Government Proposes Major Reforms In Customs Process 2-Year Limit For Provisional Assessments: Budget 2025
(MENAFN- KNN India)
New Delhi, Feb 1 (KNN) In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced several measures aimed at simplifying the customs process and promoting ease of doing business.
Currently, the Customs Act of 1962 does not specify a time limit for finalizing provisional assessments, which has led to uncertainty and increased costs for trade.
To address this, the Finance Minister proposed the introduction of a time limit of two years for finalizing provisional assessments, with the option of extending it by one additional year.
Additionally, the Finance Minister proposed a new provision to incentivize voluntary compliance among importers and exporters.
Under this provision, once goods are cleared, businesses will be allowed to voluntarily declare material facts and pay the applicable duties along with interest, but without facing penalties.
However, this option will not be available in cases where the department has already initiated audit or investigation proceedings.
To further support industries in better planning their imports, the Finance Minister proposed an extension of the time limit for the end-use of imported inputs.
The time limit will be increased from six months to one year under the relevant rules. This change aims to provide greater operational flexibility in light of rising costs and supply uncertainties.
Additionally, importers will now be required to file quarterly statements instead of the previous monthly filings, reducing administrative burdens.
(KNN Bureau)
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