Temporary removal of duty-free laptops and projection systems permitted for software development under specified authorization and record conditions.
Duty-free Laptop computers and Video Projection Systems imported by STP/EHTP/EPZ units may be taken outside the bonded area temporarily for software development or display, provided the unit issues a monthly certificate naming the authorised employee and describing the equipment, maintains records of authorisations and movements for inspection by the Assistant Commissioner, ensures equipment is returned and accounted for, and may obtain a general permission for up to six months for specified employees and equipment.

Deductible sales tax: deferred or government-retained sales tax reduces assessable value under central excise law.
Where sales tax is not payable by law (exemption) it cannot be deducted from the wholesale price; however, sales tax that is deferred or treated as payable because a State incentive credits an equivalent amount as payment is considered payable by the assessee and is deductible from the wholesale price for determination of assessable value for central excise duty.

Relaxation of customs formalities: vessels carrying exclusively coastal goods exempted from IGM/EGM filing and Advice Book delivery.
Vessels carrying exclusively coastal goods are not required to file IGM/EGM due to rescission of the earlier notification; they are also exempted from delivering the Advice Book at each port of call, while the master must carry the Advice Book on board and customs officers may call for or inspect it when necessary.

Fast Track Clearance eligibility expanded to include electronic imports by large manufacturers; PD account balance removed; manufacturers' storage hold relaxed.
Amendments expand Fast Track Clearance so electronic items are eligible when imported by manufacturers meeting the Scheme's investment threshold, defined as total capital employed in plant and machinery from equity or debt. The minimum PD account balance requirement is deleted. The three day post clearance storage obligation is waived for manufacturers who can use goods immediately, but traders importing for resale must not dispose of goods for three days including transit.

Single bond requirement for exporters: consolidated surety bond authorises duty free clearance and job work movements.
A consolidated single bond (B-17) shall replace multiple bonds for 100% EOUs and units in EPZ/FTZ/STP/EHTP schemes to cover liabilities under Customs and Central Excise; only a surety bond is to be taken, executed before the Assistant Commissioner who issues a certificate authorising duty free clearance and job work movements, while existing annexure II procedures continue for domestic procurement and failure to receive rewarehousing certificates within ninety days triggers a demand notice procedure.

Rejection of declared value allows customs to question and set aside invoice value where reasonable doubt exists, with procedural safeguards.
Rule 10A authorises the proper officer to reject a declared transaction value when there is reason to doubt its truth or accuracy; the officer may seek further information and, if doubt persists, the value is treated as not determinable under the transaction value provisions. On request the officer must state grounds for doubt in writing and provide a reasonable opportunity to be heard before a final decision is taken.

Trading House status conversion allowed for exporters meeting revised notification criteria, with application and entitlement to adjusted SIL.
Exporters recognised or renewed for the period commencing 1.4.97 who satisfy the revised criteria of Notification No.19/1997-2002 may be granted Trading House/Star Trading House/Super Star Trading House status upon application to DGFT HQ using Appendix 19 with prescribed documents and the original status certificate. They retain the NFE/FOB option and endorsement for the relevant licensing year as earlier exercised, and are entitled to SIL equal to the difference between the CIF value eligible under the new certificate and the CIF value of SIL already issued under the earlier certificate.

Relaxed value addition norms permit export of X-ray baggage and cargo inspection apparatus to the Russian Federation under specified ITC classification.
The Director General of Foreign Trade, under Export and Import Policy, 1997-2002 (paragraphs 4.11 and 7.10), has included "X-ray apparatus for baggage and cargo inspection (Exim Code No. 90.22)" in Annexure-1 to Appendix-39, permitting its export to the Russian Federation under relaxed value addition norms and in accordance with its ITC (HS) classification in the Handbook of Procedures, Vol. I.

Warehousing extension may be granted after expiry in exceptional circumstances, subject to the Chief Commissioner's discretionary assessment.
Section 61 allows extensions of the warehousing period by the Commissioner and Chief Commissioner; importers should apply before expiry. In exceptional circumstances the Chief Commissioner may grant post expiry extensions after assessing the exceptional circumstances, nature of the commodity, duty rates and risk of revenue loss, licensing aspects and related factors.

Ineffective IEC numbers render exports and imports ineligible, prompting invalidity and recovery proceedings for any benefits claimed.
Exports and imports effected under an ineffective IEC-arising when changes in name, constitution or ownership are not endorsed within sixty days under Para 15.4-are invalid; the IEC holder ceases to be eligible to export/import, RLAs must circulate details of such ineffective IECs to other RLAs, Customs and the banking authority, and any benefits claimed for transactions during the interlude are subject to recovery. A fresh IEC may be applied for and decided by the RLA under policy.

Special Currency Basket value revised under Indo USSR deferred payments protocols, affecting computation of Rupee equivalents for deferred contracts.
The Reserve Bank of India revised the Indian Rupee valuation of the Special Currency Basket, effective 23 January 1998, for application to deferred payment contracts concluded under the Indo USSR Deferred Payments Protocols dated 30 April 1981 and 23 December 1985, and the revision applies to all contracts entered into under those protocols for computing Rupee equivalents for payments.

LUT limit for overseas companies: amended eligibility ties entitlement to preceding three years' average diamond turnover.
An amendment to Para 8.14(a), Chapter 8, HBP Vol. I adds a new entry establishing that an overseas company with a branch office in India which meets the specified annual average turnover in diamonds during the preceding three licensing years is entitled to claim an LUT benefit calculated as a proportion of that annual average turnover for the preceding three licensing years.

Trade permission: amendment allows imports and exports with Fiji, permitting trade with all countries except Iraq.
Amendment under Paragraph 4.11 revises Handbook of Procedures (Vol. 1) Paragraph 4.2 to permit imports and exports to and from any country except Iraq, making trade with Fiji permissible unless otherwise specifically provided; issued as a Public Notice by the Director General of Foreign Trade.

Running serial number requirement ensures circulars issued only after registration and record copies are submitted for administrative control.
All customs circulars, instructions and orders of a general nature must be issued only after obtaining a running serial number, with all Sections in the Customs, Drawback and Anti Smuggling Wings regularly sending instructions and clarifications to Chief Commissioners/Commissioners and relevant Board customs sections; two copies of each circular/instruction must be furnished to Customs III Section for record and duplicates sent to formations that did not receive the original.

Transport allowance compensating commuting is taxable; employers must deduct tax at source on such payments.
Transport allowance paid as compensation for commuting between residence and place of duty does not qualify for exemption under section 10(14)(i) read with rule 2BB(1)(c); any allowance with a commuting reimbursement element is similarly excluded. Persons making such payments must treat them as part of taxable salary and deduct tax at source at the appropriate rates under the Income-tax Act.

Delegation of power to Chief Commissioner allows permissions under Rule 173H(3) by order subject to specified conditions.
Amendment vests the Chief Commissioner with authority to grant permissions under Rule 173H(3) by special or general order, subject to conditions and limitations specified by the Chief Commissioner, and makes a consequential change to the following sub rule; prior Board guidance inconsistent with this delegation is rescinded.

DEPB amendment: product descriptions and entitlements revised, with minimum-purity rule preserving credit eligibility for higher-purity exports.
Amendment to the DEPB schedule revises multiple export product descriptions, deletes specified DEPB rates for certain engineering and electronics items, and changes the phrase "Formulation of bulk drug" to "Formulation or bulk drug." A general note provides that any purity specified in a DEPB rate is a minimum and exporters of higher-purity product are entitled to the same DEPB rate; these changes adjust classification and entitlement for DEPB benefits under the Handbook of Procedures.

Standard Input Output Norms updated: additions and amendments altering permitted import inputs, quantities and licensing conditions for export production.
The Public Notice amends Handbook of Procedure, Vol.2 by correcting and substituting multiple Standard Input Output Norms and adding new entries across Chemicals, Electronics, Engineering, Plastics, Textiles and Miscellaneous products. Each amended or new SION specifies permitted import items, quantities or formulae (including net-to-net, kg/kg content, and wastage allowances), introduces component-level allowances and consumable limits, and sets limited validity for certain norms. Textile licences for Sl. Nos. J270-J297 carry an Actual User condition restricting post-obligation transfer and requiring customs acceptance on licensing authority certification.

Re-warehousing obligations: expedite transfer of bonded goods to EHTP units and avoid production delays and harassment.
Immediate administrative instruction requiring prompt re-warehousing of bonded goods from ports to EHTP units, recognising necessary formalities but directing field formations to minimise delay, avoid harassment to trade, and enforce accountability including stringent action against erring officers.

Tax on distributed corporate profits imposed, companies pay final tax on dividends while shareholders receive dividend exemption.
The Finance Act, 1997 revises income tax and withholding rates, introduces a tax on profits distributed by domestic companies while exempting corresponding dividend income for shareholders, and creates sector specific tax incentives (notably for telecommunication, industrial parks and selected hotels). It reforms presumptive taxation by requiring maintenance and audit of accounts for electing assessees and allows partner salary and interest deductions in firm computations. The Act strengthens compliance by mandating returns based on economic indicators, enabling magnetic media TDS returns, altering TDS rules on government securities and lottery winnings, and refines MAT with a carry forward credit for MAT paid.