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CA Final · Indirect Tax Laws · Classification of Imported and Export Goods

Anand Exports imported goods and the duty was assessed provisionally under section 18 of the Customs Act, 1962. Provisional duty was paid on 5 August 2023 and final assessment was completed on 15 January 2024. The goods are identifiable and unused. For counting the two-year period under section 74 for entering the goods for export, and for fixing the date of entry for export, which view is correct?

The two-year period runs from 5 August 2023, the date of payment of provisional duty, and goods are deemed entered for export on the date with reference to which the rate of duty is calculated under section 16. This follows section 74(4)(a) and (b).

  1. AThe period runs from 15 January 2024, the date of final assessment, and the date of entry for export is the date of the shipping bill filing
  2. BThe period runs from 5 August 2023, the date of payment of provisional duty, and goods are deemed entered for export on the date with reference to which the rate of duty is calculated under section 16Correct
  3. CThe period runs from 5 August 2023, and goods are deemed entered for export on the date the vessel departs
  4. DThe period runs from 15 January 2024, and goods are deemed entered for export on the date with reference to which the rate of duty is calculated under section 16

Explanation

Section 74(4)(b) deems the date of payment of provisional duty to be the date of payment of duty, so the two years run from 5 August 2023. Section 74(4)(a) deems goods entered for export on the date with reference to which the rate of duty is calculated under section 16. Final assessment date and vessel departure are not the statutory reference points.

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