CBIC Notifies New Customs (Finalisation of Provisional Assessment) Regulations, 2025

The Central Board of Indirect Taxes and Customs (CBIC) has notified the Customs (Finalisation of Provisional Assessment) Regulations, 2025, superseding the earlier 2018 rules with significant procedural updates effective September 12, 2025. The regulations enforce a strict statutory timeline mandating that provisional assessments under Section 18 of the Customs Act, 1962, must be finalized within two years of the provisional assessment date, extendable by one year subject to sufficient cause. A fourteen-month timeline from the provisional assessment date is prescribed for importers or exporters to submit necessary documents or test reports and for customs officers to complete enquiries and transfer records for finalization. These provisions also apply to pending cases as of March 29, 2025, requiring finalization by May 29, 2026, ensuring resolution of longstanding uncertain assessments. The regulations uphold principles of natural justice by requiring issuance of speaking orders and hearing opportunities to stakeholders before finalization. Provisional bonds and securities furnished during provisional assessment are subject to cancellation or adjustment upon finalization, streamlining compliance. Exceptions to the timeline include cases awaiting information from foreign authorities or pending legal proceedings. Notably, the regulations allow for submission of a single unified electronic bond covering all provisional assessments, enhancing operational ease. While designed to improve transparency, efficiency, and certainty for importers/exporters, the absence of explicit penalties for delayed finalization may create enforcement ambiguities. These regulations mark a pivotal advance in modernizing India’s customs administration by addressing chronic delays and fostering trade facilitation balanced with customs control.