Modvat credit entitlement for lubricating base oils used as inputs upheld, preventing denial during the transitional pre-notification period.
The Board directs that Modvat Credit shall not be denied on lubricating base oils used in the manufacture of lubricating oils and greases for the period 01.03.1997 to 31.08.1997, noting that although rule 57B initially excluded these goods, rule 57Q permitted credit when they were inputs for further manufacture and clause (v) of rule 57B(2) was subsequently deleted by Notification No.46/97 CE(NT) dated 01.09.1997.

FDI in non-fund financial consultancy exempted from minimum capitalisation norms, subject to corporate activity and equity restrictions.
Foreign investment in purely financial consultancy that is non-fund based is exempt from minimum capitalisation norms, on condition that the company shall not set up any subsidiary for other activities and any equity it contributes in an NBFC holding/operating company will not be reckoned as domestic equity. NBFCs carrying out fund-based activities remain subject to minimum capitalisation requirements.

Bank Certificate of Export and Realisation authorised for approved export factoring agencies to certify receipt of export proceeds.
Approved export factoring firms are authorised to handle GR forms and related export documents and to issue the Bank Certificate of Export and Realisation, certifying realisation of export proceeds in the approved manner as set out in the Handbook of Procedures.

Waiver of disclaimer certificate for rebate claims where home-consumption goods are diverted for export, subject to prescribed procedure.
Waiver of the requirement for a Disclaimer Certificate is authorised for rebate claims under Rule 12 where goods cleared for home consumption are diverted for export following the prescribed diversion procedure; the merchant exporter who prepares and signs the export declaration (AR4) alone may claim the rebate, while the Disclaimer Certificate remains necessary for exports effected directly from the manufacturer's factory or premises.

Classification of compounded asafoetida as vegetable gums under tariff, not as spices or mixed condiments.
Compounded asafoetida is classifiable under Chapter Heading 13.01 because wheat flour and edible gum serve as fillers that do not change the product's essential character as a vegetable gum/resin; manufacturing steps include dilution, compounding, fermenting, drying and packing, and HSN explanatory notes and Customs Tariff treatment of asafoetida support harmonised classification under Chapter 13 rather than as spices or mixed condiments.

Condonation of delay in brand-rate applications permits limited extensions where sufficient cause prevents timely filing.
Fixation of brand and special brand rates allows the Central Government to relax filing time limits where exporters were prevented by sufficient cause. The Ministry will consider condonation for specified categories of delay listed in the Annexure, subject to the exporter stating specific reasons with supporting documents and ensuring verification of input data has been or can be completed. The Annexure links particular causes of delay to corresponding additional condonation periods and identifies triggering dates for counting the permissible extended period.

Designation of officers for Special Advance Licensing and EPCG Scheme ensures implementation and liaison for electronics export controls.
Designation of officers of the Department of Electronics to implement the Special Advance Licensing Scheme and the EPCG Scheme for export of electronic products; DGFT Policy Circular dated 28 October 1998 provides an annexed consolidated list of DOE nominated and designated officers attached to Regional Licensing Authorities, superseding the earlier list, for licensing, administrative liaison, and processing of applications under these schemes.

Special Advance Licensing Scheme permits duty-free import of inputs for manufacture of exported electronics subject to certified export obligation.
Special Advance Licensing Scheme allows manufacturer-exporters of electronics to import specified inputs duty-free for manufacture of export goods, subject to DEEC-quantified descriptions, pre-export importation, normal Customs checks, prohibition on transfer except for prescribed waste, and discharge of export obligation only upon certification by a designated officer of actual utilisation; licences may be issued against LUT/Bond or Bank Guarantee, require port registration and DEEC debiting, and non-fulfilment attracts Customs duty recovery with interest and record-keeping contraventions.

Export condition removal for cotton yarn changes ITC(HS) export terms under foreign trade regulation.
The Central Government amends Schedule 2 Appendix 1 of the ITC(HS) Classifications by deleting condition (iii) applicable to the cotton yarn entry at serial number six, thereby removing a specified export condition attached to that tariff entry under the Export and Import Policy and the Foreign Trade Development and Regulation Act; the amendment is issued as a public notice in the public interest.

Prohibition on direct policy correspondence: Customs and Central Excise formations must route policy references through the Board.
Commissionerates must not correspond directly with other Ministries on policy matters; reports and information should be sent to the Board for formulation of a uniform response, and Ministries may be informed that the information has been forwarded to the Board for onward transmission.

Computerized customs EDI processing governs electronic filing, verification, assessment, payment and release of import Bills of Entry.
Computerised processing of Bills of Entry at the Air Cargo Complex will be introduced in phases under the EDI system, with specified Service Centre procedures for submission, verification, data entry charges, format requirements and generation of computerised Bill of Entry numbers. Certain categories remain manually processed. IGMs with full MAWB/HAWB details enable cross verification and acceptance of corresponding Bills of Entry only where particulars match. Assessment, first/second check examination, system appraisal, payment through a designated bank, Green Channel requests, and Advance Customs Clearance workflows are prescribed. Annexure II details mandatory field formats and documentary requirements for filings.

Redesignation as income-tax authority under section 117: specified IRS officer grades redesignated effective October first.
The Central Government, under section 117(1) of the Income-tax Act, redesignates specified IRS officer grades as income-tax authority effective 1 October 1998, listing Assistant Director/Assistant Commissioner, Deputy Director/Deputy Commissioner (across two pay-scale groupings), and Joint Director/Joint Commissioner in a Table to formalize their classification as income-tax authorities.

Exchange control copy retention: authorised dealers retain and forward duty free licence originals to central bank; photocopies suffice for discharge.
Authorised dealers must retain the Exchange Control copy submitted for letters of credit or remittances and forward the original to the central bank after full utilisation with related R Returns. Licensing authorities should not insist on surrender of the Exchange Control copy and may accept a photocopy with annexures plus an authorised dealer certificate confirming surrender of the original for discharge of export obligation.

PMV verification period extended for DEPB exports to permit additional market inquiries and evidence collection.
When the Commissioner of Customs is satisfied that additional time is necessary to collect further information or evidence for determination of the Present Market Value (PMV) under the DEPB scheme, he may extend the inquiry period beyond thirty days for a period not exceeding ninety days from the date of the Shipping Bill, and the show cause notice must be issued within that extended period.

Disposal of unclaimed cargo extended to wholly owned central and state government undertakings, expanding custodial procedure.
The circular extends the existing custodial disposal procedure for unclaimed/un-cleared cargo to include wholly owned undertakings of both the Central Government and State Governments, directing custodians to apply the same disposal framework previously applicable to specified Central Government undertakings.

Delegation of powers to EPZ Development Commissioners expands authority over capital goods approvals, additional locations and export obligation revisions.
Delegation expands Development Commissioners' authority to approve post-approval amendments: enhancement in the value of imported capital goods up to a specified additional proportion of the originally sanctioned value within a monetary ceiling; approval of additional EOU project locations within the same Central Excise and Customs Commissioner's jurisdiction where premises are custom-bonded; and prospective revision of export obligations, upward or downward, provided reductions do not fall below the minimum export obligation prescribed in EIM policy or sectoral FDI guidelines.

Import without licence for mulberry raw silk requires filing import returns to textile regulators promptly after customs clearance.
Designated agencies may import Mulberry Raw Silk without an import licence provided imports follow normal commercial practice and importers submit an Import Return within 15 days of customs clearance to the prescribed regulatory recipients using the Annexure A format, capturing importer details, IEC, contract particulars, quantity, value, origin, port of import and other relevant information.

Pass Book Scheme credits: finalise admissible claims and grant credits by the specified deadline; no further extensions permitted.
The circular directs Designated Authorities of the Pass Book Scheme and Commissioners of Customs to finalise pending admissible credit claims and grant credits positively by 31.10.1998, and states that no further extensions will be allowed.

DEPB entitlement affirmed for exports under escrow accounts, policy circular clarifies benefit claims for counter-trade exports.
Grant of DEPB benefit is confirmed for exports under counter-trade arrangements where export proceeds realised through Escrow Accounts qualify for DEPB eligibility; this circular modifies an earlier clarification and records administrative approval following consultation with financial authorities.

Foreign direct investment allowed in GMPCS licence companies subject to telecom licence and inter ministerial committee recommendation.
Foreign direct investment is permitted in licence companies operating GMPCS services subject to an equity cap and conditional on obtaining a GMPCS licence from the telecom regulator, which must be granted following recommendation of an Inter Ministerial Licencing Committee.