The Central Board of Indirect Taxes and Customs on 12th September, 2025 has notified the Customs (Finalisation of Provisional Assessment) Regulations, 2025, replacing the 2018 framework. These new regulations mark a significant reform in the way provisional assessments are managed, introducing greater clarity, stricter timelines, and accountability for both businesses and customs authorities. At the core of these regulations lies the effort to provide operational certainty to importers and exporters. By laying down explicit time limits, clearer procedures, and defined responsibilities, the regulations seek to eliminate prolonged uncertainty that often plagued provisional assessments under the earlier regime.
Timelines under the 2025 Regulations
| Stage | Timeline | Remarks |
|---|---|---|
| Intimation by Proper Officer | Within 15 days of provisional assessment | Importer/exporter informed in writing about missing documents or information |
| Submission of documents/information by importer/exporter | Within 2 months of requisition | Can be extended by proper officer up to further 2 months, and by supervisory officer further, but not beyond 14 months from provisional assessment |
| Completion of enquiry (if required) | Within 14 months of provisional assessment | Enquiry must be concluded and report submitted for finalisation |
| Finalisation by proper officer | Within 3 months of receiving documents/information or conclusion of enquiry | Supervisory officer may allow further extensions of 2 months at a time |
| Overall cap for finalisation | 2 years from date of provisional assessment | Commissioner may extend by 1 additional year with reasons recorded |
| Special rule for cases pending as on 29 March 2025 | All timelines recalculated from 29 March 2025 | Ensures legacy cases are also resolved under new discipline |
| Payment during pendency | Allowed anytime by importer/exporter on self-ascertainment | Adjusted against final duty; interest liability applies |
| Non-finalisation reasons (exceptions) | Timelines pause if information sought from foreign authorities, or if litigation/appeals/Board directions/settlement proceedings are pending | Clock restarts once the reason ceases to exist |
Manner of finalisation
- Where the final assessment is contrary to the provisional assessment, the proper officer shall pass a speaking order following principles of natural justice.
- Where the final assessment confirms the provisional assessment, the proper officer shall finalise the same after ascertaining the acceptance of such finalisation from the importer or the exporter on record and inform the importer or exporter in writing of the date of such finalisation.
The structured timelines bring predictability to the system. Businesses no longer face indefinite uncertainty over duty liabilities or refunds, allowing better planning of cash flows and working capital. Customs officers are held accountable for timely closure, with very limited scope for extensions. By forcing both sides into a disciplined timeframe, the regulations strengthen compliance, reduce disputes, and align India’s trade facilitation practices with global norms.
