FOB value retained as primary basis for DEPB credit; market verification only on intelligence of over valuation.
FOB value shall generally be the basis for granting DEPB credit as recognised in export transactions. Market verification to determine Present Market Value (PMV) may be initiated only on specific intelligence or evidence of FOB inflation, sensitive destinations, or sub standard goods, and requires express written approval of the Commissioner of Customs. If investigation conclusively proves artificial inflation, DEPB entitlement will be calculated on PMV; verifications must not be routine and should be completed expeditiously to avoid trade harassment.

Excise duty recovery required for DTA sales under excluded policy provision; differential customs-equivalent duty must be collected.
Clearances into DTA of goods manufactured from wholly indigenous raw materials under Exim Policy paragraph 6.8(f) are not covered by the central excise notification permitting exemption; such clearances are liable to excise duty recoverable as an amount equivalent to customs duties on similar imports, and jurisdictions are directed to examine DTA sales under paragraph 6.8(f), recover any differential duty, and report details to the Board.

Fraudulent exports mis-declaration of goods' weight to obtain excess duty drawback and DFRC benefits exposed; customs instructed to intensify checks.
Fraudulent exports involving deliberate mis-declaration of weight and value to obtain inflated duty drawback and DFRC benefits were detected; physical examination showed actual weight substantially lower than declared. Customs officers are instructed to note the modus operandi, increase vigilance in export clearances and physical examinations, adopt preventive measures to prevent recurrence, and acknowledge receipt of the circular.

Compliance with Board circulars required; field officers must follow instructions and escalate doubts to prevent trade harassment.
Field formations must strictly follow Board circulars and instructions, avoid independent interpretations, and promptly escalate doubts to higher authorities. Administrative heads should study circulars and issue clear Public Notices or standing orders to guide staff, monitor field compliance to prevent trade harassment, and treat lapses in implementation seriously.

Freight deduction from f.o.b. value: air freight paid by exporter on collect shipments need not reduce drawback entitlement.
Where contracts and letters of credit record sales on f.o.b. terms with freight on collect basis, exporters who, due to exigency, airlift consignments and pay higher air freight themselves without changing the contractual f.o.b. value shall not have that additional freight deducted from the contracted f.o.b. value when recalculating export drawback; this rule applies to all commodities and pending cases should be decided accordingly.

Duty-free import eligibility for reusable packaging containers confirmed, with identity by declared dimensions, photographs and limited tolerance.
Reusable packaging containers of metal or plastic are eligible for duty-free import under Notification No. 104/94-Cus. The requirement for engraved identification numbers may be waived; importers must declare particulars such as dimensions, shape, weight and colour. Customs may require photographs at the importer's expense, attest them, and perform random examinations. Identity at export may be established by photographs and declared physical parameters, subject to a limited tolerance.

Drawback under Section 74 clarified: re-export need not be to same supplier or from same port if conditions met.
Drawback of customs duties on re-exported goods is allowed where the statutory conditions, the Re export of Imported Goods (Drawback of Customs Duties) Rules, 1995, and relevant notifications are met; neither the statute nor the Rules or notifications require re-export to the original supplier or through the same port, and drawback should be granted on merits with appropriate public guidance and standing orders for customs officers.

Inter unit transfer of duty free capital and manufactured goods permitted between export units, subject to prior permission for capital goods.
The Exim Policy permits duty-free transfer of manufactured goods between EOU/EPZ/EHTP/STP/SEZ units and allows transfer or loan of capital goods between such units with prior permission of the concerned Development Commissioner or Customs authorities; administrative reliance is authorised pending amendment of the implementing customs notification and a public notice is to be issued.

Sports requisites exemption confirmed for materials used to lay synthetic tracks and indoor wooden flooring, allowing duty relief.
Materials imported for laying synthetic athletic tracks and wooden flooring systems for indoor stadia qualify for the sports requisites exemption under notification No.146/94-Cus rather than the scheme-specific provisions of notification No.21/2002-Cus. The Board held that synthetic tracks and artificial surfaces are essential for playing sports and therefore are sports requisites, and the materials required to lay them are either requisites or consumables related to sports requisites; the exemption provision is broad and should not be narrowly construed. Customs formations are to apply this position and decide pending cases.

Duty-free import eligibility for reusable plastic containers requires re-export within prescribed period and identity documentation.
Reusable plastic trays qualify as durable containers eligible for duty exemption if re-exported within the prescribed period and documentary evidence is furnished to the satisfaction of the Assistant Commissioner. To address identification challenges, importers must declare colour, dimensions, weight and any engraved identification number for each tray type, may provide attested photographs at their expense, and consignments may be inspected at random; identity at export may be verified using these parameters with a permissible variation threshold.

Pre-shipment inspection requirement: export consignments of honey, marine, milk and egg products must carry inspection certificates.
Pre-shipment inspection and compulsory certification are required for exports of honey, marine products, milk products and egg products under the Export (Quality Control and Inspection) Act, 1963; notified items cannot be exported unless accompanied by a certificate of inspection issued by an Export Inspection Agency or a government-recognised agency, and customs will permit clearance of such consignments only upon production of that inspection certificate for verification.

Interest on warehoused goods: the previously notified higher rate remains in force; the lower rate applies only under a different provision.
The later notification fixing a lower interest rate applies only to the separate provision dealing with delayed payment and does not apply to goods warehoused under the warehousing provision. The previously notified higher rate for warehoused goods remains in force and is within the statutory permissible range; authorities must continue to apply and communicate this position to relevant parties.

Verification of Advance Licence: Customs must confirm export records before cancelling bonds or allowing import benefits.
Customs must verify export details shown in DGFT redemption letters or "No Bond" certificates against Customs records before discharging Bonds/Bank Guarantees/LUTs or allowing imports under Advance Licences. Only licence holders, authorised employees or authorised CHAs may submit verification documents; persons submitting under "Self" must obtain an Inspector issued identification number and present specified authorisations. Submissions require prescribed documentary checklists including DEEC statements, original shipping bills, bills of lading, customs attested invoices and bank realisation certificates. Verification registers, triplicate acknowledgements and next day processing timelines govern receipt, verification and return of licences, and separate procedures apply for post export and pre export (redeemed) licences.

Delegation of financial authority for routine IT expenditure enables departmental procurement, AMCs, training, and local software development.
Heads of Departments under the Central Board of Excise and Customs are authorised to incur limited annual expenditure for site preparation and maintenance of computer sites, training in prescribed computer courses, procurement of personal computers and related items, and local software development, subject to sanctioned budget, compliance with the Delegation of Financial Powers Rules and General Financial Rules, notification to the Directorate of Systems, and referral to the Ministry through Commissioner (Systems) for proposals exceeding delegated ceilings.

Procurement certificate issuance simplified: Superintendents and Range Officers may issue certificates to textile and chemical export units subject to safeguards.
Procurement certificates for import clearance in textile and chemical export units will be issued by Superintendents and CT-3 certificates by Range Officers, subject to a clean track record. Assistant Commissioners/Deputy Commissioners may delegate issuance powers, refer doubtful cases to Commissioners, and require post-facto approval for Range Officer-issued certificates. Existing safeguards and prior monitoring instructions remain applicable and the earlier circular is modified accordingly.

Permission for job work by export units requires application, sample retention, identity verification, and bank guarantees to protect duty interests.
EOUs and EPZ/STP/EHTP/SEZ units require application to the jurisdictional Assistant/Deputy Commissioner with details of the job-worker, processing activities, and justification; permission for job-work may be granted normally for one year and shall not be refused solely because the job-worker lacks Central Excise registration. Safeguards include sample retention and identity verification on return, bank guarantees to cover duty forgone for raw removals and partial guarantees for semi-processed removals with exemptions for status holders of good record, mandatory return within thirty days subject to limited extensions, and expeditious verification of job-worker premises by authorities.

Duty-free import entitlement for footwear embellishments clarified to cover shoe uppers and parts when notification conditions satisfied.
Duty free import of embellishment items listed in Sr. No. 167A of Customs Notification No. 21/2002, as amended, extends to shoe uppers and other parts of leather footwear exported by the leather footwear sub sector when such items are imported for use in the export product and all other notification conditions are satisfied; a Public Notice and Standing Order are to be issued for guidance.

Export Promotion Scheme processing requires EDI registration of licences, bonds, and certificates before electronic Bills of Entry are accepted.
Bills of Entry claiming exemptions under Export Promotion Schemes and conditional notifications must be processed through the ICES(Imports) EDI system with prior registration of the pertinent import licence, Release Advice, bond, bank guarantee or required certificates. The system maintains ledgers for licence face value and item-wise quantities, automatically debits bonds and licences upon electronic filing, rejects incomplete or inconsistent licence data, and enables assessing officers to verify originals, assess electronically, audit and approve entries; debits reverse automatically if notification benefits are denied.

Present market value determination governs DEPB credit and market checks must be limited, focused, and expeditious.
Present market value is to be used for DEPB credit when declared FOB exceeds present market value; market verification is limited to suspect cases (including sub standard goods and sensitive destinations), must be conducted expeditiously to avoid trade harassment or export delays, and public notices and standing orders should be issued to guide staff and inform trade.

EPCG scheme eligibility expanded to permit service providers to import consumer items where valid licences exist.
Service providers who require consumer items like carpets, crockery, marble and chandeliers shall be allowed EPCG benefit; the rider excluding such items is deemed deleted. Where DGFT has issued valid EPCG licences covering these items, Customs shall permit import under EPCG. Standing Orders and Trade/Public Notices are to be issued for field guidance and receipt of this Circular acknowledged.