Export deadline extension for sandalwood processing exports extends compliance timeframe under licensing regime for existing export conditions.
The notice amends Paragraph 8 of Public Notice No. 26/97-2002 by replacing the previously specified deadline with a later date, thereby extending the compliance timeline for exports of sandalwood in the specified forms (heartwood chips, mixed chips, flakes, sapwood chips/powder and manufacturing waste dust); all other conditions of the original notice remain unchanged.

Service Tax account allocation prescribes triplet ledger codes for tax collections, other receipts and refunds for listed services.
Allocation of heads of accounts for services newly included in the Service Tax net from 16-10-1998 prescribes, for each listed service, a triplet of ledger codes: one code for Tax Collections, one for Other Receipts, and one for Deduct Refund, to guide revenue accounting and refund treatment for specified professional and service categories.

Amendment to Standard Input Output Norms alters allowable import inputs and product descriptions for export licensing under the Handbook.
The Director General of Foreign Trade amends the Handbook of Procedures, Vol.2 by substituting, correcting and adding Standard Input Output Norms across multiple sectors. The Public Notice revises export product descriptions, input output ratios, permits alternative import items and consumables (often as percentages of FOB), inserts new entries (Annexures A-H) with precise import requirements, and adds procedural notes restricting substitutions and invoking licensing checks in Vol.I.

DEPB rate amendment updates coverage periods and corrects export product descriptions, clarifying DEPB entitlement and refill treatment.
Amendment to DEPB rates and Appendix 28A revises applicable DEPB rates and coverage periods for specified export items, provides a transitional DEPB rate for refills exported in the interim between deletion and re introduction of parts/components coverage, and corrects multiple product descriptions across Electronics, Engineering and Chemicals product groups to ensure accurate classification and DEPB entitlement under the Handbook of Procedures.

Recognition of service exporters: hotels and travel providers may elect gross forex or NFE basis for certification and SIL claims.
Hotels, travel agents, tour operators and tourist transport operators may apply for recognition as Export/Trading Houses using Appendix-19B and elect an irrevocable option to receive certification on either gross foreign exchange earnings or NFE basis; this option must be endorsed on the certificate. Recognised entities claim Special Import Licence benefits by filing Appendix-20G semiannually for specified earning periods, within prescribed post-period filing windows. Applications and SIL claims require certification by a Chartered Accountant/Cost and Works Accountant/Company Secretary and specified documentary enclosures.

Rupee payments treated as foreign exchange for EPCG enabling rupee receipts and CA certificates to discharge export obligations.
Specified categories of rupee payments-including encashment certificate receipts, rupee payments via travel agents for foreign tourist hotel stays, rupee receipts by air/flight catering units and hotels for foreign airline crew from repatriable earnings, and rupee payments from diplomatic missions out of convertible foreign exchange-are to be treated as foreign exchange earned for EPCG export obligation discharge; money changer receipts (not against hotel bills) are excluded. For these services a Chartered Accountant certificate may be submitted in lieu of a bank certificate. Licensing authorities may grant further pre export DEPB to the extent exports are already completed, subject to the maximum entitlement in the Exim Policy.

Deemed export qualification: main and subcontractors must present certified banking-channel payments to claim benefits.
Deemed export benefits are apportioned between main contractors and subcontractors: main contractors receive benefits only for goods they manufacture and supply as indicated in the main contract and project authority certificate, while subcontractors receive benefits only for goods they manufacture and supply as reflected in Appendix 14-A. Subcontractor claims require submission of the project authority payment certificate, the main contractor's payment certificate evidencing receipt through banking channels, and other prescribed documents. The notice incorporates Form 1-C into Appendix 14B and amends Appendix 14A and Form 1-A wording regarding payment certification and eligible power and oil and gas procurements.

Duplicate Advance Licence issuance requires indemnity, Customs certification, and a fee; DEPB on lost shipping bills needs strict documentation.
Duplicate freely transferable Advance Licences and DEPB may be issued on application accompanied by a fee equal to ten percent of duty saved, an FIR copy, a notarised affidavit, and an indemnity bond supported by a bank guarantee; issuance is limited to the unutilised balance as certified by Customs at the port of registration and is coterminous with the original licence. For lost EP copies of Shipping Bills, DEPB claims require a duplicate Shipping Bill from Customs, original prescribed documents, an affidavit to surrender originals if found, an indemnity bond, a Customs certificate that no clearance occurred against the lost original, and an application fee equal to ten percent of entitlement, with claims confined to six months from export.

Tax reform expands and rationalises income tax exemptions, deductions and compliance, altering rates and procedural rules.
The Finance (No. 1998) Act revises the income tax rate structure including higher individual exemption threshold; redesignates income tax authorities and amends definitions; rationalises exemptions by omitting outdated provisions and conditioning institutional exemptions on financing, prescribed receipts or approval; extends and targets sectoral incentives and tax holidays; introduces depreciation on specified intangible assets and revised depreciation rules for the power sector; inserts a Site Restoration Fund regime for petroleum and natural gas undertakings with audit and utilisation constraints; permits carry forward of loss from house property; tightens deductibility rules for unexplained expenditure; expands PAN/GIR quoting and filing obligations; and reforms appellate procedure, fees and timelines while creating a scheme for voluntary settlement of tax arrears.

Import of plastic scrap by EPZs limited to certified virgin material; breaches attract environmental and trade penalties.
Imports of plastic waste and scrap are permitted for Export Processing Zone units only if the material is virgin/new plastic scrap as defined, in specified physical forms, and used solely for physical exports. Only existing EPZ units with recycling capacity, registration, pollution clearance, and capacity assessment may import; no new units allowed. Each consignment must have factory and importer certificates, and all consignments are subject to Customs sampling and testing. Misdeclaration triggers environmental and trade law penalties.

Export authorisation for wheat permits shipment to Bangladesh via specified border points; APEDA to issue RCACs under government circular.
Authorisation permits M/S Karnataka State Cooperative Marketing Federation Ltd. (KSCMF), Bangalore to export a specified quantity of wheat to Bangladesh C&F to Gede for Darsana by rail and/or C&F to Sonamasjid/Hilli by truck. The allocation is placed at the disposal of APEDA for issuance of RCACs in favour of M/S KSCMF, and customs and licensing authorities are instructed to implement the allocation under the export control framework.

Direct appeal procedure under Section 260A requires dedicated cells to coordinate filings and monthly reporting.
Section 260A provides for direct appeals to the High Court and requires each Chief Commissionerate to establish a High Court Cell under the CCIT to coordinate filing and monitoring of appeals. The Cell will use existing field manpower, include Inspectors under the Addl. CIT/JCIT and an Addl. CIT/DCIT (Judicial) with specified infrastructural facilities, and maintain records of standing counsel performance. CCITs will determine regional modalities. A monthly report listing all cases appealed to the High Court with facts and tax effect must be submitted to the Board by the tenth of each month.

Special Additional Duty of Customs exemption applies to merchant exporters who declare goods for sale, sparing SAD debit in Passbooks.
Merchant exporters importing goods "for sale as such" who make the prescribed declaration in the Bill of Entry are exempt from Special Additional Duty of Customs; they may still debit other authorised duties in a valid Passbook, but SAD need not be debited when the Notification exemption applies.

Duty concession eligibility for Network Interface Unit confirmed, restoring concessional import treatment under WLL provisions.
The Network Interface Unit (NIU) is an integral part of the Wireless in Local Loop system and is not a terminal equipment; following the Department of Telecommunications' clarification, NIU qualifies for concessional import duty under the WLL notification, and the earlier circular excluding NIU as terminal equipment is superseded.

DEPB import facility: portability of DEPB scrips across specified ports enabled, conditioned on TRA and reporting requirements.
DEPB scrip holders registered at specified sea-ports, airports or ICDs may import at any other station within the same enumerated list; Coimbatore-area stations form a separate list. The facility is import-only; excluded ports require import at the registration port. Imports under the facility require a Telegraphic Release Advice (TRA) from the port of registration to the importing Custom House with DEPB serial number, date, entitlement and cargo details, and the receiving Custom House must report imports back to the issuing Custom House for register maintenance.

Revalidation of Special Imprest licence extended for turnkey projects to contracted supply period under policy circular modification.
Special Imprest licences issued prior to 12.11.97 were eligible for revalidation under paragraph 7.23 of the Handbook of Procedures (Vol. I, RE 98) with a maximum period as under Advance Licence practice; this circular partially modifies that position by permitting licences for turnkey projects issued prior to 12.11.97 to be revalidated up to the contracted period of supply.

Deemed export benefits limited to manufacturer exporters for goods manufactured in India; contractor and subcontractor entitlements clarified.
Deemed export benefits - refund of duty drawback, refund of terminal excise duty and Special Import License - are available only to Manufacturer Exporters for goods manufactured in India. Where main contractor and subcontractor arrangements exist, each party may claim benefits only to the extent of goods they manufacture and supply. Special Imprest Licences are similarly restricted to Manufacturer Exporters and subcontractors for their manufactured supplies. The clarification applies to supplies effected from the date of this circular.

Delegation of powers allows Development Commissioners to permit disposal, imports under EXIM policy, and mergers within jurisdiction.
Development Commissioners of EPZs are authorised to permit disposal of obsolete capital goods in the Domestic Tariff Area on payment of applicable duties without a financial cap, provided disposals do not adversely affect contracted export obligations or Net Foreign Exchange. They may permit import of office equipment in accordance with the EXIM Policy and Handbook of Procedures, and may permit merger of two or more EOUs/EPZ units into one where the units fall within the same Development Commissioner and the same Commissioner of Central Excise and Customs.

Automatic approvals for EOUs and EPZ units liberalised allowing higher foreign technology fees and distinct export/domestic royalty caps.
Automatic approvals for 100% EOUs and EPZ units are liberalised so that proposals with foreign technology agreements meeting the revised lump sum and royalty ceilings payable over five years from commencement of commercial production qualify for the automatic route; non manufacturing activities outside Section 3 are eligible only if included in Para 9.1 of the EXIM Policy, and all other existing criteria continue to apply.

Enrolment requirement for DEPB applications: exporters must enrol and quote issued enrolment number before DEPB processing.
A mandatory enrolment regime is instituted for all exporters under the DEPB Scheme requiring submission of the Appendix I A exporter profile, IEC and RCMC copies, tax returns, central excise/industrial registration, passport photocopies of principals, identity card details with photographs and address proofs; reasons must be given for any non submission. Applications will be scrutinised and an enrolment number issued which must be quoted on all DEPB applications; no DEPB will be issued without enrolment.