The statutory provisions relating to advance rulings in matters relating to Customs are contained in Chapter V-B of the Customs Act, 1962 . The said chapter V-B was substantially amended vide Finance Act, 2018.
The Finance Act, 2018, inter alia, inserted a new section 28EA relating to ‘Customs Authority for Advance Rulings’, which empowers the Central Board of Indirect Taxes and Customs (CBIC) to appoint officers of the rank of Principal Commissioner of Customs or Commissioner of Customs as Customs Authority for Advance Rulings by way of notification.
The amended section 28M provided that the Customs Authority for Advance Rulings shall follow such procedure as may be prescribed. Pursuant thereto, CBIC has notified Customs Authority for Advance Rulings Regulations, 2021 vide Notification No. 01/2021-Customs (N.T.) dated 04.01.2021. This notification has superseded the earlier Authority for Advance Rulings (Customs, Central Excise and Service Tax) Procedure Regulations, 2005, which has laid down provisions regarding the jurisdiction, application form and procedure, in relation to Customs Advance Rulings under the Act.
In exercise of the aforesaid powers, CBIC vide notification No.102/2020 – Customs (N.T.) dated 23.10.2020 has notified two posts of Principal Commissioner/Commissioner (Customs Authority for Advance Rulings) at New Delhi and Mumbai. Pursuant thereto, CBIC vide Office Order No. 152/2020 dated 22.12.2020 has appointed following officers as Customs Authority for Advance Rulings:
(i) Shri Manas Ranjan Mohanty - Customs Authority for Advance Rulings, Mumbai
(ii) Shri Vijay Singh Chauhan- Customs Authority for Advance Rulings, New Delhi
CBIC vide Office Order No. 01/2020 (Legal) dated 09.02.2020, as amended vide Office Order No. 03/2021 (Legal) dated 12.04.2021 has notified the contact details of the two authorities in terms of regulation 6(3) of the Customs Authority for Advance Rulings Regulations, 2021. The details are as below:
Customs Authority for Advance Rulings,
Mumbai New Custom House, Ballard Estate, Mumbai-400001.
CBIC vide Office Order No. 02/2020 (Legal) dated 09.02.2020 has notified the details of secretaries of the Customs Authorities for Advance Rulings, Delhi and Mumbai as below:
Customs Authority for Advance Rulings, New Delhi
Shri A.K. Sapra,
Customs Authority for Advance Rulings, Mumbai
Shri Ashok Kumar III,
Customs Authorities for Advance Rulings, New Delhi and Mumbai have started functioning. The authorities have also started issuing rulings in respect of such applications that have been transferred from the erstwhile Authority for Advance Rulings to the new Customs Authority for Advance Rulings, New Delhi and Mumbai in terms of section 28-F (3) of the Act, read with regulation 31 of CAAR Regulations, 2021, besides receiving and processing applications filed before the authorities under section 28-H of the Act in accordance with the procedure laid down under Chapter VB of the Customs Act, 1962 read with the Customs Authority for Advance Rulings, Regulations, 2021.
The jurisdiction of the two authorities shall be determined in terms of the address provided by the applicant while making the application, as detailed below.
Customs Authority for Advance Rulings.
Jurisdiction to hear applications for
Advance Rulings (State-wise and Union territory-wise, etc.).
Customs Authority for Advance Rulings, Delhi.
Jammu & Kashmir, Himachal Pradesh, Punjab, Chandigarh, Uttar Pradesh, Delhi, Haryana, Uttarakhand, Bihar, Jharkhand, West Bengal, Andaman and Nicobar Islands, Sikkim, Odisha, Rajasthan, Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura
Applicants providing an address other than that within the territory of India.
Customs Authority for Advance Rulings, Mumbai.
Andhra Pradesh, Telangana, Karnataka, Kerala, Lakshadweep, Puducherry, Tamil Nadu, Gujarat, Dadra and Nagar Haveli and Daman and Diu, Maharashtra, Goa, Madhya Pradesh and Chhattisgarh.
In terms of section 28E (c), an applicant for seeking advance ruling can be any person:(i) holding a valid Importer-exporter Code Number granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; or(ii) exporting any goods to India; or(iii) with a justifiable cause to the satisfaction of the authority.
The questions on which advance rulings can be sought are specified in section 28H as follows:
(a) classification of goods under the Customs Tariff Act, 1975;
(b) applicability of a notification issued under sub-section (1) of section 25, having a bearing on the rate of duty;
(c) the principles to be adopted for the purposes of determination of value of the goods under the provisions of this Act;
(d) applicability of notifications issued in respect of tax or duties under this Act or the Customs Tariff Act, 1975 or any tax or duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act or the Customs Tariff Act;
(e) determination of origin of the goods in terms of the rules notified under the Customs Tariff Act, 1975 and matters relating thereto;
(f) any other matter as the Central Government may, by notification, specify.
HOWEVER, proviso to section 28-I (2) ibid provides that the authority shall not allow the application where the question raised in the application is –
(a) already pending in the applicant's case before any officer of customs, the Appellate Tribunal or any Court; or
(b) the same as in a matter already decided by the Appellate Tribunal or any Court.
Section 28 J ibid provides that the advance ruling pronounced by the authority shall be binding only –
(a) on the applicant who had sought it;
(b) in respect of any matter referred to in sub-section (2) of section 28H;
(c) on the Principal Commissioner of Customs or Commissioner of Customs, and the customs authorities subordinate to him, in respect of the applicant.
In accordance with the provisions of Chapter VB of the Customs Act, 1962 read with the Customs Authority for Advance Rulings Regulations, 2021, an application for advance ruling shall be made before the jurisdictional authority in Form CAAR-1. The format of CAAR-1 is available at departmental website, under the web link
CAAR Regulations, 2021
CAAR Forms 1, 2 and 3
The procedure on receipt of the application for advance ruling are detailed in section 28-I ibid and regulation 8 of the Customs Authority for Advance Rulings Regulations, 2021.