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Circulars
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Pre shipment inspection of import consignments under the textiles product group
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Preshipment inspection requirement: accredited lab certification or designated domestic testing needed for textile import clearance.
Import consignments bearing a pre-shipment inspection certificate from a textile testing laboratory accredited to the national accreditation agency of the country of origin, certifying absence of the specified hazardous dyes, shall be permitted clearance. Consignments without such a certificate may be cleared only after a sample is tested and certified by one of the designated domestic agencies listed in the annexure to the notice as free of the prohibited dyes.
Guidelines for recognition of branded products
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Brand recognition for consumer goods: export threshold limits and mandatory product marking required for DEPB value cap exemption.
Recognition under the DEPB scheme is limited to consumer goods and requires specific product-level brand approval, mandatory bar coding, ISO-9000 series quality certification, embossing with the brand name and "Made in India" mark until retail sale, trademark registration or application, and declaration of the brand on shipping bills. Exemptions from the DEPB value cap are granted on a manufacturing unit and product-specific basis; applicants must identify the manufacturer and may nominate a merchant exporter. Foreign brand recognition with proof of foreign registration and the "Made in India" legend may also be considered. Past approvals lapsed and require fresh applications.
Non-promoter holding on a continuous basis and minimum number of shareholders
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Minimum public shareholding requirement mandates continuous public float, limits allotments reducing float, and enforces takeover compliance.
Obligation to maintain on a continuous basis the minimum level of non promoter/public shareholding required at the time of listing; existing listed firms below the required public holding must raise non promoter holding within one year or undertake buyback under the takeover regulations; prohibition on preferential allotments or buybacks that would reduce non promoter holding below the applicable threshold; BIFR companies excluded; exchanges to amend listing agreements and monitor non promoter holding half yearly.
Consolidation of Reports/Returns sent to PAC Section of the Board & forwarding of list of pending Paras – regarding
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Consolidation of Audit Reports streamlines ATN reporting and focuses monthly returns on listed pending audit paras.
The Board mandates consolidation of recurring ATN and related returns: combine the thirteen routine ATN returns into one monthly report; discontinue nine specified reports to PAC(CX 7) while continuing transmission to other formations; and retain the monitoring report on Audit objections with an increased monetary threshold. Proforma I is reconfigured as a single monthly ATN covering only DAPs converted to Audit Paras with corresponding AP numbers; Proforma II remains quarterly until the subsequent Audit Report is received. Commissioners must submit monthly ATNs only for Paras listed in the enclosed pendency annexure and prioritize adjudication where Ministry has admitted objections.
Amendments/ Corrections in DEPB, Chapter 6, 7, 10, 15
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DEPB scheme amendments clarify licensing, documentation, eligibility and DEPB rate provisions affecting export entitlement and monitoring.
Amendments revise Handbook (Vol I) (RE-01) 1997-2002 provisions: renaming a licence heading, deleting the expression SIL, preserving earlier licence governance without SIL surrender for value shortfalls, tightening foreign-exchange documentation with CA and bank-certified statements, setting power-cost and turnover eligibility thresholds, excluding monitoring for exports under irrevocable letters of credit, clarifying DFRC valuation from FOB via bank realization certificates, standardizing timeframes to "six months", and updating DEPB rate tables and authorised agency listings in Appendices.
Amendments/corrections in standard input output norms
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Standard Input Output Norms amendments update Handbook of Procedures to correct SION descriptions and add a new miscellaneous product norm.
The Director General of Foreign Trade amends the Standard Input Output Norms in the Handbook of Procedures, Vol.2 by issuing item specific corrections and substitutions (Annexure A) to numerous SION entries across chemicals, engineering, sports goods and textiles, and by adding a new miscellaneous SION entry K 135 for a rubber backed polypropylene non woven door mat (Annexure B), specifying the allowed input and corresponding quantities for implementation under the Export and Import Policy.
Large Unit Holdings and Brokerage on associate applications
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Large unitholding disclosure required in offering and periodic reports; brokerage to associates prohibited with reimbursement and reporting mandated.
Mutual funds must disclose large unitholdings by reporting the number of such investors and their aggregate percentage in allotment letters and in annual and half yearly results. Payments of brokerage or commission to associate entities on subscription of units are prohibited; funds that made such payments must reimburse the scheme(s) and report compliance with details of commissions reimbursed within thirty days.
Central Excise - Scheme of compounded levy for payment of duty by Independent textile processors effective from 1st May, 2001
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Compounded levy scheme enables optional duty payment by eligible independent textile processors, with fixed liability and restricted abatements.
The optional compounded levy scheme for independent textile processors using hot air stenters requires eligibility based on the higher original value of plant and machinery as on two reference dates, certified by a chartered or cost accountant and applied for to the Commissioner by the prescribed deadline. Duty is fixed by reference to the higher number of stenters or chambers on those dates; later additions increase liability from their date of addition while removals or non-use do not reduce liability. Abatement is available only for full factory closure subject to procedural requirements. Payment timing follows a two-part monthly schedule and processors admitted are bound for the remainder of the financial year.
Excise duty on readymade garments - Changes effective from 1st May, 2001
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Excise duty on readymade garments now uniform; merchant-manufacturer bears liability with SSI exemption and deemed credit option available.
Excise duty on readymade garments is restructured to impose liability on the merchant manufacturer in job-work arrangements, who must register at the private storeroom/warehouse, discharge duty at removal from that registered premises, and comply with Central Excise rules. The merchant manufacturer may authorize a job-worker in writing to pay duty and must either claim actual CENVAT credit on inputs supplied to job-workers or, where infeasible, claim a deemed credit; the two credit options are mutually exclusive. SSI exemption and tariff valuation based on retail price are also provided.
Service Tax not leviable on services by qualified engineers as insurance surveyor and loss assessor
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Consulting engineer exclusion: insurance surveying and loss assessment services by qualified engineers fall outside consulting engineer service tax scope.
Services by qualified engineers acting as insurance surveyors or loss assessors are not taxable as consulting engineer services because consulting engineer services are limited to advice, consultancy or technical assistance in engineering disciplines; insurance surveying and loss assessment are insurance auxiliary services performable by various licensed professionals and thus fall outside the consulting engineer service tax scope.
Indian Direct Investment outside India
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Overseas direct investment liberalisation permits higher limits and expanded automatic route for Indian entities to invest abroad.
Amendments liberalise overseas direct investment by increasing limits under the Automatic Route, removing a prior profitability condition, and raising rupee ceilings for certain neighbouring countries; permit full utilisation of ADR/GDR proceeds and swap acquisitions subject to conditions; allow Reserve Bank block allocation of foreign exchange on application; authorise registered partnership firms to invest abroad under specified approval routes and limited automatic allowances; and impose procedural reporting, documentation, identification number, and annual performance report requirements for authorised dealers and investing firms.
Validity of Scheme Offer Documents
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Scheme offer document validity: time limited launch and reply requirement, fresh filing required if the period lapses.
Mutual funds must launch a scheme within six months of the letter containing SEBI's observations; if launch is intended later, a fresh offer document must be filed with filing fees. Replies to preliminary observations must also be filed within six months, failing which fresh offer documents and filing fees are required. This procedure applies to all schemes for which preliminary or final observations have been communicated and is issued under SEBI's regulatory authority.
Introduction of common Business Identifier Number (BIN) based on Permanent Account Number (PAN) – Exchange and transmission of DGFT data.
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Business Identification Number requirement based on PAN mandates PAN registration with DGFT for customs data exchange and validation.
A common Business Identification Number (BIN) based on the Permanent Account Number (PAN) is implemented at Chennai Custom House to standardise importer/exporter identification for Customs-DGFT EDI data exchange; importers/exporters must obtain PAN, register PAN with DGFT (via IEC) and use the DGFT Directory as the identifier. Data reconciliation of transmission errors between Customs, DGFT and NIC is underway; trade must verify acceptance on the Chennai Customs website and report errors to designated system officers or use IVRS to access DGFT information by I.E.Code.
Extension in date of shipment/ export of Coarse Grain
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Extension of export deadline for coarse grain permits continued shipment under prior export permissions subject to existing ITC(HS) conditions.
Extension of the last date for shipment and export of coarse grain amends prior Public Notices to permit completion of shipments allowed under the specified ITC(HS) classifications; the amendment is made under Paragraph 4.11 of the Export & Import Policy and is stated to be in the public interest, with all existing terms and conditions of the referenced entries remaining applicable.
Deletion of the condition of "Export obligation".
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Export obligation removal: licences and LOIs deemed exempt where the item has been dereserved, simplifying exemption procedure.
Industrial licences and Letters of Intent that originally carried an export obligation for items reserved to the Small Scale Sector will be deemed exempt from that export obligation where those items have been dereserved by Gazette notification; no separate amendment or endorsement is required, and attaching this Press Note with the relevant dereservation notification will suffice to obtain exemption. Holders may alternatively file an Industrial Entrepreneurs' Memorandum in lieu of IL/LOI where permitted and where licence conditions are to be varied.
Eligibility of Drawback for exports made under DFRC Scheme – reg
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Drawback eligibility under DFRC Scheme: All Industry or brand rates allowed where CVD paid on imports and no cenvat.
Exporters under the DFRC Scheme may claim All Industry Rate of drawback for SION specified inputs imported and cleared on payment of CVD, and may claim brand rate for non SION inputs procured indigenously, in each case only if no cenvat credit was availed; a transitional provision allows AIR equivalent to the central excise duty portion for exports made during the scheme's initial implementation period despite earlier notification technicalities.
Wrong availment of DEPB benefit in respect of exports where imports were made ithout payment of customs duty under Notification No.32/97 dated 1.4.97
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DEPB entitlement denied where inputs were imported duty free under bond; exporters must declare duty free imports on shipping bills.
DEPB is not available for exports manufactured from inputs imported duty free under a bond/BG mechanism; the duty free import facility and DEPB are mutually exclusive. Exporters must declare on the shipping bill any duty free imports and Customs must verify such declarations to prevent wrongful DEPB grant, supported by trade notices and standing orders for staff and trade.
Duty Drawback of Ready-made Garments in the wake of levy of terminal Excise Duty-regarding
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Duty Drawback: new excise levy prompts conditional drawback rules and declaration-based claims for exporters not availing Cenvat.
Levy of terminal Central Excise on branded ready-made garments requires drawback adjustments: drawback is conditional on non-availment of Cenvat, with separate drawback entries reflecting Customs allocation where Cenvat is availed and proportionate caps; exporters outside the Central Excise net may claim higher existing drawback rates on a declaration of excise exemption and non-availment of Cenvat, and Customs need not obtain further central excise certification if exports are not under AR-4 procedure.
Format for Half Yearly Disclosure of Unaudited Financial Results
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Half-yearly disclosure obligations: mutual funds must publish unaudited results in prescribed format and timeframe, and file with regulator.
Mutual funds must publish unaudited half-yearly financial results in the Twelfth Schedule format, printed legibly, including scheme-wise capital, reserves, net assets, NAV, income and expense breakdowns, returns and yield calculations, and specified notes; publications must appear in a national English and regional language newspaper, be filed with the regulator, and be posted on the fund's website, with an older abridged format retained online for a temporary period.
Issue of RCAC's to sugar mills/ exporters of sugar
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Issuance of RCACs permits APEDA to grant certificates to sugar exporters on production of firm contracts pending ceiling notification.
Issuance of Registration-Cum-Allocation Certificates (RCACs) for sugar exports is authorized to be carried out by the agricultural export development authority upon production of firm, valid contract orders, under the export-import policy framework and until a quantitative ceiling is notified.

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