UPSC Prelims Practice Questions — India-U.K. FTA: FinMin notifies rules for origin of goods
Q1. The acronym 'CETA', used for the India–United Kingdom trade pact entering into force in July 2026, correctly stands for:
- A. Comprehensive Economic and Trade Agreement
- B. Comprehensive Economic and Tariff Arrangement
- C. Cooperative Economic and Trade Accord
- D. Combined Economic and Trade Alliance
Q2. With reference to the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA), consider the following:
1. It provides duty-free access on about 99% of India's tariff lines to the UK market.
2. It comprises 30 chapters covering goods and services.
3. It offers Indian services providers market access across 137 sub-sectors.
4. It entered into force on 24 July 2025, the very day it was signed.
Which of the above is/are NOT correct?
- It provides duty-free access on about 99% of India's tariff lines to the UK market.
- It comprises 30 chapters covering goods and services.
- It offers Indian services providers market access across 137 sub-sectors.
- It entered into force on 24 July 2025, the very day it was signed.
- A. 1 and 2
- B. 3 only
- C. 4 only
- D. 2 and 4
Q3. In rules of origin under free trade agreements, which one of the following is the first and simplest category of goods — qualifying as 'originating' without any need to apply the substantial-transformation test?
- A. Wholly obtained goods
- B. Goods meeting the change-in-tariff-heading criterion
- C. Goods meeting the ad valorem value-addition criterion
- D. Goods qualifying through cumulation of inputs
Q4. Under India's trade agreements, preferential Certificates of Origin for exporters are issued through the electronic platform administered by which one of the following?
- A. Directorate General of Foreign Trade (DGFT)
- B. Central Board of Indirect Taxes and Customs (CBIC)
- C. Directorate General of Trade Remedies (DGTR)
- D. Directorate General of Systems and Data Management
Q5. To avail preferential tariff benefits under the India–UK CETA from the day of its entry into force, the single most essential document an exporter's consignment must be supported by at import clearance is the:
- A. Certificate of Origin
- B. Bill of Lading
- C. Letter of Credit
- D. Import Export Code (IEC) certificate
Q6. With reference to the Customs Tariff (Determination of Origin of Goods under India–UK CETA) Rules, 2026, consider the following:
1. The Rules were notified by the Central Board of Indirect Taxes and Customs.
2. Origin declarations and certificates generally remain valid for 12 months.
3. Importers must retain supporting documentation for a minimum of four years.
4. Exporters and manufacturers must retain origin-related documents for a minimum of three years.
Which of the above is/are NOT correct?
- The Rules were notified by the Central Board of Indirect Taxes and Customs.
- Origin declarations and certificates generally remain valid for 12 months.
- Importers must retain supporting documentation for a minimum of four years.
- Exporters and manufacturers must retain origin-related documents for a minimum of three years.
- A. 1 and 2
- B. 3 only
- C. 4 only
- D. 2 and 3
Q7. With reference to the Central Board of Indirect Taxes and Customs (CBIC), consider the following statements:
1. It is constituted under the Central Boards of Revenue Act, 1963.
2. It functions under the Department of Revenue, Ministry of Finance.
3. It administers the levy and collection of Customs, Central Excise and Goods and Services Tax.
4. It is the apex body for administration of direct taxes such as income tax.
Which of the above is/are correctly identified?
- It is constituted under the Central Boards of Revenue Act, 1963.
- It functions under the Department of Revenue, Ministry of Finance.
- It administers the levy and collection of Customs, Central Excise and Goods and Services Tax.
- It is the apex body for administration of direct taxes such as income tax.
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q8. The Central Board of Indirect Taxes and Customs (CBIC) is headed by a Chairman and, besides the Chairman, comprises how many Members?
- A. Four
- B. Five
- C. Six
- D. Eight
Q9. Under the India–UK Double Contribution Convention entering into force on 15 July 2026, temporarily posted employees are exempt from host-country social security contributions for a maximum period of how many years?
- A. Three
- B. Four
- C. Five
- D. Ten
Q10. With reference to the India–UK Double Contribution Convention (DCC), consider the following:
1. It enters into force on 15 July 2026, the same day as the CETA.
2. Its exemption period was raised from three years to five years during negotiations.
3. Over 75,000 Indian professionals and more than 900 companies are expected to benefit.
4. It exempts all Indian citizens residing in the UK, irrespective of the duration of their stay, from UK social security contributions.
Which of the above is/are NOT correct?
- It enters into force on 15 July 2026, the same day as the CETA.
- Its exemption period was raised from three years to five years during negotiations.
- Over 75,000 Indian professionals and more than 900 companies are expected to benefit.
- It exempts all Indian citizens residing in the UK, irrespective of the duration of their stay, from UK social security contributions.
- A. 1 and 2
- B. 3 only
- C. 4 only
- D. 2 and 4
Q11. With reference to India's recent trade agreements, consider the following statements:
1. India's agreement with the United Arab Emirates is designated a Comprehensive Economic Partnership Agreement (CEPA), whereas its agreement with the United Kingdom is a Comprehensive Economic and Trade Agreement (CETA).
2. India's agreement with Australia is designated an Economic Cooperation and Trade Agreement (ECTA).
3. The India–UAE agreement was signed earlier than the India–UK agreement.
Which of the statements given above is/are correct?
- India's agreement with the United Arab Emirates is designated a Comprehensive Economic Partnership Agreement (CEPA), whereas its agreement with the United Kingdom is a Comprehensive Economic and Trade Agreement (CETA).
- India's agreement with Australia is designated an Economic Cooperation and Trade Agreement (ECTA).
- The India–UAE agreement was signed earlier than the India–UK agreement.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q12. The most-favoured-nation (MFN) principle is considered so fundamental to the multilateral trading system that it appears as which Article of the General Agreement on Tariffs and Trade (GATT)?
- A. Article I
- B. Article III
- C. Article XI
- D. Article XXIV