Release of goods on provisional assessment: Importers no more at liberty to escape liability of duty

LAHORE: Importers are no more at liberty to escape the liability of proceedings for recovery of duty, taxes or charge after release of goods on provisional assessment, said sources from the Customs department.

Earlier, it was understood in general that once the provisional assessment attains finality the proceedings for recovery of duty, taxes or charge after release of goods are barred and cannot be resorted to the purposes of recovery of the escaped duty and taxes.

They said the provisions of the Act of 1969 empower an officer of Customs to provisionally determine the liability where it is not possible for the latter during the checking of the goods declaration to satisfy himself/herself as to the correctness of the assessment of goods made by the importer for reasons that the goods require chemical or other test or a further inquiry.

The differential amount is secured by security furnished by the importer of the goods. If the final determination is not made within the time specified then the provisional assessment becomes final. The finality is relatable to the assessment and does not affect or bar the subsequent proceedings in connection with recovery of duty, taxes or charge not levied or short levied.

Sources said the appellate forums were not correctly appreciating the scheme of the Customs Act of 1969 and a distinction between an assessment and the offence as well as the mechanism described for the recovery of duties and taxes. They have been reading in the fiscal statute something not intended nor provided by the legislature, adding that it is a settled principle of a fiscal statute that tax and equity are strangers.

According to the sources, the finality of assessment under the relevant provisions of the law makes the provisional assessment final and not the declaration made by the importer as per the requirements of the law. Any such assessment made under the prescribed provisions of the law does not bar subsequent proceedings in connection with the offence of hiding duty in the form of goods declaration, they added.

Copyright Business Recorder, 2023