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

Kaveri Exports presents a shipping bill under section 50 for garments. The proper officer makes an order permitting clearance and loading under section 51 on 20 March. The export duty rate changes on 22 March, and the goods are physically loaded on 23 March. Duty rate and tariff valuation applicable to these export goods are those in force on:

The applicable rate and tariff valuation are those in force on 20 March. For goods entered for export under section 50, section 16(1)(a) fixes the relevant date as the date of the proper officer's order permitting clearance and loading under section 51, not presentation or physical loading.

  1. A20 March, the date of the order permitting clearance and loadingCorrect
  2. B22 March, the date of the change in rate
  3. C23 March, the date of actual loading
  4. Dthe date the shipping bill was presented

Explanation

Under section 16(1)(a), for goods entered for export under section 50, the rate and valuation are those in force on the date the proper officer makes the order permitting clearance and loading under section 51. That is 20 March. The date of presentation or physical loading is not the test.

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