Drawback conversion procedures require standardized factual reports and specified verifications for shipping bill conversions, prompting Standing Orders.
Conversion of 'free goods' shipping bills to drawback or DEEC cum Drawback shipping bills is permitted only after Commissionerates furnish standardized factual reports verifying correlation with DEEC/Advance Licence or application, existence of DGFT cancellation/rejection where relevant, supporting manufacturer compliance regarding credits or rebates and identity on shipping bills, presence of customs or agency examination and test reports, treatment of scaled down licences, DEEC examination under drawback rules, use of inputs imported on payment of duty, and documentary proof of extenuating circumstances; Standing Orders should enforce these requirements.

Excise exemption misuse prompts enforcement directive to prevent duty evasion by exporters and strengthen field vigilance.
Misuse of Notification No. 8/97-CE occurred when a 100% Export Oriented Unit cleared cotton yarn to the Domestic Tariff Area while claiming exemption for goods allegedly produced from wholly indigenous raw materials, notwithstanding the use of imported Poly Vinyl Acetate; the Department directs field formations to be vigilant to prevent such misuse and to ensure compliance with the notification's eligibility conditions.

Insurance requirement: re-warehousing transfers must be secured by insurance alongside transit bond to protect customs duty.
The circular amends prior instructions so that movements of imported goods for re-warehousing from a major port to an inland warehousing station must be secured by a transit bond together with an insurance policy to ensure adequate security for customs duty; other provisions of the earlier circular remain unchanged.

Conversion of passbook shipping bills allowed where shipping bill filed before expiry but bill of lading issued after; exporters may apply.
Conversion of passbook shipping bills to drawback shipping bills is permitted where the shipping bill was filed before the passbook scheme expired but the bill of lading or mate receipt was dated on or after expiry. This is a relaxation of Rule 13 under the powers of Rule 17. Exporters must apply individually to the Directorate of Drawback and supply a factual report from the port of shipment in accordance with Ministry instructions.

Cess payment timing revised to after checklist generation and before inspection, altering export authentication and examination steps.
Amendments revise export procedures: cess payment is required after checklist generation and before examination; the second copy of the Shipping Bill is authenticated only after export and return of the Export General Manifest from the airline; the second copy of GR 1 is authenticated at the LET EXPORT ORDER; goods may be presented at the export shed for examination and LET EXPORT without requiring the DEEC Book; and the phrase "House Airway Bill wise" is deleted.

Re-export procedural parity: Assistant Commissioner may allow re-exports and permit re-engineering of reimported goods under aligned EHTP/EPZ rules.
Notification alignment standardises EHTP/EPZ procedural provisions: the Assistant Commissioner may allow re-export; goods used for training and production remnants destroyed with Assistant Commissioner permission are exempt from duty; re-imported goods for repairs, reconditioning or re-engineering may be re-engineered; re-import due to buyer failure is permitted within one year of export; goods imported for repairs/reconditioning/re-engineering may be exported within three years. The parity with EPZ/FTZ provisions is noted and requires issuance of a public notice.

Present Market Value cap limits DEPB credit relative to domestic price; PMV verification and a short statutory acceptance period apply
The circular directs that DEPB credit be limited with reference to the Present Market Value (PMV)-the domestic wholesale/retail price inclusive of local duties, taxes and transport-rather than FOB. AR4 values may be accepted as PMV for manufacturers; permissible uplifts over AR4, MRP, or printed price lists may be used without enquiry, but market enquiry is required where declared PMV exceeds acceptable uplift. Merchant exporters must furnish dealer invoices or local price evidence when PMV cannot be otherwise determined. SIIB shall carry out PMV/FOB verification (not the assessing officer) within a short statutory period; absence of a Show Cause Notice within that period results in deemed acceptance. Shipments shall not be detained for verification.

Brand Rate of Drawback available under DEPB for reimbursement of CVD and excise on inputs upon proof and specific application.
Exporters of non-excisable goods under the D.E.P.B. scheme may obtain reimbursement of additional customs duty (CVD) on imported inputs and excise duty on indigenous inputs by applying to the Directorate of Drawback for fixation of a Brand Rate of Drawback on submission of proof of payment; payment will follow the procedure and under the provisions of the Drawback Rules, 1995, and exporters may file a DEPB-cum-Drawback Shipping Bill but cannot claim the All Industry Rate.

Duty exemption for United Nations and international organisations allows customs clearance upon nodal ministry duty exemption certificate.
Goods imported by the United Nations or international organisations for execution of projects they finance and approved by the Government of India are exempt from all customs duties where supported by a duty exemption certificate issued by the nodal ministry by an officer not below the rank of Deputy Secretary; this relief is separate from, and narrower than, exemptions under the UN (Privileges and Immunities) Act, which apply only when the UN or its agency itself imports goods for its official use.

Customs House Agent licensing reforms: assess and limit licence grants, raise employee experience and education standards.
Amendments enable Commissioners to assess and limit the annual number of temporary CHA licences using Board norms, strengthen eligibility by requiring employee work experience and minimum education, allow limited companies to change constitution, preserve licences of proprietorships and partnerships affected by death or retirement, delegate appeals to Chief Commissioners, and empower Chief Commissioners to examine records and review Commissioner orders for propriety, with application across all customs formations.

Cess on imported synthetic rubber is impermissible as additional customs duty; cess applies only to natural rubber.
Levy of cess as an additional customs duty on imported synthetic rubber is not permitted because the statutory cess under the Rubber Act is confined to natural rubber; treating that cess as an additional duty on imports lacks legal foundation and is improper, and field formations must be instructed to cease such collections.

Export of rough diamonds permitted subject to trade rules; third party exports allowed with licensing and value safeguards.
Export of rough diamonds is permitted when payment is in freely convertible currency. Third party exports are allowed under the Exim Policy and Handbook of Procedures; third party imports are prohibited and agents may only act as facilitators. REP licences must carry an endorsement on the original bill of entry to prevent reuse; customs need not reverify where the Handbook or bonded warehouse procedures apply. Exports exceeding Handbook limits must use bonded warehouse provisions. Multiple bills may be clubbed but export value must remain within the limit tied to imports. Bills of entry for imports on or after 1 April 1997 must be in the importer's name.

Fast Track Clearance expedites import clearance for eligible importers with post-clearance audit and potential penalties for violations.
The circular creates a Fast Track Clearance scheme for specified ports and importers, requiring prior registration, maintenance of a personal deposit balance and an undertaking by the importer. Bills of Entry under the scheme are specially marked and processed by a dedicated Fast Track Section permitting self-assessment and immediate payment; an appraiser issues "out of charge" without contemporaneous classification or valuation scrutiny. A Special Group conducts post-clearance audits and checks within a short timeframe, with powers to recover duties, initiate penal action, order examinations and suspend scheme benefits for violations.

Conversion of DEPB shipping bills to drawback shipping bills permitted, relaxing Rule 12 requirements and directing immediate guidance issuance.
Shipping bills for which the let export order was given between 10.9.97 and 17.10.97 may be converted from DEPB shipping bills to Drawback Shipping Bills in relaxation of Rule 12 of the Customs & Central Excise Duties Drawback Rules, 1995; Public Notices or Standing Orders should be issued immediately to guide trade and staff on the conversion.

MODVAT non availment verification: customs must link AR 5 evidence to shipping bills before claiming drawback entitlement.
Customs must verify availment of input rebate (MODVAT) by linking the sextuplicate copy of the AR 5 accompanying the consignment to the relevant shipping bill; merchant exporters buying from the open market do not avail input rebate under Rules 12(1)(b)/13(1)(b) unless AR 5 procedure is followed, and manufacturer exporters under AR 4 must indicate availment and enclose AR 5 as evidence before drawback payment.

Hazardous waste import controls require sampling, clearances and authorisation before release, with illegal shipments returnable under Basel.
For waste oil, sampling for specified contaminants is required and consignments exceeding prescribed concentrations may be released to importers only upon submission of requisite details in Form 6 under the Hazardous Wastes Rules; battery scrap may be handed over only to authorised actual users; zinc and lead ash must be analysed and consignments falling in Category 3 of Schedule 1 must not be released. Imports/exports to/from Non parties under the Basel Convention are illegal, and imports lacking Ministry permission, a State Pollution Control Board NOC, a valid import licence, or actual user authorisation are illegal; parties must accept illegal imports back within a fixed period.

Inclusion of Visakhapatnam EPZ enables Gems & Jewellery units to procure specified goods duty free and export via notified airports.
Inclusion of the Visakhapatnam Export Processing Zone expands the notification governing Gems & Jewellery to permit jewellery units in the Zone to source specified goods duty free for manufacture, brings the Zone into parity with other EPZs/FTZs for such entitlements, and designates specific airports as authorised export channels for gems and jewellery produced there, with a direction to issue a public notice to publicise the amendment.

Duty on ship stores: provisional recovery on estimated coastal consumption with refund on reconversion to foreign run.
When a foreign run vessel reverts to coastal trade, Steamer Agents must notify Customs and submit to Preventive Department inventorying of bonded stores and crew private property. Agents may pay duty on all stores or pay duty on an estimated quantity to be consumed, leaving the remainder in bond under Customs seal. Bills of Entry must be filed promptly; assessment, duty collection and lab testing for bunkers are to follow on a provisional basis, and agents may seek refund upon reconversion to foreign run supported by Preventive inventories and the original Bill of Entry.

Inhouse testing recognition permits reliance on certified export test results to log DEEC/Pass Book benefits, subject to surprise Customs checks.
Manufacturer exporters may rely on recognized inhouse testing facilities (GMP, ISI/CSIR/Ministry approval, or ISO 9002) by enclosing inhouse test certificates with the shipping bill to avoid Customs sample drawal for DEEC and Pass Book logging. Alternatively, certified Central Excise test reports showing required technical characteristics, accompanied by the factory examination report, may be used to waive sampling; such reports are valid for six months. Customs retains the right to draw samples or withdraw these facilities if adverse information arises.

Temporary customs area declaration permits commissioners to designate locations for loading or unloading under emergency powers.
Commissioners are authorised, in emergencies, to temporarily declare any place within the port or airport jurisdiction as a customs area for loading or unloading goods, exercising relevant statutory emergency powers; the Board has rescinded paragraph 7 of the earlier circular to permit this operational flexibility in import and export exigencies.