Tariff Rate Quotas govern preferential imports from Sri Lanka, requiring quota certificates and designated port clearance.
The circular sets procedures for operating Tariff Rate Quotas under the Indo Sri Lanka FTA: Sri Lankan designated authorities allocate quotas and issue quota allocation certificates and Certificates of Origin; Indian monitoring is by designated Customs and the Tea Board/Textile Committee at specified ports. The Bill of Lading/Air Way Bill date determines quota year eligibility. Quality control, sampling, bonding, detention and penal provisions govern tea imports; RMG imports require TRQCs, are restricted to chapters 61-62, follow conversion factors when fabrics are sourced from India, must enter via designated ports, and disallow high sea sales or quota carry over.

One-man committee oversight established to quantify duty foregone and mandate bi-monthly recovery and vigilance reporting to the court.
Member (Customs) will act as a one-man committee with the Director General (Inspection) responsible for quantifying duty foregone, supervising recoveries, transferring relevant files, monitoring recoveries on a case-by-case basis and furnishing bi-monthly progress reports to Member (Customs) for filing in the High Court; the Director General (Vigilance) will handle fixation of responsibility for loss of revenue and receive complete investigation reports from Commissioners, also furnishing bi-monthly progress reports for consolidation and Court filing.

DEPB registration and verification: system enforces EDI registration, verifies export linkage, and blocks claims lacking sufficient DEPB balance.
Electronic ICES processing for DEPB exemptions requires prior verification of original DGFT issued DEPBs against shipping bills and mandatory registration of DEPBs in the EDI system with DGFT transmitted IEC/PAN details. Registration generates a Registration Number for debiting and Release Advices; TRAs permit inter station use and generate TRA registration numbers. The system debits Duty Credit and Export FOB ledger balances when exemptions are claimed, blocks BE submission if balances are insufficient, and routes DEPB claim B/Es to Group VII A for appraisal, audit, and final assessment. Manual B/Es may use DEPBs but debits must be recorded manually and entered into the system.

Import prohibition on waste oil: staged screening and sequential testing required to classify fuel oil and off spec consignments.
Import of waste oil is prohibited and the seven parameters previously prescribed apply only to waste oil, not to fuel oil, LSHS or LSWR. Customs must apply a staged testing regime for off spec fuel oils: initial screening for acidity (nil) and ash ( 0.1%); if screening fails, test heavy metals (allowable limits by IIP) and classify as waste oil if exceeded; if heavy metals are within limits, perform AOX analysis for organic halides and, if present, analyse for PCB. BIS IS 1593/82 and refinery specifications are reference standards.

Duty drawback for embroidered silk garments affirmed; embroidery value must be excluded from f.o.b. and declared separately.
Embroidery on silk garments does not bar entitlement to drawback under SS No.62.06 because that entry rebates duty on the input silk; embroidered garments (including with metallised yarn) qualify for drawback under SS No.62.06 provided the value of embroidery, beads and sequins is excluded from the total f.o.b. value and declared separately on shipping bills.

Validity of brand rate letters extended to annual term, with All Industry Rate cases limited and limited extensions permitted.
Brand rate letters will be issued with a validity of one year. If the brand rate includes an element of the All Industry Rate, validity is restricted to 31st May (or the date the Drawback Schedule is superseded); exporters may seek a written extension up to 31st August, but no further extension beyond these limits will be granted. These rules apply to brand rate letters issued after this Circular and amend existing Board instructions.

Food safety clearance requirements: targeted checks and selective testing govern imports, with high risk consignments subject to mandatory public health testing.
Customs shall conduct specified pre clearance checks of transport conditions, physical appearance and labelling compliance; perishable goods may be cleared on storage and certificate-based assurances or sampled if not for direct use and stored under refrigerated bond pending tests. Non perishable products are split into high risk items, which require PHO testing and no objection certificates, and other items subject to a random testing regime, with unsampled consignments cleared after prescribed checks. Where PHOs are absent, Customs will sample and use authorised laboratories; repeated failures will be recorded in a Customs database and reported to health authorities.

All Industry Rate drawback eligibility affirmed for DFRC exports, subject to Central Excise portion and no cenvat.
Exports under the DFRC Scheme during 1.4.2000-31.5.2000 are eligible for AIR of Drawback equivalent to the Central Excise duty portion on inputs where CVD was paid, provided no cenvat was availed, at the rates specified in the table to Notification No. 31/99-Customs (NT).

Drawback fraud detection: alerting stronger verification of export descriptions, valuations and inspection reports to prevent undue claims.
Alert regarding detection of drawback fraud where exporters misdeclared old and used garments and carpet leftovers, declared artificially low FOB values, and filed examination reports within minutes indicating no proper inspection. The circular directs field formations to strengthen verification of export descriptions, valuations and physical examinations to prevent recurrence and to ensure integrity of examination reports and customs inspection procedures.

DEPB scrip verification time limit requires completion within three working days and limits repeat document demands.
Verification of DEPB scrips must be completed and returned to exporters within three working days of submission; Commissioners should nominate a Senior Officer to ensure daily compliance. Routine export documents need not be re-produced during verification unless specific recorded reasons justify detailed scrutiny, and such scrutiny must be authorised by an officer not below the rank of AC/DC of Customs.

Detection of export frauds prompts urgent activation of anti-smuggling units and advisories to customs stations nationwide.
The Chairman directed customs stations to issue a general alert and to activate anti smuggling units, SIB, and CIUs so that field formations adopt comparable vigilance in detecting and preventing export frauds, and requested immediate implementation of these directions.

Drawback entitlement for man-made fabrics clarified: all-industry rates apply where processing duty is bonded or rebated without Modvat.
All-industry drawback rates for man-made fabrics exclude processing-stage Central Excise duty; the All-Industry Rate is admissible when processing duty is bonded under rule 13(1)(b) or rebated under rule 12(1)(b), provided Modvat credit has not been availed and proof of non-availment is produced or a Special Brand Rate is sought. The rate also applies where Modvat is taken on fibre/POY but duty is paid on yarn for exported grey fabric. These instructions extend to exports under the DFRC scheme, which are subject to Central Excise allocation of drawback rates.

Legal undertaking (LUT) acceptance in lieu of bank guarantee enables clearance of PSC re export imports without BG insistence.
Acceptance of a Legal Undertaking (LUT) in lieu of a Bank Guarantee (BG) is authorised for imports by Production Sharing Contract holders on a re export basis under the EXIM Policy. Specified petroleum operation goods are duty exempt subject to an undertaking to pay any duty, fine or penalty; essentiality certificates from the Directorate of Hydrocarbons support clearance. Customs are directed to accept LUTs and not insist on BGs for such imports, and to report any difficulties to the Board.

Duty drawback applicability to brass handicrafts clarified; rate covers all qualifying brass artwares despite missing tariff heading.
Application of duty drawback to artistic brass handicrafts/artwares under SS Nos. 74.20 and 74.21 is clarified: the rates are intended to compensate duties on the input material (brass) and therefore apply to all items of brass that qualify as handicrafts or artwares; absence of specific Customs Tariff Headings against those serial entries is deliberate and does not restrict entitlement.

Duty drawback on brass builder hardware applicable despite absent tariff heading; claims should be allowed and decided accordingly.
The drawback rate under SS No.74.17 for Brass Builder Hardware is intended to compensate duties on the brass input and applies to all items qualifying as Builder Hardware; the absence of a corresponding Customs Tariff Heading is deliberate and does not bar entitlement. Drawback claims should be decided accordingly and public notices and standing orders issued to inform trade and guide officials.

Drawback scope for bags clarified to include all textile and similar bags, enabling claims under the notified drawback entry.
The circular clarifies that SS No.63.09 of the Drawback Table covers all kinds of cotton/polyester/rayon bags and cotton storage bags with or without lining or trimming of any textile material, noting an oversight in listing only a single Customs Tariff Heading and directing that drawback claims for other types of bags be decided in accordance with the broader description used to determine the rate.

DTA sale entitlement: Development Commissioner permissions for EOUs must be honoured, permitting DTA clearance on payment of applicable duties.
An EOU/EPZ unit's DTA sale permission granted by the Development Commissioner on the basis of half year physical exports is valid provided the unit fulfils the Minimum Net Foreign Exchange requirement and pays applicable excise duties; refusal by Central Excise to honor such permission is not correct and the unit may clear the permitted goods into the domestic tariff area on payment of duties as prescribed by law.

Deemed foreign territory status enables duty-free imports to SEZ units, while DTA clearances are treated as imports under customs valuation.
SEZ units are deemed foreign territory for duties and taxes: supplies from DTA are deemed exports and movements from SEZ to DTA are treated as imports. Units enjoy duty-free import/procurement for manufacturing and related activities (excluding prohibited goods), with document-based clearances, bonding for temporary removals and job-work, special rules for gem and jewellery, mandatory accounting and reporting, DTA sales subject to duty and customs valuation, and monitoring by a Development Commissioner-Customs committee with recovery and penal action for defaults.

Seizure limitation: restrict seizures of gem and jewellery to cases with prima-facie evidence and require prompt release.
Seizure of gem and jewellery stock is to be limited to cases with prima-facie evidence or absolute necessity; where offences are technical or unlikely to lead to confiscation or prosecution, goods should be detained pending investigation under the Customs Act and investigations completed expeditiously. If seizure is necessary, authorities must seek to lift it promptly after completing formalities to protect revenue, submit a detailed report explaining the reasons for seizure and non-release to the Ministry, and ensure procedural safeguards to prevent long-term retention that harms exporters and trade finance.

Recovery of inspection fees to be effected under section 142 via Customs on request from plant quarantine authorities.
Recovery of inspection fees and arrears under the Destructive Insects and Pests Act, 1914 shall be recovered using the Customs recovery provisions. Customs officers must act on requests from Plant Quarantine Authorities to recover dues under section 142 of the Customs Act, and issue Public Notices or Standing Orders to inform concerned officers; implementation difficulties are to be reported to the Board.