Special currency basket valuation revised; AD Category I banks must adopt the new rupee conversion rate under FEMA requirements.
The Reserve Bank notified a revision of the rupee valuation of the special currency basket applicable to Deferred Payment Protocols, directing Authorised Dealer Category I banks to adopt the revised rupee value for relevant settlements and to inform their constituents; the circular invokes Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and states the directions are without prejudice to other statutory permissions.

OLTAS query relocation to BCP server restores access paths and relieves primary database performance issues for tax collection reporting.
OLTAS Instruction No. 31 query access has been shifted to the Business Continuity Processing (BCP) server because concurrent access to the primary PDC database increased CPU utilisation and delayed query execution. Users must now log in at the BCP server URL where the login screen indicates certain queries and reports are disabled on the main menu. CCsIT/CsIT/Addl. CsIT and Assessing Officers are instructed to circulate this change to Assessing Officers so they can view tax collections via the OLTAS 31 menu on the BCP server.

Reimbursement of Duty (RoD) for SEZ supplies: claim process requires specified documentation and sanction within thirty days.
Reimbursement of Duty (RoD) in lieu of drawback for supplies to SEZ developers is claimable by developers using Form '1' within twelve months of payment, with staged percentage cuts for late filing. Claims must include original assessed export bill, supplier invoice under Central Excise Rules, ARE-1 if applicable, Form '2' Bank Certificate of payment, and supplier disclaimer on CENVAT. Reimbursement is on All Industry Rate or actual duty paid with original documents; the Development Commissioner processes complete claims and, if satisfied, sanctions them within 30 days, with post-sanction verifications and random checks.

PHA release order exemption: customs may release raw cashewnut imports without a re processing bond pending technical review.
Requirement for a PHA release order for raw cashewnut imports is suspended pending a Technical Committee opinion; customs shall release consignments without demanding a customs bond for re processing, while conducting random sampling and sending samples to PFA authorities for testing without delaying clearance for receipt of test reports.

Customs duty payment under EPCG now allows debiting eligible DEPB and duty credit scrips via ICES within interest free period.
Procedure permits payment of customs duty on imports under the EPCG Scheme by debiting eligible DEPB and duty credit scrips through ICES. After assessment ICES generates a TR 6 challan for full duty and gives the importer/CHA the option to pay by bank/ICEGATE or request the Appraising Officer to debit duty attributable to EPCG items from scrips within the interest free period under Section 47(2). Full or partial scrip debits are recorded on revised Bill of Entry prints; any balance remains payable via the same challan number and electronic bank confirmation is required for registration sequencing.

Focus Product Scheme entitlement extended to cricket helmets and sports gloves, enabling retroactive export incentive eligibility.
The Handbook of Procedures, Vol. I (RE 2008) Appendix 37D Table 2 is amended to add two HS classifications and to expand the product description for sports goods to expressly include cricket helmets and sports gloves, mittens and mitts. As a result, exports of cricket helmets and these specially designed sports gloves are made eligible for Focus Product Scheme benefits for exports made with effect from the operative date specified in the amendment.

Stability and retention samples re-import duty exemption allowed, FOB value excluded from NFE and benefits.
An amendment to Para 6.29.3 permits an EOU/EHTP/BTP/STP unit to re-import stability and retention samples it exported without payment of duty, on intimation to Customs; the FOB value of such samples shall not be counted for Net Foreign Exchange calculations or for entitlement to other export benefits.

Duty credit scrip entitlement for specified raw cotton exports under VKGUY created with limited temporal applicability.
Amendment adds a new VKGUY product entry for raw cotton (ITC HS Code 520100, excluding 52010020) to Table 14 of Appendix 37A in the Handbook of Procedures, Vol. I RE 2008, making such exports eligible for duty credit scrips effective from 1 April 2008, with the VKGUY product code deleted for exports on or after 1 July 2009.

Export obligation extension for advance authorisations for sugar granted without composition fee, with no further extensions beyond the deadline.
Amendment grants an automatic extension of the export obligation period for Advance Authorisations for sugar, where raw sugar was imported in the qualifying window and the obligation remains unfulfilled, extending the period until a specified deadline without payment of the composition fee; no further extension will be allowed beyond that deadline.

Duty credit scrips applicability to capital goods imports clarified; exemptions apply but user conditions and transferability differ.
Exemption under Notification No.41/2005-Cus applies to freely importable goods, including specified capital goods, imported against duty credit scrips issued under para 3.8 of the FTP, covering both para 3.8.2 and para 3.8.6. Scrips under para 3.8.2 are issued to all exporters for notified items, usable for freely importable inputs and capital goods and freely transferable; scrips under para 3.8.6 are issued only to status holders for agricultural exports, usable only for specified capital goods and equipment, subject to actual user conditions and non-transferable. Verification of scrip type and compliance with permitted use and transferability is required before granting exemption.

SFIS eligibility clarified where prior EPCG duty saved export obligation completion permits SFIS on subsequent foreign exchange earnings.
Defines "pending EO under EPCG Authorization (over and above average, if any)" as the duty-saved export obligation outstanding beyond the minimum required in the prescribed block; states SFIS may be granted on foreign exchange earned in the stated period where the duty-saved export obligation of the preceding block has been completed, making prior block completion a precondition for SFIS eligibility when residual EPCG obligations exist.

Import of construction equipment under EPCG limited to service providers when used for listed services and paid in foreign exchange.
Import under the EPCG Scheme of construction equipment is prohibited where the equipment is intended only for construction of the applicant's own factory/project; imports are allowed for service providers provided the equipment is used to supply services listed in Appendix X of the Handbook of Procedures and payment is received in free foreign exchange or in rupees deemed as such by RBI under the Foreign Trade Policy.

Diamond Dollar Account liberalisation permits authorised banks to open dollar current accounts for eligible diamond exporters under conditions.
AD Category I banks are authorised to open and maintain Diamond Dollar Accounts in US dollars as non interest current accounts for exporters meeting Foreign Trade Policy eligibility; banks must verify track record and turnover, review eligibility annually, and close non compliant accounts. Account balances attract CRR and SLR; intra DDA transfers by the holder are prohibited; firms may hold only the prescribed number of DDAs. Permissible credits include US dollar finance and export realisations; permissible debits include payments for import/purchase of diamonds, gemstones and jewellery, repayment of USD loans and transfers to rupee accounts. Monthly reporting to the Reserve Bank is required.

Eligibility for VKGUY benefits limited to handicraft products; Export Promotion Council certification required for doubtful cases.
Amendment restricts VKGUY benefits under Table 15 of Appendix 37A to exports qualifying as Handicraft Products, and provides that the Export Promotion Council for Handicraft shall certify whether an exported product is a Handicraft Product when any doubt arises.

Foreign investment caps: Government approval required when ownership or control of firms passes to non-resident entities.
Prior Government approval is required where non-resident entities acquire ownership or control of Indian companies in sectors with foreign investment caps. "Owned" means beneficial equity over 50% and "controlled" means power to appoint a majority of directors; definitions apply conversely to non-resident entities. The rule covers establishment of companies with foreign participation and transfers of ownership or control in existing companies via share transfers, mergers, amalgamations or acquisitions in capped sectors, excluding sectors permitting 100% automatic foreign investment.

Total foreign investment calculation clarified: counts direct and indirect foreign holdings and attributes downstream equity by ownership and control.
Guidelines prescribe a uniform methodology to compute total foreign investment in Indian companies by aggregating direct foreign investments by non-residents and indirect foreign investments transmitted through Indian investing companies. If an investing company is both owned and controlled by resident Indian citizens (or Indian companies ultimately so owned and controlled), its foreign investment is not attributed as indirect investment in the investee; otherwise the entire downstream investment is treated as indirect foreign investment, with a limited exception for wholly owned subsidiaries. The methodology applies at every investment stage and requires disclosure of ownership, control and inter-se agreements, while preserving sectoral rules.

Use of AIR information to identify non-filers and trigger statutory notices or scrutiny under tax assessment provisions.
Instruction No. 01/2009 directs systematic use of AIR data: where AIR has PAN and return filed, integrate into CASS for scrutiny and consider section 148 for earlier years on feedback; where PAN exists but no return, generate non-filer lists, issue query letters, process responses for compulsory scrutiny or issue statutory notices and maintain an action register; where AIR lacks PAN, distribute data to CCsIT and DAOs to issue queries, transfer identified cases to jurisdictional officers, update PAN via AIR module, and refer untraceable cases to DIT (CIB). Notices under section 148 require recorded reasons and confidentiality must be maintained.

Tracking report certification by accredited goods carrier agent accepted as valid proof of export arrival for scheme compliance.
A Tracking Report downloaded from a goods carrier's website and duly certified by the carrier's accredited/authorized agent in India is acceptable under para 3.20.3(iv) of HBP Vol. I as evidencing arrival of export cargo to the destination Focus Market. This clarification applies to exports from 1 April 2006 onwards and also to the Market Linked Focus Product Scheme under paras 3.10.7 and 3.10.8 of the FTP.

Recordkeeping obligation: specified DVAT form and statutory forms must be filed year wise and certified to supervisors.
Requirement that Form DVAT 51 and accompanying Central Statutory Forms be placed in year wise folders in dealer files, with VATOs/AVATOs and VATO/Ward in charge personally responsible for proper retention; Record Keepers and Ward in charges must submit certificates confirming that these forms have been filed in the respective year wise folders to the Deputy/Joint Commissioners.

Jurisdiction for appeals reallocated among Additional Commissioners, assigning zone based appellate, objection and administrative responsibilities.
Reallocation of jurisdiction and administrative functions among Additional Commissioners assigns zones and wards for appeals and revisions under the CST and erstwhile DST frameworks, zones for objection hearings under the DVAT framework, and specified lower limit ward appeals. Distinct portfolios are allocated: operations, customer services, policy, refunds, audit and systems; public relations, facility management, finance, recovery and forms; RTI, law and judicial, HR, coordination and enforcement; and vigilance, research, planning and internal audit. Matters already heard remain with the existing hearing authority.