Duty drawback revision allows supplementary exporter claims with specified declarations and a repayment obligation for excess payments.
Exporters may file supplementary drawback claims for specified entries by submitting a letter declaring exporter name and address, shipping bill number and date, the applicable drawback table serial/sub serial reference, the previously obtained drawback amount with supporting receipt or challan (provisional or final), the difference claimed, and a declaration to repay or adjust any excess amount; such a letter may be accepted if the claim is otherwise in order. The circular also amends an identified serial/sub serial entry in the drawback table.

Confiscation powers for uncleared imported goods reinforced to reduce cargo dwell time and expedite airport clearance procedures.
Customs and custodians must apply statutory confiscation and disposal powers to imported goods uncleared within the statutory period or falling in the negative list, with goods removable to customs godowns or destroyed if valueless, after notice to the importer and permission of the proper officer. Operational measures require two-shift import cargo shed operations, partial release of export consignments into bonded areas to reduce examination-area congestion, and continuation of a temporary fifty percent licence fee concession for customs-occupied space pending final decision.

Let Export Order controls: amendments to shipping bills and freight require customs permission and fresh procedures.
Goods must be presented for examination and Let Export within seven days of filing or a fresh declaration must be filed. If carriage is shifted to a different airline after export permission, the Let Export Order must be cancelled and freight amended in the Shipping Bill with Assistant Commissioner approval. Airlines cannot amend freight for CIF or C&F consignments after Let Export without authorised customs permission and amendment; authorised officers must list upward freight revisions daily to A.C.(DBK).

Customs assistance to Haj pilgrims to provide baggage rules and open information centers at embarkation points.
Customs are directed to disseminate baggage rules and provide assistance to Haj Pilgrims at all air embarkation points, reflecting the shift from sea to air travel. Commissioners of Customs must ensure information and support at departure airports and, where feasible during the Haj season, open Customs information Centers in State Haj Houses. Coordination with State Haj Committees and relevant state departments is required to notify concerned parties and facilitate on-site assistance for pilgrims prior to travel.

Cost recovery for customs staff allows advance deposits for only the officers actually posted at ICDs/CFSs.
Posting of customs staff at ICDs and CFSs is on a cost recovery basis with sanctioned staff complements prescribed for export-only and for import-and-export facilities; full sanction is to be obtained even if initially fewer officers are posted. The Commissioner of Customs may, on custodians' request, post less than the sanctioned strength where business is limited and accept advance deposits of cost recovery charges for the staff actually posted for a specified initial period. A public notice should be issued to notify these arrangements.

Duty drawback restoration for specified textile exports reinstates higher rates temporarily and permits supplementary claims under Rule 15.
Restoration of Duty Drawback rates reinstates higher all industry rates for specified knitwear, garments and made ups with effect from 17.10.1997 until 31.12.1997; a separate notification will implement revised rates effective 1.1.1998. Exporters entitled to higher amounts may file supplementary claims under Rule 15 of the Customs and Central Excise Drawback Rules, 1995 (as amended).

Unclaimed cargo disposal allows custodians to auction goods if customs do not object, with proceeds shared between parties.
Custodians are authorised to dispose of long standing unclaimed or uncleared import consignments through public auction using reserve prices fixed by custodians' approved valuers; customs must notify disputed or stayed consignments within specified response periods or lose objection rights. Valuations may be resolved by a three valuer panel; staged reductions in reserve price apply for perishable and non perishable goods after failed auctions, including simultaneous sealed tenders. Custodians must send periodic disposal lists and keep consignment wise accounts; sale proceeds are to be shared between custodians and customs on a 50:50 basis pending final accounting to ensure statutory duty recovery.

Dual counting of exports under Advance Licence and EOU schemes undermines export obligation compliance; field enforcement must prevent misuse.
Certain export consignments routed through 100% Export Oriented Units or Export Houses were irregularly counted both under the Advance Licence Scheme and the EOU Scheme, causing the same exports to be applied to fulfil export obligations under both schemes; field formations are directed to be alert to such misuse and to prevent recurrence by enhanced oversight.

Bonded warehouse relaxations let nominated banks use licensed vaults with bonds and stock verification safeguards.
Banks nominated as agencies may use licensed branch vaults instead of separate bonded warehouses, keep segregated duty free accounts, submit branch or head office bonds under Section 59 covering duty liability for maximum likely stocks, and operate without separate bank guarantees for those bonds; banks must allow periodic surprise stock verifications and exporters clear metals from banks against their own bonds and guarantees while customs may recover duties and encash guarantees on default.

Adjudication powers expanded allowing Additional Commissioner to decide certain customs duty show-cause cases with limited monetary involvement.
The Board modified prior instructions by authorising that where customs duty was unpaid, short-levied or erroneously refunded due to collusion, wilful misstatement or suppression of fact, show-cause notices under section 28 of the Customs Act involving duty up to Rs. 5 lakhs may be adjudicated by the Additional Commissioner of Customs, and directed issuance of standing orders to disseminate the change.

Import metal scrap safety: mandatory full examination and certification to prevent explosives in consignments from war-affected areas.
Import consignments of heavy melting scrap originating from countries affected by rebellion or war must be accompanied by a Pre-shipment Inspection Certificate and a contractual warranty that the goods contain no arms, ammunition, mines, shells, cartridges, radioactive contamination or other explosive material; such consignments must undergo Full Examination and, pending delisting of a specified inspection agency, clearances based on that agency's certificates require physical verification by customs.

Classification of components: extensive on-site manufacturing can preclude treating imported parts as complete goods under interpretative rule.
Treatment of imported CTV components as complete television sets applies only when imports require solely assembly operations and retain the essential characteristic of the finished article. Components subjected to further working operations to reach finished state-for example, populating bare PCBs and other elaborate manufacturing processes-should not be assessed as complete articles. Field officers are directed to consider the extent of on-site manufacturing work when classifying such imports.

Computerized export customs processing under EDI mandates electronic shipping bill filing with systemised let export and drawback procedures.
The EDI regime for exports at Air Cargo Complex, Sahar mandates registration of exporters/CHAs, submission of prescribed signed declarations at the Service Centre, and data entry that auto generates Shipping Bill numbers. Physical presentation of goods for examination remains required; a system recorded "Let Export" order must be given before printing shipping bills. Specific categories of shipments trigger supervisory on screen review. Drawback and DEEC claims are integrated into EDI with appendix based declarations and bank account requirements for electronic crediting, and airlines must file Export General Manifests electronically.

Customs area designation permits open storage of metallic scrap and machinery under port trust custody with security requirements.
The Commissioner designates Sewri North as a Customs area for storage of metallic scrap, machinery packages, non-hazardous drums and similar cargoes suitable for open-area storage, effective until further orders, conditioned on the area remaining under complete Mumbai Port Trust control and on cargo being held under Mumbai Port Trust custody with adequate security. The Mumbai Port Trust must also provide adequate lighting and fire-fighting equipment within or near the area.

Tamper proof seals compulsory: containers must use bottle seals to prevent tampering and costs recovered from exporters.
Containers must be sealed with tamper-proof bottle seals instead of punch seals, and the cost of such seals shall be recovered from exporters or their agents; recipients are requested to acknowledge receipt.

Freight consolidation and partial debonding permitted to simplify export procedures and material handling for electronic hardware exporters.
Permits freight consolidation for co located electronic hardware units; allows partial debonding of capital goods with Development Commissioner and Assistant Commissioner approvals; authorises re export, DTA clearance on payment of duty, or destruction of scrapped raw materials with requisite permissions; permits import of goods for reconditioning/upgradation under relevant notifications; accepts free replacement of defective exports subject to GR waiver; affirms self removal where only indigenous inputs are used with Commissioner's permission; and confirms DTA sales and committee based clearances for software and electronic hardware under existing EXIM policy.

Re-warehousing security requirements relaxed for export-oriented units; transit bond or insurance required, stricter guarantees for repeated defaults.
Imported goods transferred for re warehousing to inland stations require security for customs duty; the 5% Bank Guarantee is waived for consignments to 100% EOU, EHTP, STP and EPZ units provided a transit bond or insurance equivalent to duty is obtained and a re warehousing certificate is submitted within 30 days of despatch. Failure to produce the certificate within 30 days for more than three consecutive consignments will require supporting the bond with a 100% Bank Guarantee. These instructions modify Board Circular No. 29/95.

Relaxation for coastal vessels: exemptions from select customs provisions with operational controls and inspection powers.
Vessels exclusively carrying coastal goods are exempted from specified Customs Act provisions, but vessels changing status remain governed by Chapter XII. Coastal operations must use separate exclusive berths; the master must maintain an advice book; loading and unloading are confined to places notified under the Act. Customs officers retain powers to board, inspect, require documents and question vessel personnel, and should conduct selective random checks. Light dues may be collected by Customs until alternate arrangements are made, and implementation difficulties should be reported for issuance of standing orders and public notices.

Duty Exemption Scheme extension permits DEEC clearances at specified inland container depots with procedural safeguards and exclusions.
Extension of the Duty Exemption (DEEC) Scheme allows imports and exports to be cleared through specified Inland Container Depots, with Commissioners required to register Advance Licences and DEEC books, process documents, maintain prescribed records, log shipments, apply checks and safeguards from Board circulars, and ensure Bonds and Bank Guarantees are updated and enforced to secure recovery for unfulfilled Export Obligations.

Foreign Travel Tax increase implemented, requiring airlines to collect enhanced travel tax effective from the appointed September commencement.
Foreign Travel Tax is increased by the Finance Acts (Amendment) Ordinance, 1997, substituting a higher rate in section 35 of the Finance Act, 1979 for passengers embarking to places other than neighboring countries; a notification appoints the date the change takes effect and directs publicity and immediate collection by international airlines, while the rate for neighboring-country travel remains unchanged. The Ordinance also raises the special duty rate in the Finance (No. 2) Act, 1996 with a proviso maintaining a lower rate for specified tariff headings.