Q4 · UPPSC current affairs · 26 September 2026 · News · Rules of Origin Customs Simplification CBIC

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What is the primary objective of the Customs Administration of Rules of Origin under Trade Agreements (CAROTAR) 2020?

A To enforce strict origin verification to prevent duty evasion via third countries
B To calculate domestic inflation indices based on international freight rates
C To mandate complete bans on all bilateral imports coming from non-treaty partners
D To subsidize domestic manufacturing units through direct baseline investments

Correct answer: (a) To enforce strict origin verification to prevent duty evasion via third countries

Explanation

Option A is correct because CAROTAR 2020 establishes rules enforcing strict origin verification to ensure that preferential tariff benefits are not misused through third-country routing. The other options describe unrelated trade restrictions, economic indices, or production subsidies.

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2022 · Q74 · UPPGS

    Consider the following statements about farm subsidies in India. 1. The input subsidies in India, such as on fertilizers fall under indirect farm subsidies. 2. Reduction in Power and irrigation bills offered to farmers fall under direct farm subsidies. 3. The agricultural provisions of the World Trade Organization (WTO) though allow direct farm subsidies, prohibit indirect subsidies. 4. All subsidies provided by the governments in India fall under the indirect subsidies. Select the correct answer from the code given below:

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