Port restrictions on natural rubber: SEZ imports exempted while duty-exemption schemes otherwise remain barred.
Port restrictions on imports of natural rubber do not apply to units in Special Economic Zones, but imports of natural rubber are not permitted under any duty-exemption schemes except for SEZ units; EOU and EPZ imports remain disallowed.

Valuation of job-work goods: job charges plus attributable material and royalty costs determine assessable value
Valuation of goods manufactured on job-work basis requires adding the job-worker's charges (including any profit not already included) to the cost of materials used, including items supplied free. For recorded media, royalty and studio-recording costs attributable to each unit must be apportioned-using the ratio of royalty-plus-recording costs to the copyright owner's net sales-and added to job-charges. Assessments may be provisional pending prior-year data; suppliers must provide wholesale price, royalty and free-material cost details for finalisation.

Overseas direct investment restrictions: two tier structures need prior RBI approval and defaulters barred from automatic route.
Indian parties may invest directly abroad in a Joint Venture or Wholly Owned Subsidiary under Regulation 6, but proposals using a holding company or Special Purpose Vehicle abroad that sets up step down subsidiaries require prior Reserve Bank approval. Parties on the Reserve Bank's Caution List or the Defaulters List are not eligible for the automatic route; authorised dealers must verify remitters are not listed and advise listed parties to seek prior approval from the Reserve Bank.

Accrual taxation of deep discount bonds: annual mark-to-market accrual taxed as interest or business income.
Income from deep discount bonds is to be taxed annually by marking each bond to market on the financial year valuation date under RBI valuation guidelines; the increase between successive valuation dates is taxable as interest income for investors or business income for traders. On transfer before maturity, sale proceeds over adjusted cost (acquisition cost plus income already taxed under annual valuation) are taxable as capital gains for investors or business income for traders. On redemption, taxable income equals redemption price less last valuation date value (or adjusted cost for intermediate purchasers). STRIPS follow the same treatment and stripping/reconstitution is not a transfer.

Export credit financing under Exim Bank's line of credit secures payment via approved irrevocable letters of credit.
Exim Bank extended a line of credit to PTA Bank to finance exports of eligible goods and related services to PTA member countries, requiring Exim Bank approval of contracts, contracts in U.S. dollars above a minimum value, an advance payment by buyers, and balance payment via irrevocable letters of credit subject to the Uniform Customs and Practice for Documentary Credits. Negotiating banks pay beneficiaries in Indian rupees on presentation of conforming documents and are reimbursed by Exim Bank in U.S. dollars; inspection certificates, GR/SDF declaration and documentation procedures, commission restrictions, and specified terminal dates apply under directions issued under the Foreign Exchange Management Act.

Central Excise chargeability affirmed for EOU clearances to domestic market, duty leviable under Section 3(1) despite export restrictions.
The Board clarifies that clearances by 100% EOUs to the domestic tariff area remain chargeable to duty under Section 3(1) of the Central Excise Act even where such goods were "not allowed" to be sold in India; the proviso to Section 3(1) does not remove main chargeability. The circular notes a legislative amendment replacing "allowed to be sold" with "brought to any other place" and directs corrective action against interpretations treating these clearances as leviable only under the Customs Act.

Two-way fungibility of depository receipts permits conversion between Indian shares and ADRs/GDRs under FEMA-enabled guidelines.
Two-way fungibility of ADRs/GDRs is authorised under the foreign exchange framework, permitting conversion between Indian equity and depository receipts subject to the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and related Central Government guidelines; RBI issued operative guidelines implementing a limited two-way fungibility mechanism and confirmed the notifications provide the statutory basis, directing authorised dealers to inform constituents and relying on powers under the Foreign Exchange Management Act.

FII position limits restrict fresh trading on breach while permitting offsetting transactions to reduce derivative exposure.
FIIs may trade all exchange traded derivative contracts subject to position limits: at the FII level index positions capped at 15% of open interest and single stock positions at 7.5% of open interest (each with specified higher floors); at sub account level gross positions on a stock limited to the higher of 1% of free float market capitalisation or 5% of open interest. Exchanges and clearing entities will monitor positions daily using unique FII and sub account codes, with confirmed positions submitted by clearing members; breaches bar fresh positions but permit offsetting transactions. Positions are computed gross for FIIs, net for sub accounts, and valued by open interest times closing price.

Misdeclaration procedure for licence valuations applies to all VABALs issued from April 1992 onward under policy circular.
Policy Circular No.23 dated 22.10.1997 prescribes procedures for suspected misdeclaration of value in licence applications and is clarified to apply to all VABALs issued from 01.04.1992 onwards; port office queries prompted a policy review which confirmed that the Circular's procedural framework governs suspected valuation misdeclaration for VABALs issued on or after 1 April 1992.

Return of customs deposits simplified: written request plus attested appellate order and TR-6 challan suffices for refund processing.
Claimants depositing security under Section 129E may obtain return of deposits by submitting a simple written request to the concerned Assistant/Deputy Commissioner of Customs, together with an attested copy of the appellate or CEGAT order showing entitlement and the original TR-6 challan evidencing payment; pending formal refund applications will be treated and processed as such, and bank guarantees executed in lieu of cash deposits shall also be returned.

Referral authority for classification: only Commissioners or Chief Commissioners may seek Board clarification; field must decide cases promptly.
Classification and interpretation of drawback entries must be resolved by field adjudicating officers, who should pass appealable speaking orders; only Commissioners or Chief Commissioners may refer substantial matters to the Board. Junior officers must not send classification queries or sealed samples directly to the Board. Field formations must dispose of exporter queries locally, issue standing orders for staff and trade guidance, and view unauthorized deviations seriously with potential disciplinary action.

Acceptance of deposits amendment circulated; stakeholders instructed to note Notification GSR and promptly acknowledge receipt.
The Department of Company Affairs circulated the Gazette notification The Companies (Acceptance of Deposits) Amendment Rules, 2002 (GSR 77(E), 04.02.2002) to all Regional Directors, Registrars of Companies and Official Liquidators, directing them to note the amendment, take necessary administrative action for implementation, and acknowledge receipt to the Department to confirm dissemination and ensure regulatory compliance.

Drawback rate application: distinct garment tariff entries attract separate drawback rates; do not aggregate into a single set rate.
Field formations must apply the specific drawback rates and caps in the current Drawback Table for Chapter 62 ready-made garments; the prior practice treating multiple garments as a single Set stemmed from a previous, generic Table and is not applicable where the 2001-2002 Table provides individual entries. SS Nos.62.09 and 62.10 apply only to items not specifically listed in SS Nos.62.01-62.08. Issue public notice and standing orders to ensure staff and trade apply individual rates and caps rather than aggregating distinct entries.

Monitoring of NFE deferred for EOU/EPZ/EHTP/STP/SEZ units, treating 2001-2002 as a blank year under export policy.
The Director General of Foreign Trade, relying on Paragraph 4.11 of the Export and Import Policy 1997-2002, notifies that 2001-2002 shall be treated as a blank year and that monitoring of Net Foreign Exchange (NFE) for EOU, EPZ, EHTP, STP and SEZ units is deferred for the period 1 April 2001 to 31 March 2002 as a public interest administrative measure.

Amendments to DEPB rates update export benefit entitlements and revise agency addresses and certification listings.
Amendment fixes DEPB rates and value caps for specified Engineering, Chemicals, Plastics and Textiles exports in Appendix 28A, and updates administrative records: the Moradabad Joint DGFT address and jurisdiction in Appendix 27, corrected Spices Board regional office addresses in Appendix 31, the SGS India Private Limited address in Appendix 32A, and adds a Chamber of Commerce to Appendix 51B as an authorised issuer of non preferential Certificates of Origin for Tamil Nadu.

Agri Export Zone designation notifies new crop-specific zones and revises district coverage for export promotion.
Notification designates new Agri Export Zones and amends district coverage in Appendix 59 under the Export and Import Policy 1997-2002. New zones: Cut Flowers in Tamil Nadu (Dharmapuri) and Grape and Grapewine in Maharashtra (Nasik, Sangli, Pune, Sholapur, Satara, Ahmednagar). Amendments reassign Pineapple in West Bengal to Darjeeling, Uttar Dinajpur, Cooch Behar and Jalpaiguri, and Lychees in Uttranchal to Udhamsingh Nagar, Nainital and Dehradun.

Service Tax Audit expanded to selected metropolitan assessees with mandatory proforma, reconciliations and risk analysis.
The Board extends selective Service Tax Audit coverage to named metropolitan assessees listed in Annexure I, preserving prior norms for stock broking, telephones and non life insurance. Audits are limited to accounts from 1999-2000 (or from July 2001 for newly taxed services), to be completed within ten working days using the Annexure II proforma. Audit teams should follow EA 2000 methods, perform preliminary reviews, document systems and tax accounting, evaluate internal controls, conduct reconciliations and a sample Risk Loss Analysis, verify registration, returns, payments and exemptions, and submit structured reports with findings, assessee responses and follow up actions.

Proforma requirement for filing SLPs: stricter completeness and 45 day advance submission required and adherence to monetary limits enforced.
The Board prescribes a revised Proforma 'B' for SLP proposals requiring strict completion, specified documentary enclosures, a date-wise movement annexure, and confirmation that the proposal reaches the Board at least 45 days before the limitation date. Proposals without a completed Proforma 'B' or sent contrary to prescribed monetary limits will be returned to the CCIT and delays attributed to the CCIT's office; the instruction is effective immediately.

Removal of duty-free goods to another eligible manufacturer allowed, subject to recipient registration and commissioner approval for external tests.
Removal of goods received duty-free may be made to another eligible manufacturer provided the recipient obtains registration under the Rules; movements outside the factory for testing, repair, refining or reconditioning and return can be authorised by the Commissioner through supplementary powers under the Central Excise (No.2) Rules, 2001.

Classification of Shikakai powder as excisable under Chapter 33 affirmed, rendering it subject to central excise duty.
The conversion of raw Shikakai into Shikakai Powder is treated as manufacture, placing the powder within Chapter 33 of the Central Excise Tariff Act and making it chargeable to excise duty; the board has accepted the judicial rulings and directed field formations and traders to settle pending disputes and assessments accordingly.