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

A Mumbai firm imports goods by courier. The authorised courier presents the list of goods containing particulars to the proper officer on 12 August, but the import rate of duty changes on 14 August. The firm's courier bill of entry processing completes on 16 August. Which date determines the applicable rate and tariff value under the Act?

The date is 12 August. Under section 83(1), for courier imports the rate and tariff value are those in force when the authorised courier presents the list containing particulars of the goods to the proper officer, not when assessment ends or when the rate changes.

  1. A16 August, when assessment is completed
  2. B12 August, when the authorised courier presents the list of goods to the proper officerCorrect
  3. C14 August, when the new rate took effect
  4. DThe date the goods were handed to the courier abroad

Explanation

Section 83(1) provides that for goods imported by post or courier, the rate and valuation are those in force on the date the authorised courier presents the list of particulars to the proper officer for assessing duty. That is 12 August. Assessment completion and the rate-change date are irrelevant.

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