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CA Final · Indirect Tax Laws · Valuation under the Customs Act, 1962

Under section 14 of the Customs Act, 1962, which statement about tariff values is correct?

The Board may, by notification in the Official Gazette, fix tariff values for a class of imported or export goods, having regard to the trend of value of such or like goods. Duty is then chargeable on the tariff value instead of the transaction value.

  1. ATariff values can be fixed only by the proper officer for each individual consignment
  2. BTariff values are fixed by the Board by notification for a class of goods, and duty is then chargeable on that tariff value instead of transaction valueCorrect
  3. CTariff values apply only when the buyer and seller are related
  4. DTariff values apply to imported goods only and never to export goods

Explanation

Section 14(2) begins with a non-obstante clause: if the Board is satisfied it is necessary or expedient, it may by notification fix tariff values for any class of imported or export goods, having regard to the trend of value of such or like goods. Duty is then chargeable with reference to the tariff value. It covers both imports and exports and is not tied to related parties.

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