Import restriction on specified polyester items enforced to prevent mis-declaration and ensure correct tariff classification.
Importation of polyester items under Exim Codes 5402 44 00 and 5402 47 00 is restricted; authorities report these items are being mis-declared and imported under incorrect classifications. Licensing and customs authorities are directed to enforce strict adherence to the import policy and to prevent imports entered under wrong Exim codes.

Definition of fish or fish products clarified-includes marine species; cash-payment exception under rule 6DD applies to producers only.
The circular clarifies that the cash-payment exception in rule 6DD(e)(iii) applies to purchases of fish or fish products, including marine products such as shrimp, prawn, cuttlefish, squid, crab and lobster, and that "producers" include fishermen and headmen who sort catches at the seashore; the exception does not apply where the seller is only a trader, broker or middleman.

Development Council for Sugar Industry established under Industries (Development and Regulation) Act, constituting central, state and industry representatives.
Establishment of a Development Council for Sugar Industry under the Industries (Development and Regulation) Act and the Development Councils (Procedural) Rules, with a limited duration, and constitution of the Council by appointment of a Chair, Member Secretary, central government officials, research institute directors, industry association presidents, cooperative leaders and nominated members to provide sectoral coordination and governance.

Export control for military stores: exports require No Objection Certificate from Department of Defence Production and must be blocked otherwise.
Export of goods that are apparently military stores requires a No Objection Certificate from the Department of Defence Production under the ITC(HS) classification, except for items listed as freely exportable in Export Licensing Note 1; Customs and all export units including EOU, EHTP, STP and BTP must not allow such exports without that certificate.

TED refund eligibility for vehicle manufacturers permitted when dealer and EPCG holder affidavits confirm no duplicate claim.
Manufacturers of vehicles may obtain TED refund for deemed export supplies to EPCG Authorization holders even when supplies and excise invoices are routed through dealers, provided they submit affidavits from both the dealer and the EPCG Authorization holder confirming no claim for TED. Each affidavit must state the dealer's excise invoice number and the vehicle chassis number, and these affidavits are required in addition to other documents prescribed under the Foreign Trade Policy and Procedures for deemed export benefits.

Special currency basket valuation revised for deferred payment protocols, requiring authorised dealer banks to apply the new rupee value.
Revision of the special currency basket rupee valuation for the Deferred Payment Protocols between the Government of India and the erstwhile USSR is directed; Authorised Dealer Category - I banks must adopt the revised rupee value in relevant transactions and notify their constituents. The circular is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and is without prejudice to other statutory permissions or approvals.

Valuation of second hand machinery requires independent engineer certificate; customs may reject declared value under Rule 12.
Importers must submit a certificate from an independent chartered engineer (or approved inspection agency where load port certificates are absent) stating new price in year of manufacture, current CIF value if new, year of manufacture, supplier's sale price, present condition, details and cost of reconditioning/repairs (including dismantling) and expected residual life; assessing officers will examine these documents and NIDB data to accept the declared amount as the transaction value or reject and re determine value under Rule 12 of the Customs Valuation Rules 2007.

Cross margining facility extended across cash and derivatives, enabling client-level margin offsets and reduced spread margin benefits.
SEBI extends cross margining across exchange-traded equity cash and equity derivatives to all market participants, allowing offset of specified derivative and underlying cash positions (with prioritized matching and eligible replicated baskets) to reduce aggregate margin. A spread margin is levied on eligible offsetting positions and benefits are computed at client level in real time and passed to clients; institutional investors receive benefits after trade confirmation. Clients may use arbitrage and non-arbitrage accounts under a unique client code. Exchanges must update systems, rules, and agreements; in default exchanges may hold or liquidate cross-margined positions and apply proceeds across segments.

Transfer of files requirement: VAT dealer files must be physically moved within three days after address amendment.
Once an amendment application is approved and the new address is entered in the Registration Certificate and DVAT software, the Ward VATO must effect physical transfer of the dealer's file to the ward/zone of the new address within three days; the same applies to transfers to Special Zone/KCS. VATO (CRC) must transfer files to the concerned ward VATO immediately after completing new dealer registration in CRC.

EPCG export obligation relief: proportional reduction permitted where sector exports declined, and authorities must re fix obligations.
Relief permits EPCG Authorization holders in sectors with export declines over five percent to receive a proportional reduction in the Annual Average Export Obligation for 2007-08; Regional Authorities are directed to re fix obligations for EPCG Authorizations for 2007-08 in accordance with the enclosed list of affected product groups and percentage declines.

Vostro account rules: extended float period and reduced collateral requirement ease operational obligations for non resident exchange houses.
Amendments change operational rules for Vostro accounts of non resident exchange houses by extending the permissible float period for transfers into the designated drawee account and by reducing the collateral coverage requirement under the Non DDA procedure; collateral may be maintained as a cash deposit or as a bank guarantee from an international bank of repute.

Compounding of offences: revised compounding amounts with mandatory pre application payment and expedited disposal timelines.
Amendments revise the compounding amount downward and provide that where multiple offences relate to the same goods with identical duty evasion, drawback, exemption or market value, the higher prescribed compounding amount applies. Applicants must pay duty, penalty and interest before applying; the application form is amended to ensure such payment. Applications are to be disposed of normally within three months, with one month stages for report, hearing and disposal and an overall six month limit. Compounding is barred where contradictions, inconsistencies or incompleteness exist, and publicity of reduced amounts and written compounding offers are required.

Amendment to import application form: updated declarations and mandatory documentary requirements for restricted items' import applications.
Amendment of the import application form ANF 2B prescribes updated information fields including IEC, applicant and submission details, fee particulars, CIF values, item descriptions with ITC (HS) codes, prior import and purchase histories, and special data for ammunition, aircraft and gifts. It mandates declarations undertaking truthfulness, compliance with FT(D&R) Act, FTP, HBP and ITC (HS), certificatory statements on penalisation, caution lists and default status, SCOMET and RCMC compliance, and authority to sign. Guidelines require submission procedures and specified supporting documents.

Dematerialisation requirement enables shift from trade for trade to rolling settlement upon certified demat status and no other grounds.
Exchanges may shift specified securities from Trade for Trade Settlement to Rolling Settlement only if at least half of non promoter holdings are dematerialised and the issuer furnishes a certificate from its Registrar and Transfer Agent (or, if no RTA, from a practicing Company Secretary/Chartered Accountant), and provided there are no other grounds for continuation of Trade for Trade Settlement; exchanges must report actions taken in the Monthly/Quarterly Development Report.

Employee remuneration not taxable as business auxiliary service: commissions within employment duties excluded from service tax.
Amounts paid by an employer to employees, including directors, that are remuneration for duties performed within the terms of employment - even if termed 'commission' and whether performance-linked or tied to financial results - are part of the employer-employee relationship and are not taxable as 'commission' under the definition of Business Auxiliary Service for service tax purposes.

Bad debt deduction scrutiny: allow bank claims only when statutory provision and accounting conditions are satisfied.
Deductions by banks under Profits and Gains must be allowed only after verification. Bad debt claims under Section 36(1)(vii) require writing off and prior debit to the Provision for Bad and Doubtful Debts; only amounts exceeding the opening provision balance are allowable and limits under Section 36(2)(viia) apply. Head office expenses for foreign banks must meet Section 44C, arm's length and DTAA conditions. Interest embedded in capital purchase of securities is not deductible; expenditures related to exempt income are barred by Section 14A, and other statutory timing and payment rules (Sections 43B, 35DDA, 37, 145) govern allowability.

Export obligation monitoring required for advance authorizations on imported drugs; regional authorities must initiate action after maximum fulfillment period.
Advance Authorization for import of approved and unapproved drugs allowed without registration is subject to a pre-import condition and a six-month export obligation from first import; authorization validity is twenty-four months with possible six-month revalidation so the maximum period for fulfilling the export obligation may extend to thirty-six months from grant. Regional Authorities must monitor E.O. compliance and initiate appropriate action immediately after the maximum period for fulfillment expires.

Dematerialisation requirement: shift from trade for trade to rolling settlement permitted if majority non promoter holdings are dematerialised and both depositories connected.
Companies with connectivity to both depositories may be shifted from trade for trade to rolling settlement if a majority of non promoter holdings are dematerialised, evidenced by a certificate from the Registrar and Transfer Agent or, if no RTA exists, from a practicing Company Secretary or Chartered Accountant, and if there are no other grounds to continue trade for trade treatment; stock exchanges must report such actions in their development reports.

Utilization of accumulated CENVAT credit remains available for service tax payments where no express statutory prohibition exists.
The amended CENVAT framework for taxpayers not maintaining separate accounts offers either a presumptive payment on the value of exempt supplies or payment equal to attributable CENVAT credit for exempted goods and services. Many taxpayers had accumulated CENVAT balances at the time of amendment; in the absence of an express prohibition or lapsing provision, taking and utilization of CENVAT credit is a substantive right and such accumulated balances are not to be treated as barred from post amendment use.

NOC waiver for drug exports where drugs are listed in the pharmacopoeia or approved by the national drug regulator.
Customs will not require a separate NOC from the Assistant Drug Controller at ACC for export consignments of drugs that are either listed in the Indian Pharmacopoeia or approved by the Drug Controller General of India; port-level attestation by Drug Controller Officers should not be insisted upon during export clearance.