The Central Board of Indirect Taxes and Customs (CBIC) has issued a Notification No. 55/2025-Customs N.T. dated September 12, 2025, introducing the Customs (Finalisation of Provisional Assessment) Regulations, 2025, superseding the earlier 2018 regulations. The rules, notified under the Customs Act, 1962, set clearer timelines and procedures for completing provisional assessments of imports and exports.
Under the new regulations, importers and exporters must submit required documents or information within 15 days of requisition, extendable up to two months, with higher authorities empowered to allow additional time in special cases. Enquiries initiated by customs officers must be concluded within 14 months. The finalisation of provisional assessments is to be completed within two years from the date of provisional assessment, except in cases involving appeals, stay orders, or international information requests.
The notification also allows importers/exporters to voluntarily pay duties during the provisional phase, with adjustments made at finalisation. Interest obligations and penalties up to ₹25,000 apply for non-compliance. Additionally, procedures for refunds, duty recovery, and bond cancellations have been detailed to streamline processes.
The updated framework is aimed at speedier resolution, transparency, and accountability in customs assessments.
In exercise of the powers conferred by clause (d) of section 157 read with section 18 and clause (ii) of sub-section (2) of section 158 of the Customs Act, 1962 (52 of 1962), and in supersession of the Customs (Finalisation of Provisional Assessment) Regulations, 2018, except as respects things done or omitted to be done before such supersession, the Central Board of Indirect Taxes and Customs hereby makes the following regulations, namely:-
- Short title and commencement.—
(1) These regulations may be called the Customs (Finalisation of Provisional Assessment) Regulations, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
- Definitions.—
(1) In these regulations, unless the context otherwise requires, –
(a) ‘Act’ means the Customs Act, 1962 (52 of 1962);
(b) ‘date of assent’ of the Finance Act, 2025, shall mean the 29th day of March, of 2025;
(c) ‘documents or information’ shall include the result of chemical or other test;
(2) Words and expressions used herein and not defined in these regulations but defined in the Act shall have the same meanings respectively assigned to them in the Act.
- Application.—
(1) These regulations shall apply to any provisional assessment –
(a) pending as on the date of enforcement of these regulations; or
(b) made on or after the date of enforcement of these regulations:
Explanation. – For the removal of doubts, it is hereby clarified that a bill of entry or shipping bill, as the case may be, that has been assessed provisionally shall be treated as a separate case for finalisation of provisional assessment.
- Time-limit for production of documents or information, etc. by the importer for the purpose of finalisation of provisional assessment.—
(1) Where the proper officer is unable to finalise the assessment for want of any document or information and the importer or exporter, as the case may be, has not produced such document or information, the proper officer shall, by a written requisition, call upon the importer or exporter to furnish such document or information within fifteen days from the date of receipt of such requisition for the purpose of finalisation of the provisional assessment:
Provided that the proper officer may, on a request made by the importer or exporter and on being satisfied that there is sufficient cause for delay in producing such document or information, extend the aforesaid period of fifteen days by a further period not exceeding fifteen days.
(2) Where any document or information is sought by the proper officer, then such information or documents shall be made available by the importer or exporter within two months from the date of such requisition by the proper officer.
Provided that the proper officer may, for reasons to be recorded in writing, allow a further period not exceeding two months on a written request made by the importer or exporter, in case the documents or information are not so made available within the specified time of two months.
Provided further that an officer to whom the proper officer is subordinate, may allow an additional time period as deemed fit, for reasons to be recorded in writing, on request of the importer or the exporter regarding his inability to provide those documents or information as requested by the proper officer.
(2) Where the importer does not furnish the documents under this regulation may be allowed by an officer to whom the proper officer is subordinate beyond fourteen months from the date of provisional assessment.
(3) On submission of all documents or information under sub-regulation (2), the importer or the exporter shall inform the proper officer in writing that he has submitted all the documents or information relevant to the provisional assessment.
Provided that where the documents or information required to be furnished by the importer or the exporter, as the case may be, are not requisitioned by the proper officer within the time allowed under sub-regulation (2), the proper officer shall proceed to finalise the provisional assessment on the basis of documents or information as available on the record.
- Time-limit to conclude enquiry for the purpose of finalisation of provisional assessment.—
(1) Where duty leviable on the imported or export goods is assessed provisionally by the proper officer for the reason that the proper officer deems it necessary to make further enquiry for assessing the imported or export goods, he shall complete the enquiry and transfer the relevant documents along with the report in writing to the proper officer for finalisation of assessment, within fourteen months from the date of provisional assessment.
(2) Where any document or information is required during the enquiry, the proper officer may seek such details within the time prescribed under regulation 2.
- Time-limit and manner of submission of documents or information for the purpose of finalisation of provisional assessment pending as on the 29th March, 2025.—
Where duty leviable on imported or export goods is assessed provisionally by the proper officer for the reasons as per sub-section (1) of section 18 of the Act and is pending for finalisation as on the 29th March, 2025, then time-limit for submission of documents on conclusion of enquiry under regulations 4 or 5, as the case may be, shall be reckoned from 29th March, 2025.
- Payment of duty on own ascertainment before finalisation of provisional assessment.—
Importer or exporter, may pay any amount electronically against the bill of entry or shipping bill, as the case may be, on his own ascertainment, pending the finalisation of the provisional assessment, which shall be adjusted against the duty finally assessed, at the time of finalisation.
Provided that importer or exporter is also liable to pay interest, on the above amount so paid voluntarily, where such amount is determined on re-assessment under sub-section (2) in terms of sub-section (3) of section 18 of the Act.
- Time-limit for finalisation of provisional assessment.—
(1) The proper officer shall finalise the duty provisionally assessed, where it is possible to do so, within three months of –
(a) receipt of documents or information from the importer or the exporter or on the expiry of the time for submission of such documents or information under regulation 4; or
(b) conclusion of enquiry in accordance with regulation 5 of these regulations, where the duty leviable was provisionally assessed for want of further enquiry.
Provided further that any officer to whom the proper officer is subordinate may allow, for reasons to be recorded in writing, a further time period of three months at a time, in case the proper officer is not able to finalise the assessment for reasons beyond his control under clause (a) and sub-regulation (2).
(2) The finalisation of assessment shall be completed within two years from the date of provisional assessment under sub-section (1) of section 18 of the Act.
Provided also that for provisional assessment pending under sub-section (1) of section 18 of the Act, as on the 29th March, 2025, the said period of two years shall be reckoned from such date.
(2) Where the proper officer is unable to assess the duty finally within the time specified under sub-regulation (1), for the reason that—
(a) an information is being sought from an authority outside India through a legal process; or
(b) an appeal in a similar matter of the same person or any other person is pending before the Appellate Tribunal or the High Court or the Supreme Court; or
(c) an interim order of stay has been issued by the Appellate Tribunal or the High Court or the Supreme Court; or
(d) the Board has, in a similar matter, issued specific direction or order to keep such matter pending; or
(e) the importer or exporter has a pending application before the Settlement Commission or the Interim Board,
the proper officer shall inform the importer or exporter concerned, the reason for non-finalisation of the provisional assessment and in such case, the time for two years for finalisation of assessment (provisional assessment) specified under sub-regulation (1), shall run not from the date of provisional assessment but from the date when such reason ceases to exist.
- Manner of finalisation of provisional assessment.—
(1) The provisional assessment shall be finalised as provided under section 18 of the Act.
(2) Where the final assessment is contrary to the provisional assessment, the proper officer shall pass a speaking order following principles of natural justice.
(3) Where the final assessment confirms the provisional assessment, the proper officer shall finalise the same after ascertaining the acceptance of such finalisation from the importer or the exporter on record and inform the importer or exporter in writing of the date of such finalisation.
(4) Where the importer or exporter is to pay the deficiency of the amount finally assessed or re-assessed, as the case may be, after adjustment of the amount already paid, the bill of entry or the shipping bill may be returned for payment of the amount.
Provided that importer or exporter is also liable to pay interest, on the above amount so paid, consequent to the final assessment order or re-assessment order as provided under sub-section (2), of section 18 of the Act.
- Manner of closure subsequent to the finalisation of provisional assessment.—
(1) On finalisation of Assessment done provisionally under regulation 9, where –
(a) the final assessment has confirmed the provisional assessment; or
(b) the duty along with the interest has been paid in full, in case of home consumption or exportation, where the bill of entry or shipping bill has been returned in original; or
(c) the importer has executed appropriate bond including bond furnished in relation to the excess duty, in case of warehoused goods,
the Bond executed at the time of provisional assessment with security, if any, shall be cancelled or re-credited, as the case may be, and the security shall also be returned, if there are no pending dues.
(2) Where the duty, after finalisation, remains unpaid or when the sum due has not been paid for more than ninety days, which has been adjudged after the finalisation of the assessment under sub-section (2) of section 18 of the Act and the sum becomes a debt finally due for recovery, then the sum due which remains unpaid shall be adjusted from the security, if any, executed at the time of provisional assessment, as the case may be and the balance if any, shall be recovered in the manner provided in section 142 of the Act, under due intimation to the importer or the exporter.
(3) Where the importer or exporter is entitled to a refund, after the finalisation of provisional assessment, the refund shall be processed in terms of sub-sections (4) and (5) of section 18 of the Act.
- Extension of time-limit for provisional assessment.—
Where the Board is satisfied that it is necessary and expedient to extend the time-limit provided in regulations 4, 5, 6, or 8, the Commissioner of Customs may, on sufficient cause being shown and reasons to be recorded in writing, extend the time-limit for the purpose of finalisation of assessment with an additional time not exceeding six months at a time.
- Penalty.—
The importer or exporter or his authorised representative or Customs Broker who contravenes any of the provisions of these regulations or abets the contravention thereof, or fails to comply with any provisions of these regulations, shall be liable to a penalty of an amount not exceeding twenty-five thousand rupees under clause (ii) of sub-section (2) of section 158 of the Act, without prejudice to any other action which may be taken under the Act, rules or regulations made thereunder or under any other law for the time being in force.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/The-Customs-Finalisation-of-Provisional-Assessment-Regulations-2025.pdf
