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

Under Section 143AA of the Customs Act, 1962, the Board may prescribe a separate procedure or documentation for trade facilitation. On which of the following bases is the Board expressly empowered to do so?

The Board may prescribe separate procedure or documentation for a class of importers or exporters, for categories of goods, or based on modes of transport. The section does not restrict this to individual applicants, low-value goods or sea cargo, so only the first option is correct.

  1. AFor a class of importers or exporters, for categories of goods, or on the basis of the modes of transport of goodsCorrect
  2. BOnly for individual importers who have applied to the Board in writing for relief
  3. COnly for goods whose assessable value is below a limit fixed by the Board
  4. DOnly for goods imported by sea, since air and land cargo are excluded

Explanation

Section 143AA allows the Board to take measures or prescribe separate procedure or documentation for a class of importers or exporters, for categories of goods, or on the basis of the modes of transport of goods. It does not limit the power to individual applicants, a value ceiling or sea cargo. Hence the first option alone matches the text.

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