Free Sale & Commerce Certificate eligibility clarified: merchant exporters may obtain it by furnishing manufacturer details in Annexure A.
Merchant exporters may obtain a Free Sale & Commerce Certificate by providing manufacturer particulars in Annexure A of Appendix 2H; the Regional Authority will record the manufacturer/exporter name as submitted by the applicant in Annexure B, thereby satisfying the proforma requirement under Para 2.37 of the Handbook of Procedure.

Mutual funds: SEBI master circular consolidates filing, disclosure, governance, valuation, risk management and investor protection rules.
SEBI's Master Circular (as at Sept 14, 2016) consolidates mutual fund regulation: SIDs/SAIs and KIM formats, filing and update procedures, timelines and SEBI observation validity; governance rules including independent trustees, audit/valuation committees and systems audits; mandatory disclosures and reporting (monthly portfolios, half yearly financials, trustee reports, remuneration, distributor commission); operational rules on NFO periods, direct plans, single plan expense structures, minimum AUM and investor concentration limits; constrained conditions and procedures for imposing restriction on redemption; and standardised valuation, NAV publication and risk management/stress testing requirements.

Insurance requirement for Customs Cargo Service Providers reduced to reflect dwell time, aligning bonds with actual storage exposure and easing compliance.
Requirement that insurance and bond cover for Customs Cargo Service Providers (CCSPs) reflect actual storage exposure in customs areas is modified to base coverage on average storage for a ten day clearance period rather than the earlier thirty day period, with the Commissioner of Customs to specify amounts having regard to goods already insured by importers or exporters; the change aims to ease doing business and aligns with an amendment reducing bond value correspondingly.

Safety distance requirements for hazardous cargo: revised prescribed separations and storage construction standards apply to customs premises.
Hazardous imported or exported goods must be stored at approved customs cargo service provider premises in isolated, segregated locations according to hazard classification, in constructed areas with heat or fire resistant walls, RCC roofing and flooring to protect personnel; explosives are treated separately and distances to administrative buildings and to general cargo are prescribed, with IMDG Code guidance for port storage and specific statutory rules governing land-based notified areas prevailing where applicable.

Hazardous cargo separation: guidelines require specified safety distances from general cargo and administrative buildings in customs areas.
The Central Board of Excise & Customs issued Circular No. 40/2016 clarifying and modifying earlier instructions to prescribe safety distance requirements between hazardous cargo, including explosives, and general cargo or administrative buildings within Customs areas; importers, exporters and trade are notified of the updated guidelines and asked to report any difficulties to the Department.

Due date for audit compliance extended and applies to the tax audit requirement, permitting later audit and filing compliance.
The CBDT order extended the due date for furnishing income-tax returns for taxpayers whose accounts are subject to audit, and that extended due date also applies to the obligation to obtain and furnish audited accounts because the statutory "specified date" for audit is defined by reference to the due date for filing returns.

Insurance requirement for cargo service providers set to average storage value, subject to Commissioner specification and existing importer/exporter cover.
Customs Cargo Service Providers must procure insurance equal to the average value of goods likely to be stored in the Customs area for a ten day period based on projected capacity, with the Commissioner of Customs authorized to specify the amount after considering goods already insured by importers or exporters.

Incremental export incentive: guidance on issuing duty credit scrips, tightened scrutiny, and sanctions for irregular claims.
Guidance requires RAs to re-open files and issue supplementary duty credit scrips for incremental export growth after deducting initial scrips, subject to due diligence and enhanced scrutiny. It reiterates that entitlement is based on bona fide incremental exports, prohibits benefits where base-period exports were non-existent or understated to bypass checks, and mandates prescribed filing, CA certification, and single-RA processing for EDI ports. RAs must investigate multiple inconsistent applications, initiate FT (D & R) Act actions including DEL placement and penalties, report errant Chartered Accountants, and conduct post-issuance verification for high-growth claims.

Direct Port Delivery for Authorised Economic Operator: expedited DPD permission granted, with applications processed promptly by AEO cell.
Direct Port Delivery is extended to all Authorised Economic Operators (Tier 1, Tier 2 and Tier 3). AEO certificate holders wishing to avail DPD must apply to the Commissioner of Customs (NS III), JNCH; applications will be processed by the AEO Cell and the competent authority's decision communicated to applicants within a short processing period. The expedited procedure applies to all AEO holders while the procedure for 100% EOUs continues under the earlier Facility and Public Notices.

Insurance requirement for CCSPs reduced to reflect average dwell time, easing bond obligations under HCCAR.
The amount of insurance CCSPs must provide under Regulation 5(1)(iii) of the Handling of Cargo in Customs Area Regulations should be calculated by reference to the average value of goods likely to be stored in the Customs area for a period of 10 days based on projected capacity, with the Commissioner of Customs empowered to specify amounts having regard to goods already insured by importers or exporters.

Hazardous cargo storage distances defined: uniform separation requirements between hazardous goods, administrative buildings and general cargo to ensure safety.
A jointly recommended framework sets uniform separation distances for hazardous goods storage: explosives must be separated by 200 metres from administrative buildings, other hazardous goods by 30 metres from administrative buildings, and separation between hazardous and general cargo in port areas is governed by the IMDG Code. Land storage in container depots, CCSP areas and customs notified areas is governed by specific rules (e.g., Gas Cylinder Rules, Explosive Rules, Petroleum Rules), and specific rules override port rules in case of conflict.

Risk-based selectivity for PGA NOCs streamlines consignment clearance by waiving NOCs for low-risk goods under SWIFT.
Implementation of a risk-based selectivity mechanism under SWIFT routes Bills of Entry to PGAs for NOCs, but the RMS will waive PGA NOC requirements for consignments assessed as low risk and display a waiver on the Bill of Entry; manual referral of such consignments is restricted except with Assistant/Deputy Commissioner approval, and the RMS will generate documentary and inspection instructions based on PGA delegation.

Reason to believe standard must govern reopenings; increased digital-era turnover alone cannot justify reopening assessments.
Reopening past income-tax assessments is permissible only where the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment, not on mere suspicion. A rise in current-year turnover, including due to digital payment adoption, cannot alone justify reopening earlier years; Assessing Officers are advised not to reopen cases merely for that reason.

Declaration eligibility under the dispute resolution scheme determines payment obligations and treatment of related penalty appeals.
Clarifications specify that a valid declaration under the Direct Tax Dispute Resolution Scheme, 2016 is available only where the appeal before the Commissioner (Appeals) remained pending at the time of filing; appellate authorities must keep matters pending where intention to opt in is expressed. The Scheme requires payment of disputed tax and interest and, in specified cases, a portion of minimum penalty, treats linked penalty appeals as deemed withdrawn and waived to the extent provided, fixes the total income for computation as per the last appellate order on or before filing, and prescribes timelines for payment intimation and issuance of certificates and orders.

Rules of Origin verification ensures Certificates of Origin authenticity and mandates procedural referral and documentation for checks.
Verification procedures under Rules of Origin permit checks where COO genuineness is doubted, origin accuracy is disputed, or on a random due diligence basis. Specimen seals/signatures circulated by partner countries are to be held locally with a designated JC/ADC custodian for comparison; absent specimens are referred to Director (ICD), CBEC. Other verification requests require Principal Commissioner/Commissioner approval and submission of the COO, invoice, Bill of Lading/Airway Bill and Annexed information. Provisional release of goods pending verification must follow the prescribed security procedure.

Inspection without Delivery Order allowed to expedite cargo clearance; release conditioned on subsequent production of Delivery Order.
Customs officers may inspect imported goods without insisting on a Delivery Order to reduce dwell time; importers and port authorities must present goods when registered for examination, and cargo will be released only after production of the Delivery Order.

Special Advance Authorization combined with All Industry Rates enables streamlined duty drawback procedures for exporters.
Special Advance Authorization under para 4.04A of FTP 2015-20 may be issued in combination with All Industry Rates (AIRs) of Duty Drawback; CBEC circular and Customs and DGFT Notifications provide the detailed guidance and are available on the respective websites, and exporters should raise any operational difficulties with the Customs office.

Customs litigation reduction: Department withdrew 165 pending appeals and published the case list for trade information.
The Department filed applications to withdraw pending customs appeals and has obtained orders withdrawing 162 appeals and three higher-court applications; a consolidated list of the withdrawn cases has been published and stakeholders are instructed to refer to that list and report any difficulties to the concerned departmental groups or sections.

Due date for income-tax returns extended to facilitate compliance under Section 119 authority following declaration scheme timing.
The Central Board of Direct Taxes, exercising powers under Section 119, extends the due-date for furnishing income-tax returns by taxpayers whose accounts are audited, to a later date in October 2016, so as to remove inconvenience and facilitate compliance where the last date for declarations under the Income Declaration Scheme 2016 coincided with the original filing due date for Assessment Year 2016-17.

Pre-shipment inspection agency recognition: Melt Enterprises Ltd added to authorised PSIA list; instrument approvals and scope adjusted.
Pre-shipment inspection agency recognition is conferred on Melt Enterprises Ltd., UK by inclusion in Appendix 2G, authorising it to issue Pre-Shipment Inspection Certificates for a three-year period and listing approved spectrometers and survey meters for PSIC issuance. The notice also re-notifies and limits the instrument authorisation for M/s. Asia Inspection Agency Co. Ltd., Thailand to two specified Radcomm instruments, thereby restricting that agency's authorised inspection equipment.