Skip to content

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

Which statement about date of rate determination under the Customs Act, 1962 is correct?

For post or courier imports the rate is that in force when the list of particulars is presented to the proper officer, and for post or courier exports when the exporter delivers the goods to the courier or postal authority. Sections 15 and 16 do not apply to these cases.

  1. AFor goods imported by post or courier, the rate and tariff value are those in force when the postal authorities or authorised courier present the list of particulars to the proper officer, and for exports by courier, when the exporter delivers the goods to the courierCorrect
  2. BSection 15 on the date of imported goods' rate applies equally to baggage and goods imported by post
  3. CFor baggage, the rate applicable is the one in force on the date the passenger leaves the airport
  4. DFor goods exported by post, section 16 applies and the rate is that on the date of payment of duty

Explanation

Section 83 fixes the rate for post or courier imports at the date the list of particulars is presented to the proper officer, and for post or courier exports at the date the exporter delivers the goods to the postal authority or authorised courier. Sections 15(2) and 16(2) expressly exclude baggage and goods by post, so the other options misstate the law; baggage follows the date of declaration under section 77 (section 78).

Did you get it right without looking?

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

Practise Valuation and Related Party TransactionsFree diagnostic mock

More Valuation and Related Party Transactions questions