Section 18-A – A Step Moving Away From Customs’ Dependency

The introduction of Section 18-A and the accompanying Customs (Voluntary Revision of Entries Post Clearance) Regulations, 2025 mark a progressive stride towards modernising India’s Customs framework.

Introduction

Compliance-oriented importers routinely approach us to report instances where the foreign supplier or exporter has erroneously delivered a quantity in excess of the ordered amount, a discrepancy discerned only after customs clearance and arrival of the goods at the factory premises. They also raise concerns regarding clerical errors such as incorrect currency/quantity of measurement being captured in the bills of entry. These types of involuntary inaccuracies are varied and numerous. In response, we direct them to refer specifically to provisions contained in Sections 149 and 154 for getting the bills of entry amended.

However, these provisions possess certain limitations and are not universally applicable. Nevertheless, they provided some relief, albeit through a protracted and cumbersome process. The Union Budget of 2025 provided a glimmer of hope for these situations by introducing a new provision, Section 18-A, Customs Act, 1962. Section 18-A essentially provided a mechanism to suo motu revise/amend the bills of entry/shipping bills. The newly introduced Section 18-A was not put into effect immediately, thereby diminishing the initial optimism associated with its enactment.

Now, after a hiatus of 6 months, the Central Board of Indirect Taxes and Customs (CBIC) vide Notification No. 70/2025-Cust (NT) dated 30-10-2025 has introduced the Customs (Voluntary Revision of Entries Post Clearance) Regulations, 2025 (Regulations) to operationalise Section 18-A. The Regulations have come into effect from 1-11-2025.

Along with notifying the Regulations, the CBIC has also issued Notification No. 71/2025-Cust. (NT) dated 30-10-2025¹ specifying circumstances under which parties cannot make revisions under Section 18-A. Notification No. 68/2025-Cust. (NT) dated 30-10-2025² issued by CBIC appoints the Deputy/Assistant Commissioner of the Commissionerate concerned as proper officers for the purpose of the Regulations. Further, Notification No. 69/2025-Cust. (NT) dated 30-10-2025³ prescribes that every application must be accompanied by a fee of Rs 1000. Further, the Board has also issued Circular No. 26/2025-Cust. dated 31-10-2025⁴ providing the guidelines for giving effect to these notifications.

The overall objective of the scheme is to incentivise voluntary compliance, facilitate post-clearance revisions, and expedite refund processes, while incorporating protections against misuse in cases under active investigation or non-fulfilment of obligations. Through this article, we will analyse the broad contours of the scheme, in the light of these notifications.

Who can apply?

The Regulations enable voluntary revision of entries in a bill of entry, much after the “out of charge” is granted or to a shipping bill, much after “let export order” is granted. Thus, the present Regulations enable an importer or exporter or any other authorised person⁵ to apply for revision of bill of entry or shipping bill⁶ to correct self-assessments, pay any additional/differential duties with interest without penalty, or claim refunds of additional duties paid.

How to apply?

The application must be submitted electronically via the common portal to the officer at the port where the duty was paid.⁷ The application for revision of entries or an application for revision cum refund application (where any refund is claimed — consequent to refund), must be accompanied by supporting documents and a digital signature.⁸ The revisions must pertain to entries made under a single bill of entry, shipping bill, or export bill, upon payment of applicable fees.⁹ In other words, the Regulations prescribes a methodology of revision of the existing entries only.

A question may arise as to whether the revision of entries can be made with respect to bills of entry or shipping bills filed prior to 1-11-2025 or will be applicable only in respect of bills of entry or shipping bills filed post 1-11-2025. In the authors’ opinion, since there is no stipulation confining the applicability of such revisions exclusively to bills of entry or shipping bills filed on or after 1-11-2025 and in the absence of an explicit embargo to the contrary, it can be concluded that the Regulations extend to those bills of entry and shipping bills submitted prior to 1-11-2025 as well.

A revision is deemed complete when the Customs accepts the application, generates an acknowledgement receipt number (ARN), the duty and interest (if any) are paid, and a revised entry reference is issued.¹⁰

Time-limit within which application for revisions may be filed

The Regulations do not explicitly provide for any time-limit within which an application for revision may be made in circumstances giving rise to payment of duty. As far as application for revisions which give rise to a refund is concerned, the Regulations explicitly provide that the same would be subject to Section 27, Customs Act which was also amended¹¹ at the time of introduction of Section 18-A.

On a combined reading, it can be seen that in case of applications for revisions giving rise to a refund, the same must be filed within a period of one year from the date of payment of duty or interest of which refund is claimed.

Processing of refund claims arising from revision

The Regulations prescribe that application for revision would be automatically treated as valid claim for refund under Section 27, Customs Act and do not require a separate application.¹² The date of generation of ARN is treated as the date of claim for refund under Section 27, Customs Act.¹³ A claim for revision resulting in refund would mandatorily be subject to verification by the proper officer and subject to the satisfaction of conditions prescribed under Section 27, Customs Act.¹⁴

At this juncture, one must refer to the decision of the Supreme Court in ITC Ltd. v. CCE¹⁵ which required that an application for refund can only be maintained if the assessment is modified in a manner known to law. In the present case, once an application for revision is allowed, the assessment would be modified in a manner known to law, and hence, a refund arising from revision in terms of these Regulations satisfies the requirement laid down in ITC Ltd. The Department therefore, would be precluded from taking any contrary position.

Retention of documents post revision and penalty

The Regulations mandate an authorised person to retain all related documents for five years.¹⁶ The same is consistent with the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018¹⁷ as well as the Shipping Bill (Electronic Integrated Declaration and Paperless Processing) Regulations, 2019¹⁸ which also provide that the documents filed with the Customs may be retained or preserved for a period of 5 years as well as the provisions of Section 28, Customs Act, 1962 wherein the Customs Department is empowered to recover differential duty up to a period of 5 years.

Penalty

Any contravention of these Regulations may result in penalties under Section 158(2)(ii), Customs Act, without prejudice to other legal actions.¹⁹

Non-applicability of Regulations in certain circumstances

Notification No. 71/2025-Cust. (NT)²⁰ carves out an exception to cases where a person cannot avail the option of voluntary revision of entries in terms of the Regulations. The said notification provides that revisions of entries are not permitted in cases where benefits under instrument-based schemes or specific customs notifications have already been availed and require reversal, if a separate procedure for such reversal is already prescribed under those schemes, notifications, or Regulations.

Key benefits in the Regulations

The Regulations represent a beneficial advancement in the domain of Customs law, affording importers and exporters enhanced facilitation for effecting necessary amendments and modifications to bills of entry, shipping bills, or bills of export. For refunds, the Regulations provide that the proper officer will verify the claim of the applicant and request for documents, within 10 working days from the date of generation of revised entry reference.²¹ Therefore, the Regulations enable the importer or exporter to receive refunds expeditiously. The Regulations do not also restrict the number of revisions which can be claimed in respect of the same document.

What remains a mystery

As with the implementation of any new legislative scheme, these Regulations do not address every possible scenario that may occur. Several of these unresolved issues are outlined below for consideration.

Revision in revenue neutral circumstances

It is evident that the Regulations permit revision where there is any change resulting in an impact on duty. However, the Regulations are silent as to whether an application for revision can be made even in revenue neutral circumstances such as a change in classification or claim of an alternate exemption.

Retrospective claim for exemption benefit under Free Trade Agreement

Multiple Free Trade Agreements (FTAs) to which India is a party provide for issuance of certificate of origin (COO) retrospectively. Therefore, a question arises as to whether the Regulations would permit for revision of an entry to avail exemption benefit under a trade agreement which was not availed previously through retrospective COO.

Applicability of Regulations post closure of audit or investigation

Interestingly, while the Regulations bar revision in cases where an audit or investigation are initiated, it is silent on whether revision would be permissible, once the proceedings are closed by the audit or investigative agencies. Similarly, the Regulations are also silent on whether aspects which were not earlier considered by the agencies during the course of audit/investigation could be revised subsequently by an application under these Regulations.

Conversion of shipping bills

The Regulations are silent on the aspects relating to conversion of a free shipping bill to an export incentive shipping bill. As of now, the only mode of conversion has been by seeking for an amendment under Section 149, Customs Act, 1962. However, the same is subject to the conditions prescribed under Circular No. 36/2010-Cust. dated 23-9-2010.²²

Claim for export incentives

Exporters often had to engage in protracted litigations in securing export incentives such as drawback, Merchandise Exports from India Scheme (MEIS), Remission of Duties and Taxes on Exported Products (RoDTEP), etc. under the foreign trade policy due to clerical oversights in failing to opt for the appropriate benefit at the time of filing shipping bills. The Regulations are silent on whether a revision of this entry would be permissible which would enable the exporter to claim incentives post clearance of goods.

Resort to revision during pendency of re-assessment

In addition to the above, it is interesting to note that while the Regulations bar an application where re-assessment has been completed in cases of provisional assessment under Section 18 or post-issuance of a speaking order under Section 17, it is silent on whether a party can resort to revision of entries during the pendency of finalisation or pendency of issuance of a speaking order in cases where duties are paid under protest.

Conclusion

In conclusion, the introduction of Section 18-A and the accompanying Customs (Voluntary Revision of Entries Post Clearance) Regulations, 2025 mark a progressive stride towards modernising India’s Customs framework. By empowering importers and exporters with a structured, technology-driven mechanism to voluntarily revise post-clearance entries, the Regulations foster greater transparency, compliance, and operational ease. While the framework is a welcome relief for the trade seeking timely corrections and refunds, its silence on key aspects coupled with the absence of any modules or frequently asked questions (FAQs) regarding certain critical aspects highlighted above, leaves room for interpretational ambiguity and potential litigation.

Nonetheless, the Regulations reflect a forward-looking intent to harmonise trade facilitation with regulatory oversight. As jurisprudence and administrative practice evolve, these gaps may well be addressed, paving the way for a more robust and responsive Customs ecosystem. For now, the Regulations stand as a commendable foundation, one that promises efficiency, accountability, and a more seamless interface between trade and administration.