Section 15 of Customs Act

Import Cases

Case

Rate of duty and tariff valuation as on

Goods entered into home consumption

Date of presentation of Bill of Entry

Or

Date of entry inwards

Which ever is later

Goods Entered into Warehousing

Date of presentation of Bill of entry for home consumption(Bill of entry filed when goods are finaly cleared from warehouse)

Any other goods

Date of payment of duty

 

Section 16

In case of Export, following dates are taken

 

In case of

Rate of duty and tariff

valuation as on

Goods entered for export

Date on w hich t he proper o ff icer makes an orde r per m itting clearan c e and loadin g of the goo d s for exportation

 

 

Any other goods

Date of payment of duty

 

Note:- The above rules are not applicable in case of

  1. Goods imported by Post
  2. Goods imported by Baggage

Exam Questions

Question 7
Nanak Enterprises imported machinery from USA in an aircraft. The bill of entry was
presented on 05.06.20XX and the aircraft arrived in India on 15.06.20XX. The rate of import
duty on the respective dates was as follows:-

Particulars  Date    Rate of customs duty
Date of bill of entry     05.06.20XX 10%
Date of arrival of aircraft  15.06.20XX  11%

Determine the rate of import duty applicable in the given case.

-a-

In case the goods have been imported in an aircraft, the rate of duty shall be the rate in force
on:-
(i) the date on which Bill of Entry in respect of such clearance is presented
or
(ii) the date on which arrival of aircraft takes place
whichever is later.
Therefore, the relevant date for determination of the rate of import duty , in the given case, is
15.06.20XX. Hence, the rate of import duty applicable in the given case is 11%.

-ea-

Question 11
Trident Enterprises imported goods from Bangladesh in a vehicle. Determine the rate of
import duty to be considered for computation of import duty from the following information: -

Particulars  Date    Rate of customs duty
Date of filing of Bill of Entry  15.09.20XX 10%
Date of arrival of vehicle 20.09.20XX 12%
Date on which goods were allowed to be cleared from the land customs station      28.09.20XX 11%
Date of payment of the value of the goods imported                                                              30.09.20XX 8%

-a-

Section 15 of the Customs Act, 1962 provides that in case the goods have been imported in a
vehicle, the rate of duty shall be the rate in force on: -
(i) the date on which Bill of Entry is presented
or
(ii) the date on which arrival of vehicle takes place
whichever is later.
Therefore, the relevant date for determination of the rate of import duty, in the given case, is
20.09.20XX. Hence, the rate of import duty applicable in the given case is 12%.

-ea-

  1. Indirect Tax
  2. Customs
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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