CA Final · Indirect Tax Laws · Warehousing
Blue Wave Marine Supplies imports provisions to be supplied as stores to vessels without payment of import duty and enters them for warehousing. It makes and subscribes to a declaration to that effect. What may the proper officer do under section 85 of the Customs Act, 1962?
The proper officer may permit the goods to be warehoused without assessing them to duty. Section 85 of the Customs Act, 1962 allows this where the importer subscribes to a declaration that the goods will be supplied as stores to vessels or aircraft without payment of import duty.
- APermit the goods to be warehoused without assessing them to dutyCorrect
- BRefuse warehousing because unassessed goods cannot be warehoused
- CPermit warehousing only after assessing duty and taking a bond for twice the duty
- DPermit warehousing only if the goods are supplied to aircraft and not vessels
Explanation
Section 85 allows the proper officer to permit goods entered for warehousing to be warehoused without assessment where the importer declares they will be supplied as stores to vessels or aircraft without payment of import duty. Vessels and aircraft are both covered.
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