Page 171 - COMBINED QUESTIONS AND ANSWERS - EDITION 2019 - PART II_Neat

(iii) Part, sub-assembly or assembly that contributes to efficiency or effectiveness of a
piece of equipment with or without changing its basic functions.
(iv) None of the above
A-657: i - Part, sub-assembly or assembly that contributes to efficiency or effectiveness of a piece of
equipment without changing its basic functions

FOREIGN EXCHANGE

Q-658: Explain the conversion of foreign exchange into Indian rupees
A-658: When the goods are imported, the foreign suppliers invariably indicate the value of
the goods in foreign currency in the Invoices raised on the importers. All the goods
imported are allowed clearance by the Customs authorities only on payment of duty unless
such goods are specifically exempted from payment of duty. The duty is charged on the
imported goods on the basis of value of the goods (ad valorem), except in a few cases where
the specific rate of duty is fixed i.e; on the basis of weight or volume. When the rate of duty
is chargeable on the bases of value, it is charged on rupee value of the goods imported. The
value shown in the invoices in foreign currency is therefore, required to be converted in to
Indian Rupees. For this purpose, the Government notifies the exchange rates from time to
time.
The exchange rate applicable is the date on which the home consumption Bill of
Entry or Bill of Entry for warehousing is presented to the Customs authorities.

FREE TRADE AGREEMENT
Q-659: The Concessional Duty Certificates (COO Certificates) from ASEAN and SAFTA are issued
(i) After shipment sails from the respective countries
(ii) Before shipment sails from the respective countries
(iii) Before shipment reaches the importing countries
(iv) After shipment reached the importing countries

A-659: i - After shipment sails from the respective countries
Q-660: The decision of the Central Government on the question arises whether any trade
agreement applies to any country or territory
(i) Final and shall not be liable to be questioned in any court of law
(ii) An appeal can file with the High Courts
(iii) An appeal can file with the Supreme Court
(iv) None of the above

A-660: i - Final and shall not be liable to be questioned in any court of law
Q-661: Authority or source for availing exemption under Foreign Trade Act or levy of duty based on
Country of Origin for importers
(i) Relevant Customs duty exemption and Rules
(ii) COO certificate from agency in specified Country
Which one of the above statement is correct?
(i) a only

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