Export warehousing compliance: registration, bond security, running bond accounting and documentary proof required for duty free export.
The circular implements a regime for private export warehouses for specified excisable goods: registration by Form R-1 and issuance of a non-transferable certificate; execution of a B-1 general security bond with additional security; maintenance of departmental and exporter Running Bond Accounts and prescribed registers; movement under CT-1 (modified) with provisional debits converted on AR-3A; export clearance on AR-4 with acceptance of proof of export for credit; permitted diversion to home consumption on payment of duty and interest; and documentation, verification and recordkeeping requirements set out in Annexures I-VII.

DEPB rate amendment updates export product descriptions and tariff entries, with revised textile and food product classifications effective immediately.
The public notice amends export benefit schedules and product descriptions: it adds a DEPB entry in Appendix 28A for a specified non alloy forged hammer and makes the new rates applicable to exports from the notice date; it revises textile product descriptions in the Annexure to Public Notice No.6 to redefine cotton fabric, processed cotton madeups, manmade filament madeups, and manmade-cotton blended fabrics by content and finish; and it amends the DEPB rate for a food product entry in Public Notice No.16. The amendments are issued under paragraph 4.11 of the Export and Import Policy.

Replenishment licence procedure clarified: lost bank or customs documents still permit obtaining gold, silver, platinum via nominated agencies.
The circular directs that the procedure prescribed in the Handbook of Procedures, Vol. I, 1997-2002 for issuing replenishment licences where the original Bank certificate, customs attested invoice or shipping bill is lost shall also apply when obtaining gold, silver or platinum from nominated agencies, ensuring the same documentary and verification steps govern precious metal procurement in lost document cases.

Special Advance Licensing Scheme for electronics enables production based advance licences with import first, actual user compliance requirements.
The Special Advance Licensing Scheme (Appendix 53) authorises eligible manufacturer exporters of electronic products to obtain Advance licences on a production programme basis, subject to positive value addition and the requirement that imports precede exports under Actual User non transferable conditions. Licence issuance is based on applicant declarations of inputs and quantities, with technical specifications furnished to Customs at clearance. Licence holders must execute BG/LUT, record imports in DEEC (Imports) for Customs certification, and submit six monthly import/export details to the designated officer of the Department of Electronics, whose verification of input utilisation and wastage governs Customs and DGFT certification and discharge procedures.

Transfer of tax cases: routine transfers suspended for computerization; exceptions require prior Board approval during the period.
The Board suspended routine transfers of income tax cases for the period 1st July to 31st March to avoid disruption from computerization, without curtailing statutory transfer powers. Exceptional transfers-sensitive matters, priority centralization/decentralization, or those required by court directions-may proceed only after obtaining prior approval of the Board.

Advance licence conditions expanded to allow issuance without fixed norms subject to later SALC fixation and duty adjustment.
DEPB credits filed after export realisation must have FOB foreign exchange converted to rupees at the authorised dealer's prevailing buying rate on the date of realisation; the DEPB rate applies to that rupee value. Applications for credit after realisation are permitted within a limited period from the date of realisation. Advance Licences may be issued where Standard Input Output Norms are not fixed, subject to final SALC fixation within six months, with the applicant's undertaking to accept norms, pay customs duty plus interest on unutilised inputs and surrender required security; if SALC does not finalise norms within six months, the applied norms are treated as final.

Registration requirement for silk waste exports: valid Central Silk Board certificate now mandatory for export eligibility.
Amendment to Schedule 2 Appendix 1 of the ITC(HS) Classification makes exports of "Mulberry Silk Waste Not Carded or Combed" permissible only against a valid registration certificate issued by the Member Secretary, Central Silk Board or authorised representatives, pursuant to Paragraph 4.11 of the Export & Import Policy, thereby imposing an administrative eligibility condition for exporters.

Deletion of export general note modifies the Handbook of Procedures under Exim Policy, removing the specified entry in public interest.
Deletion of Sr. No. 4 from the General Notes for all export product groups amends the Handbook of Procedures, Vol. II (1997-2002) under authority conferred by the Export and Import Policy; the Director General of Foreign Trade issued this administrative amendment in the public interest by Public Notice dated 15-9-1998.

Exemption from Bank Guarantee for registered manufacturer-exporters under DEEC/EPCG subject to export obligation compliance and solvency.
Manufacturer-exporters registered with the Central Excise Department are exempted from furnishing a Bank Guarantee under the DEEC and EPCG Schemes, subject to conditions: qualifying turnover in the preceding year, fulfilment (or non-default) of export obligations for existing licence-holders, prior export performance for first-time licence-holders, no penalisation under specified laws in the last two years, and a solvent surety certified by a bank or chartered accountant; a prescribed bond detailing obligations, duty liability on default, and recovery mechanisms accompanies the exemption.

Concessional duty eligibility denied for Network Interface Units as they constitute terminal equipment excluded from benefit.
The NIU/FWT, as the customer premises end unit that interfaces user apparatus with the WLL central receiver, is functionally terminal equipment; because the customs notification granting concessional duty to WLL system equipment expressly excludes terminal equipment, the NIU/FWT does not qualify for the concessional rate.

B-17 bond requirements revised: bond linked to duty on sanctioned capital goods and raw material stock; surety or approved security accepted.
Execution of the B-17 bond for EOUs, EPZ, EHTP and STP units is limited to the duty on sanctioned imported and indigenous capital goods plus duty on raw materials held in stock for six months, with the unit certifying the calculation. Units must furnish either surety for that revised bond amount or an approved security equal to five percent of it; solvency of sureties may be certified by a Chartered Accountant or the surety's banker. Directors may stand as personal sureties and corporate bodies may also act as sureties.

Sub-contracting permissions for EOU/EPZ units require prior statutory recording and return of finished goods and wastage.
Permission to subcontract by EOU/EPZ/EHTP units is to be granted by the Assistant Commissioner; raw materials must first be received and recorded in the unit's statutory records before being sent to job-workers, and finished products plus any wastage must be brought back to the unit for accounting. Textile, garment, agro-processing and granite EOU/EPZ units may perform job-work for DTA units only if the finished goods are exported directly from the EOU/EPZ unit and not returned to the DTA.

Classification of plastic tubes affirmed under Chapter 39.17 as plastic tubes and fittings for tariff purposes.
The Board directs that plastic tubes in running length, manufactured from plastic granules arising during intermediate manufacture of ball pen refills, are properly classifiable under the plastics tariff provision for "Tubes, pipes and hoses and fittings therefor", and that any doubt raised by trade regarding their correct classification should be removed accordingly.

MODVAT credit limitation: 95% cap applies for inputs received on or after the critical date, with specified exceptions.
The MODVAT credit ceiling of 95% of duty applies only where credit is availed under the normal input credit provisions for inputs received in the manufacturer's factory on or after 2 June 1998; credits relating to job work removals accounted for by debiting and later crediting an amount under challan are not subject to the 95% restriction; inputs received on or before 1 June 1998 remain entitled to full credit to the extent of duty paid; specified petroleum products remain governed by their separate ad valorem credit limitation.

Standard Input Output Norms amendment: Handbook of Procedures Vol.2 updated with corrected, substituted and new export input entries.
Amendment of Standard Input Output Norms in the Handbook of Procedures Vol.2: the Director General of Foreign Trade issues a Public Notice under policy powers to correct, substitute and add SION entries. The Notice prescribes textual corrections, revised input lists and quantities, alternative inputs, CIF/FOB value limits and new serial entries across Chemicals and Allied, Engineering, Plastic, Sports Goods, Textile and Miscellaneous product schedules, with detailed line by line norms set out in Annexures A-G.

Decentralisation of service tax: commissionerates may choose centralised headquarters control or adopt divisional assessment and collection.
De-centralisation permits Divisional Headquarters to assume assessment and collection of service tax by assigning work to an Assistant Commissioner who may appoint a Superintendent; this was adopted to relieve administrative inconvenience from centralisation. Commissionerates operating divisions on a functional basis may revert to the original Headquarters-centric arrangement while retaining the option to follow the decentralised divisional model.

EPCG irrigation equipment rules: ownership and installation conditions restrict transfer until export obligation fulfilled for agro exports.
Irrigation equipment may be imported under the EPCG scheme for export of agro products provided ownership remains with the EPCG licence holder and the equipment is not sold or leased. The licence holder must supply a list of premises where equipment will be installed to the Assistant Commissioner of Customs and furnish a Chartered Engineer's certificate confirming installation and that the equipment will remain at the declared premises. The licence holder must undertake in the Bond/LUT not to transfer or sell the equipment until the export obligation is fulfilled.

Merchant overtime recovery: new regulations define scope, require written requests, and impose revised fee and block charging rules.
The Customs (Fees for Rendering Services by Customs Officers) Regulation, 1998, effective 15 October 1998, supersedes prior rules, defines "Customs Officer", "Customs work" and "rendering services", prescribes revised hourly fee rates by officer category and time bands, requires written advance requests with fees payable by the requesting party, mandates a minimum three hour charge except for contiguous overtime, treats midnight-6 A.M. as a single block, and establishes before and after lunch blocks charged in full.

Classification as articles of vulcanized rubber enables input exemption and Modvat credit for foam rubber railway pads.
Foam rubber lubricating pads supplied to railways are classifiable as articles of vulcanized rubber under sub heading 4016.11, while the cellular neoprene rubber core is classifiable under sub heading 4008.11. Inputs under 4008.11 used in the factory to manufacture 4016.11 goods remain exempt from duty, and where duty is paid on such inputs the duty paid is available as Modvat credit against the duty on the final product.

Exclusion of strike period from filing deadlines allows late DEPB and import license applications subject to late cut.
DGFT directs that the strike period shall not be counted when calculating filing time limits for DEPB and Special Import License applications; applications otherwise delayed may be considered under Paragraph 15.17 of the Handbook of Procedures, permitting late submissions within an extended period subject to a late cut on entitlement.