Export product lists revised: harmonised HS codes, maintained duty credit rates, transitional code acceptance, and 1% extra for NE land exports.
Public Notice revises Appendix 37A and 37D of the Handbook of Procedure Volume I, harmonises product descriptions and ITC (HS) codes, and publishes detailed lists of items eligible under VKGUY and FPS with specified admissible duty credit rates and bonus benefits. The changes take immediate effect; transitional acceptance of earlier ITC codes is allowed until September 2014 provided product description is accurate; eligibility dates follow inclusion or code-change dates; exports via designated northeastern LCS receive an additional 1% duty credit scrip.

Actual User condition reinstated for maize TRQ imports; importers must comply until final disposal or further order.
Importers using Tariff Rate Quota for maize must satisfy the Actual User Condition because an interim judicial order preserves that requirement; compliance remains mandatory until the writ petition is finally disposed of or a further order changes the position.

Line of Credit for project exports requires substantial India sourced supplies and GR/SDF shipment declarations.
Exim Bank's Line of Credit to Nicaragua finances eligible goods, machinery, equipment and consultancy services from India for two substations, requiring a substantial majority of contract value to be supplied from India while a minority may be procured abroad; shipments must be declared on GR/SDF forms and Letters of Credit and disbursements must occur within specified timelines tied to project completion or a fixed duration from the agreement date.

Custodian approval for transshipment granted to Air India, renewing bonded custody subject to Customs Act and transshipment regulations.
Approval is granted to M/s. Air India Ltd. as custodian of imported goods for transshipment from CSI Airport, Mumbai, the permission being time limited until 31.03.2014 following submission of an import transshipment bond; all transshipment operations are subject to the Customs Act (Chapter VIII), the Goods Imported (Conditions of Transshipment) Regulations, Board circulars and public notices, the Handling of Cargo in Customs Areas Regulations, and other applicable rules and instructions.

Kutchcha Bill of Entry procedure standardised: expedited filing, system appraisal, payment, examination and post clearance audit enforced.
Standardized procedure for Kutchha Bill of Entry (KBE) clearance prescribes eligible consignments requiring prior System Manager permission, allows filing as prior entry in absence of IGM, mandates System Appraisal with automatic challan generation, requires duty payment at designated banks before Out of Charge, assigns Shed Officer for examination against hardcopy IGM and supporting certificates, and empowers the Superintendent to grant Out of Charge after documentary verification, with originals routed to Post Clearance Audit within prescribed timelines.

FDI limits for MSEs: non resident investment allowed under Annex B and FDI policy; excess equity needs prior approval.
Foreign direct investment into companies qualifying as Micro and Small Enterprises and not engaged in activities listed in Annex A may be admitted subject to the ceilings and entry routes in Annex B and applicable FDI policy. Industrial undertakings manufacturing items reserved for the MSE sector that are not MSEs may issue shares beyond the 24 percent cap only with prior approval of the Foreign Investment Promotion Board; MSMED Act investment thresholds for micro and small enterprises are restated and FEMA-based directions are without prejudice to other approvals.

Document Management System requirement: mandatory attachment of EDI coupon to Bills of Entry and Shipping Bills for digital storage.
Implementation of a Document Management System at Custom House, Cochin and Air Cargo Complex will store Bills of Entry, Shipping Bills and related docket documents in digital and physical form. A vendor was contracted to scan and host documents on local servers. The Service Centre Operator will collect a fixed DMS fee by issuing two coupons-normal documentation and DMS-and traders must attach the EDI copy of the DMS coupon to Bills of Entry and Shipping Bills when handing over dockets after LEO/out of charge; bulk purchase of coupons from the Service Centre is permitted.

Customs Broker Licence renewal requires prescribed documentation, antecedent verification and administrative approval within the prescribed processing timeframe.
Procedure prescribes documentary prerequisites for renewal of a Customs Broker Licence under Regulation 9 of CBLR, 2013: applications within the pre-expiry window must include Form-A, proof of constitution, CHA licence copy, PAN evidence, premises proof, tax returns, performance summary, renewal fee challan, bond in Form-D, prescribed security/guarantee and solvency certificate, power of attorney documentation, identity card list, association membership proof and a declaration on constitution, accounts, pending cases and arrears; antecedent verification and administrative approval follow, with renewal intimated and approved lists displayed.

Panchnama preparation: Ensure accurate recording and seals inspection by authorized officers to preserve evidentiary value during searches.
Preparation of panchnama must accurately record the person(s) named in the warrant, the exact place authorized to be searched, names and designations of authorized officers and assisting officials, complete witness addresses, and significant events during the search including obstructions and seal inspections. When search resumes on a subsequent day, the new panchnama must reference the preceding panchnama and note inspection of seals. A copy of the warrant may be supplied on request with acknowledgment placed on file and recorded in the Appraisal Report.

Transshipment procedure: new ICES module formalises sea-to-sea container movement with permit, bond and validation requirements.
A new ICES module permits formal sea-to-sea transshipment of FCL cargo by requiring declaration of Destination Port and Destination CFS in the IGM, filing a paper Transshipment Permit request at the Gateway Service Centre with matching IGM details and a valid registered TP bond and PLA account, system validation and customs approval, debiting of bond and fees, marking of IGM lines/containers accessible to the Destination Port, and generation of a unique TP number permitting movement to the Destination Port or, for uni-modal road/rail with CFS specified, directly to the Destination CFS.

Handbook of Procedures validity extended - HBP volumes and Schedule of DEPB rates remain in force until further orders.
The Director General of Foreign Trade amends paragraph 1.1 to notify that the Handbook of Procedures volumes and the Schedule of DEPB rates shall remain in force until further orders, thereby extending their applicability beyond the prior expiry date; the DEPB scheme is excepted, having ceased operation on 30th September, 2011.

NRO account remittance reporting: monthly statements required within seven days, including NRO to NRE transfers under FEMA compliance.
Authorised Dealer Category I banks must submit a monthly statement within seven days of month end to the Chief General Manager in Charge, Foreign Exchange Department (NRFAD), Reserve Bank of India, showing number of applicants and total amounts remitted from NRO accounts as per the revised proforma. The proforma requires separate reporting of sale proceeds of immovable property, other assets and transfers from NRO to NRE account; data may be sent preferably by e mail.

Customs and excise duty changes take effect from notification publication, altering exemptions and duty rates across sectors.
Interim Budget notifications effecting customs and central excise rate changes are effective from publication in the Official Gazette. Customs measures include an extension of pulse exemption, withdrawal of CVD exemption on specified road machinery while retaining basic duty exemption, rationalised duty on certain industrial oils, duty relief for LNG in a named SEZ and remnant LNG to DTA, concessional duty for specified capital goods for a named entity, and full exemption for human embryo. Central excise measures restructure handset duty relative to CENVAT, reduce duty on machinery under Chapters 84-85, and lower duties across vehicle categories while preserving existing concessions.

Service tax exemption expanded to include rice handling, transport and cord blood bank preservation services under amended notification.
The exemption notification 25/2012 ST has been amended to exempt services of loading, unloading, packing, storage or warehousing of rice, and a circular clarifies that transportation of rice by rail, vessel or by a Goods Transport Agency is exempt as "food stuff". Milling of paddy into rice as job work is confirmed as an intermediate production process exempt under the notification. The notification also adds services by cord blood banks for preservation of stem cells and related services to the exempt list.

Service tax registration surrender requires online application, specified documents, undertakings, and cancellation after superintendent verification by T-PIN if needed.
Procedure requires online ACES filing or manual application for pre-ACES registrations to surrender service tax registration for specified reasons; submission of Annexure-I undertaking, up to six ST-3 returns, up to three years of financial statements (or income-tax returns/bank statements), and Annexure-II details of SCNs, demands, appeals and audits. Superintendent verifies dues, may require reconciliation, and cancels registration after compliance; deficiencies must be cured within 15 days and ACES credential issues are addressed via Help Desk and T-PIN.

Service tax exemptions for rice: transport, handling and milling activities exempt under specified notifications, clarified by circular
Clarification that, despite the statutory definition excluding rice, exemption notifications extend negative list benefits to rice: transportation by rail or vessel and by goods transport agency is exempt; loading, unloading, packing, storage and warehousing of rice are exempt; and milling of paddy into rice on a job work basis is exempt as an intermediate agricultural process. Further queries may be addressed to the Tax Research Unit and trade notices may be issued.

ECB reporting obligations updated to include hedge and foreign currency exposure details; monthly certified ECB 2 returns required.
The RBI revised Part E of the ECB 2 Return to require disclosure of foreign currency exposure, foreign currency earnings and expenditure, and financial hedges contracted for ECB risk management; the amended format applies from the April 2014 return. Corporates must continue monthly submission of the ECB 2 Return, certified by the designated Authorized Dealer Category I bank, to reach the central bank's statistics unit within seven working days of month end; AD Category I banks must notify their constituents. Directions are issued under the foreign exchange statutory framework.

Service tax registration: designated divisional officers to accept and process applications for quicker disposal, centralised unit disbanded.
Service tax registration and amendment applications will be processed by territorially reorganised jurisdictional Divisions through nominated officers under Divisional Deputy/Assistant Commissioners to expedite disposal and clarify taxpayer jurisdiction; the PRO Section handling centralised registrations will be disbanded and all filings handled by the listed divisional officers.

Amnesty scheme applications: designated reception on specified weekend and subsequent weekdays at Vyapar Bhawan for submission.
The circular designates operational arrangements for the Amnesty Scheme: the Amnesty Scheme Cell will be open on 15.02.2014 (Saturday) from 10:00 AM to 5:00 PM at room no. 301, 3rd floor, Vyapar Bhawan for receipt of applications, and additional receipt will occur on 17.02.2014 (Monday) and 18.02.2014 (Tuesday) from 10:00 AM to 6:00 PM at the front office, 1st floor, and at the receipt counter in room no. 301, 3rd floor, Vyapar Bhawan.

FII/QFI commercial paper investment cap reduced; new sub limit within unchanged corporate debt ceiling applies immediately.
The circular reduces the FII/QFI sub limit for investment in Commercial Papers, restricting eligible foreign investors to the newly prescribed cap while maintaining the overall Corporate Debt ceiling and separately preserving an allocation for credit enhanced bonds; the amendment is effective immediately and requires custodians to inform their clients.