, between the
duty as may be finally assessed or re-assessed as the case may be, and the duty provisionally assessed
(1A) Where, pursuant to the provisional assessment under sub-section(1), if any document of information is required by the
proper officer for final assessment, the importer or exporter, as the case may be, shall submit such document or information
within such time, and the proper officer shall finalise the provisional assessment within such time and in such manner, as may
be prescribed.
FINAL ASSESSMENT
1) When the duty leviable on such goods is assessed finally or re-assessed by the proper officer in accordance
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with the provisions of this Act, then

in the case of goods cleared for home consumption or exportation,

in the case of warehoused goods

If Finally Assessed or If Finally Assessed 0r reassessed the proper officer may, where the duty finally
reassessed Duty is more than or Duty is less than the duty assessed or re-assessed, as the case may be,
equals to duty provisionally paid provisionally paid is in excess of the duty provisionally assessed,

Differential amount payable to Excess amount eligible for refund with require the importer to execute a bond,
Government with Interest Interest binding himself in a sum equal to thrice
Refund is available subject to Doctrine the amount of the excess duty
of Unjust enrichment
Liability to Pay Interest: The importer or exporter shall be liable to pay interest, on any amount payable to Central Government,
consequent to the final assessment order, at the rate of 15% p.a. from the first day of the month in which the duty is provisionally
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assessed till the date of payment thereof.

Example :-
Moris Lal has imported goods from Germany and is finally re-assessed u/s 18(2) of the Customs Act, 1962 is as follows:
Date of provisional assessment 12 Dec 2019 Duty demand on consignment 1,80,000
Date of final reassessment 2 Feb 2020 Date of payment of duty demanded 5 Feb 2020
Determine the interest payable
Answer:-
As per section 18(3) of the Customs Act, 1962, an importer is liable to pay interest at the rate of 15% p.a. on any amount payable
consequent to the re-assessment order from the first day of the month in which the duty is provisionally assessed till the date of
payment.
Therefore, in the given case, Moris Lal is liable to pay following interest
= `1,80,000 × 15% × 67/365 = ` 4,956 (rounded off)
Entitlement of Interest on Refund: If any amount refundable is not refunded within three months from the date of assessment of
duty finally or re-assessment of duty, as the case may be there shall be paid an interest on such unrefunded amount at rate of 6%
p.a. till the date of refund of such amount.
Refund is available subject to doctrine of unjust enrichment

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 CUSTOM FINALISATION OF PROVISIONAL ASSESSMENT (Regulation, 2018) (N/n 73/2018-Custom (N.T.)
Application : These regulation shall apply to the provisional assessments ordered on and after the enforcement of these
regulations.
Time Limit and manner for submission of documents or information for the purpose of finalisation of provisional

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assessment :a) the necessary documents have not been produced or information has been furnished by the importer or the
exporter; or
b) the proper officer requires the importer or the exporter to produce any additional documents or information,
then the necessary document required for final assessment to be submitted within 1 month of order of provisional
assessment or date of such requisition by proper officer.

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2) Proper officer shall within 15 days in writing specify the details of theinformation to be furnished.
3) Extend :
a) Proper officer - further upto 3 months
b) Additional commissioner or Joint Commissioner extend another by 3 months
c) Commissioner of Custom extend the time period further as demanded
Note:- Bill of entry/shiping bill that has been assessed provisionally shall be treated separate case of provisional
assessment
4) Time Limit for finalisation of provisional assessment : within 2 months after receipt of all information or carrying chemical or
other test or investigation.
The Commissioner of Customs concerned may allow extension, for reasons to be recorded in writing, a further time period of
three months.
5) If duty payable in final assessment is more than provisional assessment than deficient amount adjusted against security given
with bond.
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6) Penalty : If any importer or exporter or his authorised representative or Customs Broker contravenes any provision of these
regulations or abets such contravention, or fails to comply with any provision of these regulations, he shall be liable to a penalty
which may extend to fifty thousand rupees.

SEC: 19 DETERMINATIONS OF DUTY WHERE GOODS CONSIST OF ARTICLES LIABLE TO DIFFERENT RATES OF DUTY
Except as otherwise provided in any law for time being in force, where goods consist of set of articles, Duty shall be calculated
as follows:

DUTY WITH REFERENCE TO QUANTITY; Article liable to duty with reference to quantity shall be
chargeable to that duty.
i.e. Duty is payable as follows
A B C D
A : 10/kg B : 20/kg
` 10/Kg. ` 20/Kg. ` 5/Kg. ` 2/Kg. C : 5/kg D : 2/kg.
Duty with reference to value :
IF THEY ARE LIABLE TO DUTY AT THE SAME RATE, All articles shall be chargeable to duty at that rate.
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i.e. @ 10%
A B C D

10% 10% 10% 10%

IF THEY ARE LIABLE TO DUTY ATDIFFERENT RATE, All articles shall be chargeable to duty at the highest rate.
[Even though some article are at NIL rate] i.e.10%
NIVEA
But if the importer produces evidence to the satisfaction
of the proper officer or the evidence is available regarding
the value of any of the articles liable to different rates of
duty, such article shall be chargeable to duty separately at
10% 5% 8% Nil the rate applicable to it.

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Assessment of accessories supplied with main equipment:
Accessories of any article which satisfy the condition of Accessories (conditions) rules, 1963, made in this behalf are chargeable to duty
at the same rate as that of the main article.
Accessories (condition) rule, 1963:

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1. Accessories of and spare parts and maintenance or repairing implements form, any article,
2. When imported along with the article shall be chargeable at the same rate of the duty as that article,
3. If proper officer is satisfied that in the ordinary course of trade:-
► Such accessories, parts, implements are compulsorily supplied along with that article and
► No separate charge is made for such supply, their price being included in price of the article.

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PROJECT IMPORTS [M-05]

► Where an Industrial or similar project is going to be installed or commissioned or an existing unit is planned to expand,
for its initial setting up, a numbers of different machineries, raw material, components, auxiliary equipments, spares
etc. are required all these items are classifiable under different heading,
► It involve different duty for different items and careful scrutiny of each and every item for assessment, this leads to delay in
clearance and certain amount of hardship over importers.
► Thus to alleviate the same and streamline the process of assessment, new tariff heading with a flat rate was framed to
cover all project imports under CTA1975 (heading no. 98.01).

Eligible Projects
● Industrial plants ● Power projects
● Project for oil or mineral exploration ● Irrigation projects
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● Mining projects ● Other project as specified by C.G.
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