Foreign direct investment: consolidation permits conversion formulas for convertibles and non cash equity issuances, easing investment rules.
Consolidated FDI Policy allows companies to use a conversion formula for pricing convertible instruments under FEMA/SEBI pricing rules; permits equity issuance against import of capital goods and pre operative expenses under the Government route; removes prior approval for investments in existing joint ventures/technical collaborations in the same field; simplifies downstream investment classification into foreign controlled and resident controlled companies; and allows FDI in seed development and production without controlled conditions.

Modification of SIONs expands export packing options and adds an alternate input for plastic product manufacturing.
Amendments to SIONs in the Handbook of Procedure permit All Plastic (PVC) Playing Cards to be exported either packed in relevant plastic cases or without plastic cases, with a Note allowing packing material only when cards are packed in plastic cases. Separately, SION No. H-51 adds Methacrylic Acid as an alternate import input to Acrylic Acid for Import Item No. 2(b) at the same specified quantity. Other descriptions and quantity permissions remain unchanged.

SCOMET export licensing: revised ANF 2E required for all SCOMET licence applications filed from 1 April 2011.
The Public Notice mandates a revised Aayat Niryat Form 2E (ANF 2E) as the required application for SCOMET export licences effective 1 April 2011; the new form is simplified, includes a revised Declaration/Undertaking, and is supported by detailed Guidelines requiring applicant, item, shipment, buyer/consignee/end user, bank and producer details, plus prescribed supporting documents such as original End User Certificates and Bills of Entry, and compliance with the Foreign Trade (Development & Regulation) Act and related policy provisions.

Technical expert evidence: obtain and disclose expert opinion before framing assessments in complex, high revenue tax cases.
Assessing Officers must obtain and record formal technical expert opinions and technical evidence in assessments involving complex technical issues and substantial revenue, identifying such cases early and initiating proceedings before limitation. CCIT/DGIT shall monitor complexities and assist in securing timely expert opinions; evidence must be provided to the assessee with a reasonable opportunity before assessment. After referral, Board must be informed via Member (IT) with case particulars, expert details and tax effect.

ICES 1.5 migration: new CFS codes issued; stakeholders must adopt updated codes and report implementation issues.
Migration to ICES 1.5 requires new standardized codes for Container Freight Stations; the notice lists the allocated code for each CFS and directs Port Terminals, CHAs, carriers, shipping agents and console agents to adopt these codes in the customs EDI system, with stakeholders asked to report any implementation difficulties to the issuing office.

Discontinuance of FII securities-lending reporting; reporting withdrawn as no outstanding short positions while synthetic short prohibition persists.
The circular withdraws the weekly reporting obligation for Foreign Institutional Investors on securities lent abroad because there were no outstanding short positions as of March 04, 2011; the prohibition on synthetic short positions remains in force and custodians must inform their FII clients.

ICES transition procedures: manual registration, inspection and out of charge allowed pending system migration and regularisation.
Interim procedures for ICES 1.5 migration permit manual registration, examination and manual Out of Charge where system-generated challans, payment entries or prints are unavailable. Shed AO/Supdts may verify duty payment by receipted bank challan, record examination on the hard copy of the assessed Bill of Entry, endorse the Bill for delivery and maintain a register and supporting documents to regularise records in the system after migration. All manual processes must be regularised post-migration and compliance reports submitted to DC/AC (Import Docks).

Manual IGM filing required during ICES upgrade; EDI re-filing via ICEGATE mandatory when system resumes.
During the ICES 1.5 upgrade outage, manual IGM filing will be used with Import Noting Section issuing sequential manual IGM numbers; manual IGM dates and Entry Inward dates will be legally recognised, but carriers who file manual IGMs must re-file the IGM via ICEGATE when EDI resumes and all manual entries must subsequently be entered into the system. Transshipment permissions will be issued manually following prescribed forms and submission of carrier authorisations and landing certificates for bond re crediting; boarding officers will manually endorse Entry Inwards and Outward Sailing Reports and maintain registers for later reconciliation.

Transshipment procedure: simplified ramp-to-ramp transfer for eligible pre-sorted international cargo under CTM and supervision.
Simplified transshipment permits ramp-to-ramp or tail-to-tail transfer of international transshipment cargo in pre-sorted containers that do not require segregation, under preventive supervision, on payment of MOT and subject to the Cargo Transfer Manifest (CTM) procedure, without routing such consignments to cargo warehouses; containers requiring segregation continue under existing procedures.

Removal of Chartered Engineers Certificate requirement for certain export consignments permits sample testing and accepts inhouse test reports.
The requirement for a Chartered Engineers Certificate for each export consignment under Advance Licence/DEEC Scheme is deleted from the Annexure to Public Notice No.100/2010 and Public Notice No.02/2011. Sealed samples may be sent for testing when necessary, and recognised exporters' inhouse Test Reports will be accepted.

Customs cargo service provider obligations now require specified infrastructure, security, insurance and bonds before handling import or export goods.
Amendments require Customs Cargo Service Providers to fulfil specified infrastructure, security, operational and financial conditions before custody or handling of imported or export goods, including provision of specialized premises and equipment, EDI and office facilities, residential and transport arrangements for Customs staff, insurance, bonds and bank guarantees, publication of a Schedule of Charges including on their website, indemnity to the Commissioner, and strict compliance with safety, security and hazardous goods handling standards and contingency arrangements.

SEZ approvals and conditions: conditional formal approvals, co-developer review, authorized operations, and restricted import safeguards.
The Board of Approval processed SEZ proposals by granting, deferring or rejecting formal approvals and ancillary requests with specific operational conditions: State recommendations and DC certificates were required for consideration; co-developer approvals mandated lease/co-developer documentation review and did not alter tax treatment of lease rentals or premiums; authorized operations were approved subject to development guidelines and DC monitoring; imports of restricted items were permitted only if sourced from outside India, used exclusively for export production, with no DTA procurement or sales and DC safeguards to prevent leakage; contiguity relaxations and land de-notifications were conditioned on physical measures, non-precedential treatment and refund of tax/duty benefits.

Branded goods excise: tariff value reduced, wholesale price deemed where RSP absent and brand owner bears liability.
Notifications of 24 3 2011 reduce tariff value for goods in Chapters 61-63 from 60% to 45% of RSP and deem the manufacturer's wholesale price to be the tariff value where RSP is not affixed on clearance to a brand owner; duty on actual RSP becomes payable when the brand owner affixes RSP. Returned duty paid garments are exempt up to 10% of prior year clearances subject to 48 hour intimation, record keeping and non availment of earlier Cenvat credit. Brand owners are primarily liable to register and pay duty; SSI eligibility is computed on tariff value and Cenvat credit remains claimable under existing rules.

Branded goods levy clarified: tariff valuation, registration duties, and exemptions for returned duty-paid stock established.
Notifications dated 24 March 2011 revise excise and customs treatment: tariff valuation for branded garments/made-ups reduced to 45% of RSP and wholesale price deemed tariff where RSP is undisclosed; returned duty-paid stock exempt up to 10% of prior-year clearances subject to procedure and non-availment of Cenvat; brand owners are primarily liable unless a job-worker is authorised; SSI eligibility computed on tariff value. A one percent excise regime for 130 items includes simplified compliance for exclusive manufacturers; mobile handsets and silicon wafers receive distinct treatments. Customs exemptions, concessional rates for printer parts, CKD kit duty adjustments, and a five percent CVD parity rule where Cenvat is availed are also clarified.

Officer in default: prosecution limited where directors lacked knowledge or consent and acted within Board process.
Penal proceedings under the Companies Act should target those legally designated as officer in default or otherwise liable; nominee, independent, government or institution nominated directors are not to be held liable for company breaches occurring without their knowledge attributable through Board process or without their consent or connivance, or where they acted diligently. Registrars must verify resignations, nominee status in company filings, timing of offences, and any Board allocations of responsibility, consult registry records, avoid wrongful prosecution, and refer doubtful cases to Regional Directors for guidance and review of pending matters.

Committee on Disputes clearance no longer required for government or public enterprise litigation; appeals may proceed.
Following a Supreme Court decision on 17.02.2011, field formations need not obtain Committee on Disputes clearance to pursue appeals or litigation between government departments and public enterprises; proposals pending with the Committee and undecided as of that date are deemed covered and do not require COD permission.

Compliance approval requirement for market-related news: employees must get Compliance Officer sign-off or face regulatory liability.
Employees of SEBI-registered market intermediaries must forward market-related news only after approval by the concerned Compliance Officer; non-compliance by employees and breaches by the Compliance Officer attract liability. Stock Exchanges and Depositories must notify participants, amend bye-laws/rules for uniform implementation, publish the circular on their websites, and report implementation status to SEBI.

Service tax refund claims by exporters with local registered offices may be filed with the designated service tax division.
Service Tax refund claims under Notification No.17/2009-ST, other than those in para 2(b), may be filed by persons, entities or merchant exporters whose registered or head office is situated in the specified districts with the Assistant Commissioner or Deputy Commissioner, Central Excise, Service Tax Division in the designated locality; trade associations and chambers are requested to publicize this filing clarification pursuant to the Notification.

Deemed export documentation: Range officers to attest quintuplicate ARE-3 and invoice copy so suppliers can claim export benefits.
Suppliers clearing goods to EOUs may file Form ARE-3 in quintuplicate with an extra invoice copy to claim export benefits; Range Officers shall verify supply details, attest the quintuplicate ARE-3 and the additional invoice copy, and return the endorsed documents to the supplier to enable availing export incentives, consistent with the Board's practice for the optional fifth copy used in bonded exports.

Timely Action Taken Notes must be furnished irrespective of litigation, with mandated internal tracking and reconciliation mechanisms.
The Board prescribes a time bound procedure for preparing and submitting ATNs/ATRs to C&AG irrespective of litigation, with specified internal transmission deadlines, Commissionerate replies in a prescribed proforma, compilation and Member (Customs) approval prior to submission, and follow-up to accommodate C&AG vetting and subsequent queries.