Dematerialisation threshold enables shift to normal rolling settlement when non promoter holdings exceed requirement and no other grounds remain.
SEBI instructs stock exchanges to consider shifting securities from Trade for Trade Settlement to normal Rolling Settlement where companies have connectivity with both depositories, provided at least 50% of other than promoter holdings are dematerialised evidenced by an RTA certificate (or certificate from a practising company secretary/chartered accountant if no RTA), and no other grounds exist for continuing TFTS; exchanges must report actions to SEBI in Monthly/Quarterly Development Reports.

Currency derivatives participation limited to FFMCs and ADs Category II as clients for hedging forex exposures.
FFMCs and ADs Category II (excluding RRBs, LABs, UCBs and NBFCs) with a minimum net worth of Rs. 5 crore may participate as clients in designated currency futures and exchange traded currency options on recognised exchanges solely to hedge their underlying foreign exchange exposures; institutions in the excluded categories are to follow Reserve Bank departmental instructions, and non compliance engages penal provisions under the Foreign Exchange Management Act.

Withdrawal of DEPB benefit for skimmed milk, casein and other milk products; no DEPB for shipments from 25 January 2011.
The Directorate General of Foreign Trade amended the Schedule of DEPB Rates under Paragraph 2.4 of the Foreign Trade Policy, 2009-2014 to withdraw DEPB benefit for Skimmed Milk Product (SMP), Casein and any other milk product. Such products shall not be eligible for DEPB either under specific DEPB rates for any product group or under Sl. No. 22C and 22D of the Miscellaneous Product Group for shipments made on or after 25 January 2011.

Transhipment procedure for airport cargo requires CTM application, customs escort, double lock storage and bond accounting.
Transhipment at Bangalore Air Cargo Complex requires segregation in custodian premises, filing of an application or Cargo Transfer Manifest for approval by the Superintendent of Customs, escort of listed cargo by a customs officer, verification of marks and numbers without routine physical examination, and storage in double locked custodian/airline warehouses. Transhipment value is debited to a Transhipment Bond and re credited upon acknowledgement from the destination; similar supervised procedures apply for international transhipment, export transhipment, movements via bonded truck, and at intermediate customs airports, with penal liability for unexplained failure to unload.

Examination of LCL baggage: Customs allows on site CFS checks; distant CFS consignments require prior UBC intimation.
Clearance procedure for LCL baggage and personal effects is modified to permit Customs examination at the Container Freight Station where the cargo lies instead of mandatory transfer to the Unaccompanied Baggage Centre; consignments at three distant CFSs remain subject to UBC examination on prior one day intimation, and Shipping Lines/agents are prohibited from charging passengers additional or excessive fees related to this arrangement.

Line of Credit for export finance requires majority Indian content, shipping declarations, and restricted agency commission remittances.
Exim Bank provided a Line of Credit to finance Indian exports for Ethiopia's sugar industry requiring at least 75 per cent Indian supply content, permitting up to 25 per cent non Indian procurement for non consultancy goods, and setting L/C and disbursement timelines tied to project completion or a fixed period from agreement execution. Shipments must be declared on GR/SDF forms; agency commission is not payable under the LOC but may be remitted by exporters from their own resources or EEFC balances after realisation and subject to instructions. AD Category I banks must notify exporters; directions issued under FEMA remain subject to other statutory approvals.

Carrier verification requirement: only verified carriers may operate on ICES 1.5; unlisted agencies must contact EDI promptly.
Only carrier agencies and shipping lines that have been verified and updated by the Mumbai Custom House will be permitted to operate on ICES 1.5; agencies must check the attached verified list and contact the EDI Section immediately if their name is missing, and those not yet applied must submit applications to the EDI Section without delay.

Wording amendment in service tax guidance substitutes 'notification' for 'circular', clarifying fumigation classification terminology.
Corrigendum substitutes the word "notification" for the word "circular" in paragraph 2(b), line five of the prior service tax text, an editorial correction clarifying the reference point for guidance on whether fumigation of export cargo falls under cleaning services.

Inclusion of handling charges in taxable value increases service tax liability where transport and loading services are supplied together.
Where the same contractor supplies transportation and loading/unloading services, loading and unloading (handling) charges must be added to transport charges to determine the taxable value for Service Tax; exclusion of handling charges by M/s. FCI led to underpayment and improper reliance on the exemption slab, and the Board/Ministry circulars and prior office clarification require inclusion of those charges when computing Service Tax liability.

Cargo delivery timelines: goods must be released promptly after vehicle entry upon customs out of charge, ensuring swift release.
Directive requires expedited cargo release procedures: delivery of goods to be effected within one hour of vehicle entry into the CFS subject to obtaining out of charge from customs, and delivery for de stuffed LCL cargo to commence within one hour of intimation by the party; stakeholders are to report any implementation difficulties to the Commissioner of Customs (Export).

Sample handling procedure: remnant samples transferred to Central Sample Cell and retained until authorised disposal.
Customs laboratory shall hand over only remnant samples sufficient in quantity for re testing to the officer of the Central Sample Cell at the time fresh samples are handed over to the laboratory; such remnant samples shall be retained in the Central Sample Cell until disposal as per paragraph 6 of the Public Notice.

Data quality compliance in customs requires CHA attendance at mandatory training, with licence endorsements for non-compliance.
Custom House Agents must attend compulsory instructional sessions on improving data quality in Bills of Entry and Shipping Bills to ensure legal compliance; CHAs who fail to attend will receive Warning Memoranda endorsed on their CHA licence, face adverse consideration for passes and licence renewal, and may be suspended until they complete the required learning. BCHAA is asked to publicize the sessions and secure member attendance.

Verification of Export Obligation: Customs to accept DGFT EODCs generally, with targeted random checks and joint intelligence.
Verification of Duty Credit Scrips must be completed before registration and Customs may randomly verify supporting shipping bills; detailed verification of EODCs under EPCG is ordinarily required only for first-block fulfillment and final EODCs issued by DGFT may be accepted without further checks absent specific intelligence. Advance Authorization/DFIA EODCs may likewise be accepted unless intelligence indicates otherwise. Field formations must implement Circular No.5/2010-Cus. rigorously, conduct limited random retrospective checks, record written reasons for detailed verifications, and set up inter-agency quarterly coordination to monitor Export Obligation compliance and take revenue-protective action where EODCs or evidence are not furnished.

Export realization monitoring requires customs to implement the BRC module, issue SCNs for non submission and liaise with licensing authorities.
Implementation of the Bank Realization Certificate (BRC) module must be completed by all Customs Houses to monitor export realizations for Drawback shipments, with historical verification for 01.01.2004-31.12.2007 and six monthly checks thereafter. Customs must input BRCs/negative statements, issue Show Cause Notices where documents are not submitted, undertake adjudication and recovery of drawback, and establish liaison with Regional Licensing Authorities to report exporters with non existent addresses for possible IE Code cancellation; implementation difficulties must be reported to the Board.

Additional undertaking for Offshore Derivative Instruments: mandatory confirmation of Regulation 15A compliance and KYC adherence.
Reports accompanying Offshore Derivative Instruments must include an additional undertaking confirming that the beneficial owner and recipient of the ODI comply with Regulation 15A and that KYC compliance norms have been followed for the beneficial owner; these undertakings are already reflected in the Monthly Summary Report and Annexure A, and other provisions of the earlier circular remain unchanged.

Classification of handicrafts under drawback schedule: accept certificates and avoid holding exports pending routine verification.
Certificates from EPCH/Development Commissioner should be requested only where doubt exists and normally accepted, including certification on invoices or photographs; rejection requires Commissioner approval and consultation. Examination of consignments must follow Board examination norms, with EDI-selected packages examined unless fraud intelligence exists. Artware/handicraft items must be classified under specific Drawback Schedule artware/handicraft headings irrespective of Customs Tariff/HSN alignment, and multi-constituent articles classified by the material predominant by weight with the applicable drawback rate applied to the whole article.

Bank Guarantee exemption narrowed to specified serious violations; affidavit and verification required for authorization holders.
The Circular limits denial of Bank Guarantee exemption to authorization holders booked, in the previous three financial years, for serious violations: mis-declaration/mis-statement/collusion/willful suppression/fraudulent intent causing duty evasion; clandestine or unauthorized removal warranting confiscation; wrongful claims of CENVAT credit, rebate, refund, drawback or export benefits; non-deposit of collected duties; and non-registration with intent to evade. Applicants may be required to submit an affidavit affirming absence of such bookings under Customs, Central Excise, Service Tax, FEMA and the Foreign Trade Act, with random verification by Commissioners.

Services eligible for SFIS now defined, limiting scheme benefits to listed service sectors and excluding telecom and airlines.
Appendix 41 to the Handbook of Procedures, effective 1 January 2011, prescribes a closed list of service sectors and sub sectors entitled to benefits under the Served From India Scheme; services not listed are ineligible for SFIS benefits on foreign exchange earned from that date. The Notice deletes the Telecom paragraph and removes the word "Airlines" from the ineligible remittances provision in Para 3.6.1 to align exclusions with Appendix 41. Annexure 1 enumerates qualifying categories including business, communication, construction, education, environmental, health, tourism, recreational and transport services.

Service tax exemption for Janata Personal Accident Policy confirmed for state-specified group schemes serving targeted populations.
Service tax exemption applies to Janata Personal Accident Policy (JPAP) group schemes customized by insurers per state government specifications to provide low sum assured risk cover to targeted populations and to fulfil prescribed rural or social sector obligations, and such schemes are covered by Notification No. 3/1994 ST despite no explicit definition of JPAP in that notification.

ODI/PN reporting requirements updated; monthly annexure and summary filings with undertakings, thresholds and secured submission protocols for FIIs.
SEBI requires FIIs issuing ODIs/PNs to submit specified annexures detailing instrument activity and underlying Indian trades by security type, plus an ISIN wise Monthly Summary Report. Annexures are due by the 10th of each month with a six month lag; the Monthly Summary is due by the 7th for the preceding month. Reports must include a revised undertaking confirming compliance with Regulation 15A and KYC norms. Inter FII issuance is reportable by naming the intermediary FII to avoid duplication. Non proprietary index exposures below a 20% Indian component need not be reported; custom baskets hedged onshore are always reportable. Submissions must be password secured Excel files sent by the compliance officer.