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What exchange rate to be used for purpose of Bill of Entry?

Exchange rate at the time of Bill of entry as determined by Board (CBEC) shall be taken.

There are different exchange rates for buying and selling.

For import, selling rate shall be taken and for purchase, buying rate shall be taken.

 

Note:- Only rates given by CBEC are relevant, exchange rate of RBI or by Foreign Exchange Dealers’ Association of India is not relevant.

Summary

In case of

Exchange rate as on

Which rate ?

Import

Bill of entry Date

Selling rate mentioned by; CBEC

Export

Shipping Bill

(in case of export by vessel and aircraft)

Or

Bill of Export

(in case of export from road)

Buying rate mentioned by; CBEC

 

 

 

 

Exam Questions

Question 5
Sofo Enterprises imported some goods from USA for being used in manufacture of its final
product. Determine the exchange rate to be considered for computation of import duty from
the following information:-

Date  Particulars Rate of exchange notified by CBEC
21.10.20XX  Import general manifest was submitted by master of vessel 1 US Dollar = Rs. 64.20
25.10.20XX  Entry Inwards was granted by the customs officer 1 US Dollar = Rs. 64.30
27.10.20XX  Sofo Enterprises filed the Bill of Entry  1 US Dollar = Rs. 64.50
31.10.20XX  Goods were allowed to be cleared from the customs port 1 US Dollar = Rs. 64.60.
View Answer

Question 6
Genuine Industries exported some goods to UK in a vessel. You are requi red to determine
the rate of exchange for the purposes of computation of export duty from the following
additional information:

Particulars  Date    Exchange rate notified by CBEC Exchange rate notified by RBI
Date of presentation of shipping bill 18.06.20XX Rs. 89 per UK pound Rs. 90 per UK pound
Date of entry outwards 20.06.20XX  Rs. 85 per UK pound Rs. 87 per UK pound
View Answer
  1. Indirect Tax
  2. Customs
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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