DEPB credit re credit required where final duty is lower to ensure equitable adjustment and prevent illegal over debit.
When final duty assessed is less than the provisional duty debited to a DEPB scrip, the Customs House must re credit the excess debit to the DEPB scrip as an administrative adjustment, since a DEPB scrip can only be debited to the extent of duty leviable and failure to re credit would amount to an unlawful higher duty charge.

Product description correction: "Others" replaces "Tipper" in drawback table, covering chassis of heavy motor vehicles.
The Drawback Table entry erroneously showing "Tipper" for Sub Serial No. 87.09 is a clerical error; the description should read "Others" and is intended to cover chassis of motor vehicles of payload exceeding 4000 kgs. Recipients are instructed to notify staff and trade and to acknowledge receipt of this corrigendum.

Transferability of Advance Licences allowed with conditions and revalidation to be issued under DGFT public notice.
Endorsement of transferability and revalidation is permitted for expired Advance Licences issued under Exim Policy 1992-97 where export obligations were completed on or before 31.12.97 but endorsement could not be effected; qualifying situations are licences submitted to DGFT by the prescribed cut off but not endorsed due to subsequent notifications or administrative delay, and licences not submitted because of DEEC logging delays or delayed issuance of Modvat Reversal Certificates - the latter require a certificate from the Assistant Commissioner of Customs/Central Excise. DGFT will allow transferability with revalidation up to 31.3.2000 and issue a Public Notice.

DEPB rate denial for composite hessian bags with liner, handle and zipper clarifies export classification and entitlement.
The Department of Revenue directed that the DEPB rate under Sr. No. 38 of the Plastic Group not be applied to the export product "Hessian Bag with LDPE liner, plastic handle and zipper" because the listed entry covers hessian bags with liners for industrial/commercial use, whereas the exported item is a composite consumer good; Customs staff and trade associations are to be notified to prevent application of the Sr. No. 38 DEPB entitlement to this composite product.

Excise duty computation revised: DTA clearances by EOUs capped at statutory ceiling after customs duty reclassification.
Notification 38/99 amends earlier concessional excise notifications so customs duties for computing excise on DTA clearances are to be read as duties leviable under the Customs Act or any other law; however, excise payable remains subject to the proviso ceiling in section 3(1) of the Central Excise Act, and the excise charged is the minimum of the aggregated customs-derived rate and that statutory ceiling.

Courier clearance reforms expand weight and value allowances and streamline security, notice, and administrative procedures for shipments.
Amendments to the Courier Imports & Exports (Clearance) Regulations, 1998 increase permissible consignment weight, convert the free-gift ceiling to a per-consignment limit, raise commercial-sample value thresholds, permit exports above the standard value threshold subject to Reserve Bank waiver, require notice to authorised couriers before disposal of detained imports, permit Assistant Commissioner extension of export time in deserving cases, reduce prescribed security amounts with bank-guarantee option and remove limits on authorised couriers per airport, and broaden administrative delegations for manifest amendments while mandating night appraisal coverage at major airports.

Warehousing interest clarified: graded interest applies to previously warehoused goods from later of six-month expiry or notification.
The revised graded interest rates introduced by Notification No. 30/99, effective 12.5.1999, apply to goods warehoused before that date only from the later of the expiry of the six-month warehousing period or 12.5.1999; cases where goods were removed on or after 12.5.1999 should be reviewed accordingly.

Duty drawback on tea requires a certificate of non availment of MODVAT; otherwise exporters must seek brand rate or rebate.
Duty drawback on tea is conditional on mandatory production of a certificate of non availment of MODVAT; exporters unable to provide it should apply for Brand Rate or avail rebate. The drawback rate applies only to bulk tea and excludes packing materials. Drawback is not allowable where exporters are availing excise rebate on bulk tea or exporting under bond under the Central Excise Rules. Authorities must notify staff and trade and seek acknowledgement of the circular.

Replacement of defective exports and imports permitted with conditions, subject to GR Waiver and customs re-import/re-export rules.
Permits EOU/EPZ/STP units to make free replacement of exported goods found defective, damaged or unfit prior to physical re-import subject to GR Waiver, with such goods to be subsequently brought back; allows re-import where foreign buyers fail to take delivery. Allows receipt of free replacement for imported defective goods prior to re-export; if supplier does not insist on re-export, goods may be destroyed with customs permission or cleared into the DTA on payment of full customs duty.

Bank guarantee requirement reduced for bonded diamond warehouses; specified exporters may use a legal undertaking in lieu of security.
Security for bonded warehouses handling diamonds and coloured gemstones is amended: specified categories of exporters may submit a Legal undertaking (LUT) in lieu of bank guarantee or cash deposit, while other exporters are required to provide security equal to 25% of the duty liability instead of the earlier 50%, modifying the prior circular.

Re-export of EPCG-imported capital goods requires prior payment of full customs duty on merits; drawback claim may follow.
Re-export of capital goods imported under the EPCG Scheme at concessional or nil duty is not permitted without first paying full customs duty on merits; after payment the importer may claim drawback under the statutory drawback framework. Recovery proceedings must be initiated where re-export occurred without duty payment, and public notice and standing orders should be issued to guide trade and staff.

Brand rate of drawback extended to DEPB exports despite inadvertent negative declarations, subject to standard verification and fixation.
Where DEPB-cum-Drawback shipping bills contain inconsistent exporter declarations regarding claiming drawback, the inadvertent statement that drawback will not be claimed will not bar entitlement to the Brand Rate of Drawback. Such cases are eligible for normal brand rate fixation and reimbursement of additional customs duty and excise duty on inputs used in exports of non exciseable products, subject to receipt of verification reports from field formations.

Certification of Handicrafts: Export Promotion Council or Development Commissioner certificates accepted for drawback processing.
Because handicrafts are unconditionally exempted from Central Excise duty, exporters under the Duty Drawback Scheme need not produce a certificate of non availment of MODVAT; exports must be supported by a certificate that the goods are handicrafts, and the Board will accept such certificates issued by the Development Commissioner, Handicrafts or by the Export Promotion Council for Handicrafts endorsed on the Shipping Bill.

Duty drawback applicability: woollen garments limited to specified categories; others eligible only for brand rate.
Sub Serial No. 62.01 (All Industry Rate) does not apply to woollen readymade garments not specifically listed; Sub Serial No. 62.09 applies only to woollen suits, trousers, blazers and jackets. Woollen garments outside those specified categories are not covered by any Sub Serial numbers in the Drawback Table and exporters can claim only the Brand rate.

DEPB credit eligibility for made ups: guidance on admissibility and documentation requirements for yarn dyed fabrics, clarified for exporters
Admissibility for DEPB credit depends on Customs Board circulars; DGFT circular is to be ignored. Handloom exports require HEPC certification. For non handloom made ups, shipping bills are admissible if the fabric was cleared by the manufacturer against an AR 4/AR 5 form or if visually determinable processing (e.g. printing) shows the fabric was processed; otherwise Customs may demand a test report to establish prescribed processing.

Port clearance requirement: valid Marine Shipping Act licence or authorised surveyor clearance required before foreign vessels depart Indian coast.
Customs shall not grant port clearance to foreign-flag vessels unless they produce a valid licence under the Marine Shipping Act; if no licence is produced, the vessel must obtain clearance from the Mercantile Marine Department or an officer authorised by the Directorate General of Shipping as Surveyor of the port, particularly where the vessel is engaged in coastal operations such as servicing offshore platforms, drilling, tugs or supply duties.

Sample clearance limit for export-oriented units expanded, allowing duty-paid disposals into the domestic market under the Exim Policy.
EOU/EPZ/EHTP/STP units may supply or sell samples into the Domestic Tariff Area for display and market promotion on payment of applicable duties, subject to a ceiling of up to one percent of the previous year's export value and a separate higher maximum for new units going into production; this circular modifies earlier Board instructions and directs publication of a public notice and reporting of implementation difficulties to the Board.

Currency carriage rules permit higher denomination notes on foreign-going vessels for crew wage disbursement, subject to RBI conditions.
Permission is extended to foreign-going Merchant Ships to carry Indian currency notes of Rs. 100/- denomination on board for disbursement of wages, subject to the usual conditions prescribed by the Reserve Bank of India. Customs officers are directed to issue a Public Notice to inform relevant personnel and to report any implementation difficulties to the Central Board of Excise & Customs.

Customs duty exemption certification: one-time health-category certification allows hospital heads to authorise equipment exemptions.
Certification for customs duty exemption on imported medical equipment is a one-time requirement; once a health authority issues a category certificate, the head of the importing hospital may issue individual customs duty exemption certificates for equipment without further reference. Central Government ministries/departments may adopt an administrative procedure whereby a controlling authority's officer (not below Deputy Secretary), with Secretary approval, issues specific certification and supplies a hospital list for one-time categorization.

Concessional customs duty for urea: imported urea for complex fertilizer production qualifies for reduced duty and clearance.
Urea imported for production of complex fertilizers is entitled to the same concessional customs duty afforded to urea imported for use as manure, because dictionary definitions treat manure and complex fertilizers as equivalent fertilizing substances. The Board applies precedent recognizing concessional treatment for inputs used in fertilizer manufacture and directs that pending consignments at ports/ICDs may be cleared accordingly, with any implementation difficulties to be reported to the Board.