Section 18 of the Customs Act ,1962 deals with the provisions of Provisional assessment:

(i ) Circumstances in which Provisional assessment can be ordered are –

• Where the importer or exporter is unable to make self assessment u/s 17 (1 ) and makes a writing request to the proper officer for assessment ;or
• Where the proper officer deems it necessary to do any chemical or other test to the imported or exported goods;or
• Where the importer or exporter has produced all the necessary documents and furnished full information but the proper officer deems it necessary to make further enquiry; or Where necessary documents have not been produced or information has not been furnished and the proper officer deems it necessary to make further enquiry.

(ii) Bill of Entry to be filed for provisional assessment also.

(iii) Furnishing of security :The proper officer may direct provisional assessment if the importer or exporter as the case may be, furnishes such security as the proper officer deems fit for the payment of the deficiency, if any, between duties finally assessed or re-assessed and the duty provisionally assessed.

(iv ) Finalisation of Assessment :When the duty leviable on such goods is assessed finally or re-assessed by the proper officer in accordance with the provisions of this act , then –

• If the goods are cleared for home consumption or exportation , the amount paid shall be adjusted against the duty finally assessed or re-assessed. In case the amount so paid falls short or is in excess of duty finally assessed or re-assessed, the importer or the exporter of the goods shall pay the deficiency or is entitled to refund.

 

• If the goods are warehoused and duty finally assessed or re-assessed is in excess of the provisional duty ,the customs officer may require the importer to execute a bond binding himself in a sum equal to twice the amount of the excess duty.

(v ) Interest on demand : The importer or exporter is liable for interest @ 18 %   consequent to final assessment or re-assessment from the first day of the month in which the duty is provisionally assessed till the date of payment thereof of.

(v ) Interest on delayed refund  : If any amount refundable on final assessment or re-assessment is not refunded within 3 months   then , the importer or exporter is entitled to interest @ 6%  on un -refunded amount till the date of refund of such amount.