CVD on reprocessed plastic imports: DTA clearances by EOUs/EPZ must carry excise equal to import CVD.
Levy of CVD applies to DTA clearances of reprocessed plastic granules by EOU/EPZ units because the excise exemptions require reprocessing to be done in India; imported reprocessed plastics therefore do not attract the exemption and equivalent excise duty (CVD) must be charged, with Customs to review clearances and recover any short levy.

Drawback arrear clearance month directs expedited finalisation of pending drawback claims and reporting to the Board.
The period from 15th May, 2000 to 14th June, 2000 is to be observed as Drawback Arrear Clearance Month at all Customs locations; all pending drawback claims and related issues must be finalised expeditiously to avoid statutory interest, including disposal of cases needing reconstruction of old files, and a report quantifying disposed claims, amounts disbursed and pending claims must be sent to the Board by 23rd June, 2000.

Classification of imported garments: only completely mutilated rags cleared without licence; post import mutilation prohibited, penalties deterrent.
Garments that are only old or used but serviceable after repair must be classified under CTH 63.09, while only totally unserviceable garments beyond repair qualify as rags under CTH 63.10. Completely mutilated rags are to be ensured by applying the criterion of three or more cuts through the entire length of the garment in a crisscross manner, not along the seams. Clearance without licence is allowed only for garments imported already completely mutilated; post import mutilation for meeting import conditions is prohibited. Fines must eliminate margin of profit and deter repeated misclassification.

CENVAT credit rules changed to allow phased capital goods credit and special treatment for certain components and spares.
Amendments permit CENVAT credit on specified tobacco inputs received on or after 1 March 2000; allow credit for debits on inputs sent to job workers when returned on or after 1 April 2000; and phase capital goods credit in two instalments, with the balance instalment available for certain components and refractory items even if no longer in use, subject to denial where goods are removed without use. A monthly return format under rule 57AE and a refund procedure for exported goods under rule 57AC are prescribed.

Deemed export counting permits oil and gas supplies to satisfy EPCG export obligation for licences issued prior to policy change.
Deemed exports under paragraph 6.5(iv) may be counted for EPCG export obligation. Although paragraph 10.2(g) was amended to exclude oil and gas sector supplies, those supplies will be eligible to discharge EPCG export obligation provided the EPCG licence was issued on or before the policy cutoff.

SLP filing responsibilities clarified: allocate customs offence SLPs to anti-smuggling unit and tribunal-related appeals to judicial directorate.
Directs allocation of responsibility for filing Special Leave Petitions (SLP) in customs matters to specific CBEC cells to avoid delay: offence cases under the Customs Act (search, seizure, arrest, prosecution) to the Anti Smuggling Unit/DS (AS); tribunal-origin cases to the judicial directorate; and all other customs cases to DS/US (CUS) or CUS-VI. An enclosed letter requests immediate filing of an SLP against a High Court order affecting appeal powers on sentence enhancement.

Monthly excise payment for small scale industries now governed by consolidated rule; prior instructions withdrawn, update compliance procedures.
Rule 173GG, which provided a special monthly duty payment procedure for manufacturers availing exemption under value based small scale industry notifications, has been omitted and its modified provision incorporated in Rule 173G. Accordingly, Circular No. 458/24/99 CX, issued on the basis of the former rule, is withdrawn. Field formations and trade are to be informed and acknowledgement of receipt requested, aligning monthly excise payment procedure for exempted small manufacturers with the consolidated rule.

Transhipment carriage rules allow domestic containers on coastal vessels with sealing and separate manifests, subject to bond arrangements.
Carriage of transhipment and domestic containers on coastal vessels is permitted with sealing at loading, marking domestic containers "FOR COASTAL CARRIAGE ONLY", and filing separate manifests. Security remains required: carriers may opt for an optional Mother Bond as a running bond maintained at the port of origin, while trip-specific bank guarantees may be furnished and will be released on submission of proof of safe landing at destination; individual trip bonds remain an alternative.

Export permission under prior policy for irrevocable LCs permitted when shipment completed by specified deadline and goods unchanged.
Exporters with irrevocable Letters of Credit established before 28 January 2000 for payment in Indian rupees may export under the former paragraph 11.7 provided shipment is effected by the prescribed deadline and the description of goods remains unchanged from the original Letter of Credit; this relaxation addresses difficulties complying with original LC validity and is issued with approval of the Director General of Foreign Trade.

Duty Free Replenishment Certificate rules permit import of specified inputs for export products subject to SION and procedural checks.
The DFRC regime allows eligible exporters to import inputs for export products covered by Standard Input-Output Norms (SION), requiring exporter declarations on shipping bills and permitting only inputs matching declared quality and specifications. Licences are normally valid for twelve months and are freely transferable except where SIONs carry Actual User restrictions. Imports under DFRC are subject to normal checks, require a debit entry against the licence for clearance, permit sourcing from private bonded warehouses under Section 68 compliance, and mandate port-of-registration procedures including Telegraphic Release Advice for other ports.

Proof of export: self attested Shipping Bill accepted for rebate and bonded account processing with signer details.
For acceptance of proof of export when sanctioning rebate, allowing credit in a running bond account, or discharging individual export bonds, the Shipping Bill (Export Promotion Copy) may be self attested by the exporter or an authorised person, who must clearly indicate the name and designation of the signatory; field formations are to be informed and acknowledge receipt.

Input Output Norms revised: validity extended and detailed standard input output norms added, amending component import allowances.
The Director General amends the Handbook of Procedures (Vol.2) by adding, substituting and correcting Standard Input Output Norms across Chemicals, Engineering, Leather and Textile groups via Annexures A-E; permits component imports on a net to net basis with an accountability clause; introduces product specific provisos (including CIF limits for certain chemicals and formulae to adjust input allowances for compound weight variations); deletes an engineering table and extends the temporary validity of affected norms until 30th September 2000.

Importer Exporter Code modification: deadline extended to allow PAN updation without documents and preserve penalty exemption.
Applications for modification/updation of the Importer Exporter Code, including PAN details, may be submitted in Appendix-1A and Appendix-2A without photographs, fees or other supporting documents even where IEC status has changed; the concession preserves the penalty exemption under the Handbook of Procedure and consignments will be cleared on the basis of updated information once that information is used for customs processing.

Service tax on tour and rent-a-cab services imposes registration, valuation and payment obligations under applicable service tax rules.
Service tax applies to Rent a Cab Scheme Operators and Tour Operators from 1-4-2000. A rent a cab operator is any person renting cabs; a tour operator is any person operating tours in tourist vehicles or using vehicles leased from permit holders. Taxable value is the gross amount charged for services, inclusive of rental, accommodation, food and other ancillary charges. Abatements are available for package tours (60%) and for sole accommodation booking services (90%) subject to billing requirements. Registrations (Form ST 1), payment via specified challans, provisional assessment, half yearly ST 3 returns, and assessment and appellate procedures mirror central excise processes.

Pre-shipment inspection for silk goods discontinued, removing prior inspection requirement and updating customs procedure.
The Ministry of Textiles directed the dispensation of pre-shipment inspection for silk goods, effective 1.4.2000, removing the prior inspection requirement for silk consignments. The Central Board of Excise & Customs rescinded Circular No. 28/99-Cus. dated 24th May 1999 and instructed officials to note the change and inform all concerned.

DEPB processing: exporters must use specified serial numbers on EDI filings to avoid duplicate value-cap errors.
Computerised processing of DEPB shipping bills at Air Cargo, Mumbai continues on the Indian Customs EDI System after revised DEPB rates were uploaded; CHAs and exporters should file DEPB papers on EDI. Where two value caps were prescribed against the same serial number and the EDI system does not accept dual caps, CHAs/exporters must feed the serial numbers as specified in Annexure I for items listed in column 3 when filing shipping bills.

Refund of TDS under section 195 allowed to deductor where no income accrues to non-resident, subject to approval and conditions.
Refunds of tax deducted at source under section 195 are permitted to the deductor where no income has accrued to the non-resident due to non-materialisation or cancellation of the transaction, subject to prior approval of the Chief Commissioner. The Assessing Officer may adjust the refundable amount against existing direct tax liabilities, prepare separate refund vouchers for each adjusted tax head and refund any balance. No interest on such refunds is payable. Claimants must provide an undertaking regarding certificates issued to the non-resident or indemnify the Department, ensure corresponding expense is disallowed if claimed and file claims within two years from the end of the financial year in which tax was deducted.

Brand Rate Drawback eligibility extended to DTA units for inputs processed by EOUs/EPZ under specified procedure.
DTA exporters supplying duty-paid inputs to EOUs/EPZs for manufacture of exported goods are eligible for Brand Rate Drawback upon submission of proof of duty payment. Drawback is payable under Rule 6(1) of the Drawback Rules at a brand rate fixed on specific application, following the prescribed procedure; applications for rate fixation under DEPB must be made to the Directorate of Drawback, and the All-Industry Rate is not available.

Assessable value: include subsequent value adding processes in the value of goods cleared for marketing.
When a post manufacture process performed prior to marketing does not constitute manufacture but adds intrinsic and commercial value, the cost and effect of that process must be included in the assessable value of the goods as finally cleared from the factory, regardless of prior taxation at an intermediate stage or the process being undertaken in a separate shed, especially where the producer markets both intermediate and further processed forms.

Identity card validity extension preserves trade access; renewals and fresh applications accepted at counters from notified date.
Identity cards which expired on 31.3.2000 are declared valid until 30th September, 2000. Applications for renewal of those cards will be accepted at the counter from 1.09.2000, and applications for fresh identity cards, amendments to existing cards, and surrender of identity cards will likewise be processed through the prescribed counter procedure.