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

Sharma Exports delivers goods to an authorised courier for export on 5 June. The shipping bill route is not used. Duty rate on the goods was 4% until 8 June and 6% from 9 June, and the courier ships the goods on 10 June. Under Section 83, which rate applies?

The rate is 4%. For goods exported 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 authorised courier, here 5 June. Later shipment on 10 June is irrelevant.

  1. A6%, the rate on the date of shipment
  2. B6%, the rate on the date duty is paid
  3. C4%, the rate on the date the exporter delivers the goods to the authorised courierCorrect
  4. D4%, the rate on the date an order permitting clearance is made under Section 51

Explanation

Section 83(2) fixes the rate and tariff value for goods exported by courier as those in force on the date the exporter delivers the goods to the authorised courier. That date is 5 June, when the rate was 4%. Section 16 does not apply to goods exported by post.

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