Duty free procurement rules updated for EOU/EPZ/STP/EHTP/SEZ schemes, revising transfers, eligibility, and penal interest consequences.
Notifications have been amended to align duty free import/procurement rules with the new EXIM Policy 2002-07: trading units under EOU/EPZ are disallowed; inter unit transfers are limited to manufactured goods and capital goods; units may procure duty free from international exhibitions; agriculture EOUs may undertake contract farming with specified duty free inputs; gem and jewellery exchanges permit equivalent metal quantity exchanges; service units qualify only if they export for freely convertible currency; Central Excise Rules updated; penal interest reduced to 15%; surplus power may be sold to DTA or other zone units under specified conditions; DTA clearance of gold scrap for SEZ units permitted on duty payment.

Foreign currency accounts abroad: Indian entities may hold accounts for overseas offices for normal business operations subject to RBI conditions.
Maintenance of foreign currency accounts abroad by Indian entities is permitted for overseas offices, branches or representatives for normal business operations, subject to conditions including prohibition on creating liabilities for the head office, repatriation of surplus funds unless RBI approval is obtained, reporting of the overseas bank account to the authorised dealer, and specified repatriation and reporting requirements for software exporter contracts.

Limited scrutiny under section 143(2)(i) requires reasoned written notice and supervisory approval before challenging return claims.
Procedural guidelines require an assessing officer who believes a claim is inadmissible to record reasons in writing, serve a prescribed notice specifying the challenged claim and require supporting evidence on a specified date; supervisory approval is needed for issuing notices, time limits for service and completion must be observed, and control registers and order sheets must be maintained to track cases and ensure timely assessment.

Diamond import policy expands DIL to include semi processed and abolishes certain licences while duty on rough diamonds is removed.
The EXIM Policy 2002-07 and Handbook amendments realign notifications and broaden Diamond Imprest Licence scope to include semi processed, half cut and broken diamonds with corresponding notification changes; they permit authorised labs to export and re import cut and polished diamonds for certification without duty. Several licences for duty free import of rough diamonds have been abolished while import duty on rough diamonds is reduced to nil, prompting replacement notifications for duty free import of certain pearls and precious/semi precious stones. Personal carriage rules, wastage allowances, and value addition norms have also been revised.

Bank guarantee calculation based on effective duty rate for nominated agencies in export-against-supply scheme, reducing transaction costs.
The bank guarantee required under the Export Against Supply by Foreign Buyer scheme for gold imports shall be calculated using the duty rate applicable to nominated agencies rather than the general tariff rate, to reduce transaction costs; a Public Notice is to be issued and implementation difficulties reported to the Board.

Exemption from TDS on specified interest and mutual fund receipts allows exempt charitable entities to receive payments without withholding.
Exemption from deduction of tax at source is permitted for Ramakrishna Math and Ramakrishna Mission whose income is exempt under sub-clause (iv) of section 10(23C). Specified payments-interest on Central and State Government securities, other interest, and income in respect of units of specified mutual funds or the Unit Trust of India-may be made to those entities without withholding. The instruction applies from the current financial year, allowing payers to make the listed disbursements without deduction of tax at source.

Deemed export benefits: branch offices may apply under Advance Licence rules and retrospective relaxations permit conversions and direct negotiation.
Branch offices of registered exporters may apply for deemed export benefits under the requirements of para 4.2 and para 4.3 of the Handbook of Procedures (Vol I). Issuing offices will, on specific request, endorse status certificates (including golden status certificates) expiring on the relevant date with a two year deemed extension. Retrospective relief for licences issued before the policy date includes permitting direct negotiation with prior RBI permission and submission of a FIRC in lieu of a BRC, permitting conversion of shipping bills under para 2.56, and allowing Advance Licences for intermediate supplies against invalidation as per para 4.13.

Use of international credit cards allowed for lawful foreign-exchange purchases; prohibited for restricted items and governed by export payment rules.
Clarifies that credit cards, ATM cards and debit cards are treated as currency under foreign exchange rules; international credit cards may be used online for transactions for which foreign exchange can lawfully be purchased, but not for prohibited items or services. Debit and ATM cards may be used for permitted foreign-exchange purchases. Authorised dealers are permitted to accept export payments by debiting an importer's credit card irrespective of the importer's presence in India, where reimbursement will be received in foreign exchange.

Levy of Special Additional Duty applies where imports have not actually borne additional excise duty, despite a nil charge.
Levy of Special Additional Duty applies to imported goods that have not in fact suffered additional excise duty under the Additional Duties of Excise (Goods of Special Importance) Act, 1957; where duty is nil and no excise has been paid, the exclusion from SAD does not apply and SAD should be levied.

Accounting standards compliance relief for banks made temporary, with mandatory adherence required thereafter.
Compliance with Accounting Standards specified in SEBI's August 31, 2001 circular is temporarily optional for banks for the financial year ending March 31, 2002 with respect to AS-17 (Segment Reporting), AS-18 (Related Party Disclosure), AS-21 (Consolidated Financial Statements) and AS-22 (Taxes on Income); banks must conform to these standards for periods commencing on or after April 1, 2002.

Clients of registered sub brokers entitled to investor protection fund compensation when the member broker defaults.
Where a member broker defaults, clients who transacted through a registered sub broker are to be treated as clients of that member and are eligible to submit claims against the Investor Protection Fund/Customer Protection Fund; stock exchanges must entertain and process legitimate compensation claims from such clients and should not deny claims solely because the dealings were through a registered sub broker.

Code of Conduct for mutual fund intermediaries mandates certification, suitability-based recommendations, full disclosures and refusal to deal with noncompliant agents.
A mandatory Code of Conduct requires mutual fund agents and distributors to protect investor interests by complying with SEBI Mutual Fund Regulations, providing full and current scheme information, disclosing material facts and risks, avoiding misrepresentation and commission-driven malpractices, maintaining confidentiality, ensuring client suitability, and obtaining AMFI certification; mutual funds must monitor intermediaries, report non-compliance to AMFI and SEBI, and refuse to deal with those who do not follow the code.

Export warehousing: list of approved places expanded to include an adjacent district to facilitate export operations.
Amend paragraph 2(2) of the Board's export warehousing circular to add District of Kancheepuram to the list of places where warehouses may be established and registered under sub-rule 2 of rule 20 read with Notification No.46/2001, citing proximity to the principal port and growing export potential; field formations to be informed and receipt acknowledged.

National Calamity Contingent Duty exemption clarified: NCCD not payable on goods exported under bond unless export fails to occur.
NCCD is treated as an excise duty and, consistent with the policy of relieving exported goods from domestic taxes, the notification permitting export without payment of duty under bond (issued under Rule 19 of the Central Excise Rules) applies to NCCD; therefore no NCCD is payable on goods actually exported under bond, but if export does not eventually take place the goods will be liable to all excise duties including NCCD.

Port services liability affirmed for Management Committee; service tax applies to its port-area clearing, forwarding and handling labour services.
Management Committee (CFH Scheme), Paradeep Port, functions like a Dock Labour Board and, because its contractors operate under permits issued by the Paradeep Port Trust and it provides clearing, forwarding and handling labour in relation to vessels and goods within the port area, it is an authorised provider of Port Services and liable to pay service tax under that head.

Custodian appointment obligations: infrastructure, insurance, bonds and liability for lost goods ensure customs compliance and security.
The guidelines require custodians to provide safe, expandable premises and modern handling equipment, insure all stored goods, obtain customs concurrence for structural changes, bear security costs, furnish office and residential accommodation and transport for Customs staff, and cover costs of posted Customs personnel. Financial safeguards include a duty bond supported by bank guarantee/Government bond or cash deposit with exemptions for government undertakings, additional bonding for export/transhipment duty incentives, and custodial liability for lost or pilfered goods; subletting requires prior Commissioner approval.

Mandatory dematerialisation of government securities: regulated entities must use SGL/CSGL/demat and stop physical trading immediately.
Regulated entities must hold Government securities only in SGL, CSGL or dematerialised accounts, with only one CSGL or dematerialised account per entity; CSGL holders must open or notify a designated funds account at a bank; entities must ensure clear funds for purchases and sufficient securities for sales before transacting, and immediate prohibition is placed on further physical-form transactions with brokers.

Disclosure thresholds under Companies Act: revised remuneration limits apply and may be used for prior year reports.
Revised disclosure thresholds for employee remuneration under section 217(2A) and the Companies (Particulars of Employees) Rules apply to Directors' Reports annexed to balance sheets for financial years closing on or after the revision date; additionally, Directors' Reports for the financial year ending 31 March 2002 may include employee details on the basis of the revised limits, as an administrative clarification for Regional Directors and Registrars.

Line of credit financing supports export contracts with buyer advance, LC-backed staged payments and inspection requirements.
Exim Bank has provided a foreign currency line of credit to Bancoldex to finance exports of listed Indian goods and related services, subject to Exim Bank approval, U.S. dollar pricing, a minimum contract value, a buyer advance and payment of the balance under an irrevocable letter of credit. Financing covers the major portion of the contract value with pre-shipment inspection and inspection certificates required. Negotiating banks may pay beneficiaries in Indian Rupees against compliant documents and be reimbursed by Exim Bank in U.S. dollars; bank charges in India are borne by the seller and those in the borrower's country by the buyer.

Customs duty on fuel: flight/IGM number change does not trigger duty for foreign going aircraft under customs law.
Leviability of customs duty on fuel and stores consumed during flights between Indian airports depends on the aircraft's status, not administrative identifiers: Circular No. 65/2001 applied only to domestic extension flights, and a change in flight number or IGM/EGM does not convert a foreign going aircraft into an ineligible aircraft for duty free supply of fuel and stores under the Customs Act and Board instructions.