UPSC Prelims Practice Questions — TARIFF RATE ON ALL DUTIABLE GOODS IMPORTED FOR PERSONAL USE TO BE REDUCED FROM 20% TO 10%

Q1. The Union Budget 2026-27 proposal to reduce the tariff rate on all dutiable goods imported for personal use from 20% to 10% is being given legal effect through which one of the following?

  • A. The Finance Bill 2026, amending the Customs Tariff Act, 1975
  • B. An executive notification issued by CBIC under the Customs Act, 1962
  • C. A recommendation of the GST Council under the CGST Act, 2017
  • D. The Finance Bill 2025, amending the Central Excise Act, 1944

Q2. The reduced personal-use import tariff announced in Union Budget 2026-27 is administered by which one of the following?

  • A. Department of Revenue, Ministry of Finance, through the Central Board of Indirect Taxes and Customs (CBIC)
  • B. Department of Commerce, Ministry of Commerce and Industry, through the DGFT
  • C. Department for Promotion of Industry and Internal Trade (DPIIT)
  • D. Central Board of Direct Taxes, Department of Revenue

Q3. Which one of the following is the principal parent statute whose tariff schedule is amended by the Finance Bill 2026 to effect the personal-use tariff cut?

  • A. The Customs Tariff Act, 1975
  • B. The Customs Act, 1962
  • C. The Central Excise Act, 1944
  • D. The Central Goods and Services Tax Act, 2017

Q4. Dutiable goods imported for personal use are classified principally under which single heading of the Indian Customs Tariff (Chapter 98)?

  • A. Heading 9804
  • B. Heading 9801 (Project Imports)
  • C. Heading 9803
  • D. Heading 9805

Q5. In Union Budget 2026-27, basic customs duty was exempted on how many drugs/medicines, chiefly to benefit cancer patients?

  • A. 17
  • B. 7
  • C. 36
  • D. 82

Q6. In the context of the 2025-26 customs tariff rationalisation, the 'removal of seven tariff rates' for industrial goods refers to which one of the following?

  • A. Elimination of seven distinct ad valorem rate slabs so that only eight rates (including 'zero') remain
  • B. Removal of seven cesses and surcharges levied on imported industrial goods
  • C. Reduction of customs duty to zero on seven categories of industrial goods
  • D. Withdrawal of seven duty-exemption notifications for industrial inputs

Q7. After the Budget 2025-26 rationalisation for industrial goods, how many customs tariff rates — including the 'zero' rate — remain as the leaner rate structure?

  • A. Eight
  • B. Seven
  • C. Fifteen
  • D. Five

Q8. Under the Budget 2026-27 trade-facilitation measures, the 'duty deferral' benefit for Tier-2 and Tier-3 Authorised Economic Operators (AEOs) permits them to do which one of the following?

  • A. Pay customs duty after a specified deferral period (enhanced from 15 to 30 days) rather than at the time of import
  • B. Claim a full exemption from basic customs duty on imported capital goods
  • C. Postpone filing of the bill of entry until the imported goods are sold
  • D. Obtain an automatic refund of duty paid on subsequently re-exported goods