Import credit limit for rough diamonds restricted to short-term usance from shipment, with mandatory KYC and AML compliance.
Suppliers' and Buyers' credit, including the usance period of Letters of Credit for import of rough, cut and polished diamonds, is limited to a short-term period from the date of shipment, effective immediately; AD Category I banks must undertake due diligence and comply with KYC and AML standards and closely examine any large or abnormal increases in business to ensure bona fides, while existing related import instructions remain applicable.

Classification of subcontractor services: specifically described services prevail and remain taxable even when used as input to works contracts.
Classification of subcontractor services to a works contract provider must follow the statutory rule that a specifically described service takes precedence over a generic works contract description; subcontractor services such as architect, consulting engineer, construction of complex, design, erection and commissioning, management, maintenance or repair are classifiable under their respective descriptive heads and remain chargeable to service tax even when used as input services by an exempt works contract provider.

Accurate product description required in shipping bills to ensure correct classification, valuation and faster export clearance.
Exporters and CHAs must provide accurate, specific descriptions in invoices and Shipping Bills-replacing generic schedule wording-with GSM for each fabric type, separate quantity and value declarations for different fabrics (except combined valuation permitted for defined sets), separate declarations for embroidered and non embroidered portions, and relevant RITC/Drawback/DEPB serial numbers for incentive claims; garments require specific item and composition descriptions but not GSM. Assessing officers will verify compliance; AC/DC may accept declared descriptions when genuine difficulties exist.

Employment visa salary threshold may be relaxed for specialist foreign employees in SEZs to facilitate increased FDI.
The Department proposes exempting a limited number of specialist foreign employees of SEZ units bringing substantial FDI from the existing Employment visa salary threshold, noting Project visas lack such a stipulation; it requests industry consultation and stakeholder views to shape a proposal for the Ministry of Home Affairs.

Manual processing restrictions require exceptional authorization and compulsory data entry, with senior-officer monitoring to prevent misuse.
Manual clearance is permitted only in exceptional cases not amenable to EDI and must be authorized by a Joint/Additional Commissioner and monitored by the Commissioner. Data for manual documents must be entered and transmitted within stipulated timeframes at all locations, with an Assistant/Deputy Commissioner nominated to oversee data entry, transmission and quality; the facility should be withdrawn once EDI is possible and noncompliance will have revenue-related consequences.

Project import finalization timeframe: complete assessments within prescribed time limit, with commissioner-approved extensions and monitoring.
Assessments under the Project Imports Regulations must be finalized within a prescribed time after submission of required documents, with the jurisdictional Commissioner able to extend the period for recorded reasons; bank guarantees must be maintained until finalization where documents are outstanding. Non-submission of reconciliation statements or prescribed documents under Regulation 7 may trigger enforcement of bonds, cash security or bank guarantees, adjudication for duty demand and penalty. Provisionally assessed Bills of Entry at ports other than the registration port must be finally assessed without delay. Plant Site Verification and Chartered Engineer certificates are required to confirm installation and use. Commissioners must maintain records, monitor pendency, and submit monthly and quarterly reports through prescribed formats to enable centralized oversight.

Labeling in bonded warehouses permitted for impractical-to-label imports, subject to warehousing entry, 100% ex-bond inspection and warehouse regulations.
Labeling required by DGFT Notification No.44 may be conducted in bonded warehouses where port/CFS labeling is impractical; importers must ensure warehouse space, file a Warehousing Bill of Entry, and accept that the assessing group will endorse the Bill to require verification of labeling at de-bonding. The Bond Superintendent mustensure 100% physical examination at ex-bond clearance and endorse the Examination Report on the hard copy Ex-bond Bill of Entry. Labeling in bond that amounts to manufacture will be governed by the Manufacture and Other Operations in Warehouse Regulations, 1966.

Container destination declaration required in IGM, carriers must designate a CFS when importers/agents fail to specify.
Shipping lines must record the Container Freight Station name/code against each IGM line reflecting the importer/CHA's notified CFS; importers/CHAs should inform the carrier at least seventy two hours before vessel arrival. If no prior intimation is received, the carrier may declare one CFS in the IGM for all unlisted containers and must notify that CFS. Message based EDI container movement procedures remain primary, with a mail based accounting procedure as the fallback when message exchange is non functional.

Customs supervision required for removal of ship-generated garbage, with boarding and gate endorsements and CISF authorization mandated.
Removal of ship-generated garbage at JNPT is subject to Customs supervision as part of the designated Customs Area. Contractors must obtain Boarding Section supervision for loading; the Boarding Officer must endorse "Loaded under my supervision." Gate Preventive Officers must verify that endorsement and record a passing endorsement before CISF allows the vehicle to exit. Only CISF- and JNPT-authorized vehicles may enter the port.

No-objection certificate requirement waived where past bill shows ADC remark, enabling expedited import clearance.
No-objection Certificate (NOC) from the Assistant Drug Controller (ADC) is mandatory for import of drugs and bulk drugs, but where an importer/CHA produces a past Bill of Entry showing a recorded remark that ADC NOC is not required for the item, the Assessing Group will not require ADC examination or NOC; likewise, in RMS-facilitated Bills of Entry the Docks officer shall not insist on ADC/NOC if such past Bill of Entry is presented, notwithstanding CCR instructions.

Employee disclosure threshold clarified: applies to directors' reports approved by boards on or after the amendment's effective date.
The amendment raising the salary disclosure threshold applies to Directors' Reports under section 217 of the Companies Act; it is effective for all Directors' Reports approved by the Board of Directors on or after the notification's effective date, irrespective of the accounting year of the annual accounts.

Provisional assessment extension for actual-user importers pending CIB & RC registration, subject to certificate production at clearance.
Bs/E for actual-user importers awaiting CIB & RC registration/import permit will be provisionally assessed if they produce the registration/import permit within three months of clearance; this provisional-assessment facility is extended until 15.06.2011. After that date all importers must furnish the CIB & RC certificate at clearance and provisional assessment will not be allowed. Other conditions of Public Notice No.09/2011 remain unchanged.

Escrow accounts for FDI allowed without prior RBI approval, subject to prescribed operational conditions and compliance.
AD Category - I banks and SEBI authorised Depository Participants may open and maintain non-interest bearing Escrow accounts in Indian Rupees to hold consideration or securities for FDI transactions without prior Reserve Bank approval, subject to conditions: no credit facilities against balances; permitted credits are foreign inward remittances or rupee consideration from resident acquirers; permitted debits are remittance to beneficiaries or refunds on transaction failure; accounts limited to six months unless RBI permits extension; compliance with FEMA, SEBI regulations and KYC requirements is mandatory.

Pledge of shares for business purposes: AD Category I banks may permit non resident share pledges subject to compliance conditions.
Authorised Dealer Category I banks are delegated authority to permit non resident investors to pledge shares of Indian companies in conformity with the Foreign Direct Investment policy to secure credit. For pledges to Indian banks securing credit to the investee company, transfer on invocation must follow prevailing FDI policy, an auditor's declaration on utilisation of proceeds is required, SEBI disclosure norms must be observed, and pledges must comply with banking regulation. For pledges to overseas banks securing credit to non resident borrowers, loans must be from overseas banks, used abroad without capital inflow to India, transfers on invocation must follow FDI policy, and a CA/CPA declaration on utilisation is required.

Electronic voting approval: Ministry requires authorised, certified agencies to provide secure e-voting platforms for corporate voting.
The Ministry requires that any agency appointed to provide or supervise an electronic voting platform for shareholder voting under the Companies Act must be authorised by the Ministry. NSDL and CDSL are approved subject to obtaining a certificate from the Standardization Testing and Quality Certification Directorate of the Department of Information Technology; upon receiving that certificate and informing the Ministry they will be authorised to undertake electronic voting platform activities. The circular stresses Ministry approval and certified security standards for lawful electronic voting facilitation.

Registrar recordation of director appointments via STP accepts contested e-form filings without prejudice to parties' rights.
E-form notifications of director appointments and changes will be recorded by the Registrar via an electronic Straight Through Process based on the company's statement of correctness and verification by a practising professional. Conflicting e-form filings by rival groups will be accepted and placed on file if otherwise in order, with written notice that the records are taken without prejudice to the parties' rights to seek resolution in a court or competent authority.

Management dispute marking limited to cases with status quo or injunction directions when the registry is party or directed.
The MCA 21 registry may mark a company as having a management dispute only when a court or tribunal directs maintenance of status quo for e forms or director status, or when an injunction or stay is granted and the registry is a party or specifically directed; if orders are not served on the registry and it is not a party, parties must comply and the registry should not apply the dispute mark.

Postal submission of trade documents: applicants must affix postage and quote IEC to ensure timely delivery.
Office establishes a postal facility for submission and return of applications and licences to identity card holders. Applicants must enclose a self addressed envelope with postage calculated by weight and quote their IEC number; omissions delay delivery. Postal charges follow prevailing weight tariffs and applicants should consult the PRO for clarification, who will direct matters to the concerned FTDO or JDGFT when necessary.

Input Tax Credit carry forward temporarily excluded from return calculations pending decision on Section 9(1) restoration.
Dealers are directed to continue filing VAT returns without calculating the carry forward of Input Tax Credit on closing stock pending the Government's decision on restoring Section 9(1) to its pre-amendment position; this suspension of the carry-forward computation applies to filings using the DVAT-16 return format.

Service tax on SIM cards: field formations instructed to raise protective demands to safeguard revenue.
The High Court allowed the department's appeal holding that service tax is chargeable on the value of SIM cards despite payment of sales tax; because field practice varies and the matter is sub judice, field formations are directed to raise protective demands to safeguard Government revenue.