Duty free import of natural rubber: licensing authorities to determine admissibility under court decision and Exim provisions.
All licensing authorities are directed to assess and decide admissibility of imports of natural rubber by reference to the judicial determination and the relevant Export-Import (Exim) provisions and procedures, applying existing Advance Licence and related scheme terms when processing applications; this replaces earlier internal instructions that advised against issuance of duty-free licences for natural rubber.

Line of Credit for exports to Sri Lanka sets financing, shipment deadlines, declaration and commission conditions under exchange control.
A Line of Credit has been provided to a Sri Lankan bank to finance eligible Indian exports including capital goods and related services, requiring shipments to be declared on GR/SDF forms and letters of credit to be opened and utilised within prescribed terminal dates. Agency commission is generally disallowed but the Reserve Bank may permit limited commission for after sales service subject to prior approval and invoice deduction payment in the borrower's country, with the reimbursable finance amount adjusted accordingly. Directions are issued under the Foreign Exchange Management Act.

Employee stock option governance tightened; new disclosure, valuation and listing requirements and trust consolidation rules.
Amendments expand definitions, require a Compensation Committee and prescribed Disclosure Document, mandate disclosure of valuation method and, if intrinsic value is used, disclosure of the difference from fair value and its impact on profits and EPS. Schedule III prescribes fair value measurement and assumptions; Schedule IV prescribes pre grant disclosures. Repricing needs shareholder approval; listing rules require filings and in principle approvals, special IPO ratification and prospectus disclosures for pre IPO ESOS/ESPS shares; trust administration must be consolidated under AS21.

TRA issuance procedure withdrawn for specified ports; DEPB scripts to be manually debited at clearance and recorded in EDI.
TRA issuance by New Custom House for Jawaharlal Customs House, Air Cargo Complex and CFS Mulund is withdrawn; DEPB/DEEC/DFRC licences verified by New Custom House may be presented to those formations for manual debiting on the original script at clearance, after which the original must be submitted to New Custom House licence section for EDI debiting and endorsement before being returned. The same process applies to GRAs; TRA for other ports follows existing procedure.

Assessable value must include the value of caps fitted to tubes even if manufacturers do not separately charge for them.
The Board clarifies that the assessable value of tubes must include the value of plastic caps fitted to them even if manufacturers do not levy a separate charge for those caps, applying the principle that assessable value comprises the entire intrinsic value of the article as reflected in Union of India v. Metal Box Co. of India Ltd. Field formations are directed to inform officers and secure acknowledgements of the circular to ensure consistent valuation practice.

Exemption from registration for drug imports under Advance Licensing Scheme allows imports for valid export orders subject to conditions.
Imports of drugs under the Advance Licensing Scheme are exempt from the Registration procedure under the Drugs & Cosmetics Act for approved and unapproved drugs, provided imports are against valid export orders limited to required raw materials, licences are endorsed to the Drug Controller and State Drug Controller, random inspections are permitted, pre import conditions are met, export obligations are fulfilled within six months, and violations attract penalties under the Foreign Trade Development and Regulation Act and the Customs Act.

Posting parameters for Investigation Wing require ACR review, integrity checks and permit early reassignment if performance unsatisfactory.
Posting to the Investigation Wing must be based on Annual Confidential Reports and consideration of seniority, integrity and public image; supervisors may reassign officers before completion of the normal tenure if performance is unsatisfactory; differences between DG(Inv.) and cadre control may be referred to the Board for joint decision by Member(Inv) and Member(P); a review of current postings and a compliance report to Member(Inv) is required.

Cellular phone definition excludes fixed wireless telephones and terminals that merely use cellular technology, affecting exemption eligibility.
The term cellular phones in the customs notification must be interpreted in common trade parlance and HSN usage to mean hand-held mobile phones; stationary fixed wireless telephones and fixed wireless terminals that merely use cellular technology are excluded from that notification entry. A later amendment separately covers Fixed Wireless Terminals under a different entry, and misrepresentation of fixed wireless telephones as fixed wireless terminals to obtain exemption is cautioned against.

Coke Breeze treated as process waste-exempt from customs and anti dumping duty when cleared; excess triggers enquiry.
Coke Breeze generated during charging of Metallurgical Coke to blast furnaces is a distinct product with different properties and uses, eligible for separate excise classification under heading 2704.00 (nil tariff); therefore customs and anti dumping duties should not be charged on Coke Breeze cleared from the factory, subject to enquiry by the Assistant Commissioner/Deputy Commissioner where generation exceeds normal proportions.

Mutual fund risk disclosure requirement: advertisements must show prominent market risk warnings and benchmark comparisons.
Mutual funds must include a clear market risk disclosure in advertisements with media specific prominence and legibility standards; sales and promotional materials (including fact sheets, research reports, newsletters, telemarketing scripts and press releases) are subject to the same standards. Performance advertisements must disclose benchmark returns for the same periods; money market scheme returns may be shown on short annualised horizons; exclusions of distribution taxes in reinvestment return calculations must be disclosed; dividend payout ads must note the consequent NAV reduction and taxes. Rankings must be current to the most recent quarter or applicable periodicity prior to publication or use.

Failure to pay regulatory fees triggers suspension of registration and potential enforcement under securities regulations.
Brokers must pay registration fees as required by Schedule III; failure permits the Board under Regulation 10(2) to suspend registration and stop brokers from dealing in securities. Non-compliance with registration conditions, including unpaid fees, may lead to enquiry and penalties under SEBI procedure regulations. A previously provided transitional facility for partial payment and undertakings was withdrawn; brokers who did not comply and whose collections are not stayed by court must pay outstanding fees and interest up to the stated financial year by the prescribed deadline or face enforcement under the SEBI Act and broker regulations.

Close out mark up: reduced treatment for high grade debentures, with existing mark up retained for other securities.
SEBI directs a differential close out mark up: debentures and bonds rated triple A or above are subject to a lower close out mark up while other debentures, bonds and equities remain subject to the existing higher mark up. Exchanges must amend bye laws and notify members and investors, publish the change on their websites, and report implementation status to SEBI, pursuant to powers under section 11(1) of the SEBI Act read with section 10 of the Securities Contracts (Regulation) Act to protect investor interests and regulate the market.

Broker inspections require expanded annual coverage with transparent selection and mandatory quarterly reporting and follow-up.
Stock exchanges must increase annual inspections of active brokers, including subsidiaries of other exchanges registered as brokers, adopt transparent selection criteria and an inspection policy, ensure comprehensive inspections with adequate follow-up and disciplinary action, and submit standardized quarterly reports in a two-part format detailing summary metrics and comprehensive broker level inspection records.

Mandatory IEC returns: filing deadline moved; failure to file triggers IEC blocking or deactivation until reactivation fee paid.
IEC holders must furnish online yearly trade returns detailing foreign exchange earned as FOB of goods manufactured, FOB of goods not manufactured, and "Other than exports" services. Values in non US currencies must be converted to rupees and then to US dollars using the Ministry of Finance exchange rate as of 31 March 2003. Product groups and continental exports must be ranked by FOB value. The filing deadline is amended to 31st October; non filing results in IEC blocking or inoperation from 1st November, with reactivation available upon payment of a fee and submission of data.

Duty drawback deletion prompts exporters to claim brand rate under rule six of Drawback Rules after removal of forgings entries
The Drawback Schedule entries for non-alloy and alloy steel forgings were deleted due to misuse; exporters must henceforth claim drawback under the brand rate in terms of rule six of the Customs and Central Excise Duties Drawback Rules, 1995, and field formations are to issue public notices and standing orders to inform trade and staff.

Exports from Inland Container Depots now permitted to be shipped from any notified seaport, removing prior port restriction.
An amending customs notification omits prior provisos that required exports delivered through certain Inland Container Depots to be shipped only via specific seaports; henceforth goods received from ICDs may be shipped from any notified seaport, and public notices and standing orders are to be issued to inform trade and guide staff.

Service tax applicability clarified: repairs of motor cars, light motor vehicles and two wheelers by authorized stations are taxable.
Corrigendum amends the Circular's phrasing to state that light motor vehicles like maxi cabs were not covered. It clarifies that service tax is not leviable on services or repairs of buses or trucks, and that only services or repairs of motor cars, light motor vehicles or two wheelers performed by an authorized service station are chargeable to service tax.

Royalty payment liberalization: companies may remit royalties on the automatic approval route without duration limits, subject to lump sum caps.
Policy permits all companies with foreign technology collaboration agreements to make royalty payments on the automatic approval route at the prescribed export and domestic rates without any restriction on duration, while retaining the existing ceiling on lumpsum fee and royalty payments under the automatic route.

Consolidation of mutual fund schemes requires board approval, investor exit at prevailing NAV, and detailed investor disclosures.
Consolidation of mutual fund schemes is a change in fundamental attributes and requires approval by the Boards of the AMC and Trustees, and filing of the proposal, draft offer document and draft unitholder letter with SEBI. Unitholders must be offered an exit at prevailing NAV without exit load with specified disclosures including the new scheme's features, unit allocation illustration, percentages of NPAs and illiquid assets, and tax impact. AMCs must maintain dispatch records and file a report to SEBI detailing unitholder numbers and net assets pre- and post-consolidation.

Kimberley Process Certificate requirement: rough diamond consignments must be accompanied by KP Certificates for Customs clearance.
Imports and exports of rough diamonds require a Kimberley Process Certificate (KP Certificate); the Gem and Jewellery Export Promotion Council (GJEPC) is the designated authority to verify, endorse and issue KP Certificates, retain originals with Customs, and provide validated copies for Bill of Entry or Shipping Bill filings. Customs will physically examine 25% of each consignment (minimum one lot), will not clear consignments without KP Certificates, and importers lacking originals have seven working days to produce them or face return of goods to the exporting authority.