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Government of India
Ministry of Finance
Department of Revenue
(Central Board of Indirect Taxes and Customs)
Instruction No.
07/2018-Customs
Room 229A, North Block
New Delhi, dated the 5th April, 2018
To
All Principal Chief Commissioner/Chief Commissioner of Customs/Customs
(Preventive)
All Principal Commissioner/Commissioner of Customs/ Customs
(Preventive)
All Principal Chief Commissioner/Chief Commissioner of GST
All Principal Commissioner/Commissioner of Customs of GST
Madam/Sir,
Subject: Need to issue speaking order-regarding.
Section 17 (5) of the Customs Act provides that ‘where any re-assessment done
under subsection (4) is contrary to the self-assessment done by the importer or
exporter regarding valuation of goods, classification, exemption or concessions
of duty availed consequent to any notification issued therefor under this Act
and in cases other than those where the importer or exporter, as the case may
be, confirms his acceptance of the said re- assessment in writing, the proper
officer shall pass a speaking order on the re-assessment, within fifteen days
from the date of re-assessment of the bill of entry or the shipping bill, as the
case may be.’
2. It has been observed that officers exercising the powers
under the above mentioned subsection are not issuing a speaking order in each
and every case particularly where the importer or exporter, as the case may be,
does not confirm his acceptance of the re- assessment. It may be appreciated
that an importer or an exporter has an inalienable right to know the reasons for
loading of value, change of classification, any decision regarding entitlement
to an exemption notification etc. Omission to issue speaking orders in matters
of re-assessment, may not prejudicially affect the right of the importer or
exporter to appeal as such, but nevertheless deprives him of knowing the grounds
of such re-assessment. At the same time, any such re-assessment without the
support of a speaking order could be perceived as legally questionable. Time and
again, courts have frowned upon the instances of non-issuance of speaking orders
under the said sub-section.
3. In view of the above, all Chief
Commissioners are requested to take stock of the prevailing practice in their
zones so as to ensure compliance with the provisions of the Act.
F. No. 450/24/2018-Cus.IV
Yours faithfully
(Maninder Kumar)
OSD (Cus. -IV)
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