Advance remittances for imports: authorised dealers may permit larger unguaranteed remittances without prior central approval, subject to repatriation rules.
Authorised dealers may allow advance remittances for import of goods up to the raised threshold without prior Reserve Bank approval; where importers fail to import within the prescribed period including any authorised extension, the remitted amount must be repatriated immediately, and all other conditions of the earlier circular remain unchanged.

Overseas investment limits for banks expanded, permitting higher proportion of unimpaired Tier One capital to be invested abroad.
Banks may invest up to 50 per cent of their unimpaired Tier 1 capital or up to USD 25 million, whichever is higher, in overseas money market instruments and/or debt instruments; prior limits and borrowing instructions otherwise remain unchanged, and regulatory amendments to the Foreign Exchange Management (Borrowing or lending in foreign exchange) Regulations, 2000 will be notified separately under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999.

Normal rolling settlement: specified scrips with depository connectivity moved from trade-for-trade to rolling settlement on scheduled dates.
Movements of specified listed scrips from the trade-for-trade settlement window into the normal rolling settlement trading segment are directed based on establishment of connectivity with both depositories. Eighty-three companies that established depository connectivity on or before July 31, 2002 are authorized to trade in the normal rolling settlement mode with immediate effect, while additional groups meeting connectivity cutoffs as of August 31, September 30 and October 31, 2002 are scheduled to migrate to normal rolling settlement on designated future effective dates.

Classification of Di-calcium phosphate: prior Board instruction withdrawn; traders and field formations to follow current assessment practice.
Prior Board guidance classifying Di-calcium phosphate under subheading 2835.00 has been rendered invalid by subsequent judicial decisions; the Board's rule 37B instruction is withdrawn in its entirety. This recognizes divergent assessment practice across Commissionerates after those decisions and directs that trade and field formations be informed so classification and assessment follow prevailing practice and applicable law.

Enlistment requirements for Certificate of Origin agencies require a stamped undertaking, fee cap, and prohibition on issuing preferential certificates.
Agencies seeking enlistment under Appendix 35B to issue Certificate of Origin (Non Preferential) must submit a stamped declaration cum undertaking in the prescribed format. The undertaking caps the fee chargeable per certificate, obliges the agency not to issue any Preferential Certificates of Origin, affirms absence of prior de listing for violations or fraud, and accepts liability for penal action or other consequences for any breach of the undertaking or prescribed procedures.

Import policy change for barley: barley other than seed quality is now permitted for import as free without routing restrictions.
Amendment reclassifies the ITC (HS) entry for Barley other than seed quality from restricted 'STE through FCI only' routing to a Free import policy, directing licensing authorities and customs commissioners to treat the corrected Exim classification as permitting unrestricted imports in line with Notification No.2.

Fraudulent exports mis-declaration of goods' weight to obtain excess duty drawback and DFRC benefits exposed; customs instructed to intensify checks.
Fraudulent exports involving deliberate mis-declaration of weight and value to obtain inflated duty drawback and DFRC benefits were detected; physical examination showed actual weight substantially lower than declared. Customs officers are instructed to note the modus operandi, increase vigilance in export clearances and physical examinations, adopt preventive measures to prevent recurrence, and acknowledge receipt of the circular.

Compliance with Board circulars required; field officers must follow instructions and escalate doubts to prevent trade harassment.
Field formations must strictly follow Board circulars and instructions, avoid independent interpretations, and promptly escalate doubts to higher authorities. Administrative heads should study circulars and issue clear Public Notices or standing orders to guide staff, monitor field compliance to prevent trade harassment, and treat lapses in implementation seriously.

Line of Credit financing for exports to PTA member countries enables majority contract value reimbursement under irrevocable letters of credit.
Exim Bank extended a Line of Credit to PTA Bank to finance exports of eligible goods and related services from India to PTA member countries. Contracts require Exim Bank's prior approval, must be in U.S. dollars with an agreed minimum value, and provide for an advance payment by the buyer with the balance paid pro rata under an irrevocable letter of credit conforming to UCP. Negotiating banks in India may pay the financed portion in rupees on presentation of compliant documents and are reimbursed by Exim Bank in U.S. dollars according to negotiation terms.

Refunds to NRE/FCNR accounts permitted for NRIs/PIOs on non allotment or cancellation, subject to original payment origin and verification.
Refunds of purchase consideration for non-allotment or cancellation may be credited to NRE/FCNR accounts, with interest net of tax, provided the original payment originated from the holder's NRE/FCNR account or remittance from outside India and the authorised dealer is satisfied about the genuineness of the transaction.

Delegation to authorised dealers to repatriate share-purchase refunds permitted, subject to bonafide, inward-remittance and non-interest conditions.
Authorised dealers are delegated authority to permit repatriation of refunds of funds received for purchase of shares in three categories-refunds on allotment, surplus from rights issues, and surplus/cancellations under ADRs/GDRs-provided dealers are satisfied with the applicant's bonafides, that the repatriation is by inward remittance or debit to an NRE/FCNR account, and that no part of the remittance is interest.

Commodity hedging by SEZ entities allowed under stand alone restriction, with off set hedges and strict operational controls.
Entities in Special Economic Zones may hedge import/export commodity price risk in international exchanges on a stand-alone basis, permitting only off-set hedges using exchange-traded futures and options (purchases only) and, where warranted, limited OTC contracts; authorised dealers must monitor for speculative/arbitrage activity. Corporates must open a Special Account for hedging flows, provide broker month-end reports countersigned by the Financial Controller to verify physical backing, reconcile broker statements within three months, and furnish an annual statutory auditor certificate confirming compliance and adequate internal controls.

Foreign exchange regulation: operational, reporting and compliance rules for authorised money changers and franchise arrangements enforced.
Memorandum prescribes operational rules and supervisory controls for Authorised Money Changers under the Foreign Exchange Management Act, 1999, including permissible purchase and sale of foreign currency, requirements for encashment certificates and cash memos, market determined exchange rates and display obligations, limits on foreign currency holdings, prohibition of cash settlement between authorised parties, procedures for replenishment and export of surplus currency, recordkeeping and reporting obligations (including prescribed monthly/quarterly statements and inclusion of franchisee transactions), concurrent audit requirements, Reserve Bank inspection powers and a franchising Scheme for appointing franchisees with specified reporting and inspection clauses.

Credit rating threshold: undeployed FCNR(B) investments now acceptable with AA rating by S&P/FITCH for authorised dealers.
Authorised dealers must treat securities rated AA(-) by Standard and Poor or FITCH IBCA as meeting the credit rating requirement for investment of undeployed FCNR(B) funds, replacing the prior reference to AA; the directions are issued under statutory exchange control powers and apply to all authorised dealers in foreign exchange.

Freight deduction from f.o.b. value: air freight paid by exporter on collect shipments need not reduce drawback entitlement.
Where contracts and letters of credit record sales on f.o.b. terms with freight on collect basis, exporters who, due to exigency, airlift consignments and pay higher air freight themselves without changing the contractual f.o.b. value shall not have that additional freight deducted from the contracted f.o.b. value when recalculating export drawback; this rule applies to all commodities and pending cases should be decided accordingly.

Corporate guarantee in lieu of bid bond allowed for exporters, limited to prescribed proportion of contract value; PEM compliance required.
Exporters are permitted to furnish a corporate guarantee in lieu of a bid bond when bidding for projects abroad, including service contracts, subject to a cap at a prescribed proportion of the contract value and compliance with Memorandum PEM and other RBI instructions; authorised dealers must notify constituents and implement amendments to the FEMA notification framework as indicated.

Foreign investment limit in mutual fund schemes capped with expense aggregation rules and mandatory board reporting.
SEBI permits mutual funds to invest up to ten percent of a scheme's net assets as at the specified valuation date in foreign securities, subject to minimum and maximum per-fund investment quanta and necessary approvals; previously approved funds may seek enhancements and others must apply to SEBI. Investments in overseas mutual funds are exempt from the Seventh Schedule unit-investment and fee prohibition, provided the combined foreign and domestic management fees and recurring expenses do not exceed the prescribed overall expense limits, with pro rata application where only part of assets are invested, and with required board reporting and annual report disclosure.

Organic certification: designated accredited agencies authorised to issue certificates enabling export as organic product under export policy.
Agencies accredited by the relevant accrediting authority are designated to issue valid organic certificates; an agricultural product may be exported as an Organic Product only if produced, processed or packed under a valid organic certificate issued by one of the designated agencies, which are authorised for periods determined by their accrediting agency.

Duty-free import eligibility for reusable packaging containers confirmed, with identity by declared dimensions, photographs and limited tolerance.
Reusable packaging containers of metal or plastic are eligible for duty-free import under Notification No. 104/94-Cus. The requirement for engraved identification numbers may be waived; importers must declare particulars such as dimensions, shape, weight and colour. Customs may require photographs at the importer's expense, attest them, and perform random examinations. Identity at export may be established by photographs and declared physical parameters, subject to a limited tolerance.

Standard Input Output Norms amendment expands and revises permissible input lists and net to net component import rules.
Public Notice No.46 dated 06/11/2002 amends the Handbook of Procedures Vol.2 by substituting, deleting and adding Standard Input-Output Norms across chemicals, engineering, food, plastic and sports goods. The amendments restate input-output compositions for numerous items, add new SION entries, delete obsolete norms, permit certain inputs (e.g., PVC stabilizer up to 3%) subject to offsetting reductions, and allow components to be imported on a net-to-net basis with accountability and technical-specification conditions imposed by licensing authorities.