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

The Board issues a simplified documentation procedure under Section 143AA for importers of a certain category of goods arriving by air. Which stated purpose is NOT one of the purposes listed in Section 143AA for taking such measures?

Raising the customs duty rate to increase revenue is not a purpose under Section 143AA. The section lists transparency in documentation, expediting clearance, reducing transaction cost, and balancing customs control with facilitation of legitimate trade.

  1. AMaintain transparency in import and export documentation
  2. BExpedite clearance or release of goods entered for import or export
  3. CReduce the transaction cost of clearance of goods
  4. DIncrease the rate of customs duty on the category of goods to raise revenueCorrect

Explanation

Section 143AA lists four purposes: transparency in documentation, expediting clearance or release, reducing transaction cost, and maintaining balance between customs control and facilitation of legitimate trade. Raising duty rates is not among them, so that option is the one that is not a listed purpose.

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