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

A resident in Pune receives goods from abroad through an authorised courier. The courier presents the list of particulars to the proper officer on 12 August, and the tariff value of the goods was revised with effect from 14 August. As per section 83 of the Customs Act, 1962, which tariff value applies?

The tariff value in force on 12 August applies. Section 83(1) fixes the date as the day the authorised courier presents the list of particulars to the proper officer for assessing duty, so the later revision on 14 August does not affect these goods.

  1. AThe value in force on 14 August
  2. BThe value in force when the goods left the foreign country
  3. CThe value in force on the date the consignee takes delivery
  4. DThe value in force on 12 AugustCorrect

Explanation

Section 83(1) states that the rate of duty and tariff value for goods imported by post or courier are those in force on the date on which the postal authorities or authorised courier present to the proper officer a list containing particulars of the goods for assessing duty. That date is 12 August, before the revision. Delivery to the consignee or the dispatch date is not the test.

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