Kimberley Process certificate requirement now mandates all rough diamond imports, with temporary acceptance of a letter of comfort for transition.
Imports of rough diamonds are conditioned on accompaniment of a Kimberley Process (KP) Certificate or a temporary letter of comfort issued under specified procedures; the Export and Import Policy and the ITC (HS) Classification are amended to add an import licensing note requiring such certification, and the letter of comfort is allowed only as a transitional alternative.

Export performance criteria updated to allow status recognition based on current licensing year exports where proceeds are realised.
Amendment permits grant of export recognition based on realised export proceeds in the current licensing year by meeting specified FOB/FOR thresholds for defined status categories or average values over the preceding three licensing years; includes reduced thresholds for identified small, regional, certified and sectoral units, excludes re exports, and allows aggregation of subsidiary exports where the parent holds majority shareholding.

Addition of mandatory BIS standards for clinical thermometers makes specified IS references applicable to import classification and compliance.
An amendment inserts BIS specifications into Appendix III to Schedule 1 (Imports) of the ITC (HS) 2002-2007, mandating IS 3055 (Part 1): 1994 for solid stem clinical thermometers and IS 3055 (Part 2): 1988 for enclosed scale clinical thermometers, thereby making those BIS standards applicable to imports under the FTP import schedule.

Import licensing change: used casks and barrels under ITC(HS) entry now permitted with free import.
The Exim entry under ITC(HS) Code No. 44160010 is amended to include used casks and barrels; imports of all items falling in this entry shall be free, as inserted by a new import licensing note at the end of Chapter 44 of the ITC(HS) Classification.

Advance Release Orders waiver for EOU/EPZ supplies enables licence-based sourcing and deemed-export entitlements.
Supplies from EOU/EPZ units may be made to advance licence/DFRC holders against the licence without conversion into Advance Release Orders. LOI/LOP shall have an initial three-year validity, extendable by three years, with pre-1.4.2002 approvals considered case-by-case. The minimum investment threshold applies to building, plant and machinery but excludes specified sectors. Units achieving NFEP/EP may sell freely importable goods in the DTA on payment of duties. Supplies from DTA to EOU/EPZ/SEZ are treated as deemed exports for entitlements, and destruction of obsolete goods with Customs permission attracts no duty.

Advance Release Orders and back-to-back inland L/Cs permitted for Advance Licences for intermediate supplies and DFRC transferees, expanding sourcing options.
Advance Licence holders and DFRC holders, including transferees of DFRC, may source inputs from indigenous suppliers or specified domestic units either through Advance Release Orders denominated in foreign exchange or rupees or by using Back-to-Back Inland Letters of Credit, with the latter available as an alternative to AROs and subject to procedures in the Handbook (Vol.1).

Export obligation period extended for EPCG licences to agri export zone units, allowing a longer timeframe to fulfil obligations.
A new provision inserts sub paragraph 5.5.2 into the Export and Import Policy, 2002 07 providing that EPCG licences issued to units in agri export zones are permitted a twelve year period from the date of licence issuance to fulfil the export obligation, thereby extending the compliance timeframe for those licences.

Export service charge cap for Bangalore Rose and Krishnapuram onions; designated agencies to issue NOCs and certify consignments.
The amendment caps service charges levied by designated STEs for issuance of fresh NOCs to associate shippers and prohibits any other charges; designated agencies (KAPPEC, KSCMF, APMARKFED) must follow NAFED procedures, issue NOCs against letters of credit, and certify stuffing and sealing of consignments for their assigned onion varieties.

Duty drawback extension to furnace oil supplies permits All Industry Rate for supplies to domestic SEZ companies under FTP.
Applicability of the All Industry Rate duty drawback of Rs. 850 per M.T. is extended to supplies of furnace oil to domestic companies in Special Economic Zones, making such supplies eligible for the previously notified drawback rate. The extension is effected under paragraph 2.4 of the Export and Import Policy, 2002-2007, with reference to the All Industry Rate notified under notification no. 8 (RE-2002).

Export restriction for Muriate of Potash: exports allowed only under licence under the Foreign Trade Policy.
A new ITC(HS) entry (Item Code 3104) adds Muriate of Potash (MOP) under "Fertilisers" in Table B of Schedule 2 and classifies it as Restricted; export of MOP is permitted only under licence pursuant to the Foreign Trade Policy and the authority granted by the Foreign Trade (Development & Regulation) Act.

Export house eligibility reduced threshold expands recognition for small, certified and priority exporters under amended foreign trade rules.
Export contracts and invoices shall be denominated in freely convertible currency or Indian rupees, but export proceeds must be realised in freely convertible currency; ACU payments are denominated in ACU Dollar; the Government may relax these provisions and contracts may be denominated in Indian rupees against EXIM Bank/Government of India lines of credit. Specified categories of exporters qualify for Export House status on achieving an average FOB/FOR value of Rs.5 crore over the preceding three licensing years. Silver articles are defined to include items containing more than 50% silver by weight, with specified exclusions.

Import classification of second hand marine containers now includes them under Chapter 86, with imports declared free.
The ITC(HS) Classification for Chapter 86 is amended to state that the Exim entry under the relevant code shall include second hand marine containers, and that imports of those containers shall be free, thereby removing import licensing restrictions under the Export and Import Policy, 2002-2007.

Export conditions for onions: STEs to manage quotas, issue NOCs, reduced service charges, MEP compliance and reporting.
Notification authorises State Trading Enterprises, including NAFED, to export onions only under DGFT released quotas and to issue NOCs to associate shippers; STEs may levy reduced service charges for NOCs (maximum 2% immediately, reducing to 1% from 1.4.2003) and are barred from any other charges. All exports must comply with a Minimum Export Price fixed by NAFED, be shipped within prescribed timeframes, and be subject to exporter selection rules, quality maintenance and mandated reporting to NAFED and the Department of Consumer Affairs. These conditions apply to previously released quota balances referenced in earlier DGFT notices.

Duty drawback rate extended for furnace oil supplies to EOUs and EPZs under the deemed export scheme until further orders.
Extension of the All Industry Rate of duty drawback of Rs. 850 per M.T. for furnace oil supplied by domestic oil companies to Export Oriented Units and Export Processing Zones under the deemed export scheme (as notified under Notification No. 33) is extended beyond 31-03-2002 until further orders under paragraph 2.4 of the Foreign Trade Policy.

DEPB benefit for supplies to SEZ replaces drawback, allowing DTA suppliers entitlement and export performance discharge.
Amendment to FTP 2002-07 adds that DTA suppliers to SEZ units are entitled to DEPB in lieu of Drawback for supplies to SEZ, alongside relevant entitlements under paragraph 8.3 and allowing discharge of any export performance obligations.

Import licensing for films now governed by public notice procedures, bringing film media imports under relevant chapter controls.
An amendment inserts sub paragraph (2) in the import licensing notes of the ITC(HS) classification, stating that import of films, including videotape, compact video disc, laser video disc or digital video disc, shall be governed by the provisions of the specified public notice appended to the relevant chapter; the change is effected under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 and paragraph 2.1 of the Export and Import Policy, 2002 2007.

Import exemption for broadcast vehicles permits telecasting-equipped vans if fitted with right-hand steering controls.
The ITC(HS) Classification is amended to exempt the import of Digital Satellite News Gathering Vans and Outdoor Broadcasting Vans fitted with telecasting equipment from the conditions at Sl. No. 1 and 2 of Chapter 87 import licensing notes, provided such vehicles (other than two- and three-wheelers) have right-hand steering and controls.

Import licensing for radio communication equipment now requires a WPC Wing licence for importation under the amended ITC(HS).
The amendment inserts an import licensing note to Chapter 85 of the ITC(HS) Classification stating that items formerly under erstwhile Code 852520 09 ("Other radio communication equipment including VHF, UHF and microwave communication equipment") are not permitted to be imported except against a licence to be issued by the WPC Wing of the Ministry of Communication.

Foreign trade policy amendments allow licence free import for export with legal undertaking and tighten DFRC and status holder rules.
Amendments permit import of new or second-hand capital goods and related items for export without licence subject to a legal undertaking or bank guarantee; confirm allowance of third party exports; extend status certificates to a later date with further renewal on meeting threshold limits; require DFRC issuance on minimum 33% value addition except for gems and jewellery under Handbook rules; allow power units in SEZs; clarify DTA supply references; enable reimbursement of central excise on bulk tea procured from licensed auction centres via the Development Commissioner while levy applies; and condition certain deemed export benefits on supplies under International Competitive Bidding. The definition of status holder is restated as exporters recognized by the Director General of Foreign Trade.

ITC(HS) classification amendment implements revised export-import classifications under the foreign trade policy, effective from the new fiscal period.
The Central Government, under the Foreign Trade (Development and Regulation) Act and paragraph 2.1 of the Export and Import Policy 2002-2007, amends and notifies the ITC(HS) classifications as contained in the Annexure; the amended classifications take effect from 1st April, 2002 and are to be implemented as the operative schedule for export and import items.