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CMA Final · Indirect Tax Laws and Practice · Customs Procedures - Baggage and Courier / Post

An exporter hands over goods to an authorised courier for export on 5 April, when the export duty rate is 4%. The courier files the export documents on 9 April, when the rate is 6%, and the goods leave India on 12 April when the rate is 8%. Goods value is ₹2,00,000 and the tariff value is unchanged. What export duty applies under Section 83(2)?

Export duty is ₹8,000. Section 83(2) uses the rate in force when the exporter delivers the goods to the authorised courier, which is 5 April at 4%. Applying 4% to ₹2,00,000 gives ₹8,000; later filing or departure dates are irrelevant.

  1. A₹8,000Correct
  2. B₹12,000
  3. C₹16,000
  4. D₹10,000

Explanation

Section 83(2) fixes the rate and valuation as in force on the date the exporter delivers the goods to the postal authorities or authorised courier. That is 5 April, so the rate is 4%. Duty = 4% x ₹2,00,000 = ₹8,000. The 6% rate would give ₹12,000 and the 8% rate ₹16,000, both using the wrong date.

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