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

Kaveri Exports Pvt Ltd of Chennai files a shipping bill for goods entered for export. The proper officer passes the order permitting clearance and loading on 20 March. The shipping bill was presented on 12 March and the export duty rate changed from 5% to 8% on 18 March. Which rate applies?

The rate is 8%. For export goods entered for export, the rate and tariff valuation in force on the date the proper officer orders clearance and loading apply, not the date of the shipping bill, and that date, 20 March, falls after the rate change.

  1. A5%, the rate on the date of presenting the shipping bill
  2. B8%, the rate on the date the officer permits clearance and loadingCorrect
  3. C8%, the rate on the date the goods are actually shipped abroad
  4. D5%, the rate on the date of the contract of sale

Explanation

For export goods entered under the entry provision, the rate is that in force on the date the proper officer makes an order permitting clearance and loading. That date is 20 March, when the rate is 8%. Option A wrongly uses the shipping bill date.

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