Inspection requirement for used clothing consignments to domestic tariff area now mandated to occur at unit premises.
Paragraph 2(iii) of Instruction No. 69 is amended to require that consignments of used clothing sold to the Domestic Tariff Area be subject to complete inspection at the premises of the SEZ unit, making unit-level inspection an explicit compliance obligation for plastics and used clothing units.

Allocation of cotton export quantity: online applications required within prescribed window; DGFT to provide support.
Exporters must submit online applications for the allocation of cotton export quantity pursuant to Policy Circular No. 09 within the prescribed electronic application window; DGFT officers will be available by telephone during specified office hours on two designated days to address queries and assist exporters with the application process.

Anti Money Laundering obligations require intermediaries to implement KYC/CDD, monitor transactions and report suspicious activity to FIU IND.
Consolidated Master Circular requires SEBI registered intermediaries to adopt written AML procedures, KYC/CDD and client acceptance policies, verify beneficial ownership, apply a risk based approach with enhanced due diligence for higher risk clients (including PEPs and Clients of Special Category), monitor and preserve transaction records to permit reconstruction, and report Cash Transaction Reports and Suspicious Transaction Reports to FIU IND in prescribed formats and timeframes. Intermediaries must designate a Principal Officer for reporting, prohibit tipping off, provide employee screening and AML training, implement investor education, and apply the more stringent standard when overseas host country rules differ; freezing and sanction obligations under UAPA must be complied with.

Online filing of Importer Exporter Code enables mandatory electronic payment, online status tracking, and physical submission for deficiencies.
An additional online facility allows filing of Importer Exporter Code (IEC) applications via the DGFT website with payment by Electronic Fund Transfer and scanned attachments of prescribed documents; physical copies are not required for complete online applications. The website will display IEC numbers granted and indicate deficiencies; where deficiencies are shown applicants must submit the required documents physically to the concerned Regional Authority. Applicants may still opt for manual filing and must correctly select the jurisdictional RA. Detailed online filing guidance is available on the DGFT site.

Single window mechanism for environmental approvals mandates integrated clearances, SPCB representation in approval committees and surprise inspections.
A Single Window Mechanism is directed for SEZs and EOUs to consolidate environmental approvals: SPCBs must process consents under the Water and Air Acts together with authorisation/registration under the Hazardous Waste Rules, 2008 to issue integrated clearances. SEZ Unit Approval Committees are to include an SPCB representative for regulatory guidance and monitoring, and Development Commissioners must permit SPCB officials to conduct surprise inspections. MoEF/CPCB will promote universal adoption of integrated clearances and the Ministry of Commerce will facilitate SPCB participation and inspections.

Quota allocation for cotton exports on pro rata basis with documentary proof required and penalties for non performance.
Registration of export contracts for raw cotton requires e mail applications in the prescribed format; allocations are made pro rata with a per IEC ceiling and minimum floor, and prior non performance against EARCs reduces pro rata entitlement. Post allocation applicants must submit the export contract plus either a confirmed irrevocable Letter of Credit or bank FIRC evidencing required advance payment, IEC copy, and a signed declaration within a specified period, failing which they are declared ineligible and their allocation is reallocated. Non export within the stipulated time invites debarment and penal action under Section 11(2) of the FT(D&R) Act.

Auction session timing shortened to same-day post-pay-in, accelerating delivery to buying brokers and reducing settlement delay.
Change to the auction timing and settlement sequence for seller defaults: short-delivered securities will be procured through an auction session conducted on the same calendar day after completion of pay-in, with auction-related pay-in/pay-out and close-out occurring the following day. For combined settlements arising from disparate holidays, the first settlement's auction is held the same day and settled next day, while the second settlement's auction is held the following day and settled thereafter. Exchanges must update systems, bye-laws and notify brokers for implementation.

Dematerialisation requirement for shifting from trade-for-trade to rolling settlement; exchanges obtain RTA certificate and ensure no grounds for TFTS continuation.
Shifting securities from Trade for Trade Settlement to Rolling Settlement is permitted for companies with connectivity to both depositories provided at least half of non promoter holdings are in dematerialized form verified by an RTA certificate (or by a practicing Company Secretary/Chartered Accountant if no RTA exists), and provided there are no other grounds for continued TFTS; stock exchanges must report action taken to SEBI in their development reports.

OTC foreign exchange derivatives: framework allows eligible residents and AD banks to hedge currency, commodity and freight risks with reporting.
Regulatory guidelines permit specified residents and non residents to use a defined set of OTC and exchange traded instruments to hedge contracted, probable and certain special exposures in foreign exchange, commodity price and freight risks, subject to documentary verification, limits that the notional and tenor not exceed underlying exposures, auditor certifications, user appropriateness and suitability checks by Authorised Dealer Category I banks, and extensive periodic reporting to the Reserve Bank.

ACU settlement suspension permits eligible current account and trade transactions with Iran to be settled in permitted currencies outside ACU.
All eligible current account transactions, including export/import trade with Iran, may be settled in any permitted currency outside the ACU mechanism until further notice; AD Category I banks must notify constituents. Amendments to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 will be issued, and the directions are issued under powers granted by the Foreign Exchange Management Act.

Re-fixation of Annual Average Export Obligation allowed where sectoral exports decline; EPCG obligations to be adjusted accordingly.
Para 5.11.2 permits re-fixation of the Annual Average Export Obligation where a sector or product group's exports decline by more than five percent. The circular provides an annexure listing product groups that declined in 2009-10 versus 2008-09 and directs Regional Authorities and Customs to re-fix annual average export obligations for EPCG authorisations for 2009-10 accordingly.

Payments for import of oil or gas may be settled in any permitted currency outside the ACU mechanism.
Payments for import of oil or gas shall be settled in any permitted currency outside the ACU mechanism, with necessary amendments to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 to be issued; Authorised Dealer banks are to notify constituents and the directions are issued under sections 10(4) and 11(1) of the foreign exchange statute.

Additional duty credit for grapes: exporters eligible for extra benefit under VKGUY for exports after the notice.
The Public Notice amends the Handbook of Procedures, vol. 1 by adding Grapes (ITC HS Code 0806) as a Special VKGUY product, entitling exporters of grapes to an additional 2% Duty Credit Scrip over and above the normal VKGUY rate, effective for exports made on or after the date of the notice.

Complete declaration of imported goods is required to secure accurate classification, valuation and enforcement measures for non compliance.
Import declarations must furnish complete product particulars-description, brand, model, grade, specification, unit of quantity code, weight, country of origin and chemical/botanical names-and use the prescribed standard unit of quantity in the Bill of Entry or Shipping Bill to ensure correct tariff classification, valuation and reliable national trade statistics; appraising and dock sections must verify completeness and return deficient documents, and persistent non compliance may attract penal action including suspension of CHA licences.

Excise exemption entitlement continues despite post-cutoff machinery additions or new products, but exemption duration remains fixed.
Units that commence commercial production on or before the cut-off remain entitled to excise duty exemption for excisable goods (except negative list items) even if they add or modify plant and machinery, install ancillary equipment, replace parts, increase efficiency without increasing capacity, change dosage forms on the same line, or produce new products using existing machinery after the cut-off or during the ten-year exemption period; the exemption term is fixed at ten years and does not extend due to such modifications or additions.

Reporting requirement for international debit card forex transactions discontinued; banks must stop annual statements to regulator.
Banks authorised to deal in foreign exchange are directed to discontinue the annual submission of statements reporting aggregate foreign exchange utilization by holders of international debit, store value, charge and smart cards that previously triggered a reporting threshold, with all other instructions of the earlier circular remaining in force; the direction is issued under the Foreign Exchange Management Act and is without prejudice to permissions under other laws.

KYC/AML/CFT obligations: Indian MTSS agents must treat FATF-identified jurisdictions as higher risk and ensure PMLA compliance.
Authorised Persons under the Money Transfer Service Scheme must apply enhanced Know Your Customer, Anti Money Laundering and Combating the Financing of Terrorism safeguards for cross border inward remittances by accounting for FATF identified jurisdictions with strategic deficiencies; Principal Officers must acknowledge receipt and ensure constituents are informed. These measures are issued under the Foreign Exchange Management Act and the Prevention of Money Laundering Act, and non compliance may attract penal provisions and record maintenance obligations under the applicable rules.

Know Your Customer obligations require risk based due diligence for money changers in light of FATF jurisdictional AML/CFT deficiencies.
Authorised Persons in money changing activities must apply a risk based Know Your Customer regime by considering FATF identified jurisdictional AML/CFT deficiencies when dealing with persons or businesses from those jurisdictions, circulate the guidance to constituents, and have the Principal Officer acknowledge receipt; non compliance may attract penalties under the applicable foreign exchange and anti money laundering statutes and rules.

AML/CFT risk-based screening: consider FATF-identified jurisdictions in cross-border inward remittances and apply enhanced due diligence measures.
Authorised Persons under the Money Transfer Service Scheme must factor AML/CFT and KYC risks from jurisdictions identified as strategically deficient into customer acceptance, transaction monitoring and relationship due diligence for cross border inward remittances; the circular requires notifying constituents and Principal Officer acknowledgement, and is issued under foreign exchange and anti money laundering statutes and rules with penalties for non compliance.

KYC/AML obligations require heightened due diligence for transactions with parties from FATF identified high risk jurisdictions under PMLA and FEMA.
Authorised Persons must assess and mitigate risks from jurisdictions identified by the FATF as having strategic AML/CFT deficiencies, applying enhanced customer acceptance, ongoing due diligence and transaction monitoring for persons, legal entities and financial institutions from those jurisdictions; the directions are issued under FEMA and the PMLA framework and non compliance may attract penal consequences.