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

Which of the following statements about tariff values and the rule on the date for baggage is correct as per the Customs Act, 1962?

The correct statement is that under Section 14(2) the Board may notify tariff values for any class of imported or export goods, and duty is charged on that value. Section 15 excludes baggage and postal imports, and Section 78 uses the declaration date for baggage.

  1. AUnder Section 14(2), the Board may by notification fix tariff values for any class of imported or export goods, and duty is then chargeable with reference to such tariff valueCorrect
  2. BUnder Section 14(2), the Board may fix tariff values only for export goods and not for imported goods
  3. CSection 15 applies to baggage and goods imported by post, fixing the date as that of the bill of entry
  4. DUnder Section 78, the rate of duty and tariff valuation for baggage is that in force on the date of arrival of the passenger

Explanation

Section 14(2) lets the Board, if satisfied it is necessary or expedient, notify tariff values for any class of imported or export goods, and duty is then charged on that value. Section 15(2) excludes baggage and postal goods; Section 78 uses the date of declaration under section 77, not arrival.

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