CBIC Clarification on Custom Faceless Assessment

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CBIC Clarification on Custom Faceless Assessment

The Central Board of Indirect Taxes and Customs (CBIC) issued the Clarification on Custom Faceless Assessment vide a notification dated 17.12.2020. To enhance the efficiency of the process involved in Custom Faceless Assessment, this new guideline is issued on the assessment of liquid bulk cargo, procedure for reassessment, enhancement of monetary limit for assessment etc. The present article briefs the CBIC clarification on Custom Faceless Assessment.

Synopsis of CBIC clarification on Custom Faceless Assessment

To enhance the efficiency of the process involved in Faceless Assessment, CBIC said that certain key areas, which require immediate attention, have been identified and the instructions/ guidelines are being issued:

  • With regards to Re-assessment, during verification of the assessment, additional details or necessary clarifications will be sought from the importer/Customs Broker through the query module of the Indian Customs EDI System(ICES),
  • CBIC has advised the importers/Customs Brokers to give the complete description of the imported goods while filing the Bill of Entry, in the first instance.
  • The CBIC has decided that w.e.f. January 15, 2021, supporting documents shall be mandatorily required to be uploaded in e-Sanchit by the importers/Customs Brokers
  • The CBIC also announced the enhancement in the monetary limit of assessment of Bills of Entry by the Appraising Officers.
  • With regards to the assessments of Liquid Bulk Cargo, Board has observed that suitable templates in the form of Public Notices, issued by major Custom Houses are available in the public domain, to serve a ready reckoned and guidance tool for the Assessing Officers, for assessment of liquid bulk cargo

Procedure for Reassessment

With this notification, CBIC clearly mentioned that the reassessment must be carried out following the provisions of Sub Sections (4) and (5) of Section 17 of Customs Act, 1962. The procedure to be adopted for carrying out re-assessment is as follows:

  • During verification of the assessment, additional details or necessary clarifications will be sought from the importer/Customs Broker through the query module of Indian Customs EDI System(ICES), if the self-assessment is not done correctly or in the need of additional details to complete the verification
  • While raising the query, all the aspects of additional details required for finalization should be covered and clearly worded. Also, as far as possible, multiple queries need to be avoided and all the information may be solicited in one-go and not in a piece-meal manner.
  • Based on the reply to the query, the Faceless Assessment Group may either accept the self-assessment or proceed to re-assess the Bill of Entry.
  • While re-assessing the Bill of Entry, it must be ensured that the importer is allowed to justify the self-assessment either in writing or in person through Video Conferencing.
  • Where the assessing officer re-assesses the Bill of Entry and where the importer does not accept the change in assessment in writing, through the query module in ICES, the proper officer shall mandatorily issue a speaking order without delay and following Section 17 (5) of Customs Act, 1962.

Clarification on Bill of Entry format – Complete description of imported goods

Importers/Customs Brokers are advised to furnish the complete description of the imported goods while filing the Bill of Entry, in the first instance. The importers/Customs Brokers need to provide the following details in the electronic Bill of Entry format:

Generic Description: The goods description in a generic text relevant to the text provided in the duty exemption notification that is claimed/Anti-Dumping (ADD)/IGST levy

Specific Description: The specific description specific of the product as given in the invoice to be provided

Model and Brand Name: Model details and Brand Name need to be provided and if the imported goods are unbranded; the text “UNBRANDED” may be used

Supplier and Manufacturer Details: If the duty applicability is based on manufacturers such as Anti-Dumping Duty (ADD), Safeguard Duty (SD) etc, the details of the manufacturer need to be provided.

Item Qualifiers: If the imported items are having specific distinguishing characteristics or have industry-specific names (e.g. scientific names, IUPAC names etc.), such details to be provided

Previous Bills of Entry: The Bill(s) of Entry details of previous import may be mentioned, if available.

Essential Documents for Assessment

Importers or Customs Brokers are advised to upload all the required supporting documents to justify the claim of a duty exemption notification or fulfilment of a CCR requirement etc. along with the Bills of Entry. CBIC has announced that these supporting documents will be mandatorily required to be uploaded in e-Sanchit by the importers/Customs Brokers. Kindly find the attachment to know more about the illustrative list of the required documents along with their document code is as follows:

Circular-No-55-2020-5-13

Enhancement of the monetary limit of assessment of Bills of Entry

CBIC also informed that to enhance the monetary limit of assessment of Bills of Entry by Appraising Officers,  All Bills of Entry with an assessable value of up to Rupees 5 lakh will be accordingly finally assessed only by the Appraising Officers, with effect from 21.12.2020.

The re-assessments of Bills of Entry will continue to be done with the approval of the Assistant/Deputy Commissioner, as is the present practice. To assess the impact of this change, the Board has also decided that 10% of the Bills of Entry that are now entrusted to the Appraising Officers would be subjected to transactional PCA

Assessments in respect of Liquid Bulk Cargo

The CBIC has also received representations in respect of delays in the assessment of liquid bulk cargo. Concerning the import of `liquid bulk cargo`, it is stated that the assessments are to be carried out on a provisional basis. This is primarily on account of the ascertainment of an actual imported quantity which is done subsequently. Also, at times, there may be a doubt concerning the composition, product specification etc. Both these aspects do not warrant a First Check system of assessment. The respective Co-Convenors of the NACs assessing such consignments are advised to ensure that all such consignments are subjected to the Second Check system of assessment, with duty being assessed on a provisional basis.

Please click on the official link to know more about the CBIC clarification on Custom Faceless Assessment

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