Issue: March 2018 Vol. 3 No. 4 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
WEEKLY UPDATES MARCH 19 TH, 2018- MARCH 25 TH, 2018 2
INDEX MCA UPDATE Commencement Notification 4 The National Financial Reporting Authority (Manner of Appointment and other Terms and 5 Conditions of Service of Chairperson and Members) Rules, 2018 dated 21.03.2018 Companies (Incorporation) Second Amendment Rules, 2018 6 SEBI UPDATE Spread margin benefit in commodity futures contracts 7-8 Risk Management norms for commodity derivatives 9-10 Due diligence and reporting requirements under Foreign Account Tax Compliance Act 11-12 (FATCA) and Common Reporting Standards (CRS) Master Circular on Prevention of Unauthorised Trading by Stock Brokers 13-14 RBI UPDATE Reporting and Accounting of Central Government Transactions of March 2018 15-16 Implementation of UNSCR 2397 (2017), pertaining to Democratic People's Republic of Korea (DPRK) CUSTOM UPDATE Declaration of Vijayawada Airport as Customs Airport; amendment of Notification No. 18 61/94(NT)- CUSTOMS dt. 21st November, 1994 Amendments in the First Schedule to the Customs Tariff Act, 1975 19 Seeks to amend notification No. 27/2011-Customs, dated the 1st March, 2011, so as to reduce 20 export duty on raw sugar, white or refined sugar from 20% to Nil Seeks to amend notification No. 50/2017-Customs, dated 30.06.2017, so as to make 21 consequential amendment in wake of change made vide notification on No. 22/2018-Customs (N.T.) dated 20.03.2018 Seeks to further amend notification No. 50/2017-Customs so as to reduce BCD from 10% to 5% 22 on Opencell(15.6 and above) of LCD/LED TV panels Seeks to Amend notification No 52/2003- Customs dated 31.03.2003 for extending exemption from IGST and compensation cess to EOUs on imports till 01.10.2018 Refund of IGST on Export-Extension of date in SB005 alternate mechanism cases & clarifications in other cases- reg GST UPDATE Amending the CGST Rules, 2017(Third Amendment Rules, 2018) 25-26 Notifies the date from which E-Way Bill Rules shall come into force 27 Seeks to prescribe the due dates for filing FORM GSTR-3B for the months of April to June, 2018 28 Seeks to exempt payment of tax under section 9(4) of the CGST Act, 2017 till 30.06.2018 29 Seeks to exempt payment of tax under section 5(4) of the IGST Act, 2017 till 30.06.2018 30 Seeks to exempt payment of tax under section 7(4) of the UT GST Act, 2017 till 30.06.2018 31 17 23 24 DGFT UPDATE Amendment in import policy and policy condition of pepper classified under Chapter 09 of ITC (HS), 2017 - Schedule-1 (Import Policy) Amendments to Foreign Trade Policy 2015-2020 - Extension of Integrated and Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation and EPCG Scheme till 01.10.2018 Amendments to Foreign Trade Policy 2015-20 - Extension to Integrated Goods and Service Tax (IGST) and compensation Cess exemption under EOU Scheme till 01.10.2018 32-33 34 35 3
MCA UPDATES [To be published in the Gazette of India, Extraordinary, Part II, Section 3, sub section (ii)] Government of India Ministry of Corporate Affairs Notification New Delhi the 21 st March, 2018 S.O. (E). - In exercise of the powers conferred by sub-section (3) of section 1 of the Companies Act, 2013 (18 of 2013), the Central Government hereby appoints the 21 st March, 2018 as the date on which the provisions of sub-sections (3) and (11) of section 132 of the said Act shall come into force. [File No. 1/4/2016-CL.I] (K.V.R. Murty) Joint Secretary to the Government of India 4
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, sub section (i)] GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 21 st March, 2018 G.S.R ( E ). In exercise of the powers conferred by sub-section (3) of section 132 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules, namely :- 1. Short Title and Commencement. (1) These rules may be called The National Financial Reporting Authority (Manner of Appointment and other Terms and Conditions of Service of Chairperson and Members ) Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette. For full rules, please follow the below link: http://www.mca.gov.in/ministry/pdf/reportingauthorityrule2103_21032018.pdf [File No. 1/4/2016-CL.I] (K.V.R. Murty) Joint Secretary to the Government of India 5
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 23 rd March, 2018 GSR. ( E ).- In exercise of the powers conferred by sub-section (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Incorporation) Rules, 2014, namely:- 1. Short title and commencement- (1) These rules may be called the Companies (Incorporation) Second Amendment Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Companies (Incorporation ) Rules, 2014 (hereinafter referred to as the principal rules), for rule 9, the following rule shall be substituted, namely :- 9. Reservation of name.- An application for reservation of name shall be made through the web service available at www.mca.gov.in by using form RUN (Reserve Unique Name) along with fee as provided in the Companies (Registration offices and fees ) Rules, 2014, which may either be approved or rejected, as the case may be, by the Registrar, Central Registration Centre after allowing re-submission of such application within fifteen days for rectification of the defects, if any. 3. In the annexure to the principal rules, for the Form RUN the following form shall be substituted, namely :- For the form, please follow the below link : http://www.mca.gov.in/ministry/pdf/companyrule2303_23032018.pdf [F. No. 1/13/2013 CL-V, part I, Vol. II K.V.R. MURTY, Joint Secretary Note: The principal notification was published in the Gazette of India, Extraordinary Part-II, Section 3, Sub-section (i) vide number G.S.R. 250 (E) dated the 31 st March, 2014 and subsequently amended vide the following notifications:- S. No. Notification Number Notification Date 1 G.S.R. 349 (E) 01-05-2015 2 G.S.R. 442 (E) 29-05-2015 3 G.S.R.99 (E) 22-01-2016 4 G.S.R.336(E) 23-03-2016 5 G.S.R. 743 (E) 27-07-2016 6 G.S.R. 936 (E) 01-10-2016 7 G.S.R. 1184 (E) 29-12-2016 8 G.S.R. 70 (E) 25-01-2017 9 G.S.R. 955 (E) 27-07-2017 10 G.S.R. 49 (E) 20-01-2018 6
SEBI UPDATES CIRCULAR SEBI/HO/CDMRD/DRMP/CIR/P/2018/51 March 20, 2018 To, The Managing Directors / Chief Executive Officers National Commodity Derivatives Exchanges Sir / Madam, Sub: Spread margin benefit in commodity futures contracts 1. Vide circulars CIR/CDMRD/DRMP/01/2015 dated October 01, 2015, SEBI/HO/CDMRD/DRMP/CIR/P/2016/77 dated September 01, 2016 and SEBI/HO/CDMRD/DRMP/CIR/P/2016/130 dated December 02, 2016, SEBI has prescribed norms inter-alia for providing margin benefit on spread positions in commodity futures contracts. 2. Based upon proposals from Exchanges and recommendations of the Risk Management Review Committee, following has been decided regarding margin benefit on spread positions: 2.1 Exchanges may provide spread benefit in initial margin across futures contracts in a commodity complex provided the following conditions are met Minimum coefficient of correlation(r) between futures prices of the two commodities is 0.90. Back testing for adequacy of spread margin to cover MTM has been carried out for a minimum period of one year (back testing for at least 250 days where in daily settlement price of futures used for back testing have been determined from traded futures prices). Initial margin after spread benefit has been able to cover MTM on at least 99% of the days as per back testing. 2.2 Maximum benefit in initial margin on spread positions is restricted to 50%. No benefit in ELM shall be provided for spread positions, i.e. ELM shall be charged on both individual legs. Exchanges are free to charge higher margins depending upon their risk perception. Margin benefit on spread positions shall be entirely withdrawn latest by the start of tender period or the start of the expiry day, whichever is earlier. 2.3 To be eligible for initial margin benefit, each individual contract in the spread shall be from amongst the first three expiring contracts in the two commodities only. 2.4 Exchanges shall continuously monitor dynamics of the commodities and their correlation and if there are changes such that spread margin benefit is no longer appropriate to be given, shall take appropriate further course of action. 2.5 In case of calendar spreads or spreads consisting of two contract variants having the same underlying commodity (wherein currently 75% benefit in initial margin is permitted)also, benefit in initial margin shall be permitted only when each individual contract in the spread is from amongst the first three expiring contracts 3. The provisions of this circular shall be effective from July 01, 2018. 7
4. The exchanges are advised to bring the provisions of this circular to the notice of their members and also to disseminate the same on their website. 5. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 6. This circular is available on SEBI website at www.sebi.gov.in. Yours faithfully, Shashi Kumar General Manager Division of Risk Management and Products Commodity Derivatives Market Regulation Department Email: shashikumarv@sebi.gov.in 8
CIRCULAR SEBI/HO/CDMRD/DRMP/CIR/P/2018/52 21 March, 2018 To, The Managing Directors / Chief Executive Officers National Commodity Derivatives Exchanges Sir / Madam, Sub: Risk Management norms for commodity derivatives Minimum Liquid Net-worth and Base Minimum Capital 1. SEBI has issued various circulars from time to time prescribing risk management norms for commodity derivatives exchanges. Post the transfer of clearing and settlement functions from commodity derivatives exchanges to Clearing Corporations, Clearing Corporations shall be required to comply with all such norms. However, norms related to minimum Liquid Net-worth and Base Minimum Capital requirements applicable for clearing members in commodity derivatives are different from that applicable for clearing members in equity derivatives and currency derivatives. 2. It has been decided to align norms related to BMC and liquid net-worth for members of clearing corporations in commodity derivatives with those applicable for clearing members in equity and currency derivatives. Thus, members of Clearing Corporations in commodity derivatives segment shall maintain a minimum Liquid Net-worth of at least INR 50 Lakhs at all points of time and shall not have any Base Minimum Capital requirement. (Clearing member s liquid assets after adjusting for applicable margins shall be referred to as Liquid Net-worth of the clearing member. Initial margins, ELM, additional margins or any other margins as may be specified by SEBI from time to time shall be deducted from the liquid assets of a clearing member to arrive at Liquid Net-worth of member). Acceptance of Fixed Deposit Receipts (FDRs) as collateral 3. SEBI has issued circular CIR/MRD/DRMNP/65/2016 dated July 15, 2016 on Acceptance of Fixed Deposit Receipts (FDRs) by Clearing Corporations to Recognised Clearing Corporations. Commodity Derivatives Exchanges shall also comply with the provisions of that circular within three months from the date of this circular. Thus, Trading/Clearing members of commodity derivatives exchanges, who have deposited their own FDRs or FDRs of associate banks, shall replace such collateral with other eligible collateral as per extant norms, within a period of three months from the date of issuance of this circular. Margin provisions for intra-day crystallised losses 4. SEBI has issued circular CIR/MRD/DRMNP/008/2018 dated January 08, 2018 on Margin provisions for intra-day crystallised losses to Recognised Clearing Corporations. Commodity Derivatives Exchanges shall also comply with the provisions of that circular within three months from the date of this circular. 9
5. The exchanges are advised to bring the provisions of this circular to the notice of their members and also to disseminate the same on their website. 6. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 7. This circular is available on SEBI website at www.sebi.gov.in. Yours faithfully, Shashi Kumar General Manager Division of Risk Management and Products Commodity Derivatives Market Regulation Department Email: shashikumarv@sebi.gov.in 10
CIRCULAR To, IMD/ FPIC/CIR/P/2018/53 March 21, 2018 Designated Depository Participants ("DDPs")/ Custodians of Securities. Sir/ Madam, Subject: Due diligence and reporting requirements under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) 1. This is in continuation of SEBI circulars No. CIR/MIRSD/2/2015 dated August 26, 2015 and No. CIR/MIRSD/3/2015 dated September 10, 2015 wherein SEBI has informed all intermediaries regarding due diligence and reporting requirements under Rules 114F to114h of the Income-tax Rules(hereinafter referred as Rule) and Guidance Note on FATCA and CRS issued by the CBDT, New Delhi, vide F.No.500/137/2011-FTTR-III dated August 31, 2015 (Available at http://www.incometaxindia.gov.in/communications/notification/guidance_notes_on_implement ation_31_08_2015.pdf) 2. In terms of Rule 114G(11), the regulators are required to issue necessary instructions and guidelines from time to time for: a) Incorporating the requirements of reporting and due diligence b) Providing the procedure and manner of maintaining the information by the Reporting financial institution (RFI). RFI is defined in Rule 114F (7). c) Ensuring the availability of the information with the reporting financial institution for meeting their reporting obligation, if such information is not maintained by it under any rule or regulation issued by the regulator 3. Accordingly, all RFIs are advised to take following necessary steps to ensure compliance with requirements specified in the aforesaid rules for carrying out the necessary due-diligence and reporting for Foreign Portfolio Investors (FPIs):- i. Obtain valid self-certifications/fatca and CRS declaration forms with documentary evidence as part of the account opening documentation in relation to FATCA/ CRS as specified in Rule 114H. Indicative self-certifications for individuals and entities are provided as Appendix D and E in the Guidance Note on FATCA and CRS. ii. In accordance with CBDT clarification dated February 19, 2016, Custodian are required to carry out the due diligence on the accounts held by Global Custodian (GC) end-clients. However, for carrying out due diligence, the Custodian may rely on the FATCA/CRS documentation done by GC for the account holders including the self-certification. Further, it may be clarified that the obligations for due diligence and reporting remain that of the Custodian who should also be able to access all documents in relation to an account holder. iii. Create a process/system to capture and validate the information collected through valid FACTCA/ CRS declaration forms. 11
iv. Develop framework for carrying out due diligence procedures and for maintaining reporting information, as provided in Rule 114G and 114H v. Furnish the relevant information in Form 61B in respect of the identified reportable accounts as defined in Rule 114F(6) on or before the date prescribed in accordance with sub-rules (7), (8) and (9) of Rule 114G for every calendar year. vi. Develop a system of audit for compliance with Rules 114F, 114G and 114H of Income-tax rules. vii. Ensure compliance with updated rules/ circulars/ notifications/ instructions/ / guidance notes issued on the subject by Central Board of Direct Taxes (CBDT) from time to time. 4. RFIs are required to certify to SEBI on annual basis regarding compliance with the provisions of Rules 114F to 114H of Income-tax rules relating to FATCA / CRS. This certificate would be a part of the audit report on internal controls submitted to SEBI annually. 5. DDPs should grant SEBI registration to a foreign Portfolio Investor (FPI) only after obtaining valid self-certification/ dully filled in forms. DDPs shall submit a certificate in respect of new registration(s)granted during every month at the end of the month that all due diligence procedures, including obtaining of valid self-certification/ FATCA/ CRS declaration, have been followed before granting the said registration to FPI. 6. During inspection of DDPs/ Custodians, SEBI will examine the compliance with the certificate to SEBI regarding self-certification and due-diligence at the time of new registration. 7. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market read with Rule 114G(11) of Income Tax Rules. 8. A copy of this circular is available at the links Legal Framework Circulars and Info for F.P.I on our website www.sebi.gov.in. The DDPs /Custodians are requested to bring the contents of this circular to the notice of their FPI clients. Yours faithfully, Email: achals@sebi.gov.in (Achal Singh) Deputy General Manager Tel No.: 022-26449619 12
CIRCULAR SEBI/HO/MIRSD/DOP1/CIR/P/2018/54 March 22, 2018 To, All recognized Stock Exchange Dear Sir/ Madam Sub: Circular on Prevention of Unauthorised Trading by Stock Brokers I. This master circular consolidates and updates the requirements/obligations with regard to Prevention of Unauthorised Trading by Stock Brokers prescribed by the following circulars: A. CIR/HO/MIRSD/MIRSD2/CIR/P/2017/108 dated September 26, 2017 B. CIR/HO/MIRSD/MIRSD2/CIR/P/2017/124 dated November 30, 2017 C. CIR/HO/MIRSD/MIRSD2/CIR/P/2018/109 dated January 11, 2018 Prevention of Unauthorised Trading by Stock Brokers II. III. SEBI in the past has taken several steps to tackle the issue of Unauthorized Trades viz Periodic Running Account Settlement, Post transactions SMS/email by exchanges/depositories, Ticker on broker/dp websites etc. It was observed that in spite of measures taken, a considerable proportion of investor complaints is of the nature of Unauthorized Trades. To further strengthen regulatory provisions against un-authorized trades and also to harmonise the requirements across markets, it has now been decided that all brokers shall execute trades of clients only after keeping evidence of the client placing such order, which could be, inter alia, in the form of: a. Physical record written & signed by client, b. Telephone recording, c. Email from authorized email id, d. Log for internet transactions, e. Record of messages through mobile phones, f. Any other legally verifiable record. When a dispute arises, the broker shall produce the above mentioned records for the disputed trades. However for exceptional cases such as technical failure etc. where broker fails to produce order placing evidences, the broker shall justify with reasons for the same and depending upon merit of the same, other appropriate evidences like post trade confirmation by client, receipt/payment of funds/securities by client in respect of disputed trade, etc. shall also be considered. IV. Further, wherever the order instructions are received from clients through the telephone, the stock broker shall mandatorily use telephone recording system to record the instructions and maintain telephone recordings as part of its records. V. The Brokers are required to maintain the records specified at Para III above for a minimum period for which the arbitration accepts investors complaints as notified from time to time currently three years. However in cases where dispute has been raised, such records shall be kept till final resolution of the dispute. 13
VI. VII. VIII. IX. If SEBI desires that specific records be preserved then such records shall be kept till further intimation by SEBI. The earlier circulars on the same subject mentioned in Para 1 of this Master Circular stand rescinded. This master circular shall continue to be effective from 1 st April2018. The Stock Exchanges are directed to: a. Bring the provisions of this circular to the notice of the Stock Brokers and also disseminate the same on their websites. b. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above directions in coordination with one another to achieve uniformity in approach c. Communicate to SEBI, the status of the implementation of the provisions of this circular in their Monthly Development Reports. X. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of and to regulate the securities market. Yours faithfully, Debashis Bandyopadhyay General Manager 14
RBI UPDATES RBI/2017-18/142 DGBA.GBD.No.2324/42.01.029/2017-18 All Agency Banks Dear Sir / Madam, March 19, 2018 Reporting and Accounting of Central Government Transactions of March 2018 Please refer to Circular DGBA.GAD.No. 2376/42.01.029/2016-17 dated March 16, 2017 advising the procedure to be followed for reporting and accounting of Central Government transactions (including CBDT, CBEC, departmentalised ministries and non-civil Ministries) at the Receiving/Nodal/Focal Point branches of your bank for the Financial Year 2016-17. 2. The Government of India has decided that the date of closure of residual transactions for the month of March 2018 be fixed as April 10, 2018 for the Financial Year 2017-18. In view of the ensuing closing of government accounts for the financial year 2017-18, receiving branches including those not situated locally, should adopt special arrangements such as courier service etc., for passing on challans/scrolls etc., to the Nodal/Focal Point branches so that all payments and collections made on behalf of government towards the end of March are accounted for in the same financial year. These instructions regarding special messenger arrangements may please be informed to all branches concerned. 3. As regards reporting of March 2018 transactions by Nodal/Focal Point branches in April, the branches may be advised to follow the procedure as outlined in the Annex. To sum up, the Nodal/Focal Point branches will be required to prepare separate sets of scrolls, one pertaining to March residual transactions and another for April transactions during the first 10 days of April 2018. The Nodal/Focal Point branches should also ensure that the accounts for all transactions (revenues/tax collections/payments) are effected at the receiving branches up to March 31, 2018 in the accounts for the current financial year itself and are not mixed up with the transactions of April 2018. Also, while reporting transactions pertaining to March 2018 up to April 10, 2018, the transactions of April 2018 should not be mixed up with the residual transactions relating to March 2018. 4. Kindly issue necessary instructions in the matter to your branches concerned immediately. Yours faithfully (Partha Choudhuri) General Manager ANNEX Reporting of March Transactions Beginning from April 1, 2018, the Nodal/Focal Point branches will segregate on a daily basis all scrolls/challans pertaining to March 2018 received from the receiving branches concerned and prepare separate main scrolls for: 15
a. scrolls for transactions of March 2018 or earlier period (i.e. effected during the previous financial year 2017-18) and b. scrolls pertaining to current transactions (i.e. those effected from April 1, 2018 onwards). 2. The main scrolls for March 2018 transactions prepared from April 1 to April 10, 2018 are to be distinctly marked as March Residual - 1, March Residual - 2 and so on upto April 10, 2018. In other words, serial number should be allotted in consecutive order for each main scroll of March 2018 transactions sent from April 1 to April 10, 2018. These scrolls alongwith the copies of daily summary of Receipts and Payments prepared separately for March 2018 transactions will be forwarded to the Departmental Officials concerned (i.e. Zonal Accounts Officers/Pay and Accounts Officers and Designated Officers) in the usual way. The Nodal/Focal Point branches will also be required to report the above transactions to the Link Cell through separate Daily Memos. These advices must be sent to enable the Link Cell of each bank at Nagpur, to make daily settlement with Reserve Bank of India, Central Accounts Section (CAS) Nagpur. On receipt of advices from the Nodal/Focal Point branches, the Link Cell should segregate the advices for the March Residual transactions and forward them separately to Reserve Bank of India, CAS, Nagpur. This procedure should continue upto and inclusive of April 10, 2018 only. All transactions reported thereafter by the receiving branches will be reported and accounted for in the usual manner in the accounts of the month of report irrespective of the date of transaction. Following the special arrangements for March 2018 transactions, it is necessary for the Nodal/Focal Point branches to prepare two sets of DMS to be submitted to Zonal Accounts Officers/Pay and Accounts Officers for March 2018 transactions - one for transactions upto March 31, 2018 and another for March Residual Transactions adjusted by Nodal/Focal Point branches with Reserve Bank of India, Central Accounts Section, Nagpur, during April 1 to April 10, 2018. Since the Nodal/Focal Point branch will also be reporting the April 2018 transactions pertaining to year 2018-19 in addition to March Residual transactions, monthly statement for April transactions should be compiled and furnished to Zonal Accounts Officers/Pay and Accounts Officers in the usual way. In order to distinguish the April 2018 (year 2018-19) and March Residual Transactions, the statement pertaining to March Residual Transactions should be clearly marked as "March Residual Account". The statement of March (Residual) Transactions should be sent by all Focal Point Branches to Zonal Accounts Officers/Pay and Accounts Officers latest by April 18, 2018. Note: As advised in our circular GA.NB.No.376/42.01.001/1995-96 dated May 22, 1996 all the cheques/amounts realized on or before March 31, 2018 should be treated as transactions relating to the current financial year as "March 2018 or March Residual Transactions", the reporting of which may take place during the month of April (upto April 10, 2018). But if any cheque is tendered on or before March 31, 2018 and realized on or after April 1, 2018, it will be treated as transaction for the next financial year as "April Transactions". Accordingly, the banks will prepare separate scrolls for March 2018 and April 2018 (year 2018-19) transactions. 16
RBI/2017-18/143 DBR.AML.No.8528/14.06.056/2017-18 March 23, 2018 All Regulated Entities Dear Sir/Madam, Implementation of UNSCR 2397 (2017), pertaining to Democratic People's Republic of Korea (DPRK) Please find enclosed a copy of the Order issued by Ministry of External Affairs dated March 5, 2018, published in the Gazette of India on implementation of United Nations Security Council Resolutions 2397 (2017) on Democratic People s Republic of Korea. 2. Regulated Entities (REs) may take note of the gazette notification and ensure compliance with the same. Yours faithfully, (Dr. S. K. Kar) Chief General Manager For enclosure, please refer below link: https://rbidocs.rbi.org.in/rdocs/content/pdfs/meanpo05032018.pdf 17
CUSTOM UPDATES [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance Department of Revenue (Central Board of Excise and Customs) Notification No. 21 /2018-Customs (N.T.) New Delhi, the 19 th March, 2018 G.S.R...(E).- In exercise of the powers conferred by clause (a) of sub-section (1), read with subsection (2) of section 7 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 61/94(NT)-CUSTOMS dated the 21 st November, 1994, published in the Gazette of India, Extraordinary vide number S.O. 828 (E), dated the 21 st November, 1994, namely: In the said notification, in the Table, (a) against serial number 2 relating to the State of Andhra Pradesh, for the word Hyderabad, the word Vijayawada in column (3) shall be substituted. (b) after serial number 15 and the entries relating thereto, the following serial number and entries shall be inserted, namely: Sl. State/ Union Airport Purpose No. Territory 1 2 3 4 15A. Telangana Shamshabad Hyderabad Unloading of imported goods and the loading of export goods or any class of such goods. [F. No. 520/07/2017-Cus-VI] (B. Konthoujam) Under Secretary to the Government of India Note:- The principal notification No. 61/94(NT)-CUSTOMS, dated the 21 st November, 1994 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number S.O. 828(E), dated the 21 st November, 1994 and last amended by notification number 56/2017-Customs (N.T.) dated the 23 rd June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 630(E), dated the 23 rd June, 2017. 18
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE Notification No. 22/2018-Customs (N.T.) New Delhi, the 20 th March, 2018 G.S.R..... (E). - In exercise of the powers conferred by sub-section (1) of section 11A of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the First Schedule to the Customs Tariff Act, 1975,namely: - In the said First Schedule, in Chapter 7, for tariff item 0713 20 00 and the entries relating thereto, the following shall be substituted, namely: - 0713 20 Chickpeas (garbanzos): 0713 20 10 Kabuli chana Kg. 60 % 20 % 0713 20 20 Bengal gram (desi chana) Kg. 60 % 20 % 0713 20 90 Other Kg. 60 % 20 %. [F.No.528/06/2018-STO (TU)] (Zubair Riaz) Director (Customs) Note: The First Schedule to the Customs Tariff Act, 1975 was last amended by notification no. 150/2016- Customs (N.T.), dated the 31 st December, 2016 vide number G.S.R. 1195 (E), dated the 31 st December, 2016. 19
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 30 /2018-Customs New Delhi, the 20 th March, 2018 G.S. R. (E). In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 27/2011-Customs, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, vide number G.S.R. 153(E), dated the 1 st March, 2011, namely :- In the said notification, in the Table, after serial number 64 and the entries relating thereto, the following serial number and entries shall be inserted, namely:- (1) (2) (3) (4) 65. 1701 Raw sugar, white or refined sugar Nil. [F.No.354/260/2015 -TRU] (Mohit Tewari) Under Secretary to the Government of India Note.- The principal notification No. 27/2011-Customs, dated the 1 st March, 2011 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 153(E), dated the 1 st March, 2011 and last amended vide notification No. 23/2018-Customs, dated the 2nd February, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 126 (E), dated the 2 nd February, 2018. 20
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY PART II, SECTION 3, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No. 31/2018-Customs New Delhi, the 20th March, 2018 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 785(E), dated the 30th June, 2017, namely:- In the said notification, in the Table, against S.No. 21 A, for the entry in column (2), the entry 0713 20 10 shall be substituted; [F.No. 354/368/2017-TRU] (Mohit Tewari) Under Secretary to the Government of India Note: The principal notification No. 50/2017-Customs, dated the 30 th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 785(E), dated the 30 th June, 2017 and last amended vide notification No. 29/2018-Customs, dated the 1 st March, 2018, published vide number G.S.R. 200 (E), dated the 1 st March, 2018. 21
[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY] GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No. 32/2018-Customs New Delhi, the 23rd March, 2018 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 50/2017- Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 785(E), dated the 30th June, 2017, namely:- In the said notification, in the Table, (i) (ii) after S.No. 515 and the entries relating thereto, the following S.No. and entries shall be inserted, namely:- (1) (2) (3) (4) (5) (6) 515A 8529 Open cell (15.6 and above) for use in the 5% - 9 ; manufacture of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels of heading 8529 against S.No. 516, in column (3), item (i) shall be omitted. [F.No.354/20/2017-TRU] (Ruchi Bisht) Under Secretary to the Government of India Note: The principal notification No.50/2017-Customs, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 785(E), dated the 30th June, 2017 and last amended vide notification No. 31/2018-Customs, dated the 20th March 2018, published vide number G.S.R. 250 (E), dated the 20th March 2018. 22
[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE (CENTRAL BOARD OF EXCISE AND CUSTOMS) Notification No. 33/2018-Customs New Delhi, the 23 rd March, 2018 G.S.R. (E). In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 52/2003-Customs, dated the 31 st March, 2003, published in the Gazette of India, Extraordinary, vide number G.S.R. 274 (E), dated the 31 st March, 2003, namely:- In the said notification, in the opening paragraph, in the proviso, for the figures, letters and words 1 st day of April, 2018, the figures, letters and words 2 nd day of October, 2018 shall be substituted. [F.No. DGEP/SEZ/09/2017(Pt-2)] (ANAND KUMAR JHA) Under Secretary to the Government of India Note:-The principal notification No. 52/2003-Customs, dated the 31 st March, 2003 was published in the Gazette of India, Extraordinary, vide number G.S.R. 274 (E), dated the 31 st March, 2003 and last amended by notification No. 78/2017-Customs, dated the 13 th October, 2017, published vide number G.S.R 1272(E), dated the 13 th October, 2017. 23
Circular No. 08/2018- Customs F. No: 450/119/2017-Cus IV Government of India Ministry of Finance Dept. of Revenue (Central Board of Excise and Customs) **** To, Room No. 227B, North Block, New Delhi Dated, the 23 rd March, 2018 All Principal Chief Commissioners/ Chief Commissioners of Customs/Customs (Preventive) All Principal Chief Commissioners/ Chief Commissioners of Customs & Central Excise All Principal Commissioners/ Commissioners of Customs/Customs (Preventive) All Principal Commissioners/ Commissioners of Customs & Central Excise Subject: Refund of IGST on Export-Extension of date in SB005 alternate mechanism cases & clarifications in other cases- reg. Madam/ Sir, CBEC has issued Circular No 5/2018- Customs dated 23-02-2018 which provided for an alternative mechanism with officer interface to resolve invoice mismatch cases. In the said circular, it was provided that the mechanism would be available for the shipping bills filed till 31.12.2017. Although the cases having SB005 error have now greatly rerduced due to continuous outreach done by the Board and increased awareness amongst the trade, but some exporters have nevertheless, have committed errors in filing invoice details in shipping bill and GST returns. Therefore, keeping in view the difficulties likely to faced by exporters in case SB005 are allowed to be corrected through officer interface for SBs file up to 31.12.2017, it has been decided to extend this facility to those shipping bills filed till 28.02.2018. 2. Further, representations have also been received from: (i) Field formations seeking resolution of SB006 errors due to discontinuance of transference copy of shipping Bill. It has been proposed by the field formations that in lieu of transference copy either the final bill of lading issued by the shipping lines or written confirmation from the custodian of the gateway port, may be treated as valid document for the purposes of integration with the EGM. The proposed from the field formation has been examined in the Board. The proposal sent from field formation in such EGM error cases has been agreed. (ii) exporters that by mistakethey have mentioned the status of IGST payment as NA instead of mentioning P in the shipping bill. In other words, the exporter has wrongly declared that the shipment is not under payment of IGST, despite the fact that they have paid the IGST. As a one-time exception, it has been decided to allow refund of IGST through an officer interface wherein the officer can verify and satisfy himself of the actual payment of IGST based on GST return information forwarded by GSTIN. DG (Systems) shall open a physical interface for this purpose. 3. Difficulties if any should be brought to the notice of the Board. 24 Yours Faithfully (Zubair Riaz) Director (Customs)
GST UPDATES [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs Notification No. 14/2018 Central Tax New Delhi, the 23rd March, 2018 G.S.R (E). - In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: - 1. (1) These rules may be called the Central Goods and Services Tax (Third Amendment) Rules, 2018. (2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette. 2. In the Central Goods and Services Tax Rules, 2017,- (i) in rule 45, in sub-rule (1), after the words, where such goods are sent directly to a job worker, occurring at the end, the following shall be inserted, namely:-, and where the goods are sent from one job worker to another job worker, the challan may be issued either by the principal or the job worker sending the goods to another job worker: Provided that the challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal: Provided further that the challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal. ; (ii) in rule 124 (a) in sub-rule (4), in the first proviso, after the words Provided that, the letter a shall be inserted; (b) in sub-rule (5), in the first proviso, after the words Provided that, the letter a shall be inserted; (iii) for rule 125, the following rule shall be substituted, namely:- 125. Secretary to the Authority.- An officer not below the rank of Additional Commissioner (working in the Directorate General of Safeguards) shall be the Secretary to the Authority. ; (iv) in rule 127, in clause (iv), after the words to furnish a performance report to the Council by the tenth, the word day shall be inserted; (v) in rule 129, in sub-rule (6), for the words as allowed by the Standing Committee, the words as may be allowed by the Authority shall be substituted; (vi) in rule 133, after sub-rule (3), the following sub-rule may be inserted, namely:- 25
(4) If the report of the Director General of Safeguards referred to in sub-rule (6) of rule 129 recommends that there is contravention or even non-contravention of the provisions of section 171 or these rules, but the Authority is of the opinion that further investigation or inquiry is called for in the matter, it may, for reasons to be recorded in writing, refer the matter to the Director General of Safeguards to cause further investigation or inquiry in accordance with the provisions of the Act and these rules. ; (vii) for rule 134, the following rule shall be substituted, namely:- 134. Decision to be taken by the majority.- (1) A minimum of three members of the Authority shall constitute quorum at its meetings. (2) If the Members of the Authority differ in their opinion on any point, the point shall be decided according to the opinion of the majority of the members present and voting, and in the event of equality of votes, the Chairman shall have the second or casting vote. ; (viii) after rule 137, in the Explanation, in clause (c), after sub-clause b, the following sub-clause shall be inserted, namely: - c. any other person alleging, under sub-rule (1) of rule 128, that a registered person has not passed on the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices. ; (ix), after rule 138D, the following Explanation shall be inserted, with effect from the 1 st of April, 2018, namely:- Explanation. - For the purposes of this Chapter, the expressions transported by railways, transportation of goods by railways, transport of goods by rail and movement of goods by rail does not include cases where leasing of parcel space by Railways takes place. [F. No. 349/58/2017-GST (Pt.)] (Dr.Sreeparvathy S.L.) Under Secretary to the Government of India Note: - The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, subsection (i) vide notification No. 3/2017-Central Tax, dated the 19 th June, 2017, published vide number G.S.R 610 (E), dated the 19 th June, 2017 and last amended vide notification No. 12/2018-Central Tax, dated the 7 th March, 2018, published vide number G.S.R 204 (E), dated the 7 th March, 2018. 26
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Notification No. 15/2018 Central Tax New Delhi, the 23 rd March 2018 G.S.R...(E). In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby appoints the 1 st day of April, 2018, as the date from which the provisions of sub-rules (ii) [other than clause (7)], (iii), (iv), (v), (vi) and (vii) of rule 2 of notification No. 12/2018 Central Tax, dated the 7 th March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 204 (E), dated the 7 th March, 2018, shall come into force. [F. No.349/58/2017-GST (Pt)] (Dr. Sreeparvathy S.L.) Under Secretary to the Government of India 27
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs Notification No. 16 /2018 Central Tax New Delhi, the 23 rd March, 2018 G.S.R (E). - In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the Act) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B for the month as specified in column (2) of the Table below shall be furnished electronically through the common portal, on or before the last date as specified in the corresponding entry in column (3) of the said Table, namely:- Table Sl. No Month Last date for filing of return in FORM GSTR-3B (1) (2) (3) 1. April, 2018 20th May, 2018 2. May, 2018 20th June, 2018 3. June, 2018 20th July, 2018 2. Payment of taxes for discharge of tax liability as per FORM GSTR-3B: Every registered person furnishing the return in FORM GSTR-3B shall, subject to the provisions of section 49 of the Act, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act by debiting the electronic cash ledger or electronic credit ledger, as the case may be, not later than the last date, as mentioned in column (3) of the said Table, on which he is required to furnish the said return. [F. No. 349/58/2017-GST (Pt.)] (Dr. Sreeparvathy S.L.) Under Secretary to the Government of India 28
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)] Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Notification No. 10/2018 Central Tax (Rate) New Delhi, the 23 rd March, 2018 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.8/2017 Central Tax (Rate), dated the 28 th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 680 (E), dated the 28 th June, 2017, and amended vide notification No.38/2017- Central Tax (Rate), dated the 13 th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 1262 (E), dated the 13th October, 2017, namely:- In the said notification, for the figures, letters and words 31 st day of March, 2018, the figures, letters and words 30 th day of June, 2018 shall be substituted. [F. No.349/58/2017-GST (Pt.)] (Ruchi Bisht) Under Secretary to the Government of India Note: - The principal notification No.8/2017-Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 680 (E), dated the 28 th June, 2017 and amended vide notification No.38/2017- Central Tax (Rate), dated the 13 th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1262 (E), dated the 13 th October, 2017. 29
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)] Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Notification No. 11/2018 Integrated Tax (Rate) New Delhi, the 23 rd March, 2018 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 32/2017- Integrated Tax (Rate), dated the 13 th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1263 (E), dated the 13 th October, 2017, namely:- In the said notification, in paragraph 2, for the figures, letters and words 31st day of March, 2018, the figures, letters and words 30 th day of June, 2018 shall be substituted. [F. No.349/58/2017-GST (Pt.)] (Ruchi Bisht) Under Secretary to the Government of India Note: - The principal notification No. 32/2017- Integrated Tax (Rate), dated the 13 th October, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1263 (E), dated the 13 th October, 2017. 30
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)] Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Notification No. 10/2018 Union Territory Tax (Rate) New Delhi, the 23rd March, 2018 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017 Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 717 (E), dated the 28th June, 2017, and amended vide notification No. 38/2017- Union Territory Tax (Rate), dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1264 (E), dated the 13th October, 2017, namely:- In the said notification, for the figures, letters and words 31st day of March, 2018, the figures, letters and words 30th day of June, 2018 shall be substituted. [F. No.349/58/2017-GST (Pt.)] (Ruchi Bisht) Under Secretary to the Government of India Note: - The principal notification No. 8/2017-Union Territory Tax (Rate), dated the 28 th June,2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 717 (E), dated the 28 th June, 2017 and amended vide notification No.38/2017- Union Territory Tax (Rate), dated the 13 th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 1264 (E), dated the 13 th October, 2017. 31
DGFT UPDATES To be Published in the Gazette of India Extraordinary Part-Il, Section - 3, Sub-Section (ii)) Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Notification No. 53/2015-2020 New Delhi, Dated; 21 March, 2018 Subject: Amendment in import policy and policy condition of pepper classified under Chapter 09 of ITC (HS), 2017-Schedule-l (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, 2015-2020, as amended from time to time, the Central Government hereby amends the import policy and policy condition of 'Pepper' classified under Chapter 09 of ITC (HS), 2017 - Schedule -1 (Import Policy) as under: Exim Code Item Description Policy Revised Revised Policy Condition Policy 0904 11 Neither crushed nor ground: 0904 11 10 Pepper, long Free Prohibited However, import is free if CIF is above Rs. 500/ per kg. 0904 11 20 Light black pepper Free Prohibited However, import is free if CIF is above Rs. 500/ per kg. Further, imports under Advance Authorisation Scheme is 'Free' and are exempted from the MIP condition when import is for extraction of oleoresin, for reexport, by the manufacturer exporters only, subject to the following condition: a. Light black pepper berries shall have a minimum piperine content of 6% for import into India under AAS for oleoresin. b. The samples shall be drawn by Customs and tested at Spices Board's Quality Evaluation Labs for piperine content as per the ISO 5564 method. c. The yield assessment for oleoresin for AAS shall be done as per the ISO 1108 method at the Quality Evaluation Lab of Spices Board. 32
d. The manufacturer exporters, who import pepper under AAS, for oleoresin purpose shall submit the details of import of pepper viz. quantity of pepper imported, quantity of oleoresin produced, quantity of oleoresin re-exported, balance stock available as well as the details of usage/disposal of spent material on a monthly basis to the Spices Board. 0904 11 30 Black pepper, Free Prohibited However, import is free if CIF is garbled above Rs. 500 / per kg 0904 11 40 Black pepper Free Prohibited However, import is free if CIF is ungarbled above Rs. 500 / per kg 0904 11 50 Green pepper, Free Prohibited However, import is free if CIF is dehydrated above Rs. 500 / per kg 0904 11 60 Pepper pinheads Free Prohibited However, import is free if CIF is above Rs. 500 / per kg 0904 11 70 Green pepper, frozen or dried Free Prohibited However, import is free if CIF is above Rs. 500 / per kg 0904 11 80 Pepper other than green, frozen Free Prohibited However, import is free if CIF is above Rs. 500 / per kg 0904 11 90 Other Free Prohibited However, import is free if CIF is above Rs. 500 / per kg 0904 1200 Crushed or ground Free Prohibited However, import is free if CIF is above Rs. 500 / per kg Effect of this Notification: Import of pepper over and above CIF: 500/ per kilogram is free and import below CIF Rs. 500/ is prohibited. (Alok vardhan Chaturvedi) Director General of Foreign Trade 33
{To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub Section (ii)} Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade Udyog Bhawan ***** Notification No.54/2015-20 New Delhi, Dated 22 March 2018 Subject: - Amendments to Foreign Trade Policy 2015-2020 - Extension of Integrated and Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation and EPCG scheme till 01.10.2018. S.O (E): In exercise of powers conferred by Section 5 of FT (D&R) Act, 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2015-20, as amended from time to time, the Central Government hereby makes following amendments in Foreign Trade Policy 2015-20. 1. Exemption from Integrated Tax and Compensation Cess under Advance Authorization Scheme under Para 4.14 of FTP 2015-20 is extended upto 01.10.2018. 2. Exemption from Integrated Tax and Compensation Cess under EPCG Scheme under Para 5.01 (a) of FTP 2015-20 is extended upto 01.10.2018. Effect of this Notification: Para 4.14 and Para 5.01 (a) of Foreign Trade Policy 2015-20 are amended as above. (Alok Vardhan Chaturvedi) Director General of Foreign Trade 34
{TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART II, SECTION 3, Sub Section (ii)} GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE NOTIFICATION No. 55/2015.2020 NEW DELHI, DATED THE 23 March, 2018 Subject: Amendments to Foreign Trade Policy 2015-20 - Extension to Integrated Goods and Service Tax (IGST) and compensation Cess exemption under EOU scheme till 01.10.2018 - regd. S.O (E): In exercise of powers conferred by Section 5 of FT (D&R) Act, 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2015-20, as amended from time to time, the Central Government hereby makes following amendments in Foreign Trade Policy 2015-20. 1. Exemption from Integrated Tax and Compensation Cess under EOU Scheme under Para 6.01 (d) (ii) of FTP 2015-20 is extended upto 01.10.2018. Effect of this Notification: Para 6.01 (d) (ii) of Foreign Trade Policy 2015-20 is amended as above. (Alok Vardhan Chaturvedi) Director General of Foreign Trade 35
(Corporate Laws and Intellectual Property Rights Consultants) Delhi I Mumbai I Pune I Kanpur Corporate Office: 63/12, First Floor, Main Rama Road, New Delhi-110015 Ph: +91 11 25101016/17, Mob: +91-9971666825 Email: brijesh@bmcadvisors.in, brijesh@brijeshmathur.com Website: www.bmcadvisors.in 36