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

Kavita Gifts Pvt. Ltd. receives goods from the USA through an authorised courier. The courier presents the list of goods with particulars to the proper officer on 9 August. The goods were imported by air, and the tariff value changes on 5 August (old) and on 12 August (new) for this class of goods. Which tariff value applies under Section 83 of the Customs Act, 1962?

The tariff value in force on 9 August applies. Under Section 83, for goods imported by courier, the rate and tariff value are those in force on the date the authorised courier presents the list containing particulars to the proper officer, not the date of payment or clearance.

  1. AThe value in force on 12 August, the date of clearance by the consignee
  2. BThe value in force on 5 August, the date of arrival of the goods
  3. CThe value in force on 9 August, when the authorised courier presents the list to the proper officerCorrect
  4. DThe value in force on the date duty is paid by the consignee

Explanation

Section 83(1) says the rate and tariff value for goods imported by post or courier are those in force on the date the postal authorities or authorised courier present the list of particulars to the proper officer. The proviso on earlier presentation applies to goods imported by vessel, not air. So the value in force on 9 August applies.

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