Track and Trace: exporters may follow importing country mandates and seek barcode exemption via Pharmexcil, subject to tertiary packaging barcode rule.
Exporters may follow an importing country's mandated packaging or identification requirements instead of certain Indian bar coding stipulations, and may apply to Pharmexcil for exemption from the Government of India's bar coding requirement; Pharmexcil will decide applications case by case with prior Government approval. Notwithstanding any exemption, tertiary level packaging must include additional barcode printing as required by Para 2(i)(c). All other terms of the earlier Public Notice remain unchanged.

ILC registration deadline extension allows late registration for pre-notification letters of credit with prescribed ANF-2D and fee.
Under the FTP hardship mechanism, the Directorate relaxed the registration of ILCs within 15 days requirement for importers who finalised ILCs before the notification date and allowed these importers to register with their jurisdictional Regional Authorities by 30 April 2016 upon submission of ANF-2D with the prescribed fee.

Tariff and procedural reform to promote domestic manufacturing and streamline customs and indirect tax compliance.
Measures combine tariff adjustments and targeted exemptions to promote domestic manufacturing, alongside customs and indirect tax procedural reforms to reduce compliance costs. Customs modernization includes expanded electronic filing, Single Window message exchange with regulatory agencies, mandatory digital signatures, reduced documentary requirements and Customs Clearance Facilitation Committees. Central Excise and Service Tax reforms provide expedited registration, electronic invoicing and records, extended CENVAT time limits, e-payment of refunds and instalment payment of arrears. Governance measures include upgraded web services, raised appeal thresholds, audit rationalisation, penalty rationalisation and expansion of Advance Ruling eligibility.

Perquisite exemption: employer-paid medical treatment at approved hospital not treated as taxable perquisite for specified illnesses.
Approval is accorded to Shri Sai Hospital, Patna, under the proviso to clause (2) of Section 17 read with Rule 3A(1) & 3A(2) so that any sum paid by an employer for medical treatment at the hospital for the specified diseases and ailments listed under Rule 3A(2) shall not be treated as a perquisite for the purposes of Sections 15, 16 and 17 of the Income Tax Act, 1961, subject to the qualifying durations and compliance conditions set out in the Rules.

MEIS eligibility: Tamarind Kernel Powder is classified under 13023290 and not eligible for MEIS benefits.
Clarification that Tamarind Kernel Powder is classifiable under ITC(HS) Code 13023290 and is not eligible for MEIS benefits; Regional Authorities and Customs are directed not to grant MEIS on this product and to review and recover any wrongly allowed benefits.

Foreign Tax Credit rules proposed: draft uploaded for stakeholder consultation, inviting written submissions to designated contacts.
Proposed procedural rules set out the mechanism for grant of Foreign Tax Credit under domestic provisions implementing tax-treaty or unilateral overseas tax relief, specifying required documentation, submission channels and administrative procedures. The draft has been published for stakeholder consultation with written comments invited to designated email and postal addresses within the stated consultation period, and the Central Board of Direct Taxes identified as the notifying authority.

Foreign Tax Credit entitlement clarified: residents may claim credit for foreign income tax against Indian tax subject to documentation and limits.
Draft rules set out grant of Foreign Tax Credit to resident assessees where corresponding income is taxed in India: foreign tax definitions depend on treaty status or domestic law, credit applies against tax, surcharge and cess (not interest/penalty), is disallowed for disputed taxes, is computed per source per country as the lesser of Indian tax on that income and foreign tax paid converted at the telegraphic transfer buying rate, and requires specified foreign tax certificates, payment proof and a non-dispute declaration.

Provisioning for fraud accounts: banks must recognise exposure immediately or elect staged provisioning to smooth profit impact.
Banks must normally provide for the entire amount due on fraud detection, allowing adjustment for eligible financial collateral under Basel III; alternatively, they may spread provisioning over up to four consecutive quarters from detection. If full provisioning spills into a subsequent financial year, the unprovided balance at year-end must be debited from other reserves to provisions and thereafter reversed proportionately while charging profit and loss to complete provisioning. Banks must disclose number and amounts of frauds, provisions made, and unamortised provisions debited from other reserves, and adhere to fraud classification and reporting rules.

Maintenance of public records: require recorded hearings and speaking orders to ensure lawful quasi judicial decision making.
Instruction directs that quasi judicial and appellate authorities must maintain authentic, signed and dated order sheets; fix and record personal hearings under the authority's signature; note reasons and submissions on the file; and issue reasoned, speaking orders. CBEC is asked to issue guidelines to ensure public orders are made transparently and that sample verification of adjudication and appellate records is carried out to secure compliance.

Overseas Direct Investment reporting: revised Form ODI consolidates transaction reporting and mandates online UIN issuance for remittances.
Overseas Direct Investment reporting has been rationalised by consolidating remittance and transaction reporting into a revised Form ODI comprising Part I (application for a Unique Identification Number and reporting of remittances/financial commitments with auditor certification/self certification), Part II (Annual Performance Report) and Part III (disinvestment reporting). AD Category I banks must obtain Form ODI Part I prior to executing ODI transactions, report forms in the online OID application to obtain the UIN, retain UIN wise physical records, implement AD Maker/Checker/Authorizer roles for online reporting, and report post investment changes; Resident Individuals may self certify in lieu of auditor certification.

Overseas direct investment compliance: ensure annual performance reports are filed and banks verify APR submission before transactions.
Overseas direct investments by Indian parties and resident individuals require annual submission of an Annual Performance Report (APR) in prescribed Form ODI for each overseas JV/WOS. AD Category I banks must check with their nodal office that all APRs for an applicant have been filed before facilitating any ODI transactions; resident individuals may self certify APRs; where multiple investors exist the largest stakeholder or a designated entity must ensure APR submission; APRs should be based on the latest audited accounts and non compliance will be treated as contravention of the FEMA notification.

Rupee denominated bond issuance overseas now subject to rupee term aggregate limits, investor jurisdiction criteria and reporting obligations.
Issuance of Rupee denominated bonds overseas is subject to an aggregate foreign investment limit fixed in Rupee terms; entities may borrow up to Rs. 50 billion per financial year under the automatic route, with excess requiring RBI approval. Bonds may be issued only in and subscribed by residents of jurisdictions meeting FATF and IOSCO/SEBI information sharing criteria and not featured in FATF public statements for AML/CFT deficiencies. Minimum maturity is three years. Borrowers must obtain lists of primary bondholders and AD Category I banks must report actual principal drawdowns/repayments to the Reserve Bank on the transaction date.

Acceptance of foreign deposits for director nomination treated as current account payments not requiring RBI approval.
Deposits placed by persons resident outside India to nominate themselves or others as directors are treated as a current account (payment) transaction and therefore do not require Reserve Bank approval under the Foreign Exchange Management (Deposit) Regulations; refunds of such deposits on selection or achieving specified vote thresholds are similarly not subject to RBI approval.

Taxation of government-provided services: service tax applies where payment is consideration; point of taxation is due or payment, whichever is earlier.
Services by Government or a local authority to business entities are taxable where payment is made as consideration, subject to specified exemptions. The point of taxation is the earlier of the date any payment becomes due as per the invoice/bill/challan or the date of payment. Interest on deferred payments is includible in value. CENVAT Credit for one time assignment charges may be availed evenly over three years, while credit for periodic payments is available in the year paid; prescribed documents such as challans evidence credit entitlement.

Mandatory measurement units required in trade documents to ensure legal metrology compliance and consistent customs declarations.
Declaration of measurements in trade documentation is mandatory: weight, volume, length, area and similar measurements must be stated in units approved under the Legal Metrology Act, and these measurements must appear in both the Bill of Entry and the Shipping Bill for all importers, exporters and customs brokers; earlier public notices inconsistent with the Legal Metrology Act are amended accordingly.

Waiver of additional fee for delayed e form filings after system launch, subject to filing by the specified extended deadline.
The Ministry acknowledged V2R2 launch disruptions and, as a one time administrative measure, ordered waiver of additional fees for e forms due during the system disruption period, provided such forms are filed by the specified extended deadline; filings after that final date will not receive the relaxation.

Staff reallocation for post-clearance audit urged to strengthen customs audit and investigative oversight and reduce case pendency.
Directive to competent authorities to review staff distribution and reallocate additional manpower within commissionerates to strengthen Post-Clearance Audit (PCA) and Special Investigation and Intelligence Branch (SIIB) in Customs Houses, in response to PAC observations that staff shortages and non implementation of redeployment have increased pendency and reduced scrutiny of RMS-selected consignments.

Plant quarantine regulation expands to include industrial imports of sand and similar materials, requiring inspection and clearance before import.
Import consignments of sand and various mineral and soil-derived materials for industrial and non agricultural purposes are included within the Plant Quarantine regulatory scope, covering items such as silica sands, clays, rock aggregates, ores, vermiculite, perlite, gypsum and similar materials; such consignments require Plant Quarantine inspection and clearance prior to import, and importers and associated stakeholders must comply with the Plant Quarantine orders when presenting these goods for Customs processing.

Prohibition on importing mobile phones with duplicate or fake IMEIs: GSMA IMEI certificates and Customs ICDR verification required.
Imports of mobile handsets are prohibited if devices bear duplicate, fake, non genuine, or all zero IMEI/ESN/MEID; importers must obtain GSMA/MSAI IMEI certificates following TAC/IMEI allocation and submit consignment wise certificates to Customs. Customs will verify certificates via the ICDR system for genuineness, correct allocation to the Type Allocation Holder, matching make/model/form factor, and absence of prior entry into India, validate consignments on a 100% basis with limited random physical sampling for green channel consignments, and treat ICDR red marked shipments as improper imports subject to penal provisions and confiscation.

Import/export of gifts by courier: follow extant instructions and report refusals to ensure clearance of bona fide gift consignments.
Indian Customs identifies refusals by foreign courier agencies to book bona fide gift consignments for export to India citing non-clearance or embargo, and directs that extant instructions on import of bonafide gift items through Post/Courier be scrupulously followed; any such incidents should be reported to the undersigned for remedial action.