Drawback rates revised and effective from 1.6.2000; administrative monitoring and publicity required for exporters and customs offices.
New All Industry Drawback Rates effective 1.6.2000 replace the prior table, expanding coverage with nine new entries, increasing rates for 141 entries, maintaining 406 entries, reducing rates for 270 entries, deleting eighteen entries, imposing maximum drawback caps on 141 entries, converting certain ad valorem rates to specific rates, creating a new entry distinguishing undyed madeups, harmonising with Customs Tariff headings, and instituting administrative facilitation for Handloom and Cottage Sector exporters and enhanced monitoring and publicity requirements for Commissioners.

DEPB credit for spices in gunny bags may be inadmissible until SION is amended or clarified by DGFT.
DEPB credit for spices packed in gunny/jute bags is not admissible because SION E-43 for food products specifies permitted packing materials (LDPE/HDPE/PP granules, paper board, craft paper) and does not include gunny; shipping bills should be assessed provisionally and credit may be allowed only after DGFT amends the SION or issues a clarifying notification permitting gunny packing.

Special Economic Zone treatment as foreign territory makes DTA-to-SEZ supplies deemed exports and SEZ-to-DTA sales treated as imports.
SEZs are treated as foreign territory for duties and taxes: DTA-to-SEZ supplies are deemed exports, SEZ-to-DTA supplies are treated as imports. Units may import duty-free for manufacture and related activities, subject to prohibited goods; simplified documentary assessment and self-certification apply, with customs examination only on specific intelligence. Temporary removals, sub-contracting and inter-unit transfers can be permitted on bond with return or export accounting obligations; non-compliance attracts duty liability. Special rules govern gem and jewellery, valuation for DTA clearances follows customs valuation rules, and units must maintain and submit specific accounts and statements.

Duty foregone calculation: B-17 bond debit limited to a proportion of capital goods duty rather than the full amount.
Where capital goods are freshly imported or locally procured under the B-17 bond regime, only 25% of the duty foregone shown in the Bill of Entry/AR-3 shall be debited against the bond rather than the entire duty-foregone amount, thereby modifying the earlier circular; Public Notice to be issued and implementation difficulties may be reported to the Board.

Trading activity expansion permits duty-free import/procurement for export under NFEP and prescribed export performance.
Amendments to Exim Policy and HOP revise entitlements for EOU/EPZ/STP/EHTP units: a new activity, trading, permits duty-free import/procurement for export subject to positive NFEP and export performance; leasing rules permit indigenous capital goods sourcing without duty; central software facilities may be accessed by DTA units for export; DTA sale, replacement, destruction and disposal rules are clarified; additional capital and infrastructure items and accessories are included for duty-free import; sectoral concessions extend to STP Call Centre Services, captive DG sets, granite quarrying equipment, and HSD for certain EOUs, with related notifications amended accordingly.

Graduation requirement for CHA regulation exam clarified: limited retrospective application, prior examinees and temporary licensees exempt.
The Circular clarifies that the graduation requirement for the CHA regulatory examination applies to persons sponsored by regular CHAs, but will not be enforced retrospectively against sponsored candidates who had already appeared; temporary licence holders who had already sat for the examinations and whose results were withheld will not be required to produce graduation to be considered for permanent licence, subject to other prescribed conditions.

Transshipment security requirement: carriers must provide proportionate bond security; per voyage security based on average cargo value.
Transshipment of import/export cargo through gateway ports requires carriers to furnish security equal to 25 percent of the bond value; if security is furnished per voyage, it must equal 25 percent of the average value of cargo carried on that trip. Administrative instructions mandate notifying trade and departmental officers by suitable notices or standing orders, and reporting any implementation difficulties to the Board.

Finalisation of provisional assessment for liquid bulk cargo requires ullage survey-based quantification and similar cases to be closed.
Finalisation of provisional assessment of imported liquid bulk cargo is to be effected by final quantification based on an ullage survey conducted on board the vessel in the presence of Customs officers, the importer's representative and the vessel's master; similar provisional assessments at other Customs Houses are to be decided on the same basis and details of pending cases furnished to the Board.

Duty exemption for intravenous amino acid mixtures excluded because constituent nutrients are available separately and can be combined per need.
Customs duty exemption will not apply to intravenous amino acid preparations containing carbohydrates and electrolytes because the constituent amino acids (including essential amino acids), glucose and electrolytes are available separately and can be combined and administered according to patient requirements; field formations are to follow this position and report implementation difficulties.

Freight declaration requirement: exporters must declare actual freight on shipping bills; misdeclaration triggers recovery and penalties.
Exporters must declare the actual freight paid or payable on the shipping bill or at presentation; if actual freight cannot be ascertained, a provisional declaration based on the published freight schedule is permitted, but exporters must review shipments and promptly repay any excess drawback or incentives obtained due to understatement. Misdeclaration causing revenue loss will be processed under the Customs Act, and customs will undertake verification and take action against noncompliance; supplementary claims are barred where actual freight is less than declared.

Warehousing interest slab basis clarified: benefit of lower slab rates applies across warehousing periods for goods.
The circular clarifies that interest on goods under the customs warehousing provision is to be charged on a slab basis, applying the graded scale period-wise so that lower rates apply to earlier periods of warehousing and higher rates only to later periods, rather than a single rate at the date of clearance.

Drawback entitlement under DFRC scheme clarified: filing of DFRC-cum-Drawback Shipping Bill required and rates explained.
Exporters under the DFRC scheme may claim drawback at the All Industry Rate equivalent to the central excise duty on inputs cleared on payment of CVD provided no cenvat has been availed, or may opt for the brand rate; brand rate also applies to materials not imported under DFRC. Exporters seeking drawback under DFRC must file a DFRC-cum-Drawback Shipping Bill and field formations should issue guidance and forward copies to the Joint Secretary (Drawback).

Passengers' baggage screening: cease routine checks in Green Channel; use intelligence-led profiling for targeted inspections.
The Ministry directs that routine baggage screening of large percentages of passengers using the Green Channel Facility should cease; field formations must adopt intelligence-led surveillance and passenger profiling so only suspect passengers and frequent short-visit passengers are diverted from the Green Channel for targeted baggage inspection, and must report actions taken to the Board.

Duty free import conditions for gem and jewellery: procedural, guarantee and accounting requirements securing export linked exemptions.
Clarifies revised EXIM Policy/HOP provisions for duty free import and export of gem and jewellery, permitting personal carriage via specified airports with appraisal facilities, extending advance import/import of semi finished jewellery to status holders and nominated agencies subject to value addition and wastage norms, requiring exporters to furnish bank guarantees enforceable on default and mandating monitoring by Customs, revising wastage and NFEP norms for studded items and medallions, authorising limited DTA sale of unsuitable/broken stones on payment of higher duties, expanding consumables import under replenishment licences, and adding consignment wise accounting obligations.

Reduced-duty EPCG scheme permits concessional capital-goods imports with long-term export obligations and BG exemptions.
The reduced-duty EPCG scheme allows concessional import of capital goods with an export obligation payable over eight years, exempts CVD, limits eligible imports to equipment necessary for manufacturing or service provision, permits relocation of imported machinery to endorsed vendors, contract farmers or service providers, and extends existing bank guarantee exemptions for status holders and partial exemptions for other exporters consistent with prior circulars.

CVD on reprocessed plastic imports: DTA clearances by EOUs/EPZ must carry excise equal to import CVD.
Levy of CVD applies to DTA clearances of reprocessed plastic granules by EOU/EPZ units because the excise exemptions require reprocessing to be done in India; imported reprocessed plastics therefore do not attract the exemption and equivalent excise duty (CVD) must be charged, with Customs to review clearances and recover any short levy.

Drawback arrear clearance month directs expedited finalisation of pending drawback claims and reporting to the Board.
The period from 15th May, 2000 to 14th June, 2000 is to be observed as Drawback Arrear Clearance Month at all Customs locations; all pending drawback claims and related issues must be finalised expeditiously to avoid statutory interest, including disposal of cases needing reconstruction of old files, and a report quantifying disposed claims, amounts disbursed and pending claims must be sent to the Board by 23rd June, 2000.

Classification of imported garments: only completely mutilated rags cleared without licence; post import mutilation prohibited, penalties deterrent.
Garments that are only old or used but serviceable after repair must be classified under CTH 63.09, while only totally unserviceable garments beyond repair qualify as rags under CTH 63.10. Completely mutilated rags are to be ensured by applying the criterion of three or more cuts through the entire length of the garment in a crisscross manner, not along the seams. Clearance without licence is allowed only for garments imported already completely mutilated; post import mutilation for meeting import conditions is prohibited. Fines must eliminate margin of profit and deter repeated misclassification.

SLP filing responsibilities clarified: allocate customs offence SLPs to anti-smuggling unit and tribunal-related appeals to judicial directorate.
Directs allocation of responsibility for filing Special Leave Petitions (SLP) in customs matters to specific CBEC cells to avoid delay: offence cases under the Customs Act (search, seizure, arrest, prosecution) to the Anti Smuggling Unit/DS (AS); tribunal-origin cases to the judicial directorate; and all other customs cases to DS/US (CUS) or CUS-VI. An enclosed letter requests immediate filing of an SLP against a High Court order affecting appeal powers on sentence enhancement.

Transhipment carriage rules allow domestic containers on coastal vessels with sealing and separate manifests, subject to bond arrangements.
Carriage of transhipment and domestic containers on coastal vessels is permitted with sealing at loading, marking domestic containers "FOR COASTAL CARRIAGE ONLY", and filing separate manifests. Security remains required: carriers may opt for an optional Mother Bond as a running bond maintained at the port of origin, while trip-specific bank guarantees may be furnished and will be released on submission of proof of safe landing at destination; individual trip bonds remain an alternative.