An importer files an into-bond bill of entry for goods with an assessable value of ₹ 15,00,000. Basic customs duty is 10% ad valorem and no other…
CA Final · Indirect Tax Laws · MTP · November 2026
An importer files an into-bond bill of entry for goods with an assessable value of ₹ 15,00,000. Basic customs duty is 10% ad valorem and no other duty or tax is payable on said goods. The importer must execute a consignment bond for the warehousing of these goods. What is the minimum bond amount?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
Basis: Section 59(1) of the Customs Act, 1962. The importer must execute a bond for an amount equal to thrice the amount of duty assessed on such goods. Assessable value = ₹ 15,00,000. Basic customs duty @ 10% = ₹ 1,50,000. Minimum bond amount = 3 × ₹ 1,50,000 = ₹ 4,50,000.
Topics: Customs: Warehousing
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