Section 2 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.
Most customs disputes start with a word defined in section 2. This article covers the definitions on assessment and documents: what "assessment" means and its six heads, what a bill of entry, bill of export and shipping bill are, what "entry" means, how "value", "tariff value" and "market price" are tied to section 14, and a few terms used throughout the Act such as "common portal", "prescribed", "regulations" and "rules".
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 these definitions before acting.
Assessment means determining the dutiability of goods and the amount of duty, tax, cess or other sum payable, with reference to classification, value, exemption, quantity, origin and any other specific factor; it includes provisional assessment, self-assessment, re-assessment and an assessment where the duty assessed is nil. A bill of entry is the import document referred to in section 46; a shipping bill and a bill of export are the export documents referred to in section 50.
What "assessment" means
Clause (2) defines "assessment" as the determination of the dutiability of any goods and the amount of duty, tax, cess or any other sum so payable, if any, under this Act, under the Customs Tariff Act, 1975 (51 of 1975) or under any other law for the time being in force, with reference to six heads:
| Head | What the assessment looks at |
|---|---|
| (a) | The tariff classification of the goods, as determined under the Customs Tariff Act |
| (b) | The value of the goods, as determined under this Act and the Customs Tariff Act |
| (c) | Exemption or concession of duty, tax, cess or other sum, consequent upon a notification issued under this Act, the Customs Tariff Act or any other law |
| (d) | Quantity, weight, volume, measurement or other specifics, where the levy depends on them |
| (e) | The origin of the goods, determined under the Customs Tariff Act or the rules under it, if the amount is affected by origin |
| (f) | Any other specific factor which affects the duty, tax, cess or other sum payable |
After the six heads, the clause says that assessment also includes provisional assessment, self-assessment, re-assessment and any assessment in which the duty assessed is nil. The footnote in the copy shows this clause was substituted with effect from 29 March 2018 by section 58 of the Finance Act, 2018 (13 of 2018). The older, shorter wording is only history and is not the rule.
The point of the six heads is that "assessment" is wider than computing a rate times a value. A disagreement about classification, value, exemption, origin or quantity is all a disagreement about assessment. If you are setting up to file these documents electronically, our ICEGATE registration service takes care of portal access. For how assessment is carried out, see our articles on section 17 and section 18.
Bill of entry, bill of export, shipping bill and entry
Clause (4) says "bill of entry" means a bill of entry referred to in section 46. Clause (5) says "bill of export" means a bill of export referred to in section 50, and clause (37) says "shipping bill" means a shipping bill referred to in section 50. Clause (16) says "entry", in relation to goods, means an entry made in a bill of entry, shipping bill or bill of export, and includes the entry made under the regulations made under section 84. The copy shows some words in clause (16) as omitted, with a footnote that they referred to an entry for goods imported or to be exported by post.
So the definitions do not describe the contents of the documents; they point to sections 46 and 50. Our posts on the bill of entry and the shipping bill explain the working side. Clause (17) adds that "examination", in relation to any goods, includes measurement and weighment.
Value, tariff value and market price
Three clauses tie value to section 14:
- Clause (41): "value", in relation to any goods, means the value determined in accordance with the provisions of sub-section (1) or sub-section (2) of section 14.
- Clause (40): "tariff value" means the tariff value fixed in respect of the goods under sub-section (2) of section 14.
- Clause (30): "market price" means the wholesale price of the goods in the ordinary course of trade in India.
The first two do not give a method; they point to section 14, which our article on valuation under section 14 takes up. "Market price" is a separate idea that is used where the Act sets limits by reference to the price of goods. Do not confuse it with transaction value.
Terms that connect the Act to rules and notices
- Manifest or report: clause (24) says "arrival manifest or import manifest" or "import report" means the manifest or report required to be delivered under section 30.
- Common portal: clause (7B) says it means the Common Customs Electronic Portal referred to in section 154C. The copy consulted prints the section that sets up the portal under the number "154AC" later in the text, so the cross-reference and the printed number differ; our article on that section deals with the point. The copy also prints clause (7B) without its opening bracket.
- Notification: clause (30AA) says it means a notification published in the Official Gazette, and "notify" is construed accordingly. The copy prints the clause number with a stray space ("30A A").
- Passenger name record information: clause (30B) means the records prepared by an operator of any aircraft, vessel or vehicle, or his authorised agent, for each journey booked by or on behalf of any passenger.
- Prescribed, regulations, rules: clause (32) says "prescribed" means prescribed by regulations made under the Act; clause (35) says "regulations" means those made by the Board; clause (36) says "rules" means those made by the Central Government.
- Fund: clause (21A) means the Consumer Welfare Fund established under section 12C of the Central Excises and Salt Act, 1944 (1 of 1944). The footnote in the copy notes that the Act is now called the Central Excise Act.
Note the effect of clauses (32), (35) and (36): when the Act says "as may be prescribed", it means by regulations of the Board, whereas "rules" are made by the Central Government. Reading the right instrument for each section matters.
A worked example
Lakshmi Ceramics Pvt. Ltd. imports tiles and files a bill of entry. The officer queries the tariff heading under which the tiles were declared, the declared value, and a claim for a notified concession. Each of these is a head of "assessment" in clause (2): (a) classification, (b) value and (c) exemption or concession. If the shipment had been charged on the basis of weight, head (d) would also arise. A dispute on any one of them is a dispute on assessment, and the value part leads back to section 14, because clause (41) defines value by reference to it. For a fuller discussion of valuation practice, see our post on customs valuation and the transaction value rules.
Need help with filing on the customs portal?
Document filing and assessment run through the electronic portal, so access has to be in place before the first bill of entry or shipping bill. We can help you complete your ICEGATE registration and understand how it fits with your Import Export Code.
Key takeaways
- "Assessment" covers classification, value, exemption, quantity, origin and any other specific factor, and includes provisional assessment, self-assessment, re-assessment and nil-duty assessment.
- A bill of entry is referred to in section 46; a bill of export and a shipping bill are referred to in section 50.
- "Value" and "tariff value" take their meaning from section 14.
- "Prescribed" means prescribed by regulations; "rules" means rules made by the Central Government.
- The copy prints a few slips in these clauses (the clause (7B) bracket, "30A A", and the portal section number); read them as printed and check the official text.
Read next
- Section 17: self-assessment, verification and re-assessment of duty
- Section 14: valuation of goods and transaction value
- Bill of Entry: Types, Filing and Assessment
- ICEGATE: E-filing on the Customs Portal
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.