In a relief to importers & exporters, CBIC notifies amended regulations for finalisation of provisional assessment

For businesses, the amendment means quicker release of blocked working capital, lower compliance costs, and greater predictability in supply chains
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Central Board of Indirect Taxes and Customs (CBIC) has notified changes in regulation for ‘Finalisation of Provisional Assessment.’ Experts said this will provide relief to importers and exporters.

According to the notification, while tax officials will ask the importers and exporters within 14 days of the assessment to submit documents, these can be submitted within 2 months. Time limit to conclude enquiry for the purpose of finalisation of assessment will be 14 months from from the date of provisional assessment. “The proper officer shall finalise the duty provisionally assessed, where it is possible to do so, within three months of receipt of documents or information from the importer or the exporter or on conclusion of enquiry,” the notification said.

Manoj Mishra, Partner at Grant Thornton Bharat LLP, said amended regulation mark a long-awaited move towards certainty and efficiency in customs administration. By introducing clear timelines, CBIC has addressed a pain point that has long burdened both traders and authorities. For businesses, this means quicker release of blocked working capital, lower compliance costs, and greater predictability in supply chains. The true test, however, will be in implementation—especially in matters tied to Special Valuation Branch proceedings, DRI investigations, or prolonged litigation.

“Timely finalisation, while safeguarding the assessee’s right to present submissions, will be critical. If executed in the intended spirit, these regulations can balance revenue protection with trade facilitation, bringing closure to long-pending cases and building greater trust between industry and administration,” he said.

Crucial move

According to Saurabh Agarwal, Tax Partner, EY India, 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. The resultant liquidity boost is a welcome relief for businesses in the current era of global tensions.

While the tax administration is now mandated to complete these assessments, the onus is also on the industry to act proactively. It is crucial for businesses to ensure their documentation is complete and be prepared to promptly respond to any queries. This forward-thinking approach is vital to prevent last-minute, rushed assessments and the risk of adverse outcomes, such as ex-parte orders.

“Ultimately, the success of these new rules will depend on a collaborative and efficient effort from both the tax administration and the industry,” said Agarwal.

Published on September 16, 2025