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FBR Customs Inspector study materials
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FBR Customs Inspector practice questions

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Question 1Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Under Pakistan's customs law, which document is the primary declaration filed by an importer to clear goods through Customs?

  1. Commercial Invoice
  2. Bill of Lading
  3. Goods Declaration (GD) Correct answer.
  4. Letter of Credit

Explanation

The Goods Declaration is the formal statement filed in WeBOC through which the importer declares goods, value, and classification to Customs. Supporting documents such as the invoice and bill of lading are attached to it but do not themselves constitute the declaration.

Question 2Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Which system is used by Pakistan Customs for electronic processing of import and export declarations?

  1. WeBOC Correct answer.
  2. ASYCUDA World
  3. PAYES
  4. IRIS

Explanation

WeBOC (Web-Based One Customs) is the indigenous clearance system used by Pakistan Customs for filing and processing goods declarations. It links importers, clearing agents, banks, and Customs officials in a single electronic workflow.

Question 3Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

The Customs Act, 1969 primarily governs which of the following in Pakistan?

  1. Levy and collection of customs duties and clearance of goods Correct answer.
  2. Sales tax registration of retailers
  3. Regulation of stock exchanges
  4. Income tax assessment of companies

Explanation

The Customs Act, 1969 is the principal statute dealing with the levy and collection of customs duties, clearance procedures, warehousing, and related offences. It does not govern income tax or sales tax registration, which fall under separate laws.

Question 4Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

In customs valuation, which method must be applied first when determining the value of imported goods?

  1. Transaction value method Correct answer.
  2. Fall-back method
  3. Deductive value method
  4. Computed value method

Explanation

The transaction value, based on the price actually paid or payable for the goods, is the primary method of valuation under the WTO Valuation Agreement and Pakistan's Customs Act. Other methods are applied sequentially only when transaction value cannot be determined.

Question 5Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Which of the following is a document normally required from a passenger to claim the duty-free allowance on accompanied baggage?

  1. A bank guarantee
  2. A company tax return
  3. A vehicle registration certificate
  4. A customs baggage declaration and valid passport Correct answer.

Explanation

A passenger claiming allowances must present a baggage declaration together with a valid passport showing entitlement to the allowance. The passport establishes identity, residency, and travel history relevant to allowance eligibility.

Question 6Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

DIRBS, operated in Pakistan, is primarily designed to do which of the following?

  1. Block non-compliant mobile devices from networks Correct answer.
  2. Track container movements at ports
  3. Verify export rebate claims
  4. Register imported vehicles for customs duty

Explanation

The Device Identification, Registration and Blocking System registers mobile devices and blocks those that are non-compliant or smuggled from operating on local mobile networks. It uses IMEI data to identify devices and enforce compliance.

Question 7Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

The Pakistan Customs Tariff is primarily structured according to which international classification system?

  1. UN Standard Product Code
  2. International Standard Book Number
  3. Harmonized System (HS) nomenclature Correct answer.
  4. Standard Industrial Classification

Explanation

The Pakistan Customs Tariff follows the Harmonized System nomenclature maintained by the World Customs Organization, with chapters, headings, and subheadings. This harmonization allows consistent classification of goods across countries.

Question 8Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Which duty is imposed on imported goods specifically to offset the advantage that imported goods may derive from subsidies in the country of export?

  1. Excise duty
  2. Warehousing surcharge
  3. Countervailing duty Correct answer.
  4. Regulatory duty

Explanation

A countervailing duty is imposed to neutralize subsidies granted by an exporting country to its producers. It is distinct from anti-dumping duty, which addresses goods sold below normal value.

Question 9Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A clearing agent submits a goods declaration in WeBOC with a customs value significantly lower than the invoice price. What is the most appropriate action for Customs to take?

  1. Release the goods and issue a warning later
  2. Accept the declared value because the agent certified it
  3. Refer the case to valuation for examination and possible re-determination Correct answer.
  4. Reject the declaration without any assessment

Explanation

Customs has the authority to examine declared value and determine customs value under the valuation rules when there are doubts about the accuracy of the declared price. Referral to the valuation function allows proper scrutiny rather than automatic acceptance or blanket rejection.

Question 10Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

An importer brings in used machinery. Which of the following best describes the role of the customs value in duty calculation?

  1. It determines only the port of clearance
  2. It forms the base to which the applicable duty rate is applied Correct answer.
  3. It replaces the need for classification
  4. It is only needed for statistical reporting

Explanation

Customs value is the base on which the applicable tariff rate, determined by classification, is applied to compute duty. Classification identifies the rate, and valuation provides the base for calculation.

Question 11Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A passenger arriving at an international airport carries personal jewellery exceeding the allowable allowance. What is the standard customs response?

  1. Confiscate all jewellery and arrest the passenger
  2. Return the jewellery to the country of departure only
  3. Assess duty on the excess value and allow clearance after payment Correct answer.
  4. Allow the jewellery free because it is personal use

Explanation

Where the value of dutiable baggage exceeds the admissible allowance, Customs assesses duty on the excess and permits clearance upon payment. This reflects the allowance structure rather than automatic confiscation or total free entry.

Question 12Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Under Pakistan's vehicle import rules, a used car imported by an individual is generally subject to which transfer restriction after clearance?

  1. It is subject to a retention period before transfer Correct answer.
  2. It may be sold immediately without restriction
  3. It must be registered as a commercial vehicle
  4. It must be exported within one year

Explanation

Used vehicles imported under personal baggage or transfer-of-residence schemes are subject to a retention period during which they cannot be freely transferred. This condition prevents misuse of concessionary import schemes.

Question 13Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Which of the following best describes the purpose of the DIRBS compliance check for a mobile phone brought in by a traveler?

  1. To record the traveler's tax number
  2. To determine the customs duty rate on the handset
  3. To verify whether the device's IMEI is registered and compliant for network use Correct answer.
  4. To issue a vehicle clearance certificate

Explanation

DIRBS checks the IMEI of a device to confirm whether it is registered and compliant for use on local mobile networks. Travelers bringing handsets may need to register the device to avoid blocking.

Question 14Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A consignment of goods is declared under one HS heading, but examination reveals characteristics that place it more accurately under another heading with a higher rate. What is the appropriate customs action?

  1. Reclassify the goods and reassess duty accordingly Correct answer.
  2. Accept the lower rate as declared
  3. Leave the declaration unchanged since it was filed electronically
  4. Refer the matter only to the exporter

Explanation

When examination shows the goods are misclassified, Customs reclassifies them under the correct heading and reassesses duty at the applicable rate. Electronic filing does not freeze an incorrect classification.

Question 15Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Which of the following is the correct sequence in the customs clearance process for imports?

  1. Filing of GD, assessment, examination, release Correct answer.
  2. Examination, release, filing of GD, assessment
  3. Release, assessment, examination, filing of GD
  4. Assessment, filing of GD, examination, release

Explanation

The importer files the goods declaration, Customs assesses duty, goods may be examined, and release follows after completion. This sequence ensures duty is determined before goods leave customs control.

Question 16Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Anti-dumping duty differs from countervailing duty in that anti-dumping duty addresses which situation?

  1. Goods exported below their normal value causing injury to domestic industry Correct answer.
  2. Goods benefiting from foreign government subsidies
  3. Goods imported without a bill of lading
  4. Goods stored in a bonded warehouse

Explanation

Anti-dumping duty responds to dumped goods, that is, goods exported at less than normal value and causing or threatening material injury to domestic industry. Countervailing duty, by contrast, targets foreign subsidies.

Question 17Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A traveler arriving with foreign currency exceeding the prescribed threshold must do which of the following?

  1. Declare the currency to Customs at the time of arrival Correct answer.
  2. Convert it to local currency before landing
  3. Deposit it with the airline
  4. Declare it only if departing again

Explanation

Currency exceeding the prescribed threshold must be declared to Customs on arrival to comply with anti-money-laundering and foreign exchange rules. Failure to declare can lead to seizure and penalties.

Question 18Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

In customs valuation, when transaction value cannot be used, which method is applied next according to the sequential hierarchy?

  1. Fall-back method
  2. Value of identical goods Correct answer.
  3. Computed value
  4. Deductive value

Explanation

After transaction value, the next method is the value of identical goods, followed by similar goods, deductive value, computed value, and finally the fall-back method. The hierarchy must be followed in order.

Question 19Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Which authority is responsible for the overall administration of customs in Pakistan at the federal level?

  1. State Bank of Pakistan
  2. Pakistan Bureau of Statistics
  3. Federal Board of Revenue Correct answer.
  4. Securities and Exchange Commission of Pakistan

Explanation

The Federal Board of Revenue administers customs, including policy and collection, through Pakistan Customs. Other bodies listed have different regulatory mandates.

Question 20Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A clearing agent repeatedly files declarations with incorrect weights to reduce assessed duty. Which offence category best fits this conduct?

  1. A transport documentation issue
  2. Misdeclaration attracting penal action under customs law Correct answer.
  3. A valuation dispute with no penalty
  4. A minor clerical error with no consequence

Explanation

Deliberately declaring false particulars such as weight to reduce duty constitutes misdeclaration, which attracts penal action under the Customs Act. It is not a mere clerical slip because the intent and effect concern duty evasion.

Question 21Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

When valuing imported goods under the deductive value method, which figure is used as the starting point?

  1. The price at which the imported goods are resold in the domestic market Correct answer.
  2. The cost of production in the exporting country
  3. The price of the goods in the exporting country's retail market
  4. The freight cost only

Explanation

Deductive value starts from the resale price of the imported goods in the country of import, with deductions for costs incurred after importation such as duties, taxes, and margins. It works backward from the domestic resale price.

Question 22Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A vehicle imported under a transfer-of-residence scheme is found to have been sold before the mandatory retention period expired. What is the likely consequence under customs rules?

  1. No consequence because duty was already paid
  2. Recovery of duty concession and penal action for violation of conditions Correct answer.
  3. Automatic regularization on payment of a small fee
  4. Transfer of the case to the vehicle registration authority only

Explanation

Concessionary schemes carry conditions, including a retention period; breach allows Customs to recover the foregone duty and impose penalties. Paying duty at import does not cure a breach of the scheme's transfer condition.

Question 23Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A trader argues that because a good is mentioned in the tariff schedule at a low rate, its accessories must also attract that rate. Which classification principle best resolves this?

  1. Classification depends on the specific description and rules for the goods as presented Correct answer.
  2. The lowest rate in the chapter always applies
  3. Accessories always follow the rate of the principal good
  4. The importer's preference determines the heading

Explanation

Classification turns on the terms of the headings and any relevant section or chapter notes, applied to the goods as presented. Accessories do not automatically inherit the principal good's rate unless the nomenclature so provides.

Question 24Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Customs suspects that the declared transaction value is influenced by a relationship between buyer and seller. Under valuation rules, what must be examined?

  1. Whether the relationship influenced the price actually paid or payable Correct answer.
  2. Whether the goods were shipped by sea or air
  3. Whether the seller uses a particular bank
  4. Whether the buyer holds shares in any company

Explanation

A relationship between buyer and seller does not by itself invalidate transaction value; the key question is whether the relationship influenced the price. If it did not, transaction value may still be accepted.

Question 25Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A mobile handset is brought in as accompanied baggage and its IMEI is not registered. What is the most accurate description of the likely outcome under DIRBS?

  1. The device will be automatically exported by the operator
  2. The device may be blocked from local mobile networks until regularized Correct answer.
  3. The device will operate normally because it was carried personally
  4. The device will be reclassified under a different tariff heading

Explanation

DIRBS blocks devices whose IMEIs are not registered and compliant, regardless of how they entered the country. The traveler must complete the registration and duty process to have the device regularized for network use.

Question 26Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Under Pakistan Customs rules, a goods declaration for imported commercial cargo is normally lodged electronically through which system?

  1. WeBOC Correct answer.
  2. PSW Trade Information Portal
  3. IRIS
  4. e-FBR Returns Portal

Explanation

WeBOC (Web-Based One Customs) is the automated clearance system used by Pakistan Customs for lodging goods declarations, assessment and clearance of consignments. It links the importer or clearing agent with Customs officials for electronic processing.

Question 27Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

In customs terminology, 'assessment' of a goods declaration most accurately refers to which action?

  1. Determination of the applicable duty and taxes payable on the goods Correct answer.
  2. Collection of the bank guarantee from the importer
  3. Issuance of the out-of-charge certificate after delivery
  4. Physical examination of the consignment by the examining staff

Explanation

Assessment is the process by which Customs determines the classification, customs value and the amount of duty and taxes payable on a declared consignment. Examination and out-of-charge are separate stages that follow or accompany clearance.

Question 28Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A commercial importer brings goods into Pakistan and the declared customs value is expressed in a foreign currency. For duty calculation, that value must be converted using which rate?

  1. The State Bank of Pakistan interbank rate on the date the goods declaration is registered Correct answer.
  2. The open market rate on the date the goods arrive at the port
  3. The rate fixed by the importer's bank on the invoice date
  4. The rate notified for the last day of the financial year

Explanation

Customs value declared in foreign currency is converted into Pakistan Rupees at the exchange rate notified or applied by Customs, generally the State Bank of Pakistan rate prevailing on the date of registration of the goods declaration. This keeps the rupee duty base consistent and verifiable.

Question 29Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

An importer declares a consignment of ceramic tiles. The declared quantity is 1,000 square metres but examination finds 1,250 square metres. What is the most appropriate customs response?

  1. Treat the entire consignment as smuggled and order confiscation
  2. Release the goods and record the excess as a future adjustment
  3. Ignore the difference because the duty rate is the same for all quantities
  4. Assess the excess quantity for duty and consider penalty proceedings for the misdeclaration Correct answer.

Explanation

Where examination reveals a quantity greater than declared, the excess must be assessed to duty and the false declaration may attract penalty under the customs law. The declared portion is normally processed while the discrepancy is regularised.

Question 30Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

In the Pakistan Customs Tariff, the eight-digit code is used for which purpose beyond the six-digit international HS code?

  1. To indicate the mode of transport used
  2. To provide a national-level statistical and duty-rate subdivision Correct answer.
  3. To record the name of the clearing agent
  4. To identify the country of origin of the goods

Explanation

The Harmonized System provides six-digit codes internationally, and Pakistan extends these with additional national digits to create distinct tariff lines with their own duty rates and statistical detail. These extra digits do not encode origin, agent or transport data.

Question 31Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A passenger at Lahore airport is carrying two laptops for personal use, one of which is clearly new and sealed. How should the customs officer treat this under the baggage rules?

  1. Allow both free as personal effects without any question
  2. Confiscate both laptops as commercial import
  3. Refer the passenger to DIRBS for IMEI registration of the laptops
  4. Assess the new sealed laptop for duty while the used personal laptop may qualify as an allowance item Correct answer.

Explanation

Baggage allowances cover personal effects in reasonable quantity for personal use; a new, sealed device in addition to an existing laptop suggests a dutiable item beyond personal use. The officer assesses the dutiable item while the genuine personal effect is considered under the allowance.

Question 32Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Which of the following best describes the 'baggage' concept in the Customs Act as applied to international air travellers?

  1. Only goods carried in the aircraft hold
  2. Only goods purchased in duty-free shops
  3. Only unaccompanied cargo shipped by the passenger
  4. Goods brought by a passenger for personal use, including accompanied and unaccompanied baggage as defined in the rules Correct answer.

Explanation

Baggage covers goods for personal use brought by a passenger, including unaccompanied baggage that arrives under the prescribed rules and within the stated period. Duty-free purchases and hold luggage are simply parts of that broader concept.

Question 33Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Under Pakistan's vehicle import policy, an overseas Pakistani importing a vehicle under a personal baggage or transfer-of-residence scheme is generally required to satisfy which condition?

  1. Register the vehicle only in the name of a dealer
  2. Re-export the vehicle within six months
  3. Sell the vehicle immediately to recover the cost
  4. Retain the vehicle for a specified minimum period before it can be transferred Correct answer.

Explanation

Concessional vehicle import schemes such as transfer of residence impose a retention or lock-in period during which the vehicle cannot be transferred without payment of the differential duty. This prevents the concession from being used for commercial resale.

Question 34Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A used imported vehicle is presented for clearance and the declared value is lower than the value shown in international vehicle valuation guides. What is the correct customs approach?

  1. Refuse to clear the vehicle under any circumstances
  2. Value the vehicle as scrap metal
  3. Use the valuation guide or database value as a basis to assess, allowing the importer to contest with evidence Correct answer.
  4. Accept the declared value because the seller signed the invoice

Explanation

For used vehicles, Customs commonly relies on depreciation-applied valuation guides or a database to establish value where the declared value is not credible. The importer can still challenge the assessment with documentary evidence of the actual condition and price.

Question 35Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

DIRBS in Pakistan maintains a database primarily of which identifiers for mobile devices?

  1. Bank account numbers of traders
  2. Vehicle registration numbers
  3. National identity card numbers of importers
  4. IMEI numbers of mobile handsets Correct answer.

Explanation

The Device Identification, Registration and Blocking System records IMEI numbers of mobile devices so that non-compliant or counterfeit handsets can be identified and blocked from local networks. It does not maintain vehicle, identity or banking records.

Question 36Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A consignment of imported medicines is declared as 'dietary supplements' to obtain a lower duty rate. On examination, the goods are found to be registered pharmaceutical products. What is the appropriate customs action?

  1. Reclassify the goods under the correct heading, reassess duty and initiate proceedings for misdeclaration Correct answer.
  2. Release the goods at the declared rate because the invoice uses the term 'supplements'
  3. Refer the matter to DIRBS for device blocking
  4. Confiscate only the packaging and release the medicine

Explanation

Classification depends on the true nature of the goods, not the description chosen by the importer. Where examination shows the goods belong to a different tariff heading with a higher rate, Customs reclassifies, recovers the differential duty and may impose penalties for misdeclaration.

Question 37Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

Which of the following is the standard documentary basis for determining transaction value of imported goods under the WTO valuation principles adopted by Pakistan?

  1. The highest price quoted by any competing supplier
  2. The price actually paid or payable for the goods when sold for export to Pakistan Correct answer.
  3. The retail price of the goods in the importing country
  4. The price of identical goods sold in a third country

Explanation

Transaction value is the price actually paid or payable for the goods when sold for export to the country of importation, adjusted as required by the valuation rules. Other methods apply only when transaction value cannot be used.

Question 38Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

An importer claims that a shipment of goods should be exempt from customs duty because it is a 'gift' from a foreign supplier. Which principle best answers this claim?

  1. Gifts are always exempt from customs duty regardless of value
  2. Duty liability depends on whether the goods are chargeable under the tariff and any applicable exemption notification, not on the label 'gift' Correct answer.
  3. Gifts are exempt only if the supplier is a relative
  4. Gift consignments attract duty only if they exceed commercial quantity

Explanation

Customs duty attaches to goods according to their classification and the applicable exemption notifications, not the commercial label used. A 'gift' description does not by itself create an exemption unless a specific notification covers it.

Question 39Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A clearing agent notices that the tariff heading declared by the importer carries a higher duty rate than an alternative heading the importer prefers. What should the agent do?

  1. Select the heading with the lower rate to reduce the importer's cost
  2. Leave the classification blank for Customs to decide
  3. Declare both headings on the same declaration
  4. Declare the goods under the heading that correctly describes them, irrespective of the rate Correct answer.

Explanation

Classification must reflect the true character of the goods as described in the tariff and the General Rules of Interpretation. Choosing a heading merely because it carries a lower rate is misdeclaration and exposes the agent to penalties.

Question 40Customs (Customs Basics, Goods Declarations, Customs Tariff, Valuation, Travel Guide, Vehicles, DIRBS)

A traveller arriving from abroad declares a mobile phone purchased overseas. The IMEI is not registered in DIRBS. Which statement best reflects the compliance position?

  1. The phone is automatically confiscated at the airport
  2. The phone can be registered only by the foreign seller
  3. The phone will work on local networks permanently because it was declared at customs
  4. The phone may be blocked from local mobile networks until IMEI registration and applicable duty are regularised Correct answer.

Explanation

DIRBS blocks unregistered IMEIs from operating on Pakistani mobile networks. A traveller who declares a handset can have it regularised through the prescribed registration and duty process, after which the IMEI becomes compliant.

Question 41Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

Under the Customs Act, 1969, within what period must a person who acquires custody of imported goods that have not been cleared for home consumption give notice to the nearest customs officer?

  1. Within twenty-four hours of taking custody Correct answer.
  2. Within one month of taking custody
  3. Within seven days of taking custody
  4. Immediately upon taking custody of the goods

Explanation

The Customs Act, 1969 requires any person who comes into custody of uncleared imported goods to report the matter to the nearest customs officer within twenty-four hours. The obligation is designed to prevent smuggled or uncleared cargo from disappearing into the local market unnoticed. Failure to give the notice exposes the holder to penal consequences under the Act.

Question 42Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

A vessel arrives at a customs port and the master fails to deliver the required arrival report to the customs station without reasonable cause. Which consequence is provided under the Customs Act, 1969?

  1. The master becomes liable to a penalty prescribed for failure to report arrival Correct answer.
  2. The port authority alone handles the matter with no customs role
  3. The vessel is only warned in writing and released
  4. The cargo is automatically confiscated without any proceedings

Explanation

The Customs Act, 1969 obliges the master of a conveyance arriving at a customs port to deliver a report of arrival, and non-compliance without reasonable cause attracts a monetary penalty on the master. The provision supports customs control over conveyances before cargo is discharged. Confiscation of cargo is a separate matter requiring separate grounds.

Question 43Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

What is the normal period within which an importer must clear imported goods from a customs area before they become liable to be treated as unclaimed?

  1. Fifteen days from the date of landing
  2. Seven days from the date of landing
  3. Ninety days from the date of landing with no extension possible
  4. Thirty days from the date of landing, extendable by the Collector Correct answer.

Explanation

Imported goods must ordinarily be cleared within thirty days of landing, and the Collector may extend that period on sufficient cause being shown. Goods not cleared within the applicable period may be sold or otherwise dealt with as unclaimed. The extension power prevents genuine hardship where documentation or disputes cause delay.

Question 44Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

An importer declares a value for imported goods that the customs officer has reason to doubt. Under the customs valuation framework, what is the proper course?

  1. Seek further information and, if doubt persists, determine value sequentially under the prescribed methods Correct answer.
  2. Reject the invoice and immediately confiscate the goods
  3. Accept the declared value because the invoice is a legal document
  4. Refer the matter to the exporter's bank for a final valuation decision

Explanation

Customs valuation follows a sequential hierarchy of methods, beginning with transaction value and moving to fallback methods only when earlier ones cannot be applied. Where the declared value is doubted, the officer must give the importer an opportunity to justify it and may seek further information before resorting to later methods. Confiscation is not a valuation technique.

Question 45Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

Which document is the primary declaration through which an importer formally declares goods for home consumption under the Customs Act, 1969?

  1. The certificate of origin
  2. The bill of entry Correct answer.
  3. The bill of lading
  4. The shipping manifest

Explanation

The bill of entry is the declaration by which an importer states the particulars of goods intended for home consumption and undertakes to pay the applicable duties. The bill of lading and manifest are transport and conveyance documents, while a certificate of origin supports origin claims. Only the bill of entry performs the declaration function for home consumption.

Question 46Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

A consignment enters a customs warehouse and the owner wishes to clear only part of it while the balance remains warehoused. What does the law permit?

  1. Clearance of part of the goods on payment of duty on the portion cleared Correct answer.
  2. Clearance of part only after the entire consignment is re-exported
  3. Clearance of the whole consignment only, since partial clearance is barred
  4. Clearance of part only with the Collector's personal guarantee for the balance

Explanation

Warehoused goods may be cleared in part, with duty paid on the quantity actually cleared for home consumption, leaving the remainder under bond. This reflects the fundamental warehousing principle that duty liability crystallises at the time and in respect of the goods removed. Partial clearance does not require re-export of the balance.

Question 47Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

What is the general period for which goods may remain in a customs-bonded warehouse before they must be cleared, re-exported or otherwise dealt with?

  1. Three months from the date of warehousing
  2. Six months from the date of warehousing, extendable by the Collector Correct answer.
  3. One year with no possibility of extension
  4. Two years, extendable only by the Federal Board of Revenue

Explanation

The warehousing regime allows goods to remain in bond for six months from the date of warehousing, and the Collector may extend the period on sufficient cause. Goods left beyond the permitted period become liable to be sold or otherwise disposed of under the Act. The extension power is exercised by the Collector rather than the Board.

Question 48Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

A customs officer proposes to search a person suspected of concealing dutiable goods at a customs station. Which requirement must be observed before a personal search is conducted?

  1. The search must be witnessed by a magistrate in every case
  2. The officer may search on personal suspicion without any record
  3. The search may proceed only with the consent of the person to be searched
  4. The officer must record the grounds in writing and obtain authorisation from the prescribed superior officer Correct answer.

Explanation

Personal search powers under the Customs Act, 1969 are conditioned on recorded reasons and authorisation by the prescribed officer, which protects against arbitrary exercise of the power. The safeguards are mandatory and are meant to balance enforcement needs with individual liberty. Consent of the person searched is not the governing requirement.

Question 49Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

Which power allows a customs officer to stop and search a conveyance within the limits of a customs area on reasonable belief that it carries smuggled goods?

  1. Power of adjudication
  2. Power of compounding
  3. Power of arrest without warrant
  4. Power of search of conveyances Correct answer.

Explanation

The Customs Act, 1969 confers a specific power to search conveyances within the customs area where there is reasonable belief that goods liable to confiscation are being carried. Arrest, adjudication and compounding are distinct powers with their own conditions. Confusing search powers with adjudicatory powers is a common error.

Question 50Customs Law, Rules and Notifications (Customs Act, Customs Rules 2001, SROs, Orders/Circulars)

Under the Customs Act, 1969, when may a customs officer arrest a person without a warrant?

  1. When the person is concerned in an offence punishable under the Act and the officer has reasonable grounds to believe arrest is necessary Correct answer.
  2. Only with the prior written consent of the Collector in every case
  3. Only after a formal complaint has been filed before a magistrate
  4. Whenever the officer considers it administratively convenient

Explanation

Arrest without warrant is permitted where a person is concerned in an offence under the Act and the officer has reasonable grounds to believe that arrest is necessary to secure the person's presence or prevent further offending. The power is not a general administrative discretion and is subject to statutory safeguards. Prior magisterial complaint is not a precondition.