Section 17 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Under section 17 the importer or exporter assesses the duty on the goods himself. The proper officer may verify that assessment, call for documents, and re-assess if it is wrong. If the re-assessment goes against the importer's own assessment and he does not accept it in writing, the officer must pass a speaking order within fifteen days.
This article follows the text on the CBIC portal updated to 30 March 2022 (the Act as amended up to the Finance Act, 2022). Please check any later Finance Act changes to this section before acting.
An importer entering goods under section 46, or an exporter entering goods under section 50, must self-assess the duty, save as otherwise provided in section 85. The proper officer may verify the entries and the self-assessment, and re-assess if it is not done correctly. Where the re-assessment is contrary to the self-assessment and the importer or exporter does not confirm acceptance in writing, a speaking order must follow within fifteen days of the re-assessment.
Sub-section (1): self-assessment
An importer entering any imported goods under section 46, or an exporter entering any export goods under section 50, shall, save as otherwise provided in section 85, self-assess the duty, if any, leviable on such goods.
The duty to assess falls on the trader. The entry is the bill of entry for imports (section 46) or the shipping bill for exports (section 50). The words "save as otherwise provided in section 85" allow for the exception that section 85 makes. The footnote records that section 17 was substituted by Act 8 of 2011 (section 38) with effect from 8 April 2011; the text above is the substituted section.
The meaning of "assessment" is wider than computing duty; it covers classification, value, exemption, quantity, origin and any other specific factor, as our article on the definition of assessment in section 2 explains. Because the importer assesses, an error in classification or in claiming an exemption is the importer's to own.
If you are setting up to file entries yourself, our ICEGATE registration service can help with access to the customs portal.
Sub-section (2): verification
The proper officer may verify the entries made under section 46 or section 50 and the self-assessment of goods referred to in sub-section (1), and for this purpose, examine or test any imported goods or export goods or such part thereof as may be necessary.
The proviso says that the selection of cases for verification shall primarily be on the basis of risk evaluation through appropriate selection criteria. The footnotes show that the words about verifying the entries and the self-assessment, and the proviso on risk evaluation, were put in by section 60 of the Finance Act, 2018 (13 of 2018) with effect from 29 March 2018. So the text signals that verification is selective and based on risk, not a check of every entry.
Sub-section (3): documents and information
For the purposes of verification under sub-section (2), the proper officer may require the importer, exporter or any other person to produce any document or information whereby the duty leviable on the imported goods or export goods can be ascertained, and thereupon the importer, exporter or such other person shall produce such document or furnish such information.
Note three things. The power reaches the importer, the exporter or "any other person". The purpose is limited: documents or information by which the duty leviable can be ascertained. And the person asked "shall" produce or furnish. The footnote shows this sub-section was substituted with effect from 31 March 2017 by section 91 of the Finance Act, 2017 (7 of 2017), and the words "the purposes of verification" were put in by the Finance Act, 2018.
Sub-section (4): re-assessment
Where it is found on verification, examination or testing of the goods or otherwise that the self-assessment is not done correctly, the proper officer may, without prejudice to any other action which may be taken under the Act, re-assess the duty leviable on such goods.
"Or otherwise" means the finding need not come from a physical test. And "without prejudice to any other action" leaves other consequences open; this article does not describe them.
Sub-section (5): the speaking order
Where any re-assessment done under sub-section (4) is contrary to the self-assessment done by the importer or exporter, and in cases other than those where the importer or exporter confirms his acceptance of the 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.
A speaking order is a reasoned order. The duty to pass it arises only if the re-assessment is contrary to the self-assessment and the trader has not accepted it in writing. Fifteen days run from the date of re-assessment. The footnote shows that words about valuation, classification, exemption and concessions were omitted from this sub-section by the Finance Act, 2018, and that an old sub-section (6) on audit of assessment was omitted at the same time; sub-section (6) is therefore not part of the live text.
The Explanation
The Explanation declares, for the removal of doubts, that where an importer entered goods under section 46 or an exporter entered goods under section 50 before the date on which the Finance Bill, 2011 received the assent of the President, such goods continue to be governed by section 17 as it stood immediately before that date. This is a transitional rule for older entries.
The sequence at a glance
| Step | Sub-section | Who acts | What happens |
|---|---|---|---|
| 1 | (1) | Importer or exporter | Self-assesses duty on the entry |
| 2 | (2) | Proper officer | May verify entries and self-assessment; may examine or test goods; selection primarily on risk evaluation |
| 3 | (3) | Importer, exporter or any other person | Produces documents or information on request |
| 4 | (4) | Proper officer | May re-assess if self-assessment is not done correctly |
| 5 | (5) | Proper officer | Speaking order within fifteen days if re-assessment is contrary and not accepted in writing |
For how verification and re-assessment relate to the first and second check practices on the ground, see our post on first check and second check assessment.
A worked example with invented names
Orion Plastics Pvt. Ltd. self-assesses a bill of entry, claiming a particular classification. The proper officer selects the entry for verification and asks for the supplier's invoice and a technical document under sub-section (3). On examination, the officer decides that the classification is wrong and re-assesses the duty under sub-section (4). Orion does not accept this in writing. The officer must pass a speaking order within fifteen days from the date of re-assessment. Had Orion accepted the re-assessment in writing, that duty to pass a speaking order would not arise. For what can follow if Orion disagrees with the order, see our post on the customs appeal process. For a case where duty is assessed provisionally instead, see our article on section 18.
Need help with filing and assessment on the portal?
Self-assessment puts the responsibility on you. If you are setting up to file bills of entry or shipping bills, our ICEGATE registration team can help you get portal access in order before the first self-assessment.
Key takeaways
- The importer or exporter self-assesses duty on the entry made under section 46 or section 50, save as otherwise provided in section 85.
- The proper officer may verify, examine or test, selecting cases primarily on risk evaluation.
- Documents or information can be required from the importer, exporter or any other person.
- Incorrect self-assessment may be re-assessed.
- A speaking order must follow within fifteen days of re-assessment if the re-assessment is contrary to the self-assessment and not accepted in writing.
Read next
- Section 18: provisional assessment of duty
- Section 14: valuation of goods and transaction value
- Sections 15–16: relevant date for rate of duty and tariff valuation
- First Check vs Second Check Assessment: Customs
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.