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CMA Final · Indirect Tax Laws and Practice · Valuation and Related Party Transactions

Gamma Traders cleared goods from a bonded warehouse. The bill of entry for ex-bond clearance was presented on 5 June, the goods were physically removed on 9 June, and duty was paid on 7 June. The tariff valuation was changed by notification effective 8 June. Under section 15, which tariff valuation applies?

The tariff valuation in force on 5 June applies. For goods cleared from a warehouse under section 68, section 15(1)(b) takes the date on which the bill of entry for home consumption is presented, not the dates of payment or physical removal.

  1. AThe valuation in force on 5 JuneCorrect
  2. BThe valuation in force on 7 June
  3. CThe valuation in force on 9 June
  4. DThe valuation in force on the date of original warehousing

Explanation

Section 15(1)(b) says that for goods cleared from a warehouse under section 68, the rate and tariff valuation are those in force on the date a bill of entry for home consumption is presented. That is 5 June, before the 8 June change. Payment on 7 June and removal on 9 June do not govern, and the removal-date wording was replaced by amendment.

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