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

Which of the following is NOT one of the stated purposes for which the Board may exercise power under section 143AA of the Customs Act, 1962?

Increasing the basic customs duty rate is not a purpose under section 143AA. The section permits measures for transparency in documentation, faster clearance or release, lower transaction cost, and a balance between customs control and facilitation of legitimate trade, none of which concerns changing duty rates.

  1. AMaintaining transparency in import and export documentation
  2. BExpediting clearance or release of goods entered for import or export
  3. CIncreasing the rate of basic customs duty on a class of goodsCorrect
  4. DReducing the transaction cost of clearance of importing or exporting goods

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 the rate of duty is not a listed purpose, because the section is about procedure and documentation, not about rates.

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