Revised Customs Classification Codes require import DTRs to be transmitted using new codes to ensure consistent data processing.
Field formations must transmit all import DTRs-EDI, non EDI and manual-using the revised 8 digit Customs Classification Codes adopted from 1 February 2003; reporting with both old and new codes will disrupt centralised data processing and prevent timely adoption of the new classification. Issue instructions to all formations, send an immediate compliance report to the Board, and acknowledge receipt.

Concessional import duty eligibility extends to imports by third parties when goods are delivered to eligible institutions.
The Board clarifies that the concessional customs duty under Notification 51/96-Cus. must be allowed where goods are imported for delivery to an institution specified in the notification, even if the importer is not one of the entities listed, and directs issuance of a public notice to inform trade.

Central Excise valuation parity for demo cars requires the same duty as normal dealer supplies.
Demo Cars supplied by manufacturers to dealers must be assessed and charged the same central excise duty as similar normal passenger cars; contractual arrangements or reduced consideration for demo cars do not permit a different taxable value because demo cars are manufactured like other passenger cars.

Central excise exemption and textile rule revisions restrict threshold calculations and defer penal duty measures pending payment.
Amendments revise exemption scope and threshold calculations by excluding exempted clearances and export-zone clearances from specified thresholds, delay penal action for non-payment of assessed duty until one month after the due date, and implement textile-specific measures: expanded concessional import coverage, job-work extension to Chapter 63, conditional input credit for stock upon timely declaration, single-registration allowance within a Commissionerate for Chapters 50-63, consignor endorsement rules, factory-use exemption for printed frames, specified duty rates on certain embroidered fabrics, and a valuation rule applying section 4 when MRP is not declared.

Removal of time limit for export proceeds realisation empowers SEZ units to repatriate export value subject to procedural compliance.
SEZ units may repatriate export proceeds without any prescribed time limit while complying with GR/PP/SOFTEX procedures. They may undertake job work abroad with processing charges loaded into export price and ensured realisation arrangements. Gem and jewellery units and EOUs may accept specified precious metals as payment if contractually provided and values shown in export forms. Bilateral netting of export receivables against import payments is permitted subject to documentation, separate reporting, exclusion of ACU transactions, and submission of supporting documents. Equity issuance to non residents against import of capital goods is allowed with valuation committee verification and FC GPR reporting.

Subcontracting of production allowed in DTA with safeguards; permission subject to bona fide necessity and verification.
EOUs, STP/EHTP and SEZ units may send goods out for job-work and have them returned within ninety days; value-addition figures need not be supplied with the permission application. Subcontracting of production in DTA is allowed under the Exim Policy but requires satisfaction of bonafide necessity by the jurisdictional Assistant/Deputy Commissioner, verification of antecedents, application of existing conditions including bank guarantees, and may be denied where misuse or high risk is identified.

Duty free entitlement expansion permits verified import credits for exporters and service providers, enhancing export input access.
Amendments extend and clarify duty free import entitlements and export incentive schemes: Status holders and service providers may obtain Duty Free Entitlement Credit Certificates for specified imports subject to actual user conditions, Customs verification and use of notified ports; Advance Licences for annual requirements are reintroduced for status holders and Advance Licences for supplies to export processing zones are exempt from anti dumping and safeguard duties; DFRC benefits are extended to deemed exports with specified documentation; DEPB eligibility is granted for DTA supplies to SEZ units with Bills of Export and verification; EPCG obligations are recalibrated as a multiple of duty saved, allow used capital goods and expanded spares, and permit combined fulfilment by goods and services exports.

Duty drawback admissibility for supplies from DTA units to SEZs clarified, treating such supplies as physical exports eligible for drawback.
Goods moved from DTA to SEZ are to be treated as physical exports for drawback under the Customs Act and Drawback Rules; such supplies qualify for All Industry and Brand Rates. The SEZ is a Customs Station; goods must enter under a Bill of Export registered in the SEZ Customs formation and examined by Customs. Drawback is payable to the SEZ unit on the basis of a disclaimer certificate from the DTA unit and may be disbursed by cheque or direct credit to the SEZ unit's account.

Duty Drawback Rates revised: updated all-industry rates effective early April with sector-specific adjustments and SEZ eligibility.
Ministry revised the All Industry Rates of Duty Drawback effective 7 April 2003, updating the Drawback Table to reflect changes in customs and central excise duties, maintaining rates where input duties are unchanged, creating new entries for man-made fibre handloom made-ups, reducing rates for several textiles and carpets, adding clarifying notes for leather and bicycle entries, and treating supplies to Special Economic Zones as eligible for drawback with declaratory relief subject to field verification.

Unique client code requirement mandates exchanges to assign codes to mutual funds and FIIs, with implementation and reporting obligations.
SEBI directs exchanges to generate a unique client code for Mutual Funds and their schemes, and for Foreign Institutional Investors and sub-accounts, to facilitate T+2 rolling settlement; exchanges have three months to implement, must amend bye-laws and notify members, publish the change on their websites, and report implementation status to SEBI in the Monthly Development Report (Section II, item no. 13).

Cenvat credit withdrawal for light diesel oil requires reversal of any credits claimed on existing stock.
Budgetary amendment effective 1.3.2003 removed Cenvat credit eligibility for Light Diesel Oil by excluding LDO from the definition of input under the CENVAT Credit Rules, 2002; therefore LDO stock as on 28.2.2003 is not eligible for credit and any credit already availed on such stock must be reversed under Rule 3 of the Rules.

Input-output norms revised: amendments update SIONs to specify allowed import items, component lists and accounting requirements.
The Director General of Foreign Trade amends the Handbook of Procedures, Vol. II by fixing and modifying Standard Input Output Norms (SIONs). The Public Notice prescribes substitutions, corrections, deletions and additions to SION entries across Chemicals and Allied Products, Engineering Products, Food Products, Plastic Products and Miscellaneous Products; inserts new entries; and sets detailed import item lists, alternate inputs and allowable quantities with net-to-net/component accounting requirements as specified in Annexures A-F.

De-linking domestic sale of surplus power: domestic sales by EOUs in DTA not counted against DTA sale entitlement.
De-linking of domestic sale of surplus power by EOUs and export-zone units from domestic sale entitlements: sales of surplus captive-generated power in the DTA, permitted only after payment of duty foregone on inputs, are not treated as finished products and therefore shall not be counted against the unit's domestic sale entitlement under the Exim Policy. Development Commissioners must ensure captive plant capacity matches unit requirements and the earlier circular is modified accordingly.

DEPB rate revision: revised export benefit schedule effective, prescribing applicability, value cap and calculation rules.
Public Notice No. 02(RE-03) dated 31 March 2003 revises the Schedule of DEPB rates effective 1 April 2003, updating percentage rates and value caps across product groups and prescribing that entitlement is calculated by applying the notified DEPB rate to the FOB value or to the value cap, whichever is lower. The notice sets exclusions (bonded warehouse manufacture, Advance Licence/DFRC exports, 100% EOUs, FTZ/EPZ/SEZ/EHTP units, foreign-origin goods without substantial Indian processing), CKD/SKD and composite product rules, and documentation and formulation calculation requirements.

Notification of Revised Handbook of Procedures sets revised Vol I under export import policy, establishing operative procedural guidance for trade compliance.
Notification under the export import regulatory framework invokes paragraph 2.4 of the Export and Import Policy, 2002-07 to notify the Revised Handbook of Procedures (Vol. I, March 2003 edition) as the operative procedural instrument for exports and imports, effective 1 April 2003, with the Annexure containing the full revised text.

Continuation of foreign exchange relaxations under FEMA powers; authorised dealers to continue facilities until further notice.
Authorised dealers are informed that the relaxations and facilities set out in A.P. (DIR Series) Circular No.63 regarding risk management and inter bank dealings will continue until further notice; the directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999.

Declaration of stock requires assessees to disclose addresses of any off site premises holding textile stock.
Under rule 9A of the Cenvat Credit Rules, assessees must declare stock as of the transitional cut off and, if that stock is kept at locations other than the registered premises, must state the address of each such premise in the stock declaration.

Special currency basket valuation updated; authorised dealers must apply revised rupee value under FEMA provisions.
The Reserve Bank of India circular fixes the rupee value of the special currency basket at Rs.57.5227 effective from March 11, 2003, following a change on March 7, 2003, and advises authorised dealers to apply the revised valuation for transactions under the Deferred Payments Protocols; the directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999.

Registration of foreign drug manufacturers and mandatory import licences now govern all drug imports, with inspections and shelf life conditions.
Foreign manufacturers or their authorised agents must obtain a registration certificate for manufacturing premises and for each drug before importation; registration requires specified documents, prescribed fees, a defined validity, reporting of manufacturing or testing changes, and permits Indian authority inspections with additional fees and testing charges. Registration may be suspended or cancelled for violations. Import licences are required for all drug types after completion of registration, subject to validity periods, prescribed licence fees, deletion of prior exemptions for actual users, and a requirement that imported drugs meet a minimum retained shelf life. Government hospitals have a separate, limited import provision for essential new drugs.

Service tax rounding rules require amounts to be rounded to the nearest rupee, with paise at threshold rounded up.
The amount of service tax, interest, penalty, fine or any other sum payable, and any refund or other sum due, shall be rounded off to the nearest rupee; where paise are present, paise at or above the half rupee threshold are increased to one rupee and paise below that threshold are ignored, and trade notices should be issued to inform field formations and service providers of this rounding practice.