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Circulars
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Procedure for Export of Certified Organic Products
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Organic certification requirement: export allowed only with accreditation under the national accreditation framework.
Export as an Organic Product is allowed only if produced, processed and packed under a valid Organic Certificate issued by a certifying agency accredited by the National Steering Committee for Organic Products (NSCOP) acting as the National Accreditation Body. Agencies previously accredited by APEDA, Spices Board, Coffee Board and Tea Board are deemed accredited by NSCOP and will be under its control for accreditation purposes. The National Programme for Organic Production (NPOP) is annexed and forms the regulatory framework for these procedures.
Defaulter status and status of applications on Reliance India mobile when mobile
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Defaulter status access via mobile SMS and WAP enables exporters to retrieve application and default records instantly.
Provision of mobile access allows exporters to obtain application status and defaulter status for DGFT filings via Reliance India Mobile SMS and RSURF WAP. SMS queries require specified message formats-DGFT plus party prefix and Key Number for application status, or IEC plus party prefix for defaulter status-sent to a dedicated short number to receive instant details. RSURF WAP users navigate RWorld to DGFT Mumbai, enter the party name prefix and Key Number or IEC, and select "Get Status" to display the information.
Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (First Amendment) Regulations, 2004
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Resident foreign currency accounts can receive life insurance proceeds in foreign currency credited to RFC or RFC(D) accounts.
Proceeds of life insurance claims, maturity payments or surrender values payable in foreign currency by an Indian insurer authorised to undertake life insurance business may be credited to the beneficiary's Resident Foreign Currency (RFC) Account or Resident Foreign Currency (Domestic) [RFC(D)] Account, and authorised dealers are instructed to accept such credits following the regulatory amendment.
Indo-Sri Lanka Credit Agreement dated March 23, 2004 for USD 25 Million
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Line of credit framework for bilateral imports: credit covers full f.o.b. value, requires approvals and LC routing through central bank.
Disbursements under the line of credit occur through letters of credit opened by banks in Sri Lanka and advised to the State Bank of India, New Delhi; letters must be supported by the contract, include a prescribed reimbursement clause providing that reimbursement will be made by the State Bank of India from the line of credit, and finance the full f.o.b. value of eligible goods and services subject to government approvals, prohibition of agency commission, prescribed shipment declarations, and specified signing and drawdown deadlines.
Establishment of connectivity with both NSDL and CDSL- Shifting from Trade for Trade Segment (TFTS) to Normal Rolling Segment (NRS)
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Dual depository connectivity allows shifting from trade-for-trade to normal rolling segment, subject to exchange reporting obligations.
Stock Exchanges are directed to shift companies that established connectivity with both depositories to the Normal Rolling Segment (NRS) provided there are no other specific grounds for their continuation in the Trade for Trade Segment (TFTS). Exchanges must report the action taken in the Monthly Development Report in the specified reporting field as a compliance measure.
Trading by FIIs in Exchange Traded Equity Index Derivative Contracts
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FII position limits in equity index derivatives set per exchange, with exposure caps and mandatory daily reporting and monitoring.
SEBI modifies FII position limits in exchange-traded equity index options and futures by prescribing per-exchange ceilings measured against market open interest, and requires that short index-derivative exposure not exceed the FII's stock holdings while long index-derivative exposure not exceed holdings of cash and government securities. FIIs must report holdings daily to Clearing Members/Custodians, those intermediaries must report to the Exchange, and Exchanges must monitor positions as specified by SEBI; implementation is directed from the stated effective date.
Risk containment measures, position limits and the broad eligibility criteria of Stocks and Index on which futures and options could be introduced.
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Position limits in derivatives tightened; exchanges must enforce market-wide caps, member limits and enhanced risk controls.
SEBI revises eligibility criteria for stocks and indices for derivatives, requiring selection from high market-capitalisation and trading-value stocks, a minimum median quarter-sigma order size, and a minimum market-wide position limit; indices qualify only if a prescribed proportion of constituents are eligible and no large-weight ineligible stock exists. It prescribes enhanced risk containment: optional MTM timing with higher initial margins if deferred, higher margins/short-option charges for high impact-cost stocks, broadened acceptable liquid assets with daily valuation and VAR-based haircuts, and revised market-wide and trading-member position limits with mandatory exchange monitoring, real-time disclosure, ban/enforcement mechanics and penalties for violations.
Central Database of Market Participants Regulations, 2003.
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Unique Identification Number requirement mandates quoting UIN with registration on all transactions, filings and correspondence.
Specified intermediaries and their related persons must obtain and use a Unique Identification Number (UIN) from the MAPIN database; the UIN shall replace the Unique Client Code for secondary market transactions where applicable and must be quoted along with the SEBI registration number on all transactions, correspondence, documents and reports. Stock exchanges and depositories must amend bye-laws, notify members and depository participants, disseminate the requirement on websites, and report implementation status to SEBI.
Clarifications regarding import of Hexane covered under Chapter 29 of ITC (HS) Classifications of Export and Import Items, 2002-2007
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Classification of Hexane confirmed as covered under Chapter 29 of ITC(HS) following regulatory consultation and DGFT clarification.
The import of Hexane is covered in Chapter 29 of the ITC(HS) Classification of Export and Import Items, 2002-07; this classification was confirmed by the Directorate General of Foreign Trade after consultation with the Department of Chemicals and Petrochemicals and issued as an official circular with the Director General's approval.
Revocation of the suspended DEPB rates on Engineering Products
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Revocation of suspended DEPB rates restores export benefit availability for engineering products under export policy powers.
Revocation of the suspension of DEPB rates for the Engineering Product Group: the DGFT, under Paragraph 2.4 of the Export and Import Policy and paragraph 1.1 of the Handbook of Procedures (Vol I), has revoked the suspensions effected by Public Notice No. 54 and Public Notice No. 56, restoring the DEPB schedule entries for engineering products; the action is declared to be in the public interest.
Deferred Payment Protocols dated 30th April 1981 and 23rd December 1985 between the Government of India and erstwhile USSR
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Revision of special currency basket value: authorised dealers must apply the new rupee valuation and inform constituents.
The Reserve Bank of India issued a circular revising the rupee valuation of the special currency basket applicable to the Deferred Payment Protocols with the erstwhile USSR, directing all authorised dealers in foreign exchange to adopt the revised valuation for relevant transactions and to notify their constituents; the directions are issued under the regulatory authority of the Foreign Exchange Management Act.
Exim Bank's Line of Credit for USD 50 million to Government of Sudan
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Line of credit facility permits export finance under Exim Policy with commission restrictions and specified reimbursement and disbursement conditions.
A Line of Credit up to USD 50 million finances exports of capital goods, plant and machinery, industrial manufactures, consumer durables and other Exim Policy eligible items; shipments must be declared on GR/SDF forms. No agency commission is payable under the credit except that Reserve Bank may permit up to five percent commission for exports requiring after sales service, payable in the borrower country by deduction from the invoice, and Exim Bank's reimbursable amount to the negotiating bank will be ninety percent of the f.o.b./c.&f./c.i.f. value minus commission. Approval for commission must be obtained before shipment.
Import of Gold by (i) Export Oriented Units (EOUs), (ii) Units in SEZ/EPZ, and (iii) Nominated Agencies
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Import of gold: permitted to nominated agencies, approved banks and EOUs/SEZ units subject to EXIM and FEMA compliance.
Nominated agencies, approved banks and EOUs/SEZ units in the gems and jewellery sector may directly import gold in accordance with the EXIM Policy; ADs may open LCs and allow remittances only on behalf of those authorised importers, subject to prescribed credit period limits, strict KYC/AML due diligence, verification of supplier and importer credentials, preservation of documents for five years, and monthly reporting of import transactions to the Reserve Bank. These directions are issued under FEMA and do not replace other statutory approvals that may be required.
Clarification for circular no. DNPD/Cir-25/04 dated June 10, 2004
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STP messaging standards clarified: IFN 540-547 and IFN 515 descriptors define settlement instruction types and confirmation usage.
The circular confirms that STP messaging under ISO 15022 requires IFN 515 for contract note issuance, IFN 548/598 for confirmations, and IFN 540-547 for settlement instructions and their confirmations, with 540-543 as instructions and 544-547 as responses. It further mandates tag 22H in IFN 515 be set to FREE where the custodian accepts settlement obligation with the Clearing Corporation and to APMT where the broker settles with the Clearing Corporation.
Changes in excise, customs and service tax through Finance Bill, 2004
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Education cess on customs excise and service tax broadens the tax base and alters CENVAT credit applicability.
A new Education Cess is levied on aggregate customs, excise and service tax duties with limited credit usable only against education cess on final products under the CENVAT regime. The circular outlines extensive customs and central excise rate changes, sectoral exemptions and revisions (notably textiles, health, IT, agriculture and export-promotion), introduces an optional duty/credit route for textiles, and details procedural and statutory amendments including AED credit limits, compounding of offences, recovery against transferees, adjournment limits, and significant service tax scope and administrative reforms.
Changes in excise, customs and service tax through Finance Bill, 2004
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Integrated input tax credit extended across goods and services, broadening the service tax base and creditability framework.
A 2% Education Cess is imposed on aggregate customs, excise and service tax duties with restricted credit usable only to pay education cess on final products; customs, excise and service tax rates and exemptions are comprehensively revised across sectors (metals, minerals, textiles, IT, health, agriculture, export promotion), the textile duty regime is restructured to mandate duty on manmade fibres while allowing optional duty/credit for other textiles, CENVAT credit rules are narrowed for AED(GSI), compounding of offences is permitted, and service tax is expanded with cross creditability between goods and services and numerous procedural and valuation amendments.
Procedure for shut out cargo for export reg.
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Shut out cargo procedures clarified: ICES amendments and LEO cancellation govern complete and partial export shipments.
Procedure clarifies ICES processing for shut out cargo and back to town: complete shut out requires manual port endorsement and vessel-name amendment via CFS and ICES before the first vessel sailing date; partial shut out requires cancellation of LEO and amendment of quantity with supervisory permission (Assistant Commissioner before 'let export', Deputy Commissioner after), surrender of printed shipping bill copies if generated, and filing fresh shipping bills for subsequent export.
Computerized Processing of Bills of Entry under the Indian Customs EDI System-Imports(ICES/I) at Custom House, Kandla
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Customs EDI system implementation mandates electronic registration and structured electronic Bills of Entry processing, appraisal, and bond management.
Implementation of a Customs EDI System at Kandla Custom House mandates registration of importers, CHAs and shipping entities, initial data entry at a Service Centre with phased ICEGATE connectivity, and establishes electronic workflows for filing ANNEXURE A Bills of Entry, IGM submission, checklist verification, System/second/first check appraisals, Green Channel clearance, duty payment via linked bank, concurrent audit, and specialized modules for DEPB, export licences, Bond Management and exceptions where local connectivity is pending.
Feedback from Trade and Industry on the EXIM Policy issues
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Stakeholder Consultation on Export Import Policy: trade invited to submit clarifications and justifications for proposed inclusions.
The Directorate General of Foreign Trade issues a circular inviting representations from trade and industry on issues listed in the online document for incorporation into the proposed New Export and Import Policy, requesting clarifications and justifications for inclusion and indicating that the circular is issued with the approval of the Director General.
Import of non-standard tapes – instructions-reg
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Import of measuring tapes: non-metric scales allowed alongside metric scale without unit labels, permitting compliant imports.
Amendment permits manufacture, verification and import of measuring tapes bearing a metric scale alongside non-metric scale inscriptions so long as non-metric unit names are not shown; earlier prohibition on importation of instruments with non-standard units is qualified and customs formations are instructed to allow import of such compliant tapes.

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