7. Post Clearance Audit
Post clearance audit shall be completed within 4 years after the date of clearance of goods. In case lesser amount is paid by falsifying records, may be conducted any time. Re-audit may also be conducted, time limit for original audit shall be taken into account.
Records to be verified
- Books relating to purchase,
- Books relating to import
- Books relating to sales
- Records, Books, other documents
- Bank records
- computer system
- other records related to business
Documents and information , bank account info, balance sheet and PL and other similar documents may be sought from third parties like banks.
Documents relating to import shall be retained for 4 years.
| Difference in Transaction Value or sub-heading of classification | Duty to be recovered + 100 % of such duty as penalty |
| Difference in goods from the declaration (Pragyapan), Lesser quantity than I/E | Recover duty + Penalty as per section 57 |
| Imported without declaring model, brand size, measurement, unit , manufacturer | 5% of value of goods as penalty. If impossible to declare - No Penalty |
| Imported goods under duty exemption not used for the purpose or not by the concerned person | As per section 57 i.e. 100% of value of goods |
| Inconsistency in the size, name and measurement of goods in the Pragyapan Patra or other import related documents with the purchase register, sales invoice | 5% of the value of goods |
Procedure after audit -
Show cause notice to defend within 15 days from receipt of such notice. Assessment order shall be passed, Additional duty to be paid within 35 days from the receipt of final order, if not paid in time - 15% interest. Can freeze property if not recovered to be recovered as government debt.
Published By
Chartered Nepal
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