Port restrictions on natural rubber clarified: SEZ imports exempted while other duty exemption schemes are excluded.
Imports of natural rubber by units in Special Economic Zones are exempt from the port restrictions in the referenced notification, while imports under other duty exemption schemes, including EOU/EPZ, are not permitted; only SEZ imports may avail the exemption.

Proof of realisation format mandated for DEPBs; file-wise submissions required and closure letters issued after BRCs recorded.
Exporters must submit proof of realisation for DEPBs in the amended Bank Certificate of Exports proforma; submissions in any other format after 15th March 2002 will not be accepted. Proof must be filed file-wise without clubbing BRCs from multiple files, and exporters must take call dates for submissions. The office will issue a letter of closure for each file after taking BRCs on record; files remain pending until that closure letter is issued.

DEEC book logging: exporters must submit proof and correspondence to seek abeyance; claims alone are insufficient.
Exporters must provide detailed proof of DEEC submission and any correspondence with Customs to the Export Facilitation Cell in duplicate when seeking abeyance of a Refusal Memo; abeyance is not available on mere assertion of pending DEEC logging and is granted case-by-case by the Zonal Joint Director General of Foreign Trade.

Full convertibility of non-resident deposit schemes: NRNR and NRSR schemes discontinued and proceeds redirected to NRE/NRO accounts.
Authorised dealers and authorised banks are prohibited from accepting fresh deposits or opening new NRNR and NRSR accounts; existing NRNR and NRSR term deposits may continue only until maturity. NRNR maturity proceeds shall be credited to the accountholder's NRE account after notice or to the NRO account on request, and NRSR term deposit maturity proceeds shall be credited to the accountholder's NRO account. Premature withdrawal options remain, but reinvestment after premature closure is limited to the NRO account.

Overseas direct investment limits under automatic route increased; authorised dealer funding cap raised to a higher share of net worth.
Regulatory amendments raise the per financial year ceiling for Indian outbound direct investment under the Automatic Route and increase the permissible drawal from authorised dealers to a larger percentage of the Indian party's net worth as shown in the last audited balance sheet, effectuating liberalisation of overseas direct investment under the Transfer or Issue of any Foreign Security regulations.

Input-output norms modification updates SIONs and adds sectoral input schedules, conditional allowances and accountability rules.
The DGFT Public Notice amends the Handbook of Procedures, Vol. II by revising, adding and deleting Standard Input Output Norms. It substitutes detailed componentised norms, inserts new SION entries across Chemicals, Engineering, Food and Textile groups, corrects descriptions and trade names, and prescribes conditional allowances (paint as percentage of FOB, fuel under authorised use) and accountability requirements for net-to-net import of components.

Electronic Clearing Service for dividend payments promotes direct electronic transfer to shareholder bank accounts, reducing remittance delays.
Promotion of electronic transfer for dividend disbursement urges listed companies to use Electronic Clearing Service (Credit Clearing) and to encourage shareholders to provide authorisation to remit dividend directly to designated bank accounts by electronic transfer to reduce remittance delays.

Prepayment from EEFC accounts allowed with central bank approval to facilitate early repayment of external commercial borrowings.
Reserve Bank permits corporate borrowers to prepay External Commercial Borrowings from EEFC account balances with Reserve Bank approval and will consider, on a case by case basis, allowing crediting of higher percentages of export proceeds to EEFC accounts to facilitate such prepayment; applications must be made to the Chief General Manager, Exchange Control Department using the annexed proforma.

Use of foreign exchange for corporate donations to fund overseas academic chairs requires Reserve Bank approval and specified documentation.
Indian corporates with established track records may contribute funds from their foreign exchange earnings to set up chairs in educational institutions outside India, subject to Reserve Bank of India approval on a case-by-case basis. Authorised dealers must forward applications to the Chief General Manager, Exchange Control Department, including details of foreign exchange earnings for the last three years, a brief company background, particulars of the proposed chair, and likely benefits to the corporate.

Operating lease remittances for aircraft permitted after verification of civil aviation approvals, while purchase-option leases need prior central bank approval.
Authorised dealers may remit lease rentals and open letters of credit as security deposits for import of aircraft, engines or helicopters on operating lease after verifying requisite approvals from civil aviation authorities; financial leases with purchase options continue to require prior Reserve Bank approval under the Foreign Exchange Management framework.

Service Tax expansion: new service categories and corporate banking providers now liable under widened tax net.
Budget 2002-2003 proposals rationalise indirect tax structure: excise rates moved toward 16% CENVAT with specific items reclassified, textile levies restructured (12% on processed fabrics and garments, withdrawal of certain exemptions, abolition of optional compounded levy), narrowed permitted power use for hand-processed fabrics, petroleum duty composition revised and regional concessions for North East refineries; customs peak rate set at 30% with targeted duty adjustments, Transfer of Residence limits increased and exemption-clarifying powers expanded; service tax coverage widened to multiple new services and corporate banking providers, with obligations on commissioners to identify assessees and submit price data under prescribed formats.

Excise and Customs Rate Rationalisation expands standard CENVAT coverage and broadens service tax liability across new services.
Finance Bill, 2002 revises excise, customs and service tax frameworks by rationalising ad-valorem excise rates toward a standard CENVAT rate, reallocating items between duty categories, tightening exemptions (notably in textiles and hand-processing), adjusting petrol and HSD duty composition, and reissuing Central Excise and CENVAT Rules. Customs duty peaks and specific tariffs are restructured with targeted increases and reductions, new criteria introduced for certain imports, and administrative powers expanded to clarify exemptions and set tariff values. Service tax is extended to multiple new services and corporate banking providers, with guidance and reporting obligations for administration.

Excise and customs rate rationalization expands indirect tax base and extends service tax to numerous new services.
The Finance Bill, 2002 proposes comprehensive indirect tax reforms: consolidation and adjustment of excise duty rates with revised exemptions and textile-specific measures; restructured petroleum excise components and regional refinery concessions; customs tariff reductions and selective rate increases with revised concession limits; expanded scope of service tax to specified new services and corporate providers of financial services; enhanced administrative powers to clarify exemptions and revised appellate and review timelines; and mandatory price-data reporting to assess price and revenue impact.

Valuation based on statutory MRP requirement: MRP-printed goods follow section 4A, others valued under section 4.
Valuation of notified excisable goods depends on whether the manufacturer is statutorily required under the Standards of Weights and Measures Act or other law to declare the retail sale price on the package. If a statutory MRP printing obligation exists, valuation follows Section 4A; if not, valuation is to be done under the general provisions of the Central Excise Act (transaction value or tariff value as applicable). Exemptions in the Packaged Commodity Rules and state metrology clarifications determine mixed assessments, and failure to print a statutorily required MRP may attract confiscation.

Modvat/Cenvat credit entitlement: full SSI exemption precludes credit; manufacturer must reverse credit or pay duty on exempted goods.
Manufacturers opting for full SSI exemption are not entitled to avail Cenvat/Modvat credit on inputs used for exempted goods; Rule 6 of the Cenvat Credit Rules does not apply to such exempted clearances. If cenvatable inputs are used in exempted production, the manufacturer must either reverse the credit on those inputs or pay duty on the finished exempted goods.

FII trading in exchange traded derivative contracts permitted subject to position limits and custodians must notify FII clients.
SEBI permits Foreign Institutional Investors to trade in all exchange traded derivative contracts on recognised exchanges, subject to position limits, and directs custodians to notify their FII clients while referring to the detailed position limit framework in the referenced circular.

Third-party certification under statutory authority not treated as consulting engineer service; non statutory inspections remain taxable.
Certificates and inspections performed under the authority of any statute, international protocol, convention or code are not to be treated as consultancy, advice or technical assistance and thus are not taxable as services of a consulting engineer. Inspections or surveys undertaken by an agency for issuing such statutory certificates are likewise non taxable; however, any inspection, survey, assessment, technical assistance, consultancy or advice provided outside statutory authority, or preliminary inspections by a different agency that amount to assistance, will be taxable under the head Consulting Engineer. Each case must be decided on facts, contractual terms and applicable statutory or international provisions.

State of Origin Codes must match RBI BSR list; exporters and officers must ensure correct codes for export reimbursement.
Exporters and Customs House Agents must declare the State of Origin on shipping bills using the Reserve Bank of India Basic Statistic Return (BSR) State codes. Assessing and examining officers are required to verify that the correct notified BSR codes have been entered, since Ministry of Commerce uses these codes to determine State export values for ASIDE disbursements. The Board requests re-notification of the prescribed State codes by Public Notice and administrative measures to ensure only correct codes are used.

Excisability of Hot Asphalt Mix clarified: preparation is not manufacture, so it is not an excisable commodity.
The Ministry of Law concluded that preparing Hot Asphalt Mix does not constitute manufacture under Section 2(f) of the Central Excise Act and, applying the rule of strict construction in fiscal statutes, the Board directed that Hot Asphalt Mix is not an excisable commodity, with pending disputes and assessments to be settled accordingly.

Custodian liability for import/export cargo established; custodian must comply with statutory duties and pay duty for pilfered goods.
Appointment designates a government container operator as the custodian of imported and export cargo at the ICD, Jamshedpur, responsible for custody until clearance, warehousing, or onward shipment and for performing stuffing, accountal, customs examination facilitation, transportation and safe delivery of customs-sealed containers; the custodian must comply with statutory duties and, if goods are pilfered or lost while in custody, is liable to pay duty assessed as of the date of delivery of the import manifest or report; the appointment is for a fixed term subject to review and may be terminated after reasons and opportunity to be heard.