Skip to content

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

Anand Exports Pvt Ltd hands over goods for export to an authorised courier on 8 April. The export duty rate was 5% on 8 April and 7% on 10 April, when the courier actually dispatched the goods. A shipping bill-type list was filed on 11 April. As per the Customs Act, 1962, which rate applies?

The rate is 5%. Under section 83(2), for exports by courier the rate and valuation are those in force when the exporter delivers the goods to the authorised courier, here 8 April, not the dispatch date or the later filing date.

  1. A7%, the rate on the date of dispatch by the courier
  2. B7%, the rate on the date the list is filed
  3. C5%, the rate on the date the exporter delivers the goods to the authorised courierCorrect
  4. D5%, the rate on the date the goods leave India

Explanation

Section 83(2) says the rate for goods exported by post or courier is the rate in force on the date the exporter delivers the goods to the postal authorities or authorised courier. That date is 8 April, so 5% applies. Dispatch or filing dates are irrelevant for export.

Did you get it right without looking?

One question tells you little. A timed set on Customs Procedures - Baggage and Courier / Post shows your real accuracy, how long you take and where you lose marks.

Practise Customs Procedures - Baggage and Courier / PostFree diagnostic mock

More Customs Procedures - Baggage and Courier / Post questions