(1)

Where in respect of any Article a preferential rate of revenue 'duty is specified in the First Schedule, or is admissible by virtue of a notification under section 25 of the Customs Act, 1962, (52 of 1962) the duty to be levied and collected shall be at the standard rate, unless the owner of the article claims at the time of importation that it is chargeable with a preferential rate of duty, being [the produce or manufacture of such preferential area] [Substituted by Act 26 of 1978, Section 2,for certain words (w.e.f. 1-9-1978).] as is notified under subsection' (3) and the article is determined, in accordance with the rules made under sub-section (2), to be such produce or manufacture.

(2)

The Central Government may, by notification in the Official Gazette, make [rules] [For the Customs Tariff (Determination of Origin of Other Preferential Areas) Rules, 1977 - see Gazette of India, 1-7-1977, Pt. II. 3(i), Ext., p. 1394] for determining if any article is [the produce or manufacture of any preferential area] [Substituted by Act 26 of 1978, Section 2,for certain words (w.e.f. 1-9-1978).].

(3)

For the purposes of this section and the First Schedule, [preferential area] [Substituted by Act 26 of 1978, Section 2,for certain words (w.e.f. 1-9-1978).] means any country or territory which the Central Government may, by Notification from in the Official Gazette, declare to be such [area] [For declaration of countries specified to be preferntial Areas) Rules, 1977 - see Gazette of India. ].

(4)

Notwithstanding anything contained ins sub-section (1), where the Central Government is satisfied that, that in the interests of trade including promotion of exports, it is necessary to take immediate action for discontinuing the preferential rate, or increasing the preferential rate to a rate not exceeding the standard rate, or decreasing the preferential rate, in respect of an article specified in the First Schedule, the Central Government may, by notification in the Official Gazette, direct an amendment of the said Schedule to be made so as to provide for, such discontinuance of, or increase or decrease, as the case may be, in, the preferential rate.

(5)

Every notification issued under sub-section (3) or sub-section (4) shall, 'as soon as may be after it is issued, be 'laid before each House of Parliament.