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Topic 189 · Economy, Budget & Banking

Basic Customs Duty Cut on Crude Edible Oils

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Revise the 12 points first Book 1 RATNA

Core Trigger: From 24 September 2026 the Centre cut Basic Customs Duty on crude edible oils by a Finance Ministry notification.
Aim: The cut aims to cool edible-oil prices before the festive season.
Current Head: Nirmala Sitharaman is the Union Finance Minister, and the Department of Revenue administers customs.
Key Term: Basic Customs Duty (BCD) is the main duty on imports, levied ad valorem under the Customs Tariff Act, 1975.
Rates: Crude sunflower oil duty fell from 10 per cent to nil; crude soybean and palm oil fell from 10 per cent to 5 per cent.
Differential: Refined-oil duties were also cut, keeping a 19.25 per cent crude-refined differential to protect domestic refiners.
India Link: India imports much of its edible oil, so duty changes quickly affect consumer prices.
Headquarters: The Central Board of Indirect Taxes and Customs works from North Block, New Delhi.
Founded: The Customs Act, 1962 came into force on 1 February 1963, and the Customs Tariff Act, 1975 sets the tariff rates.
Landmark: The Customs Act, 1962 replaced the Sea Customs Act, 1878, consolidating customs law.
Articles: Article 265 says no tax can be levied except by authority of law; Union List Entry 83 covers duties of customs.
Doctrine: Section 25 of the Customs Act empowers the Centre to exempt goods from duty by notification in the public interest.

Question 1 of 10

From 24 September 2026 the Centre cut which duty on crude edible oils?

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Answer: (B) Basic Customs Duty

Core Trigger: From 24 September 2026 the Centre cut Basic Customs Duty on crude edible oils by a Finance Ministry notification.From Book 1 RATNA, topic 189, point 1

Question 2 of 10

The edible-oil duty cut aims to cool prices ahead of what?

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Answer: (B) The festive season

Aim: The cut aims to cool edible-oil prices before the festive season.From Book 1 RATNA, topic 189, point 2

Question 3 of 10

Which Finance Ministry department administers customs?

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Answer: (C) Department of Revenue

Current Head: Nirmala Sitharaman is the Union Finance Minister, and the Department of Revenue administers customs.From Book 1 RATNA, topic 189, point 3

Question 4 of 10

Basic Customs Duty is levied in which manner?

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Answer: (D) Ad valorem

Key Term: Basic Customs Duty (BCD) is the main duty on imports, levied ad valorem under the Customs Tariff Act, 1975.From Book 1 RATNA, topic 189, point 4

Question 5 of 10

Consider: 1. Crude sunflower oil duty fell from 10 per cent to nil. 2. Crude soybean oil duty fell from 10 per cent to nil. Which is/are correct?

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Answer: (A) Only 1

Rates: Crude sunflower oil duty fell from 10 per cent to nil; crude soybean and palm oil fell from 10 per cent to 5 per cent.From Book 1 RATNA, topic 189, point 5

Question 6 of 10

What crude-refined duty differential was kept to protect domestic refiners?

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Answer: (B) 19.25 per cent

Differential: Refined-oil duties were also cut, keeping a 19.25 per cent crude-refined differential to protect domestic refiners.From Book 1 RATNA, topic 189, point 6

Question 7 of 10

The Central Board of Indirect Taxes and Customs works from which building?

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Answer: (D) North Block

Headquarters: The Central Board of Indirect Taxes and Customs works from North Block, New Delhi.From Book 1 RATNA, topic 189, point 8

Question 8 of 10

On what date did the Customs Act, 1962 come into force?

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Answer: (B) 1 February 1963

Founded: The Customs Act, 1962 came into force on 1 February 1963, and the Customs Tariff Act, 1975 sets the tariff rates.From Book 1 RATNA, topic 189, point 9

Question 9 of 10

The Customs Act, 1962 replaced which earlier law?

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Answer: (A) Sea Customs Act, 1878

Landmark: The Customs Act, 1962 replaced the Sea Customs Act, 1878, consolidating customs law.From Book 1 RATNA, topic 189, point 10

Question 10 of 10

Consider: 1. Article 265 bars any tax except by authority of law. 2. Union List Entry 83 covers duties of excise. Which is/are correct?

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Answer: (A) Only 1

Articles: Article 265 says no tax can be levied except by authority of law; Union List Entry 83 covers duties of customs.From Book 1 RATNA, topic 189, point 11

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