CUSTOM MCQ

1. The rates at which duties of customs shall be levied under the Customs Act 1962 are specified in the
Firstand Second Schedules
a) True b) False
Answer- A

2. The first schedule enlist the goods liable to

a) Import Duty b) Export Duty

Answer- A

3. The second schedule enlist the goods liable

a) Import Duty b) Export Duty
toAnswer- B

4. Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not
exceeding % as is leviable under section 5 of Integrated Goods and Services Tax Act, 2017
on a like article on its supply in India, on the value of the imported article as determined under sub-
section (8) or sub section 8(A)
a) 20 b) 30
c) 40 d) 50
Answer- C

5. GST compensation cess is a compensation cess levied under section 8 of the Goods and Services Tax
(Compensation to State) Act, 2017. GST compensation cess is levied on intra-state supply of goods or
services and inter-state supply of goods or services to provide compensation to the States for loss of
revenue due to implementation of GST in India
a) True b) Fasle

Answer- A

6. Any article which is imported into India shall, in addition, be liable to the goods and services tax
compensation cess at such rate, as is leviable under section 8 of the Goods and Services Tax
(Compensation to States) Cess Act, 2017 on a like article on its supply in India, on the value of the
imported article as determined under sub-section (10) or ub section 10(A)
a) True b) Fasle

Answer- A

7. For the purposes of calculating the integrated tax on any imported article where such tax is leviable at
any percentage of its value, the value of the imported article shall, notwithstanding anything
containedin section 14 of the Customs Act, 1962, be the aggregate of
a) the value of the imported b) any duty of customs chargeable on that article under section 12 of
article determined under sub- the Customs Act, 1962, and any sum chargeable on that article
section (1) of section 14 of the under any law for the time being in force as an addition to, and in
Customs Act, 1962 or the tariff the same manner as, a duty of customs, but does not include the
value of such article fixed integrated tax referred to in section 3(7) of the Customs Tariff
under sub-section (2) of that Act,
section, as the case may be 1975 or the goods and services tax compensation cess referred to in
section 3(9) of the Customs Tariff Act, 1975
c)Both A&B d) None of the above
Answer- C
8. Tariff value in relation to any goods, means the tariff value fixed in respect thereof under sub-section
(2) of section 14
a) True b) False

Answer- A

9. Any article which is imported into India is also liable to a duty equal to the excise duty for the time
beingleviable on a like article if produced or manufactured in India. This duty is called as
a) Additional duty b) Countervailing Duty
c) Special duty d) None of the above
Answer- A

10. Special additional duty under sub-section (3) is levied to counter balance the excise duty leviable on
raw materials, components and ingredients of the same nature as, or similar to those, used in the
productionor manufacture of the imported article. This duty is called as
a) Additional duty b) Countervailing Duty
c) Special duty d) None of the above
Answer- B

11. The maximum rate of additional duty is @ %

a) 5 b) 4
c) 3 d)2
Answer- B
12. are those which are levied for the purpose of raising customs revenue.
a) Revenue duty b) Protective Duty

Answer- A

13. are intended to give protection to indigenous industries. If resort to protective duties is not
made there could be a glut of cheap imported articles in the market making the indigenous goods
unattractive.
a) Revenue duty b) Protective Duty

Answer- B

14. The protective duties are levied by the upon the recommendation made to it by the
TariffCommission and upon it being satisfied that circumstances exist which render it necessary to take
immediate action to provide protection to any industry established in India
a) board b) Supreme Court
c) Central Government d) None of the above
Answer- C

15. The protective duty shall be effective only upto and inclusive of the date if any, specified in the First
Schedule
a) True b) False

Answer- A

16. If which of the following conditions are satisfied, the Central Government may provide for the
enhancement of the import duty ?
a) The goods should be specified in the First b) The Central Government is satisfied that
Schedule circumstances exist, which render it necessary
forthe enhancement of import duties
 c) Either A or B d) Both A&B
Answer- D

17. Central Government can impose the safeguard duty if it is satisfied that
a) Any article is imported into India in increased b) Such increased importation is causing or
quantities threatening to cause serious injury to domestic
industry
c) Either A or B d) Both A&B
Answer- D

18. The safeguard duty is imposed for the purpose of protecting the interests of any domestic industry in
India aiming to make it more competitive
a) True b) False

Answer- A
19. Safeguard duty is product specific i.e. the safeguard duty is applicable only for certain articles in respect
of which it is imposed
a) True b) False

Answer- A

20. The duty imposed under section 8B shall be in force for a period of years from the date
ofits imposition
a) 2 b) 3
c) 4 d) 5
Answer- C

21. The total period of levy of safeguard duty is restricted to years.

a) 5 b) 10
c) 6 d) 7
Answer- B

22. Articles originating from developing country, so long as the share of imports of that article from that
country does not exceed % of the total imports of that article into India
a) 2 b) 3
c) 4 d) 5
Answer- B

23. Articles originating from more than one developing country, so long as the aggregate of imports from
developing countries each with less than 3% import share taken together does not exceed
%of the total imports of that article into India
a) 2 b) 3
c) 9 d) 5
Answer- C

24. Safeguard duty shall not apply to articles imported by a 100% EOU/unit in a SEZ unless.
a) specifically made b) the article imported is either cleared as such into DTA or used in the
applicable manufacture of any goods that are cleared into DTA and in such cases
safeguard duty shall be levied on that portion of the article so cleared or so
used as was leviable when it was imported into India
c)Either A or B d) Both A&B
Answer- C
 25. This provisional duty may be imposed on the basis of preliminary determination that increased imports
have caused or threatened to cause serious injury to a domestic industry
a) True b) False

Answer- A

26. The provisional duty shall be in force for a maximum period of days from the date of
itsimposition
a) 50 b) 100
c) 200 d) 300
Answer- C

27. The countervailing duty on subsidized articles is imposed if which of the following conditions
aresatisfied?
a) Any country or territory, directly or indirectly, pays b) The importation may/may not directly be
or bestows subsidy upon the manufacture or from the country of
manufacture/production
production or exportation of any article. Such subsidy
includes subsidy on transportation of such article
c) The article, may be in the same condition as when d) All the above
exported from the country of manufacture or
production or may be changed in condition by
manufacture, production or otherwise
Answer- D

28. Countervailing duty shall not be levied unless it is determined that

a) The subsidy relates to export performance b)The subsidy relates to the use of domestic
goods over imported goods in the export article
c) The subsidy has been conferred on a limited d) All the above
number of persons engaged in the manufacture,
production or export of articles
Answer- D

29. Unless revoked earlier, the duty imposed under section 9 shall be in force for a period of
years from the date of its imposition
a) 3 b) 4
c) 5 d) 10
Answer- C

30. If the review is not completed before the expiry of the period of imposition (5 years) then the duty
maycontinue to remain in force pending the outcome of such review for a further period not
exceeding
year
a) 3 b) 1
c) 5 d) 10
Answer- B
31. The retrospective date from which the duty is payable shall not be beyond days from the date of
notification
a) 15 b) 30
c) 90 d) 120
Answer- C

32. When the export price of a product imported into India is less than the Normal Value of ‘like
articles’sold in the domestic market of the exporter, it is known as dumping
a) True b) False
33. Anti-dumping action can be taken only when there is an Indian industry which produces “like articles”
when compared to the allegedly dumped imported goods
a) True b) False

Answer- A

34. in relation to an article, it means the difference between its export price and normal
value
a) Margin of dumping b) Injury margin

Answer- A

35. margin is the margin adequate to remove the injury to the domestic industry
a) Margin of dumping b) Injury margin

Answer- B

36. Where the Central Government, on such inquiry as it may consider necessary, is of the opinion that
circumvention of anti-dumping duty has taken place, by which of the following ways?
a) by altering the description or name or b) by import of such article in an unassembled or
composition of the article subject to such anti- disassembled form
dumping duty
c) by changing the country of its origin or export d) All the above
Answer- D

37. Notwithstanding anything contained in sub-section (1) and sub-section (2), a notification issued under
sub-section (1) or any anti-dumping duty imposed under sub-section (2), shall not apply to articles
imported by a hundred per cent, export-oriented undertaking unless
a) specifically made b) the article imported is either cleared as such into the DTA or used
applicable in such in the manufacture of any goods that are cleared into the DTA, and
notifications or such in such cases anti-dumping duty shall be levied on that portion of
impositions, as the case may the article so cleared or so used as was leviable when it was
be imported into India
c) Either A or B d) Both A&B
Answer- C

38. The anti-dumping duty imposed under this section shall, unless revoked earlier, cease to have effect on
the expiry of five years from the date of such imposition
a) True b) False

Answer- A

39. The margin of dumping in relation to an article, exported by an exporter or producer, under inquiry
under sub-section (6) shall be determined on the basis of records concerning normal value and export
price maintained, and information provided, by such exporter or producer.
a) True b) False
40. Countervailing and anti-dumping duties shall not be levied just because such articles are exempt from
duties or taxes borne by like articles when meant for consumption in the country of origin or
exportationor by reasons of refund of such duties or taxes
a) True b) False

Answer- A
41. The provisional countervailing and anti-dumping duties shall not be levied on any article imported
from specified countries unless preliminary findings have been made of subsidy or dumping and
consequent injury to domestic industry and a further determination has also been made that a duty is
necessary to prevent injury being caused during the investigation
a) True b) False

Answer- A

42. An appeal filed under section 9B shall be accompanied by a fee of rupees:

a) 10,000 b) 15,000
c) 50,000 d) 25,000
Answer- B

43. The SWS on imported goods are in addition to any other duties of customs or tax or cess chargeable on
such goods, under the Customs Act, 1962 or any other law for the time being in force
a) True b) False

Answer- A

Chapter 15 : Valuation under Customs

1. As per section 14 of customs act, 1962, transaction value shall also include in addition to the price,
anyamount paid or payable for costs and services, including

a) commissions and brokerage b) engineering

c) royalties and licence fees d) all of the above
Answer- d

2. As per section 14 of customs act, 1962, transaction value shall also include in addition to the price,
anyamount paid or payable for costs and services, including

a) costs of transportation to the place of b) insurance

importation
c) design work d) all of the above
Answer- d

3. As per section 14 of customs act, 1962, transaction value shall not include the following

a) handling charges at exporter’s port b) loading and unloading charges at exporter’s port
c) insurance d) buying agent’s commission
Answer-d

4. As per section 14 of customs act, 1962 transaction value will not apply in which of the following cases

a) The price actually paid or payable for thegoods b) Where the buyer and seller of the goods are
related
c) Price is the sole consideration for the sale d) none of the above
Answer- b

5. For imported goods, the conversion in value shall be done with reference to the rate of exchange
prevalent on the date of filing of

a) bill of entry under section 46 b) shipping bill (vessel or aircraft) under section 50.
c) bill of export (vehicle) under section 50. d) either b or c
Answer- a
6. For export goods, the conversion in value shall be done with reference to the rate of exchange prevalent
on the date of filing

a) bill of entry under section 46 b) shipping bill (vessel or aircraft) under section
50.
c) bill of export (vehicle) under section 50. d) either b or c
Answer- d

7. For the purpose of customs valuation, “rate of exchange” means the rate of exchange notified by
shall be taken into account

a) the Foreign Exchange Dealers’ Association of India b) CBIC

c) the Reserve Bank of India d) none of the above
Answer-b

8. The CBIC notifies the rates periodically, and there are separate rates for imported goods and
exportgoods .the rate for imported goods are

a) buying rate b) selling rate

c) average rate d) none of the above
Answer-b

9. The CBIC notifies the rates periodically, and there are separate rates for imported goods and
exportgoods .the rate for export goods are
a) buying rate b) selling rate
c) average rate d) none of the above
Answer-a

10. Sub-section (2) of section 14 provides that the Board may fix for any class of imported
goods or export goods, having regard to the trend of value of such or like goods by notification in the
Official Gazette if it is satisfied that it is necessary to do so.
a) market value b) MRP
c) transaction value d) tariff value
Answer-d

11. “Goods of the same class or kind”, means imported goods that are within a group or range of imported
goods produced by a particular industry or industrial sector and includes

a) identical goods b) similar goods

c) both a & b d) either a or b
Answer-c

12. “identical goods” means imported goods which are same in all respects, including as the
goodsbeing valued except for minor differences in appearance that do not affect the value of the goods

a) physical characteristics b) quality

c) reputation d) all of the above
Answer- d

13. “Identical goods” means imported goods

a) which are same in all respects, including b) produced in the country in which the goods
physical characteristics, quality and reputation as being valued were produced
the goods being valued
 c) produced by the same person who produced d) all of the above
the goods
Answer- d

14. The term “produced” includes

a) grown b) manufactured
c) mined d) all of the above
Answer- d

15. The term “similar goods” means imported goods

a) which although not alike in all respects, have like b) produced in the country in which the
characteristics and like component materials which goods being valued were produced
enable them to perform the same functions
c) produced by the same person who produced the d) all of the above
goods being valued
Answer-d
16. For the purpose of these customs valuation (determination of value of imported goods) rules,
2007,persons shall be deemed to be “related” only if –

a)they are officers or directors of one b) they are legally recognized partners in
another’s businesses business
c) they are employer and employee d) all of the above
Answer-d

17. For the purpose of these customs valuation (determination of value of imported goods) rules,
2007,persons shall be deemed to be “related” only if –

a) any person directly or indirectly owns, controls or holds five per b) they are members
cent or more of the outstanding voting stock or shares of both of of the same family
them
c) they are employer and employee d) all of the above
Answer-d

18. For the purpose of these customs valuation (determination of value of imported goods) rules,
2007,persons shall be deemed to be “related” only if –

a) one of them directly or indirectly controls b) both of them are directly or indirectly
the other controlled by a third person
c) together they directly or indirectly control d) all of the above
a third person
Answer-d

19. Which among the following are not related persons as per customs valuation (determination of value
ofimported goods) rules, 2007?

a) one of them directly or indirectly controls b)both of them are directly or indirectly controlled by
the other a third person
c) together they directly or indirectly control d) any person directly or indirectly owns, controls or
a third person holds two per cent or more of the outstanding voting
stock or shares of both of them
Answer- d

20. For the purpose of these customs valuation (determination of value of imported goods) rules,
 2007,persons shall be deemed to be “related” only if –

a) together they directly or b) persons having business interest to each other , one
indirectlycontrol a third person of them are sole agent / sole distributor / sole
concessionaire of other
c) such persons are employer and employee d) all of the above
Answer-d

21. As per rule 3 customs valuation (determination of value of imported goods) rules, 2007,
transactionvalue will be accepted for customs purpose, if conditions are fulfilled.
i. there is no restriction to importer about use of goods
ii. Consideration is determinable
iii. Subsequent resale proceeds do not accrue to seller
iv. Buyer and seller are not related
a) only (i) is to be fulfilled b) only (ii) is to be fulfilled
c) (i) (ii) (iii) is to be fulfilled d) (i) (ii) (iii) (iv) is to be fulfilled
Answer- d

22. In applying rule 4, the transaction value of identical goods is the goods being valued shall be used to
determine the value of imported goods is at the

a) same commercial level b) same quantity

c) both a & b d) either a or b
Answer-c

23. In applying rule 4, if more than one transaction value of identical goods is found, shall be
usedto determine the value of imported goods

a) highest of such value b) lowest of such value

c) average of such value d) none of the above
Answer- b

24. As per rule 7, while determining unit price, which of the following deductions have to be made?

a) commission usually paid or agreed to be paid b) the additions usually made for profits
c) general expenses in connection with sales in d) all of the above
India
Answer-d

25. As per rule 7, while determining unit price, which of the following deductions have to be made?

a) customs duties and other taxes payable in India b) costs of transport and insurance
c) general expenses in connection with sales in India d) all of the above
Answer- d

26. If neither the imported goods nor identical nor similar imported goods are sold at or about the same
time of importation of the goods being valued, the value of imported goods shall, be based on the unit
price at which the imported goods or identical or similar imported goods are sold in India, at the
earliestdate after importation but before the expiry of after such importation

a) 45 days b) 60 days
c) 90 days d) 120 days
Answer- c

27. The value of imported goods shall be based on a computed value, which shall consist of the sum of
 a) cost or value of materials b) general expenses
c) amount for profit d) all of the above
Answer- d

28. The value of imported goods shall be based on a computed value, which shall consist of the sum of

a) Expenses under sub-rule (2) of rule 10. b) cost of fabrication

c) other processing employed in production d) all of the above
Answer- d

29. Where the value of imported goods cannot be determined under the provisions of any of the rules, the
value shall be determined as per

a) rule 7 b) rule 8
c) rule 9 d) none of the above
Answer- c

30. No value shall be determined under the provisions of rule 9 on the basis of

a) arbitrary or fictitious values b) minimum customs values

c) the selling price in India of the goods produced in India d) all of the above
Answer-d

31. No value shall be determined under the provisions of rule 9 on the basis of

a) the price of the goods on the domestic market of the b) the price of the goods for the export
country of exportation to a country other than India
c) a system which provides for the acceptance for customs d) all of the above
purposes of the highest of the two alternative values
Answer-d

32. As per rule 10 in determining the transaction value, there shall be added to the price actually paid or
payable for the imported goods the following to the extent they are incurred by the buyer but are not
included in the price actually paid or payable for the imported goods, namely
a) commissions and brokerage, except buying commissions b) the cost of containers
c) the cost of packing d) all of the above
Answer- d
33. State which of the following are to be added to transaction value as per rule 10(1) in the following case
Where the value, apportioned of the following goods and services where supplied directly or
indirectlyby the buyer free of charge or at reduced cost for use in connection with the production
and sale forexport of imported goods (not been included in the price)
a) materials, components, parts and similar items b) tools, dies, moulds and similar items
c) materials consumed in the production of the d) all of the above
imported goods
Answer- d

34. State which of the following are to be added to transaction value as per rule 10(1) in the following case
Where the value, apportioned of the following goods and services where supplied directly or
indirectlyby the buyer free of charge or at reduced cost for use in connection with the production
and sale forexport of imported goods (not been included in the price)
a) Engineering, development, art work, b) Design work, and plans and sketches
undertaken elsewhere than in India and undertaken elsewhere than in India and
necessary for the production of the imported necessary for the production of the imported
goods. goods.
 c) materials consumed in the production of the d) all of the above
imported goods
Answer- d

35. State which of the following are to be added to transaction value as per rule 10(1) to the extent they are
incurred by the buyer but not included in the price
a) royalties and licence fees related to the imported b) The value of any part of the proceeds of
goods that the buyer is required to pay, directly or any subsequent resale, disposal or use of the
indirectly, as a condition of the sale of the goods imported goods that accrues, directly or
being valued indirectly, to the seller
c) all other payments actually made or to be made as d) all of the above
a condition of sale of the imported goods, by the
buyer to the seller, or by the buyer to a third party to
satisfy an obligation of the seller
Answer- d

36. State whether the following costs should be added to the transaction value
i. Dismantling charges for removing the second hand plant at the foreign supplier’s place and
shippingto the Indian importer
ii. Training charges paid to supplier, for imparting training to the indian company’s personnel , on
howto use the equipment
a) both i & ii are to be included b) both i & ii are to be excluded
c) I – includible ii- excludible d) I – excludible ii- includible
Answer- a

37. State whether the following costs should be added to the transaction value
i) Fee charged by foreign supplier for supervision of erection and commissioning of imported plant
inIndia
ii) Stevedoring charges or uploading charges
a) both i & ii are to be included b) both i & ii are to be excluded
c) I – includible ii- excludible d) I – excludible ii- includible
Answer- b

38. State whether the following costs should be added to the transaction value
i) Lump sum payment and annual royalty for transfer of technical know-how for manufacturing
goodsusing imported plant
ii) ) Lump sum payment and annual royalty for transfer of technical know-how for manufacturing
goodsusing imported plant are incurred as a condition of sale
a) both i & ii are to be included b) both i & ii are to be excluded
c) I – includible ii- excludible d) I – excludible ii- includible
Answer- d

39. State whether the following costs should be added to the transaction value
i) Payment for tools, dies and moulds (imported along with the plant) for use in connection with
themanufacture of excisable goods on successful commissioning of the imported plant
ii) Service charges paid to canalizing agent (he purchases goods from overseas seller and sells to India)
a) both i & ii are to be included b) both i & ii are to be excluded
c) I – includible ii- excludible d) I – excludible ii- includible
Answer- a

40. Where the cost of transport of the imported goods to the place of importation is not ascertainable, then
such cost shall be

a) 20% of customs FOB value b) 1.125% of customs FOB value

 c) actual cost d) actual cost (or) 20% of customs FOB
value, whichever is lower
Answer-a

41. The loading, unloading and handling charges associated with the delivery of the imported goods at the
place of importation shall be

a) 1% of customs FOB value b) cost of transport

c) cost of insurance d) 0
Answer- d

42. Where the cost of insurance is not ascertainable, then such cost shall be

a) 20% of customs FOB value b) 1.125% of customs FOB value

c) actual cost d) actual cost (or) 20% of customs FOB value, whichever is lower
Answer-b

43. In case of goods imported by air, where the cost of transport is ascertainable, then such cost shall be

a) 20% of customs FOB value b) 1.125% of customs FOB value

c) actual cost d) actual cost (or) 20% of customs FOB value, whichever is lower
Answer-d
44. Where the free on board value of the goods is not ascertainable, the cost of transport of the imported
goods to the place of importation, shall be

a) 20% of customs FOB value b) 1.125% of ( customs FOB value + cost of freight)
c) 20% of cost of insurance d) 20% of ( customs FOB value + cost of insurance)
Answer-d

45. Where the free on board value of the goods is not ascertainable, the cost of insurance, shall be

a) 1.125% of customs FOB value b) 1.125% of ( customs FOB value + cost of freight)
c) 1.125% of cost of insurance d) 20% of ( customs FOB value + cost of insurance)
Answer-b

46. The cost of transport of the imported goods includes

a) ship demurrage charges b) lighterage/barge charges

c) both a & b d) none of the above
Answer- c

47. The value of export goods shall be the

a) transaction value b) market value

c) MRP d) none of the above
Answer- a

48. The transaction value shall be accepted even where the buyer and seller are related, provided that the
relationship has not influenced the price

a) yes b) no
Answer-a

49. The value of the export goods shall be based on the transaction value of goods of
 a)goods of like kind and quality b) exported at or about the same time to
other buyers
c) in the same destination country of d) all of the above
importatio
n
Answer- d

50. In determining the value of export goods in the absence same destination country of importation, the
proper officer shall make such adjustments as appear to him reasonable, taking into consideration the
relevant factors including

a) difference in the dates of exportation and b) difference in composition, quality and design
difference in commercial levels and quantity between the goods to be assessed and the goods
levels with which they are being compared
c) difference in domestic freight and insurance d) all of the above
charges depending on the place of exportation
Answer-d

51. Computed value, shall include the following

a) cost of production, manufacture or b) charges, if any, for the design or brand

processing of export goods
c) an amount towards profit d) all of the above
Answer- d

DRAWBACK

1. Where the goods are sent back as such to the foreign country owing to which of the following reasonsit
is considered as re-exportation?
a) Goods not conforming to the specification of the b) Goods not permitted to be imported
order into the country on account of trade-
restriction
c) Goods after being imported are temporarily retained d) All the above
in the country and later taken out of the country. In
other words, the very objective of the importation was
limited to temporary retention in India
Answer- D

2. Under Section 74(1) when goods capable of being easily identified, which have been imported into
Indiaand upon which any duty has been paid on importation % of duty be paid back.
a) 50 100
c) 98 d) 48
Answer- C

3. Which of the following conditions are to be satisfied for the purpose of section 74(1)?
a) the goods are identified to the satisfaction of b) the goods are entered for export within two
the Assistant Commissioner of Customs or years from the date of payment of duty on the
Deputy Commissioner of Customs as the goods importation thereof
which were imported
c) Both A & B d) Either A or B
 Answer- C

4. Which of the following conditions are to be satisfied for the purpose of section 74(3)?
a) provide for the manner in which the identity of b) specify the goods which shall be deemed
goods imported in different consignments which are to be not capable of being easily identified
ordinarily stored together in bulk, may be established

c) provide for the manner and the time within which a d) All the above
claim for payment of drawback is to be filed
Answer- D

5. Under sub-clause (b) of section 74(1), it has been provided that such imported goods should be entered
for export within years from the date of payment of duty on the importation.
a) 1 b) 2
c) 3 d) 4
Answer- B

6. The authority who has to be satisfied u/s 74 is

a) the Assistant Commissioner b) the Deputy Commissioner
c) Both A&B d) Either A or B
Answer- D
7. As per notification, no drawback of import duty will be allowed in respect of which of the following
goods, if they have been used after their importation in India?
a) Wearing Apparel b) Tea Chests
c) Exposed cinematograph films passed by Board d) All the above
of Film Censors in India
Answer- D

8. If the length of the period between the date of clearance for home consumption and the date when the
goods are placed under the customs control for export is not more than 3 months then the percentage
of import duty to be paid as drawback is %
a) 95 b) 85
c) 75 d) 70
Answer- A

9. If the length of the period between the date of clearance for home consumption and the date when the
goods are placed under the customs control for export more than 3 months but is not more than 6
months then the percentage of import duty to be paid as drawback is %
a) 95 b) 85
c) 75 d) 70
Answer- B

10. If the length of the period between the date of clearance for home consumption and the date when the
goods are placed under the customs control for export more than 6 months but is not more than 9
months then the percentage of import duty to be paid as drawback is %
a) 95 b) 85
c) 75 d) 70
Answer- C

11. If the length of the period between the date of clearance for home consumption and the date when the
goods are placed under the customs control for export more than 9 months but is not more than 12
months then the percentage of import duty to be paid as drawback is %
a) 95 b) 85
c) 75 d) 70
Answer- D
12. If the length of the period between the date of clearance for home consumption and the date when the
goods are placed under the customs control for export more than 12 months but is not more than 15
months then the percentage of import duty to be paid as drawback is %
a) Nil b) 85
c) 65 d) 60
Answer- C

13. If the length of the period between the date of clearance for home consumption and the date when the
goods are placed under the customs control for export more than 15 months but is not more than 18
months then the percentage of import duty to be paid as drawback is %
a) 95 b) 85
c) 65 d) 60
nswer- D

14. If the length of the period between the date of clearance for home consumption and the date when the
goods are placed under the customs control for export more than 18 months then the percentage of
import duty to be paid as drawback is %
a) Nil b) 85
c) 65 d) 60
Answer- A

15. If the car or specified goods are re-exported immediately % of the duty paid is refundable.
a) 98 b) 85
c) 65 d) 60
Answer- A

16. Percentage of reduction of the drawback is related to use of the motor vehicle per quarter for 1st year is
-% per quarter or part thereof
a) 4 b) 3
c)2.5 d) 2
Answer- A

17. Percentage of reduction of the drawback is related to use of the motor vehicle per quarter for 2nd year is
-% per quarter or part thereof
a) 4 b) 3
c)2.5 d) 2
Answer- B

18. Percentage of reduction of the drawback is related to use of the motor vehicle per quarter for 3rd year is
-% per quarter or part thereof
a) 4 b) 3
c)2.5 d) 2
Answer- C

19. Percentage of reduction of the drawback is related to use of the motor vehicle per quarter for 4th year is
-% per quarter or part thereof
a) 4 b) 3
c)2.5 d) 2
Answer- D

20. No drawback shall be allowed if motor car or goods have been used for more than years
a) 4 b) 3
c)5 d) 2
 Answer- A

21. CBIC has clarified that safeguard duties, anti-dumping duties and countervailing duties are rebatable
as drawback in terms of section of the Customs Act
a) 74 b) 75
c) 76 d) 77
Answer- B

22. In case the claim u/s 75 form is not complete in all respects, the exporter shall be informed of the
deficiencies therein within days by a deficiency memo and such claim shall be deemed not to
have been received
a) 7 b) 10
c) 15 d) 30
Answer- C

23. When the exporter complies with the requirements specified in deficiency memo within days, he shall
be issued an acknowledgement
a) 7 b) 10
c) 15 d) 30
Answer- D

24. In the case of exports other than by post, the exporter shall at the time of export of the goods state on
the shipping bill or bill of export, the description, quantity and such other particulars as are necessary
fordeciding whether the goods are entitled to drawback under section 74 and make a declaration on the
relevant shipping bill or bill of export that
a) the export is being made under a claim for b) that the duties of customs were paid on the
drawback under section 74 of the Customs Act goods imported
c) that the goods imported were not taken into d) All the above
use after importation or that the goods were
taken in use
Answer- D

25. Claim under section 75A to be filed within days from the date on which an order
permitting clearance and loading of goods for exportation under section 51 is made by proper officer of
customs
a) 10 days b) 15 days
c) 7 days d) 30 days
Answer- D

26. The period of extension for section 75A claim by AC or DC is months upon prescribed fee
of1% of FOB value o exports pr Rs 1,000 which is less
a) 2 b) 3
c) 4 d) 5
Answer- B

27. The period of extension for section 75A claim by Principal Commissioner or Commissioner is 6 months
upon prescribed fee of % of FOB value o exports pr Rs 2,000 which is less
a) 2 b) 3
c) 4 d) 5
Answer- AIn case of incomplete claim/claim without the specified documents, such claim shall be
returned to the claimant with the deficiency memo within days of submission and shall be deemed not to
have been filed.
a) 7 b) 10
c) 15 d) 30
Answer- C
28. Which of the following conditions to be satisfied under section 75?
a) The goods exported are entirely different from b) The input could be either imported goods on
the inputs which duty of customs has been paid or
indigenous goods on which central excise duty
has been paid
c) The existence of the imported/indigenous d) All the above
excise duty paid goods in the final product is not
capable of easy verification at the point of export
Answer- D

29. Which of the following conditions to be satisfied under section 75?

a) The goods, namely the inputs might have b) The quantity of inputs per piece of final
undergone changes in physical shape, property product may not be uniform and may not also be
etc capable of verification at the time of exportation
c) The existence of the imported/indigenous d) All the above
excise duty paid goods in the final product is not
capable of easy verification at the point of export
Answer- D

30. Sub-section (1) of section 75 provides that where it appears to the Central Government that in respect
ofgood of any class or description manufactured, processed or on which any operation has been carried
out in India, being a drawback should be allowed of the duties of customs chargeable
under this Act
a) the goods have been entered for export and b) the goods have been entered for export by post
an order permitting the clearance and holding under clause (a) of Section 84 and an order
thereof for exploration has been made under permitting clearance for exportation has been
section 51 by the proper officer made by the proper officer
c) Both A&B d) Either A or B
Answer- D

31. It has been prescribed under proviso to section 75(1) of the Customs Act that no drawback of duty shall
be allowed under this section if.
a) the export value of the finished goods or the b) the export value is not more than such
class of goods is less than the value of the percentage of the value of the imported
imported material used in the manufacture or
materials used in the manufacture or processing
processing of such goods or carrying out any
operation on such goods or class of goods of such goods or carrying out any operation on
such goods or class of goods as may be notified by
the Central Government
c) any drawback has been allowed on any goods d) All the above
and the sale proceeds in respect of such goods
are not received by or on behalf of the exporter
in India within the time allowed under the
Foreign Exchange Management Act (FEMA)
Answer- D

32. No drawback is allowed in the case which of the following?

a) Packing materials for export of blended tea, b) Goods manufactured out of duty free materials
except tea chests
c) Jute batching oil used in manufacture jute d) All the above
yarn, twine etc
Answer- D
 33. In determining the amount or rate of drawback under this rule, the Central Government shall have
regard to .
a) the average quantity or value of each class or b) the average quantity or value of the
description of the materials from which a particular class imported materials or excisable
of goods is ordinarily produced or manufactured in India
materials used for production or
manufacture in India of a particular class
of goods
c) the average amount of duties paid on imported d) All the above
materials or excisable materials used in the
manufacture of semis, components and intermediate
products which are used in the manufacture of goods
Answer- D

34. In determining the amount or rate of drawback under this rule, the Central Government shall have
regard to .
a) the average amount of duties paid on b) the average amount of duties paid on
materials wasted in the process of manufacture imported materials or excisable materials used
and catalytic agents for containing or, packing the export goods
c) any other information which the Central d) All the above
Government may consider relevant or useful for
the purpose
Answer- D

35. Where no drawback is determined, the manufacturer/exporter has to apply for drawback within month
a) 2 b) 3
c) 4 d) 5
Answer- B

36. Where no drawback is determined, the manufacturer/exporter has to apply for drawback within 3
months seeking a brand rate from the Government giving all date and information about use of inputs,
manufacture etc.
a) is less than the value of the imported materials b) is not more than such percentage of the value
used in the manufacture of such goods or class of of the imported materials used in the
goods manufacture of such goods or class of goods as
the Central Government may, by notification
inthe Official Gazette, specify in this behalf
c) Either A or B d) Both A&B
Answer- C

37. The upper limit of drawback money or rate determined under rule 3 should not exceed one third of the
market price of the export product.
a) True b) False

Answer- A

38. Supplementary claims can be made in prescribed Form within months.

a) 2 b) 3
c) 4 d) 5
Answer- B

39. Where any drawback payable to a claimant under section 74 or 75 is not paid within a period of
month from the date of filing a claim for payment of such drawback, there shall be paid to the
claimant, in addition to the amount of drawback, interest at the rate fixed under section 27A from the date
after the expiry of the said period of one month till the date of payment of such drawback.
 a) 5 b) 2
c) 1 d)10
Answer- C

40. Where any drawback has been paid to the claimant erroneously or it becomes otherwise recoverable
under this Act or the Rules, the claimant shall within a period of months from the date
of demand, pay in addition to the said amount of drawback, interest at the rate fixed under section
28AA and the amount of interest shall be calculated for the period beginning from the date of
payment ofsuch drawback to the claimant till the date of recovery of such drawback.
a) 5 b) 2
c) 1 d)10
Answer- B

41. Notwithstanding anything herein before contained, no drawback shall be allowed in respect of any
goods, the market price of which is less than the amount of drawback due thereon where the amount of
drawback in respect of any goods is less than rupees.
a) 100 b) 50
c) 1,000 d) 500
Answer- B