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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. |
The relevant rate of exchange for the purpose of valuation of imported goods is the rate of
exchange as in force on the date on which a bill of entry in relation to imported goods is
presented, i.e. 1 US Dollar = Rs. 64.50.
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 |
The exchange rate in the given case will be the rate of exchange notified by CBEC on the date
of presentation of shipping bill, i.e. 18.06.20XX. Hence, the rate of exchange for the purposes
of computation of export duty will be Rs. 89 per UK pound.
