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

Kaveri Exports of Chennai submits a shipping bill under section 50 for garments on 5 June. The proper officer makes an order permitting clearance and loading under section 51 on 9 June. An export duty rate change takes effect on 8 June, and the goods are physically loaded on 11 June. Which date determines the rate of export duty?

The rate in force on 9 June applies. For goods entered for export by shipping bill, the rate is the one on the date the proper officer makes the order permitting clearance and loading for export. Neither the shipping bill date nor the date of physical loading governs.

  1. A5 June, when the shipping bill was presented
  2. B8 June, when the rate changed
  3. C9 June, when the order permitting clearance and loading is madeCorrect
  4. D11 June, when the goods were loaded

Explanation

Under section 16(1)(a), for goods entered for export under section 50, the rate is that in force on the date the proper officer makes the order permitting clearance and loading under section 51. That is 9 June. The shipping bill date is the wrong base, and actual loading is not the relevant date.

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