Additional duty credit entitlement for flakes of potatoes exports gains extra scrip benefit from specified export date.
The amendment to Table 13 of Appendix 37A adds flakes of potatoes (ITC HS Code 110520) to the Flower, Fruit & Vegetables category, making that product eligible for an additional duty credit scrip of 2.5% over the normal VKGUY entitlement for exports made from 1.4.2008, pursuant to changes in the Handbook of Procedures, Vol. I (RE 2008) under Paragraph 2.4 of the Foreign Trade Policy 2004-09.

Sub-contracting abroad: exports from subcontractor premises allowed with declared values and ensured repatriation of foreign exchange.
Where an EOU/EHTP/BTP/STP exports goods from a foreign sub-contractor's premises it must declare at clearance the transaction value of finished goods, job-work charges payable to the sub-contractor, and the value of intermediate goods, supported by the sale price contract/invoice for finished goods, the job-work contract and the basis of valuation of intermediate goods, and ensure full repatriation of foreign exchange corresponding to the declared transaction value.

EPCG export credits exclusion: unredeemed exports cannot be counted toward average export performance for later authorizations.
Specifies that unredeemed exports made against an EPCG licence/authorization shall not be added for calculating average export performance for the purpose of subsequent EPCG authorization; the amendment to the Handbook of Procedures is issued under paragraph 2.4 of the Foreign Trade Policy and applies to EPCG licences issued on or after the effective date specified in the notice.

Deemed export benefits: consolidated monthly or quarterly claims allowed; full refund needs complete supplies and substantial payment, pro rata permitted.
Deemed export benefits under para 8.3.1 allow one consolidated application per chosen month or quarter for claims arising in respect of a particular project or recipient within twelve months; such consolidated filings for the same period are not treated as supplementary claims under para 9.4. Full TED refund requires completion of supplies and substantial payment receipt; for part payments TED is payable on a pro rata or actual basis, whichever is less, upon production of payment evidence.

EPCG export obligation: exporters must not claim duplicate incentives for the same foreign exchange; authorities to verify and recover.
Clarifies that Para 5.4(v) FTP RE2007 - barring foreign exchange counted for EPCG EO from receiving Chapter 3 incentives - applies only to exports made during 1.4.2007-31.3.2008; exporters must declare EPCG Authorisation/File No on Shipping Bills so shipments used for EPCG EO are excluded from Chapter 3 benefits. RAs must verify Shipping Bills, run a special 45 day compliance drive, report to headquarters, and recover any excess benefits through surrender/reduction of duty credit scrip, TR challan deposit, or adjustment against pending scrips. At EPCG redemption, RAs must recheck that duty credit scrip was not granted for the same foreign exchange used to discharge EPCG EO.

Served From India Scheme eligibility limited: SFIS only on foreign exchange remaining after meeting EPCG export obligations.
Service providers must apply foreign exchange earned during 2007-08 first to satisfy pending EPCG export obligations (including amounts above the average); SFIS is payable only on any additional foreign exchange from that period after meeting all pending EPCG obligations. Regional Authorities must verify pending EOs, audit compliance, report within 45 days, and recover any excess SFIS by surrendering or adjusting duty credit scrips or other means; a re-examination is required at EPCG redemption to prevent dual benefits.

Duty credit application compliance: applicants granted final extension to remedy deficiencies or face rejection of their applications.
Applications submitted between 1 May and 31 May 2008 for duty credit on exports Oct 2007-Mar 2008 must cure identified deficiencies by 31 July 2008; failure to reply will render the applications liable to rejection.

Free importability of rare earth metal compounds confirmed retrospectively, aligning import policy with removal from prescribed substances.
Imports of items under ITC (HS) Code 2846 are to be treated as Free for import. This follows the Department of Atomic Energy's removal of those items from the list of Prescribed Substances effective 01.01.2007 and Notification No. 90 (RE 2007). DGFT clarifies, as a special case with competent approval, that free importability operates retrospectively from 01.01.2007, removing earlier import restrictions on rare earth metal compounds.

Service tax registration requirements: proof of address and identity required; centralized registration needs branch-wise address proof.
Applicants for service tax registration must submit proof of identity (PAN card) and acceptable proof of the address of the premises to be registered; partnership firms must furnish the partnership deed and companies the Memorandum of Association. For centralized registration, proof of address is required for each branch included. Previously submitted documents need not be resubmitted for service additions or deletions, but address proof is required for any newly added premises. The authorized signatory must ensure all ST-1 fields are legibly and correctly completed and only legible copies are submitted.

Foreign investment in NBFCs: full foreign ownership allowed via automatic route subject to minimum capitalization, RBI compliance and subsidiary conditions.
Corrigendum substitutes the Annex entry for Sl. No. 25 to confirm NBFC activities eligible for foreign investment under the automatic route and restates the conditional framework: application of minimum capitalization norms for fund based and non fund based NBFCs with prescribed upfront and staged capital infusion, permission for wholly foreign owned operating subsidiaries subject to a specified capital infusion and subsidiary compliance, allowance for joint venture NBFCs within specified foreign holding thresholds to set up subsidiaries meeting capital inflow requirements, mandatory compliance with central bank guidelines, and ordinary shares as qualifying capital.

Sub-compounded levy on pan masala: notifications circulated for trade guidance and required dissemination among stakeholders.
Notifications 29/2008-Central Excise (N.T.), 30/2008-Central Excise (N.T.) and 42/2008-Central Excise dated 01.07.2008 concerning the sub-compounded levy on pan masala and pan masala containing tobacco are circulated for information, guidance and necessary action, with a directive that trade associations and regional advisory committee members publicise the contents among their members.

DEPB rate addition for specified glass bottles introduced with immediate effect under foreign trade policy.
A DEPB schedule addition creates DEPB Sl. No. 1029 for Glass Bottles (Non-Yellowish Pink Coloured) (Product Group: Chemicals; Product Code: 62) with a DEPB rate of 3% and no value cap. The amendment is made under the Foreign Trade Policy and Handbook of Procedures and takes immediate effect, issued in the public interest.

Message exchange protocol between Customs and CONCOR governs electronic shipping bill, cargo receipt, let export and container exit processes promptly.
Message exchange between Customs and CONCOR replaces certain physical transfers using five defined messages: Shipping Bill Information (CHCOE01), Cargo Receipt for warehouse stuffed consignments (COCHE02), Cargo Receipt for factory sealed consignments (COCHE03), Let Export Order (CHCOE04) and Export Container Exit Information (COCHE06). CONCOR accepts entries only after receiving the Shipping Bill message and within its validity; CONCOR will not amend IE code or exporter details sent by Customs. Corrections to container numbers for sealed consignments must be retransmitted by CONCOR. Customs accepts goods for examination or Let Export only after receiving corresponding cargo receipt messages.

FCNR(B) deposit interest rate guidelines consolidated and updated for applicability to scheduled commercial banks excluding RRBs.
The Reserve Bank issued a Master Circular consolidating and updating all instructions and guidelines on interest rates payable on FCNR(B) deposits issued up to June 30, 2008; the circular is directed to all Scheduled Commercial Banks (excluding RRBs) and has been placed on the Reserve Bank's website as the authoritative consolidated reference.

Interest rate guidance for rupee deposits consolidates updated instructions for domestic, NRO and NRE accounts across scheduled banks.
Consolidation of instructions updates regulatory guidance on Interest Rates on Rupee Deposits for Domestic, NRO and NRE accounts, incorporating prior circulars into a single Master Circular. The circular provides the operative provisions for calculation, notification and applicability of interest rates and is directed to all Scheduled Commercial Banks (excluding regional rural banks), with the consolidated text published on the central bank's website and a copy enclosed for compliance.

Export credit consolidation: updated master circular consolidates export credit rules and customer service guidance for scheduled banks.
Master circular consolidates and updates instructions on export credit in rupee and foreign currency and related customer service obligations for exporters, bringing together prior circulars and clarifications into a single reference. It applies to all Scheduled Commercial Banks (excluding regional rural banks) and provides banks with an updated, operative regulatory framework for extending export credit and servicing exporter accounts; the consolidated text and clarifications have been published on the central bank's website and a copy is enclosed.

Foreign contribution regulation: banks must apply enhanced due diligence and monitoring to inward contributions and ensure branch compliance.
Banks must regulate receipt of foreign contributions by applying due diligence, transaction monitoring and reporting measures under the Foreign Contribution framework; the updated instructions reiterate bank compliance obligations to detect, record and report suspicious inward remittances and require dissemination and implementation of the Master Circular across controlling offices and branches.

Factory stuffing permission on post verification basis permits issuance pending verification, subject to later revocation for defects.
Permission for factory stuffing of export goods will be issued on a post verification basis upon receipt of the prescribed application and documents without awaiting Central Excise verification; a concurrent verification request will be sent, and permissions may be revoked if verification shows nonexistence at the address or objections such as inadequate accessibility or infrastructure. This procedure applies to all categories of exporters.

FPS benefits entitlement for glass inners exported as a new focus product; entitlement applies from the stated effective export date.
Glass inners for vacuum flasks or other vacuum vessels are added as a New Additional Focus Product in Appendix 37D, Table 11 of the Handbook of Procedures, making them eligible for FPS benefits on exports effective from 1 April 2008; the amendment is made under Paragraph 2.4 of the Foreign Trade Policy.

Importer Export Code deletion removes specified entry from Handbook of Procedure under trade policy powers effective by public notice.
The existing entry for Importer Export Code No.0100000151 at Sr. No.14 of paragraph 2.8(v) of the Handbook of Procedure (Vol. I) is deleted by amendment under paragraph 2.4 of the Foreign Trade Policy 2004-2009, effected through a public notice recorded as issued in the public interest.