Broad nexus requirement: TPS imports must be bona fide inputs used in the manufacture of exported products.
Items imported under the Target Plus Scheme are permitted only if they are inputs required for the manufacture of the exported product and for the own use of the exporter or supporting manufacturer; a product-group broad nexus is required. SION entries are prima facie evidence of inputs, certificates and imported goods are non-transferable, and authorities may require exporters to demonstrate the nexus to the exported product.

Transfer pricing coordination mandated between tax and customs to enable case-level information exchange and joint meetings.
Implementation requires formalised cooperation on transfer pricing via a two-tier structure: bi-monthly regional meetings at four metros with minutes to Director General (International Taxation) and Director General (Valuation), and six-monthly central meetings among senior directors and Chief Commissioners with escalation to Board level when required. Case-specific information exchange on a need-to-know basis is to be coordinated by designated nodal officers in each metro. National training academies will develop joint training and seminar-workshop programmes to familiarise Customs and Income Tax officers with respective transfer pricing and customs valuation treatments.

Re-warehousing waiver for eligible export-oriented units; procedural self-warehousing permitted subject to verification and recordkeeping and random inspections.
Eligible EOU/EHTP/STP/BTP units with prescribed prior year export turnover and a clean track record may self warehouse imported or indigenously procured duty free goods without prior physical verification by the officer. The authorised unit representative must verify particulars against ARE 3/invoice or bill of entry, make entries in the warehousing register, endorse and dispatch prescribed copies to the Superintendent in charge within one working day, and use the prescribed Certificate of Warehousing. Discrepancies must be reported immediately and suspend self warehousing; supervisory countersignature, retention of records and random consignment verifications are mandated.

Centralised processing of stuffing permissions institutes a dedicated cell to handle and monitor export container stuffing approvals.
Permission requests for stuffing export containers at factory premises and private bonded warehouses, and for assembling machinery inside port premises, are to be centralised at the Custom House. A newly created Factory Stuffing Permission Cell (FSP Cell) will receive, process, monitor and review all such applications. Trade participants are asked to report any difficulties to the department.

Bank guarantee requirement for bonded warehouses reaffirmed to ensure uniform customs security and safeguard duty liabilities.
The circular mandates uniform compliance with earlier procedures requiring a security by cash deposit or bank guarantee for goods classified as sensitive in both Private Bonded Warehouses and privately owned Public Bonded Warehouses, affirms that non-sensitive goods are to be secured by double-duty bond with surety, preserves commissioner discretion to demand guarantees where bonder transactions are doubtful, and instructs field formations to notify trade and acknowledge receipt.

Classification of mobile phones as telephony devices confirms smartphones categorised under telephones when principal function is wireless transmission.
Devices that operate as wireless transmission and reception apparatus with transceivers, antenna, microphone, speaker, battery, radio-frequency and baseband chips, SIM/unique identity and radio-frequency transmission software are to be classed as telephones for cellular or other wireless networks when their primary purpose is telephony; ancillary PDA, camera, GPS or data-processing features do not alter that classification, whereas devices operating exclusively as satellite navigation receivers or machines whose principal function is ADP are classed under radio navigational or ADP headings respectively.

Transhipment procedures: sealed container handling and mandatory IGM/ITSA/ETSA documentation secure two way shipments through Chennai.
Procedure for two way transhipment through Chennai prescribes that the custodian must provide secure customs demarcated storage, maintain vessel wise records, be liable for pilferage, and notify customs of tampered seals. Steamer agents must ensure one time bottle seals at load ports, file IGMs with port wise transhipment annexures, execute a transhipment bond, submit ITSA/ETSA in quadruplicate before each transhipment, obtain destination acknowledgements, and ensure timely re export of empty containers. Customs may order 100% examination of tampered containers and require expedition or apply the procedure for goods not transhipped within the prescribed period.

Capital goods classification clarified: annexure items may qualify for inter unit transfer when used as capital goods.
Items listed in annexures to notification No. 52/2003 Cus that are not in Sl. No. 1 may nonetheless be treated as capital goods for inter unit transfer between EOU/STP/EHTP units if, in a particular case, their use qualifies them as capital goods (e.g., overhead cranes, jigs and fixtures, moulds). This use based qualification also applies to other annexures of the notification and to annexures to notification No. 22/2003 C.E.; Trade/Public Notice publicity and reporting of implementation difficulties to the Directorate General of Export Promotion were directed.

Electronic transmission of DEPB licences now replaces manual verification; DEPB number must be quoted on the bill of entry.
DEPB licences issued by DGFT on or after the effective date will be received online by Customs at ICD Bangalore and subjected to prescribed online validation checks; validated DEPBs will be available for use and listed on the portal. Temporarily, importers must present hard copies of DEPBs to the designated officer prior to utilisation. For online DEPBs the DEPB number must be quoted on the bill of entry for duty payment, while DEPBs issued earlier continue under the existing manual verification procedure.

Definition of place of import proposed as where goods reach Indian land mass or where they are consumed before arrival.
Proposes defining the Place of Import as the location where imported goods reach the land mass of India, or, if consumed before reaching the land mass, the place of consumption, to address the absence of a definition in the proposed New Section of the Customs Act and reduce future disputes.

E-payment of customs duties enables electronic payment and automatic registration for customs examination via ICEGATE gateway.
Electronic payment of customs duties at ACC Bangalore is enabled through the Customs E-Payment Gateway on ICEGATE: registered users view unpaid challans on ICEGATE while unregistered users may retrieve challans via importer IE Code, select a designated bank, complete internet banking payment, obtain a cyber receipt, and return to ICEGATE to finalise; ICES receives payment particulars and automatically advances the Bill of Entry to examination without physical proof of payment. A VERIFY option allows completion of interrupted transactions on the date of payment.

E-Payment of Customs Duties enables electronic settlement, automatic ICES update and registration for import consignments via ICEGATE gateway.
An optional e-payment facility via the Customs E-Payment Gateway (CEG) on ICEGATE allows registered or unregistered users to view unpaid TR-6 challans, select a challan, choose an authorized bank, authenticate on the bank's internet portal, complete payment and obtain a cyber receipt. After payment, ICEGATE transmits payment particulars to ICES, which automatically advances the Bill of Entry to the examination queue. Incomplete transactions can be resolved by a same-day VERIFY option; physical proof of payment need not be produced for clearance though cyber receipts should be retained.

E-Payment of Customs Duties: online challan payment via ICEGATE moves bills to examination without physical payment proof.
Procedure enables online payment of customs duties at Chennai Air Cargo via the Customs E-Payment Gateway (CEG) at ICEGATE and authorised designated banks. Registered ICEGATE users see unpaid challans on their account; unregistered users may access challans by importer IE Code. Users select a challan, choose an authorised bank, authenticate as an Internet banking customer, complete payment, obtain a cyber receipt, and return to ICEGATE to finalise the transaction. ICEGATE/CEG transmits payment particulars to ICES, after which the Bill of Entry moves to the examination queue and no physical proof of payment need be produced for clearance.

Quarantine referral requirement: all livestock imports must await explicit quarantine clearance before Customs release.
All consignments of livestock and livestock products must be referred to Quarantine Authorities and shall not be cleared by Customs without a no-objection from those authorities; consignments must be kept in a separately identified location until final quarantine clearance, and any detection of Avian Influenza must be immediately reported to the Board, with strict compliance and acknowledgement of these instructions required.

SVB bond procedure modified: continuity bonds registered at SVC and debited physically and on EDI for import consignments.
Procedure centralises SVB bond execution at the Special Valuation Cell: importers submit a Continuity Bond to SVC for acceptance and registration; bonds are entered in a Bond Register, debited physically against the hard copy Bill of Entry with an endorsement, and also registered and debited on EDI. Groups provisionally assess Bills of Entry and record revenue deposit details in comments. SVC sends a monthly summary of debited bonds with Bill of Entry details to SVB; the same steps apply to subsequent consignments.

Electronic verification of DEPB licences enables online use of DEPBs for duty payment with DEPB number quotation required.
Electronic transmission and online validation of DEPB licences between Customs EDI and DGFT at Tuticorin will replace physical verification: DEPBs received online will undergo prescribed validation checks and be available via the ICEGATE portal for use. Temporarily, importers must present hard copies of DGFT-issued DEPBs to the designated Assistant/Deputy Commissioner (DEPB) before utilisation. For online DEPBs used for duty payment, the DEPB number must be quoted on the bill of entry instead of the registration number. The new procedure applies to DEPBs issued on or after the implementation date, while earlier DEPBs follow prior procedures.

Vessel port clearance: security deposit waived when Section 42 conditions are met; otherwise shipping line/agent must provide a bond.
The practice of taking fixed revenue security deposits from vessels for port clearance is dispensed with where the conditions of Section 42 of the Customs Act, 1962 are complied with prior to departure; if required documents are not produced, the shipping line/agent must submit a prescribed bond securing production of documents and payment of any fines, penalties or dues, with the Assistant/Deputy Commissioner responsible for acceptance, recordkeeping, monitoring and closure of such bonds.

Customs valuation hierarchy: transaction value first, with defined adjustments and fallback deductive or computed methods.
Customs valuation is determined by a prescribed hierarchy: transaction value first, then transaction value of identical or similar goods, deductive value, computed value, and a residual method. Key definitions and related-party criteria are provided. The transaction value must be adjusted for specified additions (commissions, packing, buyer-supplied elements, royalties, proceeds to seller) and delivery costs to place of importation; objective, quantifiable data are required. Importers must furnish declarations and documents; proper officers may reject values on reasonable doubt and follow procedural safeguards. Interpretative notes elaborate apportionment and application principles.

Customs valuation: transaction value first, then comparison, computed and residual methods determine export value.
Valuation of export goods follows a sequential framework: the transaction value is preferred where a sale is under fully competitive conditions. Failing that, valuation proceeds by comparison with goods of like kind and quality (with specified adjustments), then by a computed value aggregating material, processing, brand/fashion value, profit and export-related costs, and finally by a residual method using relevant materials and reasonable means, subject to an arm's-length upper limit. The proper officer may reject declared values when reasonable doubt exists, request further evidence and afford the exporter a hearing.

Administrative control over large taxpayer EOUs shifted to large taxpayer units, with Commissioners retaining on-site function duties.
Administrative control of Export Oriented Units qualifying as large taxpayers is to be transferred to Large Taxpayer Units, with EOUs migrating from local Commissioners of Central Excise or Customs to LTU oversight. Functions requiring officers' physical presence, including warehousing and sealing, will be performed by the Commissioner of Customs or Central Excise who retains concurrent jurisdiction. Board Circular No. 31/2003-Customs is amended accordingly, and Public Notices should be issued; implementation difficulties are to be reported to the Directorate General of Export Promotion.