Value Based Advance Licence regularisation: small shortfalls treated under existing policy, larger shortfalls converted to quantity based entitlement.
Value Based Advance Licence import entitlement is tied to declared value addition; failure to achieve declared value addition must be regularised under Policy Circular No.28(RE-2000)/2000-2001 where shortfall in value or quantity or both does not exceed fifteen percent of the total export obligation, and licences with shortfalls exceeding fifteen percent must be converted into Quantity Based Advance Licences.

Positive value addition applies to advance licences for deemed exports, with Appendix 39 held inapplicable to such transactions.
Advance Licences for deemed exports must meet the same positive value addition requirement as other Advance Licences; Appendix 39 of the Handbook of Procedures applies only to exports to Rupee Payment Areas and is not applicable to deemed exports, a position affirmed by the Policy Review Committee and earlier Policy Division guidance.

Bank guarantee exemption for government carriers; custodians may use amended guarantees covering cargo safety to transship.
The notice exempts Central and State Government undertakings from the bank guarantee requirement for transhipment. Custodians of ICDs/CFSs acting as carriers must amend their existing custodianship bank guarantees to include transhipment safety and security obligations and inform the Commissioner; once amended, no separate bank guarantee for transhipment is required. Other carriers must continue to provide a 15% bank guarantee of bond value. The earlier public notice is amended accordingly.

Trading under normal rolling settlement: scrips moved to rolling settlement based on depository connectivity and effective dates.
Scrips confirmed by depositories as having established electronic connectivity are to trade in the normal rolling settlement mode. Eight companies with connectivity before October 31, 2001 are effective immediately from January 31, 2002; an additional set confirmed as of December 31, 2001 will be effective from March 31, 2002. The classification and effective dates follow depository-provided connectivity status for transition to rolling settlement.

Eligibility for excise concession revoked for EOUs using imported consumables; Notification No.8/97-CE benefit withdrawn for such units.
Board rescinded a prior circular extending the benefit of Notification No.8/97-CE to export-oriented units using imported consumables and clarified that the notification's benefit is not available to EOUs that use imported consumables; field formations and trade are to be informed and receipt acknowledged.

Security requirements for merchant exporters restored, no surety/security required for exporters registered with recognised export promotion councils.
Merchant Exporters registered with Recognised Export Promotion Councils are not required to furnish security or surety for export bonds; the Board restores the prior practice in respect of such registered merchant exporters. Field formations must be informed of this clarification and are required to acknowledge receipt of the Circular, implementing the restored administrative position.

Rolling settlement on T+3 required, shortening the cycle from T+5 and stock exchanges must implement the change.
Mandate to institute rolling settlement on T+3 for all listed equity securities, replacing the prior T+5 cycle, with the compulsory T+3 rolling settlement to commence on April 01, 2002; stock exchanges must implement necessary system and operational modifications to effect the shortened settlement cycle.

Scrip-wise delivery disclosure mandated; no delivery period for dematerialised scrips; close-outs use previous-day closing price.
Exchanges must publish scrip wise deliverable positions grossed across clients each trading session under compulsory rolling settlement; there will be no "no delivery" period for scrips traded in compulsory dematerialised mode, and where short deliveries cannot be purchased on a cum basis the Exchange may close out the shortfall. In rolling settlement the reference price for close out procedures shall be the previous day's closing price for the scrip.

Import sanitary permit requirement for passenger pets: permit or authorized import licence and quarantine clearance required at entry.
Passengers importing bona fide pet animals may be admitted only against an import sanitary permit issued by the Department of Animal Husbandry & Dairying or an import licence issued by the licensing authority, and only after obtaining clearance from Animal Quarantine authorities; customs field formations must enforce these requirements.

Classification of leather sandals: open-type footwear may qualify for higher drawback rates when assessed on totality of features and proof.
Admissibility of higher drawback rates for leather sandals depends on classification as Leather Sandals. A sandal is open-type footwear with an upper not covering the entire foot, composed of components such as straps or vamps, and a bottom assembly comprising insole, sole and an in-built or attached heel of minimum thickness of 10 mm; a sandal may lack a back strap. Sandals employ higher-duty inputs and greater finishing, so drawback rates and caps are higher; officers must assess goods in totality and consider documentary proof and product catalogues.

Import of cinematograph films allowed without licence, subject to exhibition certification and prohibition on pirated imports.
Importation of cinematograph films and other film formats is permitted without licence but importers must comply with applicable Indian distribution and exhibition laws, including obtaining the certificate of public exhibition under the Cinematograph Act, 1952; unauthorized or pirated films are prohibited; foreign reprints of Indian films require prior written permission from the Ministry of Information & Broadcasting, which may waive or relax requirements in the public interest.

Bond Management System centralizes bond registration and requires bond/BG debits before customs goods registration and release.
A centralized Bond Management System in the Customs EDI System will register and maintain bonds, bank guarantees and sureties, record debits/credits for electronic and manual Bills of Entry, and generate a single running bond registration number printed on assessed B/Es. The system enforces bond/BG validation and prevents goods registration or release unless bond/BG debits are completed; Appraising Officers specify bond type and amount with AC confirmation, and detailed procedures govern warehousing, provisional assessments, high seas sales valuation, EOU registration and job-work exemptions.

Inter-unit transfer of goods permitted to SEZ units under policy, allowing EOUs/EPZ/STP/EHTP to transfer or lend goods to SEZs.
Policy provisions permit EOU/EPZ/STP/EHTP units to transfer, lend or lease goods imported/procured duty free and to transfer manufactured or processed goods to SEZ units; these transfers should be allowed administratively pending formal amendment of the notifications governing the EOU/EPZ/STP/EHTP schemes, and wide publicity by public notice is to be issued with reports of implementation difficulties to the Board.

Input-output norms modification: Standard Input Output Norms amended, product descriptions revised and import items substituted under chemical products.
Exercising delegated powers under the Export and Import Policy, the Director General of Foreign Trade amends the Standard Input Output Norms for Chemical & Allied Products by deleting specified serial numbers, revising export product descriptions as set out in Annexure A, and substituting import items and allowable input quantities for listed norms as set out in Annexure B; the Public Notice directs reliance on those Annexures for the precise amended product nomenclature and input item schedules.

Amendments to Schedule XIII and differential voting rights rules circulated for administrative compliance and action.
The circular transmits a Gazette notification amending Schedule XIII to the Companies Act and a notification amending rules on the issue of share capital with differential voting rights, directing regional directors, registrars of companies and official liquidators to note the amendments, take necessary administrative action and acknowledge receipt.

Extension of export realisation period lets authorised dealers grant limited time extensions without central approval under FEMA.
Authorised dealers who handled export documents may grant time-limited extensions for realisation of export proceeds without Reserve Bank approval for consignments below the prescribed invoice threshold, provided the exporter applies, declares intent to realise proceeds, and the dealer is satisfied the delay is for reasons beyond the exporter's control; extensions may be granted in three-month increments and extensions beyond one year require that the exporter's outstanding exports remain within prescribed limits. Cases under investigation or above the invoice threshold require regional Reserve Bank approval, and suits filed abroad permit longer extensions.

Return of pre-deposits: simplified repayment procedure requires a letter, appellate order copy and TR 6 challan for refund.
Pre-deposits payable back after successful appeal or remand are to be returned as amounts other than duty. Refund applications under refund provisions need not be insisted upon; a depositor's letter plus an attested copy of the appellate order and an attested copy of the TR 6 challan suffices. Pending refund claims will be treated likewise, and bank guarantees given instead of cash deposits shall be returned. Authorities must process and settle claims promptly; deviations exposing the department to interest on delayed refunds will be viewed strictly.

Forward Contracts and risk management: authorised dealers must verify exposures, maintain board approved safeguards and report to the regulator
Authorised dealers may enter into forward and other permitted derivative contracts with residents and specified non residents under FEMA schedules, contingent on documentary verification of exposures, board approved risk management policies, and prescribed reporting to the Reserve Bank. Dealers writing options or arranging commodity hedges must ensure full coverage, obtain required one time approvals, and certify underlying exposures. Banks may open non interest rupee accounts for overseas branches, fund such accounts from overseas correspondents at market rates subject to monitoring, and undertake inter bank foreign exchange transactions within board approved limits and RBI approved open position and gap constraints.

Examination norms for export goods revised: scaled inspections by export category, sealing mandates, anti splitting and intelligence based full checks.
Revision prescribes differentiated scales of physical inspection by export category and destination sensitivity. Factory stuffed and sealed consignments and Free Shipping Bills are generally exempt unless seals are tampered or specific intelligence exists. Drawback/DEPB and EPCG/DEEC consignments to sensitive destinations face higher inspection rates; others have lower routine checks. Selected consignments require opening of a minimum of two packages with system selected package numbers; systems will flag same day or same buyer multiple shipments to prevent splitting. Amendments to critical shipment parameters after registration trigger examination. Specific intelligence permits full examination. Sealing standards and an examination report (Annexure C1) are mandated.

Filing by registered post allowed for ST 3 returns, with departmental acknowledgement and continued due date compliance.
Permits Service Tax assessees to submit ST 3 returns to the concerned Divisional Office by registered post when in person filing is difficult; the Department will acknowledge receipt of such mailed returns, but assessees must ensure the returns reach the Divisional Office on or before the due date and comply with statutory filing deadlines.