Line of credit enabling export finance with specified Indian sourcing and documentation requirements under foreign exchange directions.
Exim Bank's Line of Credit finances eligible Indian exports for a Maldives housing project, requiring at least 75 per cent of contract value to be supplied from India and permitting up to 25 per cent non consultancy procurement abroad; shipments must be declared on GR/SDF forms, no agency commission is payable under the LOC (exporters may use own funds or EEFC balances for commission subject to AD Category I compliance), and timelines for L/C opening and disbursement vary by contract type under RBI directions issued under the Foreign Exchange Management Act.

Prohibition on payment of incentives bars distribution-connected parties from offering incentives in public debt issues.
Persons connected with the issue, including distributors, are prohibited from offering any incentive, direct or indirect, in cash, kind, services or otherwise to any person for making an application for allotment of specified debt securities; legitimate fees or commission for services rendered in relation to the issue are exempt. Recognized stock exchanges must notify and disseminate the prohibition to their members, the measure being issued under the regulator's market-protection and debt-issuance regulatory powers to protect investor interests and curb issuance cost distortions.

In-Person Verification mandatory across intermediaries; one intermediary's IPV may be relied upon by another for KYC compliance.
Intermediaries must complete initial KYC, upload client KYC data and send supporting documents to a KRA within ten working days, maintain electronic records, ensure no duplication when uploading existing-client data conforming to the uniform KYC form, and implement internal controls for data security. KRAs must provide data/images to intermediaries, confirm receipt to clients within ten working days, prevent duplicate client entries through coordinated systems, maintain an audit trail of KYC transactions, and conduct annual independent audits with action taken reports to their board and to SEBI. IPV is mandatory, recorded on the KYC form, and may be relied upon across intermediaries.

Bar-coding requirement deferred for pharmaceutical export packaging, with secondary and primary packaging compliance start dates postponed.
The Directorate announces deferment of mandated bar-coding for export consignments of pharmaceuticals: the trace-and-track bar-coding requirement for secondary-level packaging is postponed to a later mid-year commencement and the requirement for primary-level packaging is postponed to a subsequent start in the following year, amending earlier public notices and extending compliance time under the Foreign Trade Policy.

KYC and AML compliance updated: passport copies accepted as ID and address proof for foreign tourists under PMLA obligations.
KYC, AML and CFT obligations for Authorised Persons in money changing are amended to allow acceptance of a foreign tourist's passport copy as both identity and address proof, and retention of a visa copy stamped by Indian immigration; other existing KYC instructions continue to apply and non compliance attracts prescribed penalties under the foreign exchange regulatory framework.

On-line transmission of export authorizations now mandatory at Krishnapatnam port; Customs to receive DES and EPCG messages.
Krishnapatnam Port (INKRI1) is added to Customs ports for on-line transmission; from 23 December 2011 all DES (Advance Authorization and DFIA) and EPCG authorizations issued on or after that date by Regional Authorities must be communicated to Customs through on-line message exchange/EDI.

Corrigendum: Export description corrected to Metamitron Technical (98%Min.) in the DEPB Rate Schedule.
Corrigendum under Paragraph 2.4 of the Foreign Trade Policy rectifies the export item description at Sl. No. 1011, Product Code-62 of the DEPB Rate Schedule to read "Metamitron Technical (98%Min.)" in place of the typographical "Metamitrion Tech (98%Min.)", limited solely to spelling correction and not affecting rates or other provisions.

Unaccompanied baggage at Chennai port moves to EDI: file BD, get exam, pay duties, and obtain out of charge for release.
Passengers must file the revised Baggage Declaration at the Service Centre during prescribed hours, pay the processing fee, verify and authorize a computer generated Check List, obtain an Open Chit, present the Check List to the Preventive Officer for passport verification and baggage examination, after which BD details are entered into the EDI and forwarded to the Superintendent. Final BD or TR 6 challan is generated for simple cases for payment at the Customs bank counter; other cases are routed online for assessment. Payment verification by the Superintendent and endorsement of an out of charge completes Customs release prior to CCTL gate pass and delivery.

Dematerialisation requirement enables shifting from trade-for-trade to rolling settlement when non-promoter holdings are substantially dematerialised.
SEBI directs stock exchanges to consider shifting securities with connectivity to both depositories from Trade for Trade Settlement to Rolling Settlement only if at least 50% of holdings other than promoters are dematerialised, evidenced by a certificate from the RTA or, where no RTA exists, from a practicing company secretary or chartered accountant, and provided no other reasons justify continuation of TFTS; exchanges must report actions taken to SEBI in their Monthly/Quarterly Development Reports.

Bank account compliance requires exporters to register certified IFSC and account details for electronic drawback credit via authorized bank.
Exporters claiming drawback must register and have certified by their bank the bank account number, bank name and address, and the IFS Code at the port of export; the certified form is submitted to the Deputy Commissioner and the authorized banking branch. Exporters must verify and sign a checklist after registration and repeat the registration procedure on any account change. Drawback payments are routed through the customs authorized bank branch which will credit same bank accounts directly or transfer to other core banking, RTGS/NEFT enabled banks via RTGS/NEFT, subject to RBI guidelines and charges.

Telecommunication service clarification: IPLC taxable only when provided by licensed telegraph authority under Indian Telegraph Act
IPLC is within the definition of telecommunication service but taxable only when provided by a supplier who qualifies as a telegraph authority under the licensing requirement; foreign providers that cannot constitute such an authority remain outside telecommunication service taxability. The prior view reclassifying such services as business support service is corrected.

Debenture Trustees must submit revised half yearly compliance reports and cannot include trust deed clauses that dilute investor rights.
Debenture Trustees must submit a revised half yearly electronic report covering compliance status, investor grievance redressal, details of debenture issues, defaults, and a compliance certificate; the Compliance Officer shall send the report within three months of each half year (effective from the half year ending March 2012), the board must review and record deficiencies and corrective measures, and any trust deed clauses that dilute or conflict with the mandatory provisions of Schedule IV are null and void.

External Commercial Borrowings: revised borrowing cap for MFIs and NGOs under automatic route with eligibility and safeguards.
ECB policy now permits MFIs and NGOs engaged in micro finance to raise ECB under the Automatic Route subject to eligibility (societies, trusts, cooperatives, NBFC-MFIs, Section 25 companies), lender safeguards and due diligence certification by the designated AD, permitted end-uses limited to lending for micro-credit and capacity building, compliance with existing ECB parameters, and AD responsibility to certify borrower status and ensure full forex hedging at drawdown.

Risk Management System access extended to non-accredited importers; mandatory duty credit scrip debit endorsement required.
RMS access is extended to non accredited importers for imports under VKGUY, FMS and FPS. Endorsement of duty debits on duty credit scrips is mandatory; ICES will execute system driven debits when the importer provides the scrip registration number, date and port at bill of entry filing. Group Appraisers will verify system and physical debits; a specific customs officer is designated for RMS clearance problems.

Risk Management System for import clearances extended to export-promotion schemes; license registration and mandatory duty-credit scrip debits required.
The Risk Management System has been extended to imports under specified export promotion schemes, applying existing RMS assessment, examination, out of charge and post clearance audit procedures mutatis mutandis. Importers must register licences/authorizations/scrips with the relevant Appraising Group and quote the registration number on the bill of entry. Endorsement of duty debits on duty credit scrips is mandatory; ICES will perform system driven debits when registration details are provided, and Group Appraisers will verify system and physical debits for facilitated and non facilitated bills.

Assignment of Show Cause Notice: transferred for adjudication under the Customs Act to the designated customs adjudicating authority.
The Board assigns the specified Show Cause Notice issued by the Directorate of Revenue Intelligence to the Commissioner of Customs, Custom House, Kandla, for the purpose of adjudication pursuant to the enabling notification under the Customs Act, thereby transferring adjudicatory responsibility to the designated customs commissioner.

Assignment of Show Cause Notice: administrative allocation to Commissioner of Customs for adjudication under customs delegation framework.
The Board assigns Show Cause Notice F.No.DRI/AZU/INV-45/2009 dated 03.11.2011 issued by the Additional Director General, Directorate of Revenue Intelligence, Ahmedabad, to the Commissioner of Customs, Custom House, Ahmedabad, for the purpose of adjudication under the delegation framework established by Notification No. 15/2002-Customs (N.T.).

Service tax refund electronic scheme: exporters may opt for ICES schedule-based refunds or document-based refunds.
A new electronic refund scheme allows exporters to choose ICES-based refunds under a schedule of rates or document-based refunds via Central Excise/Service Tax. To use the ICES route exporters must register bank and central excise/service tax code details with Customs using Annexure A and declare the option on the electronic shipping bill; ICES will compute refunds by applying the schedule rate to FOB value with disbursement to the registered bank account via authorized branches or NEFT/RTGS. Amendments and tracking are available through ICES/ICEGATE.

BIS Standard Mark requirement for pneumatic tyres and tubes ensures imported products meet quality standards; customs to verify before clearance.
Pneumatic tyres and tubes must conform to prescribed quality standards and bear the BIS Standard Mark for manufacture, import, storage for sale, sale or distribution. Specified OEM-imported tyre models are exempted by published exemption lists; other pneumatic tyres lacking the BIS mark may not be dealt with. Customs field formations are directed to verify the BIS Standard Mark and conformity with the Quality Control Order before clearance of imported pneumatic tyres and tubes.

Tyre quality compliance: specified export, OEM, CBU and R&D exemptions permit relief from BIS marking when conditions are met.
Guidance exempts pneumatic tyres and tubes under specified categories from the BIS marking requirement where conditions are met: tyres manufactured in India for export; tyres imported by OEMs for export or for fitment on domestically manufactured vehicles; tyres imported as part of CBUs meeting standards with OEM self-declaration in the vehicle manual (unless DGFT homologation exempts); and tyres for research and development. Outside these exemptions, imported pneumatic tyres and tubes must conform to the specified standards and bear the BIS Standard Mark, and may not be imported, stored for sale, sold or distributed if non conforming.