Vostro account controls: prior RBI approval, strict credit funding procedures and mandated collateral, audit and reporting requirements.
Prior Reserve Bank approval is required for AD Category I banks to open and maintain rupee and foreign currency vostro accounts of non resident Exchange Houses; the memorandum prescribes permitted uses (primarily inward personal remittances), three funding procedures (DDA, Non DDA, Speed Remittance) with specified collateral and audit/inspection regimes, separate rupee and foreign currency accounts, strict credit basis operations with no overdrafts, documentary and AML/KYC due diligence, prudential caps and extensive internal control, monitoring and reporting (Statements A-E and annual Board approved review) to ensure timely funding, prevent concealed overdrafts and maintain compliance.

Co-licensee endorsement enables supporting manufacturers to import directly and amends existing duty credit scrips accordingly.
Licensing Authority may endorse supporting manufacturers named in shipping bills as co-licensees, enabling them to import directly; listed supporting manufacturers are deemed co-licensees under the Target Plus Scheme and existing Duty Credit scrips issued under that scheme are deemed amended accordingly.

Brand rate fixation for duty drawback permits ANF filing when All Industry Rate unavailable or lower, with supplier disclaimer.
The Handbook amendment allows fixation of a brand rate for duty drawback where the All Industry Rate is unavailable or lower than duties actually paid; applicants must submit an ANF application with prescribed documents and produce a supplier disclaimer plus a self-declaration in Appendix 22C confirming non availment of CENVAT credit.

Business support services: delivery order and inland haulage charges by shipping companies are subject to service tax.
Delivery order charges and inland haulage charges collected by shipping companies for conveyance and handling of outward postal consignments constitute distribution, management and logistics services falling within business support services and are taxable as service tax.

Line of Credit conditions require majority Indian content and specified disbursement timelines under FEMA authority.
Exim Bank provided a USD 35.20 million Line of Credit to the Kingdom of Combodia for specified projects and supplies, requiring at least 85 per cent of contract value to be sourced from India; remaining non consultancy inputs may be procured abroad. The Credit Agreement (effective January 17, 2008) sets LC/disbursement deadlines at 48 months from scheduled completion for project exports and 72 months from execution for other supplies. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use their own funds or EEFC balances for commissions, subject to AD Category I bank compliance and realization rules. The directions are issued under FEMA provisions.

Import General Manifest amendment: only carrier or carrier authorized registrants may apply; CHA may submit signed carrier applications.
Amendment of an Import General Manifest may be filed only by the carrier or a person authorized by the carrier to issue delivery orders, and that filer must be registered with Customs; a CHA may submit the application but it must be signed by the carrier or its authorized person and state reasons. The Bill of Lading is the carrier's contract of carriage and evidence of title; Customs' role is limited to duty collection and prohibitions enforcement, not resolving ownership disputes. Consignee amendments require specified documents (Bill of Lading, packing list, signed invoice) and where identity changes occur, certification or indemnity bond and supporting proof.

Container scanning protocol: unscanned, ODC and LCL containers may be cleared under prescribed reporting and examination procedures.
Where containers selected for scanning are not scanned, either because they were brought to the scan site but not scanned or because they were taken directly to the CFS, the Customs Superintendent or CFS must follow prescribed procedures: stamp "Container Not Scanned" when scanner side failure occurs; CFS must notify the Container Scanning Division and importer and either return the sealed container to the relocatable scanner or permit examination by dock officers (percentage set by AC/DC) without separate CSD NOC; ODC and LCL cargo have specified direct clearance protocols; CSD NOC is required only if scanned images are suspicious and containers are put on hold.

Refunds through ECS expanded to additional centers to broaden electronic refund processing and require disclosure in offer documents.
The circular directs that refunds in public and rights issues shall be made available through ECS at an expanded roster of bank-managed clearing centres, supplementing existing electronic refund modes such as NEFT, RTGS and direct credit. Merchant bankers must include suitable refund instructions for these electronic modes in application forms, abridged prospectuses and prospectuses/letters of offer. The extension is effective immediately and the annexure lists the centres for operational implementation.

ECS refund facility expanded for public and rights issues, mandating electronic refunds and compliance with prior instructions immediately.
SEBI, under Section 11(1) of the SEBI Act, directs that refunds in public and rights issues may be made through ECS at an expanded set of centres following consultation with the Reserve Bank of India. This builds on the January 20, 2006 circular permitting electronic refunds (including NEFT, RTGS and direct credit). Issuers and bankers must comply with the earlier circular's instructions; the annexed list of designated ECS centres and managing banks is provided and the directive is effective immediately.

Removal of initial issue expenses requires mutual funds to fund distribution costs from entry load for new schemes.
Mutual funds must not charge or amortize initial issue expenses for new schemes; sales, marketing and distribution expenses must instead be borne from the entry load. The change applies prospectively to schemes launched after the circular and will be incorporated into subsequent amendments to the mutual fund regulations, implemented under SEBI's investor protection and market regulation powers.

Classification of FII investments in debt mutual funds as corporate debt restricts further corporate debt investments until compliance.
SEBI directs that FII and sub account investments in debt oriented mutual fund units be treated as corporate debt and counted within the corporate debt ceiling; accordingly, no further investment or rollover in corporate debt is permitted until aggregate holdings comply with the corporate debt limit. SEBI also cancels separate 100% debt FII allocations, makes unutilized government securities/T bill limits available on a first come first serve basis with 15 day validity, and requires custodians to reclassify and nullify prior equity reports for such mutual fund transactions on the prescribed reporting date.

Assessment procedure for deficient central statutory forms clarified, allowing extensions, limited information requisitions, and recovery action where appropriate.
Assessments for tax periods where deadlines for submission of central statutory forms through DVAT 51 have expired should be framed; consider all forms filed within the statutory or extended period and admit post deadline forms only if an extension application was made on or before the due date (normally noted on Form DVAT 51). Assessing authorities may grant extensions on merits under the proviso to Rule 12(7), limit section 59 requisitions where complete forms exist, pass nil demand orders where information was sought but forms are not deficient, and pursue other deficiencies and recovery proceedings as prescribed by law.

Extension of TDS/TCS return due date grants additional time and waives penalty exposure for delayed filing of quarterly returns.
Under section 119(2)(a) the Board extends the due date for quarterly TDS and TCS statements for the quarter ending 30 September 2007, under section 200(3) and the proviso to section 206C(3), to 29 February 2008 and provides that delay in filing those returns will not attract penalty for that period.

Line of Credit terms require majority India sourced supplies and specified LC opening deadlines under FEMA oversight.
Exim Bank's USD 60 million Line of Credit to Myanma Foreign Trade Bank finances eligible exports for a hydropower project and other supplies, requiring at least 85% India sourced goods and services. The Credit Agreement (effective December 19, 2007) sets LC opening deadlines: 48 months from scheduled completion for project exports and 72 months from agreement date for other supplies. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC; exporters may use own funds or EEFC balances for commission remittance after realisation, subject to AD Category I bank approval. Directions are issued under FEMA sections 10(4) and 11(1).

Port clearance requirements now demand verification of statutory certificates and MMD/DGS operational permissions before issuance.
Verification of specified statutory and port permissions is mandated before issuance of port clearance. Required documents include the ISPS Certificate, Safety Management Certificate, Document of Compliance under ISM, MMD/DGS clearances for grain loading, towing, single-voyage movements and dangerous cargo under the IMDG Code, release orders for detained vessels under the Merchant Shipping Act, and proof of P&I or other port insurance coverage.

Rupee value revision of special currency basket alters settlement basis under deferred payment protocols; banks must notify constituents.
The Reserve Bank fixed a revised rupee value for the special currency basket as the valuation basis for settlements under the Deferred Payment Protocols between the Government of India and the erstwhile USSR, effective from the notified date. Authorised Dealer Category - I banks are directed to inform their constituents of the revision. The directions are issued under the Foreign Exchange Management Act and without prejudice to other statutory permissions.

Drawback claim compliance - exporters must respond to issued queries or claims will be settled on record after sixty days.
Drawback claim queries issued via the EDI system may be checked through an extended e-mail status-enquiry facility that sends automated replies with reasons for pendency. All pending queries as of the specified date were compiled on CD and forwarded to exporters' associations for circulation; exporters should contact their association or use other enquiry channels. Absent a reply within sixty days of the notice, old pending drawback claims will be settled on the basis of available records, though exporters may request an extension to keep claims pending.

Importability under Served from India Scheme limited to items freely importable under ITC(HS); restricted goods barred from scheme use.
Duty credits under SFIS and other Chapter 3 reward schemes may be used only for goods that are freely importable under the ITC(HS) Classification; imports under these schemes must be scrutinised against the FTP, Handbook of Procedures and customs notifications to ensure restricted goods are not cleared, and Public Notices or Standing Orders issued for guidance.

Access to registered premises: officers empowered to conduct scrutiny and verification under Service Tax Rules to safeguard revenue.
Central Excise Officers of Inspector rank and above are empowered under the Service Tax Rules to obtain access to registered premises of Service Tax assessees for scrutiny, verification, audit and checks to safeguard revenue; Inspectors and above in the Preventive Branch may exercise these powers across the Commissionerate, and trade bodies are asked to inform their members.

Record maintenance obligations: assessees must furnish a duplicate list of service, input and financial records when filing their return.
The substituted rule requires every assessee shall furnish, when filing the first return or by the prescribed due date, a duplicate list of records maintained for provision of services (taxable or exempt), receipt or procurement of input services and payments, receipt/purchase/manufacture/storage/sale/delivery of inputs and capital goods, other business activities, and all other financial records maintained in the normal course of business.