Line of Credit for export finance establishes utilization and disbursement periods and regulates agency commission payments.
A Line of Credit was extended by the export credit agency to a foreign bank to finance exports eligible under India's Foreign Trade Policy, effective December 2005, with specified terminal utilization and disbursement periods subject to extension. Shipments must be declared on GR/SDF forms. Reserve Bank may permit agency commission for after sales service up to a capped amount on merit, payable in the borrower's jurisdiction by invoice deduction with corresponding adjustment to reimbursable disbursements; exporters may alternatively pay commission from own resources or EEFC balances and AD banks may allow remittance after realisation, subject to prevailing instructions. Directions are issued under FEMA and are without prejudice to other legal permissions.

Anti money laundering obligations require intermediaries to maintain transaction records and appoint a principal officer for compliance
Intermediaries must adopt Anti Money Laundering standards under the PMLA: maintain records of specified transactions (cash transactions above the prescribed threshold, related series of cash transactions within one month, and all suspicious transactions), implement a policy framework within one month, designate a Principal Officer for PMLA compliance and notify that officer's contact details to the Director FIU; detailed procedures and reporting formats will follow.

Classification of used rails confirmed as rails under the tariff, not as ferrous waste or scrap.
The Board concluded that the waste-and-scrap tariff heading applies only to material ordinarily used for metal recovery by re-melting or for chemical manufacture and excludes structural items or worn railway lines usable after renewal; by contrast, the HSN note for rails covers all rails of the type used for railway or tramway track irrespective of intended use. Consequently, "used steel rails" shall be classified under the tariff heading for rails and not under ferrous waste and scrap.

Taxability of ready-to-sip tea: beverage served in food outlets is subject to VAT as a taxable beverage.
Ready-to-sip tea served to consumers in food joints, restaurants and similar places is classified as a beverage and taxable at 12.5% VAT; this category must not be conflated with other Third Schedule entries.

Treatment of DEPB and DFRC profits as duty drawback adjusts export-profit computation; penalty and interest waived, staggered recovery.
Amendment of Section 80-HHC equates profits from sale of DEPB credits and DFRC with duty drawback for computing proportionate export profits, applies retrospectively to specified exporter categories, mandates waiver of penalty and interest where demands arise solely from the amendment, and requires staggered recovery with Assessing Officers maintaining a separate register of such demands.

Non-levy of excise duties on goods exported under bond affirmed; trade to be notified and pending cases adjusted.
The Board, under section 37B, directs that where other Acts make the Central Excise Act and rules applicable to levy and collection of additional duties, those duties (including additional excise duties, special additional duties, NCCD, education cess and other specified excise levies) shall not be payable on goods exported under bond under rule 19 of the Central Excise Rules (and corresponding earlier rules); past circulars are modified accordingly, pending cases may be disposed, and a trade notice and publication are to be issued.

Stay against duty and penalty suspends recovery only as stated; prospective implementation must follow the stay wording and law.
A stay by the Commissioner (Appeals) or Tribunal suspends deposit or recovery of the duty demanded and/or penalty levied only to the extent and on the conditions stated; prospective implementation of classification, valuation or recurring-revenue orders must be examined against the stay's wording and carried out in accordance with the Central Excise Act and Rules, with case-by-case safeguards for revenue.

Amendments to Standard Input Output Norms update Handbook of Procedures, adding and correcting SION entries and related import export norms.
The Director General of Foreign Trade amends Vol. II of the Handbook of Procedures to revise, correct and add Standard Input Output Norms (SION). Annexure A lists corrections to existing norms, adjusting import item descriptions and input quantities for specified export products across chemical, engineering and food categories. Annexures B-D add new SION entries for chemicals, an engineering ceiling fan, and refined sunflower oil, each specifying permitted import components and quantities and noting compliance with prevailing PFA specifications and EODC conditions.

Certificate of Origin Non-Preferential: agencies must use the prescribed official format or face delisting from authorised list.
Agencies listed in Appendix 4 C are authorised to issue Certificate of Origin (Non Preferential) only in the Annexure II format notified in the Handbook of Procedure (Vol. I). Certificates omitting the term "Non Preferential" or using the generic description create an impression of preferential origin and facilitate misuse. Agencies must strictly follow the prescribed official format; failure to do so will invite action, including possible delisting from Appendix 4 C.

DFRC licence for Deemed Export requires customs and excise verification with prescribed documentary certification before imports allowed.
DFRC licences for deemed exports are issued with a single port of registration and require supporting documents: an invoice certified by the receiving unit and jurisdictional excise authority (or a Project Authority Certificate where applicable) and a prescribed payment certificate; bank evidence of realization is required for supplies to EOUs/EHTPs/BTPs. Licensing authorities must endorse licences to Customs and excise authorities. Customs must verify DFRC licences before allowing imports and obtain an original Central Excise statement confirming the supplies; discrepancies must be reported to the licensing authority and Customs.

Foreign Direct Investment scope: exclusions for SEZs, hotels and hospitals affirmed under their existing regulatory regimes.
The provisions of Press Note 2 (2005 Series) on FDI in townships, housing, built-up infrastructure and construction-development projects do not apply to Special Economic Zones, which are governed by the Special Economic Zone Act, 2005. The Press Note likewise does not apply to establishment and operation of hotels and hospitals, which continue to be governed by the earlier Press Notes establishing the automatic route for FDI in the hotel and tourism sector and the hospital sector.

Corporate governance: revised listing requirements adjust board meeting intervals, sitting fee approvals, and CEO/CFO internal control certifications.
Amendments to Clause 49 lengthen the maximum interval between board meetings to four months; exempt payment of sitting fees to non-executive directors from prior shareholder approval when made within Companies Act limits; and limit CEO/CFO certification to establishing, evaluating, and reporting internal controls for financial reporting, including disclosure of deficiencies, significant changes, accounting policy shifts disclosed in the financial statements, and significant fraud to auditors and the Audit Committee.

Non-levy of excise duties on bonded exports reaffirmed, clarifying additional duties and cesses are not payable.
Exports under bond pursuant to rule 19 (and predecessor rules) are not liable to payment of duties chargeable under Acts that make the Central Excise Act and its rules applicable "as far as may be"; this non-levy extends to Additional Duty of Excise, Special Additional Excise Duty, Education Cess, National Calamity Contingent Duty and other special/additional excise duties introduced by Finance Acts. Pending demands should be disposed of and earlier circulars/orders modified for uniformity; a trade notice is to be issued.

Dematerialisation requirement for non promoter holdings must be met before securities move from trade for trade to rolling settlement.
Permits shifting specified securities from the Trade for Trade Segment to rolling settlement provided issuer companies satisfy the dematerialisation requirement for non promoter holdings by submitting a certificate from their Registrar and Transfer Agent or, if no separate RTA exists, from a practicing Company Secretary or Chartered Accountant, and provided there are no other grounds for continuation in Trade for Trade; stock exchanges must act and report the action in the Monthly Development Report.

Procedural relaxation for EOUs and Gem & Jewellery schemes streamlines de bonding, DTA sales, sourcing and inter unit transfers.
Procedural relaxation implements time bound de bonding where EOU/EHTP/STP units self assess duty, notify the Development Commissioner and jurisdictional Customs/Central Excise, and the Deputy/Assistant Commissioner must confirm liabilities or communicate discrepancies within fifteen working days and issue a No Dues Certificate after payment; re warehousing certificates require physical verification. It also standardizes DTA sale by defining "similar goods" by Customs Valuation criteria, allows sourcing by Advance License/DFRC without AROs subject to endorsement, prescribes ARE 3 procedures for inter unit transfers, permits sharing of specified common facilities among co owned units, and provides conditional restraints on withdrawal of pre authenticated CT 3 facilities.

Import compliance for ODS free HVAC equipment requires declaration in bills of entry and a supplier certificate at assessment.
Importation of air conditioners, compressors, chillers and water coolers that do not contain ODS substances is permitted freely under normal imports and the EPCG scheme, but importers must declare in the Bills of Entry that the equipment do not contain ODS substances and submit a supplier's certificate to that effect at the time of assessment or examination.

Foreign investment limits in TV uplinking impose differentiated caps with mandatory government approval and compliance requirements.
Foreign direct investment for up-linking of TV channels is permitted under differentiated ceilings with prior government approval: 49% for up-linking HUBs/teleports; 100% for non-news and current-affairs channels; and 26% (including FII/NRI investment) for news and current-affairs channels, subject to portfolio investors not acting in concert with FDI investors and annual certification of compliance. Indirect foreign holdings in Indian shareholder companies must be reckoned pro-rata, and all FDI is subject to compliance with broadcasting laws and the Government's Uplinking Policy.

Vishesh Krishi Upaj Yojana application requirements: applications limited to a maximum number of shipping bills and to one Customs House.
Vishesh Krishi Upaj Yojana credit applications must be filed in the Aayaat Niryaat Form with prescribed documents; applicants may submit multiple applications provided each application stays within the permitted maximum number of shipping bills and all shipping bills in a single application pertain to exports from the same Customs House. The filing deadline for exports made during the 2004-05 period is 31 March 2006.

Transaction value principle governs bulk liquid import duty assessment; invoice price, not measured quantity, determines ad-valorem liability.
For bulk liquid imports, where customs duty is ad-valorem the assessment must be based on the invoice price as the transaction value regardless of shore tank or ship ullage measurements; for deliveries to multiple ports the value must be apportioned by intended discharge quantities. Where duty is specific, quantity determined by shore tank measurement remains relevant and earlier Circular No.96/2002 applies to specific-rate cases; pending provisional assessments should be finalized accordingly.

Includibility of ship demurrage charges - provisional import assessments before a historic cutoff may now be finalized, guidance pending.
Following dismissal of the Department's review petition in the Indian Oil valuation matter, all pending provisional assessments for importations prior to the pre-cutoff period may be finalized; assessments for importations after that period remain under consideration pending further clarification.