MCQ
Customs Tariff MCQ - Practice Questions with Answers
Solve 93 Customs Tariff questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements about safeguard measures under Section 8B of the Customs Tariff Act, 1975: 1. Safeguard measures require the Central Government to be satisfied, after enquiry, that increased imports cause or threaten serious injury to domestic industry. 2. Safeguard measures may include safeguard duty and tariff-rate quota. 3. A safeguard measure, unless revoked earlier, ceases after four years from application, with an overall cap of ten years if extended. 4. Safeguard measures automatically apply to every hundred per cent export-oriented undertaking and every special economic zone unit without exception. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct. Statement 4 is false: Section 8B contains a non-application rule for 100% export-oriented undertakings and SEZ units unless specified or cleared into the domestic tariff area conditions are met.
Q2Consider the following statements about emergency powers under Sections 8 and 8A of the Customs Tariff Act, 1975: 1. Section 8 applies to export duties even for an article not included in the Second Schedule. 2. A Section 8 notification amends the First Schedule to increase or levy export duty. 3. Section 8A applies to an article included in the First Schedule where import duty under Section 12 of the Customs Act, 1962 should be increased urgently. 4. Under Section 8A, the Central Government cannot substitute an earlier notified import-duty rate before the earlier notification has been approved with or without modifications. Which of the statements given above are correct?
Statements 1, 3 and 4 are correct. Section 8 covers export duty even where the article is not already in the Second Schedule, while Section 8A concerns urgent increases in import duty for First Schedule articles and bars substitution of an earlier notified rate before approval. Statement 2 is incorrect because Section 8 amends the Second Schedule, not the First Schedule.
Q3Consider the following statements about section headings in the Customs Tariff Act, 1975: 1. Section 4 deals with levy where standard and preferential rates are specified. 2. Section 5 deals with levy of a lower rate of duty under a trade agreement. 3. Section 11A deals with repeal and saving. 4. Section 13 gives the Central Government power to amend the First Schedule. Which of the statements given above are correct?
Statements 1 and 2 are correct. Statement 3 is incorrect because repeal and saving is Section 12. Statement 4 is incorrect because power to amend the First Schedule is Section 11A, while Section 13 is a consequential amendment of the Customs Act, 1962.
Q4Consider the following statements about protective duties under the Customs Tariff Act, 1975: 1. The Central Government may impose protective customs duty on the recommendation of the Tariff Commission. 2. Such protective duty is meant to protect the interests of an industry established in India. 3. Protective duty under section 6 is imposed on exports from India. Which of the statements given above are correct?
Statement 1 is correct because section 6 requires a recommendation of the Tariff Commission. Statement 2 is correct because the object is protection of an industry established in India. Statement 3 is incorrect: section 6 applies to goods imported into India, not exports from India.
Q5Consider the following statements about the statutory base of India's customs tariff: 1. Entry 83 of List I in the Seventh Schedule empowers the Union to legislate and collect duties on imports and exports. 2. Section 12 of the Customs Act, 1962 is the charging provision, while the items and rates are specified in two Schedules to the Customs Tariff Act, 1975. 3. The First Schedule to the Customs Tariff Act lists export-duty items, while the Second Schedule lists import-duty items. 4. Section 2 of the Customs Tariff Act says customs-duty rates under the Customs Act, 1962 are specified only in the First Schedule. Which of the statements given above are correct?
Statements 1 and 2 are correct: the constitutional entry is Entry 83 of List I, and Section 12 of the Customs Act works with the two Schedules of the Customs Tariff Act for items and rates. Statement 3 reverses the Schedules: the First Schedule is for import items and the Second Schedule is for export-duty items. Statement 4 is also false because Section 2 refers to both the First and Second Schedules, not only the First Schedule.
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6Consider the following statements about the Central Government's power to amend the First Schedule under Section 11A of the Customs Tariff Act, 1975: 1. The Central Government may amend the First Schedule by notification in the Official Gazette if it is satisfied that public interest requires it. 2. A Section 11A amendment may alter the rates of customs duties specified in the First Schedule. 3. Every Section 11A notification must be laid before each House of Parliament for a total period of 30 days while Parliament is in session. 4. If both Houses agree that a Section 11A notification should not be issued, the notification thereafter has no effect, without prejudice to anything previously done under it. Which of the statements given above are correct?
7Consider the following statements about lower customs duty under a trade agreement: 1. Section 5 applies where a trade agreement provides a rate lower than that specified in the First Schedule. 2. The Central Government may make rules for determining whether an article is the produce or manufacture of the foreign country or territory. 3. If a question arises whether a trade agreement applies to a country or territory, the Central Government's decision is final. Which of the statements given above are correct?
8Consider the following statements about customs classification and valuation: 1. The First Schedule follows an international Harmonized System of commodity classification. 2. Ad-valorem duties are described by CBIC as the predominant mode of levy. 3. Customs duties are collected only on an ad-valorem basis; specific or specific-cum-ad-valorem duties are not used. 4. For ad-valorem duties, valuation is determined under Section 46 of the Customs Act, 1962. Which of the statements given above are correct?
9Consider the following statements about tariff classification in the Indian Customs Tariff: 1. The Indian Customs Tariff has 21 Sections and 98 Chapters. 2. Every four-digit code is called a heading and every six-digit code is called a subheading. 3. India has developed eight-digit level classification for specific statistical codes and monitoring trade volumes. Which of the statements given above are correct?
101. Section 11A permits the Central Government, in public interest, to amend the First Schedule by Official Gazette notification. 2. An amendment under Section 11A may alter the customs duty rates specified in the First Schedule. 3. A Section 11A notification is to be laid before each House of Parliament for a total period of thirty days. Which of the statements given above are correct?
11Consider the following statements about Section 14 valuation under the Customs Act, 1962: 1. Transaction value means the price actually paid or payable when goods are sold for export to India. 2. For imported goods, transaction value may include costs such as commissions, royalties, transport, insurance, loading, unloading and handling charges. 3. Tariff values for imported or export goods are fixed by State Governments through state gazette notifications. 4. When tariff values are fixed, duty is chargeable with reference to such tariff value. Which of the statements given above are correct?
121. Countervailing duty under Section 9 concerns subsidized articles. 2. Countervailing duty may exceed the amount of subsidy if the imported article affects a domestic industry. 3. A subsidy may include a government practice involving direct transfer of funds such as grants, loans or equity infusion. Which of the statements given above are correct?
13Consider the following statements about preferential rate of duty under Section 4 of the Customs Tariff Act, 1975: 1. If a preferential rate is available, the owner must claim it at the time of importation. 2. Preferential rate applies automatically even without origin determination under rules. 3. The Central Government may declare a country or territory as a preferential area by notification in the Official Gazette. Which of the statements given above are correct?
14Consider the following statements about re-export drawback under the Customs Act, 1962: 1. In the specified re-export situation, 98 per cent of the import duty may be repaid as drawback. 2. The goods must be entered for export within two years from the date of payment of duty on importation. 3. The goods need not be identified to the satisfaction of the customs authority for drawback. 4. For goods used after importation, the drawback rate is fixed by the importer without government notification. Which of the statements given above are correct?
15Consider the following statements about the duration and special application of anti-dumping duty under Section 9A of the Customs Tariff Act, 1975: 1. Anti-dumping duty normally ceases after five years unless revoked earlier. 2. On review, the Central Government may extend anti-dumping duty for a further period up to five years if cessation is likely to lead to continuation or recurrence of dumping and injury. 3. If a review initiated before expiry is not concluded before expiry, the anti-dumping duty may continue pending review for a further period not exceeding two years. 4. Anti-dumping duty under Section 9A is in addition to any other duty imposed under the Act or any other law. Which of the statements given above are correct?