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

Mehta Gadgets Pvt Ltd in Pune receives goods by authorised courier. On 10 March the courier presents to the proper officer a list of the goods for assessing duty. The goods did not arrive by a vessel. The duty rate was 20% on 5 March, 25% on 10 March and 22% on 15 March, when the goods were cleared. Which rate applies?

The rate is 25%. For goods imported by post or courier, the rate of duty in force is the one on the date the authorised courier presents the list of goods to the proper officer for assessing duty, 10 March. The clearance date does not matter.

  1. A20%, the rate on the date the goods landed
  2. B25%, the rate on the date the list was presentedCorrect
  3. C22%, the rate on the date of clearance
  4. DThe average of 20% and 22%, that is 21%

Explanation

Section 83(1) fixes the rate and tariff value on the date the postal authorities or authorised courier present to the proper officer the list of goods for assessing duty. That date is 10 March, so 25% applies. The clearance date, 15 March, is irrelevant here.

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