De-bonding date governs duty rate for clearance of bonded export zone goods and requires reassessment.

For a unit operating under bond in an export processing zone, the date of de-bonding is the material date for determining the applicable rate of duty and allied levy consequences on clearance of goods. Until the Development Commissioner permits de-bonding, the goods remain in the bonded regime, and the right to clear them on payment of duty arises only on de-bonding. On that basis, duty is to be recalculated with reference to the de-bonding date, and the matter was remanded for reassessment of duty and related amounts.

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Issues: Whether, for a unit functioning under bond in an export processing zone, the date of de-bonding is the material date for determining the rate of duty and other levy consequences on clearance of goods.

Analysis: A unit in the export processing zone operated under bond until de-bonding. The relevant question was whether duty could be assessed with reference to some earlier date or whether the legally significant point was when the Development Commissioner permitted de-bonding and the goods thereby ceased to remain in the bonded regime. Since the goods continued to remain in a bonded unit until de-bonding, the right to clear them on payment of duty arose only upon de-bonding. The date of de-bonding was therefore treated as the date relevant for determining the applicable rate of duty on clearance.

Conclusion: The date of de-bonding is the material date for rate-of-duty purposes, and the matter was remanded for recalculation of duty and allied amounts on that basis.

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