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

Meera Exports, Surat, hands over goods for export by courier to the authorised courier on 5 June. The courier despatches them on 9 June. The export duty rate was 4% on 5 June and 6% on 9 June. Under Section 83(2), what rate applies?

The rate is 4%. Under Section 83(2), the export rate is the one in force when the exporter delivers the goods to the authorised courier, which is 5 June, not the later despatch date.

  1. A6%, as the rate on the despatch date
  2. B6%, as the rate on the date the list is presented to the proper officer
  3. C4%, as the rate on the date the exporter delivers the goods to the authorised courierCorrect
  4. DAverage of 4% and 6%, i.e. 5%

Explanation

Section 83(2) provides that for goods exported by post or courier, the rate in force is that on the date the exporter delivers the goods to the postal authorities or authorised courier. That date is 5 June, so 4% applies. The list-presentation rule in Section 83(1) is for imports.

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