EPCG licence issuance: units with merchant-exporter RCMC and provisional registration may receive licences subject to full bank guarantee.
Regional Licensing Authorities may treat units as manufacturer exporters for EPCG licences when the unit furnishes an RCMC as a merchant exporter together with a provisional registration number; in such cases EPCG licences shall be issued subject to a full bank guarantee irrespective of the provisions of the Handbook of Procedures (Vol. I).

Fixation and modification of input and output norms: standard SIONs amended and new input entries added across product groups.
The Director General of Foreign Trade, under Paragraph 2.4 of the Export and Import Policy 2002-2007, issues a Public Notice amending Handbook of Procedures, Vol.2 by substituting, correcting and adding Standard Input Output Norms (SIONs). Annexure A details substitutions, corrections and new notes affecting chemical, electronics and engineering SIONs (including a net-to-net components rule for electronics and restrictions such as limits on steel melting scrap). Annexures B and C add new detailed SION entries for chemicals and engineering products specifying permitted input items and quantities and related conditions.

Duty free import of natural rubber: licensing authorities to determine admissibility under court decision and Exim provisions.
All licensing authorities are directed to assess and decide admissibility of imports of natural rubber by reference to the judicial determination and the relevant Export-Import (Exim) provisions and procedures, applying existing Advance Licence and related scheme terms when processing applications; this replaces earlier internal instructions that advised against issuance of duty-free licences for natural rubber.

Exemption from registration for drug imports under Advance Licensing Scheme allows imports for valid export orders subject to conditions.
Imports of drugs under the Advance Licensing Scheme are exempt from the Registration procedure under the Drugs & Cosmetics Act for approved and unapproved drugs, provided imports are against valid export orders limited to required raw materials, licences are endorsed to the Drug Controller and State Drug Controller, random inspections are permitted, pre import conditions are met, export obligations are fulfilled within six months, and violations attract penalties under the Foreign Trade Development and Regulation Act and the Customs Act.

Mandatory IEC returns: filing deadline moved; failure to file triggers IEC blocking or deactivation until reactivation fee paid.
IEC holders must furnish online yearly trade returns detailing foreign exchange earned as FOB of goods manufactured, FOB of goods not manufactured, and "Other than exports" services. Values in non US currencies must be converted to rupees and then to US dollars using the Ministry of Finance exchange rate as of 31 March 2003. Product groups and continental exports must be ranked by FOB value. The filing deadline is amended to 31st October; non filing results in IEC blocking or inoperation from 1st November, with reactivation available upon payment of a fee and submission of data.

DEPB rate review requires exporters and export councils to submit FOB/CIF data for affected products or face rate reduction.
The directive requires review of DEPB rates for products with elevated rates and mandates exporters, via Export Promotion Councils, to submit representative FOB export values and CIF input costs using Annexure I within the prescribed timelines; RLAs must prepare exporter lists to assist councils. Submissions must cover transactions within one year, include Shipping Bills/Bills of Entry or customs data, meet minimum document counts, and use the prescribed worksheet reflecting SION inputs and customs duty computations. Failure by councils to forward consolidated data may lead to reduction of the DEPB rate for the product.

Export obligation compliance: Bonding under EOU requires a Legal Undertaking and fulfilment within permitted extension periods.
Redemption of an EPCG-issued Bank Guarantee on bonding under the EOU scheme is conditional on execution of a Legal Undertaking with the Development Commissioner and no accrued liability under blockwise export obligation criteria; Customs notifications permitting extensions must be considered in computing any shortfall, but the unit must complete the balance export obligation within the stipulated period inclusive of such extensions.

DEPB rate amendments update export entitlements and value caps across engineering, chemicals, plastics, and electronics products.
Amendment updates the DEPB schedule by adding, substituting and correcting entries to adjust export entitlement rates and associated value caps for identified export products. Engineering group entries are corrected, substituted or inserted for items including steel hinges, automobile ignition locks, single cylinder pumps, stainless steel tubes, other automobile locks, and hermetically sealed compressors, with stated rates and per unit caps. Chemicals, Plastics and Electronics groups receive specified insertions or substitutions, revising DEPB rates and per unit value caps for conveyor rubber belts, I.V. cannula and various television categories.

DEPB admissibility clarified: prior circular made retroactive and remedial compliance sentence deleted for engineering exports.
Clarification fixes the effective date of the decision in Policy Circular No. 19 as the original circular's date and deletes the final sentence directing remedial action where exports of MS Galvanized Sheets/Strips obtained DEPB benefit under the entry at Sl. No. 91. The amendment, approved by the Directorate General of Foreign Trade, therefore alters the compliance instruction by eliminating the previously mandated remedial action while confirming the decision's retroactive effect.

Import entitlement expanded: State Trading Corporation authorised to import vegetable fats under annual quota alongside existing agency.
Amendment adds an additional authorised agency entitled to import vegetable fats (Vanaspati) up to the indicated annual quota, supplementary to the existing authorised importer, while all other conditions of the earlier public notice remain unchanged under the Export and Import Policy 2002-2007.

DEPB eligibility for DTA supplies to SEZs expanded, with new application and documentary requirements and port updates.
The Handbook is amended to designate the Export Inspection Council as the sole issuer of the Certificate of Origin under the India-Afghanistan Preferential Trade Agreement; to expand ports of registration; to state that exports to notified SEZs are entitled to DEPB; and to establish a procedure for DEPB credit for DTA supplies to SEZs requiring application to the Development Commissioner with specified documents (application fee receipt, SEZ bill of export, invoice showing FOR value and DEPB entitlement, bank realisation certificate, and a DTA disclaimer authorising SEZ claim).

Standard Input-Output Norms amended to add and substitute SION entries across chemicals, electronics, engineering and textile sectors.
Fixes and modifies Standard Input-Output Norms under the Export and Import Policy by amending Handbook of Procedures, Vol.2. The DGFT substitutes, corrects and adds SION entries and inserts new entries across Chemicals, Electronics, Engineering and Textile product tables; annexures prescribe detailed export items with corresponding allowed import items, quantities, conditional alternatives, net-to-net allowances and specific compositional formulations. The notice includes operational conditions such as value caps and fuel allowance restrictions tied to captive power generation and clarifying product descriptions.

Import certification requirement: Council of Leather Exports authorised to certify imports for export manufacture under strict membership and use conditions.
The DGFT nominated the Council of Leather Exports, Chennai as an authorised certifying agency to issue import certificates to its members, subject to three operative conditions: members must have a valid RCMC at issuance, importers must be registered with the Council as manufacturer-exporters under Exim Policy, and certified imports must be used solely for manufacture of export products and not sold or transferred to DTA units.

Export obligation relief: licence holders may regularise defaults by paying customs duty with interest and providing bank guarantees.
Amendments provide that where Customs duty is payable on unutilised material or due to shortfall in EPCG export obligation, such duty must be paid along with interest; pending cases of regularisation of bonafide default for Advance Licences and EPCG licences are covered irrespective of issuance date. EPCG licence-holders in specified circumstances may obtain export obligation extensions subject to submission of bank guarantees covering Customs duty proportional to unfulfilled obligations with specified interest and validity, exclusions apply for licences involving misrepresentation, fraud, or existing adjudication orders.

IEC deactivation risk for non filing of annual import/export returns, with reactivation subject to prescribed fee and conditions.
IEC holders must furnish online annual import/export details for the preceding licensing year by 30 June; non filing renders the IEC inoperative from 1 July, with reactivation upon payment of a fee. Service providers (excluding hotels/tourism) receive duty free imports equal to 10% of average foreign exchange earned in the preceding three licensing years, hotels/tourism providers 5%. Advance licence BG requirements are tiered with 25% BG up to 200% entitlement and 100% BG beyond; merchant exporters (other than status holders and PSUs) require 100% BG. EPCG non fulfilment attracts duties plus interest.

Duty free import entitlement for service providers restricts imports of agricultural products and limits cars to hotels and tour operators.
Paragraph 3.8 of the Export Import Policy grants a duty free import entitlement to specified service providers based on average foreign exchange earnings, permitting spares, office equipment, professional equipment and consumables while excluding all agriculture and dairy products. Beverages, spirits and vinegar under Chapter 22 and processed or semi-processed seafood are permitted. Car imports under the entitlement are restricted to hotels, tour operators and tourist transport operators.

Preferential quota allocation for sugar to EU requires specified certification endorsements and sole export agency authorization.
Preferential export quota for 2003-04 allocates 10,700 MT of raw sugar and 10,000 MT of white sugar for export to the EU. Exports under this quota require special certification endorsements referencing European Commission Regulation No. 2513/2001 for raw sugar and No. 2782/76 for white sugar and the common commodity code for sugar. M/s Indian Sugar Exim Corporation Ltd. is authorised as the sole agency to export the allocated quantities to the EU under the preferential quota.

Tariff Rate Quota allocation procedure establishes eligible agencies, application requirements, and EFC allocation for specified imports.
Procedure prescribes TRQ allocation for four specified food and oil items, lists eligible public trading and cooperative agencies authorised to apply, and requires submission of completed application forms and prescribed supporting documents to the Exim Facilitation Committee at DGFT with payment of the application fee. Imports must be completed within the prescribed period and maize imports under the State Trading Regime may receive import licences if not imported through the Food Corporation of India. Quota allocation is made by the EFC with specified departmental representation, and applicants must provide declarations undertaking correct use and compliance with applicable foreign trade law and procedures.

Mandatory import standards deferred for specified electrical goods; customs may permit clearance of consignments imported after notification.
Mandatory standards for import of specified electrical goods under Notification No.5 are deferred for items listed at serial numbers 143-159 until after 17.08.2003. Consignments of those items imported after 7 April 2003 are covered by this clarification, and customs may permit their clearance during the intervening period prior to the deferred commencement date.

Fixation of input-output norms: DGFT amends Handbook Vol.II to update SIONs and specify permitted input allowances.
The Director General of Foreign Trade amends Handbook of Procedures, Vol. II under Paragraph 2.4 to modify, substitute, delete and add Standard Input Output Norms (SIONs). The Public Notice prescribes corrected export/import item descriptions, substitutes detailed multi item input schedules with conditional notes for numerous Engineering, Chemical, Textile, Plastic and other product SIONs, restores a specified footnote, and adds new SION entries for White Cement Clinker (A 3174), Silane Treated Glass Fabric (B 259), and Hulled Sunflower Seed (E 112) with specified input allowances.