Removal of warehousing requirement for export oriented units shifts compliance to mandatory digital records and procurement certificate procedures.
Mandatory warehousing obligations for EOUs, EHTPs, STPIs and similar units are removed, delicensing these units as warehouses while retaining the governing exemption notification and related compliance obligations. Units must maintain prescribed digital records based on Form A with an audit trail capturing receipts, storage, processing and removals of imported goods received on or after the effective date, provide monthly digital copies to the proper officer, and integrate existing stock data; prior processed or cleared goods need not be migrated. Procurement certificates and reconciliation procedures replace re warehousing and bond to bond movement, with inter unit transfers supported by procurement certificates and normal commercial documents.

Removal of mandatory warehousing for export units: clearance now relies on procurement certificates and reconciliation.
Removal of the mandatory warehousing licence for export-oriented units means existing licences are delicensed and units must continue to observe applicable customs notifications and the foreign trade policy. Re-warehousing certificates and forwarding-letter formalities are dispensed with; instead units must furnish procurement certificates at import, provide Bills of Entry copies to the jurisdictional office on receipt, and allow reconciliation of imports with procurement certificates, while bond closure procedures tied to re-warehousing certificates are no longer required for affected imports.

SEZ approvals and compliance: Board authorised extensions, co-developer arrangements and corporate changes under strict statutory conditions.
Board granted and rejected SEZ requests concerning extensions of formal approvals and Letters of Permission, approvals for co-developers and new sector-specific and multi-product SEZs, and corporate changes (name, shareholding, conversion, change of entrepreneur) subject to continuity of SEZ obligations, eligibility and security clearances, compliance with revenue and company laws, immediate furnishing of financial details to tax authorities and provision of PAN and assessing officer details to CBDT; certain proposals were rejected for lack of state recommendation or conflict with export policy, and cancellations of formal approvals were approved subject to DC certification on tax/duty benefits.

Acknowledgment in Form-2: issuance period extended to 30 days for July declarations under the Income Declaration Scheme.
The Central Board of Direct Taxes extended the issuance period for the acknowledgment in Form-2 under the Income Declaration Scheme, 2016 from 15 days to 30 days for declarations filed in July 2016, exercising powers under the Finance Act, 2016 read with section 119 of the Income-tax Act, 1961, in view of an earlier notification adjusting the time schedule for payment while amendments to Form-2 are being made.

Place of provision rules: freight forwarders' services taxable when acting as intermediaries; transportation to abroad not taxable.
Transportation of goods by air/sea to a destination outside India is treated as provided outside the taxable territory under Rule 10 POPS and not liable to service tax; a freight forwarder acting only as an intermediary under Rule 2(f)/Rule 9 is taxable for the facilitation service, whereas a freight forwarder acting as principal who assumes contractual liability and invoices as principal provides the transport service on his own account and such export transportation is not subject to service tax.

Annual system audit requirement expanded to commodity derivatives brokers, with Type I broker exemptions and exchange audit inclusion.
The circular prescribes annual system audit requirements for brokers and trading members of National Commodity Derivatives Exchanges, detailing audit process, auditor selection norms, and Terms of Reference, while exempting Type I brokers from standalone audits and incorporating their provisions into the Exchanges' Annual System Audit TORs; exchanges must amend bye laws and report implementation.

Common registration for first stage dealers and importers enables optional single registration and combined quarterly return.
An assessee registered as a First Stage Dealer or as an importer is exempted from obtaining the other registration and may opt for a single registration; alternatively, separate registrations remain permissible. Where a single registration is used, the assessee may file one quarterly return combining transaction details: first all First Stage Dealer transactions for the period, followed by all importer transactions in the same return table, pursuant to Notification No. 30/2016-CE (NT).

Expeditious refund processing requires complete claims, prescribed Cenvat credit statement and invoices only on request.
Claimants must file complete refund claims with an attached checklist and required records as mandated by Rule 9(6) of the Cenvat Credit Rules; Cenvat credit ledgers or statements should supply vendor, service, invoice value and tax details. A soft copy of the Cenvat credit statement in the prescribed format must be submitted at filing; physical invoices need not be filed unless specifically called for. Officers are to verify eligibility of CENVAT credit under Rule 2(1) and ensure compliance with the checklist to expedite disposal.

Sector exposure limits for mutual fund debt schemes allow increased additional exposure to housing finance companies with conditions.
Total sector exposure for debt schemes remains capped at 25% of net assets with an additional 10% permitted for Housing Finance Companies (HFCs) provided such HFC securities are rated AA and above, HFCs are registered with the National Housing Bank, and total investment in HFCs does not exceed 25% of scheme net assets; appropriate disclosures must be made in the Scheme Information Document and Key Information Memorandum.

Removal of mandatory warehousing requirements enables direct clearance to EOUs and similar units subject to procurement certificate and reconciliation.
Removal of mandatory warehousing requirements for 100% EOUs, STPIs and EHTPs is effective from 13th August 2016; re-warehousing certificates and related forwarding to Central Excise are dispensed with. In lieu, units must furnish Procurement Certificates at import or pre-authenticated Procurement Certificates, provide a copy of the Bill of Entry to the jurisdictional office on receipt of goods, and the jurisdictional office will reconcile imports with Procurement Certificates. Gate Officers may allow clearance after proper OOC.

Ind AS implementation: listed issuers receive transitional relaxations and must file Ind AS compliant comparative disclosures and reconciliations.
Listed entities with listed debt or non cumulative redeemable preference shares must publish half yearly and annual financial results in the Schedule III formats for periods ending after December 31, 2016, except as otherwise required for banking and insurance. Entities adopting Ind AS must file Ind AS compliant comparative financials, are granted specified transitional relaxations for the first half year of adoption, and must provide reconciliations of equity and net profit/loss as required by Ind AS 101.

Excise duty on articles of jewellery: procedural and compliance changes implemented via new notifications and clarifying circulars.
The CBEC accepted the Sub-Committee report and issued Notifications and Circulars implementing excise-duty measures on articles and parts of jewellery: prescribing a duty rate and classification criteria, providing specified partial exemptions for reconversion and mounting with customer-supplied items, revising SSI exemption and eligibility limits, excluding certain handicrafts, notifying tariff values and Collection of Duty rules, and amending Central Excise, CENVAT and registration/returns requirements; Circulars clarify SSI computation, audit guidelines, export procedures, general compliance procedures and enforcement measures.

Shore tank receipt quantity used as basis for customs duty on bulk liquid imports, except clearances using ship's ullage survey.
Customs duty on imported bulk liquid cargo shall be levied on the shore tank receipt quantity-the dip measurement in onshore tanks into which cargo is pumped-regardless of specific or ad valorem rates and including tariff value fixation; where cargo is cleared directly without pumping into shore tanks, assessment may be made using the ship's ullage survey report.

Accredited Client Programme facilitation: a nodal Cell appointed to assist trade with ACP/AEO implementation and queries.
A dedicated facilitation Cell has been formed to administer the Accredited Client Programme and Authorized Economic Operator programme for Bengaluru City and Air Customs Commissionerates. The Cell is headed by the Deputy Commissioner (Technical) and assisted by a Superintendent (Technical) and an Inspector (Technical) to interact with trade, receive queries and assist implementation of the Board and CBEC circulars governing ACP/AEO. Trade facing difficulties are to notify the Principal Commissioner via the Cell, which serves as the operational contact point.

Indirect Tax Dispute Resolution Scheme allows appellants to settle disputed duties by declaration, payment and obtain immunity.
The Scheme allows appellants pending before the Commissioner (Appeals) as on 1 March 2016 to file a declaration to a designated authority by 31 December 2016, pay tax, interest and 25% of the penalty within prescribed timeframes, and obtain an order of discharge. Receipt of payment leads to disposal of the appeal and immunity from further proceedings in respect of the declared dispute; payments are non refundable and discharge orders are not orders on merits. The Scheme lists specified exclusions and authorises rules and forms for implementation.

Drawback pendency clearance drive urges exporters to reply to EDI queries and submit documents or have claims processed on available information.
A special Drawback Pendency Clearance Drive requires exporters to check shipping bill status on the ICEGATE portal, reply to raised EDI queries, submit hard copy documents and Bank Realisation Certificates where applicable, and notify any difficulties to the Commissioner; unresponded claims will be settled on the basis of available information.

Closure of Customs Division shifts warehousing and ex-bond ICES processing to the customs station of import.
All tasks related to warehousing and ex-bond bill of entry on ICES will be handled at the respective customs station of import, and the standalone Customs Division office is discontinued; importers, warehouse licence-holders, customs brokers and trade members must now approach the Warehousing Section at the customs station of import for facilitation, with operational difficulties to be reported to the Deputy Commissioner (Technical) at the City Customs Commissionerate headquarters.

Voluntary dispute resolution: declaration plus payment secures closure of indirect tax appeals and immunity from prosecution.
The Scheme allows assessees with specified pending appeals to file a declaration under Form 1, pay outstanding duty and interest and a penalty equal to 25% of the penalty in the impugned order within the prescribed period, and notify the Designated Authority with proof. On receipt of payment proof the Designated Authority shall issue an order of discharge in Form 4 under the Finance Act, 2016, rendering the declaration conclusive and providing immunity from prosecution; amounts paid under the Scheme are non refundable.

Valuation of second hand machinery: require independent appraisal to determine assessable import value under customs valuation rules.
Imports of used second hand machinery are to be valued on transaction value when sale meets CVR requirements, but post-sale reconditioning and buyer-incurred costs must be included in assessable value and may preclude application of transaction value. Where transaction value and other CVR methods cannot be applied due to lack of comparable data, the proper officer may apply the Residual Method to account for condition, depreciation, refurbishment and related charges. Importations should ordinarily be accompanied by an overseas inspection/appraisement report by a Chartered Engineer or equivalent in the prescribed form; domestic notified agencies may prepare Form-B reports if needed.

Limit on Indian currency use at duty free shops aligned with RBI export/import permissions, requiring INR pricing and exchange disclosure.
The previous ceiling on payments in Indian rupees at duty free shops has been revised to align with RBI permission on carrying Indian currency across borders; DFS operators must permit purchases in Indian currency up to the RBI-prescribed limit, display prices in Indian rupees alongside foreign currencies, publish the CBEC-notified fortnightly exchange rate, update websites and notices about the facility and limit, and follow prescribed duty-free procurement procedures for excisable goods.