The Central Board of Excise and Customs (CBEC) has released a Manual for Self Assessment. It explains the legal provisions and procedures to be followed and notified for new regulations for filing bills of entry/shipping bills electronically and for provisional assessment. The idea is to move to trust-based Customs control.
The new system of self-assessment can help easier movement of cargo through the Customs but importers/exporters will be responsible for any mistakes they make and also face periodic Customs audit at their offices after clearance of the goods.
The self-assessment scheme, shifting the responsibility for assessment to importers/exporters while retaining the power of Customs officers to verify such assessments and make re-assessment, was introduced this April by amendments to Sections 17, 18, 46 and 50 of the Customs Act, 1962. It took a while for the CBEC to formulate the regulations and amend the formats of bills of entry/shipping bills, in consultation with its director-general (systems). Meantime, CBEC had notified the regulations for on-site, post-clearance audit at the premises of importers/exporters, liberalised the extent of intervention through a Risk Management System (RMS) and also clarified that exporters would not be put to unnecessary difficulties through post-clearance audits.
The essence of the new self-assessment scheme is that the verification of declarations and assessment is done by the importers/exporters, except for cases wherein a speaking order is passed while re-assessing the duty. The importer/exporters can file their bills of entry/shipping bills from remote locations (either themselves or through the Customs House agents) or by using the service centres at the Customs Houses. Once the system accepts the declarations and generates the bill of entry/shipping bill number, the self-assessment is complete. Then, it is a matter of duty payment (electronically, for duty of Rs 1 lakh or more), generation of bills of entry/shipping bill copies and obtaining the subsequent export or other order, on an automatic basis.
The Customs officer can intervene, especially if the RMS selects any bill of entry/shipping bill for re-assessment. He may order examination or testing of the imported/exported goods or may require production of any relevant document or ask the importer/exporter to furnish any relevant information. If he finds the importer/exporter has not done self-assessment correctly, he may pass a speaking order for reassessment, after giving due opportunity. He may order provisional assessment if he does not have enough details to verify the self-assessment or if the importer/exporter pleads inability to make self-assessment.
As the importers/exporters have to bear the responsibility for correct self-assessment and declarations, the CBEC has now issued a helpful manual. It covers standard operating procedures, compulsory compliance requirements and key aspects of Customs requirements such as classification, valuation, exemption notifications, etc, for correct self-assessment of duty on imported or exported goods. The CBEC has assured that genuine importers/exporters will not be harassed/penalised for any errors/mistakes made in good faith. And, that only those making wrong self-assessment or wrong declarations repeatedly or with intent to evade duty are to be penalised.
CBEC deserves appreciation for coming out with the manual. Importers/exporters should familiarise themselves with the details of self-assessment and ensure compliance, to avoid unpleasant surprises at the time of on-site post-clearance audit.
email: tncr@sify.com