Section 99A 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.
Section 99A lets the proper officer audit the assessment of imported or export goods, or audit a person, either in the officer's own office or at the premises of the person audited. Its Explanation defines "auditee" widely, so it reaches importers, exporters, approved custodians, warehouse licensees and others connected with clearing, carrying, stocking or trading in goods. This article explains the section as printed in the text on the CBIC portal updated to 30 March 2022.
The proper officer may carry out the audit of assessment of imported goods or export goods, or of an auditee, either in his office or at the auditee's premises, in such manner as may be prescribed. An auditee is a person subject to an audit under the section and includes an importer, exporter, custodian approved under section 45, licensee of a warehouse and any other person concerned directly or indirectly in clearing, forwarding, stocking, carrying, selling or purchasing imported goods, export goods or dutiable goods.
The text consulted is the CBIC copy last updated on 30 March 2022 (the Act as amended up to the Finance Act, 2022). Later Finance Acts may have changed this section, so check it before acting.
Where section 99A sits
Section 99A is the only section of Chapter XIIA, headed "Audit". The footnote says the Chapter was inserted by section 90 of the Finance Act, 2018 (13 of 2018) with effect from 29.03.2018. It follows the chapter on coastal goods, which ends with section 99, and comes before the chapter on verification of identity, explained in Section 99B.
If you are facing a customs audit or have received an audit communication, our legal consultation page explains how we can help.
What the section says
The text of section 99A is one sentence and an Explanation. Taking the sentence in parts:
| Part | Meaning |
|---|---|
| "The proper officer may carry out the audit" | The power belongs to the proper officer; the word is "may" |
| "of assessment of imported goods or export goods or of an auditee" | Two objects: the assessment of goods, and the auditee as a person |
| "under this Act" | The audit is of matters under this Act |
| "either in his office or in the premises of the auditee" | Two venues: the officer's own office, or the auditee's premises |
| "in such manner as may be prescribed" | The manner is left to rules or regulations |
Three features stand out.
The audit has two objects. The first is the assessment of imported goods or export goods, which refers to how duty was assessed on the goods. The second is the auditee, which allows the audit to look at the person's own records and dealings.
The venue is the officer's choice. The officer may do an audit in his own office, working from documents, or at the premises of the auditee. The text does not say that the auditee must be given a choice, or that notice must be given; those matters would be in the prescribed manner.
The manner is prescribed. The section itself gives no steps, no period and no list of documents.
The Explanation: who is an "auditee"
For the purposes of the section, "auditee" means a person who is subject to an audit under the section and includes:
- an importer or exporter;
- a custodian approved under section 45;
- a licensee of a warehouse; and
- any other person concerned directly or indirectly in clearing, forwarding, stocking, carrying, selling or purchasing of imported goods, export goods or dutiable goods.
The word "includes" makes the list illustrative, not closed. The last item is broad: a person who is only "indirectly" concerned with, for example, carrying or selling dutiable goods can fall within it. The section does not say how an audit reaches a person in that last class, and the text is silent on whether prior notice is needed.
| Person | Included by the Explanation? | Basis in the text |
|---|---|---|
| Importer | Yes | Named |
| Exporter | Yes | Named |
| Custodian approved under section 45 | Yes | Named |
| Licensee of a warehouse | Yes | Named |
| Clearing agent, carrier, stockist, trader in dutiable goods | Yes, if concerned directly or indirectly | The residual words |
Example. Westwind Traders Pvt Ltd imports machine parts and sells part of the stock locally. The proper officer decides to audit the assessment of its imports and also the company as an auditee. The officer may do so in his office or at Westwind's premises, in the prescribed manner. If Westwind also stores goods under a warehouse licence, it falls within the Explanation in that capacity too.
The regulations that implement section 99A
The Customs Audit Regulations, 2018 are made under clause (k) of section 157 read with section 99A, as their own opening lines say. The copy consulted for this series is dated 24 May 2018 (that is the date of that file, not of the Act text). Its contents list covers the auditee's duty to preserve and make available relevant documents, selection for audit, the manner of conducting audit, the assistance of professionals, and penalty. This article does not set out any regulation-wise detail; the regulations are for a separate series.
Practical steps for businesses
- Know your status. An importer, exporter, approved custodian or warehouse licensee falls within the Explanation by name. Others may fall within the residual words.
- Keep records ready. The audit may be in the officer's office or at your premises, so documents should be easy to produce in either place.
- Read the communication carefully. Whether the audit is of assessment, of you as an auditee, or both, should be clear from what you receive.
- Follow the prescribed manner. The section leaves the manner to the regulations; read them for the steps.
- Consider professional help. Regulations in the contents list refer to assistance of professionals; a chartered accountant or lawyer can help prepare.
For records of imports and exports, our checklists for importers and exporters help organise the records an auditor may ask for.
What the section does not say
- It does not set a period within which an audit must end.
- It does not say that notice must be given or how long it must be.
- It does not list documents.
- It does not say what follows from an audit finding; consequences depend on other provisions of the Act.
Where the text is silent, the regulations and other provisions apply, and the current versions should be checked.
Need help with a customs audit?
If you have been selected for audit, or want to prepare before one, our team can read the section and the regulations with you and help organise your records. See our legal consultation page.
Key takeaways
- Section 99A lets the proper officer audit the assessment of imported or export goods, or an auditee, in his office or at the auditee's premises.
- The manner of audit is as prescribed.
- "Auditee" includes importers, exporters, custodians approved under section 45, warehouse licensees and others concerned directly or indirectly in clearing, forwarding, stocking, carrying, selling or purchasing relevant goods.
- Chapter XIIA was inserted with effect from 29.03.2018 by the Finance Act, 2018.
- Later Finance Acts may have changed this section; check before acting.
Read next
- Sections 96 to 99: coasting vessels, written order, relaxation and rules
- Section 99B: verification of identity and Aadhaar authentication
- Customs compliance checklist for importers
- Customs compliance checklist for exporters
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.