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Circular No. 42/2020 - Customs

F.No 465 / 01 /2016 — Cus V
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs

North Block, New Delhi
Dated 29
th
September, 2020
To,

All Chief Commissioners of Customs/Customs (Prev.)
All Chief Commissioners of GST and Customs
All Director Generals under CBIC

Sir/Madam,

Subject: Amending Circular 38/2016-Cus on Guidelines for Provisional Assessment
under Section 18 of the Customs Act 1962- reg.

Reference is drawn to Board’s Circular no. 38/2016-Customs, dated 22.08.2016
which provides guidelines regarding provisional assessment under section 18 of the
Customs Act 1962 and Customs (Administration of Rules of Origin under Trade
Agreements) Rules, 2020 (hereafter referred to as the CAROTAR, 2020) issued vide
Notification No. 81/2020-Customs (N.T.) dated 21
st
August, 2020.

2. In order to align the Circular no. 38/2016-Customs dated 22.08.2016 with
CAROTAR, 2020, the entries at Sl No. 1, 2, 5(a) and 5(c) of Table at paragraph 3 of the
said Circular are substituted with the entries as below-

1 Imports by Authorised
Economic Operators (AEO
– T3)
0 %

(including cases at Sl. No. 4
to 6b, except 5(a) and 5(c)).


In terms of Circular
no.33/2016-Customs dated
22
nd
July 2016, as amended.
2 Imports by
Authorised Economic
Operators (AEO – T1 and
AEO – T2)

(a) 0% (in terms of SI.
No. 5 (b), 6(a) and 6(b)
(2)

(b) 50% (for AEO-T1) or
25% (for AEO-T2) of the
In terms of Circular
no.33/2016-Customs dated
22
nd
July 2016, as
amended.

(excluding importers
mentioned at Sl. No. 3)
applicable bank
guarantee or cash
deposit specified at SI.
No. 4, 6(b)(1).


5 (a) Cases related to
determination of origin
under FTAs based on the
reasonable belief that the
matter involves mis-
declaration of origin.
100% In terms of Rule 5 or
Rule 6(1)(b) of
CAROTAR, 2020
(notification no. 81/2020
- Customs (N.T.) dated
21.08.2020)
5 (c) Cases related to verification
of signatures and seals
under FTAs

100% In terms of Rule 6(1)(a)
of CAROTAR, 2020
(notification no. 81/2020
- Customs (N.T.) dated
21.08.2020)

3. With the above amendments, all class of importers, including Authorised
Economic Operators (AEO) are required to furnish 100% of differential duty as a security
if provisional assessment is requested by the importer when inquiry is initiated in terms
of rule 5 or when verification is initiated in terms of rule 6(1)(a) or 6(1)(b) of CAROTAR,
2020.

4. It is requested that the officers under your charge be directed to follow revised
guidelines vide amended Circular 38/2016-Customs dated 22.08.2016 while
implementing CAROTAR, 2020.
5. Hindi version follows.
Yours faithfully


(Abhishek Kumar Sharma)
Senior Technical Officer
circulars no 42 2020 | iKargos