End-use condition required for duty exemption on multi-use imports, with proof of leather-industry use and undertaking.
Imposition of an end-use condition is required for duty exemption on multi-use imports for insole/midsole and related sheets; items capable of diverse uses are subject to an actual user undertaking, including maintenance and periodic submission of accounts, and may be cleared under the exemption only if the importer proves the goods were imported for use in the leather industry and furnishes the required end-use bond at customs clearance.

Fraudulent DEPB scrips: import clearances must be refused and incidents immediately reported to competent authorities for investigation.
DEPB scrips obtained by forged documents in the names of non existent exporters are fraudulent and no clearances of imported goods against those scrips shall be permitted. Investigations show the scrips were transferred to several parties and produced at multiple Customs stations; any attempt to clear goods against these scrips must be refused and reported to the Board and the investigating Customs office for further action.

Baggage imports by tourists: specified personal effects allowed duty free, generally only used items exempted unless prima facie new.
The circular reproduces an operational list of goods to be treated as personal effects for duty free import by tourists under the Baggage Rules, including jewellery, cameras, video cameras, binoculars, a small television, music system, portable typewriter, permabulator, tent and camping gear, one computer, electronic diary, portable radio, professional/audio visual equipment, specified sports equipment, and one cell phone. It clarifies that the 1998 rules contemplate exemption for used personal effects and that customs need not verify newness unless items are prima facie new in original packaging indicating commercial importation.

Exemption from Bank Guarantee for registered manufacturer-exporters under DEEC/EPCG subject to export obligation compliance and solvency.
Manufacturer-exporters registered with the Central Excise Department are exempted from furnishing a Bank Guarantee under the DEEC and EPCG Schemes, subject to conditions: qualifying turnover in the preceding year, fulfilment (or non-default) of export obligations for existing licence-holders, prior export performance for first-time licence-holders, no penalisation under specified laws in the last two years, and a solvent surety certified by a bank or chartered accountant; a prescribed bond detailing obligations, duty liability on default, and recovery mechanisms accompanies the exemption.

Concessional duty eligibility denied for Network Interface Units as they constitute terminal equipment excluded from benefit.
The NIU/FWT, as the customer premises end unit that interfaces user apparatus with the WLL central receiver, is functionally terminal equipment; because the customs notification granting concessional duty to WLL system equipment expressly excludes terminal equipment, the NIU/FWT does not qualify for the concessional rate.

B-17 bond requirements revised: bond linked to duty on sanctioned capital goods and raw material stock; surety or approved security accepted.
Execution of the B-17 bond for EOUs, EPZ, EHTP and STP units is limited to the duty on sanctioned imported and indigenous capital goods plus duty on raw materials held in stock for six months, with the unit certifying the calculation. Units must furnish either surety for that revised bond amount or an approved security equal to five percent of it; solvency of sureties may be certified by a Chartered Accountant or the surety's banker. Directors may stand as personal sureties and corporate bodies may also act as sureties.

Sub-contracting permissions for EOU/EPZ units require prior statutory recording and return of finished goods and wastage.
Permission to subcontract by EOU/EPZ/EHTP units is to be granted by the Assistant Commissioner; raw materials must first be received and recorded in the unit's statutory records before being sent to job-workers, and finished products plus any wastage must be brought back to the unit for accounting. Textile, garment, agro-processing and granite EOU/EPZ units may perform job-work for DTA units only if the finished goods are exported directly from the EOU/EPZ unit and not returned to the DTA.

EPCG irrigation equipment rules: ownership and installation conditions restrict transfer until export obligation fulfilled for agro exports.
Irrigation equipment may be imported under the EPCG scheme for export of agro products provided ownership remains with the EPCG licence holder and the equipment is not sold or leased. The licence holder must supply a list of premises where equipment will be installed to the Assistant Commissioner of Customs and furnish a Chartered Engineer's certificate confirming installation and that the equipment will remain at the declared premises. The licence holder must undertake in the Bond/LUT not to transfer or sell the equipment until the export obligation is fulfilled.

Merchant overtime recovery: new regulations define scope, require written requests, and impose revised fee and block charging rules.
The Customs (Fees for Rendering Services by Customs Officers) Regulation, 1998, effective 15 October 1998, supersedes prior rules, defines "Customs Officer", "Customs work" and "rendering services", prescribes revised hourly fee rates by officer category and time bands, requires written advance requests with fees payable by the requesting party, mandates a minimum three hour charge except for contiguous overtime, treats midnight-6 A.M. as a single block, and establishes before and after lunch blocks charged in full.

Export by courier permitted for EOU/EPZ/EHTP/STP units, following prescribed sample-export customs clearance procedure.
Clearance rules permit EOU/EPZ/EHTP/STP units to export goods through authorised courier agencies by applying the procedural framework previously prescribed for sample exports; eligible units must follow the documentation, consignment handling and customs clearance steps set out in the earlier circular.

Non availment of Modvat certification: simplified rules allow periodic or self declaration for processing drawback claims per shipment.
Non availment of Modvat credit for drawback processing is simplified: exporters under bond or rebate must produce AR 4 or a Central Excise superintendent's certificate; manufacturer exporters under excise control may rely on biannual Assistant Commissioner certificates for listed products, with fresh certificates for new commodities; self declaration may suffice for unconditionally exempt goods and manufacturers outside excise control; Councils may certify unregistered cottage sector suppliers; merchant exporters benefit from supporting manufacturers' certificates while open market purchases are treated as Modvat availed and limited to Customs allocation.

Duty Drawback reform updates caps, Modvat compensation and EDI identifiers to streamline export drawback processing.
New All Industry Rates of Drawback impose a cap on previously high rates, adjust the Central Excise component to compensate the unrecovered portion of input tax where Modvat is claimed, assign unique serial identifiers for EDI processing, waive Modvat non-availment certificates for exports unconditionally exempt from Central Excise, consolidate handloom made-up rates, and reinstate drawback rates for garments from EOU/EPZ units while directing field publicity and compliance with revised Rules.

Regulation 9 examination access expanded: authorised firm representatives may sit, subject to graduation and limited attempts to qualify.
Amendments require temporary licence applicants under Regulation 6(a) to be graduates and ordinarily to have experience as Form 'G' pass holders, subject to commissioner relaxation; diplomas are acceptable only if a university equates them to degrees. Regulation 9(5) allows one additional firm representative to sit the Regulation 9 exam provided he is a graduate, without necessarily holding a Form 'G' or the prior experience, and such examinees have a limited number of attempts within a fixed period; independent licence applications require full Regulation 6 compliance.

Drawback eligibility for tourist purchases affirmed where declared foreign exchange is encashed and exporter files appropriate shipping bill.
Drawback under DBK/DEPB is allowable where goods bought by visiting tourists are exported with verified linkage to declared and encashed foreign exchange; the shipping bill must be filed by the Indian exporter or authorised representative, the visitor must produce the Currency Declaration Form and encashment documents with matching signatures, and export benefits are restricted to bona fide exporters with provisional export permitted pending verification.

Export Processing Zone designation: Kayfoam EPZ added as an eighth multi-product zone under existing EPZ notifications.
Notification amends prior EPZ notifications to designate Kayfoam Export Processing Zone, Kandivli, as the eighth EPZ and to include it within the existing EPZ regulatory framework; the zone is approved as a multi-product EPZ and authorities are directed to publicise its creation by issuing a Public Notice.

Sub-contracting permissions for EOU units allow removal of moulds and tools for job work, subject to return and customs norms.
Permission for 100% EOU/EPZ/EHTP units to remove moulds, jigs, tools and related items to subcontractor premises for job work is granted provided those items are returned to the unit on completion within a stipulated period. Notifications have been amended to reflect this. Subcontracting is also permitted where raw materials lose identity or substantial manufacture does not occur in the parent unit, subject to input/output norms set by the Assistant Commissioner of Customs; subcontracting limited to predominantly indigenous raw material use was not allowed to avoid conversion to trading activity.

Passbook scheme credit validity: credits expire after one year or by scheme end; authorities must finalise claims.
Credits under the Pass Book Scheme are valid for one year from the date of grant or until 31 March 1999, whichever is earlier. Designated Authorities and Commissioners of Customs are directed to finalise claims and grant admissible credits without delay and to report pending Pass Books where credits remain unallowed, in accordance with the DGFT policy circular.

Export cargo movement by sealed trucks enables transfer from hinterland to gateway airports with custodian accountability and seal verification.
Goods may be stuffed and sealed under Customs/Central Excise supervision at factories or ICDs/CFSs, with tamper proof seals and documentary endorsements on Shipping Bills and AR4 controlling transit. Custodians or factory owners are accountable for shortages and may execute continuity and transport bonds; assessment, examination and retention of original/duplicate Shipping Bills and GR forms occur at ICD/CFS, transference copies accompany sealed trucks/containers to gateways, where Customs verify seals and endorse shipment without repeat assessment if seals are intact.

Fast Track Clearance eligibility expanded: manufacturer-importers of electronic goods with required investment now admitted to streamlined import procedure.
The Central Board of Excise & Customs amended clause A(vii) of the earlier circular to provide that a manufacturer importer of electronic goods with an investment of Rs. 3 crores and above is eligible to use the Fast Track Clearance procedure, enabling such manufacturer importers to avail themselves of the captioned fast track import clearance process under the existing circular framework.

Duty-free clearance conditions: re-export bond required and a bank guarantee to secure the duty obligation on display imports.
Duty-free clearance for goods imported for approved fairs and exhibitions is allowed under Notification 3/89-Cus. only upon furnishing a re-export bond for 150% of the value of the goods, backed by a Bank Guarantee for 100% of the duty amount, and applies solely to events certified by the Ministry of Commerce or authorised ITPO officers. Imports intended for private sales promotion are not covered and must pay full customs duty, with drawback available under section 74 on re-export.