Skip to content

CA Final · Indirect Tax Laws · Warehousing

Ocean Provisions Ltd enters imported goods for warehousing and subscribes to a declaration that the goods are to be supplied as stores to vessels without payment of import duty. Which of the following is correct under the Customs Act, 1962?

The proper officer may permit warehousing without assessing duty. Under section 85, where the importer declares that the goods will be supplied as stores to vessels or aircraft without payment of import duty, assessment before warehousing is not required.

  1. AThe proper officer may permit the goods to be warehoused without the goods being assessed to dutyCorrect
  2. BThe goods must be assessed to duty, which is then kept in abeyance until supply to the vessels
  3. CThe goods cannot be warehoused and must be kept in a transit shed until supplied
  4. DThe declaration is valid only for aircraft and not for vessels

Explanation

Section 85 allows the proper officer, where the importer makes and subscribes to a declaration that goods are to be supplied as stores to vessels or aircraft without payment of import duty, to permit warehousing without assessment to duty. The abeyance option adds a requirement not in the section, and the section covers both vessels and aircraft.

Did you get it right without looking?

One question tells you little. A timed set on Warehousing shows your real accuracy, how long you take and where you lose marks.

Practise WarehousingFree diagnostic mock

More Warehousing questions