I Self-As­sess­ment of Cargo: Ge­n­e­sis and Sig­nif­i­cance

J Krishnan, Past Pres­i­dent, ACAAI and MD, Natesa Iyer & Co, has un­veiled sev­eral as­pects of Self-As­sess­ment Pro­gramme of CBEC, while he was speak­ing at the re­cently-held 40th An­nual Con­ven­tion of ACAAI in Jaipur. Car­gotalk presents the high­lights of his

Cargo Talk - - Contents -

Af­ter such ex­am­i­na­tion and test­ing (by a proper cus­toms of­fi­cer), the duty, if any, levi­able on such goods, save as oth­er­wise pro­vided in Sec­tion 85, shall be

as­sessed.”

J Krishnan Past Pres­i­dent, ACAAI and MD

Natesa Iyer & Co

as the pre­cur­sor of Self As­sess­ment; Sec­tions 2, 17, 18, 46, 50 and 157 of Cus­toms Act were amended sig­nif­i­cantly in the 2011 Bud­get. As re­sult, the onus of clas­si­fi­ca­tion and duty as­sess­ment was shifted to the im­porter/ ex­porter.

Ac­cord­ing to the ear­lier Sec­tion 17 ( PreBud­get 2011) in the Cus­toms Act, 1962 on As­sess­ment of Duty:

Af­ter an im­porter en­ters any im­ported goods un­der Sec­tion 46, or an ex­porter en­ters any ex­port goods un­der Sec­tion 50; the im­ported goods or the ex­port goods, as the case may be, or such part thereof as may be nec­es­sary may, with­out un­due de­lay, should be ex­am­ined and tested by the proper of­fi­cer.

Af­ter such ex­am­i­na­tion and test­ing, the duty, if any, levi­able on such goods, save as oth­er­wise pro­vided in Sec­tion 85, shall be as­sessed.

For the pur­pose of as­sess­ing duty un­der Sub-Sec­tion (2), the proper of­fi­cer may re­quire the im­porter, ex­porter or any other per­son 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 it is in his power to pro­duce-or fur­nish, and there­upon the im­porter, ex­porter or such other per­son shall pro­duce such doc­u­ment and fur­nish such in­for­ma­tion.

Not­with­stand­ing any­thing con­tained in this sec­tion, im­ported goods or ex­port goods, prior to the ex­am­i­na­tion or test­ing thereof, may be per­mit­ted by the proper of­fi­cer to be as­sessed for duty on the ba­sis of the state­ments made in the en­try re­lat­ing thereto and the doc­u­ments pro­duced and the

in­for­ma­tion fur­nished un­der Sub-Sec­tion (3); but if it is found sub­se­quently on ex­am­i­na­tion or test­ing of the goods or oth­er­wise that any state­ment in such en­try or doc­u­ment or any in­for­ma­tion so fur­nished is not true in re­spect of any mat­ter rel­e­vant to the as­sess­ment, the goods may, with­out prej­u­dice to any other ac­tion which may be taken un­der this Act, be re-as­sessed to duty.

New Sce­nario af­ter Bud­get 2011

An im­porter en­ter­ing any im­ported goods un­der Sec­tion 46, or an ex­porter en­ter­ing any ex­port goods un­der Sec­tion 50, shall, save as oth­er­wise pro­vided in Sec­tion 85, self-as­sess the duty, if any, levi­able on such goods.

The proper of­fi­cer may ver­ify the self­assess­ment of such goods and for this pur­pose, ex­am­ine or test any im­ported goods or ex­port goods or such part thereof as may be nec­es­sary.

For ver­i­fi­ca­tion of self-as­sess­ment un­der Sub-Sec­tion (2), the proper of­fi­cer may re­quire the im­porter, ex­porter or any other per­son to pro­duce any con­tract, bro­ker’s note, insurance pol­icy, 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, and there­upon, the im­porter, ex­porter or such other per­son shall pro­duce such doc­u­ment or fur­nish such in­for­ma­tion.

Where it is found on ver­i­fi­ca­tion, ex­am­i­na­tion or test­ing of the goods or oth­er­wise that the self-as­sess­ment is not done cor­rectly, the proper of­fi­cer may, with­out prej­u­dice to any other ac­tion which may be taken un­der this Act, re-as­sess the duty levi­able on such goods.

Where any re-as­sess­ment done un­der Sub-Sec­tion (4) is con­trary to the self­assess­ment 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 cases other than those where the im­porter or ex­porter, as the case may be, con­firms his ac­cep­tance of the said re-as­sess­ment in writ­ing; the proper of­fi­cer shall pass a speak­ing or­der on the re-as­sess­ment, within 15 days from the date of re-as­sess­ment of the bill of en­try or the ship­ping bill, as the case may be.

Where re-as­sess­ment has not been done or a speak­ing or­der has not been passed on re-as­sess­ment, the proper of­fi­cer may au­dit the as­sess­ment of duty of the im­ported goods or ex­port goods at his of­fice or at the premises of the im­porter or ex­porter, as may be ex­pe­di­ent, in such man­ner as may be pre­scribed.

For the re­moval of doubts, it is hereby de­clared that 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 the date on which the Fi­nance Bill, 2011 re­ceives the as­sent of the Pres­i­dent, such im­ported

If it is found that Self­Assess­ment of duty has not been done cor­rectly by the im­porter or ex­porter, the proper of­fi­cer may re-as­sess the duty. This is with­out prej­u­dice to any other ac­tion that may be war­ranted un­der the Cus­toms Act, 1962.

goods or ex­port goods shall con­tinue to be gov­erned by the pro­vi­sions of Sec­tion 17 as it stood im­me­di­ately be­fore the date on which such as­sent is re­ceived.

Did you know?

If it is found that Self-As­sess­ment of duty has not been done cor­rectly by the im­porter or ex­porter, the proper of­fi­cer may re-as­sess the duty. This is with­out prej­u­dice to any other ac­tion that may be war­ranted un­der the Cus­toms Act, 1962. On re-as­sess­ment of duty, the proper of­fi­cer shall pass a speak­ing or­der, if so de­sired by the im­porter, within 15 days of re-as­sess­ment. This re­quire­ment is ex­pected to arise when the im­porter or ex­porter does not agree with re-as­sess­ment, which is dif­fer­ent from the orig­i­nal Self-As­sess­ment.

There may be sit­u­a­tions when the proper of­fi­cer of Cus­toms finds that ver­i­fi­ca­tion of self-as­sess­ment in terms of Sec­tion 17 re­quires test­ing/fur­ther doc­u­ments/ in­for­ma­tion, and the goods can­not be re­assessed quickly, but are re­quired to be cleared by the im­porter/ex­porter on ur­gent ba­sis. In such cases, pro­vi­sional as­sess­ment may be done in terms of Sec­tion 18 of the Cus­toms Act, 1962. Once the im­porter/ ex­porter fur­nishes se­cu­rity as deemed fit by the proper Cus­toms of­fi­cer for dif­fer­en­tial duty equal to duty pro­vi­sion­ally as­sessed by him and the duty payable af­ter re-as­sess­ment.

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