DATE FOR DETERMINATION RATE & TARIFF VALUE Students

Notes
SECTION 15(1) FOR IMPORTED GOODS

3.21.9
If goods entered for home consumption If goods cleared In the case of any
from warehouse other goods

DATE FOR DETERMINATION

After : If bill of entry is
presented after entry
inward of vessel or
arrival of aircraft.
Prior : If bill of entry is
presented
RATE OF & TARIFF VALUE
Relevant date for Relevant date for
duty rate & tariff duty rate & tariff
value is date of value is date of
presentation of payment of duty.
Exbond BOE

CH.3
Relevant date for Before entry inward Before arrival of
duty rate and tariff of vessel aircraft/ Vehicle
value is date of
presentation of bill
of entry. Relevant date is Relevant date is
date of entry inward date of arrival of
of vessel aircraft / Vehicle

(2) The provisions of this section shall not apply to baggage and goods imported by post.
Tutorial Notes
Relevant date for duty rate and tariff value for baggage and post is governed by Sec. 77 and Sec. 83 of
Custom Act 1962 respectively.

CASE STUDY

M/s Amber Woollen Mills vs Collector of Customs, Delhi (S.C) 1998

Facts : In the above case, the goods arrived at Bombay Port on 10.2.1987 and were
transshipped therefrom to Delhi ICD where they arrived on 8.3.1987 and 11.3.1987. The bill
of entry for home consumption were filed at Delhi on 26.2.1987.

Issue : The relevant rate of duty applicable – whether on the date of filing the Bill of Entry or
transshipment date

Court Decision : Here, it was held that the rate of duty as in force on 26.2.1987 will apply,
being the date for presentation of bills of entry for home consumption after entry inwards had
already been granted to the vessel at Bombay . Section 31 prohibits unloading of goods
before grant of entry inwards to the vessel. This rule applies to all goods, whether they are
cleared from the port of unloading or for transshipment to some other port. Sections 54 and
55 to transshipment or transfer to ICD have no bearing on the determination of rate of duty
and tariff valuation application to such goods.

CASE STUDY In case of Samar Timber Corporation v. ACC 1995 (79) E.L.T. 549 (Bom.), it
was held that relevant date in respect of rate of duty payable is the date of
presentation of Bill of Entry and not date of re-presentation after correction.

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 SECTION 16(1) FOR EXPORT GOODS
Students
Notes
If goods entered for Export u/s 50 In the case of any other goods

Relevant date for duty rate and tariff value is Relevant date for duty rate and tariff value is
date of Let Export Order (ie, order for loading date of payment of export duty.
3.3
1.9
for exportation) given by Proper Officer.

(2) The provisions of this section shall not apply to baggage and goods exported
by post.
DATE FOR DETERMINATION
RATE OF & TARIFF VALUE

EXPORTED GOODS

SHIPPING BILL Date Shipping

- 20/02/12
Date - 20/03/12 Duty Bill
Rate - 10%
Duty Rate - 10% Shipping
Bill

Territorial Water CUSTOMS

CUSTOMS
CH.3

LET EXPORT
ORDER RECEIVED

Date - 5/03/12 Applicable

Duty Rate - 15% Rate is
15%

Examination
Question An Exporter exported goods valuing ` 1,00,000 to United States of America (USA) by a vessel.
Other details are as follows:
Particulars Date of submission Rate of export duty
Shipping Bill 1.8.2010 10%
Entry outwards granted to the 5.8.2010 8%
vessel by the proper
officer of Customs
Left export order received 6.8.2010 8%
Ship let for USA from the Indian port 7.8.2010 15%
Ship crossed the territorial water of India 8.8.2010 12%

You are required to find the customs duty payable for exported goods?
Answer:

Question
Certain goods were brought to the export shed on 5.10.2009. The goods were examined and 'let export order' was issued on the same day by
noting of the shipping bill. Computer processed shipping bill was issued on 6.10.2009. DEPB rate was lowered on 6.10.09 and the Department
allowed DEPB at the rate prevailing on 6.10.2009. The goods were permitted for clearance and loading on 5.10.2009. It is the assessee's case
that under the Customs Act, 1962, they are entitled for the higher rate of DEPB prevailing on 5.10.2009. Write a brief note whether the
assessee's stand is correct in law. (4 Marks, Nov 2010)
Answer : In this case, the goods were brought to export shed on 5.10.09 and were examined on the same day when the noting of the shipping bill was
also completed. The goods were permitted for clearance and loading on the same day.

Section 16(1)(a) of the Customs Act, 1962 deals with date for determination of rate of duty and tariff valuation of export goods. It states that in the case of
goods entered for export under section 50, the rate of duty and tariff valuation, if any, applicable to any export goods, shall be the rate and valuation in
force on the date on which the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51.
Section 50 deals with entry of goods for exportation by presenting a shipping bill and section 51 deals with the permission to clear and load the goods.
Since, in the given case, both the events have taken place on 5.10.09, the rate of duty for DEPB purposes shall be the rate prevailing on 5.10.09 which is
the higher rate. The assessee's stand in this case is correct.

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ASSESSMENT
SECTION 2(2) Assessments includes provisional assessment, self-assessment,
re-assessment and any assessment in which the duty assessed is nil.

Import License (if required)

Challan (Proof of Payment)

Valuation Declaration

Certicate of Origin
3.41.9

Bill of Lading
CUSTOMS

Packing List
CUSTOMS

Invoice

DATE FOR DETERMINATION

RATE OF & TARIFF VALUE
B/E
(Self + Approach Customs House
Verication (Process) Assessed)

Sec. 47
Out of Charge Order

CH.3
Verication of Examination of Final Delivery
Self assessment Goods

SEC 17 SELF ASSESSMENT & RE -ASSESSMENT

a) Duty to be self-assessed by the importer/exporter If importer confirmed his Re-assessment done by proper
An importer entering any imported goods under section 46 acceptance on re- officer is final
(Bill of entry), or an exporter entering any export goods under assessment -
section 50 (shipping bill), shall, save as otherwise provided If importer does not The proper officer shall pass a
in section 85 (i.e. stores allowed to be warehoused without confirm his acceptance speaking order on the re-
assessment of duty), self-assess the duty, if any, leviable on on re-assessment - assessment, within 15 days
such goods. from the date of re-assessment
of the bill of entry or the shipping
b) Verification by proper officer bill, as the case may be.
For verification of self-assessment, the proper officer (e) Audit at custom office / premises of importer or
may require the importer, exporter or any other person exporter
to produce any document or information, whereby the
Where re-assessment has not been done or a speaking
duty leviable on the imported goods or export goods, as
order has not been passed on re-assessment, the proper
the case may be, can be ascertained and thereupon, the
officer may audit the assessment of duty of the imported
importer, exporter or such other person shall produce goods or export goods at his office or at the premises of the
such document or furnish such information. importer or exporter, as may be expedient, in such manner
(Substituted by F.A.2017) as may be prescribed.

c) Reassessment of duty by the proper officer if self-
assessment not done correctly
Where it is found on verification, examination or testing of the
goods or otherwise that the self-assessment is not done
correctly, the proper officer may, without prejudice to any
other action which may be taken under this Act, re-assess
the duty leviable on such goods.
Explanation- In cases where an importer has entered any
imported goods under section 46 or an exporter has entered
any export goods under section 50 before 08.04.2011, such
imported goods/ export goods shall continue to be governed
by the provisions of erstwhile section 17.

d) Speaking order for re-assessment to be passed

unless the importer agrees with the reassessment
Where any re-assessment done is contrary to the self-
assessment done by the importer or exporter regarding
valuation of goods, classification, exemption or concessions
of duty availed

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 SEC 18 PROVISIONAL ASSESSMENT

If Warehousing
1) Notwithstanding anything contained in this Act but without prejudice to the provisions of section 46 without
Warehousing
is allowed

a) Where the b) Where the proper c) Where the d) W h e r e

3.5
1.9
importer or exporter is officer deems it importer or exporter necessary documents
unable to make self- necessary to subject any has produced all the have not been
assessment under sub- imported goods or necessary documents p r o d u c e d o r
section (1) of section export goods to any and furnished full information has not
DATE FOR DETERMINATION
RATE OF & TARIFF VALUE

17 and makes a request chemical or other test; information but the been furnished and
in writing to the proper proper officer deems it the proper officer
officer for assessment necessary to make deems it necessary to
further enquiry make further enquiry

The proper officer may direct that the duty leviable on such goods be assessed provisionally if the importer or the exporter,
CH.3

as the case may be, furnishes such security as the proper officer deems fit for the payment of the deficiency, if any,
between the duty as may be finally assessed or re-assessed as the case may be, and the duty provisionally assessed

FINAL ASSESSMENT
1) When the duty leviable on such goods is assessed finally or re-assessed by the proper officer in accordance
with the provisions of this Act, then

in the case of goods cleared for home consumption

in the case of warehoused goods
or exportation,

the proper officer may, where the duty

If Final Assessed or
reassessed Duty is more than
or equals to duty
provisionally paid
Differential amount payable to
Government with Interest
If Final Assessed 0r
reassessed Duty is less than
the duty provisionally paid
Excess amount eligible for
refund with Interest
Refund is available subject to
Doctrine of Unjust enrichment
finally assessed or re-assessed, as the
case may be, is in excess of the duty
provisionally assessed,
require the importer to execute a bond,
binding himself in a sum equal to thrice
the amount of the excess duty

Liability to Pay Interest: The importer or exporter shall be liable to pay interest, on any amount payable to Central
Government, consequent to the final assessment order, at the rate of 18% p.a. from the first day of the month in which the
duty is provisionally assessed till the date of payment thereof.

Entitlement of Interest on Refund: If any amount refundable is not refunded within three months from the date of
assessment of duty finally/ there shall be paid an interest on such unrefunded amount at rate of 6% p.a. till the date of
refund of such amount.

Refund is available subject to doctrine of unjust enrichment

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 SEC: 19 DETERMINATIONS OF DUTY WHERE GOODS CONSIST OF ARTICLES LIABLE TO
DIFFERENT RATES OF DUTY Students
Except as otherwise provided in any law for time being in force, where goods consist of set Notes
of articles, Duty shall be calculated as follows:
Article liable to duty with reference to
DUTY WITH REFERENCE TO quantity shall be chargeable to that
QUANTITY; duty. 3.61.9
i.e. Duty is payable as follows
A B C D A : 10/kg B : 20/kg
` 10/Kg. ` 20/Kg. ` 5/Kg. ` 2/Kg. C : 5/kg D : 2/kg.

DATE FOR DETERMINATION

RATE OF & TARIFF VALUE
Duty with reference to value :

IF THEY ARE LIABLE TO DUTY AT All articles shall be chargeable to duty

THE SAME RATE, at that rate.
i.e. @ 10%
A B C D

CH.3
10% 10% 10% 10%

All articles shall be chargeable to duty at the

IF THEY ARE LIABLE TO DUTY AT highest rate. [Even though some article are at
DIFFERENT RATE, NIL rate] i.e.10%

NIVEA But if the importer produces evidence to

the satisfaction of the proper officer or the
evidence is available regarding the value
of any of the articles liable to different
rates of duty, such article shall be
chargeable to duty separately at the rate
10% 5% 8% Nil applicable to it.

Assessment of accessories supplied with main equipment:

Accessories of any article which satisfy the condition of Accessories (conditions) rules, 1963, made
in this behalf are chargeable to duty at the same rate as that of the main article.
Accessories (condition) rule, 1963:
1. Accessories of and spare parts and maintenance or repairing implements form, any article,
2. When imported along with the article shall be chargeable at the same rate of the duty as that
article,
3. If proper officer is satisfied that in the ordinary course of trade:-
► Such accessories, parts, implements are compulsorily supplied along with that article and
► No separate charge is made for such supply, their price being included in price of the article.

PROJECT IMPORTS [M-05]

► Where an Industrial or similar project is going to be installed or commissioned or an existing unit is planned to
expand, for its initial setting up, a numbers of different machineries, raw material, components, auxiliary equipments,
spares etc. are required all these items are classifiable under different heading,
► It involve different duty for different items and careful scrutiny of each and every item for assessment, this leads to delay in
clearance and certain amount of hardship over importers.
► Thus to alleviate the same and streamline the process of assessment, new tariff heading with a flat rate was framed to
cover all project imports under CTA1975 (heading no. 98.01).

Eligible Projects
● Industrial plants ● Power projects ● Project for oil or mineral exploration
● Irrigation projects ● Mining projects
● Other project as specified by C.G.

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 1.9
DATE FOR DETERMINATION

3.7
CH.3 RATE OF & TARIFF VALUE

46
Blank page for Exercise
Notes
Students