What are the conditions required to be fulfilled by the importer to make the imported goods eligible for preferential rate of duty prescribed by the…
CA Final · Indirect Tax Laws · MTP · May 2025
What are the conditions required to be fulfilled by the importer to make the imported goods eligible for preferential rate of duty prescribed by the Central Government by notification under section 25 of the Customs Act, 1962?
Suggested Answer and Working Notes:
The Government may by notification under section 25 of the Customs Act, 1962 prescribe preferential rate of duty in respect of imports from certain preferential areas. The importer will have to fulfill the following conditions to make the imported goods eligible for preferential rate of duty: (i) At the time of importation, he should make a specific claim for the preferential rate. (ii) He should also claim that the goods are produced or manufactured in such preferential area. (iii) The area should be notified under section 4 (3) of the Customs Tariff Act, 1975 to be a preferential area. (iv) The origin of the goods shall be determined in accordance with the rules made under section 4 (2) of the Customs Tariff Act, 1975.
Topics: Customs: Levy of and Exemptions from Customs Duty
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