ASSESSMENT
ASSESSMENT
 Assessment is the process of quantification
of duty liability.
As per Section 2(2), ‘ Assessment includes
provisional assessment, reassessment and
any order of assessment in which the duty
assessed is Nil.
FOUR STAGES OF ASSESSMENT
1. Determination of value
2.Classification of goods
3. Determining appropriate rate /
type of duty
4. Final/provisional assessment
duty
Date of Determination of rate of duty and tariff
valuation of imported goods (Section 15)
According to Section 15, the rate of duty and
tariff valuation applicable to imported goods
shall be:1) If the goods are cleared for home consumption under
section 46, then the date on which bill of entry is
presented in that respect.
2) If the goods are cleared from warehouse under section
68 on the date on which a bill of entry for home
consumption in respect of such goods is presented
under this section.
3) In any other case the date of payment of duty.
BILL OF ENTRY :
If the bill of entry is presented before the date of entry
inward of the vessel or aircraft by which goods are imported,
the bill of entry shall be deemed to have been presented on
the date of entry inwards. However, bill of entry can be
presented 30 days before expected date of arrival of vessel.
Therefore the relevant date is:
(i) In case of Importation by
vessel
Date of presentation of bill of
entry (or)
Date of Entry inwards of
vessel, whichever is later.
(ii) Importations by Aircraft
Date of presentation of bill of entry
(or)
Date of arrival of aircraft,
whichever is later.
 Taxable event occurs when the customs barrier is
crossed
Since, exchange rates, rates of duty and tariff
values keep changing, rate in force on the
date of presentation of bill of entry for home
consumption will be applicable subject to
exceptions stated above.
The rate of duty and tariff valuation application to and
export goods, shall be the rate and valuation in force: in the case of goods entered for export under section
50, on the date on which the proper officer makes an
order permitting clearance and loading of the goods
for exportation under Section 51
 in the case of any other goods, on the date of
payment of duty.
This section is not applicable to baggage and goods
exported by post.
Date of Determination of rate of duty
and tariff valuation
(A) IMPORTED GOODS
Event
Date
1. If goods are cleared for
home consumption.
The date on which a bill of
entry is presented.
2. If goods are cleared from
warehouse.
The date on which a bill of
entry for home consumption
is presented.
3. If the bill of entry is
presented before the
date of entry inwards
(which can be
presented 30 days
before expected date of
arrival)
(a) In case of importation
of vessel
(b) In case of importation
by aircraft.
4. In any other case.
Date of presentation of ‘bill of
entry’ or date of ‘entry
inwards’ of vessel,, whichever
is later.
Date of presentation of ‘bill of
entry’ or date of arrival of
aircraft, whichever is later.
The date of payment of duty.
(B) EXPORTED GOODS
Event
Date
1. In the case of goods
entered for export.
The date on which the proper
officer makes an order
permitting clearance.
2. In the case of any other
goods.
On the date of payment of
duty.
 In order to reduce the transaction cost of the
importers and expedite the time taken for customs
clearance, the CBEC has made e-payment of duty
mandatory for the importers paying an amount of
Rs, 1,00,000 or more per transaction.
 Further, the Board has clarification that Accredited
Importers under the customs Accredited Client
Programme will have to duty through E-payment
mode only irrespective of the amount of duty to be
paid.
TYPES OF ASSESSMENT UNDER THE
CUSTOMS ACT, 1962
ASSESSMENT
SYSTEM
Sec 17: Final
Assessment
Sec 18:
Provisional
Assessmemt
First
Appraisement
Second
Appraisement
1. Importer/Exporter shall self assess customs duty.
a) An importer entering any imported goods under section
46, or
b) An exporter entering any export goods under section 50.
Shall self assess the duty, if any, leviable on such goods.
2. To verify correctness of self assessed duty proper
officer can examine goods.
[Proper Officer who has been assigned examination function
referred as Dock Appraiser]
May verify the self-assessment of such goods and
examine and testify the goods.
3. For verifying correctness of self assessed duty- Proper
Officer ( Appraising Officer can ask for documents)
For Verification of self assessment under sub section (2)
The proper officer may require the importer, or exporter to
produce any contract, broker’s note, policy of insurance,
catalogue or other document whereby the duty leviable on the
imported goods or export goods as the case may be can be
ascertained, and to furnish any information required for such
ascertainment, which is in his power to produce or furnish.
4. If Proper Officer finds self assessment of assessee is
not proper, then he will Reassess duty. Where it is
found on verification, examination or testing of the
goods or otherwise (that the self assessment is not done
correctly; Proper officers may without prejuice to any other
action which may be taken under this Act. Reassess the duty
leviable on such goods.
Where any re-assessment done under sub section (4) is contrary
to the self-assessment done by the importer or exporter regarding
valuation of goods, classification, exemption or concessions of duty
availed consequent to any notification issued therefore under this Act
and in case other than those where the importer or exporteras the case
may be, confirms his acceptance of the said reassessment in writing.
 The Proper Officer shall pass a SPEAKING ORDER on the reassessment, within 15 days from the date of re-assessment of the bill of
entry or the shipping bill, as the case may be.
5. Assessee will be subjected to PCA (Post Clearance Audit/ On Site
Post Clearance Audit Under new introduce system where
a. re-assessment has not been done or
b. A speaking order has not been passed on re-assessment.
Public Officer may audit the assessment of duty the imported
goods or exported goods
a) At the office or
b) At the premises of the importer or exporter, as may be expedient.
In such manner as may be prescribed [ On Site Post Clearance
Regulation, 2011]
PROVISIONAL ASSESSMENT
1. Provisional Assessment: 3 Situations
 Notwithstanding anything contained in this Act but without
prejudice to Section 46a) Where the importer or exporter is unable to make Self-Assessment
u/s 17 (1) and makes a request in writing to public officer for
assessment.
b) Where Public Officer deems it necessary to subject any imported
goods or export goods to any chemical or other test.
c)
Where the importer or exporter has produced all the necessary
documents and furnished full information, but public officer
deems it necessary to make further enquiry.
d) Where necessary documents have not been produced or information
has not been furnished and Public Officer deems it necessary to
make further enquiry.
2. Finalization of Provisional Assessment: provisional duty to be
adjusted
When the duty leviable on such goods is assessed finally, then the amount paid
shall be adjusted against the duty finally assessed
And if
a) The amount so paid falls short of the duty finally assessed – the importer/
exporter shall pay the deficiency
b) The amount so paid is in excess of the duty finally assessed- the importer/
exporter shall be entitled to a refund.
3. Duty Demand on finalization: Interest payable
The importer or exporter shall be liable to pay interest, on any amount payable
to the Central government, consequences to the final assessment order, @ 15
% p.a. from the 1st day of the month in which the duty is provisionally
assessed till the date of payment thereof.
4. Duty Refundable on finalization: Interest if refund granted
belatedly
If any refundable amount is not refunded within 3 months from the date of
assessment of duty finally, there shall be paid an interest on such
unrefunded amount @ 6% p.a. till the date of refund of such amount.
Situation 1
Importer finds himself unable to make self-assessment the
Importer shall approach public officer for Provisional Assessment
and consequent provisional release of goods in the following
manner:
1. Importer shall submit B/E u/s 46
2. He shall submit a request to in writing to proper officer to
allow clearance of goods on provisional basis .

B/E is filled electronically.

This B/E will be marked to the Appraising Officer

The duty so Provisionally assessed shall be paid by assesse.

Assesee shall also be required to execute Provisional Duty
Bond.
Situation 2. Importer submits B/E u/s 46 – self
assessment done and self assessed duty paid
Since proper officer feels that
a. Chemical testing is required to verify accuracy of selfassessed duty.
b. Further documents/information is required from
imported to verify accuracy of self-assessment duty
c. Further inquiry is required to verify genuineness of
documents/ information already submitted already
submitted by importer
So he detains the imported consignment.
In such situations, importer shall approach Proper
Officer for Provisional Assessment in the following
manner:
1. Importer shall submit a separate written request to
Proper Officer to allow clearance of goods on
provisional basis.
2. Proper Officer may allow release of goods on provisional basis.
In such case, upon finalization, provisional assessment shall get
converted into Re-assessment.
2. Sec. 18 (3) provides that where goods are released on
provisional basis making payment of provisional duty and
subsequently, duty becomes payable consequent to
order of final assessment, then differential duty so arising
shall be paid along with interest @ 18% p.a.
PROVISIONAL ASSESSMENT ORDER
1) Bill of Entry for Home Consumption:
Provisional Assessment Duty paid by importer +
PD Bound taken for (Estimated FA duty – PA
duty).
2) Bill of Entry for Warehousing:
W/Hang Bond taken based upon Provisional
Assessment [ W/ Hing Bond u/s 59= 2 Provisional
Assessment Duty] + PD Bond given for ( Estimated
FA duty PA duty)
ASSESSMENT OF PROJECT IMPORTS
‘Project imports’ means imports for a project (to be
set up India). Under Customs, a special facility has been
made in of capital items imported for SPECIFIED
PROJECTS. As per this facility, all capital items imported
for a project are classifiable under a single Heading 9801
(despite of existing of other more specific headings covering
such capital goods) leading of import duty being leviable
thereon at a uniform rate of 25% only.
The Availment of ‘Project Import: Heading 9801’ is available only
if multiple machinery items are imported for specified/ notified
projects. If a single/ individual machinery is imported for that
project, then this heading is not applicable.
BENEFITS OF PROJECT IMPORTS
‘Project imports’ is an Indian innovation to facilitate
setting up of an expansion of INDUSTRIAL PROJECTS.
a. Imported goods are classified separately under
different tariff headings and assessed to applicable
Customs duty, but as a variety of goods are imported
for setting up an industrial project their separate
classification and valuation for assessment to duty
becomes cumbersome.
b. The supplier of a contracted project, do not value each
and every item or parts of machine, which are supplied
in stages. Hence, ascertaining values for different
items delays assessment leading to demurrage and time
and cost overruns for the project.
SPECIAL CASES OF ASSESSMENT
Assessment Situation
Special Assessment
‘Project
Import’
Project being set-up in
Machineries will not be assessed
India multiple
separately. All imports of project shall
machineries imported into go into single Heading-heading 9801
India for that-each
machinery is attracting
different rate individually.
‘Set of
Articles’
Goods imported as a set
(not individually)- Set
purchased for a particular
price but it is containing
goods attracting different
rates of duty.
If importer can do reasonable
bifurcation of total value on each
goods:
Such bifurcated value shall be assessed
separately
If importer cannot do such
reasonable bifurcation:
Entire set shall be assessed at highest
rate which is applicable to any goods in
the set.
ASSESSMENT OF SET OF ARTICLES
 Section 19 allows assessment for a set of articles at
the highest rate applicable in case separate value is
not available with provision for separate assessment
when evidence of separate values can be given by the
importer.
 ‘Set of articles’ as envisaged in Sec. 19 is one which
consists of more than one item, each complementing
the work of another and retaining their individual
identity all the time.
 For assessment of such sets, Sec 19 provides that
Accessory/ Spare Parts/ Maintenance & Repair
Implements” in the set shall be assessed at rate of duty
applicable to machinery (main article). However, this
will be so, only if following two conditions are fulfilled.
a) Their supply is compulsory with Main Article
b) Their price is included in price of Main Article