Tariff classification update: cardamom subheading retained with revised description, adjacent subcode deleted under trade rules.
The Director General of Foreign Trade amends Public Notice No.25 under paragraph 4.11 of the Export and Import Policy, 1997-2002 by revising EXIM code entries: 090830 02 is described as "Cardamoms small green" and 090830 03 is deleted, effecting an update to the trade classification schedule issued in the public interest.

Preferential sugar endorsement required for EU exports, with specified quota allocation and exclusions for jaggery and non designated exporters.
For preferential export to the EU, exporters must add an endorsement identifying the consignment as preferential sugar and referencing the common sugar code; this applies only to raw cane sugar and white cane sugar and excludes jaggery and consignments exported by parties other than the designated industry grading/inspection authority. The circular also places specified quantities of raw and white sugar from the 1998-99 free sale quota for preferential export quotas to the European Community, without changing existing GSP certification.

Classification of odhanies clarified as fabric or madeups; Passbook credit deadlines and ITC(HS) filing requirements updated.
Classification of odhanies is settled: unhemmed/unstitched odhanies are classifiable as fabric and hemmed/stitched odhanies as madeups for DEPB purposes. The deadline for grant of Passbook credit is extended to 30th September, 1999 and utilisation by debit extended to 31st December, 1999. Applicants must fill the ITC(HS) code in the prescribed application columns; incomplete applications will not be accepted, and counter assistance at DGFT offices is available to help mention the ITC(HS) code.

All industry rate of drawback misuse flagged; exporters must substantiate use of imported inputs before drawback admissibility.
Exporters are mis-declaring Cast Alloy Permanent Magnets to wrongfully claim the All Industry Rate of Drawback though such magnets, made primarily from imported cobalt, nickel and pure iron, are eligible only for Customs allocation under General Note 17. Commissioners must verify manufacture and export by sampling or evidence, determine admissibility after officer satisfaction, and report abuses to the Drawback Directorate.

Arrears Clearance Month extended; directive to finalise pending drawback claims expeditiously and submit telex reports of disposals.
The Board has extended Arrears Clearance Month to include July and directs all customs locations to expedite finalisation of pending drawback claims before the statutory interest deadline and to send telex reports to the Board showing numbers of cases disposed and amounts of drawback disbursed for the relevant months.

Deduction under section 80G: employer/DDO certificates permit employee claims for consolidated workplace donations to defence and forces funds.
Employees who donate to the National Defence Fund or specified Armed Forces welfare funds through consolidated employer remittances remain eligible for deduction under section 80G, provided the employer/DDO issues a certificate evidencing the individual employee's contribution; such employer/DDO certificates will be accepted where separate recipient certificates cannot be issued due to consolidated donations.

Numbered circulars publicized: field offices must distribute unaltered circulars to trade nationwide and staff.
Board requires that all operational instructions and clarifications for field formations be issued only as numbered circulars, with unnumbered matters of wider relevance referred back to the Board. Numbered circulars must be made public and circulated to staff and the Trade, while classified circulars remain excluded. Field formations must distribute copies to the Trade without changing the circular number or language to avoid local deviations.

Proof of export communication: Divisional offices must send certificates directly to Range Offices, easing exporter procedural burden.
All Central Excise officers must stamp documents they verify and sign with their full name to enable prompt cross verification; Divisional Offices that receive proof of export are responsible for immediately sending the certificate of proof of export to the Range Office, and Range Offices shall not insist that exporters procure written communication from the Divisional Office.

Deemed export benefits available for supplies to specified power projects as if World Bank financed; repayment required if loan fails.
Supply of goods to the Talcher II, Talcher II Transmission and Sasaram HVDC projects shall attract deemed export benefits as if financed by the World Bank, confirmed after consultation with the Ministry of Finance; if World Bank financing fails to materialize, the Power Grid Corporation must return the cash equivalent of deemed export benefits availed by suppliers.

Export licensing: specified nuclear-related materials allowed only against licence from Department of Atomic Energy for export control.
Appendix 8 is added to Schedule 2 of the ITC(HS) Classification, prescribing that specified nuclear- and atomic-related materials may be exported only against licence issued by the Department of Atomic Energy. The listed controlled items include uranium and its compounds and concentrates; thorium and its compounds and minerals; zirconium and related concentrates; beryllium and its compounds (with a stated exclusion); lithium and its compounds; deuterium; plutonium; neptunium; columbite and tantalite; titanium ores and concentrates; nuclear-grade graphite; and tritium and its compounds.

Export restriction on chrome ore requires licence for exports, except specified beneficiated ores and canalised categories.
The ITC HS classification for chrome ore (code 2610(a)) is amended to exclude beneficiated chrome ore fines/concentrates (average feed grade below 33% Cr2O3) and canalised categories in (b) and (c); the remaining chrome ore is classified as Restricted and export is permitted only under licence pursuant to powers under paragraph 4.11 of the Export & Import Policy 1997-2002.

Minimum capitalisation requirement imposed for non fund based financial advisory and consultancy activities, affecting foreign equity investment approvals.
Amends foreign equity investment norms for the Non Banking Financial Services sector to impose a minimum capitalisation requirement of US$ 0.5 million for non fund based advisory or consultancy activities, irrespective of foreign equity participation, and applies this requirement to investment advisory services, financial consultancy, credit reference agencies, credit rating agencies, forex broking and money changing business; other provisions of the earlier Press Notes remain applicable.

Foreign-held holding company permission to provide arm's-length support services to downstream subsidiaries and charge fees.
Foreign-held NBFC holding companies that had prior approval and have restructured into downstream joint ventures with domestic participation may render support and facilities to their downstream subsidiaries/JVs on an arm's length basis and may charge fees, provided a formal agreement is executed between the holding company and the downstream subsidiaries/JVs.

Publication of numbered circulars required to be circulated intact to staff and trade; classified circulars excluded.
The Board requires that all substantive instructions and clarifications be issued only as numbered circulars and, where relevant, referred back for numbering; numbered circulars must be made public and circulated intact to staff and the Trade via the Directorate of Publicity and Public Relations, while circulars classified confidential or above remain withheld. Field formations must not change the number or language when issuing copies to the Trade to prevent local deviations, with immediate effect.

Excisability of captive intermediate goods: non-marketable binders for particle board manufacture are not dutiable.
Where binders, resins or glues are produced solely for immediate, captive use in particle-board manufacture, have very short shelf life, cannot be stored or sold, and are non-marketable, they qualify as intermediate goods produced for captive consumption and are not liable to central excise duty despite being specified in the Tariff Schedule; pending disputes should be settled on this basis.

Permissible quantity tolerance allowed for packaged pan masala, chewing tobacco and gutkha for tariff determination.
For tariff value determination under the central excise notifications classifying retail packs by weight, an upward tolerance on declared net weight for packaged pan masala, chewing tobacco and gutkha filled by certified automatic machines is permitted; the Board allows a specified maximum error in excess of the declared net quantity for the listed retail package categories and applies the same tolerance to packages under the referenced earlier notification.

Duty-free computer installation permitted outside bonded premises for administrative offices, subject to accounting, disposal and intimation conditions.
EOU/EPZ/STP/EHTP units may install duty free personal computers in their registered or administrative offices outside the factory, subject to a numerical limit, accounting in unit records, disposal conditions applicable to other imported goods, and intimation with technical details to the Assistant Commissioner of Customs/Central Excise at removal and after installation.

Electronic filing and two-way e-mail communication to be enabled, temporary processing delays may occur during system conversion.
Conversion to a new integrated computer system may cause initial delays in application processing; exporters with serious problems may approach the concerned DDG/JDG for assistance. The office expects improved counter service and quicker processing within a month with enablement of two-way e-mail communication and electronic filing, and planned connectivity between DGFT offices and Customs to enhance facilitation and monitoring of trade transactions.

Bonded warehouse operations: mixing, sieving and assortment allowed for imported cut and polished gemstones with consignment restriction.
The Ministry of Commerce authorised mixing, sieving, assortment and cleaning of imported cut and polished diamonds and cut and polished coloured gemstones in private/public bonded warehouses under the Exim Policy, provided such activities are restricted to the individual consignment and mixing of different consignments for these purposes is prohibited; the permission is intended to enable exporters to meet the value addition norms, and field formations are to be instructed and report implementation problems to the Board.

Export licence requirement for sandalwood: exports allowed only under DGFT licence with procurement and verification conditions.
Exports of specified sandalwood items are allowed only against an Export License from the DGFT. Applications must follow the prescribed form and include an export order/irrevocable letter of credit, valid RCMC, I.E. Code, and Certificate(s) of Origin and Legal Procurement issued by the Principal Chief Conservator of Forests in the exporter's name, with stocks purchased directly at State Government auctions. Licences are subject to conditions including quantitative ceilings, minimum export price and size/weight limits, and require a certificate of physical verification of stock from designated wildlife or divisional/district forest officers.