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CMA Final · Indirect Tax Laws and Practice · Valuation and Related Party Transactions

Meera Exports ships goods under a shipping bill. The proper officer makes the order permitting clearance and loading under section 51 on 20 June. Duty on export goods was 5% up to 19 June and 8% from 20 June. The shipping bill was presented on 15 June and the goods were actually loaded on 24 June. Under section 16 of the Customs Act, 1962, which statement is correct?

8% applies. For export goods entered under section 50, the rate is the one in force on the date the proper officer makes the order permitting clearance and loading under section 51, which is 20 June, not the shipping bill date or the loading date.

  1. A8% applies, being the rate on the date of the order permitting clearance and loadingCorrect
  2. B5% applies, being the rate on the date the shipping bill was presented
  3. C8% applies, being the rate on the date of actual loading on 24 June
  4. D5% applies, being the rate on the date before the order

Explanation

Section 16(1)(a) fixes the rate for goods entered for export under section 50 as the rate in force on the date the proper officer makes the order permitting clearance and loading under section 51. That date is 20 June, when the rate was 8%. The shipping bill date (5%) is the import-style trap, and the actual loading date is not the test.

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