THE CUSTOMS TARIFF ACT, 1975
1. Under Section 3, when calculating the additional duty, the reference excise duty
must be:
A. The average of all rates across states.
B. The lowest duty applicable in any one state.
C. The highest duty applicable on a like article.
D. The standard national rate of excise.
Answer: C
2. Which of the following is excluded from value computation under Section 3(6)?
A. Basic customs duty
B. GST Compensation Cess
C. Safeguard duty under Section 8B
D. IGST under Section 3(7)
Answer: C
3. The preferential rate under Section 4 is applicable:
A. Automatically if country of origin qualifies
B. Only upon pre-import declaration
C. If claimed by importer at time of import
D. If confirmed by post-clearance verification
Answer: C
4. Section 6 empowers the Central Government to levy protective duties:
A. Without Parliament approval if Parliament is not in session
B. With prior consultation of DGFT
C. Only if WTO dispute arises
D. Upon recommendation by the Tariff Commission
Answer: D
5. Emergency import duty increases under Section 8A:
A. Are time-limited to six months
B. Cannot exceed MFN rates
C. Override Section 2 tariff rates
D. Require prior legislative approval
Answer: C
6. Under Section 9, countervailing duty can be imposed on:
A. Subsidized exports that harm Indian industry
B. All subsidized goods regardless of injury
C. Goods listed in WTO Schedule II
D. Imports above a certain invoice threshold
Answer: A
7. Which of the following does not fall under Section 9A (anti-dumping duty)?
A. Dumped goods at below fair market value
B. Loss of market share due to predatory pricing
C. Imports through bonded warehouses
D. Goods shown to cause injury to domestic industry
Answer: C
8. Section 9AA allows refund of anti-dumping duties if:
A. Imports are re-exported
B. No material injury is proved ex post
C. Domestic industry withdraws complaint
D. Goods are imported under a foreign arbitration order
Answer: B
9. Section 11A permits amendment of:
A. Export tariff only
B. First Schedule's rate column
C. First Schedule without altering duty rates
D. Any provision via executive order
Answer: C
10. Section 8B (Safeguard measures) may be invoked:
A. Only after industry-wide lockout
B. Only for developing countries
C. On sudden import surge causing injury
D. If imports breach WTO quotas
Answer: C
11. Which of the following will nullify a notification under Section 11A?
A. Presidental order
B. Judicial review
C. Parliament passes motion within 30 sitting days
D. Budget speech mentions the repeal
Answer: C
12. GST Compensation Cess on imports is calculated:
A. On invoice value only
B. Including basic customs and safeguard duties
C. On value as per Section 14 + BCD
D. Excluding all other duties and taxes
Answer: C
13. Section 3(1) value is based on:
A. FOB value
B. CIF value
C. Retail price in India
D. Landed cost + freight charges
Answer: B
14. Under Section 5, when can a lower rate be applied?
A. When approved by RBI
B. If prescribed in a trade agreement
C. If exporter agrees in writing
D. If WHO recommends so
Answer: B
15. Section 3(10) defines value for compensation cess based on:
A. Provisional clearance documents
B. Tariff value or Section 14 value
C. CIF plus octroi
D. Last resale value in India
Answer: B
16. Which one of the following is not true about Section 3(8A)?
A. It applies to goods in bonded warehouses
B. It uses the last transaction value
C. It includes GST paid at import
D. It overrides Section 14 valuation
Answer: C
17. A notification under Section 11 expires:
A. Automatically in one year
B. If not re-approved by Tariff Commission
C. If both Houses annul it
D. Once WTO recommends so
Answer: C
18. The Central Government’s power under Section 8:
A. Can override Parliament
B. Is limited to export duties
C. Is used to remove all duties temporarily
D. Applies to both import and export duties
Answer: B
19. Under which circumstance can Section 9B bar duty imposition?
A. If import is under SEZ norms
B. If a bilateral agreement restricts such imposition
C. If injury is not substantial
D. If domestic industry is less than 2 years old
Answer: B
20. Which of the following duties can never be included in computing the value for
IGST or Compensation Cess under Section 3?
A. Basic Customs Duty
B. Excise duty equivalent
C. Anti-dumping duty
D. Tariff value adjustment
Answer: C
