CBIC sets 2-year period for customs assessments

All provisional assessments under customs will have to be completed within two years as per guidelines notified by the Central Board of Indirect tax and Customs on Tuesday.

These rules specifying timelines and procedures for finalising provisional assessments under the Customs Act follow an announcement in the FY26 budget.

Experts say the step will be a gamechanger in giving certainty and clarity in customs administration, resulting in the release of blocked working capital, reduced compliance costs, and greater predictability in supply chains, which had been pain points for businesses.


The latest guidelines permit voluntary duty payments in the provisional assessment phase for any adjustments against the final duty. "This is a crucial move that is likely to deliver significant tax certainty and will be instrumental in unlocking capital currently tied up in additional duties, bank guarantees, and bonds," said Saurabh Agarwal, tax partner at EY.