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CA Final · Indirect Tax Laws · Valuation under the Customs Act, 1962

Arjun Exports enters goods for export by filing a shipping bill under section 50 on 5 June. The proper officer makes an order permitting clearance and loading under section 51 on 9 June. The export duty rate changes by notification effective 8 June, and Arjun pays any duty on 12 June. Which date determines the rate of duty and tariff valuation for these export goods under section 16?

The relevant date is 9 June. For export goods entered under section 50, the rate of duty and tariff valuation are those in force when the proper officer makes the order permitting clearance and loading under section 51, not when the shipping bill is filed or duty is paid.

  1. A5 June, when the shipping bill was presented
  2. B8 June, when the notification took effect
  3. C9 June, when the order permitting clearance and loading is madeCorrect
  4. D12 June, when duty is paid

Explanation

For goods entered for export under section 50, section 16(1)(a) uses the date on which the proper officer makes the order permitting clearance and loading under section 51, here 9 June. Shipping bill date is the trap borrowed from import rules. The payment date applies only to export goods not entered under section 50.

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