• Refund of 4% Additional Duty of Customs (4% CVD) in terms of Notification No.102/2007-Customs dated 14.09.2011: Customs Circular No.01/2012 dated 5th January 2012 issued by the Ministry of Finance on the above subject now entitles a Certificate for refund of 4% Additional Duty of Customs (4% CVD) by Cost Accountants / Statutory Auditors also rather than restricting the authority only to "Chartered Accountants" only as per present practice.
  
  A copy of the Circular dated 8th January 2012 is reproduced below:
  1. Circular No. 18/2010-Customs dated 8th July, 2010), vide which Board has simplified procedure for sanction of refund of 4% SAD in case of ACP importers. Vide Para 4.1 (d) of the Circular No.18/2010-Customs, dated 08.07.2010 it was provided that the amount of 4% CVD refund shall be sanctioned in full, on preliminary scrutiny of the documents and certificate of statutory auditor/Chartered Accountant, for correlating the payment of ST/VAT on the imported goods with the invoices of sale and also to the effect that the burden of 4% CVD has not been passed on by the importer to the buyer. However, as Para 6 of the said Circular only Charted Accountant can issue a certificate that incidence of burden of 4% CVD has not been passed on by the importer to the buyer.
  2. Representations have been received in the Board for amending Para 6 of the said Circular to make it in consonance to Para 4.1 (d) ibid to enable Cost Accountants to issue the Certificates as statutory auditors for the purpose of refund of 4% CVD.
  3. The matter has been examined in the Board. Board noted that the Circular No.18/2010-Customs dated 08.07.2010 disentitles Cost Accountants in regard to issue of requisite certificate though they may be statutory auditors of the importer. Board also observed that several States currently recognize Cost Accountants for purpose of VAT audit and it would be a hardship to trade already using statutory auditors/Cost Accountants to get required certificate for amount of 4% refund from Chartered Accountants. Therefore, as a measure to facilitate the trade Board has approved the amendment of the Circular No.18/2010 Customs dated 08.07.2010 so as to authorize Statutory Auditors/ Cost Accountants/ Chartered Accountants to issue a certificate, certifying that burden of 4% CVD has not been passed on by the importers to any other person.
  4. Accordingly, para 4.1(d) and Para 6 of Board Circular No.18/2011-Customs, dated 08.07.2010, stands modified to above extent.
  5. Suitable Public Notices or standing orders may be issued to guide the trade / industry and officers.
• Exemption from Customs Duty in goods imported from Republic of Korea: Customs Notification No.122/2011 dated 30th December 2011 issued by the Ministry of Finance has made some changes in Notification No.151/2009 of 31st December 2009 on the above subject.
  
  As a result goods covered under Chapter 85 entitled to exemption from Customs Duty on goods imported from the Republic of Korea have been changed. The revised list is placed below:
  
  

  Chapter Heading	Description of goods
  850450 to 850490	All goods
  851410 to 851430	All goods
  851490	All goods
  8517	All goods
  851810	All goods
  851822 to 851840	All goods
  851890	All goods
  851950	All goods
  852290 to 852313	All goods
  852329	All goods
  852352	All goods
  852359	All goods
  85238020	All goods
  852560	All goods
  85258020	All goods
  852713	All goods
  852791	All goods
  85279911	All goods
  852841	All goods
  852851	All goods
  852910 (except 85291021, 85291091)	All goods
  852990	All goods
  853120 to 853400	All goods
  853650	All goods
  853669	All goods
  853890	All goods
  854040	All goods
  8541 to 8542	All goods
  85431010	All goods
  854330	All goods
  854370 to 854390	All goods except electric fence energizer
  854442	All goods
  854470	All goods
  8710	All goods

  
  
  
• Exit policy for Telcos issued: Telecom Regulatory Authority of India (TRAI) has issued a consultation paper on the proposed exit policy for telecom service providers. Currently, there are as many as 13 players in a service area. Many new operators do not find it viable to launch services and they want to exit from the market. Once TRAI gives its recommendations, the department of telecommunications will formulate the policy.
• National manufacturing policy gets govt. push: The Industry department has written to all states and select ministries, including finance and environment, to take all required measures for speedy implementation of its ambitious National Manufacturing Policy which was approved by the Cabinet in November 2011.
  
  “There is an urgent need to arrest the slowdown in Indian manufacturing and it Is important for the policy to be implemented in a time-bound manner” DIPP secretary P K Chaudhary has written in his letter to his counterparts in departments of revenue and economic affairs and ministries of labour and environment and all state chief secretaries.
  
  The manufacturing policy aims to create 100 million additional jobs by 2025 and develop new mega industrial zones (NMIZ) with world-class infrastructure facilities and flexible labour and environment regulations.
• Commendable codifying of self-assessment rules: The Central Board of Excise and Customs (CBEC) has released a Manual for Self Assessment. It explains the legal provisions and procedures to be followed and notified for new regulations for filing bills of entry / shipping bills electronically and for provisional assessment. The idea is to move to trust based Customs control.
  
  The new system of self-assessment can help easier movement of cargo through the Customs but importers/exports will be responsible any mistakes they make also face periodic Customs audit at their offices after clearance of the goods.
  
  The self-assessment scheme, shifting the responsibility for assessment to importers/exporters while retaining the power of Customs officers to verify such assessments and make re-assessment, was introduced this April by amendments to Sections17, 18, 46 and 50 of the Customs Act, 1962
  
  The essence of the new self-assessment scheme is that the verification of declarations and assessment is done by the importers/exporters, except for cases wherein a speaking order is passed while re-assessing duty. The importer/exporters can file their bills of entry/shipping bills from remote locations (either themselves or through the Customs House agents) or by using the service centers at the Customs Houses. Once the system accepts the declarations and generates the bill of entry/shipping bill number, the self-assessment is complete. Then, it is a matter of duty payment (electronically, for duty of Rs.1 lakh or more), generation of bills of entry/shipping bill copies and obtaining the subsequent export or other order, on an automatic basis.
  
  The Customs Officer can intervene, especially if the RMS selects any bill of entry/shipping bill for re-assessment. He may order examination or testing of the imported/exported goods or may require production of any relevant document or ask the importer/exporter to furnish any relevant information. If he finds the importer/exporter has not done self-assessment currently, he may pass speaking order for reassessment, after giving due opportunity. He may order provisional assessment if he does not have enough details to verify the self-assessment of if the importer/exporter pleads inability to make self-assessment.
• Pricey Spectrum : In response to a recent decision by the government to charge telecom service providers a steep rate of Rs.4,572 crore for each MHz of spectrum they hold above 6.2 MHz, these companies have collectively represented to the Prime Minister that spectrum price should be determined through auctions. The telcos' concern over high up-front costs of spectrum is perfectly valid, but the solution they offer is not. The official policy on spectrum allocation cannot be decided on the basis of either how much revenue the government can mop up or what is acceptable to telecom operators. Spectrum is a scarce natural resource. The use of which should maximize economic returns to society at large. Maximising economic returns would indeed, translate into optimal revenue accrual to the government over time.
• GST rollout may be delayed further (Dispute between Centre and States over CST set to upset April 2012 deadline): The proposed goods and services tax (GST) continues to be ill-fated. The latest round of dispute has cropped up - again between the Centre and States. This time, it was over compensation to the states on revenue loss due to a cut by half in the central sales tax (CST) from the present 4 per cent. The imbroglio will serve another reason to the rollout of the GST regime, originally slated to begin from April 2010.
  
  In any case, the introduction of the GST, envisaged to replace most of the country's present indirect taxes from the next financial year, looked set for another round of delay, as it is only from January that a parliamentary panel would start discussing with stake-holders in the pertinent constitution amendment bill.
  
  The States are angry about having not received CST compensation for 2010-11, according to Sushil Modi, chairman of the Empowered Committee of state finance ministers. "We are sending a strong-worded letter to the finance minister (Pranab Mukherjee)", he told reports. "This will put a question mark on the creditability of the Centre, because this one thing the Centre committed when we are trying to create a congenial atmosphere for GST."
  
  The CST is a tax on interstate movement of goods. It was reduced from four per cent to three per cent from April 1, 2007, and further to two per cent over a year later. It was to be abolished by 2010-11, before authorities ultimately decided to wind it up once the GST was rolled out. The CST is being removed since it is considered a distortion in the way of the common Indian market. An effort has been on to create it - first, through state-level VAT and, now, with the proposed GST.
  
  Since the CST means revenues to state, the Centre had agreed to compensate them. As much as Rs.12,000 crore has been provided in the Budget 2011-12 as well for this purpose, pointed out Modi, who is Bihar deputy chief minister and finance minister, after meeting of the empowered committee.
• National Solar Mission policy to be fine-tuned: In a bid to attract more players into the clean energy business, the ministry of new and renewable energy (MNRE) is now willing to fine-tune the National Solar Mission (NSM) policy. The government will be working with the stakeholders to modify the policy, as the market is constantly evolving and requires constant monitoring. Inaugurating Solarcon India 2011, MNRE director Bharat Bhargava said the ministry feels that there was a need for regular course correction to increase the interests among states and private players. The NSM aims to produce 20 giga watts of solar power by 2022.
• China inflation cools in Oct, more policy changes seen : China's annual inflation rate fell sharply in October to 5.5% in a further pullback from July's three-year peak, giving Beijing more room to fine-tune policy to help an economy feeling the chill of a global slowdown.
  
  Other data, including figures showing industrial output in October grew at its weakest annual pace in a year, provided the latest evidence of a modest slowdown in the world's second-biggest economy.
  
  Industrial output rise in October by 13.2% from a year earlier, slightly below expectations for a 13.4% rise and the weakest pace since October 2010, suggesting factories were bearing the brunt of the economic slowdown.
  
  Inflation fell from 6.1% in September and marked the third straight decline since a peak of 6.5% in July, bolstering expectations that price pressures were on a solid downtrend.
• Centre prods States on manufacturing policy: In a written missive to chief secretaries, the Centre has urged them to ramp up their internal working process at the earliest, to ensure faster implementation of the national manufacturing policy at the ground level.
  
  The idea is to expedite acquisition of land for the proposed National Industrial and Manufacturing Zones (NIMZs) and rationalize regulations for manufacturing.
  
  In his letter to states, DIPP secretary Mr. PK Chaudhary says: "The policy seeks to address these (increasing the share of manufacturing and creating 100 million jobs) through specific instruments. But, these instruments can be effective only with the active collaboration of the States. The partnership between States is central to the policy. As such I trust, that you will get the policy document examined quickly and initiate steps to implement the proposals, as appropriate, in the context of your State."
  
  The Centre wants the states to soon come up with sizeable land banks, consisting of "government-owned land, existing defunct industrial areas/ sick units, including PSUs" for NIMZs.
• Telecom Path-Breaker - Does the draft National Telecom Policy - 2011 reflect true brilliance or smoke and mirrors, asks Shyam Ponappa : There's much to criticize the government for not initiating systematic reforms. Yet, the draft National Telecom Policy 2011 (NTP-2011), announced three weeks ago, is a stunner. It begins with a solid, integrated-systems preamble to IT, Communications and Electronics, followed by an excellent vision statement: "[to provide] secure, reliable, affordable and high quality... telecommunication services anytime, anywhere." A sound beginning, although open-ended in terms of how the details could evolve.
  
  There are potential problems with such high-level pronouncements, of course. A number of commentators castigate the motherhood in the draft. With a lofty perspective and few details, much depends on how the open-ended possibilities develop, including the difficulties of execution in dealing with ground realities and obstacles.
  
  AN ASSESSMENT
  
  NTP-2011 addresses six major areas: spectrum, licensing, broadband, convergence, roaming, and manufacturing. On the first two, there are sweeping proposals:
• licenses will not be linked to spectrum; and
• spectrum sharing will be permitted.

• High-traffic cities like Delhi and Mumbai have much higher utilisation than cities elsewhere in the world. It comes at increased costs to operators, because of advanced equipment and the closer spacing of towers, as well as has negative environmental effects. If a system with on-demand access to centralised, more efficient spectrum bandwidth were available, the capacity would be much higher, while operators would gain tremendous savings.
• Another aspect has to do with the structuring and pricing of shared spectrum. One scenario for sharing is to enable operators to share assigned bands on mutually acceptable terms, leaving the onus of structuring and deployment on the respective operators, as for mobile telephony towers. As with the towers, there are likely to be coalitions of operators/independent entities who are able to work out arrangements among themselves, while not attaining the ultimate efficiency of unified coordination. For instance, participants who share towers in India share passive but not active infrastructure, and a critical element of active infrastructure is spectrum.
• An alternative scenario would be mandated spectrum sharing. Spectrum on demand could be made available to any operator/counterparties for the duration of every communication "transaction". This would need a database-driven Dynamic Spectrum Assignment facility, as deployed by Spectrum Bridge in the US. The more efficient throughput would mean higher traffic capacity for a given investment through better utilisation.
• The distributed processing alternative through cognitive radio in every user device is (a) much less efficient, and (b) far more expensive. The market consolidation-through-acquisition approach, with more auctions, is the least efficient and most expensive.

• To achieve a turnover of about USD 400 Billion by 2020 involving investment of about USD 100 Billion and employment of around 28 million by 2020.
• To set up over 200 Electronic Manufacturing Clusters
• To increase export in ESDM sector to USD 80 billion by 2020
• To develop core competencies in sectors like automotive, avionics, industrial, medical, solar, information & broadcasting, etc.
• To significantly enhance availability of skilled manpower and upscale high-end human resource creation

• Mandatory e-filing of Central Excise Returns in ACES
  Through Circular No.955/16/2011-CX dated 15th September 2011 from Central Board of Excise and Customs to all Chief Commissioners of Central Excise and Customs on the above subject, it has been decided to make it mandatory for the assessees to submit the prescribed Central Excise Returns electronically w.e.f. 1st October, 2011. In this regard, the Central Excise (Fourth Amendment) Rules, 2011 has been issued vide Notification No. 21/2011-CE (NT) dated 14.09.2011, amending Rule 12 and Rule 17 of the Central Excise Rules, 2002. Similarly, the CENVAT Credit (Fourth Amendment) Rules, 2011 has been issued vide Notification No.22/2011-CE (NT) dated 14-9-2011, amending Rule 9A of the CENVAT Credit Rules, 2004. The above mentioned changes will come into effect on 01.10.2011.
  
  The following amendments have been made in Central Excise Rules, 2002 and CENVAT Credit Rules, 2004:
  1. ER-1 Return, filed under Rule 12(1) of the Central Excise Rules, 2002, will have to be electronically filed irrespective of the duty paid in the preceding financial year.
  2. ER-2 Return, filed by 100 per cent EOUs under Rule 17 of the Central Excise Rules, 2002, will be required to be filed electronically irrespective of the duty paid in the preceding financial year.
  3. ER-3 Return, filed under the provisos to Rule 12(1) of the Central Excise Rules, 2002, will be required to be filed by the concerned assessees including SSI units electronically irrespective of the duty paid in the preceding financial year.
  4. ER-4 Return (Annual Financial Information Statement), filed under Rule 12(2)(a) of the Central Excise Rules, 2002 will continue to be filed electronically by the assessees who are not exempted from filing such statement by a notification.
  5. ER-5 and ER-6 Returns, pertaining to principal inputs filed under Rule 9A of the CENVAT Credit Rules, 2004, will continue to be electronically filed by the assessees who are not exempted from filing such declaration/return by a notification.
  6. ER-7 (Annual Installed Capacity Statement) filed under Rule 12(2A)(a) of the Central Excise Rules, 2002, has to be filed by all assessees electronically.
  7. ER-8 Return, to be filed under the proviso to Rule 12(1) of the Central Excise Rules, 2002, by assessees availing the exemption under Notification No.1/2011-CE dated 1-3-2011 has to be filed electronically.
  As a large number of assessees may be required to file Central Excise Returns electronically as a result of the above changes, Excise Officials have been requested to provide all assistance so as to help them in adopting the new procedure.

• The Central Board of Excise & Customs, Ministry of Finance, has issued Customs Circular No.33/2011 dated 29th July 2011 making e-payment of Customs duty mandatory. The effective date of implementation will be notified shortly.

1. Online allotment of Directors Identification Number (DIN) by the system immediately.
2. Online application and approval of Name by the system immediately.
3. Online filing and registration of incorporation forms and e-form of Memorandum of Articles of Association with digitalsignatures of promoters and professionals by the system immediately.
4. Online issue of Incorporation Certificate by ROC under his digital signature within 24 hours on incorporation.

• Customs Circular No,30/2011 dated 15th July 2011 on the Refund of 4% CVD (SAD)- Extension of time up to 15th September, 2011 for using re-credited 4% CVD (SAD) amount in DEPB: CBEC has been decided to extend time limit for using reredited DEPB scrips / Reward Scheme scrips in case of 4% CVD (SASD) up to 15.09.2011 with following conditions :
  1. The extension of utilization of re-credited amount of SAD refund in relevant scrip is granted for two months i.e. up to 15.09.2011. No further extension shall be given.
  2. The importers shall utilize re-credited amount of SAD refund in scrips for payment of CVD and BCD only and not for payment of SAD subsequently.
  3. Commissioners of Customs should ensure that issuance of consolidated Certificate indicating total amount of 4% SAD refund sanctioned is carried out in time without any delay.

• Notification No.53/2011 dated 1st July 2011 : Tariff Concession to specified goods imported from Malaysia under India-Malaysia CECA. The Ministry of Finance has issued Notification No.53/2011 dated 1st July 2011, giving exemption to some goods mentioned below when imported from Malaysia. We are indicating only the goods given under Chapter Heading 85 which is relevant in Electronics Hardware. In most cases, input duty has been reduced, while in the case of some it is brought down to zero %.
  
  It may be noted that exemption/ reduction of duty relates to the goods imported from Malaysia

  CHAPTER 85

  S. No.	Chapter, Heading, Sub-heading and Tariff item	Description	Rate
  1316	850120	All goods	5.0
  1317	850133 to 850134	All goods	5.0
  1318	850140	All goods	6.0
  1319	850151	All goods	5.0
  1320	850152	All goods	6.0
  1321	850153	All goods	5.0
  1322	850161	All goods	4.0
  1323	850162 to 850164	All goods	5.0
  1324	850211	All goods	5.0
  1325	850212 to 850213	All goods	5.0
  1326	85022010	All goods	6.0
  1327	85022090	All goods	4.0
  1328	850231	All goods	5.0
  1329	850239	All goods	4.0
  1330	850240 to 850300	All goods	5.0
  1331	850410	All goods	6.0
  1332	850421	All goods	4.0
  1333	850422 to 850423	All goods	5.0
  1334	850431 to 850432	All goods	5.0
  1335	850433  to 850434	All goods	5.0
  1336	85044010	All goods	8.0
  1337	85044021	All goods	6.0
  1338	85044029	All goods	6.0
  1339	85044030	All goods	8.0
  1340	85044040	All goods	8.0
  1341	85044090	All goods	6.0
  1342	850450	All goods	5.0
  1343	850490	All goods	4.0
  1344	850511 to 850520	All goods	5.0
  1345	850590	All goods  other than  electromagnetic lifting heads	4.0
  1346	850590	Electromagnetic lifting heads	5.0
  1347	850610 to 850650	All goods	5.0
  1348	850660 to 850690	All goods	6.0
  1349	850710	All goods	5.0
  1350	850720	All goods	6.0
  1351	850730	All goods	5.0
  1352	850740 to 850819	All goods, Other than  Industrial vacuum cleaners	6.0
  1353	850819	Industrial vacuum cleaners	5.0
  1354	850860	All goods	5.0
  1355	850870	Parts of domestic vacuum cleaners	6.0
  1356	850870	Parts of industrial vacuum cleaners	5.0
  1357	850940	All goods	8.0
  1358	850980	All goods	5.0
  1359	850990 to 851010	All goods	6.0
  1360	851020 to 851090	All goods	5.0
  1361	851110	All goods	6.0
  1362	851190	All goods	6.0
  1363	85121000 to 85122020	All goods	5.0
  1364	85122090	All goods	5.0
  1365	85123010	All goods	6.0
  1366	85123090	All goods	4.0
  1367	851290	All goods	6.0
  1368	85131010	All goods	8.0
  1369	85131020 to 85139000	All goods	6.0
  1370	851410	All goods	0.0
  1371	851420	All goods, other than Inductance or dielectric furnaces or ovens for the manufacture of semiconductor devices on semiconductor wafers	5.0
  1372	851420	Inductance or dielectric furnaces or ovens for the manufacture of semiconductor devices on semiconductor wafers	0.0
  1373	85143010	All goods	0.0
  1374	85143090 to 85144000	All goods	5.0
  1375	851490	All goods	0.0
  1376	851511 to 851519	All goods	4.0
  1377	851521 to 851529	All goods	5.0
  1378	851531 to 851539	All goods	4.0
  1379	851580 to 851590	All goods	5.0
  1380	851610	All goods	8.0
  1381	851621	All goods	5.0
  1382	851629	All goods	8.0
  1383	851631	All goods	6.0
  1384	851632	All goods	5.0
  1385	851633	All goods	6.0
  1386	851640	All goods	8.0
  1387	851650	All goods	5.0
  1388	851660 to 851672	All goods	8.0
  1389	851679	All goods	5.0
  1390	851680 to 851690	All goods	6.0
  1391	8517	All goods	0.0
  1392	851810	All goods	0.0
  1393	851821 to 851829	All goods, other than (Loudspeakers, without housing, having a frequency range of 300 Hz to 3,4 KHz with a diameter not exceeding 50 cm, for telecommunication use - cone type and other than cone type)	6.0
  1394	851829	Loudspeakers, without housing, having a frequency range of 300 Hz to 3,4 KHz with a diameter not exceeding 50 cm, for telecommunication use - cone type other than cone type	0.0
  1395	851830	All goods	0.0
  1396	851840	All goods	6.0
  1397	851850	All goods	8.0
  1398	851890	All goods	6.0
  1399	851920 to 851930	All goods	5.0
  1400	851950	All goods	0.0
  1401	85198100 to 85198930	All goods	5.0
  1402	85198940	All goods	3.0
  1403	85198990 to 85211099	All goods	5.0
  1404	852190	All goods	6.0
  1405	852210 to 852351	All goods	5.0
  1406	85235210 to 85235910	All goods	0.0
  1407	85235990 to 85238010	All goods	5.0
  1408	85238020	All goods	0.0
  1409	85238030 to 85238090	All goods	5.0
  1410	85255010 to 85255040	All goods	5.0
  1411	85255050	All goods	5.0
  1412	85255090	All goods	5.0
  1413	852560	All goods	0.0
  1414	852580	All goods	6.0
  1415	852610	All goods	5.0
  1416	852691 to 852692	All goods	4.0
  1417	852712 to 852792	All goods	5.0
  1418	85279911	All goods	0.0
  1419	85279912 to 85286100	All goods	5.0
  1420	852869	All goods, other than Color video projectors  and video projectors B/W or other monochrome	6.0
  1421	852869	Color video projectors  and video projectors B/W or other monochrome	5.0
  1422	852871 to 852873	All goods	6.0
  1423	85291011 to 85291012	All goods	5.0
  1424	85291019	All goods	0.0
  1425	85291021	All goods	5.0
  1426	85291022	All goods	0.0
  1427	85291029	All goods	5.0
  1428	85291091 to 85291092	All goods	5.0
  1429	85291092	All goods	0.0
  1430	85291099	All goods	5.0
  1431	85299010 to 85299020	All goods	0.0
  1432	85299090	All goods	5.0
  1433	853010 to 853080	All goods	5.0
  1434	853090	All goods	4.0
  1435	853110	All goods	8.0
  1436	853120	All goods	0.0
  1437	853180 to 853190	All goods	5.0
  1438	8532 to 8534	All goods	0.0
  1439	853510	All goods	6.0
  1440	853521 to 853530	All goods	5.0
  1441	853540	All goods	4.0
  1442	853590	All goods	6.0
  1443	85361010	All goods	6.0
  1444	85361020 to 85363000	All goods	4.0
  1445	853641	All goods	6.0
  1446	853649	All goods	4.0
  1447	85365010	All goods	5.0
  1448	85365020	All goods	0.0
  1449	85365090	All goods	5.0
  1450	853661	All goods	6.0
  1451	85366910	All goods	0.0
  1452	85366990	All goods	5.0
  1453	853670	All goods	6.0
  1454	85369010 to 85369030	All goods	6.0
  1455	85369090	All goods	0.0
  1456	853710	All goods	4.0
  1457	853720 to 853810	All goods	5.0
  1458	853890	All goods	4.0
  1459	853910 to 853921	All goods	6.0
  1460	853922	All goods	5.0
  1461	853929 to 853931	All goods	6.0
  1462	853932	All goods	5.0
  1463	853939	All goods	6.0
  1464	853941 to 853949	All goods	5.0
  1465	853990	All goods	8.0
  1466	854011 to 854012	All goods	6.0
  1467	854020	All goods	5.0
  1468	854040	All goods	0.0
  1469	854050	All goods	5.0
  1470	854060	All goods	6.0
  1471	854071 to 854099	All goods	5.0
  1472	854110 to 854233	All goods	0.0
  1473	854239	All goods	5.0
  1474	85429000 to 85431010	All goods	0.0
  1475	85431020 to 85432090	All goods	5.0
  1476	85433000 to 85437011	All goods	0.0
  1477	85437012 to 85437099	All goods	5.0
  1478	854390	All goods	0.0
  1479	854411 to 854419	All goods	6.0
  1480	854420	All goods	4.0
  1481	854442 to 854449	All goods	5.0
  1482	854460	All goods	4.0
  1483	854470	All goods	0.0
  1484	854511 to 854519	All goods	5.0
  1485	854520	All goods	6.0
  1486	854590 to 854790	All goods	5.0
  1487	8548	All goods	5.0

• Collection of Anti-dumping duty beyond the validity period: Tax Research Unit of the Department of Revenue, Ministry of Finance, has issued Circular No.28/2011 Customs (File No.354/150/2011-TRU) dated 8th July 2011 on the above subject. Doubts exist among the trade and industry on the leviability of anti-dumping duty even after expiry of the prescribed period. The basis for such a practice could be that the Notification providing the levy of anti-dumping duty does not specify the end date. Circular No.28/2011-customs dated 8th July which clarifies that matter is reproduced below:

  Circular No. 28/2011-Customs

  F.No.354/150/2011-TRU Government of India Ministry of Finance Department of Revenue Tax Research Unit ***

  R.No.146 I, North Block New Delhi, dated the 8th July, 2011

  To Chief Commissioner of Customs (All) Chief Commissioner of Customs & Central Excise (All) Director Generals (All)

  Sir/Madam,

  Subject: Collection of Anti-dumping duty beyond the validity period-regarding.

  Representations have been received from the trade that, in some cases, field formations are collecting anti-dumping duty even after the expiry of the statutorily prescribed period of levy. It has been reported that the basis for such a practice could be that the notification providing for levy of anti-dumping duty does not specify the end date.
  
  2. In this regard, attention is drawn to the Section 9A (5) of The Customs Act, 1975, which reads as under:
  
  “(5) The anti-dumping duty imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of five years from the date of such imposition:
  
  Provided that if the Central Government, in a review, is of the opinion that the cessation of such duty is likely to lead to continuation or recurrence of dumping and injury, it may, from time to time, extend the period of such imposition for a further period of five years and such further period shall commence from the date of order of such extension.
  
  Provided further that where a review initiated before the expiry of the aforesaid period of five years has not come to a conclusion before such expiry, the anti-dumping duty may continue to remain in force pending the outcome of such a review for a further period not exceeding one year.”
  
  3 From a plain reading of this provision it is evident that definitive/final anti-dumping duty can be collected only for a period of five years from the date of its imposition. Generally by virtue of Sub-section (2) of Section 9A of the Customs tariff Act, 1975, the anti dumping levy notified in pursuance of final findings of the Director General (AD) is effective from the date of imposition of provisional duty and therefore the period of five years is to be computed from such date. Collection beyond that period is permissible only when the said levy is extended by a notification either for further period of five years (in pursuance of the final findings of the Designated Authority in a Sun Set Review) or for one year (during the pendency of Sun Set Review). Thus, a definitive/final anti-dumping duty can be collected beyond the stipulated period only when a notification extending the levy has been issued, before the expiry of the parent notification. Unless such revalidation or extension is carried out by a fresh notification, the collection of final anti-dumping duty should cease on the completion of five years as mentioned above. Where the findings in a review are notified after the lapse of the parent notification, the notification in such cases would be effective prospectively from the date of issue of such notification.
  
  4. The above position may be brought to the notice of formations under your charge, for strict compliance.

  Yours faithfully, (Vivek Johri) Joint Secretary (TRU) Tel: 2309 2687 Fax: 2309 2031

• Import of hazardous waste under Hazardous Waste (Management, Handling and Transboundary) Rules, 2008 : The Central Board of Excise & Customs has issued Circular No. 27/2011-Customs (File No.401/130/2011-Cus III) dated 4th July, 2011on the above subject. CEBC has drawn attention to Rule 13, Hazardous Waste (Management, Handling and Transboundary) Rules, 2008. Chapter IV stipulates that CBEC has directed field formations to carefully and strictly implement the provisions of Hazardous Waste (Management, Handling and Transboundary) Rules, 2008. In particular, it should be noted that all imported goods falling within the purview of entry B 1110 of Part B of Schedule III of the said Rules, indicating second hand computers, would require the permission of the Ministry of Environment and Forests for import into India. It merits mention that the field formations should also refer to Rule 17 of the said Rules that treats contravening imports as illegal traffic requiring the importer to re-export the wastes at his cost within 90 days from the date of arrival. It is to ensure that India does not become a destination for dumping junk electronic products.
• Continuation of DEPB scheme for three months beyond 30.06.2011 i.e. up to 30.09.2011 : The central Board of Excise and Customs has issued Circular No. 26/2011-Cus (File No. 605.128/2005-DBK(Pt.) dated 1st July, 2011 about continuation of DEPB scheme for three months beyond 30.06.2011 i.e. up to 30.09.2011.
  Customs officers have been directed to ensure the all consignments that have been examined / found fit for export on 30.09.2011 are given 'Let Export' order promptly on the EDI system. In case of any systems related problem, 'Let Export Order' should be endorsed manually on such shipping bills on 30.09.2011 so that the interests of the exporters are not adversely affected.

Project Import Regulations, 1986 (PIR) – Instructions / regarding


• Customs Circular No.22/2011 dt. 4th May, 2011 : Project Import Regulations, 1986 (PIR) – Instructions / regarding. The Central Board of Excise & Customs, Ministry of Finance has issued Customs Circular No.22/2011 dt. 4th May, 2011 elaborating instructions regarding Project Input Regulations 1986 (PIR). This follows review by the Comptroller & Auditor General of India (C&AG) after a review of the working of ‘Project Imports’ scheme with a view to ascertaining the level of compliance, effectiveness of internal control and whether finalization. Interested members may see full details of Customs Circular No.22/2011 dt. 4th May, 2011 on CBEC website by http://www.cbec.gov.in/customs/cs-circulars/cs-circulars11/circ22-2k11-cus.htm.


CENVAT Credit Rules 2004– Regarding


• Circular No.943/04/2011-CX dated 29th April, 2011: Clarification on issues relating to CENVAT Credit Rules 2004– Regarding.

• Notifications: Customs Circular No.17/2011 dt. 8th April, 2011 : Implementation of ‘Self-Assessment” in Customs.

• Public Notice No.42/2009-2014(RE-2010) dt. 30th March, 2011 and Notification No.38(RE-2010)/2009-2014 dt. 31st March, 2011 : Regarding export of SCOMET items being regulated.
• Central Excise Notification No.13/2011-CX.-N.T. dt,. 31st March, 2011 – Further amending CENVAT Credit Rules, 2004

• Public Notice No.33(RE2010)/2009-14 dt. 15th Feb, 2011 - Regarding amendments in the Reward/Incentive Schemes of Chapter 3 - FTP 2009-14, App.37A & 37D of Handbook of Procedure Vol.I.

• To stay on course for transition to GST.
• Central Excise Duty to be maintained at standard rate of 10 per cent.
• Reduction in number of exemptions in Central Excise rate structure.
• Nominal Central Excise Duty of 1 per cent imposed on 130 items entering in the tax net.
• Lower rate of Central Excise Duty enhanced from 4 per cent to 5 per cent.
• Peak rate of Custom Duty held at its current level.

• Full exemption from excise duty is being withdrawn on microprocessors for computer, other than motherboards, floppy disc drive, hard disc drive, CD-ROM drive, DVD drives/DVD writers, flash memory and combo drives meant for fitment inside the CPU or laptop. These goods will attract a concessional rate of excise duty of 5%.
• Excise Duty on LEDs reduced to 5 per cent and special CVD being fully exempted.
• The concessional rate of excise duty of 4% is being increased to 5%. Accordingly, items such as prepared foodstuff like sugar confectionary, pastry and cakes; starches; paper and articles of paper; textile intermediates & textile goods; drugs, medical equipments etc. would now subject to the enhanced rate of duty of 5%.
• An excise duty of 1% without Cenvat credit facility is being imposed on about 130 specified items, which were hitherto either fully exempt from excise duty or chargeable to nil rate of excise duty. General SSI exemption would be available to all products covered under this new levy.
• A concessional rate of excise duty of 10% is being prescribed for hydrogen vehicles based on fuel cell technology.
• Excise duty is being reduced from 10% to 5% on hybrid kits for conversion of fossil fuel vehicles to hybrid vehicles. Parts of such kits would also attract 5% duty.

• Section 4A is being amended to substitute the reference to Standards of Weight & Measures Act, 1976 with Legal Metrology Act, 2009 with effect from 01.03.2011

• The basic customs duty rates of 2%, 2.5% and 3% are being unified at the median rate of 2.5%.
• Basic Custom Duty reduced for various items to encourage domestic value addition vis-ŕ-vis imports, to remove duty inversion and anomalies and to provide a level playing field to the domestic industry.
• Rate of Export Duty for all types of iron ore enhanced and unified at 20 per cent ad valorem. Full exemption from Export Duty to iron ore pellets.
• Basic Custom Duty on two critical raw materials of cement industry viz. petcoke and gypsum is proposed to be reduced to 2.5 per cent.
• Cash dispensers fully exempt from basic Customs Duty.
• Full exemption from basic Customs Duty and a concessional rate of Central Excise Duty extended to batteries imported by manufacturers of electrical vehicles.
• Exemption granted from basic custom duty and special CVD to critical parts/assemblies needed for Hybrid vehicles.

• A concessional import duty structure of 5% CVD and Nil SAD is being prescribed on parts of inkjet and laser-jet printers imported for manufacture of such printers.
• Full exemption from basic customs duty is being extended to parts/components required for the manufacture of PC connectivity cable and sub-parts of parts & components of battery charger, hands-free head phones and PC connectivity cable of mobile handsets including cellular phones.
• Full exemption from SAD presently available upto 31.03.2011 on parts, components and accessories for manufacture of mobile handsets including cellular phones is being extended upto 31.03.2012.
• Full exemption from customs duty is being extended to additional specified capital goods and raw materials for the manufacture of electronic hardware.
• A concessional import duty structure of 5% CVD and Nil SAD is being prescribed on parts for manufacture of DVD writers, Combo drives and CD Drives subject to actual user condition.

• Notification No. 14/2011-Customs dt. 1st March, 2011 amends Notification No. 25/1999-Customs, dated the 28th February, 1999 to expand the list of specified raw materials eligible for customs duty exemption
• Notfn no. 18/2011-Customs dt. 1st March 2011 substitutes the words “produced or manufactured in”, with the words “cleared from” (exemption for goods brought from a special economic zone to any other place in India)
• Notification No. 19 /2011-Customs dt. 1st March, 2011 amends Notification No. 23/2010- dated 27th February, 2010, expanding the scope of the exemption to “parts or components for the manufacture of battery chargers, PC connectivity cables and hands-free headphones of such mobile handsets and sub-parts for the manufacture of such parts and components”
• Notfn no. 20/2011-Customs dt. 1st March 2011 amends Notification no. 20/2006 dt. 1st March 2006 to include the following items for exemptions from special duty of customs:
  8443 99 Parts of inkjet and laser-jet printers
  8541 40 20 Light emitting diodes (electroluminescent) imported for manufacture of LED Lights or fixtures.
  Any chapter Parts of DVD Drive or DVD Writer, Combo Drives, CD-ROM Drives
• Notfn no. 22/2011-Customs dt. 1st March 2011 exempts parts, components and accessories for the manufacture of mobile handsets, etc. from the whole of the additional duty of Customs
• Notfn no. 25/2011-Customs dt. 1st March 2011 exempts packaged software or canned software, falling under Chapter 85 from a portion of the additional duty of customs

• Notification No. 6 /2011- Central Excise dt. 1st March 2011 makes further amends to Notification No. 6/2006-Central Excise, dated the 1st March, 2006 regarding concessional rates of duty, exemptions, etc.

• Notification No. 17/2011-ST dt. 1st March 2011 specifies exemptions of taxable services received by a unit in an SEZ

• Circular No.11/2011-Customs dt. 24th Feb, 2011 : Refund of 4% CVD (SAD) - Extension of time upto 30th June, 2011 for using re-credited 4% CVD (SAD) amount in DEPB.

• Public Notice No.30/2009-2014(RE-2010) dt. 14th Feb, 2011 : Amendment in paragraph 4.24A related to Advance Authorisation for Annual Requirement in HBP vI.

• Customs Circular No.06/2011 dt. 18th January, 2011 : Norms for Execution of Bank Guarantee in respect of Advance Authorisation/Duty Free Import Authorisation (DFIA)/EPCG Schemes.
• Public Notice No.22/2009-2014 (RE 2010) dt. 14th January, 2011 : Re-Credit Certificate for Re-export of defective/unfit goods and/or Re-assessment of Debited Duty and/or re-exports on account of any other reason.

• Notification No.1/2011-Customs dt. 6th January, 2011 : Exempting items required for the initial setting up of a Solar Power Generation project.
• Policy Circular No.11 RE(2010)/2009-14 dt. 4th January, 2011 : “On-line” submission of application – Clarification regarding use of manual mode for filibng application on DGFT’s server.

• Notification No.126/2010-Customs dt. 21st Dec/10 : Rescinding Notification No.31/2010-Customs dt. 27th Feb/10. The rescinded notification exempts packaged software or canned software, falling under Chapter 85 of the First Schedule of the Customs Tariff Act, 1975 (51 of 1975) from so much of the additional duty leviable thereon under sub-section (1) of section 3 of the said Customs Tariff Act, as is equivalent to the duty payable on the portion of the value of such goods determined under section 14 of the said Customs Act, or the rules made thereunder, read with sub-section (2) of section 3 of the said Customs Tariff Act, which represents the consideration paid or payable for transfer of the right to use such goods. The condition was that the importer shall make a declaration regarding consideration paid or payable in respect of such transfer to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be.

• Public Notice No.17/2009-2014 (RE-2010) dt. 6th Dec/10 : Amendment in paragraph 2.27 of Handbook of Procedures, Vol.1, 2009-2014 (RE 2010) regarding import of samples.

• Circular No.43/2010-Customs dt. 6th Dec/10 : Clarification on anti-dumping duty on parts/components of CFL from China and Hong Kong – also applicable to CFLs in CKD/SKD conditions.
• Customs Notification No.119/2010 dt. 19th Nov/10 : Continuation of anti-dumping duty on Polypropylene covered under Tariff 3902 1000 or 3902 3000.

• Circular No.42/2010-Customs dt. 29th Nov/10 : Classification of PXI Controllers, Input/Output Modules, Signal Converters and Chassis and parts

• Public Notice No. 14 (RE-2010) 2009-14 dt 2nd November, 2010 : This has been issued by the Director General of Foreign Trade to amend Paras 4.21 and 4.23 about enhancement in CIF / FOB values and revalidation of advance authorizations. Para 4.21 : Ambiguity in treating exports made on or subsequent to 27.8.2009 has been removed. Value addition as prescribed in Appendix 11B has also been included both in part (i) and (ii) of this sub-para. Para 4.23 : The amended para incorporates Value Addition of a specified product as stated in Appendix 11B. There is no other change.

• Circular No.40/2010-CUSTOMS dt. 28th Oct/10 : Reg. Revised Form of Bond to be furnished for availing duty exemption under Advance License and EPCG Scheme.

• Customs Circular No.39/2010 dt. 15th October, 2010 : About change in Drawback on supplies made by DTA units to SEZ, issue of drawback cheque books by jurisdictional commissioner of Customs to Central Excise Commissionerates.
• Policy Circular No.2/2009-14(RE 2010) dt.. 8th October, 2010 : Clarification on the procedure to re-credit 4% Special Additional Duty (SAD) of Customs in DEPB, VKGUY, FPS, FMS, MLFPS scrips.

• Customs Notification No.99/2010 dt. 30th Sept/10 : Clarifications regarding review of anti-dumping duty on Cathode Ray Colour Television Picture Tubes
• Customs Notification No.98/2010 dt. 28th Sept/10 : Imposing anti-dumping duty on DVDs with effect from 12th April, 2010.
• Circular No.38/2010-Cus dt 27th Sept/10 : Regarding new EPCG & SHIS Schemes under FTP 2009-14

• Central Excise Circular No.934/24/2010-CX dt. 25^th August, 2010 : Online Scheduling of factory stuffing inspection by Central Excise Officer

• Customs Notification No.84/2010-Cus (NT) & Circular No.35/2010-Cus, both dated 17th September, 2010 : Announcing revised All Industry Rates of Duty Drawback for 2010-11 effective from 20th September, 2010.

• Public Notice No.08/(Re-2010)/2009-14 dt. 6^th Sept/10 : Reg amendments made in Bank Guarantee & LUT Formats.

• Public Notice No. 04/2010 (RE-2009-14) dated 23rd August, 2010 : This Public Notice has been issued by DGFT for Joint Monitoring of EOU Units.
• Public Notice No.2/(RE2010)/2009-14 dt. 23rd August, 2010 : Amendments in the Reward/Incentive Schemes of Chapter 3 of FTP 2009-14 and adding new Focus Products.

• Improving the overall macro-financial environment through fiscal consolidation, a low and stable inflation regime, strengthening of the financial stability framework and progress on structural reforms will help sustain growth and boost productivity.
• The Reserve Bank has stated its commitment to containing inflation through its calibrated monetary policy normalisation, with clarity on the direction of the policy rates in the near-term as well as timely actions in cautious steps based on careful assessment of risks to both inflation and growth.
• Since India avoided a financial crisis at home, the risk of a potential output shock is remote. With fiscal consolidation, favourable demography and further structural reforms, the potential growth could be raised to double digit level.
• The large market borrowing by the Government exerted upward pressure on the yields on government securities during 2009-10. However, this was contained by active liquidity management by the Reserve Bank.
• Persistent large fiscal deficit has several adverse macroeconomic risks, ranging from higher inflation to lower savings, crowding-out pressures on private investment, decline in potential output, and worsening of external imbalances.
• In a globalised world, a congenial global economic environment and a sustainable balance of payments position are critical for achieving the policy goal of stable growth.
• Despite lower trade deficit, the decline in invisibles surplus led to a higher current account deficit of 2.9 per cent of GDP during 2009-10 as compared with 2.4 per cent of GDP a year ago. A higher current account deficit led to stronger absorption of foreign capital.
• Repeated supply shocks pose a constant challenge to ensuring a low inflation regime in India, which is necessary for achieving inclusive high growth. A medium-term approach is required to augment the supply by addressing structural supply constraints, particularly in items of mass consumption.
• In India, since the financial system did not face a crisis, the damage to the transmission channel was minimal, even though the pre-global crisis time structural rigidities continued to limit the effectiveness of Reserve Bank's monetary policy actions.
• The global crisis revealed how countries are interlinked beyond the conventional channels of trade and capital flows. Globalisation will continue to be a source of opportunity to maximise the country's growth potential, but there would be increasing pressures on current comparative advantages of India, besides raising the scope for faster transmission of shocks from the global economy to the domestic economy.
• Sound domestic policy environment is increasingly more important to minimise the impact of global shocks on domestic real economy. Past experience shows that some of the global shocks will emerge suddenly as black swans, and hence, policy space must be created and preserved at every stage to deal with such shocks.

• Customs Circular No.23/2010 dt. 29th July, 2010 : Refund of 4% Additional Duty of Customs (4% CVD) in pursuance of Notification No.102/2007-Customs dt. 14.9.2007 - Disposal of claims in respect of cases where assessments are provisional.

• Customs Circular No.20/2010 dt. 22nd July, 2010 : Regarding provision of single factory stuffing permission valid for all Customs House.

• Policy Circular No.39/2009-14 dated 15th July, 2010 : Regarding execution of LUT/BG against Import Authorisation issued by import of Restricted Items on Re-export basis.
• Notification No.53/2009-2014 dated 15th July, 2010 : Import Policy for "off-the-air GSM Monitoring Technology".

• Circular No.18/2010-Customs dt. 8th July, 2010 : Refund of 4% Additional Duty of Customs (4% CVD) in pursuance of Notification No.102/2007-Customs dated 14.9.2007 - Special Drive for clearance of pending 4% SAD refund claims.

• Customs Circular No.13/2010 dt. 24th June, 2010 : Amendment of the Customs, Central Excise & Service Tax Drawback Rules, 1995 and the Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995

• Central Excise Circular No.926/16/2010-CX, dt. 28th May, 2010 : Regarding procedure for electronic filing of Central Excise Returns, with amendments made in the Central Excise Rules, 2002 and CENVAT Credit Rules, 2004.

• Central Excise Notification No. 25/2010-CX dated 7th May, 2010 makes some changes in Notification No. 6/2006-Central Excise dated 1st March, 2006. Serial No. 17 has been substituted by the following:

  (1)	(2)	(3)	(4)	(5)
  “17.	8471 70 or 8473 30 or 8523 51 00	The following goods, namely:- Microprocessor for computer, other than motherboards; Floppy disc drive; Hard disc drive; CD-ROM drive; DVD Drive /DVD Writers; Flash memory; Combo drive,- meant for fitment inside the CPU housing/laptop body only; meant for use other than at (i) above	Nil 4%	- -“ ;

  (i) Excise Duty for the above mentioned parts continues to be NIL. The addition is that the NIL Excise is applicable only if the above parts are meant for fitment in the CPU housing / Laptop body for other end-uses Excise of 4% is leviable.

  Condition No.

  Conditions

  “28.

  If,- such goods are exempted from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under section 3 of the said Customs Tariff Act when imported into India; an officer not below the rank of a Joint Secretary to the Government of India, in the Ministry of Power certifies that the goods are required for a project of the nature specified in column (3) against S. No. 91B of the table; the Chief executive officer of the project furnishes an undertaking to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, to the effect that- the said goods will be used only in the said project and not for any other use; and in the event of failure to observe sub-clause (i) above, the manufacturer will pay the duty which would have been leviable at the time of clearance of goods, but for this exemption.”;

• Polytetrafluoroethylene (PTFE) falling under the customs subheading 3904 61 00 exported from Russia and Peoples of Republic of China continues to be subject to Anti-dumping Duty at US $3.42 per kilogram produced by any manufacturers and exporters
• Customs Notification No. 57/2010 dated 3rd May, 2010 shall be effective for a period of five years.

• Public Notice No. 52/2009-14 dated 31st March, 2010 : Adding some more electronic products, among others, under Marked Linked Focus Product (MLFP) for export benefit for six months from 1st April, 2010.

• Customs Notification No.37/2010 dt. 23rd March, 2010 : Imposing anti-dumping duty on import of 'Barium Carbonate'.
• Customs Notification No.39/2010 dt. 23rd March, 2010 : Imposing anti-dumping duty on import of 'Plastic processing or Injection Moulding Machines'.
• Central Excise Circular No.919/09/2010-CX dt. 23rd March, 2010 : Procedure for Electronic Filing of Central Excise and Service Tax Returns and for electronic payment of Excise Duty and Service Tax.
• Customs Circular No.5/2010 dt. 16th March, 2010 : Regarding verification mechanism in respect of the duty credit scrips issued under Chapter 3 schemes of the Foreign Trade Policy and in respect of Export Promotion Schemes viz. Advance Authorisation/Duty Free Import Authorisation (DFIA)/EPCG Schemes.

• Important 2010-11 Union Budget Notifications:-
  • Customs
    • Notification no. 16/2010-Cus dtd. 27 Feb 2010
    • Notification no. 18/2010-Cus dtd. 27 Feb 2010
    • Notification no. 21/2010-Cus dtd. 27 Feb 2010
    • Notification no. 22/2010-Cus dtd. 27 Feb 2010
    • Notification no. 23/2010-Cus dtd. 27 Feb 2010
    • Notification no. 27/2010-Cus dtd. 27 Feb 2010
    • Notification no. 28/2010-Cus dtd. 27 Feb 2010
    • Notification no. 29/2010-Cus dtd. 27 Feb 2010
    • Notification no. 30/2010-Cus dtd. 27 Feb 2010
    • Notification no. 31/2010-Cus dtd. 27 Feb 2010
  • Central Excise
    • Notification no. 12/2010-CE dtd. 27 Feb 2010
    • Notification no. 17/2010-CE dtd. 27 Feb 2010

• In the Central Excise Rules, 2002 (hereinafter referred to as the said rules), in rule 8, in sub-rule (1) in third proviso, for the words “duty of fifty lakhs rupees or more, other than the amount of duty paid by utilization of CENVAT credit, in the preceding financial year”, the worlds “total duty of rupees ten lakh or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year” shall be substituted.
• In the said rules,in rule 12, in sub-rule (1), after the second proviso and before third proviso, the following proviso shall be inserted, namely:-
  “Provided also that where an assessee has paid total duty of rupees ten lakh or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year, he shall file the monthly or quarterly return, as the case may be, electronically”.

• Policy Circular No.22/2009-2014 dt. 3rd Feb, 2010 : Prescribing procedure to re-credit 4% Special Additional Duty (AAD) of Customs in DEPB, VKGUY, FPS, FMS, MLFPS scrips in view of the refund facility allowed under Customs Notification No.102/2007-Customs dt. 14th September, 2007 (as amended) to be read with the Customs instructions communicated vide F.No.354/129/2007-TRU dt. 14.9.2007, Customs circular No.6/2008-Customs dt. 28th April, 2008 and 6/2009-Customs dt. 9th February, 2009.
• Public Notice No.38/2009-14 dt. 3rd Feb, 2010 : Amendment of paragraph 2.13.1, 3.11.7 and 4.50 of HBP Vol.1 for revalidation of freely transferable Authorisation/Duty credip scrips and re-credit of 4% SAD thereof.

• Setting set up a fund of Rs.10 crore ($2.17 million), which would be available to the private companies covering upto 50 per cent of their R&D expenses, and subject to a limit of Rs.10 lakhs ($21,740) per unit. This is intended to encourage and innovate R&D in chip design, product development in the nation.
• Contribute 50 per cent of the total cost of equipment to set up a lab as a one-stop solution for hi-tech facilities including chip-testing to encourage innovation and R&D
• Establish a 40sq.km ITIR (IT investment region) near the Bangalore international airport which would be a trend setter in the country. This is expected to create 40lakh (4million) jobs in the decade.
• Semiconductor-focussed school to be set up under IIIT at Rs.10 crores
• Fiscal benefits in line with the state industrial policy

• Central Excise Circular No.907/27/2009-CX dt. 7th Dec/09 : Clarification on issues related to reversal of Cenvat credit on WIP/finished goods written off in the books of accounts.
• Public Notice No.23/2009-2014 dt. 4th Dec/09 : Through this notification, the following clause has been added at the end of paragraph 4.23 of Handbook of Procedures, Vol.1, 2009-2014 : "In case of revalidation of advance authorization issued prior to 27.8.2009, it should be ensured that value addition is maintained at 15% (and as per details mentioned in para 4.1.6 of FTP) or as stipulated in the advance authorization, whichever is higher".

• Policy Circular No.17/2009 dt. 18th Nov/09 : Regarding issuance of EPCG authorization to Branch Offices etc. Through this circular issued by DGFT, it has been clarified that an application for grant of an EPCG authorization may be made by Regional Office or Head Office or a Branch Office or Manufacturing Unit of eligible exporter to the Regional Authorities concerned. Para 4.2 & 4.3 HBP Vol.-1 apply mutatis mutandis to EPCG scheme also.

• Customs Circular No.26/2009 dt. 30th Sept/09 : Giving salient features of Foreign Trade Policy (FTP), 2009-14, notified by DGFT on 27th August, 2009. The Department of Revenue has since issued notification Nos.91/09-Cus to 103/09-Cus all dated 11.9.2009, 104/09-Cus & 105/09-Cus, both dated 14.9.09, 109/99-Cus dt. 24.9.09, 23/09-CE(NT) dt. 25.9.09 and 112/09-Cus dt. 29.9.09, to implement the Policy and the Handbook. New Schemes introduced include Status Holder Incentive Scheme (SHIS), Zero Duty Export Promotion Capital Goods (EPCG) Scheme. The circular also indicates the changes made in some of the existing Export Promotion Schemes.
• Press Note No.7(2009) dt. 26th Sept/09 : Guidelines for Foreign Investment in Commodity Exchanges.

• Customs Notifications: No. 77/2009 Dt 7th July 2009 – Set Top Boxes and LCD,
• No. 79/2009 Dt 7th July 2009 – Parts components & accessories of Mobile Phones, and No. 80/2009 Dt 7th July 2009 – Packaged Software
• Central Excise Notifications: No. 16/2009-CE dt 7th July 2009 – MP3/MP4 or MPEG4 players, Smart Cards, and No. 22/2009-CE Dt 7th July 2009 – Packaged Software
• Service Tax Notifications: No. 17 & 18/2009 Dt 7th July 2009 – Exemption for Taxable Service received by an exported of goods

• No.71 & 72/2009-Customs, both dt. 19th June/09 : Regarding Safeguard Duty on Aluminium Flat Rolled Products and Aluminium Foil. Notification No.72 rescinds the earlier notification No.26/2009-Customs dt. 23.3.2009.
• No.112(RE-2008)/2004-2009 dt.16th June/09 (by DGFT) : Prohibiting import of Mobile Handsets (classified under EXIM Code ‘8517’) without International Mobile Equipment Identify (IMEI) No. or with all Zeroes IMEI with immediate effect.

• Customs Notification No.58/2009 dt. 5th June, 2009 : Imposing definitive anti-dumping duties on imports of Compact Discs-Recordable (CD-Rs), originating in or exported from Iran, Malaysia, Korea ROK, Thailand, UAMes and Vietnam

• Notification dated 29th May 2009 : Through this notification, the DG Safeguards has excluded Aluminium Foils of stringent specifications like "thickness less than 7 microns" and "foils of 10.5 microns with rough surface" from the Safeguard Duty, giving relief to manufacturers of Capacitors using formed & etched aluminium foils. Corresponding notification is yet to be issued by the Finance Ministry.

• Notification No.55/2009-Customs dt. 26th May, 2009 : Imposing anti-dumping duty on CFL for import from China, Sri Lanka and Vietnam
• Customs Circular No.17/2009 dt. 25th May, 2009 : Norms for execution of Bank Guarantee under specified export promotion schemes - Modification in Circular No.58/04-Cus dt.21.10.04-reg.

• Circular No.16/2009-Customs dt. 25th May, 2009 : Regarding grant of All Industry Rate of Duty Drawback to merchant exporters.
• Customs Notification No.50/2009 dt. 15th May/09 : Specifying anti-dumping duties on import of Cathode Ray Colour Television Picture Tubes from different countries.

• Circular No.114/08/2009-ST and Notification No.15/2009-Service Tax, both dated 20th May, 2009 : Regarding refund of service tax paid on taxable services provided in relation to the authorized operation in a Special Economic Zone (SEZ).

• Circular No.14/2009-Customs dt. 6th May, 2009 : Regarding implementation of Phytosanitary requirements in import or export of goods.
• Policy Circular No.84(RE-2008)/2004-09 dt. 30th April/09 : Terms and conditions for issue of EPCG authorizations to EOU units after conversion to DTA unit.
• Notification No.SO.563(E) dt. 27th Feb/09 (issued by Department of Industrial Policy & Promotion) : Rescinding of earlier Notification No.S.O.857(E) dt. 10.12.1997, which specified the basis on which an industrial undertaking was regarded as a Small Scale or an ancillary Industrial undertaking. This, inter alia, provided the basis on which a Small Scale or an ancillary Industrial undertaking was considered as a subsidiary of or owned or controlled by any other industrial undertaking.

• Policy Circular No.80(RE-2008)/2004-2009 dt. 13.4.2009 : Clarification regarding extension of Export Obligation Period (EOP) against Advance Authorisation. Through this Policy Circular, it has been clarified by DGFT that the facility shall be available to all advance authorizations which are within 36 months from the date of issuance of the authorization, as on 26th Feb. 2009 or thereafter. However, in cases wherein composition fee has already been deposited to Regional Authorities prior to 26th Feb/09 for EOP extension in terms of earlier provision of paragraph 4.22 related to EOP extension, no refund of the composition fee so deposted shall be allowed.

• Public Notice No.167(RE-2008)/2004-2009 dt. 30th March, 2009 : Adding a new paragraph 2.20A (after para 2.20 in the Handbook of Procedures) related to “Execution of Bank Guarantee/Legal Undertaking for DEPB/Freely transferable Incentive Schemes under Chapteer 3”, as follows: “At the time of filing application for scrip(s) under DEPB Scheme/Freely transferable incentive Scheme under Chapter 3 of FTP without Bank Realisation Certificate (BRC), the applicant shall executve BG/LUT (as per customs circular no.58/2004) with the RA as per Appendix 25C or Appendix 25D respectivey”
• Policy Circular No.76(RE-2008)/2004-2009 dt. 30th March, 2009 : Regarding guidelines for execution of BG/LUT with Regional Authorities for filing application under DEPB scheme and incentive schemes of Chapter 3 of FTP without the requirement of Bank Realisation Certificate..
• Public Notice No.164(RE-2008)/2004-2009 dt. 25th March, 2009 : Through this Public Notice, para 5.4 of HBP (Vol.I) 2004-2009, updated as on 11-4-2009, has been amended as under:- “An EOU/a relocated SEZ unit, while converting to a DTA unit, may apply for an EPCG authorization in ANF along with documents prescribed therein. ‘No Objection Certificate’ should be produced from concerned Development Commissioner”.
• Policy Circular No.72(RE-08)/2004-2009 dt. 24th March, 2009 : Doubts had arisen on the issue of allowing alternative inputs as per SION under DFIA scheme, even if the input mentioned in the SION, has not been specifically utilized in the manufacture of the exported product. According to the subject Policy Circular, the government has examined the matter in detail and clarified that since the objective of SION is to allow duty free import of inputs which are actually used or are capable of being used in the export product, the exporter has the flexibility to import the alternative input/product mentioned in the SION.

• Notification No.31/2009-Customs dt. 27th March, 2009 : Imposing anti-dumping duty on Colour Picture Tubes from Indogensia.
• Notification No.26/2009-Customs dt. 23rd March, 2009 : Imposing Safeguard Duty on Aluminium Products
• Notification No.95(RE-2008)/2004-09 dt. 13th March, 2009 : Adding the following in para 6.7 in Foreign Trade Policy: “(d) Applications for conversion into an EOU/EHTP/STP/BTP unit from existing DTA units, having an investment of Rs.50 crores and above in plant and machinery or exporting Rs.50 crores and above annually, shall be placed before BoA for a decision”.

• Customs Circular No.11/2009 dt. 25th Feb/09 : Duty Free Import Authorisation (DFIA) Scheme - availment of facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or Cenvat credit under CENVAT Credit Rules, 2004 under Notification No.40/06-Cus dt. 1.5.06.
• Customs Circular No.10/2009 dt. 25th Feb/09 : Certification of Invoices for supply of goods from DTA to EOUs for claiming Deemed Export benefits.
• Public Notice No.151(RE-2008)/2004-09 dt. 26th Feb/09 : Changes/amendments made through the interim Foreign Trade Policy.
• Notification No.88/2009 dt. 26th Feb/09 : Various amendments announced through the interim Foreign Trade Policy.
• Press Note No.4(2009 Series) dt. 25th Feb/09 : Clarificatory guidelines on downstream investment by Indian companies.

• Customs Notification No.14/2009 dt. 19th February, 2009. Exempting goods when imported into India against a duty credit scrip issued under the Hi-tech Product Export Promotion Scheme in accordance with paragraph 3.11 of the FTP. The benefit under this notification shall be available only in respect of duty credit scrip issued against export of the products specified in the Table annexed to the notification. Such products include Public Call Office, SIM Cards, Memory Cards, Cellular Phones, Hybrid Integrated Circuits, Solar Cells/Photovoltaic Cells etc.
• Press Note No.2(2009) dt. 13th February, 2009 : Guidelines for calculation of total Foreign Investment i..e. Director and Indirect Foreign Investment in companies.
• Notifications No.S.O. 199(E) & S.O.200(E) dt. 16th January, 2009. Issued by the Ministry of Micro, Small and Medium Enterprises, amending the Notification No.S.O.1642(E) dt. 29th Sept/06, wherein the format of Entrepreneurs’ Memorandum (EM) had been notified.

• The Gross Domestic Product recorded a sustained growth of over 9 per cent for three consecutive years for the first time with agriculture, services, manufacturing along with trade and construction as growth drivers.
• Fiscal deficit down from 4.5 per cent in 2003-04 to 2.7 per cent in 2007-08 and Revenue deficit from 3.6 per cent to 1.1 per cent in 2007-08.
• While manufacturing sector recorded growth of 9.5 per cent per annum in the period 2004-05 to 2007-08, communication and construction sectors grew at the rate of 26 per cent and 13.5 per cent per annum, respectively.
• Exports grew at an annual average growth rate of 26.4 per cent in US dollar terms in the period 2004-05 to 2007-08. Foreign trade increased from 23.7 per cent of GDP in 2003-04 to 35.5 per cent in 2007-08.

• Customs Circular No.6/2009 dt. 9th Feb, 2009 : Regarding procedure to be adopted for refund of 4% Special Additional Duty of Customs in pursuance of Notification No.102/2007-Custom dt. 14.9.2007. As per para 7.3 of the 2007 circular, it was clarified that in case of 4% CVD having been paid through DEPB Scrip, the amount eligible for refund should be re-credited on the relevant DEPB Scrip. Through the latest circular, the Finance Ministry has decided to extend the same facility to VKGUY, FPS and FMS Scrips also.

• Customs Circular No.4/2009 dt.28th Jan/09 : Clarifications in respect of quantum of Bond and Bank Guarantee (BG) under Advance Authorisation and Export Promotion Capital Goods Schemes.
• Customs Notification No.8/2009 dt. 22nd Jan/09 : Imposing anti-dumping duty on import of digital versatile discs-recordable generally known as DVD-R and DVD-RW from China, Hong Kong and Chinese Taipei
• Policy Circular No.56(RE-2008)/2004-2009 dt. 21st Jan/09 : Claim of freely transferability duty credit scrip benefits under Chapter 3 of FTP, clarification regarding eligibility of exports by EOU thereunder.

• Public Notice No.131(RE-2008)/2004-2009 dt. 13th Jan/09 : Replacing the existing Appendix 22A (“Bank Certificate of Exports and Realisation (BRC”) & ANF 4G (“DEPB Application Form”) by new ones as Annexures I & II to the Notification.
• Customs Circular No.01/2009 dt. 13th Jan/09 : Examination norms for goods exported under Reward Schemes.

• Public Notice No.124(RE-2008)/2004-2009 dt. 3-1-2009 - Withdrawing Public Notice No.102 dt. 5.11.2008 and Restoring the DEPB Rates prior to 5th Nov/08.
• Public Notice No.125(RE-2008)/2004-2009 dt. 3-1-2009 - Extending the DEPB Scheme upto 31st Dec, 2009

• Public Notice No.114(RE-2008)/2004-2009 dt. 10th Dec/08 : Through this notification, goods such as LCD Television Set (HS Code 85281218 & 85281219), Optical fibres, optical fibre bundles and cables (HS Code 90011000) and Instruments and Appliances used in medical, surgical dental or veterinary sciences including scientigraphic apparatus, other electro-medical apparatus and sight-testing instruments, are covered in Appendix 37D for being eligible to benefits under High Value Added Manufactured Goods (Para 3.10.2 of Foreign Trade Policy 2004-2009) on exports made w.e.f. 1.4.2008. This is subject to the condition that they shall be eligible for this export benefit only if the value addition is at least 100% and if exported as export obligation under Advance Authorisation Scheme or under Duty Free Import Authorisation Scheme

• Notification No.58/2008-Central Excise dt. 7th Dec/08 - Reducing Excise Duty by 4% across-the-board.

• Public Notice No.107/RE-2008)/2004-2009 dt. 11th Nov/08 : Making amendments in Handbook of Procedures, Vol.1 (RE-2008) with regard to procedure for filing applications, with Aayaat Niryaat Form (ANF 3F)for High-Tech Productions Export Promotion Scheme (HTPEPS).

• Circular No.18/2008-Cus. Dt. 10th Nov/08 : Regarding computation of value under Section 14 for Levy of Export Duty
• Public Notice No.102(RE-2008)/2004-2009 dt. 5th Nov/08 : New DEPB Rates effective from 5th Nov/08.

• Customs Circular No.14/2008 dt. 26th Sept/08 : Procedure for issue of Installation Certificate for the Capital Goods imported/procured locally under EPCG Scheme.
• Customs Circular No.15/2008 dt. 26th Sept/08 : Authentication of Supply Invoice by the Central Excise Authorities for claiming Deemed Export Benefits.

• Circular No.105/08/2008 dt. 16th Sept/08 : Regarding Service Tax issues relating to units in SEZ. Through this circular by the Finance Ministry, the following issues have been clarified:-
  
  Non-payment of service tax by SEZ units providing taxable service outside SEZ : Although taxable services received by SEZ units and SEZ developers for consumption within the SEZ are exempt from Service Tax under Notification No.4/2004-ST dated 31.3.2004, Service Tax is payable by SEZ units on taxable services except those speofoca;;u exempted.
  Refund of Service Tax on taxable services used for the purposes of exports of goods by SEZ units : Refund of Service Tax paid on taxable services used for exports by SEZ units is processed by respective S.T. Commissionerates in Delhi, Mumbai, Bangalore, Ahmedabad, Kolkata and Chennai and the jurisdictional Central Excise Commissionerates elsewhere.
• NMCC calls for scrapping inverted duty structures, bringing in GST to boost manufacturing : Stressing on the need for rationalization and simplification of the country indirect tax structure, the National Manufacturing Competitiveness Council (NMCC) has called for an early implementation of the goods and services tax (GST), abolition of inverted duty structures and linking fiscal incentives to value addition by industries. The panel led by Mr. V. Krishnamurthy, Chairman, NMCC in its report – Measures for Ensuring Sustained Growth of the Indian Manufacturing Sector – submitted to the Prime Minister on 20th Sept/08 has said bringing about such changes will help promote domestic manufacturing and industry and help them compete with other countries in the international market. Calling for the reduction of the total tax level in the country, the report notes “A study done in the year 2002 comparing the prices of a range of manufactured products in India and China found that the prices of Indian products were higher, on average, between 28% and 33%, half of which is attributed to the difference in indirect tax levels. In this regard, it is imperative for the Finance Ministry to stick to its target of abolishing the CST by 2010 and introducting GST that would subsume service tax and excise duty along with a plethora of state taxes.

• Public Notice No.81(RE-2008)/2004-2009 dt. 16th Sept/08 : Replacing Para 2(a) and 2(b) of the Appendix 14-1-1 by the following:-
  “2(a) The supplies from DTA to EOU/EHTP/STP units must be utilized by them for production of goods/services and may include raw material, components, consumables, packing materials, capital goods, spares, material handling equipment etc. on which CST has been actually paid by the EOU/EHTP/STP”.
  “2(b) While dealing with the application for reimbursement of CST, the Development Commissioner or the designated officer of the EHTP/STP shall see, inter alia, that the purchases are essential for the production of goods/services by the units”. Clause (a) of undertaking and declaration below Annexure 1 in Appendix 14-1-1 has also been replaced.

• Policy Circular No.31 (RE-2008)/2004-2009 dt. 8th Sept/08 : Clarification on transfer of inputs to the Notified areas stated in paragraph 4.5 of HBP v.1 under DFIA scheme.

• Notification No.103/2008-Cus dt. 29th August, 2008 : Regarding revised All Industry Rates of Duty Drawback for 2008-09 effective from 1st Sept/08.

• RBI Ref. No. RBI/2008-09/127- A. P. (DIR Series) Circular No. 06 dt. 13th Aug/08 : Liberalising the procedure for dispatch of shipping documents by the exporter direct to the consignee, and for realisation and repatriation of export proceeds. The simplification of procedure will apply to all exports which are up to USD 1 million or its equivalent per export shipment.
• RBI Ref. No.RBI/2008-09/134–A. P. (DIR Series) Circular No. 09 dt 21st Aug/08 : Lliberalising the advance remittance for import of goods.

• Customs Notification No. 100/2008-NT dated 13th August 2008: Makes the Customs Tariff [Determination of Origin of Products under the Duty Free Tariff Preference Scheme for Least Developed Countries] Rules, 2008
• Customs Notification No. 96/2008 dated 13th August 2008: Duty Free Tariff Preference Scheme for Least Developed Countries. The Notification is regarding tariff concessions on the applied rates of duty for specified goods when imported into India from countries listed in the Schedule to the Notification viz. Kingdom of Cambodia and the United Republic of Tanzania.

• Notification No.29(RE-2008)/2004-09 dt. 6th August, 2008 : Adding a new Paragraph 8.5.2 (after para 8.5.1) under sub-head ‘Eligible for refund of terminal excise duty/drawback’ in Foreign Trade Policy 2004-09 as follows – “For the applications of Duty Drawback and Terminal Excise Duty refund submitted on or after 06.08.2008, the period of 30 days will be counted from the date of receipt of complete applications as provided in Paragraph 9.10.1 of HBP Vol 1 2004-09 (updated as on 11.04.2008) and interest will be payable if the case is not settled within 30 days of receipt of complete application”.
• Public Notice No.58(RE-2008)/2004-2009 dt. 5th August, 2008 : Para 6.35 in the Handbook of Procedures (Vol. 1) substituted as follows – “Clearance of capital goods, including second hand, in DTA shall be allowed as per FTP on payment of applicable duty and import policy in force on date of such clearance”.
• Customs Notification No.93/2008 dt. 1st August, 2008 : Substituting sub-paragraph © in paragraph 2 of Notification No.102/2007-Customs dt. 14-9-2007 as follows – “© the importer shall file a claim for refund of the said additional duty of customs paid on the imported goods with the jurisdictional customs officer before the expiry of one year from the date of payment of the said additional duty of customs”.

• Policy Circular No.23(RE-08)/2004-2009 dt 28th July, 2008 : Regarding eligibility of supplies to EOUs for deemed export benefits

• Notification No.89/2008-Customs dt. 23rd July, 2008 : Imposing Anti-dumping duty on imported DVD-R/ DVD-RW (Heading 8523) from China PR, Hong Kong, Taiwan etc.

• Policy circular No.17/RE-08/2004-2009 dt. 4th July, 2008 : Clarification regarding submission of multiple applications and part payments for claiming deemed export benefits under para 8.3.1. of HBP. It has been clarified that in respect of all the claims arising for a particular calendar month/quarter (as per option of the applicant), a single consolidated application should be filed within the stipulated time period.

• Customs Circular No.11/2008 dt. 1st July, 2008 : Issues relating to classification of Large Format Printers.
• Notification No.21(RE-2008)/2004-2009 dt 1st July, 2008 : Amendment in Foreign Trade Policy and adding the following at the end of paragraph 6.5 – “Whenever a unit is unable to export due to prohibition/restriction imposed on export of any product mentioned in LoP, the five year block period for calculation of NFE earnings may be suitably extended by BoA”.

(a) The said non-reversal shall be allowed only for the CENVAT credit taken upto 12th February, 2004.

(b) The said non-reversal shall be allowed only when excise duty has been paid on removal of the said final product.

(c) The said assessee shall not a claim of refund of the excise duty paid by him on the said final product.

Provided that the CENVAT credit, if any, taken by the buyer of the said final product, of the excise duty paid by the said assessee on the said final product made and cleared upto 12th February, 2004 shall not be required to be reversed. [Notification No. 22/Central Excise (Non Tariff)]

(Please refer to Circular No. 101/4/2008-ST dated 12th May, 2008)

The exemption which is subject to some conditions is applicable is

1. Capital goods for pre-production, production and post production including second hand capital goods.
2. Capital goods in Semi Knocked Down (SKD) / Completely Knocked Down (CKD) conditions to be assembled into capital goods by the importer.
3. Spare parts of goods specified at Serial Nos. 1 and 2 as actually imported and required for maintenance of capital goods so imported, assembled, or manufactured.
4. Spare parts for the existing plant and machinery of the licence or authorization holder.
5. Motor cars, sports utility vehicles / all purpose vehicles.

The States' position has been conveyed to the centre in the report of the Empowered Committee of State Finance Ministers, headed by West Bengal Finance Minister Asim Dasgupta, submitted to the Centre earlier this month. With differences arising between the Centre and States on the very model of GST, and discussions on proposed rates yet to start, the GST rollout could miss its April 1, 2010, deadline.

• CBEC Circular No.341/15/2007-TRU dt. 17th April, 2008 : Instructions for timely payment of refund claims to exporters.

• DEPB Scheme extended till May 2009.
• IT hardware brought under special focus
• IT exemption for 100% EOUs extended by a year till March 2010
• Reduced interest rates for rupee-hit and small exporters extended by a year
• Average export obligation under EPCG scheme lowered, large exporters can cut commitments

• Policy Circular No.1(RE-08)/2004-2009 dt. 11th April, 2008 : Clarification regarding Service Tax Refund.

• Customs Notification No.34/2008 dt. 13th March, 2008 : Imposing anti-dumping duty on imports of Compact Discs-Recordable (CD-Rs) originating or exported from Iran, Malaysia, Korea ROK, Thailand, UAEs and Vietnam. The duty amount ranges from Rs.0.74,Rs.1.11,Rs.2.27,Rs.2.63,Rs.3.04,Rs.3.08, Rs.3.09 & Rs.3.23 per piece, depending upon the country of origin and country of export.

• Customs Notification No.32/2008 dt. 5th March, 2008 : Amending Notification No.69/2004-Customs dated 9th July, 2004 to add S.No.54 (after 53) with description of goods “All goods falling under tariff items 8517 12 10 and 8517 12 90”
• Public Notice No.122 (RE-2007)/2004-2009 dt. 4th March, 2008 : Through this Public Notice, a subparagraph has been added in Para 3.2.5 III of Handbook of Procedures (Vol.1), so as to provide that licensing authority shall endorse the name of the supporting manufacturer on the certificate as co-licensee. Consequently, listed supporting manufacturers shall be ‘co-licensees’ for DFCE for Status Holders Scheme 2003-04 issued under Para 3.7.2.1(vi) of the Export and Import Policy (RE2003) and duty credit scrips which have been already issued under the scheme shall be deemed to have been amended to this extent..
• Policy Circular No.31(RE-07)/2004-2009 dt. 29th Feb/08 : Clarification regarding requirement for return of original TR-6 Chalan evidencing payment of customs duty for the excess raw material imported against Advance Authorisation Scheme.
• Notification No.S.O.246(E) dt. 5th Feb/08 : Notifying the list of 79 de-reserved items for exclusive manufacture in the micro and small enterprise sector (SSI). This list includes : Voltage stabilizers – domestic type upto 5 KVA, PVC wires-domestic type, Exhaust fans upto 460 mm, Electrical light fitting chokes & starters, Amplifiers for entertainment and public address system.

• GDP Growth rate projected @ 8.7% in 2007-08 compared to 9.6% in 2006-07
• Avg growth rate in last 4 years is >8.5%
• Growth in Manufacturing Sector decelerated to 9.4% from an unexpectedly high 12% in 2006-07.
• Growth in Services sector estimated @10.7 % compared to 11.2% in 2006-07.
• Emphasis on Inclusive growth, Education, Health and Infrastructure expansion continues
• Concerns about oil prices and food grain prices, overall inflation and sluggish growth of agricultural output
• CST reduced to 2% wef 1-4-08 and re-confirmation of movement towards a consolidated GST by 2010.
• Risk Capital Fund being created in SIDBI for Micro, Small & Medium Enterprises (MSME’s)
• A non profit corporation to be established to address the challenge of Skill Development required by India’s growing economy (under Skill Development Mission)
• Few inputs added to Notif 25/99 for zero duty imports and additional inputs for Set Top Boxes brought to zero CD
• No additional support or consideration for high value added IT/Hardware manufacturing
• Appreciable increase in Individual Direct Tax Exemption limits
• No change in Corporate Tax

• Peak rate of customs duty on non-agricultural products remains at 10%
• Customs duty on project imports attracting 7.5% has been reduced to 5%.
• Customs duty on specified convergence products has been reduced from 10% to 5%.
• Customs duty on specified raw materials and inputs for use in IT/electronic hardware industry has been reduced from 10%/7.5% to Nil, on end-use basis.(Notif no. 25/2008-Cus)
• Customs duty on specified parts of set-top boxes has been reduced from 7.5% to Nil on end-use basis. (Notif no. 21/2008-Cus)
• Customs duty on iron or steel melting scrap has been reduced from 5% to Nil.
• Customs duty on aluminium scrap has been reduced from 5% to Nil.
• Customs duty on phosphoric acid has been unified at 5% irrespective of its use.

• General rate of excise duty (CENVAT) has been reduced from 16% to 14%. The other ad valorem rates of 24%, 12% and 8% remain unchanged.
• Excise duty has been fully exempted on Wireless data modem cards. Consequently, CVD shall also be exempted on imported cards. 4% additional duty of customs will, however, be applicable.
• Excise duty has been reduced from 16% to 8% on specified Convergence Products.
• Excise duty has been increased from 8% to 12% on packaged software.
• National Calamity Contingent duty (NCCD) at the rate of 1% has been imposed on mobile phones. On imported mobile phones, this duty shall be levied as additional duty of Customs under section 3(1) of the Customs Tariff Act, 1975.
• National Calamity Contingent duty of 1% currently leviable on Polyester filament yarn has been withdrawn.

• Economic Survey push for reforms :The annual Economic Survey for 2007-08, presented to the Parliament on 28th Feb/08 by the Finance Minister, indicates that India’s economy has moved to a higher growth trajectory, but sustaining the momentum requires bold policy moves. Coming at a time of turmoil in global financial markets, the Survey warned of possible spike in inflation and how it could make the task of sustaining growth even more duating. The new challenge is to maintain growth at these levels, not to speak of raising it further to double digital levels. After tabling the Survey in Parliament, the Finance Minister said “Optimisium with caution” would be the watchword for 2008-09. The Survey indicates : Economic Growth of 8.7% against 9.6% in 2006-07, Inflation rate to decline ffrom 5.6% in 2006-07 to 4.4% in 2007-08, Exports reach $111 billion in first 9 months of 2007-08, Imports grow 25.9%, FDI inflows reach $11.2 billion.
• Highlights of Railway Budget for 2008-09 : Some of the main features of the Railway Budget announced by the Railway Minister Shri Lalu Prasad, on 26th Feb/08, are : No hike in freight rates, 5% reduction in petrol & diesel rates, freight loading target upped by 7.6% to 850 mt in 2008-09, Railways to use PPP route to attract Rs.1 lakh crore investment, AC & 2nd class fares reduced Booking through mobiles, e-tickets for waitlisted passengers, Rs.75,000 crore for infra upgration, 20,000 new wagons by 2009, plans to upgrade railways with new technologies..

• Notification No.29/2008-Customs dt. 1st March, 2008 – Imposing 1% NCCD as Central Excise on mobile phones manufactured in India and as additional customs duty on imported mobile phones.
• Notification No.25/2008-Customs dt. 1st March, 2008 : Reducing customs duty on specified raw materials and inputs to Nil by adding to Notfin No.25/99
• Notification No.21/2008-Customs dt. 1st March, 2008 : Reducing customs duty on specified parts of set top boxes from 7.5% to Nil on end-use basis.
• Public Notice No.113 dt.15-2-2008 : Amending Appendix 17D and Paras 3.2.5.III & 3.2.5.VII of Handbook of Procedures for Target Plus Scheme 2004-05 & 2005-06.
• Public Notice No.111 dt.15-2-2008 : Procedure amended for DFCE & Target Plus Scheme for status holders.
• Public Notice No.106 dt. 6-2-2008 : Amending the procedure for claiming duty credit scrip under Target Plus Scheme 2004-05 in terms of para 3.2.5(III) of the Handbook of Procedures (2004-2009), Vol.1 (revised edition 2004) to support manufacturers.

• Notification No.3/2008-ST dt. 19th Feb/08 – Extension of service tax refund for 3 more services.
• Customs Circular No.4/2008 dt. 12th Feb/08 – Regarding Valuation practice of second hand machinery to be adopted by all Customs Houses/Customs Commissionerates.

• Policy Circular No.29(RE-07)/2004-2009 dt. 6th Feb 2008 : Clarification regarding clubbing of Advance Authorisations under paragraph 4.20 of HBP Vol.1.
• Customs Notification No.14/2008 dt. 4th Feb. 2008 : Further amending S.No.14, in col.(3) in the Explanation, in Not. No.39/96-Customs dt. 23rd July, 1996.

• Notification No.72(RE-2007)/2004-2009 dt. 22nd Jan/08 : Making amendment in the provision for Exit from EOU Scheme (Para 6.18 of FTP 2004-09), replacing the existing para 6.18(d) by the following:-
  "An EOU/EHTP/STP/BTP unit may also be permitted by Development Commissioner, to exit from the scheme on payment of duty on capital under the prevailing EPCG Scheme for DTA units. This will be subject to fulfillment of positive NFE criteria under EOU scheme, eligibibility criteria under EPCG Scheme and standard conditions indicated in HBP V.1".
  (Existing para 6.18(d) : “An EOU/EHTP/STP/BTP unit may also be permitted by Development Commissioner, to exit from the scheme on payment of duty on capital under the prevailing EPCG Scheme as a one time option. This will be subject to fulfillment of the eligibility criteria under that scheme and standard conditions indicated in Handbook (Vol-1)”.
• Policy Circular No.28/07 (2004-2009) dt. 22nd Jan/08 : Explanatory note to Public Notice No.99 (RE-2007) dt. 8.1.2008
• Central Excise Notification Nos.03/2008-NT and 04//2008-NT, both dt. 18th Jan/08 : Amendments in Central Excise Rules.

• Excise Notification No.05/2008-Central Excise (N.T.) & No.06/2008-Central Excise (N.T.), both dated 24th Jan, 2008 : Introducing Abatement Rates from 25th Jan/08.
• Policy Circular No.27(RE-07)/2004-2009 dt. 17th Jan, 2008 : Validity of Registration-cum-Membership Certificate (RCMC) and Councils authorized to issue RCMC.
• Public Notice No.102(RE2007)/2004-09 dt. 16th Jan. 2008 : Amendments in the Handbook of Proceudres (Vol.1), (RE-2007), para 8.3.1(ii) and (iv).
• Customs Notification No.10/2008 dt. 15th Jan, 2008 : Reducing customs duties on imports from Singapore on some items falling under Tariff 85.

• Public Notice No.100(RE-2007)/2004-2009 dt. 10th Jan, 2008 : Amending the following paras in Handbook of Procedures, Vol.1(RE2006 & RE2007):- (A) Para 3.21.1 for Focus Product Scheme Replacement, (B) Para 3.22.2 for High-Tech Products Export Promotion Scheme Replacement, (C) Revised ANF 3E for Focus Product Scheme as annexed to the Public Notice, and (D) Para 3.20.1 for Focus Market Scheme Replacement.
• Policy Circular No.26(RE-2007)/2004-2009 dt. 9th Jan/08 : Export of restricted/prohibited items, clarification regarding eligibility under Schemes under Chapter 3 of FTP 2004-09.
• Customs Circular No.1/2008 dt. 9th Jan/08 : Allocation of Work relating to Trade Facilitation. Authorising DGEP (Directorate General of Export Promotion) to look after the work relating to 100% EOUs, SEZ, STPI and EHTP etc.).
• Notification No.2/2008,F.No.149/278/2006-TPL dt. 8th January, 2008 : Amendments in Income Tax Rules, 1962 regarding eligibility of Industrial Parks for benefits under section 80-1A(4)(iii).
• Public Notice No.99(RE-2007)/2004-2009 dt. 8th Jan/08 : Amendment in Handbook of Procedures, Vol.1(RE-2007), adding the following at the end of paragraph 5.7.4 “Additional Export Obligation (over and above indicated average) for all previous EPCG licences, which have not been redeemed, will be indicated separately”.
• Public Notice No.97(RE-2007)/2004-09 dt. 4th Jan/08 – Amending Para 2.59.2 of Handbook of Procedures, Vol.1, regarding list of Agencies authorities (for ISO-9000 and ISO-14000 (Series) to grant quality certification.

• Policy Circular No.24(RE-2007)/2004-2009 dt. 1st Jan 2008 : Clarification regarding Merger(s) and Acquisition(s) of companies and/or firms during 1.4.2002 to 31.3.2006 and consequential grant of benefits under DFCE for Status Holders’ Scheme of the then EXIM policy and under Target Plus Scheme of Foreign Trade Policy.
• Public Notice No.94(RE-2007)/2004-2009 dt. 1st Jan 2008 : Amendments in Foreign Trade Policy Hand Book of Procedures (Vol-I), adding the following at the end of paragraph 5.7.2 : "Export of SEZ units/supplies to Developers/Co-developers irrespective of currency of realization, would also be counted for discharge of Export Obligation".
• Customs Circular No.45/2007 dt. 19th Dec/07 : Regarding Scope and Coverage of Goods to be imported under Target Plus Scheme (TPS).

• Notification No.45/2007-Service Tax dt 28th Dec/07 : Sixth Amendments in the Service Tax Rules, 1994.
• Notification No.42/2007-Central Excise (N.T.) dt. 27th ec/07 : Making the Central Excise (Compounding of Offences) Rules, 2005 more stringent.

• Customs Circular No.42/2007 dt. 30th Nov/07 – Regarding grant of exemption from furnishing Bank Guarantee by Central/State Government Undertakings for inter-city transfer of goods from one bonded warehouse to another.
• Circular No.860/18/2007-CX dt. 22nd Nov/07 – Making mandatory self-sealing of containers of export goods.

• Central Excise Circular No.860/18/2007-CX dt. 22nd Nov/07 : Regarding Self-sealing of exports goods.

• Central Excise Notification No.39/2007 (N.T.) dt. 13th Nov/07: Amending the CENVAT Credit Rules, 2004, adding a provision after the second proviso, in rule 3, sub-rule (5).

• Custosm Circular No.41/2007 dt. 29th Oct/07 – Regarding instructions for implementation of Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007.
• Public Notice No.74(RE-2007)/2004-2009 dt. 24th Oct/07: Regarding Guidelines for conversion of DTA unit into EOU/EHTP/STP/BTP unit and attaching Appendix 14-1-O, as Annexure to the Public Notice.

• Customs Circulars No.37 & 38/2007 dt. 9th Oct/07 : Customs Valuation (Determination of value of export goods) Rules, 2007 – Instructions Reg.
• Customs Circular No.39/2007 dt. 9th Oct/07 – Regarding exemption from filing supplementary claim in respect of increase in drawback rates with retrospective effect from 1.4.2007.
• Notification No.36(RE 2007)/2004-2009 dt. 8th Oct, 2007 : Amending paragraph 5.4(i) related to Export obligation under EPCG scheme by the following clause : “Export obligation shall be fulfilled by export of goods manufactured/services rendered by the applicant. Export obligation under the scheme shall be, over and above, the average level of exports achieved by him in the preceding three licensing years for the same and similar products within the overall export obligation period, including extended period, if any, except for categories mentioned in paragraph 5.7.6 of Handbook of Procedures, Vol.I. Such average would be the arithmetic mean of export performance in last three years for the same and similar products.

• Public Notice No.56(RE-2007)/2004-2009 dt. 1st Oct/07 : Amendments in Handbook of Procedures, V.I, paragraph 4.46 related to “Time period” for filing DEPB application.
• Public Notice No.54(RE-2007)/2004-2009 dt. 1st Oct/07 : Amendments in Handbook of Procedures, V.I, paragraphs 5.3.1, 5.3.2, 5.8 (related to ‘Fulfillment of Export Obligation’), 5.8.1, 5.8.2, and 5.8.3
• Policy Circular No.13(RE-07/2004-2009 dt. 1st Oct/07 : Clarification on the availability of benefit of DFIA scheme for physical exports to RPA countries, as per paragraph 4.1.6 of FTP.
• Policy Circular No.12(RE-07/2004-2009 dt. 1st Oct/07 : Clarification on the facility of Export Promotion Schemes administered by DGFT.

• Public Notice No.53(RE-2007)/2004-2009 dt. 27th Sept/07 : Deleting Condition for fulfillment of Export Obligation under EPCG Scheme (Paragraphs 5.7.8 and 5.8.6 in the Handbook of Procedures, Vol.1)

Companies planning fab plants (factories to produce raw silicon wafers with chips) for the electronics industry and solar photovoltaics (for solar energy generation) projects can now formally apply for concessions under the policy. As per the guidelines now issued, companies like SemIndia, HSMC, Signet Solar and Moser Baer etc. are going ahead with their investment plans already announced. According to IT advisory firm Gartner, the total electronic equipment production in India will reach $32 billion in 2011, compared with $14 billion in 2006, a CAGR of 18%. Semiconductor consumption in India will more than double from $2.8 billion in 2006 to $7.2 billion in 2011.

• Notification No.102/2007-Customs dt. 14th Sept/07 : Regarding exemption of additional customs duty
• Notification No.35/2007-Central Excise (N.T.) dt. 14th Sept/07 &
• Notification No.36/2007-Central Excise (N.T.) dt. 14th Sept/07 : regarding Amendments in Cenvat Credit Rules 2004
• Notification No.95/2007-Customs (N.T.) dt 13th Sept, 2007 : Regarding the Customs Valuation (Determination of Value of Export Goods) Rules, 2007.
• Notification No.94/2007-Customs (N.T.) dt 13th Sept, 2007 : Regarding the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
• Customs Circular No.32/2007 dt. 10th Sept/07 - Classification of Digital Still Image Video Camera
• Customs Circular No.33/2007 dt. 10th Sept/07 - Classification of Digital LCD/Flat Panel Monitor
• Notification No.27(RE-2007)/2004-2009 dt. 7th Sept/07 - Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) export of which is regulated

• Customs Circular No.31/2007 dt. 29th Aug/07 : Issues concerning Import & Export through Courier Mode
• Customs Circular No.26/2007 dt. 20th July/07 : Waiver of interest on goods cleared from a warehouse when duty is paid by way of debite in DEPB licenses.

• Licensee to be allowed to acquire 20% stake in rival operator within the same circle
• Removal of the current 15 MHz spectrum cap on the merged entity
• Number of telecom service providers in a circle left uncapped
• Clearance upto 10% acquisition automatic, beyond that on case-by-case basis
• Combined market share of merged entity to be 40%, down from present 67%
• Operators to pay one time charge for additional spectrum beyond 10 MHz

• Policy Circular No.04 (RE-2007)/2004-09 dt. 16th Aug/07 : Transitional Arrangements under Para 1.5 of Foreign Trade Policy, 2004-2009.

• Notification No.93/2007-Customs dated 8th August, 2007 : Exempting ICs from 4% additional duty.

• Central Excise Notification No.31/2007 (N.T.) dt. 2nd August, 2007 : Notifying conditions, ssafeguards and procedures for supply of items like tags, labels, printed tags, stickers, belts, buttons and hangers (referred as "specified goods") produced or manufactured in EOUs and cleared without payment of duty to a unit in DTA for use in the manufacture or processing of goods which are exported in terms of Para 6.9 (h) of FTP 2004-09.

• Customs Notification No.90/2007 dt. 26th July, 2007 : Exempting goods covered under Chapters 84, 85 etc. for the manufacture of All semiconductors, LCDs,OLED,PDP, storage devices, solar cells, photovoltatics etc. from the whole of additional duty of customs
• Notification No.15/(RE-2007)/2004-2009 dt. 20th July, 2007 - Amendments in FTP 2004-09, para 6.2(h), regarding procurement and export of spares/components etc.
• Public Notice No.23(RE-2007)/2004-09 dt. 20th July, 2007 : Amendments in Appendix 14-1-H of the Handbook of Procedures (Vol.1) regarding DTA sales
• Central Excise Notification No.31/2007 dt. 19th July, 2007 : Amendment in Notification No.6/2006-Central Excise dt. 1st March, 2006, adding 'Recorded smart cards' and Recorded proximity cards and tags' to the entries after Sl.No.22.

• Notification No.68/2006-Cus (NT) dated 16.7.2007 and Customs Circular No.25/2007 dated 16th July, 2007…..Regarding All Industry Rates of Duty Drawback, 2007-08
• Public Notice No.17(RE-2007)/2004-2009 dated 12.7.2007 and Public Notice No.18 dt. 13.7.2007 - New DEPB Rates effective from 1st April, 2007.
• Customs Circular No.24/2007 dt. 2.7.2007 - Delay in payment of customs duty refunds.

• Customs Notification No.78/2007 dt. 29th June, 2007 : Regarding anti dumping duty on import of Compact Discs-Recordable (CD-Rs) from the People's Republic of China, Hong Kong, Singapore and Chinese Taipei.

• Public Notice No.10(RE:2007)/2004-2009 dt. 22nd June, 2007 : Amendments in Sl.No.B-20, in respect of export item (Colour TV) and various import items (like resistors, transistors, diodes, capacitors, ferrites, PCBs, picture tubes, ICs etc).
• Public Notice No.11(RE-2007)2004-09 dt. 22nd June, 2007 : In Appendix 4-C, under the list of agencies authorized to issue Certificate of Origin-non-preferential, under Delhi, Sl.No.2, stands amended to - APEX CHAMBER OF COMMERCE & INDUSTRY OF NCT DELHI, A-8 Naraina Industrial Area, Phase-II, New Delhi 110 028 (Tel - 011 25893646, Telefax - 011-41418461, E-mail - delhiichamber@touchtelindia.net, website - www.dcci.in.

• Notification No.6(RE-2007)/20042009 dt. 23rd May/07 : Amending FTP 2004-09, to enable shipments from non-EDI enabled ports to be also eligible for benefits under Focus Product Scheme and Focus Market Scheme.
• Customs Notification No.72/2007 dt. 21st May/07 : Amendments in various Customs Notification Nos.92/2004, 97/2004, 41/2005, 90/2006 and 91/2006.

• Customs Circular No.21/2007 dt. 8th May/07 : Clarification regarding scope and coverage of goods imported under Target Plus Scheme.

• Customs Notification No.47/2007-NT dated 8th May, 2007 : Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007.
• Customs Circular No.18/2007 dt. 24th April/07 : Grant of waiver of the requirement of Bank Guarantee in respect of imported goods to be warehoused in Public or Private Bonded Warehouses.

• Central Excise Circular No.851/9/2007-CX dt. 3rd May/07 : Procedure governing the movement of indigenous goods from a factory of manufacture or warehouse to a unit set up/STP under EOU/EHTP/BTP scheme.
• Customs Circular No.19/2007 dt. 3rd May/07 : Warehousing of goods imported and/or procedured indigenously by EOU/EHTP/STP/BTP units.

• Repo, Reverse Repo, Bank Rate, CRR unchanged
• Risk weight on home loans upto Rs.20 lakhs reduced to 50% from 75%.
• NRI deposits interest cap lowered 50 bps
• Firms' overseas investment limit enhanced to 300% of net worth from 200%
• Listed Indian firms' portfolio investment limit in listed overseas firms raised to 35% of net worth from 25%.
• Banks allowed to lend to overseas step-down subsidiaries of Indian companies
• Mutual Funds' overseas investment limit raised to $4 billion from $3 billion
• Individual overseas investment limit doubled to $100,000

• Notification No.01/2007 dt. 19th April, 2007 : Notifying the Foreign Trade Policy 2004-2009 incorporating the Annual Supplement as updated on 19th April, 2007. The policy shall come into effect w.e.f. 1st April, 2007.
• Customs Circular No.17/2007 dt. 19th April, 2007 : Clarification in respect of classification of higher technology featured mobile/cellular handset or telephones.
• Customs Circular No.16/2007 dt. 18th April, 2007 : Regarding Inter Unit Transfer of Capital Goods from one EOU/STP/EHTP unit to another EOU/STP/EHTP unit
• Notification No.57(RE-2006)/2004-2009 dt. 13th April, 2007 : Amending para (vi) of "Nature of Restriction" against Sl.No.147 of Chappter 44 of ITC of Foreign Trade Policy 2004-2009, to effect the exports within a period of 12 months from the date of import.

• Service Tax exemption to exporters
• Export duty benefit schemes extended to SEZs
• Focus Products, Focus Market Schemes expanded
• DEPB Scheme extended to 31st March, 2008
• New export promotion scheme launched for high-tech products
• Export obligations under EPCG scheme eased

• Notification No.3(1)/2007-IPHW (SIPS) dated 21st March, 2007 issued by DIT : Notifying Special Incentive Package Scheme to encourage investments for setting up Semiconductor Fabrication.
• CBEC Circular No.15/2007-Customs dated 20-3-2007 : Covering all large tax payer EOUs (Export Oriented Units) under the control of Large Taxpayer Units (LTUs), which have been created to service large taxpayers paying excise duty and corportate tax/income tax/service tax etc. under a single window.