Manufacture by conversion: slitting of HR/CR steel coils not treated as manufacture after judicial rulings.
Whether slitting or cutting HR/CR coils of iron and non alloy steel into sheets or strips constitutes manufacture was previously linked to classification under a different Central Excise Tariff sub heading; that administrative clarification has been set aside by judicial decision and the prior circular withdrawn, instructing field formations that such slitting/cutting will not be treated as manufacture.

Export under bond to Nepal and Bhutan covers both merchant exporters and manufacturer-exporters, clarifying procedural applicability.
Notification No. 45/2001-CE(NT) for export under bond to Nepal and Bhutan does not distinguish exporter categories and therefore applies to both merchant-exporters and manufacturer-exporters; it prescribes common dispatch conditions from the factory, approved warehouse or other Commissioner-approved premises and does not require separate procedures or definitions for merchant-exporters.

Refund and rebate sanctioning: standardized Order-in-Original issuance with targeted pre- and post-audit to improve compliance monitoring.
All refund and rebate sanctions must generally be issued as an Order-in-Original with a separate numbering series. High-value claims are to be pre-audited at Commissioner level and disposed by Deputy/Assistant Commissioners; intermediate claims must be sanctioned by Deputy/Assistant Commissioners and compulsorily post-audited by Additional/Joint Commissioner (Audit) and are subject to review under section 35E; smaller fully sanctioned claims may forgo O-in-O but are to undergo random post-audit and must generate O-in-O when not fully sanctioned. Audit cells must complete post-audit within a prescribed timeframe and maintain O-in-O records.

Additional duty of customs introduced to offset internal taxes, applied initially to ITA items and specified manufacturing inputs.
The Finance Bill, 2005 introduces an enabling levy of an additional duty of customs (up to 4%) aimed at counterbalancing internal taxes, initially applied to ITA bound items and specified inputs for IT/electronics manufacture, excluded from education cess valuation, and available as credit for manufacturers. It lowers the peak customs tariff and adjusts sectoral duties and exemptions, extends and revises NCCD, imposes excise surcharges on pan masala and tobacco, deems refining of edible oils as manufacture retrospectively, aligns tariff schedules with a new eight digit nomenclature, creates a structured recovery regime for pre cutoff AED(GSI) credits, and expands service tax scope while revising procedural and advance ruling provisions.

Additional customs duty introduced to offset domestic taxes, applied to ITA imports and specified inputs with credit available.
An enabling provision institutes an additional duty of customs to offset domestic taxes, initially applied to ITA bound imports and specified electronics inputs, excluded from education cess valuation and available as credit for excise; simultaneous reductions in peak customs rates and numerous tariff adjustments across sectors are enacted via notifications. Excise measures introduce surcharges on specified tobacco products, alter excise rates on diverse goods, and establish a time bound instalment recovery scheme for pre cutoff AED(GSI) credits. Service tax scope is broadly expanded with new taxable services, an exemption threshold for small providers, and multiple procedural and advance ruling amendments.

Tariff classification change mandates transition to eight-digit codes while preserving existing duty rates for specified commodities.
The amended Central Excise Tariff mandates transition to eight-digit classification codes with substituted First and Second Schedules; contemporaneous notifications preserve existing duty rates for specified items and substitute references in existing instruments to correspond to the amended numbering. Application of the General Clauses Act means four ancillary schedules referencing six-digit entries are to be read as referring to the amended Tariff Act and its substituted schedules; field formations must implement the change and assist trade to ensure a smooth switchover.

Margin requirements tightened: comprehensive framework mandates liquid assets to cover MTM, VaR and extreme loss margins.
Members' liquid assets must at all times cover four requirements: MTM losses, VaR margins, Extreme Loss Margins and Base Minimum Capital. MTM margins are collected before the start of the next trading day and adjusted against cash/cash equivalents; VaR margins are collected upfront at trade time against total liquid assets; Extreme Loss Margins are collected in real time. All margins are applied to the gross open position of the member with no netting across different settlements. Detailed asset eligibility, haircuts, liquidity classification, exposure limits, and shortfall penalties are prescribed.

SEZ designation expands trade facilitation: exports to SEZs eligible for DEPB and SEZ as port of registration.
Special Economic Zones notified by the Central Government are designated as specified ports for import and export and exports to SEZs are eligible for DEPB with the SEZ as the port of registration. Four Inland Container Depots (Bhusawal, Jamshedpur, Surajpur, Dadri) are added. Amendments update Council for Leather Exports details, correct "Pedicinal" to "Medicinal Plants", allow import of prototypes duty paid by Actual User industrial enterprises on self declaration, and permit advance licence transfers between company units only with Excise permission and no CENVAT claim.

Import of second hand diesel generators: units of 10 KVA and above allowed under EPCG without age restriction; smaller units restricted.
Second hand diesel generating sets of capacity equal to or exceeding 10 KVA are permitted to be imported under the EPCG Scheme without any age restriction as industrial capital goods; photocopiers, air conditioners and diesel generating sets below the 10 KVA threshold remain governed by the rules applicable to second hand goods and are not eligible for import under the EPCG provision. Licensing authorities are instructed to act accordingly.

Amendment to DEPB schedule clarifies product description for an engineering export entry to ensure accurate export benefit classification.
Correction to the Schedule of DEPB rates under the Foreign Trade Policy and Handbook of Procedures substitutes the description at Sr.No. 446 in the Engineering Product Group, Product Code 61, to read "Stainless Steel Rough/Machined Castings" as an administrative amendment to ensure accurate product identification for export benefit application.

Defaulter status access via SMS expanded; exporters can query application and default status using specified message formats.
Extension of an SMS enquiry facility permits exporters to retrieve application status by sending a message with the prefix DGFT, the first three characters of the party name and the key number, and to retrieve defaulter status by sending IEC followed by the IEC number; both queries are sent to a designated short code and yield instant automated status responses.

Line of Credit enables export finance under specific declaration, commission and approval conditions.
A Line of Credit from Exim Bank to the Government of Lesotho finances exports of capital goods, plant and machinery, industrial manufactures, consumer durables and other items eligible under India's Foreign Trade Policy; the agreement is effective from February 1, 2005 with specified deadlines for letter of credit opening and disbursement, shipments must be declared on GR/SDF Forms, and agency commission is generally not payable though Reserve Bank may permit commission up to a capped rate for exports requiring after sales service with prescribed invoice deduction and reimbursement mechanics.

Clearance of imported metal scraps: ICD Nagpur added to approved customs stations; trade must issue immediate public notice.
The Board directs insertion of "18. ICD Nagpur" into the list of authorised customs stations for clearance of imported metal scraps, following an amendment to Para 2.32 of the Handbook of Procedure; trade is to be notified immediately by Public Notice and receipt of the Circular acknowledged.

Advance Licensing Scheme: export shipments may be effected from any special economic zone, expanding dispatch locations.
The provision in Para 4.19 of the Handbook of Procedures (Vol. I) is substituted to permit export shipments under the Advance Licensing Scheme to be effected from any Special Economic Zone (SEZ), thereby authorising SEZs as valid points of export for consignments covered by advance licences.

Branch office inclusion in Appendix 28 requires an undertaking or national accreditation confirming requisite inspection facilities.
Inclusion of branch offices in Appendix 28 is allowed only if the registered office submits an undertaking that the branch has the requisite testing/inspection facilities to issue pre-shipment inspection certificates for metallic scrap, or the branch produces a certificate showing registration with the National Accreditation Body of the country of origin confirming its inspection capabilities.

Gold loan tenor aligned with SBLC validity to permit extended repayment and import-on-loan procedures for exporters.
Permits nominated agencies, approved banks, EOUs and SEZ units in the Gem and Jewellery sector to import gold on loan with a maximum tenor governed by the Foreign Trade Policy and Government notifications, presently 240 days. SBLCs may be opened by Authorised Dealers in line with FEDAI guidelines only for authorised importers and in favour of internationally renowned bullion banks, and ADs must keep documentation linking imports to the SBLC while observing other existing import and L/C instructions and obtaining any additional statutory approvals required.

Stock exchanges must file revised Monthly Development Reports covering trading, funds, complaints, arbitration, governance, listing and inspections.
SEBI prescribes a revised Monthly Development Report format organized into four sections-Trading & Ancillary Details; Investor Complaints & Arbitration; Stock Exchange Administration; and Listing & Other Information-mandates monthly or quarterly reporting based on turnover thresholds, requires soft copy submission within seven days of month end, and specifies detailed operational, fund, regulatory, grievance, arbitration, governance, listing and inspection disclosures using completed settlement data and cumulative financial year figures.

Import of metallic waste and scrap requires entry through designated ports and a prescribed pre shipment inspection certificate.
Import of unshredded, compressed and loose metallic waste and scrap is permitted only through specified ports and ICDs; a prescribed Pre Shipment Inspection Certificate is required, demanding importer details, consignment description, test details, and a signed declaration that the consignment contains no arms, explosives or radioactive contamination and qualifies as metallic scrap under internationally accepted parameters, with official seal and agency particulars.

Standard Input Output Norms update: SION entries amended and new chemical, engineering and food product norms added.
DGFT issues a public notice under the Foreign Trade Policy and Handbook of Procedures to amend, correct, delete and add entries in the Statement of Standard Input-Output Norms (SION) in Handbook of Procedures (Vol.2) 2002-2007. Annexure A records textual corrections and normative amendments to existing SION entries; Annexure B adds new chemical and allied product norms with specified input-output ratios; Annexure C adds engineering product norms with material-based import allowances; Annexure D adds a food product norm for canned mushroom. The changes alter allowed import items and quantities linked to export products and delete certain obsolete norms.

Removal prohibition for petroleum and petroleum products clarified to cover crude oil and products, taking immediate effect.
The Circular clarifies that instructions prohibiting removal from one warehouse to another apply to petroleum and petroleum products, explicitly including crude oil, thereby expanding the scope of the prior reference to "petroleum products." The clarification functions as an administrative customs instruction, effective from the stated commencement point, to be implemented by customs and warehousing authorities.