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

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.