Customs Tariff MCQ — 93 Practice Questions with Answers

Q1. Consider 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?

Q2. Consider 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?

Q3. Consider 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?

Q4. Consider 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?

Q5. Consider 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?