Import of currency by post permitted without prior central bank clearance subject to supervisory conditions and recordkeeping.
Customs may clear Indian and foreign currency received by residents through post without requiring an RBI No Objection Certificate where the value does not exceed Rs. 5000/-, subject to approval by the Deputy/Assistant Commissioner of Customs and conditions that senior-level approval be exercised, detailed exemption records be maintained, remitter and addressee particulars be recorded, and spikes in volume be reported to the relevant regional office.

Excise and customs rate rationalization expands indirect tax base and extends service tax to numerous new services.
The Finance Bill, 2002 proposes comprehensive indirect tax reforms: consolidation and adjustment of excise duty rates with revised exemptions and textile-specific measures; restructured petroleum excise components and regional refinery concessions; customs tariff reductions and selective rate increases with revised concession limits; expanded scope of service tax to specified new services and corporate providers of financial services; enhanced administrative powers to clarify exemptions and revised appellate and review timelines; and mandatory price-data reporting to assess price and revenue impact.

Custodian liability for import/export cargo established; custodian must comply with statutory duties and pay duty for pilfered goods.
Appointment designates a government container operator as the custodian of imported and export cargo at the ICD, Jamshedpur, responsible for custody until clearance, warehousing, or onward shipment and for performing stuffing, accountal, customs examination facilitation, transportation and safe delivery of customs-sealed containers; the custodian must comply with statutory duties and, if goods are pilfered or lost while in custody, is liable to pay duty assessed as of the date of delivery of the import manifest or report; the appointment is for a fixed term subject to review and may be terminated after reasons and opportunity to be heard.

Coastal carriage permits Indian foreign going vessels to carry coastal containers between Indian ports under prescribed customs procedures.
Indian flag foreign going vessels calling at multiple Indian ports may carry coastal containers between Indian ports on the same voyage subject to Customs Act requirements. Consignors must submit a Bill of Coastal Goods, containers must be marked and sealed, a Coastal Manifest prepared for each coastal port, and a bond executed before loading. Customs must record entries in the Advice Book, verify unloading and intact seals before departure, reconcile manifests at the last Indian port, and follow adjudication procedures for tampering or discrepancies.

Classification of polyester woven fabrics: misclassification to obtain concessional duty triggers customs monitoring and duty re-assessment.
Customs reported mis-declaration of polyester woven fabrics being classified under 5407.61 notwithstanding representative tests showing non-textured polyester filament content below the required threshold for that entry; this misclassification was used to claim concessional duty. Customs houses are instructed to monitor such imports, verify composition by sampling and testing, and ensure correct classification and duty charging to prevent evasion.

Custodian security exemption for Central and State PSUs allows appointment on execution of bond instead of bank guarantee.
Central and State Public Sector Undertakings appointed as custodians of EPZs, ICDs and CFSs are exempt from the requirement to furnish bank guarantees or other prescribed security; they may be appointed on execution of a bond equal to the value of goods likely to be stored for a period of 30 days.

Return of customs deposits simplified: written request plus attested appellate order and TR-6 challan suffices for refund processing.
Claimants depositing security under Section 129E may obtain return of deposits by submitting a simple written request to the concerned Assistant/Deputy Commissioner of Customs, together with an attested copy of the appellate or CEGAT order showing entitlement and the original TR-6 challan evidencing payment; pending formal refund applications will be treated and processed as such, and bank guarantees executed in lieu of cash deposits shall also be returned.

Referral authority for classification: only Commissioners or Chief Commissioners may seek Board clarification; field must decide cases promptly.
Classification and interpretation of drawback entries must be resolved by field adjudicating officers, who should pass appealable speaking orders; only Commissioners or Chief Commissioners may refer substantial matters to the Board. Junior officers must not send classification queries or sealed samples directly to the Board. Field formations must dispose of exporter queries locally, issue standing orders for staff and trade guidance, and view unauthorized deviations seriously with potential disciplinary action.

Drawback rate application: distinct garment tariff entries attract separate drawback rates; do not aggregate into a single set rate.
Field formations must apply the specific drawback rates and caps in the current Drawback Table for Chapter 62 ready-made garments; the prior practice treating multiple garments as a single Set stemmed from a previous, generic Table and is not applicable where the 2001-2002 Table provides individual entries. SS Nos.62.09 and 62.10 apply only to items not specifically listed in SS Nos.62.01-62.08. Issue public notice and standing orders to ensure staff and trade apply individual rates and caps rather than aggregating distinct entries.

Classification of Uninterrupted Power Supply Systems: provisional clearance under heading 85.04 allowed with simple bond, no bank guarantee required.
Pending final adjudication on conflicting tribunal views, UPSS are to be provisionally assessed and cleared under heading 85.04 on the basis of a simple bond, without taking a bank guarantee for the differential duty between the previously applied heading and heading 85.04.

Export documentation registration option allows pre-filing Annexure-C/C1 at service centre and preserves amendment at goods registration.
Exporters and CHAs may pre-file Annexure-C/C1 particulars at the Service Centre with Annexure-A/B so the printed checklist will include complete Annexure-A/B and C/C1 information for verification before shipping bill submission. If not pre-filed, Annexure-C/C1 can still be filed at goods registration. Amendments to Annexure-C/C1 entered at the Service Centre remain permissible at goods registration. The ICES-Export software has been updated to enable this facility and implementation issues should be reported to the System Manager/DC (EDI).

Bank guarantee exemption for government carriers; custodians may use amended guarantees covering cargo safety to transship.
The notice exempts Central and State Government undertakings from the bank guarantee requirement for transhipment. Custodians of ICDs/CFSs acting as carriers must amend their existing custodianship bank guarantees to include transhipment safety and security obligations and inform the Commissioner; once amended, no separate bank guarantee for transhipment is required. Other carriers must continue to provide a 15% bank guarantee of bond value. The earlier public notice is amended accordingly.

Import sanitary permit requirement for passenger pets: permit or authorized import licence and quarantine clearance required at entry.
Passengers importing bona fide pet animals may be admitted only against an import sanitary permit issued by the Department of Animal Husbandry & Dairying or an import licence issued by the licensing authority, and only after obtaining clearance from Animal Quarantine authorities; customs field formations must enforce these requirements.

Classification of leather sandals: open-type footwear may qualify for higher drawback rates when assessed on totality of features and proof.
Admissibility of higher drawback rates for leather sandals depends on classification as Leather Sandals. A sandal is open-type footwear with an upper not covering the entire foot, composed of components such as straps or vamps, and a bottom assembly comprising insole, sole and an in-built or attached heel of minimum thickness of 10 mm; a sandal may lack a back strap. Sandals employ higher-duty inputs and greater finishing, so drawback rates and caps are higher; officers must assess goods in totality and consider documentary proof and product catalogues.

Bond Management System centralizes bond registration and requires bond/BG debits before customs goods registration and release.
A centralized Bond Management System in the Customs EDI System will register and maintain bonds, bank guarantees and sureties, record debits/credits for electronic and manual Bills of Entry, and generate a single running bond registration number printed on assessed B/Es. The system enforces bond/BG validation and prevents goods registration or release unless bond/BG debits are completed; Appraising Officers specify bond type and amount with AC confirmation, and detailed procedures govern warehousing, provisional assessments, high seas sales valuation, EOU registration and job-work exemptions.

Inter-unit transfer of goods permitted to SEZ units under policy, allowing EOUs/EPZ/STP/EHTP to transfer or lend goods to SEZs.
Policy provisions permit EOU/EPZ/STP/EHTP units to transfer, lend or lease goods imported/procured duty free and to transfer manufactured or processed goods to SEZ units; these transfers should be allowed administratively pending formal amendment of the notifications governing the EOU/EPZ/STP/EHTP schemes, and wide publicity by public notice is to be issued with reports of implementation difficulties to the Board.

Return of pre-deposits: simplified repayment procedure requires a letter, appellate order copy and TR 6 challan for refund.
Pre-deposits payable back after successful appeal or remand are to be returned as amounts other than duty. Refund applications under refund provisions need not be insisted upon; a depositor's letter plus an attested copy of the appellate order and an attested copy of the TR 6 challan suffices. Pending refund claims will be treated likewise, and bank guarantees given instead of cash deposits shall be returned. Authorities must process and settle claims promptly; deviations exposing the department to interest on delayed refunds will be viewed strictly.

Examination norms for export goods revised: scaled inspections by export category, sealing mandates, anti splitting and intelligence based full checks.
Revision prescribes differentiated scales of physical inspection by export category and destination sensitivity. Factory stuffed and sealed consignments and Free Shipping Bills are generally exempt unless seals are tampered or specific intelligence exists. Drawback/DEPB and EPCG/DEEC consignments to sensitive destinations face higher inspection rates; others have lower routine checks. Selected consignments require opening of a minimum of two packages with system selected package numbers; systems will flag same day or same buyer multiple shipments to prevent splitting. Amendments to critical shipment parameters after registration trigger examination. Specific intelligence permits full examination. Sealing standards and an examination report (Annexure C1) are mandated.

Customs overtime: cease charging overtime fees for gate cargo supervision after prescribing continuous 24/7 working.
The Board directs that supervision of cargo movement at dock gates be prescribed as continuous 24 hours a day, 7 days a week, 365 days a year work by Commissioners under the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998, and that no overtime fee be levied for such gate supervision; Commissioners must issue Public Notices/Standing Orders and report implementation difficulties to the Board.

Extension of challenge period for Present Market Value permits issuing show cause notices beyond the standard time where fraud or suppression is found.
Where investigations disclose fraud or willful suppression of facts, show cause notices challenging the Present Market Value (PMV) under the DEPB scheme may be issued beyond the ordinarily prescribed time limit; internal instructions or standing orders should be issued to guide trade and field staff and receipt of the Circular acknowledged.