Aayaat Enterprises imported goods vide a bill of entry presented before the proper officer on 15th April. The proper officer decided that the goods…

(a) As per section 18 of the Customs Act, 1962 read alongwith Circular No. 38/2016 Cus. dated 22.08.2016, wherever, duty is to be assessed provisionally, the importer shall: (a) execute a bond in the prescribed form, for the purposes of undertaking to pay on demand the deficiency, if any, between the duty as may be finally assessed and the duty provisionally assessed; and (b) furnish prescribed amount of security for the payment of the duty deficiency. The security to be obtained shall be in the form of a bank guarantee or a cash deposit, as convenient to the importer. As per the Customs (Finalisation of Provisional Assessment) Regulations, 2018, the proper officer has to finalise the provisional assessment within 2 months of receipt of a chemical or other test report, where the provisional assessment was ordered for that reason. The proper officer can finalize the provisional assessment within 2 months of receipt of a chemical or other test report, where the provisional assessment is ordered for that reason. The Commissioner of Customs may allow a further time period of 3 months in case the proper officer is not able to finalize the provisional assessment within the period of 2 months. Thus, in the given case, provisional assessment will be finalized by 5th July [within 2 months of receipt of test report (5th May)]. However, if the proper officer is not able to finalize the provisional assessment by 5th July, the Commissioner may allow a further period of 3 months, i.e., till 5th October to the proper officer to finalize the provisional assessment. Had provisional assessment been finalized on 30th June and differential duty been paid on same day, as per section 18 (3) of the Customs Act, 1962, the importer would have been liable to pay interest, on any amount payable consequent to the final assessment order @ 15% p.a. from the first day of the month in which the duty is provisionally assessed till the date of payment thereof. Accordingly, amount of interest payable will be: = 40,000 x 15% x 91/365 = 1,496 (rounded off)