Special Additional Duty drawback allowed where customs law grants drawback on any customs duty, restoring entitlement for exporters.
The document addresses whether drawback may be claimed on the Special Additional Duty component of customs duty. An earlier legal view interpreted the tariff provision as not providing for drawback on SAD and temporarily disallowed it. After representations and review, including a policy opinion that government intent was to allow such drawback, customs leadership directed that drawback on the SAD element should be afforded and administrative guidance issued.

Remittance exemption for consultancy payments: no prior RBI approval if paid from EEFC accounts under government notification.
Where remittances for consultancy services are made out of funds held in Exchange Earners' Foreign Currency (EEFC) accounts, prior approval of the Reserve Bank is not required under the government notification (Rule 6(2)), thereby exempting such EEFC-sourced consultancy payments from the departmental prior-approval requirement.

Remittance of inherited assets: permitted for eligible foreign nationals and NRIs subject to annual limit and tax clearance.
Authorised dealers may permit remittance out of assets in India acquired by inheritance or legacy by foreign citizens (excluding Nepal and Bhutan), Non Resident Indians and Persons of Indian Origin up to the enhanced ceiling per calendar year on production of documentary evidence of acquisition and a tax clearance/No Objection Certificate from the Income Tax authority; where remittance is in instalments, all instalments must be routed through the same authorised dealer.

Foreign exchange regulation for insurance: permitted foreign currency accounts, reinsurance remittances and conditional claim settlements under prescribed documentation.
The memorandum sets exchange control rules under FEMA for general insurance covering issuance of policies, premium receipt and claims settlement in rupees or foreign currency; it permits IRDA registered and public sector insurers to decide annual reinsurance programmes (with Board approval) and allows designated authorised dealers to make remittances under those approved arrangements, subject to specified documentary requirements, residency rules, limitations on foreign currency payments, maintenance of foreign currency accounts abroad with minimal balances, and RBI approval where exceptions arise.

Release of foreign exchange for medical treatment allowed on applicant declaration, subject to payment by cheque, debit, or demand draft.
Authorised dealers may release foreign exchange for medical treatment abroad on the applicant's declaration without requiring a hospital/doctor estimate, subject to the circular's specified limit, and provided payment is made by cheque, debit to the applicant account, or demand draft.

Small value remittances: simplified declaration allows authorised dealers to release foreign exchange for permissible purposes.
Authorised dealers may effect small-value remittances for permissible purposes on the basis of a simple signed letter containing remitter and beneficiary details, amount and purpose; submission of the A2 Form need not be insisted upon. No supporting documents are required where payment is by cheque on the remitter's account or by demand draft, provided the authorised dealer reasonably satisfies himself that the transaction is not designed to contravene FEMA.

Work allocation in tax administration: standardized sectional responsibilities to ensure correct routing and expedite technical policy matters.
The Circular prescribes a detailed allocation of responsibilities among CBEC Sections for tariff classification, legislation, valuation, exemptions, service tax and customs procedures, enforcement, litigation oversight, international customs matters, drawback and export schemes, and related administrative tasks. It directs strict adherence to these distribution norms, requires technical references to specify the appropriate Policy Section to prevent misrouting and delays, notes that the Tax Research Unit is overburdened by misplaced technical queries, and instructs circulation and acknowledgement of the work distribution to field formations and responsible officers.

Work distribution among CBEC sections clarifies section responsibilities to ensure technical references route to the correct policy unit.
Directs strict adherence to a detailed section wise allocation of technical, legislative and administrative functions across the Central Board of Excise & Customs, requiring that all technical references to the Board identify the specific Policy Section concerned so matters are routed and processed expeditiously. The circular assigns tariff classification, valuation, exemptions, legislative drafting, Service Tax and Customs policy, audit and judicial functions, anti smuggling and export related schemes to designated Sections and records contact points for coordination.

TDS exemption for co-operative bank members: interest on deposits received without withholding, subject to qualifying membership.
Section 194A exemption permits a member of a co-operative bank to receive interest on both time deposits and deposits other than time deposits without TDS; clause (viia) applies only to non-member depositors for interest on deposits other than time deposits. The member exemption is confined to members admitted per registration and bye-laws who have subscribed and fully paid at least one share, have voting/participation rights in general meetings, and are entitled to share in profits.

Customs duty exemption: accept Major General-signed certificates as equivalent to Joint Secretary for defence imports eligibility.
Full customs duty exemption for specified defence imports is available on production of a duty exemption certificate; certificates signed by a Major General must be accepted because the warrant of precedence equates that rank to a Joint Secretary, the prescribed signatory for the exemption.

Constitution of Company Law Board Benches allocates matters to Principal, Regional and Single Member benches with territorial jurisdiction.
Constitution of Company Law Board benches assigns corporate reorganisation, revival, winding up and Chapter VI matters to a Principal Bench and an Additional Principal Bench at Chennai with named Members; interlocutory and miscellaneous applications may be heard by a Single Member. The Additional Principal Bench's territorial jurisdiction covers specified southern States and Union Territories. Regional Benches handle certain listed provisions while Single Member benches at Regional Benches deal with other Companies Act matters and specified Reserve Bank matters. Benches may sit anywhere in India and may refer matters to the Principal Bench for joint consultation.

Excise exemption restored for hand processing and SSI concession reinstated for ball and roller bearing industry.
Restoration reinstates duty-free treatment for woven fabrics processed under specified processes in factories without facilities for bleaching, dyeing or printing by power or steam, covering basic and additional duties, and removes levy and deemed credit provisions for open-air stentering; it also restores general SSI exemption eligibility for the ball and roller bearing industry, treats prior clearances as part of the exemption limit computation and precludes refunds for clearances on which duty was paid before restoration.

Endorsement change for advance licences: licences may be amended to reflect the notification dispensing with DEEC Books.
Advance licences issued with endorsement of Customs Notification No.50/51/2000, despite discontinuation of DEEC Books under the Exim Policy from 1.4.2002, may be amended at the request of the licence holder to endorse Customs Notification No.43/2002 (dtd.19.4.2002) where licence holders face difficulties with customs, aligning endorsements with the notification that dispensed with the DEEC Book requirement.

Present market value rule: DEPB credit based on market value when declared FOB exceeds market value; fraud investigations permitted later.
Where declared FOB exceeds the present market value as declared by the exporter or ascertained by Customs, the present market value shall be the basis for allowing DEPB credit; this applies to all export products regardless of DEPB rate. Verification of present market value must be conducted by the Special Intelligence & Investigation Branch, with enquiries completed within thirty days, extendable up to ninety days by the Commissioner and further extendable for fraud after recording reasons. Fraud, collusion, wilful mis-statement or suppression cases may be opened within a five-year period and recovery notices issued.

Evidence of import requirements: authorised dealers must secure documentary proof and submit half yearly import reports.
Authorised dealers must obtain prescribed documentary evidence for import-related foreign exchange remittances above the revised threshold and rigorously follow up on non-submission, forwarding a half-yearly Form BEF to the Reserve Bank with details of such transactions. For remittances below the higher secondary threshold, dealers may accept the Exchange Control copy of Bill of Entry or a CEO/Auditor certificate confirming import where the importer is a listed company meeting a net worth criterion or a Public Sector/Government undertaking.

Foreign exchange reporting: Submission of low value A1/A2 forms discontinued, altering authorised dealers' R return obligations effective immediately.
Submission of A1 and A2 forms with R Returns for payments below the equivalent of Rs.5,00,000 for all types of foreign exchange transactions may be discontinued; authorised dealers are to submit R Returns in the revised manner for the fortnight ending August 31, 2002 onwards. The directions are issued under the Foreign Exchange Management Act, 1999, under Section 10(4) and Section 11(1).

Exemption from customs and excise duties for potable water treatment plants covers machinery and specified pipes subject to local certification.
Exemption from Customs and Central Excise duties is extended to water treatment projects supplying potable water for human or animal consumption. Customs treatment allows assessment as project import with nil duties for machinery, equipment and components including CKD/SKD, subject to district-level certification; industrial water plants are excluded. Central Excise grants full exemption for machinery and for pipes conveying raw water to the plant and treated water to storage, but not for pipes from storage to points of consumption, conditional on the same certification.

Reimbursement claim deadline for exports against State Credits shortened; late claims accepted only on fresh foreign confirmation.
Authorised dealers must lodge reimbursement claims for exports against repayment of State Credits so that documents negotiated within LC validity reach the Reserve Bank of India, Deposit Accounts Department, Mumbai, within the newly prescribed 27 working day lodging period from the date of expiry of the LC, excluding days when the Mumbai office is closed; claims received after that period will be processed only on receipt of fresh confirmation from the Bank for Foreign Economic Affairs.

Predominance rule: chenille fabric classification follows the composition of chenille yarn, determining applicable tariff headings.
Classification of chenille fabrics depends on the composition of the chenille yarn that produces the pile surface; the ground fabric is disregarded. The predominance factor governs: chenille yarn predominantly of wool or fine animal hair, cotton, or man-made fibres leads to classification under the respective wool, cotton, or man-made-fibre chenille subheadings, while chenille yarns of other textile materials classify under the residual chenille subheading. Processed chenille fabrics follow the corresponding processed subheading.

Concessional removal of goods allowed after partial processing or other operations when permitted by the Commissioner to protect revenue.
Goods removed under the concessional removal rules may be allowed to be taken outside the factory either as such or after partial processing for test, repair, refining, reconditioning or any other operations necessary to complete the industrial process and returned thereafter for further use; such removal may be permitted by the Commissioner by exercising his powers under the central excise rules, subject to safeguards to protect revenue, and the prior Board circular is modified accordingly.