Answer Keys - Paper-II (Customs with Books)
Departmental Examination Of Inspectors Of Central Excise Held On 21.06.2016
MAX. MARKS: 100
Q.No.(1) This question consists of fifteen multiple choice Questions. Identify the correct
choice. All questions are compulsory. Each question is of one mark. A question
may have more than one correct answer. [15x 1= 15 marks]
(i) Which of the following commodities is not subjected to payment of Export Duty at
the time of export?
(a) Iron Ore Pallets
(b) Bauxite ( natural) calcined
(c) Snake skin
(d) Ferrous Waste and Scrap
(e) Gold Ore
(ii) What is the time limit prescribed under the Customs Act, 2016 as on date for
issuance of demand notice U/s 28 of the Customs Act, 1962 in cases where fraud,
suppression of facts, willful mis-statement is not involved?.
(a) Six months
(b) One year
(c) Two Years
(d) Three Years
(e) Five years
(iii) Which of the following Rules have been substituted with new Rules w.e.f.
01.04.2016?
(a) Customs (Import of Goods at Concessional Rate of Duty for Manufacture of
Excisable Goods) Rules, 1996
(b) Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
(c) Customs, Central Excise Duties and Service Tax Drawback Rules, 1995.
(d) Foreign Privileged Persons (Regulation of Customs Privileges) Rules, 1957.
(e) None of the above
(iv) What is the quantum of pre deposit for a person filing second appeal before CESTAT
when 7.5% of the duty has already been pre deposited by him at the time of filing
first appeal before Commissions (Appeals).
(a) 10% of duty.
(b) 5% of duty
(c) 2.5 % of duty
(d) NIL
(e) None of the above.
(v) A person can make an application to the settlement commission under Custom Act?
(a) Before issue of show cause notice.
(b) Before adjudication.
(c) Within thirty days from the date of issue of O-I-O.
(d) Before filing appeal.
(e) None of the above
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(vi) Which of these is/are not an adjudicating authority under Customs Act, 1962?
(a) Commissioner of Customs
(b) Principal Commissioner of Customs
(c) Commissioner (Appeals)
(d) Assistant Commissioner of Customs
(e) Tribunal
(vii) As per section 11 of the Customs Act, 1962, which of these is a purpose for which
Central Government may prohibit (absolutely or conditionally) the importation /
exportation of any specified goods?
(a) the prevention of smuggling
(b) the conservation of foreign exchange and the safeguarding of balance of payments
(c) the conservation of exhaustible natural resources
(d) the protection of patents, trademarks, copyrights, designs and geographical
indications
(e) All of the above
(viii) Which section of the Customs Act, 1962 provides for levy of Customs duty on import
and export of goods?
(a) Section 3
(b) Section 12
(c) Section 14
(d) Section 28
(e) Section 17
(ix) Where shall an appeal against the Order passed by the CESTAT relating to the
valuation of goods shall lie ?
(a) High Court
(b) Supreme Court
(c) Central Government
(d) CESTAT cannot pass an order on valuation matters
(e) Both high court and supreme court
(x) Under Section 14 of the Customs Act 1962, the transaction value shall be calculated
with reference to the rate of exchange as in force on the date on which:
(a) Date of Invoice
(b) the date of issuance of the Bill of lading
(c) Date of filing IGM
(d) Date of filing the Bill of Entry
(e) Date of Assessment of Bill of Entry
(xi) As on date, the On-Site Post Clearance Audit (OSPCA) has been made operational by
the Board for:
(a) ACP clients
(b) AEO clients
(c) All the manufacturer-importers with Customs duty payments in excess of Rs.1 Cr
per annum
(d) All importers and exporters
(e) Public sector undertakings
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(xii) Under what situation, SCN transferred to the call book can be taken out of call book?
(a) When the grounds on basis of which a SCN has been transferred to call book, ceases
to exist.
(b) It depends upon the overall pendency position of SCNs in the Commissionerate.
(c) SCN can be kept in the call book for five years.
(d) SCN, when transferred to call book, cannot be taken out of call book any point of
time.
(e) SCN can be taken out of the call book and adjudicated as per the order of the Chief
Commissioner.
(xiii) What is the quantum of pre-deposit for the Department at the time of filing
application (appeal) (w. e. f. 06.08.2014) before the Commissioner (Appeals):-
(a) 5% of the duty, in case where duty or duty and penalty are in dispute; or penalty,
where such penalty is in dispute (aggregate of all penalties imposed)
(b) 7.5% of the duty, in case where duty or duty and penalty are in dispute; or penalty,
where such penalty is in dispute (aggregate of all penalties imposed)
(c) 10% of the duty, in case where duty or duty and penalty are in dispute; or penalty,
where such penalty is in dispute (aggregate of all penalties imposed)
(d) Nil
(e) None of the above
(xiv) Export Income earned by which of the following type of manufacturing Unit is
normally eligible for exemption from payment of Income Tax under the Income Tax
Act, 1961?
(a) Export Oriented Unit
(b) Jewellery manufacturing Unit in DTA
(c) SEZ unit
(d) Garment Manufacturing Unit
(e) None of the above
(xv) Under which of the following Export Promotion Schemes, Capital Goods are allowed
to be imported duty free?
(a) Export Promotion Capital goods scheme
(b) Export Oriented Unit Scheme
(c) Software Technology Park Scheme
(d) Special Economic Zone Scheme
(e) All of the above
Answer Key
(i) (a) (ii) (c) (iii) (a)
(iv) (c) (v) (b) (vi) (c) & (e)
(vii) (e) (viii) (b) (ix) (b)
(x) (d) (xi) (a) (xii) (a)
(xiii) (d) (xiv) (c) (xv) (e)
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Q.No.(2) Write the full form of the following Abbreviations. (0.5x10=5)
(a) PNR (f) EPCG
(b) WCO (g) DGEP
(c) CONCOR (h) FICN
(d) SEIS (i) PMLA
(e) DFRC (j) ICEGATE
Answers:
(a) Passenger Name Record
(b) World Customs Organization
(c) Container Corporation of India
(d) Service Export From India Scheme
(e) Duty Free Replenishment Certificate
(f) Export Promotion Capital Goods (Scheme)
(g) Directorate General of Export Promotion
(h) Fake Indian Currency Notes
(i) Prevention of Money Laundering Act, 2002
(j) Indian Customs Electronic Commerce/Electronic Data interchange (EC/EDI)
Gateway
Q.No.(3) Name the Allied Act applicable to the Import/Export of following commodities.
Answer any five. [1x5=5]
(a) Live Animals (f) Live Plants
(b) Detonators (g) Radioactive substances
(c) Insecticides (h) Medicines
(d) Antiques (i) Chemical Weapon
(e) Hazardous Chemicals (j) Pistols
Answers:
(a) Livestock Importation Act, 1898 as amended.
(b) Explosives Act, 1884; Explosives Rules, 2008
(c) Insecticide Act, 1968
(d) The Antiquities and Art Treasures Act, 1972
(e) Environmental Protection Act, 1986 and the Manufacture, Storage and Import of
Hazardous Chemicals Rules, 1989
(f) Destructive Insects and Pests Act, 1914 and the Plants Quarantine (Regulation of
Import into India) Order, 2003
(g) The Atomic Energy Act, 1962 and the Atomic Energy (Radiation Protection) Rules,
2004
(h) The Drug and Cosmetics Act, 1940
(i) The Chemical Weapons Convention Act, 2000
(j) The Arms Act, 1959
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Q.No.(4) Define any five of the following terms under Customs Law? Answer may be
restricted to 50 words. Also write the legal Authority wherever applicable.
[3x5=15]
(a) Anti-dumping duty (f) Drawback
(b) Baggage (g) Identical goods
(c) Advance Ruling (h) Single Window Concept
(d) EOU Scheme (i) Authorized Economic Operator
(e) EPCG Scheme (j) Risk Management System
Answers:
(a) Anti-dumping Duty:
Anti-dumping duty is imposed on imported goods when goods are exported by certain
exporters at price below the prices which it normally charges on the same goods sold in its
domestic market. In other words, it is imposed when goods are exported at price lower than
its normal price.
It is intended to protect the domestic industry from unfair competition from the
foreign suppliers.
The legal provisions for imposition of anti-dumping duty are contained in Section 9A
of the Customs Tariff Act, 1975 and the Customs Tariff (Identification, Assessment and
Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules,
1995 issued thereunder.
(b) Baggage:
The term “baggage” has been defined in section 2 (3) of the Customs Act, 1963.
It includes unaccompanied baggage but does not include motor vehicles. Section 77 to
section 81 of the Customs Act, 1962 contains legal provisions dealing with import or export
of baggage.
In exercise of power under these sections, the Government has prescribed the form of
declaration and has also issued Baggage Rules, 2016. At present, the tariff rate of duty on
baggage is 35% + 1% Education Cess+ 2% Secondary and Higher Education Cess. The free
baggage allowance is Rs.50000/- for Indian origin passenger and Rs. 15000 for foreign
tourists.
(c) Advance Ruling:
Recognizing the need for foreign investors to be assured in advance of their likely
indirect tax liability in respect of Customs Duties, Central Excise duties and service tax, a
scheme of Advance Rulings has been incorporated in the Customs Act, 1962, Central Excise
Act, 1944, and Finance Act, 1994.
The objective of Scheme is to help the applicant in planning their activities which are
liable for payment of Customs, or Central Excise or service tax, well in advance by obtaining
advance ruling, which is binding in nature.
It also brings certainty in determining the duty/tax liability, as the ruling given by the
Authority for Advance Ruling is binding on the applicant as well as Government authorities.
Further, it helps in avoiding long drawn and expensive litigation at a later date. Seeking an
advance ruling is inexpensive and the procedure is simple and expeditious.
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(d) EOU Scheme
The words EOU Scheme stands for Export Oriented Unit Scheme. It is an export
promotion scheme in which unit is allowed to be set up for undertaking activities such as
manufacturing, repairing, re-engineering, rendering of services, software development etc. for
export.
Such units are allowed to undertake the designated activities in custom bonded premises
and allowed to import or procure capital goods, raw materials, consumables, material handling
equipment etc. duty free.
While these unit mainly produce/process / render the services for export, but they are
allowed to make certain limited sales in Domestic tariff area on payment of appropriate duty.
These units are required to achieve positive Net Foreign Exchange Earning at the end of five year
in discharge of their export obligation.
The legal provision in respect of this scheme are contained in the Chapter 6 of the Foreign
Trade Policy & HOP, both issued in terms of FT (D & R) Act, 1992 and the exemption notification
issued by the CBEC allowing duty free import /procurement of raw materials, capital goods,
consumable, equipment’s, tools, etc.
(e) EPCG Scheme
The term EPCG stands for Export Promotion Capital goods. It is an export promotion
scheme under which manufacturing unit/service provider are allowed to import / to procure
domestically Capital goods on payment of nil duty/ concessional rate of duty for using the
same for production of goods exported/ service exported.
The basic enabling provisions of EPCG Scheme are contained in Chapter 5 of the Foreign
Trade Policy and Handbook of Procedure, both issued by the Ministry of Commerce under the
Foreign Trade (Development & Regulation) Act, 1992. The CBEC has issue exemption notification
allowing full/partial exemption from payment of duty on capital goods imported/procured
locally under EPCG license. The unit availing benefit of EPCG Scheme is required to achieve
specified export obligation in certain specified period from date of importation/procurement of
capital goods under the Scheme.
(f) Drawback:
Duty Drawback is the rebate of duty paid on the imported material or excisable material
used in the manufacturing of goods exported. The exporter of goods may claim drawback or
refund of excise duty, customs duty and service tax paid /suffered on inputs or services
consumed during the manufacturing of the goods, which has been exported. The concept is based
on the principle that only goods has to be exported, not the duties & taxes.
Under Customs Act, 1962, Section 74, 75, 75A and 76 deals with Drawback of duty. While
section 74 allows drawback on export of duty paid imported goods, the section 75 allows
drawback of duty paid on inputs and input services, which have been used in the manufacture of
export goods. In exercise of powers given under Section 74 and 75, the Government has issued
the following rules:-
Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995.
the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995
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(g) Identical Goods
The term “identical goods” has been defined under rule 2 (d) of the Customs valuation
(Determination of Value of Imported Goods) Rules, 2007. It means imported goods, which are
same in all respect, including physical characteristics, quality and reputation as the goods being
valued except for minor difference inn appearance that do not affect the value of the goods; and
produced in the country in which the goods being valued were produced and by the same person.
When declared value of any consignment is rejected by the Customs Authority under Rule
12 of the said Customs valuation rules, then assessable value is required to be determined in
terms of valuation rules by sequentially following these rules. Under rule 4 of the said valuation
rules, the assessable value of goods in question is determined in terms of value of identical goods
imported in the past.
(h) Single Window:
To ensure transparency and faster clearance of the import/export goods which require
permission from other regulatory agencies, Indian Customs has introduced the concept of single
window for the clearance of import and export goods in 2014.
Under this concept, a common platform to import or export trade is provided to meet
requirements of all regulatory agencies (such as Animal Quarantine, Plant Quarantine, Drug
Controller, Textile Committee etc.) and to file a common declaration form, which also consist of
details required by other regulatory agencies.
The filing of Single common integrated declaration electronically do away the need for the
importer /exporter to file separate documents with other regulatory agencies to obtain their
clearances. The clearance or NOC from the relevant regulatory agency is obtained electronically,
thus expediting the clearance of import /export goods. It is basically a trade facilitation measures.
The benefits of Single Window Scheme include ease of doing business, reduced costs,
enhanced transparency, reduced duplicity and cost of compliance and optimal utilization of
resources.
(i) Authorised Economic Operator
Authorized Economic Operator (AEO) is basically a business entity engaged in global
supply chain such as importer, exporter, transporter, warehouse owner, cargo forwarder, carrier
etc.
An AEO is certified under Authorised Economic Operator (AEO) Scheme, devised by
Government in pursuant to guidelines of WCO adopted in SAFE FoS (Framework of Standard) in
2005.
The basic purpose of scheme is to ensure security in global supply chain from the point of
origin i.e. the point of export to the point of import in the receiving country.
The objective of the AEO Programme is to provide businesses with an internationally
recognized quality mark which will indicate their secure role in the international supply chain
and that their Customs procedures are efficient and compliant. An entity with an AEO status can,
therefore, be considered a 'secure' trader and a reliable trading partner.
The AEO programme in India is governed by guidelines issued vide CBEC Circular No.
28/2012-Customs, dated 16.11.2012 as amended.
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(j) Risk Management System
‘Risk Management System’ (RMS) has been introduced in Customs locations where the EDI
System (ICES) is operational.
It is a modern approach and is based on careful evaluation of risk, assessment of various
risk, their probability of occurrence of risk and severity of its consequence thereof, and treatment
to import/export consignments based on risk evaluation.
It is a significant departure from traditional approach where any import/export
consignment was subjected to examination. Under this approach, depending on the presence of
risk indicators in the import/export consignment/transaction, decision is taken by system to
examine certain consignments only, which are considered to be of high risk. Thus, it ensures
optimal utilization of resources namely manpower, machines, time, infrastructure etc.
As the risks posed are of dynamic nature, the system is continuously monitored and
evaluated and risk criterion are also defined/ modified accordingly.
Q.No.(5) For the following purposes, find out the relevant section of the Customs Act,
1962 and applicable rules/ Regulation issued under the Customs Act, 1962.
Answer any five. [2x5=10]
(i) Drawback on re-export of imported goods
(ii) Filing of Bill of Entry
(iii) Filing of Shipping Bill
(iv) Filing of IGM
(v) Filing of EGM
(vi) Attachment of property of defaulters for recovery of Customs Dues
(vii) Drawback on export of manufactured goods.
(viii) Customs valuation of imported goods.
Answers:
(i) Section 74 of Customs Act, 1962 and Re-export of Imported Goods (Drawback of
Customs Duties) Rules, 1995
(ii) Section 46 of Customs Act, 1962, Bill of Entry (Forms) Regulation, 1976; and Bill of
Entry (Electronic Declaration) Regulation, 2011
(iii) Section 50 of Customs Act, 1962; Shipping Bill and Bill of Export (Forms) Regulation,
1991; and Shipping Bill (Electronic Declaration) Regulation, 2011
(iv) Section 30 of Customs Act, 1962
(v) Section 41 of Customs Act, 1962
(vi) Section 142 of Customs Act, 1962; Customs (Attachment of Property of Defaulters for
Recovery of Government Dues) Rules, 1995
(vii) Section 75 of Customs Act, 1962; Customs, Central Excise Duties and Service Tax
Drawback Rules, 1995
(viii) Section 14 of Customs Act, 1962; Customs Valuation (Determination of Value of
Imported Goods) Rules, 2007
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Q.No.(6) Fill in the blanks. Attempt any five. [2x5= 10]
(a) Officers of Navy are empowered and required to assist Customs Officers in the
execution of the Customs Act, 1962 under section _______ of the Customs Act, 1962.
(b) The Customs Officers are empowered under section ………………………………. to take
samples from the goods being passed through the customs area for export from India
or import into India for examination or testing.
(c) Declared value of the imported goods can be rejected under…………………………of the
________ rules.
(d) A person arrested under Customs Act can be released on bail by the Customs Officer
under ………………………….. / cannot be released on bail by the Customs Officer as
provided under under………………………………………...
(e) The Customs officer may issue an order in writing under ………………………………… to
any person to attend and witness the personal search of a person in a Customs area.
(f) Interest is required to be paid to the claimant of drawback if it is not paid within a
period of ……………..months.
(g) A conveyance which has brought any imported goods or has loaded any export goods
at a Customs station cannot depart from that Customs station until a written order
has been given by the proper Customs officer as provided under ………………………..
Answers:
(a) Section 151(b) of Customs Act, 1962
(b) Section 144 of Customs Act, 1962
(c) Rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules,
2007
(d) Section 104(3) of Customs Act, 1962
(e) Section 102(4) of Customs Act, 1962
(f) One
(g) Section 42 of Customs Act, 1962
Q.No.(7) A merchant exporter files a shipping bill for the export of a consignment of 1500
pairs of Leather Shoes for adults at the FOB price of Rs. 1000/- per pair. Total
FOB of the shoes being exported is Rs. 15,00,000/-. The Drawback schedule for
the leather shoes is as follows:-
Tariff Description of goods Unit Drawback when Cenvat facility Drawback when Cenvat
Item has not been availed facility has been availed
Drawback Rate Drawback cap Drawback Drawback cap per
per unit in Rs. rate unit in Rs.
640301 Leather shoes for Pair 9.1% 260 2.5% 71.4
adults namely boots
and half boots
In the light of the above answer the following:
(a) What shall be the rate of duty drawback applicable in terms of percentage? [1 marks]
(b) What shall be the amount of drawback admissible to the exporter? [2 marks]
(c) What shall be the amount of drawback admissible to the exporter if he is a central excise
registrant unit and is availing CENVAT facility? [2 marks]
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Answers:
(a) 9.1%
(b) Rs.1,36,500/- [Explanation: 9.1% of Rs.15,00,000/-= 136500/- or 260x 1500= 3,90,000/-
whichever is minimum]
(c) Rs.37,500/- [Explanation: 2.5% of Rs.15,00,000/-= 37500/- or 71.4 x 1500= 1,07,100/-,
which is minimum]
Q.No.(8) Consider the following situation:-
Assume that you are working as Inspector in the Import shed & have responsibility for
examination of the goods. A Bill of entry declared to contain 100 bags of Ammonium
Sulphate is marked to you. On careful examination of goods you find that the goods are
Ammonium Nitrate, not Ammonium Sulphate as mentioned in the bill of entry.
You also find Invoice inside the consignment. On Invoice, the CIF value & Consignment
shown in 5000 US$, whereas the value declared on bill of entry is 2000 US$. Assuming
following:-
Rate of exchange 1 US$ = 50 Rs., BCD =10%, CVD=12%, Secondary & Higher Education
Cess = Nil, Education Cess = Nil, SAD = 0%.
Assume that rate of duty on Ammonium Sulphate and Ammonium Nitrate
In the light of above, find out the following:-
(a) Correct Classification of Ammonium Sulphate and Ammonium Nitrate?[2.5x2=5]
(b) Declared Assessable Value and Revised Assessable Value of Imported goods. [5]
(c) Calculate the differential duty short paid by the Importer? [5]
(d) List all relevant legal provisions of the Customs Act, 1962 and rules issued
thereunder which you will be applying in the Show Cause to be issued to the
importer in this case. [5]
(e) Draft charging paragraph of the SCN indicating cause of action against the
Importer? [5]
Answers:
(a) Ammonium Sulphate: CTH- 31022100
Ammonium Nitrate: CTH- 31023000
(b) Declared Assessable Value = Rs. 1,01,000/- [1% landing charges]
Revised Assessable Value = Rs. 2,52,500/-
(c) Difference in A.V. = Rs. 1,51,500/-
BCD @ 10% = Rs. 15,150/-
(A.V. + BCD ) = Rs. 1,51,500/- + Rs. 15,150/- = Rs. 1,66,650/-
CVD @ 12% of (A.V. + BCD) = Rs. 19,998/-
Total differential duty [BCD + CVD] = Rs. 35,148/-
(d)
Rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules,2007
Rule 3 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007
Section 28 of Customs Act, 1962
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Section 28AA of Customs Act, 1962
Section 110 of Customs Act, 1962
Section 111(m) of Customs Act, 1962
Section 112(a) of Customs Act, 1962
Section 46(4) of Customs Act, 1962
Indian Trade Classification (Harmonised System) read with section 11 of the Customs Act,
1962
(e) Now, therefore, M/s XXX is hereby required to show cause to the Assistant/Deputy
Commissioner, XXXXXXXXX within thirty days of the receipt of this notice as to
why;
a) The imported 100 bags of Ammonium Nitrate weighing XXXXXX kgs having total
Assessable Value of Rs. 2,52,500/- should not be absolutely confiscated under
Section 111(m) of Customs Act, 1962 read with ITC (HS);
[Note: Import of Ammonium Nitrate is restricted and require prior permission from
controller of explosive as per the condition prescribed in ITC (HS)]
b) The declared value of the imported Ammonium Nitrate declared in the B/E No.
XXXX dated XXXX should not be rejected under rule 12 of Customs Valuation
(Determination of Value of Imported Goods) Rules, 2007 and re-determined under
rule 3 of the said Rules read with Section 14 of Customs Act, 1962;
c) The differential Customs Duty amounting to Rs.35,148/- (BCD Rs.15,150/- + CVD
Rs.19,998/-) short paid on the seized Ammonium Nitrate should not be demanded
and recovered under Section 28 of the Customs Act, 1962;
d) the interest on the duty so paid in short should not be demanded and recovered
under Section 28AA of the Act ibid.
e) A penalty should not be imposed under Section 112(a) of the Customs Act, 1962 for
mis-declaration of the description and suppression of value of the imported goods
with intent to evade payment of Customs duty and avoiding licensing restriction
under ITC (HS) issued under FT (D & R) Act, 1992.
Q.No.(9) State whether the following statements are True or False [1x10=10]
(i) An advance authorization is transferable after the fulfillment of Export Obligation.
(ii) Anyone involved in the international supply chain that undertakes Customs related
activity in India can apply for AEO Status irrespective of size of the business.
(iii) As per section 87 of the Customs Act, 1962, any imported stores on Board a vessel
(other than stores to which section 90 applies) may, without payment of duty, be
consumed thereon as stores during the period such vessel is on coastal run.
(iv) Appeals against orders of Commissioner (Appeals) relating to duty drawback
cannot be filed before the Tribunal (CESTAT).
(v) As per section 13 of the Act, only when any imported goods are pilfered before the
assessment of the Bill of Entry, the importer shall not be liable to pay the duty
leviable.
(vi) Goods under Export Promotion Schemes including EOU Scheme cannot be
imported into India through Courier.
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(vii) Drawback under Section 75 of the Customs Act, 1962 is not allowed in respect of
goods whose export value is less than the value of the imported materials used in
its manufacture.
(viii) Any advance ruling pronounced by the authority under Section 28 I of the Customs
Act, 1962 shall not be binding on the applicant who had sought it.
(ix) Under the Customs Act, 1962, the Commissioner of Customs has been designated as
the Compounding authority.
(x) A summons under Section 108 of the Customs Act, 1962 can be issued by any
Gazetted Officers of Customs.
Answers:
(i) True
(ii) True
(iii) False
(iv) True
(v) True
(vi) False
(vii) True
(viii) False
(ix) False
(x) True
***
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