UPSC Prelims Practice Questions — Govt. extends customs duty exemption on petrochem imports

Q1. The following are stated to be among the roughly 40 critical petrochemical products on which the Government granted a full customs duty exemption in 2026. Which of the above is/are NOT correct?

  1. Methanol
  2. Anhydrous ammonia
  3. Vinyl chloride monomer
  4. Urea
  • A. 1 and 3
  • B. 4 only
  • C. 2 and 4
  • D. 3 only

Q2. The full customs duty exemption on the specified petrochemical feedstocks (2026) was granted by the Central Government in exercise of powers conferred under which one of the following?

  • A. Section 25(1) of the Customs Act, 1962
  • B. Section 11 of the Customs Act, 1962
  • C. Section 3 of the Customs Tariff Act, 1975
  • D. Section 9A of the Customs Tariff Act, 1975

Q3. With reference to the power to grant customs duty exemptions in India, consider the following statements. Which of the statements given above is/are correct?

  1. Section 25(1) empowers the Central Government to grant exemption by notification in the Official Gazette if it is satisfied that it is necessary in the public interest.
  2. An exemption under Section 25 may be granted absolutely or subject to conditions.
  3. An exemption under Section 25 may fix a duty higher than the statutory rate leviable on the goods.
  4. Section 25(2) permits exemption by a special order in circumstances of an exceptional nature.
  • A. 1 and 2 only
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q4. Notifications granting customs duty exemptions under Section 25 of the Customs Act, 1962 are issued by which one of the following?

  • A. Department of Revenue, Ministry of Finance
  • B. Directorate General of Foreign Trade, Ministry of Commerce and Industry
  • C. Directorate General of Trade Remedies
  • D. Department of Chemicals and Petrochemicals

Q5. Approximately what proportion of India's petrochemical intermediate requirement is met through imports?

  • A. About 25%
  • B. About 45%
  • C. About 60%
  • D. About 80%

Q6. With reference to India's and Asia's dependence on West Asia for petrochemical feedstocks, consider the following statements. Which of the statements given above is/are correct?

  1. The Middle East supplies more than half of the naphtha imported by Asia's petrochemical sector.
  2. Around one-third of global seaborne methanol trade transits the Strait of Hormuz.
  3. Over 80% of India's ammonia and sulphur imports originate from the Gulf region.
  4. India sources its entire petrochemical feedstock requirement exclusively from West Asia.
  • A. 1 and 2 only
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1, 3 and 4

Q7. During the 2026 West Asia supply disruption, the minimum quantities of C3 and C4 hydrocarbon streams to be made available by refineries to critical downstream sectors were to be determined by which one of the following?

  • A. Centre for High Technology (CHT)
  • B. Petroleum Planning and Analysis Cell (PPAC)
  • C. Oil Industry Development Board (OIDB)
  • D. Directorate General of Hydrocarbons (DGH)

Q8. On approximately how many critical petrochemical products did the Government grant the full customs duty exemption in response to the 2026 West Asia conflict?

  • A. 20
  • B. 40
  • C. 60
  • D. 75

Q9. In India, which one of the following authorities is solely responsible for conducting anti-dumping and safeguard investigations?

  • A. Directorate General of Trade Remedies, Ministry of Commerce and Industry
  • B. Central Board of Indirect Taxes and Customs, Ministry of Finance
  • C. Directorate General of Foreign Trade, Ministry of Commerce and Industry
  • D. Tariff Commission

Q10. During the 2026 disruption, the allocation of LPG-pool quantities to the downstream pharmaceutical and chemical industries was operationalised through which one of the following ministries?

  • A. Ministry of Petroleum and Natural Gas
  • B. Ministry of Chemicals and Fertilizers
  • C. Ministry of Health and Family Welfare
  • D. Ministry of Finance

Q11. With reference to the July 2026 extension of the petrochemical customs duty exemption, consider the following statements. Which of the statements given above is/are correct?

  1. The exemption, originally valid till 30 June 2026, was extended by a further 15 days till 15 July 2026.
  2. The extension was made to ensure a smooth and non-disruptive transition as the situation gradually normalises.
  3. The extension was announced by the Union Finance Ministry.
  4. Under the extension, the basic customs duty on the covered products was raised to a concessional positive rate.
  • A. 1, 2 and 3
  • B. 2 and 4
  • C. 1 and 3 only
  • D. 1, 3 and 4

Q12. The Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) policy is administered under the authority of which one of the following?

  • A. Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers
  • B. Ministry of Petroleum and Natural Gas
  • C. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • D. NITI Aayog