New Delhi, Sep 16 (NationPress) Recent updates to customs regulations concerning provisional assessments for imports and exports are set to enhance revenue protection, trade facilitation, and offer resolution to longstanding cases, as highlighted by industry analysts on Tuesday.

The Central Board of Indirect Taxes and Customs (CBIC) has introduced the Customs (Finalisation of Provisional Assessment) Regulations, 2025, designed to improve efficiency, certainty, and transparency in customs processes. These new rules establish clear timelines for the completion of provisional assessments.

Experts in the industry anticipate that this initiative will help alleviate ongoing challenges in trade and customs operations.

According to Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, "The Customs (Finalisation of Provisional Assessment) Regulations, 2025 represent a significant step towards enhancing certainty and efficiency in customs operations. By defining specific timelines, CBIC has tackled a long-standing issue that has affected both trade and regulatory bodies."

He noted that businesses will benefit from a quicker release of constrained working capital, reduced compliance expenses, and greater predictability in their supply chains.

However, Mishra cautioned that the real challenge lies in the execution of these regulations, particularly regarding Special Valuation Branch matters, DRI investigations, or extended legal disputes.

"Timely finalization while ensuring the right of the assessee to present their case is essential. If implemented as intended, these regulations could strike a balance between revenue protection and trade facilitation, providing closure to long-term issues and fostering greater trust between the industry and regulatory bodies," he added.

As per the new guidelines, importers and exporters are required to submit necessary documents within 15 days of a request, with a possible extension of up to two months. Customs officials must finalize inquiries within 14 months. The completion of provisional assessments is mandated within two years of the provisional assessment date, barring appeals, stay orders, or international information requests, as stated in the notification.

This new framework also allows for voluntary duty payments during the provisional assessment phase, which will be adjusted against the final duty assessed upon conclusion.

Failure to comply may result in interest obligations and penalties up to Rs 25,000. Moreover, detailed procedures for refunds, duty recovery, and bond cancellations have been established to streamline operations.