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

Arjun Exports files a shipping bill under section 50 for goods and the proper officer passes an order permitting clearance and loading under section 51 on 18 June. The export duty rate on those goods is 5% on 10 June (shipping bill date), 8% on 18 June, and 10% on 25 June (date of actual loading on the vessel). Which rate applies under Section 16 of the Customs Act, 1962?

The 8% rate applies. For export goods entered under section 50, Section 16 takes the rate and tariff valuation in force on the date the proper officer passes the order permitting clearance and loading under section 51, which is 18 June, not the shipping bill or loading date.

  1. A5%, the rate on the date of presenting the shipping bill
  2. B10%, the rate on the date the vessel departs or goods are loaded
  3. C8%, the rate on the date of the officer's order permitting clearance and loadingCorrect
  4. DThe average of the rates in force between 10 June and 25 June

Explanation

For goods entered for export under section 50, Section 16(1)(a) fixes the rate in force on the date the proper officer makes the order permitting clearance and loading under section 51. That date is 18 June, so 8% applies. The shipping bill date and loading date are not relevant.

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