UPSC Prelims Practice Questions — ‘India will respect duty concessions on Scotch whisky imports from U.K.’

Q1. With reference to the Harmonized System (HS) used for customs classification of goods, consider the following statements: Which of the statements given above is/are correct?

  1. The HS is a nomenclature for classifying goods; it does not by itself fix the rate of customs duty payable on any product.
  2. Since all countries using the HS classify goods identically up to six digits, a given product must attract the same duty rate in each of them.
  3. The HS was created by the World Trade Organization as part of the Uruguay Round agreements.
  • A. 1, 2 and 3
  • B. 1 and 3 only
  • C. 1 and 2 only
  • D. 1 only

Q2. In the Harmonized System, which of the following is the most detailed level of classification that is common to all countries using the System, beyond which national tariff lines may differ?

  • A. The six-digit subheading level
  • B. The four-digit heading level
  • C. The eight-digit tariff-line level
  • D. The two-digit chapter level

Q3. Consider the following assertion: Halving the duty on U.K. whisky under the India–U.K. trade agreement does not, by itself, ensure that an importer of bulk Scotch actually pays the reduced duty. Which of the statements given below support/supports the above assertion?

  1. A tariff concession in a trade agreement attaches to the tariff line scheduled for it, so the duty charged follows the line under which customs classifies the import.
  2. A consignment of bulk Scotch could fall under more than one tariff line, and the duties on these lines differ widely.
  3. 'Scotch Whisky' is a geographical indication that receives enhanced protection for spirits under the WTO's TRIPS Agreement.
  • A. 2 only
  • B. 1 and 3 only
  • C. 1 and 2 only
  • D. 1, 2 and 3

Q4. With reference to WTO tariff commitments, consider the following statements: Which of the statements given above is/are correct?

  1. A WTO member that applies an MFN duty below its bound rate on a product does not thereby breach its WTO tariff commitments.
  2. Once a duty is bound, a WTO member may not raise it above the bound level without compensating affected trading partners.
  3. A 'ceiling binding' describes a tariff line on which the applied MFN duty lies below the bound duty.
  • A. 1 only
  • B. 1, 2 and 3
  • C. 2 and 3 only
  • D. 1 and 2 only

Q5. Under the India–U.K. trade agreement, India's duty on U.K. whisky fell from 150% to 75% on entry into force and is scheduled to fall to 40% over ten years. Assuming India's MFN duty on whisky from other countries remains unchanged, consider the following statements: Which of the statements given above is/are correct?

  1. As the preferential duty falls, India's WTO bound rate on whisky for all WTO members falls by the same amount.
  2. The margin of preference enjoyed by U.K. whisky over whisky from non-partner countries will widen over the decade.
  3. The preferential duty payable on a consignment of U.K. whisky depends on the year in which it is imported.
  • A. 1 only
  • B. 1 and 3 only
  • C. 1, 2 and 3
  • D. 2 and 3 only

Q6. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Under the WTO's TRIPS Agreement, a whisky labelled 'Scotch-style whisky, made in India' can be challenged even though its label discloses its true origin.
  2. Under TRIPS, an indication qualifies as a geographical indication only if a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q7. With reference to the protection of geographical indications (GIs) under the WTO's TRIPS Agreement, as of 2026, consider the following statements: Which of the statements given above is/are correct?

  1. Under the general standard applicable to all goods, a GI is protected against uses that mislead the public about the true geographical origin of the good.
  2. WTO members are obliged to protect a GI only after it has been entered in a multilateral register maintained by the WTO.
  3. Extending the higher level of protection given to wines and spirits to all other products remains under discussion among WTO members.
  • A. 1, 2 and 3
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1 only

Q8. With reference to Article 253 of the Constitution of India, consider the following statements: Which of the statements given above is/are correct?

  1. Parliament may legislate under Article 253 on a State List subject to implement a treaty, but only with the prior consent of the States affected.
  2. The power under Article 253 extends to implementing decisions made at international conferences or bodies, and not only treaties with other countries.
  3. Legislation becomes necessary to implement a treaty where its implementation would require a change in domestic law or affect the rights of individuals.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 3 only
  • D. 1 and 2 only