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Customs Tariff Act 1975: Key Provisions Explained

The Customs Tariff Act, 1975 outlines various duties and regulations related to customs, including additional duties, preferential rates, and protective duties. It specifies conditions under which these duties apply, such as the requirement for importers to claim preferential rates and the government's emergency powers to increase import duties. Key sections also address the computation of duties, refund processes, and legislative procedures for amendments.

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sivaram vishnukumar
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87 views2 pages

Customs Tariff Act 1975: Key Provisions Explained

The Customs Tariff Act, 1975 outlines various duties and regulations related to customs, including additional duties, preferential rates, and protective duties. It specifies conditions under which these duties apply, such as the requirement for importers to claim preferential rates and the government's emergency powers to increase import duties. Key sections also address the computation of duties, refund processes, and legislative procedures for amendments.

Uploaded by

sivaram vishnukumar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd

THE CUSTOMS TARIFF ACT, 1975

1. What is the nature of the “additional duty” under Section 3 of the Customs
Tariff Act, 1975?
A. A surcharge on customs duty
B. A duty equal to the excise duty on like goods produced in India
C. A VAT-equivalent duty
D. An entry tax on imports
Correct Answer: B

2. Under Section 4, when is the preferential rate of duty applicable?


A. Automatically when goods qualify for preference
B. Only when a claim is made by the importer at the time of import
C. When the customs officer deems it fit
D. As per the WTO MFN agreement
Correct Answer: B

3. Section 6 allows for protective duties under what condition?


A. On recommendation of the Finance Commission
B. If WTO guidelines are violated
C. On recommendation of the Tariff Commission and immediate necessity for
protecting domestic industry
D. Based on trade partner request
Correct Answer: C

4. Which of the following is not covered under “value” for the purpose of
additional duty computation under Section 3(6)?
A. Duty under Section 12 of the Customs Act, 1962
B. Safeguard duty under Sections 8B and 8C
C. Value as per Section 14(1)
D. Local tax levied on similar domestic goods
Correct Answer: B

5. Which Section grants the Central Government emergency power to increase import
duties?
A. Section 6
B. Section 8A
C. Section 3
D. Section 5
Correct Answer: B

6. What is the maximum duration allowed for safeguard duties under Section 8B?
A. 5 years
B. 10 years
C. Until next budget
D. 2 years
Correct Answer: B

7. Which statement about the Central Government’s power under Section 11A is true?
A. It can amend the First Schedule including customs duty rates.
B. It can amend the First Schedule but cannot alter the rate of duty.
C. It can amend both Schedules at will.
D. It cannot amend any Schedule.
Correct Answer: B

8. Which duties are imposed under Sections 9 and 9A?


A. Additional customs duties and IGST
B. Countervailing and anti-dumping duties
C. Entry tax and compensation cess
D. Preferential duty and standard duty
Correct Answer: B

9. Which section governs the refund of anti-dumping duty in special cases?


A. Section 9B
B. Section 9C
C. Section 9AA
D. Section 10
Correct Answer: C

10. To amend the First Schedule under Section 11A, what legislative step must
follow?
A. It must be approved by the Finance Commission
B. It must be ratified by both Houses of Parliament within 60 days
C. It must be laid before Parliament for 30 days and may be annulled or modified
D. It must be passed as a Bill in the Lok Sabha only
Correct Answer: C

Common questions

Powered by AI

The safeguard duty under Sections 8B and 8C is not covered under 'value' for the purpose of additional duty computation under Section 3(6).

The "additional duty" under Section 3 is a duty equal to the excise duty on like goods produced in India, acting as a countermeasure to domestic taxation disparities .

The refund of anti-dumping duty in special cases is governed by Section 9AA .

Sections 9 and 9A impose countervailing and anti-dumping duties .

Protective duties can be imposed on the recommendation of the Tariff Commission if there is an immediate necessity for protecting domestic industry .

Section 11A allows the Central Government to amend the First Schedule but it cannot alter the rate of duty .

If the First Schedule is amended under Section 11A, it must be laid before Parliament for 30 days and may be annulled or modified .

The maximum duration allowed for safeguard duties under Section 8B is 10 years .

Section 8A grants the Central Government the power to increase import duties in emergencies .

The preferential rate of duty under Section 4 is applicable only when a claim is made by the importer at the time of import .

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