CUSTOM MCQ’S

CHAPTER- 1 DEFINITION -----------CUSTOM LAW

Q1. Beneficial owner means any person
(a) on whose behalf the goods are being imported or exported
(b) who exercises effective control over the goods being imported or exported
(c) (a) or (b)
(d) None of the above
Ans. (C)

Q2. Person-in-charge means

(a) in relation to a vessel, the master of the vessel.
(b) In relation to an aircraft, the commander or the pilot in charge of the aircraft.
(c) In relation to a railway train, the conductor, guard or other person having the chief direction of the train.
(d) In relation to any other conveyance, the driver or other person in charge of the conveyance
(e) all of the above
Ans. (e) all of the above

Q3. The limit of exclusive economic zone of India, is from the nearest point of the baseline.
(A) 200 nautical miles
(B) 12 nautical miles
(C) 24 nautical miles
(D) 100 nautical miles
Ans. (A) 200 nautical miles

Q4. Exclusive economic zone extends to (200/300) nautical miles from the base line of
the coast. Beyond (100/200) nautical miles is High Seas.
(a) 200, 200
(b) 300, 100
(c)200, 100
(d) None of the above
Ans. (a) 200, 200

Q5. “Indian customs waters” means the [waters extending into the sea up to
(a) the limit of Exclusive Economic Zone
(b) 24 NM from baseline
(c) 12 NM from baseline
(d) None of the above
Ans. (a) the limit of Exclusive Economic Zone

Q6. Fill up the blanks:

(i) Duties of customs including export covered in .
Ans. (i) Entry No.83 of List I (Union List)

Q7. Exclusive Economic Zone extends to from the base line of coast.
Ans. (ii) 200 nautical miles
Q8. Which of the following is a taxable event for imported goods?
(A) Unloading of imported goods at the customs port
(B) Date of entry into Indian territorial waters
(C) Date of presentation of bill of entry
(D) Date on which the goods cross the customs barrier
Ans. (D) Date on which the goods cross the customs barrier

Q9. State whether each of the following is correct or incorrect:

Taxable event in case of import of goods, under customs, is the date of entry into Indian Territorial Waters.
Ans. Incorrect;

Q10. Which of these is/are not an adjudicating authority under Customs Act, 1962?
(a) Commissioner of Customs
(b) Principal Commissioner of Customs
(c) Commissioner (Appeals)
(d) Assistant Commissioner of Customs
(e) Tribunal
Ans. (c) Commissioner (Appeals) & (e) Tribunal

CHAPTER-2 & 3 -IMPORT PROCEDURE-TRANSPORTATION

Q1. Person-in-charge in the case of a vessel or an aircraft, deliver to the proper officer ............................. by
presenting electronically prior to the arrival] of the vessel or the aircraft, as the case may be, and in the case of a
vehicle, an import report within .................. after its arrival in the customs station
(a) an arrival manifest or import manifest, 12 hours
(b) an arrival manifest or import manifest, 24 hours
(c) import report, 12 hours (d) none of the above
Ans. (a) an arrival manifest or import manifest, 12 hours

Q2. an arrival manifest or import manifest or import report is not delivered to the proper officer within the time
specified then penalty levied upto
(a) 10,000
(b) 50,000
(c) 20,000
(d) none of the above
Ans. (b) 50,000

Q3. The person-in-charge of a conveyance that enters India from any place outside India or any other person as
may be specified by the Central Government by notification in the Official Gazette, shall deliver to the proper
officer —
(i) the passenger and crew arrival manifest before arrival in the case of an aircraft or a vessel and upon arrival
in the case of a vehicle; and
(ii) ,
in such form, containing such particulars, in such manner and within such time, as may be prescribed.

Ans. the passenger name record information of arriving passengers

Q4. Imported goods shall not be unloaded from, and export goods shall not be loaded on, any conveyance except
under the supervision of
(a) the proper officer
(b) importer himself
(c) any authorised person
(d) None of the above
Ans. (a) the proper officer
Q5. Ship arrives at port on 6 october 2018 (Saturday). Bill of Entry filed on 12 October, 2018. Determine late charges
(a) 25,000
(b) 15,000
(c) 10,000
(d) none of the above
Ans. Bill of entry must be filed within 1 day following the day (excluding holidays) on which the aircraft or vessel or
vehicle carrying the goods arrives at a customs station. Hence it must be filed before end of 8 October 2018. Delay
th
period = 4 days. Late charges = 5000 × 3 days + 10000 for 4 day = Rs 25,000
Q6. Match the following:
Column A Column B
1. White Colour BOE Import Export Code
2. IEC Home consumption
Ans
Column A Column B
1. White Colour BOE Home consumption

2. IEC Import Export Code

Q7. State with reasons whether the following is true or false.

The conveyances are not allowed to leave India without written permission from customs authorities.

Ans. True – as per sec 42 The person-in-charge of a conveyance which has brought any imported goods or has
loaded any export goods at a customs station shall not cause or permit the conveyance to depart from that customs
station until a written order to that effect has been given by the proper officer.

Q8. Bills of entry can be submitted .............. days prior to expected date of arrival of vessel.
Ans. 30 days

Q9. [The importer shall pay the import duty -

(a) on the date of presentation of the bill of entry in the case of ..................... ; or
(b) within one day (excluding holidays) from the date on which the bill of entry is returned to him by the proper
officer for payment of duty in the case of.........................; or
(c) in the case of ..................... under the proviso to sub-section (1), from such due date as may be specified by
rules made in this behalf,
(i) (a) self-assessment, (b) assessment, reassessment or provisional assessment (c) deferred payment
(ii) (a) self-assessment, (b) deferred payment (c) assessment, reassessment or provisional assessment
(iii) (a) deferred payment, (b) assessment, reassessment or provisional assessment (c) self-assessment
(iv) none of the above

Ans. (i) (a) self-assessment, (b) assessment, reassessment or provisional assessment (c) deferred payment

st
Q10. Determine due date in case of deferred payment of duty for goods for BOE returned for payment from 1 to
th
15 day of a month
th
(a) 16 of that month
st
(b) 1 of next month
(c) last day of month
(d) none of the above
th
Ans. (a) 16 of that month

Q11. Importer paying custom duty of .............. Or more per bill of entry, shall pay custom duty electronically
(a) 10,000
(b) 50,000
(c) 1,00,000
(d) none of the above
Ans. (a) 10,000

Q12. goods may pending clearance or removal, as the case may be, be permitted to be stored in a public warehouse
under section 49 for a period not exceeding
(a) 30 days
(b) 45 days
(c) 90 days
(d) none of the above
Ans. (a) 30 days
Q13. Every deposit made towards duty, interest, penalty, fee using authorised mode of payment shall, be credited to
(a) the electronic cash ledger
(b) the electronic credit ledger
(c) the electronic liability ledger
(d) none of the above
Ans. (a) the electronic cash ledger
 CHAPTER- 4 ---------- GOODS IN TRANSIT
Q1. where any goods imported in a conveyance and mentioned in the ........................ , as the case may
be, as for
transit in the same conveyance to any place outside India or to any customs station, the proper officer
may allow the goods and the conveyance to transit without payment of duty
Ans. arrival manifest, import manifest] or the import report

Q2. Where any goods imported into a customs station are intended for transhipment, ................... shall
be
presented to the proper officer in [such form and manner as may be prescribed]
Ans. a bill of transhipment

Chapter- 5---------- Basic concepts-CUSTOM ACT

1962
Q1. Which section of the Customs Act, 1962 provides for levy of Customs duty on import and export of
goods?

(a) Section 3

(b) Section 12

(c) Section 14

(d) Section 28

(e) Section 17
Ans. (b) Section 12

Q2. Basic Customs duty is levied under section of the Customs Act
Ans. Section 12

Q3. Goods as specified in Annexure (e.g Computer), manufactured in India and exported to country
other than Nepal & Bhutan and reimported into India for repairs or for reconditioning within
................................................................................................................................. years from the
date of
exportation will be exempt from custom duty, if re-exported within ....... year/years
(a) 10 and 1.
(b) 7 and 1.
(c) 10 and 3.
(d) 7 and 3.
Ans. (b) 7 and 1.

Q4. Mr. A manufactured and exported goods worth Rs 10,00,000 to Mr. B of UK on 1st January, 2018
and availed duty drawback of Rs 16,000. Mr. A imported the same goods on 8th February, 2018.
What will be the customs duty payable by Mr. A, if rate of basic customs duty is 10% and goods are
exempt from IGST and GST cess?
(a) 16,000
(b) 1,00,000
(c)1,10,000
(d) 1,26,000
Ans. (a) 16,000

Q5. Mr. X exported goods of Rs 1 lakh under bond without payment of IGST of Rs 12,000 but after
paying Export duty @ 8%. The said goods are rejected and returned within 3 months. Import duty @
10%, Social welfare surcharge @ 10%. On re-import, Mr. X liable to pay
(a) get refund of Rs 8000, Pay Rs 12,000,
(b) get refund of Rs 8000, Pay Rs 11,000,
(c) get refund of Rs 8000, Pay Rs 23,000,
(d) Pay Rs 12,000
Ans. (a) get refund of Rs 8000, Pay Rs 12,000

Q6. Value of imported goods Rs 900. BCD – 10%, SWS – 10%, IGST – Nil. Calculate Duty payable
(a) Nil
(b) 99
(c) 180
(d) none of the above
Ans. (a) Nil, since amount is less than Rs 100

Q7. an application for refund of export duty is made before the expiry of ............ from the date on which
the proper
officer makes an order for the clearance of the goods
(a) 6 months,
(b) (b) 12 months,
(c) 18 months,
(d) 24 months
Ans. (a) 6 months