Ref. 100401 Dated 01.01.10.
Customs _Provisional Assessment_EDI_Design Flaw _Require enhancement_Reg.
01. A design flaw in EDI which needs enhancement is brought to notice with regard to the provisional assessment.
02. When a Bill is assessed provisionally, though the goods are cleared, still the bill is pending till it is assessed finalized. But the EDI archives the Bill even when the Bill is assessed provisionally just like a Bill which is finally assessed. Unless the importer approaches to get the finalization, chances are aplenty that provisional assessments with revenue implications are not finalized at all in respect of many occasional unorganized importers. Practically no effective monitoring is possible in such a situation. The AC or DC who is to finalize assessment at a later date does not have administrative rights to retrieve the data. Moreover, though manual finalization of provisional assessment is provided for in the EDI system of assessment, almost all the provisional assessments are done manually outside the system. As a result, the status of the Bill will remain as provisionally assessed and the classification/value cannot be used as precedence or recorded value.
03. There is another shortcoming also. In the event of provisional assessments are finalized in EDI system, the importer copy of the print out of the Bill contains the assessment details. But, the manual finalization of provisional assessment happens in the file without issuing any formal orders. Where there is differential duty to be demanded, a demand notice alone is issued. By the time the speaking order is issued, the demand is hit by time bar because the finalization date mentioned on the file. With regard to the situations of directing provisional assessment vide s.18 of the Customs Act, 1962, we would take it up with the CBEC separately.
04. Meanwhile, we request that enhancing the EDI system may please be considered to archive the finally assessed Bills alone leaving the provisionally assessed Bills in pending status. This will help effective monitoring; free access to the AC or DC for finalization and the details of the finalization of assessment will be available in the system data.