Section 17 deals with assessment of duty :

(a ) Self Assessment by Importer or Exporter :

(i) An importer entering any imported goods u/s 46 ( i.e. bill of entry is presented by him for clearance of goods ).

(ii) An exporter entering any export goods u/s 50 (i.e. Shipping bill or Bill of export is presented for clearance of export goods ) shall self- assess the duty ,if any ,leviable on such goods .However ,stores can be warehoused without assessment as provided in section 85.

(b ) Verification and Examination/Testing of goods by proper officer: The proper officer may verify the self-assessment of such goods and for this purpose, examine or test any imported goods or export goods or such part thereof as may be necessary.

(c) Calling for information/ documents for verification : For verification of self assessment 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.

(d) Re-assessment of duty in case of incorrect self assessment: Where it is found on verification, examination or testing of goods or otherwise that the self-assessment is not done correctly, the proper officer may, re-assess the duty leviable on such goods. However, such reassessment shall be without prejudice to any other action which may be taken under this Act.

(e) Reassessment contrary to self-assessment- Proper officer to pass speaking order within 15 days
: Where any re-assessment done 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 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 reassessment. Such speaking order is passed within 15 days from the date of re-assessment of the bill of entry or the shipping bill, as the case may be.

 

(f) Audit by proper officer at his office or premises of importer or exporter: 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 p[prescribed.

For carrying out such audit, On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011 have been framed. According to the said regulations, the proper officer is required to give not less than 15 days advance notice to the importer or exporter to conduct audit.