Why is this in news?
Insertion of new section 18A in Customs Act, as introduced by the Finance Act, 2025 in Budget 2025
What is this provision about?
The importer or exporter of the goods may voluntarily revise the entries related to cleared goods in such form, time and conditions as prescribed, the details of which are yet to be issued by CBIC.
To voluntarily revise the entries means to voluntarily correct or update the details submitted in documents like the Bill of Entry, Shipping Bill, or Bill of Export, after the goods have already been cleared by customs.
What warranted introduction of this section?
Previously, there is no option for direct revision. Even Revision of customs documents post clearance required filing appeals under Section 128 (for rectification of orders) or amendments under Section 149.
Section 128 : Appeal route: opted for when the importer/exporter disagreed with an assessment or decision. the aggrieved party is required to file formal appeal within 60 days of receipt of communication of customs officer’s decision. time limit condonable by max of 30 days. But most cases, appeal missed due to procedural complexity. Was not ideal for minor corrections—even small errors meant legal proceedings.
Section 149 : Amendment route Option to revise entries post clearance was available under Section 149 of the Customs Act, 1962. but, it allowed such revisions ONLY if the importer/exporter could provide documentary evidence that existed at the time of clearance/export. Could be used for clerical or factual corrections, especially if the error was evident and the supporting documents were available at the time of clearance. Even then it was subjected to discretion of customs officer and often involved delays or rejections due to procedural constraints.
Also, with regard to Refunds, Supreme Court rulings in cases like Priya blue Industries and ITC Ltd. (2019) ruled that any refund claims could not be entertained unless the original assessment is challenged and was modified through appeal.
This exposed the limitations of Sections 128 and 149, especially when procedural lapses or minor errors occurred. Businesses faced considerable difficulties in recovering excess duty paid because of these stringent regulations and procedural hurdles, making even minor revisions a legal ordeal.
The rigidity led to representations cand call for reform from various industry bodies which—ultimately paving the way for Section 18A, which now allows voluntary corrections without litigation
Highlights of this provision-Sec 18A:
- Voluntarily revise entry related to cleared goods.
- Upon revision, the importer/exporter must reassess the applicable duty themselves.
- If the revised entry reveals short-paid or unpaid duty, the importer/exporter must pay it voluntarily with interest under Section 28AA.
- If it reveals excess duty paid, the revised entry itself shall be deemed to be refund claim under Section 27.
- customs authorities may selectively verify cases of revised entry and self-assessment, selection of which are based on risk evaluation criteria, instead of blanket scrutiny.
- If the self-assessment is found incorrect, authorities may reassess the duty.
- Where Audit/search/seizure/summons is already initiated and intimated to the concerned Importer/exporter.
- In cases requiring refund, the importer/exporter cannot revise the entry under Section 18A to claim a refund, where officer has already reassessed or assessed duty (under Sections 17, 18, or 84), Instead, they must pursue refund through Section 27.
Exceptions — No Revision Allowed If:
What type of corrections are allowed under 18A
The bare text of Section 18A in the Customs Act does not provide/ define an exhaustive list of permissible revisions that are allowed under the section. But it specifically provides that revisions are barred in cases involving audits, investigations, or reassessments already initiated.
Corrections to customs entries like Bills of Entry or Shipping Bills can include:
- Clerical mistakes (e.g. typo mistakes, wrong codes).
- Misclassification of goods
- Incorrect valuation or duty computation
- Omissions in declarations
Consequent amendments to other sections:
Explanation inserted to S.27 (1): period of limitation of claim of refund consequent to revised entry (either under S.18A or S.149) shall be 1 year from the date of payment of duty/interest.
Explanation inserted to S.28 (1): for the purpose of the computation of time limits for issuing demand notices, where duty Is paid under 18A, the relevant date is the date of payment of duty or interest.