BMC Advisors. MCA Update SEBI Update RBI Update. Income Tax Update IPR Update Service Tax. Excise Update Custom Update GST Update.

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1 Issue: September 2018 Vol. 9 No. 1 BMC Advisors Corporate Laws and Intellectual Property Rights Consultants MCA Update SEBI Update RBI Update Income Tax Update IPR Update Service Tax Excise Update Custom Update GST Update DGFT Update 1

2 WEEKLY UPDATES AUGUST 27 th, SEPTEMBER 2 nd,

3 INDEX RBI UPDATE Rupee Drawing Arrangement Remittance to the Chief Minister s Distress Relief Fund- Kerala Exim Bank's Government of India supported Line of Credit of USD 500 million to Ecowas Bank for Investment and Development Exim Bank's Government of India supported Line of Credit of USD 90.3 million to Banco Exterior De Cuba Exim Bank's Government of India supported Line of Credit of USD 70 million to Banco Exterior De Cuba INCOME TAX UPDATE Notification u/s 35(1)(ii) in the case of M/s CBCI Society for Medical Education, Bangalore CUSTOM UPDATE Sharing of cases booked by Customs field formations under the Information Sharing Protocol with CEIB Forwarding of samples for testing to the Outside Laboratories Pilot Implementation of Paperless processing under SWIFT-uploading of supporting documents (esanchi) in Exports Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver. DGFT UPDATE Policy Circular 5(2013)/ dated regarding norms for Spices under Advance Authorization- validity thereof Amendment in Para 3.24 (j) of Chapter-3 of FTP Export Policy of Bio-Fuels Corrigendum to Notification No.25/ dated Withdrawal of Notification No.15 dated regarding amendment in import policy of Peas under Chapter 7 of the ITC (HS) 2017, Schedule -I (Import Policy) Amendment in import policy of Peas under Chapter 7 of the ITC (HS) 2017, Schedule -I (Import Policy). 3

4 RBI UPDATES RBI/ /41 A. P. (DIR Series) Circular No. 5 To, All Authorised Dealer Category - I Banks August 29, 2018 Madam / Sir, Rupee Drawing Arrangement Remittance to the Chief Minister s Distress Relief Fund- Kerala Attention of Authorized Dealer Category I (AD Cat I) banks is invited to para 4 of the Master Direction No.2/ dated January 1, 2016 on Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses, as amended from time to time, regarding permitted transactions under the Rupee Drawing Arrangements. 2. In the wake of the floods in the State of Kerala and the representations received from the AD Cat - I banks, seeking permission to receive funds in the Chief Minister s Distress Relief Fund - Kerala through the exchange houses, it has been decided in consultation with the Government of India, to permit receipt of remittances to the Chief Minister s Distress Relief Fund - Kerala through exchange houses, subject to the condition that the remittances are directly credited to the fund by the banks and the banks maintain full details of the remitters. 3. Master Direction No. 2/ dated January 1, 2016 on Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses is being updated to reflect the above changes. 4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Ajay Kumar Misra) Chief General Manager-in-Charge 4

5 RBI/ /42 A.P. (DIR Series) Circular No.6 All Category I Authorised Dealer Banks August 30, 2018 Madam/Sir Exim Bank's Government of India supported Line of Credit of USD 500 million to Ecowas Bank for Investment and Development Export-Import Bank of India (Exim Bank) has entered into an agreement dated March 25, 2018 with Ecowas Bank for Investment and Development for making available to the latter, a Government of India supported Line of Credit (LoC) of USD 500 million (USD Five hundred million only) for financing various development projects in the 15 member countries of Ecowas Bank for Investment and Development in West African region. Under the arrangement, financing of export of eligible goods and services from India, as defined under the agreement, would be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement. Out of the total credit by Exim Bank under this agreement, goods and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India. 2. The Agreement under the LoC is effective from July 27, 2018 and the terminal utilization period is 60 months after the scheduled completion date of each project. 3. Shipments under the LoC shall be declared in Export Declaration Form as per instructions issued by the Reserve Bank from time to time. 4. No agency commission is payable for export under the above LoC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- I (AD Category- I) banks may allow such remittance after realization of full eligible value of export subject to compliance with the extant instructions for payment of agency commission. 5. AD Category I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from the Exim Bank s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai or from their website 6. The directions contained in this circular have been issued under section 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law. Yours faithfully (R K Moolchandani) Chief General Manager 5

6 RBI// /43 A.P. (DIR Series) Circular No.7 All Category I Authorised Dealer Banks August 30, 2018 Madam/Sir Exim Bank's Government of India supported Line of Credit of USD 90.3 million to Banco Exterior De Cuba Export-Import Bank of India (Exim Bank) has entered into an agreement dated April 11, 2018 with Banco Exterior De Cuba (nominated agency of the Government of Cuba) for making available to the latter, a Government of India supported Line of Credit (LoC) of USD 90.3 million (USD Ninety million three hundred thousand only) for the purpose of financing setting up of a 50 MW cogeneration power plant in the Republic of Cuba. Under the arrangement, financing of export of eligible goods and services from India, as defined under the agreement, would be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement. Out of the total credit by Exim Bank under this agreement, goods and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India. 2. The Agreement under the LoC is effective from August 8, 2018 and the terminal utilization period is 60 months from the scheduled completion date of the respective contract. 3. Shipments under the LoC shall be declared in Export Declaration Form as per instructions issued by the Reserve Bank from time to time. 4. No agency commission is payable for export under the above LoC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- I (AD Category- I) banks may allow such remittance after realization of full eligible value of export subject to compliance with the extant instructions for payment of agency commission. 5. AD Category I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from the Exim Bank s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai or from their website 6. The directions contained in this circular have been issued under section 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law. Yours faithfully (R K Moolchandani) Chief General Manager 6

7 RBI/ /44 A.P. (DIR Series) Circular No.8 All Category I Authorised Dealer Banks August 30, 2018 Madam/Sir Exim Bank's Government of India supported Line of Credit of USD 70 million tobanco Exterior De Cuba Export-Import Bank of India (Exim Bank) has entered into an agreement dated April 11, 2018 with Banco Exterior De Cuba (nominated agency of the Government of Cuba) for making available to the latter, a Government of India supported Line of Credit (LoC) of USD 70 million (USD Seventy million only) for the purpose of financing setting up of a 51 MW wind energy farm in the Republic of Cuba. Under the arrangement, financing of export of eligible goods and services from India, as defined under the agreement, would be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement. Out of the total credit by Exim Bank under this agreement, goods and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India. 2. The Agreement under the LoC is effective from August 8, 2018 and the terminal utilization period is 60 months from the scheduled completion date of the respective contract. 3. Shipments under the LoC shall be declared in Export Declaration Form as per instructions issued by the Reserve Bank from time to time. 4. No agency commission is payable for export under the above LoC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- I (AD Category- I) banks may allow such remittance after realization of full eligible value of export subject to compliance with the extant instructions for payment of agency commission. 5. AD Category I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from the Exim Bank s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai or from their website 6. The directions contained in this circular have been issued under section 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law. Yours faithfully (R K Moolchandani) Chief General Manager 7

8 INCOME TAX UPDATES (TO BE PUBLISHED IN PART II, SUB-SECTION (ii) OF SECTION 3 OF THE GAZETTE OF INDIA) Government of India Ministry of Finance (Department of Revenue) (Central Board of Direct Taxes) Notification New Delhi, the 27 th August, 2018 S.O. It is hereby notified for general information that the organization M/s C.B.C.I. Society for Medical Education, Bengaluru (PAN:- AAATC0773E) has been approved by the Central Government for the purpose of clause (ii) /clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5E of the Income-tax Rules, 1962 (said Rules), from Assessment year onwards in the category of University, College or other Institution', engaged in research activities, subject to the following conditions, namely:- (i) (ii) (iii) (iv) (v) (vi) The sums paid to the approved organization shall be used to undertake scientific research/social science research / statistical research; The approved organization shall carry out scientific/social science/statistical research through its faculty members or enrolled students; The approved organization shall maintain separate books of accounts in respect of the sums received by it for scientific/ social science / statistical research, reflect therein the amounts used for carrying out research, get such books audited by an accountant as defined in the explanation to sub-section (2) of section 288 of the said Act and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Incometax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (I) of section 139 of the said Act; The approved organization shall maintain a separate statement of donations received and amounts applied for scientific/ social science/ statistical research, such donations shall be used exclusively used for core research activity and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to above. Donations being received by the organization under clause (ii)/ (iii) of sub-section (1) of section 35 of the Act, shall be used exclusively for core scientific/ social science/ statistical research only and not for hospital activities, activities related to treatment of patients, general educational activities (other than research) or any other object of the organization. The approved organization shall, by the due date of furnishing the return of income under subsection (I) of section 139, furnish a statement to the Commissioner of Income-tax or Director of Income-tax containing- a detailed note on the research work undertaken by it during the previous year; a summary of research articles published in national or international journals during the year; any patent or other similar rights applied for or registered during the year; programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme. 2. The Central Government shall withdraw the approval if the approved organization:- a) fails to maintain separate books of accounts referred to in sub-paragraph (iii) of paragraph 1; or 8

9 b) fails to furnish its audit report referred to in sub-paragraph (iii) of paragraph 1; or c) fails to furnish it's statement of the donations received and sums applied for scientific/social science/statistical research referred to in sub-paragraph (iv) of paragraph 1; or d) ceases to carryon its research activities or its research activities are not found to be genuine; or e) ceases to confirm to and comply with the provisions of clause (ii)/clause(iii) of sub-section (1) of section 35 of the said Act read with rules 5C and 5E of the said Rules. (Rajarajeshwari R.) Under Secretary to Government of India Notification No. 40/2018 (F.No.203/ /IT A-II) To The Manager, Govt. of India Press, Mayapuri, New Delhi Copy forwarded to: 1. The applicant organization, M/s C.B.C.J. Society for Medical Education. Bengaluru 2. CCIT (E), New Delhi 3. CIT (E),Bengaluru 4. Web Manager, New Delhi, for placing on the website incomctaxindia.gov.in 5. ITCC, CBDT (4 copies) 6. Concerned file 7. Guard file (Rajarajeshwari R.) Under Secretary to Government of India 9

10 CUSTOM UPDATES Instruction No. 13 / 2018 Customs F.No. 394/35/2014-Cus (AS) Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes & Customs (Anti-Smuggling Unit) *** New Delhi, dated 29 th August, 2018 To All Principal Chief Commissioners/Chief Commissioners of Customs, All Principal Chief Commissioners/Chief Commissioners of Customs (Preventive), All Principal Chief Commissioners/Chief Commissioners of Customs & GST Madam / Sir, Subject: Sharing of cases booked by Customs field formations under the Information Sharing Protocol with CEIB regarding. During the 'Working Group on Intelligence Apparatus' meeting held on , it was noted by the Finance Secretary that information sharing has become sporadic and a matter of pick and choose and that it is absolutely essential that intelligence sharing should be a continuous process and not something that is negotiable/discretionary. In this background, Finance Secretary stressed that all Investigating Agencies should regularly share information with Central Economic Intelligence Bureau (CEIB). 2. To implement the said directions, an Information Sharing Protocol (ISP) (copy enclosed) was finalised which all agencies/formations have to put in place by way of explicit written order for compliance by all the designated members of respective Regional Economic Intelligence Councils (REICs). Further, other actionable intelligence/information not forming part of the ISP should be shared with the concerned agencies/departments on real-time basis. 3. Annexed to the Information Sharing Protocol is a time schedule of sharing of information at various stages. The entire process of investigation has been divided into four stages of (i) seizure/detection, (ii) show cause notice, (iii) order-in-original, (iv) prosecution, and time lines for sharing of information with CEIB has been fixed for the stages. 4. In view of the above, it is requested that all concerned formations under your jurisdiction may be directed to share the desired information with CEIB in terms of the enclosed Information Sharing Protocol and the stage-wise timelines annexed with it (sl. no. 15 pertains to CBIC). Encl: As above Yours faithfully, (Rohit Anand ) Under Secretary to the Government of India 10

11 Information Sharing Protocol 1. Nodal Officer responsible for ensuring that reporting is done regularly, to be nominated by the Head of the Agency/Department. Name, designation & contact numbers to be provided. 2. All cases where offence is detected, irrespective of the nature of offence, which involves contravention of any economic statute, are to be shared within a week of such detection/adjudication (unless specifically mentioned in the attached annexure). It may be noted that even if any order by any agency is placed in the public domain/website, a copy still needs to be sent to CEIB. 3. In cases where inter agency ramifications noticed during course of investigation, that agency should be informed directly to save time (alongwith all supporting facts & figures) but invariably, a copy be enclosed to CEIB. 4. For the time being, sharing may be done through (Secure Information Exchange Meeting) SIEN or hard copy till the necessary secure message sharing platforms are put in place by CEIB. 5. So far as context of information is concerned, the primary details would be identity (such as PAN/PP No., IEC, GSTIN, CIN, DIN etc.) name, address of the entity, relevant statute, date of action, details of seizure and the modus operandi adopted to violate the statute. Care must be taken to see that the modus operandi adopted must be spelt out in great clarity, so that any inter-agency ramification is brought on record. 1 DRI Seizure / Detection intimation Report (DRI-II) (within 15 days of booking and within 60 days in cases where sharing may affect investigation) 2 DGGS TI Stage I Stage II Stage III Stage IV Show Cause Notice Offence Report / Incident Report / Non-seizure Report (AE-II) 3 CBDT Preliminary Search Reports/ Summary of Survey reports of Inv. Wing (within a week of receipt by CBDT) 4 SFIO Receipt of order of investigation 5 CBI Case Registration / FIR/Search / Seizure/ Arrest relating to economic offences 6 ED PMLA case registration/search action under FEMA (within a month) Show Cause Notice Summary of Appraisal Report (within a week of receipt by CBDT) Receipt of sanction for prosecution from MCA Chargesheet Attachment / Seizure (within a month of search) Order-in- Original (within 15 days of receipt in DRI) Order-in- Original Summary of Assessment Order(within a week of receipt by CBDT) After passing of judgement by the court/tribunal Adjudication Complaint (within a month of action) Prosecution / COFEPOSA details(within 15 days of receipt of information regarding filing of prosecution, complaint and serving of COFEPOSA detention order in DRI ) Prosecution details Summary of Appellate orders (within a week of receipt by CBDT) / Details of Prosecution filed/ Conviction/acquitta l (within a week of receipt by CBDT) 11

12 Registration of complaints (FEMA) 7 NIA Case Registration / FIR/Search / Seizure/ Arrest relating to economic offences SCN (within a month of issue) Chargesheet 8 NCB Search / Seizure Reports Investigatio n Report 9 EOW Case Registration / Chargesheet (State FIR/Search / Seizure/ Arrest Police relating to economic offences 10 RBI cases handled by QRT having fraudalent overtones. 11 Banks Complaints filed with CBI/ED/DRI in respect of frauds detected/npas and related information, such as Directors, assets etc. 12 FIU- CTR s/strs of IND entities/connected entities. (within a day or two of requisition by CEIB) 13 SEBI Orders passed by Chairman/Members/Settle ment orders/orders on insider trading/any other order having implication of economic offence 14 DGFT All penalty/recovery orders passed by subordinate offices and Development Commissioners of SEZs 15 CBIC Seizure / Detection intimation Report (within 15 days of booking and within 60 days in cases where sharing may affect investigation) Details of arrest made/assets confiscated Prosecution cases/ Conviction cases both in CIS and non CIS Category. Show Cause Notice Adjudication (within a month of action) Adjudication Adjudication Adjudication Launch Prosecution of Adjudication of Court/ Court orders Order-in- Original (within 15 days of receipt ) Conviction/ Aquittal etc. Prosecution / COFEPOSA details(within 15 days of receipt of information regarding filing of prosecution, complaint and serving of COFEPOSA detention order) 12

13 F. No. 401/243/2016-Cus-III Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes & Customs Circular No. 28 /2018-Customs North Block, New Delhi, 30 th August 2018 To All Pr. Chief Commissioners/Chief Commissioners of Customs/Customs (Preventive) All Pr. Chief Commissioners /Chief Commissioners of Customs and Central Taxes All Pr. Commissioners/Commissioners of Customs/Customs (Preventive) All Pr. Commissioners/Commissioners of Customs and Central Taxes Madam / Sir, Subject: Forwarding of samples for testing to the Outside Laboratories- reg. Please refer Board Circular nos. 43/2017- Customs dated and 11/2018- Customs dated on the subject above. 2. It is clarified that in the aforementioned Circulars, it was very categorically indicated that up-gradation of the Revenue Laboratories is an on-going process. Therefore laboratories earlier not equipped with testing facility for a specific item have since acquired the testing facilities consequent to up-gradation. 3. Field formations may therefore first ensure with their respective laboratories that the testing facilities for any particular items listed in the said Circulars are not available with them before forwarding such samples to outside Laboratory(s) listed therein. 4. In case the jurisdictional laboratory does not have testing facility for a given sample, it would be open to the field formations to send such samples to one of the other revenue laboratories which have the facility to test the given sample, instead of availing services of an outside Government laboratory. CRCL should also continuously update the list of testing facilities available on its webpage or on the web link of each laboratory so that there are no delays in testing merely on account of ascertaining as to which of the labs has the relevant testing facility. 5. Principal Commissioners/ Commissioners of Customs are requested to issue suitable Public notice to bring the same to notice of all concerned. Yours faithfully, (B. Konthoujam) Under Secretary 13

14 F.No. 450/148/2015-Cus-IV Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes and Customs) Circular No 29/2018-Customs To Room No. 229 A, North Block, New Delhi Dated: 30 th August, 2018 Chief Commissioners of Customs, New Delhi Chief Commissioners of Customs, Chennai Sir, Subject: Pilot Implementation of Paperless Processing under SWIFT-Uploading of Supporting Documents (esanchit) in Exports reg. Successful implementation of Paperless Processing/eSANCHIT under Single Window Interface for Facilitation of Trade in case of Imports has been acclaimed by all stakeholders. Now with the objective of reducing physical interface between Customs/regulatory agencies & the trade and to increase the speed of clearance in Exports, it is proposed to introduce a facility to upload digitally signed supporting documents on a pilot basis at Air Cargo complex, New Delhi and Chennai Customs House. The pilot will cover all types of exports under ICES. After the completion of the pilot, the facility will be extended to all ICES locations. On a voluntary basis, members of the trade may use this facility to upload the supporting documents concerning Shipping Bills that may be filed on or after After 15 days of the launch of the facility, a review will be carried out, and thereafter, it will be introduced as a mandatory requirement. For this pilot, the following procedure will apply: Uploading supporting documents 2. The procedure for esanchit on the export side is similar to the one prescribed for esanchit in imports vide Circular No. 40/2017 dated Briefly, salient features are described as below: For uploading supporting documents on ICEGATE, the authorized persons must Open ICEGATE URL hugs:// click on Login/Signup button for login into ICEGATE by using his/her access credentials and then click on esanchit link provided in left vertical menu to redirect on esanchit. The step-by-step procedure for upload of supporting documents is also provided on the ICEGATE website. While preparing a job for submission on ICEGATE in their respective Remote EDI Systems (RES), the authorized persons must ensure that they have uploaded all the necessary supporting documents. A facility has also been provided on ICEGATE to the authorized persons to access and view the documents uploaded by them In case the authorized person seeks to provide a document after the generation of the Shipping Bill number, he/she may first upload the document on ICEGATE, obtain a unique ID Image Reference number (IRN) for the document and link that document with the corresponding Shipping Bill by submitting an amendment at the Service Centre. This procedure will also apply when the authorized person submits a document in response to a query raised by Customs for a Shipping Bill. 14

15 Assessment & Document Verification 2.3. Once a Shipping Bill has been filed, Customs officers will be able to access the uploaded electronic versions of supporting documents while viewing or assessing the Shipping Bill on ICES. During assessment, ICES provides for a query to be raised in order to call for additional documents or information. In response to a query, supporting documents can be uploaded online by following the procedure described in para 2.2 above. All documents required for the purposes of assessment would be viewed online. In due course, the facility to view supporting documents will also be extended to officers of the Participating Government Agencies (PGAs). Goods Registration, Examination & Let Export Order (LEO) 2.4. After filing of the Shipping Bill, the authorized person (e.g. Exporter/Customs Broker) may with his self assessed copy of the Shipping Bill, approach the designated place for goods registration, document verification and LEO. In case goods are to be examined, the officer examining goods may record the results of inspection/examination online on ICES. Other features to be Pilot-tested 4. In consultation with the stakeholders, in the course of the pilot, the following features will be taken-up for pilot-testing: (a) Upload of supporting documents for Shipping Bills which are filed through the Service Centers. (b) Presently, electronic copies of Let Export Orders and assessed copies of Shipping Bills are delivered online to the Custodians and authorized persons. In the course of the pilot, digital signatures will be applied on these messages and not copies of Shipping Bills. 5. The Shipping Bill (Electronic integrated Declaration) Regulation, 2011, provide for the authorized person to submit digitally signed electronic integrated declarations (Shipping Bills) and supporting documents and dispenses with the need for trade to submit the corresponding hardcopies. The Regulations also provide that the authorized person shall retain, for a period of 5 years from the date of acceptance of the Shipping Bill, all supporting documents in original, which were used or relied upon by him in submitting the electronic integrated declaration, and shall produce them before Customs or other Government agencies in connection with any action or proceedings under the Customs Act 1962 or any other law for the time being in force. 6. Chief Commissioners of Customs Delhi and Chennai are requested to issue public notices. To facilitate smooth roll out of pilot, feedback and queries may be addressed by to babulalmeena.irs@gov.in and nsm.ices@icegate.gov.in. References in hardcopy may be sent to Commissioner (Single Window), HUDCO Vishala Building, B Wing, Bhikaji Cama Place, R.K. Puram, New Delhi Yours sincerely, (Maninder Kumar) OSD (Cus IV) 15

16 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION-3, SUB- SECTION (ii)] Government of India Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes and Customs) Notification No. 76/2018-CUSTOMS (N.T.) New Delhi, 31st August, Bhadrapada, 1940 (SAKA) S.O. (E). In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001, namely:- In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted, namely: - Sl. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value (US $Per Metric Tonne) (1) (2) (3) (4) Crude Palm Oil RBD Palm Oil Others Palm Oil Crude Palmolein RBD Palmolein Others Palmolein Crude Soya bean Oil Brass Scrap (all grades) Poppy seeds 2258 TABLE-2 Sl. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value (US $) (1) (2) (3) (4) 1 71 or 98 Gold, in any form, in respect 385 per 10 grams of which the benefit of entries at serial number 356 and 358 of the Notification No. 50/2017-Customs dated is availed 2 71 or 98 Silver, in any form, in respect of which the benefit of entries at serial number 357 and 359 of the Notification No. 50/2017-Customs dated is availed 473 per kilogram 16

17 TABLE-3 Sl. No. Chapter/ heading/ Description of goods Tariff value sub-heading/tariff item (US $ Per Metric Tonne) (1) (2) (3) (4) Areca nuts 3947 [F. No. 467/01/2018 -Cus-V] (B. Konthoujam) Under Secretary to the Govt. of India Note: - The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001 Customs (N.T.), dated the 3rd August, 2001, vide number S. O. 748 (E), dated the 3rd August, 2001 and was last amended vide Notification No. 71/2018-Customs (N.T.), dated the 14th August, 2018, e-published in the Gazette of India, Extraordinary, Part-II, Section-3, Subsection (ii), vide number S. O. 3976(E), dated 14th August,

18 DGFT UPDATES To, Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade Udyog Bhawan, New Delhi Policy Circular No. 12, Dated: 28 th August, 2018 All Regional Authorities (RAs) of DGFT Spices Board All Commissioners of Customs Members of Trade and Industry Subject: Policy Circular 5(2013)/ dated regarding norms for Spices under Advance Authorization- validity thereof. As per Policy Circular 5(2013)/ dated , ad-hoc norms for spices under Para 4.07 were being fixed on the basis of Sample Analysis Report (SAR) furnished by the Spices Board, Cochin, from the samples drawn by the Customs. The said circular provided that Regional Authorities (RAs) concerned would redeem the Advance Authorisations (whether issued under Para 4.7 of HBP or otherwise) based on the SARs furnished by Spices Board, Cochin. The Policy Circular was to be applicable in respect of all the pending cases before the Norms Committee as well as in respect of future Advance Authorizations. Regional Authorities (RAs) were to furnish a consolidated monthly report of such redemptions to the Norms Committee-IV at DGFT(HQ) for information and record. 4. Norms Committee IV has been receiving requests for ad-hoc fixation of Norms falling under spices even now. It is, therefore, reiterated that cases falling under the category of Policy Circular 5 (2013)/ dated may be redeemed on the SARs furnished by Spices Board, Cochin as has been the practice in the past. RAs need not send such applications (where spices are inputs) to NC in the Hqrs for fixation of ad-hoc norms. While redeeming the cases, RAs shall ensure that samples were drawn for the entire export quantity. 5. This issues with the approval of Director General of Foreign Trade. (Kumar Rahul) Deputy Director General of Foreign Trade kumar.rahul@nic.in 18

19 To be published in the Gazette of India Extraordinary Part II Section 3, Sub Section (II) Government of India Ministry of Commerce & Industry Department of Commerce Udyog Bhawan, New Delhi Notification No: 28 / New Delhi, the 27 August, 2018 Subject: Amendment in Para 3.24 (j) of Chapter-3 of FTP S.O.(E): In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy, , the Central Government hereby makes the following amendments in the Foreign Trade Policy with immediate effect: 2. Existing Para 3.24(j) of the FTP Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. For export of pharma products by pharmaceutical companies, the annual limit would be 2% of the average annual export realisation during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme. 3. Amended Para 3.24(j) of the FTP Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit as below: a. Annual limit of 2% of average annual export realization during preceding three licensing years for all exporters (excluding the exporters of following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector). b. Annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. (for exporters of the following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector). c. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. The free of cost supplies made under provisions of Para 3.240) shall not be entitled to Duty Drawback or' any other export incentive under any export promotion scheme. Effect of this Notification: The limit of Rupees One Crore per year for exports on free of cost exports basis for export promotion for Status Holders is removed and is made 2% of average annual export realization during preceding three licensing years with immediate effect. (Alok vardhan Chaturvedi) Director General of foreign Trade dgft@nic.in 19

20 To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub-Section (II) Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Notification No. 29 / New Delhi, Dated: 28 August, 2018 Subject: Export Policy of Bio-fuels. S.O. (E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, , as amended from time to time, the Central Government hereby amends the export policy of biofuels under Chapter 27 of ITC (HS), 2018, Schedule -2 (Export Policy). 2. New entries at Sl. No. 115A, 115B and 115C are inserted in Chapter 27 of Schedule 2 of ITC (HS) Classification of Export & Import Items as follows: S.No. Tariff Item HS Code Unit Item Description Present Policy Revised Policy Policy Condition 115A Kg/u Ethyl alcohol and other Free Restricted Export is permitted spirits, denatured, of any under license only strength. for non-fuel purposes 115B Kg/u Petroleum oils and oils Free Restricted Export is permitted obtained from bituminous under license only minerals (other than crude ) for non-fuel and preparations not purposes elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, containing biodiesel, other than waste oils. 115C Kg/u Biodiesel and mixtures Free Restricted Export is permitted thereof, not containing or under license only containing less than 70 % by for non-fuel weight of petroleum oils and purposes oils obtained from bituminous minerals. 3. Effect of this Notification: Export Policy of bio-fuels is revised from 'Free' to 'Restricted' as per the National Policy on Biofuels (Alok Vardhan Chaturvedi) Director General of Foreign Trade& Ex- officio Addl. Secretary to the Government of India dgft@nic.in 20

21 To be Published in the Gazette of India Extraordinary Part-II, Section - 3, Sub-Section (ii) Government of India Ministry of Commerce & Industry Department of Commerce Udyog Bhawan, New Delhi Notification No 30/ Dated the 28August, 2018 Subject: - Corrigendum to Notification No. 25/ dated 17th August, 2018 S.O. (E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, , as amended from time to time, the Central Government hereby notifies amendment to the Notification No.25/ dated 17th August, 2018 vide which import policy of Petcoke under HS codes , , and were 'Prohibited". 2. In partial modification of Notification No.25/ dated 17th August, 2018, since HS codes and are not Petcokes, these two codes (Petroleum bitumen) and (Other residues of petroleum oils or of oils obtained from bituminous minerals) are withdrawn from the ambit of the Notification No 25 dated 17th.August, 2018 and import policy of these items i.e. Petroleum bitumen (Exim Code ) and Other residues of petroleum oils or of oils obtained from bituminous minerals (Exim code ) is restored to 'Free'. 3. Effect of this Notification: Import policy of Petrole m bitumen under HS code and other residues of petroleum oils or of oils obtained from bituminous minerals under HS Code is 'Free'. (ALOK VARDHAN CHATURVEDI) Director General of Foreign Trade & Ex-Officio Additional secretary to Government of India dgft@nic.in 21

22 To be published in the Gazette of India Extraordinary Part-II, Section - 3, Sub-Section (ii) Government of India Ministry of Commerce & Industry Department of Commerce Udyog Bhawan, New Delhi Notification No 31/ Dated the 29 August, 2018 Subject: Withdrawal of Notification No.15 dated regarding amendment in import policy of Peas under Chapter 7 of the ITC (HS) 2017, Schedule -I (Import Policy). S.O. (E): In pursuance of the Order dated 28th June, 2018 of the Hon'ble High Court of Judicature at Madras in W.P. Nos to of 2018 and W.M.P Nos , 18917, 18919, 18920, 18922, 18923, and of 2018 and in compliance with the directions dated 24 th of August, 2018 in WP No & of 2018 filed by M/s AMRR Maharaja Dhall Mill the Notification No 15 dated extending the restriction on import of Peas classified under Exim Code (including Yellow peas, Green peas, Dun peas and Kaspa peas) till , is withdrawn. 2. Effect of this Notification: Notification No 15 dated extending the restriction on import of Peas classified under Exim Code till , is withdrawn (ALOK VARDHAN CHATURVEDI) Director General of Foreign Trade & Ex-Officio Additional Secretary to the Government of India dgft@nic.in 22

23 To be published in the Gazette of India Extraordinary Part-II, Section - 3, Sub-Section (ii) Government of India Ministry of Commerce & Industry Department of Commerce Udyog Bhawan, New Delhi Notification No. 32/ Dated the 30August, 2018 Subject: - Amendment in the import policy of Peas under Chapter 7 of the ITC (HS) 2017, Schedule -I (Import Policy). S.O. (E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, , as amended from time to time, the Central Government hereby, makes the following amendment in ITC (HS) 2017, Schedule 1 (Import Policy): Import of Peas classified under Exim Code (including Yellow peas, Green peas, Dun peas and Kaspa peas) is "Restricted" till Effect of this Notification: Import of Peas classified under Exim Code (including Yellow peas, Green peas, Dun peas and Kaspa peas) is "Restricted" till This issues with the approval of the Commerce and Industry Minister. (ALOK VARDHAN CHATURVEDI) Director General of Foreign Trade & Ex-Officio Additional Secretary to the Government of India dgft@nic.in 23

24 (Corporate Laws and Intellectual Property Rights Consultants) Delhi I Mumbai I Hyderabad I Kanpur Corporate Office: 63/12, First Floor, Main Rama Road, New Delhi Ph: /17, Mob: brijesh@bmcadvisors.in, brijesh@brijeshmathur.com Website: 24