Special Import Licence eligibility clarified; filing and jurisdiction rules require specific authority and declared combined applications.
The circular clarifies that Special Import Licence benefits under specified Handbook provisions are mutually exclusive and prescribes filing jurisdiction: EOU/EPZ units without DTA branches must apply to the Development Commissioner; entities with both EOU/EPZ and DTA offices must file a combined application with the Regional Licensing Authority and declare no prior SIL claim from the Development Commissioner; firms whose head office and branches fall under different Regional Licensing Authorities must aggregate export performance and apply to the Regional Licensing Authority of the registered/head office with a declaration of no parallel filings. It also confirms the temporal eligibility criteria introduced by the relevant Public Notice.

Classification of plastic casings: treated as other articles of plastics, not as pipes used for conveying fluids.
Plastic casing, cappings and their fittings used to enclose electrical wiring are not hollow one-piece tubes or pipes used for conveying gases or liquids; they are two-part enclosures not marketed as tubes and therefore fall outside the tubes-and-pipes tariff description and should be classed as other articles of plastics under the residual plastics heading.

Deemed export benefits not available to domestic suppliers for supply to power transmission projects under EXIM policy clarification.
The DGFT clarifies that the EXIM Policy deemed export concession for the power sector does not apply to supplies to power transmission projects, including transmission lines, substations, load dispatch and communication projects, and that domestic suppliers to such transmission projects are not entitled to the deemed export dispensation.

Classification of plastic irrigation components: general-use pipes classed as plastic articles, exclusive-use parts classed as equipment parts.
Plastic pipes and tubes that are not solely or principally for sprinkler irrigation are classifiable as articles of plastics under the plastics heading by application of the specificity rule and prior Board guidance. Pipe fittings of general use are classifiable as parts of general use under the appropriate metal or fittings chapters according to composition. Plastic parts modified or shaped exclusively for sprinkler equipment, having no other use, are classifiable as parts of sprinkler irrigation equipment.

Classification of traditional-system medicines: apply Ayurvedic criteria; alcohol-containing preparations fall outside central excise for taxation.
Products claimed to be medicines in the Unani, Siddha and Homeopathic systems are to be classified by applying the Board's criteria for Ayurvedic medicines mutatis mutandis, using the same compositional and classificatory approach; preparations containing alcohol are excluded from the Central Excise Tariff Act under the relevant chapter notes, and pending disputes/assessments should be settled in accordance with these guidelines.

Deeming of rescinded EOU notifications: earlier imports eligible for destruction under current notification; outside-zone destruction permitted with conditions.
Actions and imports under seven earlier EOU notifications are deemed to have been taken under Notification No.133/94-Cus, allowing imported goods to be destroyed under para 7(ii) and scrap/waste under para 7(iii); where in-zone destruction is precluded for safety or municipal reasons, the Commissioner may permit destruction outside the Zone subject to prescribed conditions.

Temporary removal of duty-free laptops and projection systems permitted for software development under specified authorization and record conditions.
Duty-free Laptop computers and Video Projection Systems imported by STP/EHTP/EPZ units may be taken outside the bonded area temporarily for software development or display, provided the unit issues a monthly certificate naming the authorised employee and describing the equipment, maintains records of authorisations and movements for inspection by the Assistant Commissioner, ensures equipment is returned and accounted for, and may obtain a general permission for up to six months for specified employees and equipment.

Deductible sales tax: deferred or government-retained sales tax reduces assessable value under central excise law.
Where sales tax is not payable by law (exemption) it cannot be deducted from the wholesale price; however, sales tax that is deferred or treated as payable because a State incentive credits an equivalent amount as payment is considered payable by the assessee and is deductible from the wholesale price for determination of assessable value for central excise duty.

Relaxation of customs formalities: vessels carrying exclusively coastal goods exempted from IGM/EGM filing and Advice Book delivery.
Vessels carrying exclusively coastal goods are not required to file IGM/EGM due to rescission of the earlier notification; they are also exempted from delivering the Advice Book at each port of call, while the master must carry the Advice Book on board and customs officers may call for or inspect it when necessary.

Fast Track Clearance eligibility expanded to include electronic imports by large manufacturers; PD account balance removed; manufacturers' storage hold relaxed.
Amendments expand Fast Track Clearance so electronic items are eligible when imported by manufacturers meeting the Scheme's investment threshold, defined as total capital employed in plant and machinery from equity or debt. The minimum PD account balance requirement is deleted. The three day post clearance storage obligation is waived for manufacturers who can use goods immediately, but traders importing for resale must not dispose of goods for three days including transit.

Single bond requirement for exporters: consolidated surety bond authorises duty free clearance and job work movements.
A consolidated single bond (B-17) shall replace multiple bonds for 100% EOUs and units in EPZ/FTZ/STP/EHTP schemes to cover liabilities under Customs and Central Excise; only a surety bond is to be taken, executed before the Assistant Commissioner who issues a certificate authorising duty free clearance and job work movements, while existing annexure II procedures continue for domestic procurement and failure to receive rewarehousing certificates within ninety days triggers a demand notice procedure.

Rejection of declared value allows customs to question and set aside invoice value where reasonable doubt exists, with procedural safeguards.
Rule 10A authorises the proper officer to reject a declared transaction value when there is reason to doubt its truth or accuracy; the officer may seek further information and, if doubt persists, the value is treated as not determinable under the transaction value provisions. On request the officer must state grounds for doubt in writing and provide a reasonable opportunity to be heard before a final decision is taken.

Trading House status conversion allowed for exporters meeting revised notification criteria, with application and entitlement to adjusted SIL.
Exporters recognised or renewed for the period commencing 1.4.97 who satisfy the revised criteria of Notification No.19/1997-2002 may be granted Trading House/Star Trading House/Super Star Trading House status upon application to DGFT HQ using Appendix 19 with prescribed documents and the original status certificate. They retain the NFE/FOB option and endorsement for the relevant licensing year as earlier exercised, and are entitled to SIL equal to the difference between the CIF value eligible under the new certificate and the CIF value of SIL already issued under the earlier certificate.

Relaxed value addition norms permit export of X-ray baggage and cargo inspection apparatus to the Russian Federation under specified ITC classification.
The Director General of Foreign Trade, under Export and Import Policy, 1997-2002 (paragraphs 4.11 and 7.10), has included "X-ray apparatus for baggage and cargo inspection (Exim Code No. 90.22)" in Annexure-1 to Appendix-39, permitting its export to the Russian Federation under relaxed value addition norms and in accordance with its ITC (HS) classification in the Handbook of Procedures, Vol. I.

Warehousing extension may be granted after expiry in exceptional circumstances, subject to the Chief Commissioner's discretionary assessment.
Section 61 allows extensions of the warehousing period by the Commissioner and Chief Commissioner; importers should apply before expiry. In exceptional circumstances the Chief Commissioner may grant post expiry extensions after assessing the exceptional circumstances, nature of the commodity, duty rates and risk of revenue loss, licensing aspects and related factors.

Ineffective IEC numbers render exports and imports ineligible, prompting invalidity and recovery proceedings for any benefits claimed.
Exports and imports effected under an ineffective IEC-arising when changes in name, constitution or ownership are not endorsed within sixty days under Para 15.4-are invalid; the IEC holder ceases to be eligible to export/import, RLAs must circulate details of such ineffective IECs to other RLAs, Customs and the banking authority, and any benefits claimed for transactions during the interlude are subject to recovery. A fresh IEC may be applied for and decided by the RLA under policy.

Special Currency Basket value revised under Indo USSR deferred payments protocols, affecting computation of Rupee equivalents for deferred contracts.
The Reserve Bank of India revised the Indian Rupee valuation of the Special Currency Basket, effective 23 January 1998, for application to deferred payment contracts concluded under the Indo USSR Deferred Payments Protocols dated 30 April 1981 and 23 December 1985, and the revision applies to all contracts entered into under those protocols for computing Rupee equivalents for payments.

LUT limit for overseas companies: amended eligibility ties entitlement to preceding three years' average diamond turnover.
An amendment to Para 8.14(a), Chapter 8, HBP Vol. I adds a new entry establishing that an overseas company with a branch office in India which meets the specified annual average turnover in diamonds during the preceding three licensing years is entitled to claim an LUT benefit calculated as a proportion of that annual average turnover for the preceding three licensing years.

Trade permission: amendment allows imports and exports with Fiji, permitting trade with all countries except Iraq.
Amendment under Paragraph 4.11 revises Handbook of Procedures (Vol. 1) Paragraph 4.2 to permit imports and exports to and from any country except Iraq, making trade with Fiji permissible unless otherwise specifically provided; issued as a Public Notice by the Director General of Foreign Trade.

Running serial number requirement ensures circulars issued only after registration and record copies are submitted for administrative control.
All customs circulars, instructions and orders of a general nature must be issued only after obtaining a running serial number, with all Sections in the Customs, Drawback and Anti Smuggling Wings regularly sending instructions and clarifications to Chief Commissioners/Commissioners and relevant Board customs sections; two copies of each circular/instruction must be furnished to Customs III Section for record and duplicates sent to formations that did not receive the original.