Harmonised System amendments align the customs tariff, triggering classification reviews and reporting of duty-impacting reclassifications to authorities.
Amendments to the First Schedule of the Customs Tariff Act align the Indian tariff with the updated Harmonised System Nomenclature, comprising 393 changes across major sectors. The Board requires distribution of WCO explanatory annexures, lists of reclassified products, and delivery of training to assessing officers. Commissioners must review any reclassifications that alter duty incidence, report existing and revised classifications, affected notifications and proposed remedial measures to preserve prior effective duty levels, and submit these details to the Board within the specified timeframe.

Non-transferability of Pass Book credits restricts input-based customs credit to specified ports under value addition and quality conditions.
The amendment confines the Pass Book Scheme to specified ports and permits credit only for inputs listed in standard input-output norms with quantity restrictions, subject to declaration and proof of actual use and input quality. Credits are allowed at the basic Customs duty rate or applicable concessional rate, with valuation and duty rate fixed as at the date and place of the let export order; a value addition limit bars credit where inputs exceed seventy five percent of FOB value, and the Pass Book and its credits are non-transferable.

Perishable goods designation: curtailed initial customs warehousing period under section 61, with commissioners empowered to reduce storage.
The circular adds Monothiomethyl to the illustrative list of perishable goods and directs Commissioners of Customs to assume primary responsibility for identifying goods likely to deteriorate and to notify reductions of the initial customs warehousing period to prevent spoilage, treating the circulated list as illustrative, not exhaustive.

Customs valuation: indicative minimum prices for printer toner cartridges to prevent under valuation and revenue loss.
The circular instructs customs officers to use industry supported indicative minimum import prices as the bare minimum for assessing duty on laser printer toner cartridges, ink jet cartridges, and photocopier toners, noting that cartridges contain substantial electronic and mechanical components that raise value; it directs use of manufacturers' invoicing and market price data as benchmarks, requires taking higher declared prices when available, and mandates circulation of the guidance to prevent revenue loss from under valuation.

Export Promotion Reporting: Scheme wise monthly returns must state imports, exports and duty forgone/collected for compliance.
Revised reporting obligations require submission of scheme wise Export Promotion Returns (EPR I-VII) capturing imports, exports and revenue forgone/collected for each Export Promotion Scheme including Advance Licensing, Special Imports Licensing, EPCG, 100% EOUs, EPZ units and the Pass Book Scheme; reports must provide category totals and a grand total, with Pass Book returns detailing registered pass books, major commodities, shipping bills, FOB/CIF values, credits and duty debited, and duty collected defined to include applicable CVD or concessional duties.

Transhipment eligibility expanded to include multiple applicants and transport modes, altering bond and fee rules.
The Goods Imported (Conditions of Transhipment) Regulations, 1995 replace the 1984 rules and specify that applications for transhipment may be made by the master of vessel/aircraft, steamer agent, consolidation agent, container agent or any person authorised by the foreign supplier or agent; transhipment may occur by more than one mode of transport; bonds may be furnished by the applicant, the transporter, or the custodian at the ICD/CFS; and the transhipment application fee has been revised.

DTA clearances for EOU goods allowed on payment of full customs duties with EXIM permissions and entitlement adjustments.
DTA clearances of goods from EOUs/EPZUs/STPUs that are non identical to exported goods may be allowed on payment of full customs duties, provided the unit produces permissions from competent authorities under the EXIM Policy; such clearances will entail adjustments against the unit's DTA sale entitlements except where specific EXIM Policy provisions provide otherwise.

Quantity-based licence treatment: para 62/62A licences to be treated as issued under para 50/55, enabling customs exemption access.
Quantity based licences under paragraphs 62 and 62A of the EXIM Policy shall be deemed for all purposes to have been issued under paragraph 50 or 55 as appropriate, and future QBAL licences issued under paragraphs 62/62A will be issued under paragraph 50, enabling extension of customs exemption treatment and requiring issuance of public notices or standing orders for trade guidance.

Transfer of imported goods: veiled sales through replenishment by merchant exporters negate duty-free advance licence benefits.
Whether goods imported duty free under Notification No. 204/92 by a Merchant Exporter and supplied as replenishment to a supporting manufacturer constitute a transfer is decided by the scheme's intention: licences and imported materials are subject to an actual user condition. Outright purchases embedding input costs amount to a veiled sale and disqualify duty free benefit where Modvat has been availed; job work or contracts limited to jobbing charges that do not transfer ownership satisfy the Notification.

Duty drawback threshold reduced; lower minimums and special exceptions for postal and duty-exemption exports apply.
Amendment of Rule 8 reduces the monetary threshold for payment of duty drawback and retains a minimum two percent of F.O.B. value where the calculated drawback is below that threshold, except that the two percent minimum does not apply to exports by post and exports under Advance Licences issued under the Duty Exemption scheme. The amended limits are to be applied with reference to the date of the Let Export order, so the relaxation operates only for shipments permitted on or after the amendment's effective date.

Anti dumping duty rebate: claimable only via brand rate after verification, included when goods are exported as imported.
Anti dumping duty is rebatable as duty drawback but, since it is excluded from the all industry drawback rate, it can be claimed only by obtaining a brand rate after verification that the inputs which incurred anti dumping duty were actually used in the exported goods; if imported goods subject to anti dumping duty are exported as such, drawback will include the anti dumping duty as part of total duties paid.

Waiver of Board approval allows duty-free import and procurement of office equipment by eligible export scheme units without itemwise permission.
Amendments remove the requirement of obtaining case-by-case permission from the Board of Approval for duty-free import of office equipment, spares and consumables by units under EOU/EPZ/STP/EHTP schemes, and a parallel excise amendment permits duty-free indigenous procurement of the same items without specific Board approval; other procedures and conditions under the relevant exemption notifications remain unchanged.

Import restriction on used tyres: only physically cut tyres and tubes permitted; radial tyres cannot be imported as scrap.
Import of used rubber tyres and tubes is permitted only if tyres are cut in the bead wire and tubes are cut into two pieces; radial tyres must not be imported as scrap to evade the Import Export Policy, and field formations are directed to enforce this interpretation strictly.

Interpretation references: endorse copies to other commissioners to secure consultative views and avoid processing delays.
When referring issues of interpretation of law, classification or procedure to the Board, the referring officer must endorse copies of the reference to the other Commissioners of Customs so they can communicate views; Commissioners of Central Excise with ICD/CFS/ACC must likewise copy their references to other Commissioners of Customs.

Transhipment without duty: notification designates all customs ports and ICDs for automatic transhipment, rescinding prior lists.
Notification No. 50-Customs (N.T.) dated 6 September 1995 appoints all Customs ports, Inland Container Depots and Customs airports notified under section 7 as places where imported goods may be allowed transhipment without payment of duty, subject to the proper officer's satisfaction that goods are bona fide for transhipment; earlier specific notifications declaring particular airports and ICDs as transhipment places are rescinded and field officers are to be issued standing orders and trade informed.

Exemption of additional customs duty for advance licence imports when licence applications and qualifying exports meet prescribed eligibility conditions.
Exemption from both basic and additional Customs duty is available for materials imported against Value Based Advance Licences for leather garments and ready-made garments when licence applications are filed on or after 19th September, 1995 and relied-on exports occur after filing; inputs are subject to an Actual User Condition, licences are non-transferable, exports prior to the specified date cannot fulfil obligations for earlier applications, and the scheme adopts compliance, recordkeeping, and monitoring requirements in line with the earlier Notification No. 204/92-Cus.

Exemption of additional customs duty for advance licence imports permits duty-free inputs for specified garment exports subject to strict eligibility conditions.
Exemption from both basic and additional customs duties is allowed on materials imported against Value Based Advance Licences for specified leather and readymade garment exports where licences and corresponding licence applications are dated on or after the specified notification date; imports linked to exports or export obligations predating that filing are ineligible. Imported materials are subject to an Actual User condition, non-transferable, usable only by the licence holder or joint supporting manufacturer, and exports under this scheme are not eligible for drawback; Customs must monitor compliance and maintain separate records including CIF/FOB values and revenue foregone.

Private bonded warehouse rules: heightened security, solvency and insurance requirements for sensitive goods, with proportional bond and guarantee safeguards.
Guidelines require categorising private bonded warehouse applicants into sensitive and non sensitive goods handlers and impose differentiated safeguards: sensitive goods applicants must provide a solvency certificate from a scheduled bank, avoid residential locations, maintain robust physical security, firefighting arrangements and comprehensive insurance in favour of the customs authority; existing licences must be reviewed and remediated. Sensitive consignments require proportional cash deposit or bank guarantee security, with an option for revolving bonds; non sensitive applicants need lower solvency and ordinarily the statutory double duty bond, while transit transfers outside metropolitan limits require transfer bonds or guarantees with commissioners empowered to demand higher security.

Customs duty calculation: duty rate for goods cleared after warehousing expiry is determined on payment date.
When goods are cleared from a warehouse after the authorised warehousing period has expired they cease to be warehoused goods and duty for such post-expiry clearances is to be calculated at the rate prevailing on the date of payment of duty; valid extensions filed before expiry preserve the original treatment, while extension requests filed after expiry cannot be granted.

Bank Guarantee relaxation: export houses may clear imports under DEEC and EPCG schemes against bond without guarantees.
Export Houses are permitted parity with Trading Houses to clear imports under DEEC and to clear capital goods under EPCG against a bond without a bank guarantee, except where the EPCG Committee specifically prescribes a bank guarantee. Under the zero-duty EPCG, exemption from bank guarantee on bond clearance is confined to Trading House tiers, while Export Houses may clear on bond subject to a reduced bank guarantee for the duty differential saved or any higher minimum prescribed by the EPCG Committee.