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CMA Final · Indirect Tax Laws and Practice · Valuation and Related Party Transactions

A bill of entry for home consumption is presented on 10 March for goods imported by a vessel, but the vessel's entry inwards is granted on 14 March. The rate of duty was 10% until 12 March and 15% from 13 March. Under section 15 of the Customs Act, 1962, which rate applies?

The 15% rate applies. A bill of entry presented before the vessel's entry inwards is deemed presented on the date of that entry inwards, 14 March, and the rate in force on that date governs under section 15. The earlier actual filing date is overridden.

  1. A15%, because the bill of entry is deemed presented on the date of entry inwards of the vesselCorrect
  2. B10%, because the bill of entry was actually presented on 10 March
  3. C10%, because the rate on the date of the invoice applies
  4. D12.5%, being the average of the two rates

Explanation

Under section 15(1)(a), the rate is that in force on the date the bill of entry is presented. The proviso deems a bill of entry presented before the vessel's entry inwards to be presented on the date of entry inwards, here 14 March, when the rate was 15%. Choosing 10% ignores this proviso.

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