Allocation of cotton exports adjusted after high court interim orders; sequestered quantities and pro-rata distribution and registration certificate issuance scheduled
Allocation of cotton export quantities proceeds by pro rata distribution among eligible applicants after excluding ineligible and duplicate filings; interim High Court orders required sequestering specific volumes for writ petitioners who lacked past export performance, applying a statutory floor per IEC to grant minimum allocations and, in two cases, permitting higher provisional allotments subject to court review. The remaining balance was allocated to eligible applicants, with fractional amounts to be rounded at Registration Certificate issuance and contingency provision for allotment to designated public sector entities if judicial outcomes permit.

Electronic filing of bills of entry enables automated import assessment, integrated licence and bond management, and streamlined clearance.
Computerized processing under ICES 1.5 mandates electronic filing of import Bills of Entry with required pre registrations (IE Code, CHA/airline, ICEGATE), prescribed code sets for currencies, units and locations, and specified documentary attachments. The system automates assignment to Appraising Groups, computes duty and currency conversion from directories, supports system appraisal, first/second check examinations, online queries, concurrent audit and AC/DC oversight, and integrates registration and ledger management for licences, DEPB, bonds and TRAs before permitting goods registration and out of charge.

Client code modification limited to genuine-entry errors, allowed under strict criteria with penalties and inspection triggers.
Modifications of client codes for non-institutional trades are allowed only to correct genuine entry errors; exchanges permitting such modifications must adopt strict objective criteria approved by their Governing Board, disclose them, monitor trading members' compliance, and include modifications in internal audits. Exchanges must levy penalties-credited to the Investor Protection Fund-based on the ratio of modified non-institutional turnover to total non-institutional turnover, with a lower penalty at or below five percent and a higher penalty above five percent. If the ratio exceeds one percent in a month, the exchange shall conduct a special inspection and may take disciplinary action.

Proportionate Cenvat credit remains available to specified Chapter 55 textile headings despite omission from notification; circular clarifies applicability.
The circular clarifies that omission of certain Chapter 55 textile headings from Notification No.29/2004 CE does not affect the availability of proportionate Cenvat credit; those goods continued to attract the same excise duty via the tariff/statutory rate, and the benefit of proportionate credit under Circular No.845/03/2006 CX remains available to the specified headings.

Centralized registration extended to recorded smart card manufacturers, permitting registration at centralized billing premises to simplify excise compliance.
Manufacturers of recorded smart cards (sub heading 8523) with geographically dispersed production and a centralized billing or accounting system may register only the premises or office from which such centralized billing or accounting is conducted, to address difficulties in premises wise discharge of excise duty after withdrawal of the exemption.

Import controls on hazardous electronic waste require environmental ministry permission for second hand electronics and regulated recycling or reuse.
Imports of waste electrical and electronic equipment are allowed only for recycling, recovery or reuse; Schedule III entries A1180 require Prior informed Consent, and entry B1110 (including second hand computers and direct re use electronic assemblies) require permission from the Ministry of Environment and Forests. Field formations must verify permissions, treat contraventions as illegal traffic under Rule 17 with re export obligations at the importer's cost, and issue public notices to prevent electronic waste dumping.

Refinancing under automatic route allowed for FCCB redemption subject to ECB terms, monitoring and prior registration.
Indian companies may raise fresh ECBs/FCCBs under the automatic route to refinance outstanding FCCBs, provided the fresh borrowing meets extant ECB maturity and cost norms, does not exceed the outstanding redemption value, is not raised within six months before maturity, and is declared in Form 83 as for 'Redemption of outstanding FCCBs'. Designated AD Category I banks must monitor end use; all other automatic route ECB conditions apply and amounts count toward the automatic route limit. Restructuring that changes the conversion price is not permitted; other restructurings require approval route consideration.

Risk management system for EOU imports extends facilitation to non-accredited entities, with mandatory PC and OOC procedures.
Risk Management System facilitation under the 100% EOU Scheme is extended to non-accredited importers. Bills of Entry will be facilitated and routed to the Shed Appraiser/Superintendent for Out of Charge, subject to interdictions. The CHA/importer must present the Bill of Entry with the Procurement Certificate in sealed cover to the Bond Superintendent, who records PC particulars, reconciles PC with the Bill, completes Transit Allowed procedures, enters TA and Bill details in the PC, and intimates Central Excise of dispatch. The Shed Officer then verifies, debits/defaces the PC and enforces Compulsory Compliance Requirements before granting OOC.

Passenger manifest profiling required to establish computerized traveler and offender databases and valuation records for consistent customs monitoring.
Advance passenger information under the Manifest Regulations must be collated for intelligence and profiling of short stay and frequent visitors and to monitor agency alerts. Customs at international airports are directed to develop computerized databases of frequent/short visitors and offenders, consider replicating the Chennai COPS system in consultation with DG (System), and establish a valuation database for high value items imported in passenger baggage to ensure uniform assessment.

Security Agency's Service exempted retrospectively for CISF-provided security services, relieving recipients from past service tax liability.
Services provided by the Central Industrial Security Force are taxable as Security Agency's Service under the Finance Act; the Central Government, invoking statutory powers, granted a complete exemption from service tax for CISF-provided security services in relation to Security Agency's Service for the period 16 October 1998 to 31 March 2009, thereby relieving taxa liability for that retrospective period.

Dematerialization requirement enables shift from Trade for Trade to Rolling Settlement when majority non promoter holdings are dematerialized.
The circular permits shifting listed securities to normal Rolling Settlement where companies have established connectivity with both depositories, subject to the condition that a majority of non promoter holdings are held in dematerialized form. Certification of dematerialisation must be provided by the Registrar and Transfer Agent or, if none exists, by a practicing Company Secretary or Chartered Accountant. Exchanges must ensure no other grounds justify continued Trade for Trade Settlement and must report the action taken in their periodic development reports.

Trade in Border Haats: permitted locally produced commodities and vendor eligibility under the India Bangladesh MOU.
Permitted trade at Baliamari-Kalaichar and Lauwaghar-Balat Border Haats under the MOU includes specified locally produced vegetables, food items, fruits, spices, minor forest produce (excluding timber), cottage industry products, small agricultural implements, garments and processed items; locally produced means produce of the concerned border district and commodity clarifications are to be made by the Haat Management Committee, while vendors must be residents within a five kilometre radius and immediate consumption items may be allowed by the Committee.

Export registration requirement for cotton waste: contracts must be registered and shipments completed within the prescribed period to avoid penalties.
Export of cotton waste (ITC(HS) Code 5202) is free but subject to registration of export contracts with DGFT Regional Authorities; applicants must submit the export contract with proof of payment (irrevocable LC, full advance remittance evidence, or minimum advance with CAD), a signed Declaration/Undertaking, and copy of IEC. Shipments must be completed within the prescribed period and proof of export furnished to the RA, failing which debarment and penal action under the Foreign Trade (D&R) Act may follow.

Import of Fuel entitlements clarified: rules differ when fuel is main raw material versus additional input.
Clarification states that when fuel is an additional input entitlement follows the General Note for Fuel; when fuel is the single or basic raw material entitlement must follow SION or, in non SION cases, adhoc procedure under paragraph 4.7 with final adjustment by adhoc norms or SION set by the Norms Committee.

DEPB scheme continuation preserves exporter eligibility; customs must record or manually endorse let export orders to protect entitlements.
Continuation of the DEPB scheme preserves eligibility for DEPB scrip issuance where consignments have a Let Export Order as defined under section 51 of the Customs Act. Customs officers must promptly enter Let Export Orders on the EDI system for consignments fit for export by the cut-off, and manually endorse shipping bills with Let Export Order if system problems occur, to protect exporters' entitlement to DEPB benefits.

Foreign Direct Investment rules require prescribed entry routes, pricing, payment methods and mandated reporting and monitoring.
Foreign investment in India is governed by FEMA and the consolidated FDI policy, permitting investment under the Automatic or Government Routes and specifying eligible non-resident investors and instruments (equity, fully and mandatorily convertible preference shares and debentures). Pricing must be determined upfront with prescribed valuation methods; payments must be made by approved banking channels or escrow; shares must be issued within the stipulated retention period or refunded. Sectoral caps and prohibited activities are specified. Extensive reporting and compliance obligations apply, including prescribed forms for fresh issues, transfers and conversions, and monitoring by AD banks and the Reserve Bank.

Anti Money Laundering compliance: MTSS agents must implement risk based KYC, reporting, and Principal Officer oversight immediately.
The Circular sets the MTSS regulatory regime permitting only inward personal remittances to individuals, with Reserve Bank authorisation required for Indian Agents and specified eligibility, application, collateral and renewal conditions. It mandates comprehensive risk based KYC/AML/CFT policies, enhanced due diligence for high risk customers and PEPs, appointment of a Principal Officer, strict record retention, and timely CTR/STR reporting to FIU IND; agents remain accountable for sub agents and are subject to inspection and ongoing supervisory reporting to the Reserve Bank.

Money changer licensing: RBI consolidates licensing, franchisee, operational, KYC/AML and reporting obligations for authorised money changers.
The Master Circular consolidates RBI instructions for authorised money changers: licensing and net owned funds prerequisites for FFMCs; prior approval requirements for additional branches and franchisee appointments with due diligence, surrender and reporting obligations; operational rules on purchase/sale, payment modes, registers and non-cash settlements; mandated risk-based KYC/AML/CFT measures including appointment of a Principal Officer and mandatory CTR/STR reporting to FIU-IND; concurrent audit, inspection powers and RBI's authority to vary or revoke licences for non-compliance.

Risk management for FX derivatives: rules require documented underlying exposures, prudential safeguards and mandatory reporting.
Master Circular consolidates rules on Risk Management and Inter-Bank Dealings, specifying permissible foreign exchange and commodity hedging products, operational safeguards tying derivatives to verified underlying exposures, eligibility and prudential criteria for market-makers and users, prohibitions on certain leveraged and exotic structures, documentation and auditor certification requirements, conditions on cancellation/rebooking and detailed reporting obligations by Authorised Dealers to the Reserve Bank.

Direct investment by residents in overseas joint ventures and wholly owned subsidiaries governed by FEMA rules, funding, caps, and reporting.
Consolidated RBI guidance under FEMA 120/2004 governing direct investments by residents in overseas JVs and WOS establishes an Automatic Route (investments up to 400% of net worth, subject to conditions on equity participation, guarantees, valuation and reporting) and an Approval Route for other cases; prescribes permitted funding methods, sectoral compliance (financial services, energy), documentation and valuation norms, reporting via the ODI form with UIN allocation, designated AD bank procedures, obligations to submit APRs and evidence of investment, and operational rules for pledges, guarantees, hedging, write offs and disinvestments.