GOVERNMENT OF PAKISTAN

COLLECTORATE OF CUSTOMS (PREVENTIVE)

CUSTOM HOUSE, KARACHI.

NO.DCP/HQ/17/97.                                                                         Dated 06.03.1998

STANDING ORDER NO. 1/1998 (PREVENTIVE)

SUB:  PROVISIONAL ASSESSMENT IN TERMS OF SECTION 81 OF THE CUSTOMS ACTS, 1969.

It has been come to the notice of the Central Board of Revenue that the mandatory provisions of section 81 of the Customs Act, 1969, are not being fully observed and the provisional assessments are made by the Customs staff in a routine matter without examining the aspect whether the assessment of duties are made or not. The Board has, therefore, directed to strictly observe the provisions of section 81 of Act ibid.

2.         Attention of all concerned is accordingly drawn to the provisions of section 81 of the Customs Act, 1969, which are summarized as below:

i.              Provisional assessment may only be resorted to when it is not possible to immediately finalize assessment of duties & taxes payable on any imported goods entered for home consumption or for warehousing or for clearance from a warehouse for home-consumption (or any goods entered for exportation) for reasons that the goods require Chemical or other test; warrant a further valuation enquiry; require complete documents or when full information pertaining to those goods has not been initially furnished.

ii.               An officer not below the rank of any Assistant Collector can only allow provisional assessment.

iii.        Provisional assessment may be made provided the importer (except in the case of goods entered for warehousing) pays such additional amount, as deems sufficient by the appropriate officer to meet the excess amount of duties and taxes due at the stage of final assessment of duty.

iv.           The amount of duty actually payable on such goods shall be finally assessed within 180 days of the date of provisional assessment. This time period is extendable by the Collector for further 90 days only in exceptional circumstances.

v.        On completion of such assessment, the appropriate officer shall order that the amount already paid or guarantee furnished be adjusted against the amount payable on the basis of final assessment and the difference between the two amounts shall be paid forthwith to or by the importer, as the case may be.

vi.        If the final assessment is not competed within the specified period, mentioned at (iv) above, the provisional assessment shall become final. 

3.         Now, in view of the above, mandatory provisions read with the instructions of Board received vide letter C.No.2 (19) L&P/96 dated 12.2.1998, all concerned officials provisions in letter and spirit.

4.         The Principal Appraiser and the Assistant Collector/Deputy Collector concerned shall personally ensure that no deviation or violation takes place. They shall also maintain proper and separate records of all provisional assessments and shall review all such cases pending final assessment on weekly basis to ensure that these are not delayed unnecessarily.

5.         Often, the provisional assessment cases are referred to the Valuation Department for valuation advice etc. but these are not followed up properly and resultantly the cases are hit by the mandatory time limit. This is against public interest, henceforth, the concerned PA/Assistant Collector/DC shall personally ensure prompt follow up with the Valuation Department.

6.         At the end of each month, all the concerned ACs/DCs shall report the total number of cases which were provisionally assessed to duty during the month together with the different amount of duty involved secured through case deposits or bank guarantees.

7.         The Additional Collector incharge shall exercise require supervisory checks to ensure that the instruction in this standing order is properly followed.

Signed by

 (SHUJA SHAH)

COLLECTOR 

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