Restriction on agricultural and dairy imports bars duty free entry of all agriculture derived products under DFCEC schemes to protect domestic sector.
The DFCEC Schemes exclude all agriculture and dairy products from duty free import by Status Holders and specified Service Providers; this prohibition covers any product derived from agriculture/dairy origin, including crude edible oil, because allowing such imports would circumvent tariff protections created to safeguard the domestic agriculture and dairy sectors. Customs field formations are to be guided by Public Notices and Standing Orders to enforce this restriction.

Duty drawback rate revision mandates updated drawback table and EDI records following customs and excise duty changes.
Revision of the All Industry Rates of duty drawback was effected by amending Notification No.26/2003 Customs (N.T.) to reflect changes in customs and central excise duties; the revised rates were notified via Customs Notification (N.T.) No.12/2004 and are effective from 9 February 2004. The circular directs immediate updating of the EDI Directory and the DAT drive to incorporate the new drawback rates.

Debonding permission for EOU units may be granted despite pending show cause notices when adequate safeguards protect revenue.
EOU/EHTP/STP units should not be denied debonding solely because show cause notices or demands are pending; authorities may permit debonding after obtaining an undertaking (on stamp paper) that assets will not be disposed until adjudication and payment, and a supporting bank guarantee, while ensuring duty on non duty paid raw materials, capital goods and finished goods is discharged before debonding; recovery of confirmed dues may proceed after conversion to DTA.

Disposal of unclaimed cargo: custodian-led auction process proceeds after customs clearance checks, with reserve price by approved valuers.
Custodians may initiate time bound disposal of unclaimed cargo after notifying consignees and forwarding lists to Customs; absent Customs objections within the notice period, custodians proceed. Disposal responsibility lies with the custodian, which fixes the reserve price through a panel of approved valuers; Customs may provide an appraiser on request. Auctions must be publicly advertised; unsold goods at the first auction are re offered by sealed tender or e auction and sold to the highest bidder. Bids are cum duty with duty back calculated; custodians file consolidated Bills of Entry for duty assessment and goods release occurs after duty payment.

Duty-free import eligibility: existing trading units may continue under EOU until expiry of their permission, subject to verification.
Amendments restrict new trading units under EOU/EHTP/STP and permit existing trading units with a valid Letter of Permission prior to the policy change to continue duty free procurement or import only until their LOP expiry; no LOP extensions are allowed, concessions are limited to terms at LOP issuance, CT-3/procurement certificates require verification of pre-existing status and valid LOP, and the amendments have no retrospective effect.

Correction of drug name: concessional customs duty entitlement remains unaffected and pending cases should be disposed accordingly.
Correction of the drug name in an amending customs notification corrects the orthographic error to Disopyramide Phosphate and clarifies that the amendment is purely a spelling correction; entitlement to concessional customs duty remains unaffected and pending cases are to be disposed of accordingly.

Conversion of shipping bills restricted; post export scheme switches allowed only where denial occurred and strict conditions are satisfied.
Conversion of free shipping bills into Advance Licence/DEPB/DFRC shipping bills is not permitted because exporters under the self assessment/on line system must decide incentives at filing; conversion of free shipping bills into drawback shipping bills need not be allowed generally, but the Commissioner may, under the proviso to Rule 12(1)(a), consider individual requests for All Industry Rate drawback on merits; conversion between export promotion schemes may be permitted only where claimed benefit was denied and specified documentary, timing and non fraud conditions are met.

Duty drawback rates revised for knitwears; field formations must apply rates from original effective date and update systems.
Revision of duty drawback rates for knitwears and knitted garments under Notification No.77/2003-Customs(N.T.) requires field formations to apply the enhanced rates from the original effective date, update EDI directories to reflect the revision, and stop requiring exporters to file supplementary drawback claims; Board instructions should be issued urgently to redress exporter grievances and ensure consistent implementation.

Duty drawback admissibility to DTA supplies to SEZs: payment permitted only once Chapter XA is notified.
Payment of duty drawback on supplies from DTA units to SEZ units is not currently admissible because Chapter XA of the Customs Act, 1962 has not been notified; consequently the amendment treating such supplies as physical exports and Circular No.24/2003-Customs will become operative only when Chapter XA is brought into force. Public notices and standing orders should be issued and receipt of the Circular acknowledged.

Duty classification for removals by full EOU units now governed by proviso to Section 3(1) before debonding.
All goods manufactured by a 100% EOU and cleared into the DTA before final debonding are chargeable to duty under the proviso to Section 3(1) of the Central Excise Act, 1944; goods of 100% EOUs cannot be assessed under the main section 3(1). The Board has withdrawn its earlier circular of 13-2-2002, accepts the Tribunal's larger bench decision, directs payment of duty on finished goods and appropriate duty on bonded capital goods and raw materials before debonding, and requires publicity and reporting of implementation difficulties.