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CMA Final · Indirect Tax Laws and Practice · Customs Procedures - Baggage and Courier / Post

Kerala Spices Ltd exports a parcel through an authorised courier. It hands the goods to the courier on 5 June, when the export duty rate was 4%. The courier files the list with customs on 9 June, and the rate becomes 6% on 8 June. The goods are exported on 10 June. Under Section 83(2), what rate applies?

The rate is 4%. For exports by post or courier, Section 83(2) applies the rate and tariff value in force on the date the exporter delivers the goods to the postal authorities or authorised courier, here 5 June, regardless of later filing or shipment dates.

  1. A6%, as in force on the date of filing the list
  2. B6%, as in force on the date of export
  3. C4%, as in force on the date the exporter delivered the goods to the authorised courierCorrect
  4. D5%, being the mean of both rates

Explanation

Section 83(2) fixes the rate for goods exported by post or courier as the rate in force on the date the exporter delivers the goods to the postal authorities or authorised courier. That is 5 June, giving 4%. Later filing or export dates are not relevant.

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