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CMA Final · Indirect Tax Laws and Practice · Trade Facilitation Measures

India enters into an arrangement with the customs authority of a foreign country under Section 151B of the Customs Act, 1962. Which statement follows from the section regarding information received under such an arrangement?

Information received under a reciprocal arrangement may also be used as evidence in investigations and proceedings under the Customs Act, subject to any conditions, exceptions or qualifications in the notification issued under sub-section (2). It is not confined to risk analysis.

  1. AIt can be used only for risk analysis and never as evidence in proceedings
  2. BIt may also be used as evidence in investigations and proceedings under the Act, subject to the notification conditions under sub-section (2)Correct
  3. CIt becomes usable as evidence only after the foreign country's court confirms it
  4. DIt can be used as evidence only in proceedings in the contracting State

Explanation

Section 151B(3) says that, subject to sub-section (2), information received under sub-section (1) may also be used as evidence in investigations and proceedings under this Act. Hence it is not limited to risk analysis, and no foreign court confirmation is required.

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