WEEKLY UPDATES
MAY 7TH – 12TH, 2012
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
INDEX
MCA UPDATES
Filing of Cost Audit Report (Form-I) and Compliance Report (Form-A) in the eXensible
Business Reporting Language (XBRL) mode
1-2
RBI UPDATES
Transfer of Funds from Non-Resident
Resident External (NRE) Account
Ordinary
(NRO)
account
to
Non-
3
Release of Foreign Exchange for Miscellaneous Remittances
4
External Commercial Borrowings (ECB) Policy
for Rupee expenditure
- Utilization of ECB proceeds
5
Foreign Direct Investment (FDI) in India - Issue of equity shares under the
FDI scheme allowed under the Government route
6
7
Foreign
investment
in
Commodity
Exchanges
Amendment to the Foreign Direct Investment (FDI) Scheme
and
NBFC
Sector
8–9
Interest Rates on FCNR (B) Deposits
Risk Management and Inter Bank Dealings
10
Risk Management and Inter Bank Dealings
11
Exchange Earner's Foreign Currency (EEFC) Account
12
Exim Bank's Line of Credit of USD 13 million to the Government of the Republic of
Mozambique
13
Transfer of Borrowal Accounts from One Bank to Another
14 – 19
Acceptance of Public Deposits Directions, 1998 –Eligible Credit Rating Agencies-Rating of
Fixed Deposits by Brickwork Ratings Pvt Ltd (Brickwork)
20 – 21
Prudential Norms Directions, 2007 - Infrastructure Finance Companies - Eligible
Credit Rating Agencies - Brickwork Ratings India Pvt. Ltd. (Brickwork)
22 – 23
Core Investment Companies (Reserve Bank) Directions, 2011 – Clarification on CICs
Issuing Guarantees
24 – 25
Guidelines for clearing of cheques where there is no formal clearing house
26 – 27
Review
of
Service
Outstation and Speed Clearing
Charges
for
Cheque
Collection
8/3, 2nd
KarolRoad,
Bagh,New
NewDelhi
Delhi-110005
63/12,
1stFloor,
Floor,W.E.A,
Main Rama
- 110015
–
28
CUSTOMS UPDATES
30/2012 – Customs, dated 08-05-2012
29
31/2012 – Customs, dated 08-05-2012
30 – 31
32/2012 – Customs, dated 08-05-2012
32
Enforcement of Intellectual Property Rights on imported goods - Clarification on the issue
of parallel imports
32 – 35
EXCISE UPDATES
Seeks to exempt excise duty on Articles of jewellery and goods falling under heading 8607
Seeks to amend notification No. 12/2012-CE dated 17.03.2012
36
37 – 38
Seeks to amend notification 10/96-CE dated 23rd July 1996
39
Seeks to amend notification no. 15/2010 CE dated 27 th February, 2010
40
Seeks to amend CENVAT credit Rules, 2004 (Fifth Amendment)
41
SERVICE TAX UPDATES
42
Clarification on Rate of Tax
DGFT UPDATES
Amendment in paragraph 6.9 of FTP
43
Export Policy of Onions
44
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
MCA UPDATES
Filing of Cost Audit Report (Form-I) and Compliance Report (Form-A) in the eXensible Business Reporting
Language (XBRL) mode
-1-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
-2-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI UPDATES
RBI/2011-12/536
A. P. (DIR Series) Circular No.117
May 07, 2012
To
All Authorised Dealer banks and Authorised banks
Madam/Sir,
Transfer of Funds from Non-Resident Ordinary (NRO) account to NonResident External (NRE) Account
The Committee to Review the Facilities for Individuals Under FEMA, 1999 (Chairperson : Smt. K.J.Udeshi) has
recommended that the NRIs/PIOs may be permitted, subject to payment of applicable taxes, to transfer repatriable
funds from their NRO account within the overall ceiling of US $ 1 million per financial year, for credit to their NRE
account in India. At present transfer of funds from NRO to NRE account is not permissible.
2. On a review, it has been decided that henceforth NRI as defined in Foreign Exchange Management (Deposit)
Regulations, 2000 contained in Notification No. FEMA.5/2000-RB dated 3rd May 2000, as amended from time to
time, shall be eligible to transfer funds from NRO account to NRE account within the overall ceiling of USD one
million per financial year subject to payment of tax, as applicable (i.e. as applicable if funds were remitted abroad).
Such credit of funds to NRE account shall be treated as eligible credit in terms of paragraph 3(j) of Schedule-1 of
Notification No. FEMA.5/2000-RB dated 3rd May 2000.
3. All Authorised Dealer banks and Authorised banks may bring the contents of this circular to the notice of their
constituents and customers concerned.
4. The directions contained in this circular have been issued under Sections 10(4) and 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,
(Rudra Narayan Kar)
Chief General Manager
-3-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/537
A. P. (DIR Series) Circular No.118
May 07, 2012
To
All Authorised Dealers in Foreign Exchange
Madam/ Sir,
Release of Foreign Exchange for Miscellaneous Remittances
Attention of Authorised Dealers in foreign exchange is drawn to A.P.(DIR Series) Circular No. 16 dated September
12, 2002, in terms of which the Authorised Dealers were advised to release amounts up to USD 500 or its equivalent
for all permissible transactions on the basis of a simple letter from the applicant containing the basic information,
viz., names and the addresses of the applicant and the beneficiary, amount to be remitted and the purpose of
remittance. It was clarified in the circular that Authorised Dealers need not insist upon submission of A2 Forms in
such cases. The limit was subsequently enhanced to USD 5000 in terms of the A.P.(DIR Series) Circular No. 55 dated
December 23, 2003.
2. With a view to further liberalizing the documentation requirements, the limit for foreign exchange remittance for
miscellaneous purposes without documentation formalities, has been raised from USD 5000 to USD 25000 with
immediate effect.
3.It is clarified that Authorised Dealers need not obtain any document, including Form A-2, except a simple letter as
stated above as long as the foreign exchange is being purchased for a current account transaction (not included in
the Schedules I and II of Government Notification on Current Account Transactions), and the amount does not
exceed USD 25000 or its equivalent and the payment is made by a cheque drawn on the applicant's bank account or
by a Demand Draft. AD banks shall prepare dummy A-2 so as to enable them to provide purpose of remittance for
statistical inputs for Balance of Payment.
4. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.
5.The directions contained in this circular have been issued under Sections 10(4) and 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,
(Rudra Narayan Kar)
Chief General Manager
-4-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/539
A. P. (DIR Series) Circular No.119
May 7, 2012
To
All Category-I Authorised Dealer Banks
Madam / Sir,
External Commercial Borrowings (ECB) Policy - Utilization of ECB proceeds
for Rupee expenditure
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 5
dated August 1, 2005 and A.P. (DIR Series) Circular No. 52 dated November 23, 2011 relating to External
Commercial Borrowings.
2. As per the extant guidelines, ECB proceeds can be utilized for permissible foreign currency expenditure and
Rupee expenditure. On a review, it has been decided that at the time of availing Loan Registration Number (LRN)
from the Reserve Bank, borrowers should provide bifurcation of the utilization of the ECB proceeds towards
foreign currency and Rupee expenditure in Form-83.
3. The primary responsibility to ensure that the ECB proceeds meant for Rupee expenditure in India are repatriated
to India for credit to their Rupee accounts with AD Category- I banks in India as per A.P. (DIR Series) Circular No.
52 dated November 23, 2011 is that of the borrower concerned and any contravention of the ECB guidelines will be
viewed seriously and will invite penal action under the Foreign Exchange Management Act (FEMA), 1999. The
designated AD bank is also required to ensure that the ECB proceeds meant for Rupee expenditure are repatriated
to India immediately after drawdown.
4. The modifications to the ECB policy will come into force with immediate effect and subject to review. All other
aspects of the ECB policy shall remain unchanged.
5. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers.
6. The directions contained in this circular have been issued under sections 10(4) and 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,
(Rashmi Fauzdar)
Chief General Manager
-5-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/541
A. P. (DIR Series) Circular No.120
May 08, 2012
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Foreign Direct Investment (FDI) in India - Issue of equity shares under the
FDI scheme allowed under the Government route
Attention of Authorised Dealers Category – I (AD Category - I) banks is invited to the A.P. (DIR Series) Circular No.
74 dated June 30, 2011, and A.P. (DIR Series) Circular No. 55 dated December 09, 2011, on issue of equity shares/
preference shares under the Government route by conversion of import of capital goods / machineries /
equipments (including second-hand machineries) and pre-operative / pre-incorporation expenses (including
payments of rent, etc.), subject to the terms and conditions stated therein.
2. With a view to incentivising use of machinery embodying the latest state-of-the-art technology, compliant with
international standards, in terms of being green, clean and energy efficient, it has now been decided to exclude
conversion of imported second-hand machinery from the purview of this provision.
3. All the other instructions contained in the above referred A.P. (DIR Series) Circulars shall remain unchanged.
4. AD Category - I banks may bring the contents of the circular to the notice of their customers/constituents
concerned.
5. Necessary amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident
Outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated May 3, 2000) are being notified
separately.
6. The directions contained in this circular have been issued under sections 10(4) and 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,
(Rudra Narayan Kar)
Chief General Manager
-6-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/542
A. P. (DIR Series) Circular No.121
May 08, 2012
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Foreign investment in Commodity Exchanges and NBFC Sector Amendment to the Foreign Direct Investment (FDI) Scheme
Attention of Authorised Dealers Category – I (AD Category - I) banks is invited to Schedule 1 to the Foreign
Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 notified
vide Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to time read with para 2 of A.P
(DIR Series) Circular No.41 dated April 28, 2008, which allowed foreign investment in commodity exchanges,
subject to a composite (FDI & FII) ceiling of 49 per cent with FDI limit of 26 per cent and FII limit of 23 per cent
under Portfolio Investment Scheme (PIS), subject to conditions stated therein.
2. The extant policy for foreign investment in commodity exchanges, has since been reviewed and it has been
decided that prior approval of the Government (FIPB) would be required only for FDI component and Government
approval would not be required for investment by registered FIIs in commodity exchanges. All other conditions
contained in A.P (DIR Series) Circular No.41 dated April 28, 2008 shall remain unchanged.
3. Further, under the extant FDI policy, „leasing and finance‟ is one of the 18 NBFC activities wherein FDI up to 100
per cent is permitted under automatic route, subject to minimum capitalisation norms. It is hereby clarified that FDI
is permitted only in „financial leases‟ (financial leasing activity) and not in ‟operating leases‟ (operating leasing
activity).
4. AD Category - I banks may bring the contents of the circular to the notice of their customers/constituents
concerned.
5. Necessary amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident
Outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated May 3, 2000) are being notified
separately.
6. The directions contained in this circular have been issued under sections 10(4) and 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,
(Rudra Narayan Kar)
Chief General Manager
-7-
8/3,
2nd Floor,
W.E.A,
63/12,
1st Floor,
MainKarol
RamaBagh,
Road,New
NewDelhi-110005
Delhi - 110015
RBI/2011-12/543
RPCD.CO.RRB.BC.No. 76/03.05.33 (C)/2011-12
May 8, 2012
The Chairmen
All Regional Rural Banks
Dear Sir,
Interest Rates on FCNR (B) Deposits
Please refer to paragraph 2 of our circular RPCD.CO.RRB.BC.No. 36/03.05.33 (C) /2011-12 dated November 24,
2011 on Interest Rates on deposits held in FCNR (B) Accounts. In view of the prevailing market conditions, it has
been decided that until further notice and with effect from the close of business in India as on May 4, 2012, the
interest rates on FCNR (B) Deposits will be as under:
Maturity Period
Existing
Revised
1 year to less than 3 years LIBOR/SWAP plus 125 basis points LIBOR/Swap plus 200 basis points
3-5 years
LIBOR/SWAP plus 125 basis points LIBOR/swap plus 300 basis points
On floating rate deposits, interest shall be paid within the ceiling of swap rates for the respective currency/maturity
plus 200 bps/300 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.
2. All other instructions in this regard, as amended from time to time, will remain unchanged.
3. An amending Directive RPCD.CO.RRB.Dir.NO.75/ 03.05.33(C)/2011-12 dated May 08, 2012 is enclosed.
Yours faithfully
(C. D. Srinivasan)
Chief General Manager
RPCD.CO RRB.Dir.No.75 /03.05.33 (C) /2011-12
May 08, 2012
Interest Rates on FCNR (B) Deposits
In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and in modification of the
directiveRPCD.CO.RRB.Dir.No.35/03.05.33 (C) /2011-12 dated November 24, 2011 on Interest Rates on Deposits
held in Non-Resident (External) (NRE) Accounts and FCNR (B) Accounts, the Reserve Bank of India being satisfied
that it is necessary and expedient in the public interest so to do, hereby directs that with effect from the close of
business in India as on May 4, 2012 the interest rates on FCNR (B) deposits shall be as under:
-8-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
Maturity Period
Existing
Revised
1 year to less than 3 years
LIBOR/SWAP plus 125 basis points LIBOR/Swap plus 200 basis points
3-5 years
LIBOR/SWAP plus 125 basis points LIBOR/swap plus 300 basis points
On floating rate deposits, interest shall be paid within the ceiling of swap rates for the respective currency/maturity
plus 200 bps/300 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.
(V. K. Sharma)
Executive Director
-9-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/545
A. P. (DIR Series) Circular No. 122
May 09, 2012
To,
All Authorised Dealer Category - I Banks
Madam / Sir,
Risk Management and Inter Bank Dealings
Attention of Authorized Dealers Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.92
dated April 4, 2003 on the captioned subject.
2. In terms of paragraph C 4(iv) of the aforesaid circular, AD banks have been permitted to deploy foreign currency
funds for granting loans to resident constituents for meeting their foreign exchange requirements or for the rupee
working capital/capital expenditure needs subject to the prudential/interest-rate norms, credit discipline and
credit monitoring guidelines in force.
3. The Reserve Bank of India has reviewed the interest rate and the end use of the FCNR(B) deposits vide its circular
DBOD.Dir.BC.102/13.03.00/2011-12 dated May 4, 2012. Accordingly, it has been decided that FCNR(B) funds
representing deposit liabilities may be utilised for making loans to resident constituents for meeting i.
ii.
their foreign exchange requirements or
for the rupee working capital/capital expenditure needs of exporters /corporates who have a natural
hedge or a risk management policy for managing the exchange risk
subject to the prudential/interest-rate norms, credit discipline and credit monitoring guidelines in force.
Authorised dealers may be guided accordingly.
4. AD Category-I banks may bring the contents of this circular to the notice of their constituents concerned.
5. The directions contained in this circular have been issued under sections 10(4) and 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,
(Rudra Narayan Kar)
Chief General Manager
-10-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/546
A.P. (DIR Series) Circular No.123
May 10, 2012
To,
All Authorised Dealer Category - I Banks
Madam / Sir,
Risk Management and Inter Bank Dealings
Attention of Authorized Dealers Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.58
dated December 15, 2011 on the captioned subject.
2. In terms of the above circular, Intra-day open position / daylight limit of Authorised Dealers should not exceed
the erstwhile Net Overnight Open Position Limit available to them. It was further clarified through FEDAI Circular
SPL-58/Risk Mgmt./2011 dated 21st December 2011 that restrictions placed on Intraday positions limits is only
applicable for positions involving Rupee as one of the currencies.
3. On a review it has been decided to fix the intra-day open position / daylight limit of the Authorised Dealers at
five times the Net Overnight Open Position Limit available to them or the existing Intra-day open position limit as
approved by the Reserve Bank, whichever is higher, for positions involving Rupee as one of the currencies.
4. The directions contained in this circular have been issued under sections 10(4) and 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,
(Rudra Narayan Kar)
Chief General Manager
-11-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/547
A. P. (DIR Series) Circular No. 124
May 10, 2012
To
AD Category I Authorised Dealer Banks
Madam/ Sir,
Exchange Earner's Foreign Currency (EEFC) Account
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A.P. (DIR Series) Circular No.15
dated November 30, 2006 in terms of which all foreign exchange earners were permitted to retain 100% of their
forex earnings in EEFC account with any AD in India.
2. On a review of the Scheme, it has been decided as under :a) 50% of the balances in the EEFC accounts should be converted forthwith into rupee balances and credited to the
rupee accounts as per the directions of the account holder. This process may be completed within a fortnight from
the date of the circular and compliance reported to the Chief General Manager, Foreign Exchange Department,
Central Office, Trade Division, Amar Building, Sir P.M. Road, Fort, Mumbai 400 001
b) In respect of all future forex earnings, an exchange earner is eligible to retain 50% (as against the previous limit
of 100%) in non-interest bearing EEFC accounts. The balance 50% shall be surrendered for conversion to rupee
balances.
c) The facility of EEFC scheme is intended to enable exchange earners to save on conversion/transaction costs
while undertaking forex transactions in future. This facility is not intended to enable exchange earners to maintain
assets in foreign currency, as India is still not fully convertible on Capital Account. Accordingly, EEFC account
holders henceforth will be permitted to access the forex market for purchasing foreign exchange only after utilising
fully the available balances in the EEFC accounts. ADs may, accordingly, obtain a declaration while selling foreign
exchange to their constituents.
3. It may be noted that the provisions at paragraph 2(b) and 2(c) above will apply, mutatis mutandis, also to holder
of either a Resident Foreign Currency Account (RFC) or a Diamond Dollar Account (DDA).
4. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers
concerned.
5. The directions contained in this circular have been issued under Sections 10(4) and 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,
(Rashmi Fauzdar)
Chief General Manager
-12-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/549
A. P. (DIR Series) Circular No.125
May 10, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 13 million to the
Government of the Republic of Mozambique
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated September 1, 2011 with the
Government of theRepublic of Mozambique, making available to the latter, a Line of Credit (LOC) of USD 13
million (USD thirteen million) for the purpose of financing of Solar Photo Voltaic Module Manufacturing plant in
Mozambique. The goods, machinery, equipment and services including consultancy services from India for exports
under this Agreement are those which are 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, the goods and services including consultancy 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 goods
and services (other than consultancy services) may be procured by the seller for the purpose of Eligible Contract
from outside India.
2. The Credit Agreement under the LOC is effective from April 23, 2012 and the date of execution of Agreement is
September 1, 2011. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48
months from the scheduled completion date(s) of contract(s) in the case of project exports and 72 months (August
31, 2017) from the execution date of the Credit Agreement in the case of supply contracts.
3. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by the Reserve
Bank from time to time.
4. No agency commission is payable 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- l (AD Category-l) banks may allow such remittance after realization
of full payment of contract value subject to compliance with the prevailing 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 400 005 or log on to www.eximbankindia.in.
6. The directions contained in this circular have been issued under sections 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,
(Rashmi Fauzdar)
Chief General Manager
-13-
8/3, 2nd1stFloor,
KarolRoad,
Bagh,New
NewDelhi
Delhi-110005
63/12,
Floor,W.E.A,
Main Rama
- 110015
RBI/2011-12/551
DBOD.No.BP.BC-104/21.04.048/2011-12
May 10, 2012
The Chairman and Managing Director/
Chief Executive Officer of
All Scheduled Commercial Banks
Dear Sir,
Transfer of Borrowal Accounts from One Bank to Another
Please refer to our circular IECD.No.20/08.12.01/97-98 dated December 2, 1997, in terms of which banks were
advised to incorporate the necessary safeguards to be observed in the case of transfer of borrowal accounts from
one bank to another as a part of their lending policy/procedures.
2. However, of late we have been receiving references/complaints that critical information on the health of the
borrowal accounts being taken over is not being shared by the transferor bank with the transferee bank, resulting in
inadequate due diligence at the time of taking over of accounts.
3. Therefore, we advise that:
a) Banks should put in place a Board approved policy with regard to take-over of accounts from another bank. The
policy may include norms relating to the nature of the accounts that may be taken over, authority levels for sanction
of takeover, reporting of takeover to higher authorities, monitoring mechanism of taken over accounts, credit audit
of taken over accounts, examination of staff accountability especially in case of quick mortality of such cases after
takeover, periodic review of taken over accounts at Board /Board Committee level, Top Management level, etc.
b) In addition, before taking over an account, the transferee bank should obtain necessary credit information from
the transferor bank as per the format prescribed in our circular DBOD.No.BP.BC.94/ 08.12.001/2008-09 dated
December 8, 2008 on “Lending under Consortium Arrangement/Multiple Banking Arrangements”. The format is
furnished in Annex. This would enable the transferee bank to be fully aware of the irregularities, if any, existing in
the borrower's account(s) with the transferor bank. The transferor bank, on receipt of a request from the transferee
bank, should share necessary credit information as per the prescribed format at the earliest.
Yours faithfully,
(Deepak
Chief General Manager-in-Charge
Singhal)
-14-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
Annex
Format for sharing credit information
at the time of transfer of borrowal accounts
Part - I
Bio Data of the Company
I.
Borrowing party's name and address
II. Constitution
III. Names of Directors / Partners
IV. Business activity
* Main
* Allied
V. Names of other financing Banks
VI. Net worth of Directors / Partners
VII. Group affiliation, if any
VIII. Date on associate concerns, if banking with the same bank
IX. Changes in shareholding and management from the previous report, if
any
Part - II
Major Credit Quality Indicators
I. IRAC Classification
II. Internal Credit rating with narration
III. External Credit rating, if any
IV. Latest available Annual Report of the borrower
As on ---------------
-15-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
Part - III
Exposure Details other than Derivatives
(Rs. in crore)
I.
Type of credit facilities, e.g. working capital loan / demand loan / term
loan / short term loan / foreign currency loan, corporate loan / line of
credit / Channel financing, contingent facilities like LC, BG & DPG (I &
F) etc. Also, state L/C bills discounting / project wise finance availed).
II. Purpose of loan
III. Date of loan facilities (including temporary facilities)
IV. Amount sanctioned (facility wise)
V. Balance outstanding (facility wise)
VI. Repayment terms
VII. Security offered
*
Primary
*
Collateral
*
Personal / Corporate Guarantees
*
Extent of control over cash flow
VIII. Defaults in term commitments / lease rentals / others
IX. Any other special information like court cases, statutory dues, major
defaults, adverse internal / external audit observations
Part - IV
Exposure Details - Derivatives Transactions
(Rs. in crore)
Sr.
No.
Nature of the Derivatives Transactions
Notional Weighted Amount Amount Notional
Major
Amount - Average
of
of
Amount Reasons
of
Maturity Positive Contracts of Outfor
Contracts
of
MTM for classified standing restruContracts the Bank as NPA Contracts cturing
(Not due
which (in brief)
for settlehave been
ment)
restructured
A. Plain Vanilla Contracts
1.
Forex Forward contracts
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
2.
Interest rate Swaps
3.
Foreign Currency Options
4.
Any other contracts (Please specify)
B. Complex derivatives including various
types of option combinations designed as
cost reduction / zero cost structures
1.
Contracts involving only interest
rate derivatives
2.
Other contracts including those
involving foreign currency
derivatives
3.
Any other contracts (Please specify)
Part - V
Un-hedged Foreign Currency Exposures of
the Borrower with Currency-wise Details
(Rs. in crore)
I Short term exposures (less than one year)
(a) Long positions
(b) Short positions
(c) Net short- term exposure (a-b)
II Long term exposures (one year and beyond)
(a) Long positions
(b) Short positions
(c) Net long-term exposure (a-b)
III Overall Net Position (I -II) for each currency
(Please give Overall Net Position in this format for
each currency)
IV Overall Net Position across all
currencies
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
Part - VI
Experience with the Borrower
I. Conduct of funded facilities (based on cash
management / tendency to overdraw)
II. Conduct of contingent facilities (based on payment
history)
III. Compliance with financial covenants
IV. Company's internal systems & procedures
V. Quality of management
VI. Overall Assessment
(The above to be rated as good, satisfactory or below par only)
(*) Broad guidelines for incorporating comments under this head is furnished in the next page
Broad Guidelines for Incorporating Comments under Part - VI
(Experience) of the Credit Information Report
Good
Satisfactory
Below Par
Upto 4 times
5 to 6 times
Above 6 times
I. Conduct of funded facilities
* Over-drawings (No. of times)
* Average period of adjustment
* Extent of overdrawings (% of limit)
Within 1 month Within 2 months Beyond 2 months
Upto 10%
10 to 20%
Above 20%
Upto 2 times
3 to 4 times
Above 4 times
Within 1 week
Within 2 weeks
Beyond 2 weeks
* No. of contracts where the positive
MTM value due to the bank remained
overdue for more than 30 days
<25% of total
number of
contracts
25-50% of total
number of
contracts
> 50% of total
number of
contracts
* No. of contracts where the positive
MTM value due to the bank remained
overdue for more than 90 days and the
account had to be classified as NPA
(but later on regularized and is not
NPA as on the date of exchange of
information)
Note : All cases where any of the
contracts has been classified as NPA
and continues to be NPA as on the
<1% of total
number of
contracts
1-5% of total
number of
contracts
> 5% of total
number of
contracts
II. Conduct of contingent facilities (Other than Derivatives)
* No. of Defaults
* Average period of adjustment
III. Conduct of Derivatives Transactions
8/3, 2nd Floor,
W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
date of the exchange of information
should be shown as Below Par)
* No. of contracts restructured during
the relevant period
<25% of total
number of
contracts
25-50% of total
number of
contracts
> 50% of total
number of
contracts
* Stock statement / Financial data
Timely
Delay upto 15
days
Delay over 15
days
* Creation of charge
Prompt
Delay upto 2
months
Delay over 2
months
Adequate
systems are in
place
Adequate
systems are
in place but
not adhered
Adequate
systems are not
in place
* Receivables Management
- do -
- do -
- do -
* Resource Allocation
- do -
- do -
- do -
* Control over Information
- do -
- do -
- do -
Reliable
Nothing adverse
Cannot be
categorized in
previous
columns
Professional &
visionary
Have
necessary
experience
-do-
Timely
Executions /
-do-
IV. Compliance with financial covenants
V. Company's internal systems and procedures
* Inventory Management
VI. Quality of management
* Integrity
* Expertise Competence /
Commitments
* Tract Record
-19-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/555
DNBS.PD. CC No. 272/03.10.01/2011-12
May 11, 2012
All Non-Banking Financial Companies
(except Residuary Non-Banking Companies
and Miscellaneous Non-Banking Companies)
Dear Sir,
Acceptance of Public Deposits Directions, 1998 –Eligible Credit Rating Agencies-Rating of Fixed Deposits by
Brickwork Ratings Pvt Ltd (Brickwork)
Please refer to the Master Circular DNBS (PD) CC No.223 / 03.02.001 / 2011-12 dated July 1, 2011 on Non-Banking
Financial Companies Acceptance of Public Deposits Directions, 1998.
2. In terms of Para 4, sub-paragraph (1) of the Master Circular, the names of the approved Credit Rating Agencies
and the Minimum Investment Grade Credit Rating of these four Credit Rating Agencies has been given.
3. It has now been decided that NBFCs may also use the ratings of the Brickwork Ratings India Pvt. Ltd.
(Brickwork) for the purpose of rating the Fixed Deposit portfolio of NBFCs.
4. Notification issued in this regard DNBS.PD.No.243/CGM (US)-2012, dated May 11, 2012 is enclosed for
meticulous compliance.
Yours faithfully,
(Uma Subramaniam)
Chief General Manager In-Charge
-20-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.
Notification No. DNBS.(PD)243/CGM(US)-2012 dated May 11 , 2012
The Reserve Bank of India, having satisfied that, in the public interest, and to enable the Bank to regulate the
financial system of the country to its advantage, it is necessary to amend the Non-Banking Financial Companies
Acceptance of Public Deposits ( Reserve Bank) Directions, 1998 , in exercise of the powers conferred by sections 45J,
45JA, 45K and 45L of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf,
hereby directs that the said directions contained in Notification No.DFC.118/DG(SPT)-98 dated January 31, 1998
shall stand amended with immediate effect as follows, namely –
Amendment of paragraph 4In paragraph 4, sub-paragraph (1), clause (ii), in the table, after item (d), the words, Brickwork Ratings India Pvt.
Ltd. (Brickwork) shall be added in the name of the agency and in Minimum Investment Grade Rating BWR F A
shall be added.
(Uma Subramaniam)
Chief General Manager In-Charge
-21-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/556
DNBS.PD. CC No. 273/03.10.01/2011-12
May 11 , 2012
All Infrastructure Finance Companies,
Non-Banking Financial Companies
excluding Residuary Non-Banking Companies
Dear Sir,
Prudential Norms Directions, 2007 - Infrastructure Finance Companies - Eligible
Credit Rating Agencies - Brickwork Ratings India Pvt. Ltd. (Brickwork)
Please refer to the Master Circular DNBS (PD) CC No.225 / 03.02.001 / 2011-12 dated July 1, 2011 on Non-Banking
Financial (Non - Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.
2. In terms of para 19A of the circular, Infrastructure Finance Company shall have obtained a minimum credit
rating 'A' or equivalent of CRISIL, FITCH, CARE, ICRA or equivalent rating by any other credit rating agency
accredited by RBI.
3. It has now been decided that NBFCs may also use the ratings of Brickwork Ratings India Pvt. Ltd. (Brickwork) in
addition to the existing four domestic credit rating agencies.
4. Notifications issued in this regard DNBS.PD.No.244 /CGM (US)-2012, dated May 11, 2012 is enclosed for
meticulous compliance.
Yours faithfully,
(Uma Subramaniam)
Chief General Manager In-Charge
-22-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.
Notification No. DNBS.(PD) 244/CGM(US)-2012 dated May 11, 2012
The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose
of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend the NonBanking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions,
2007, contained in Notification No. DNBS. 193/DG(VL)-2007 dated February 22, 2007 (hereinafter referred to as the
Directions), in exercise of the powers conferred by sections 45JA of the Reserve Bank of India Act, 1934 (2 of 1934)
and of all the powers enabling it in this behalf, hereby directs that the said Directions shall be amended with
immediate effect as followsAmendment of paragraph 19 AThe existing clause (iii) shall be substituted with the following viz.,
“ (iii) have obtained a minimum credit rating 'A' or equivalent of CRISIL, FITCH, CARE, ICRA, Brickwork Ratings
India Pvt. Ltd. (Brickwork) or equivalent rating by any other credit rating agency accredited by RBI "
(Uma Subramaniam)
Chief General Manager In-Charge
-23-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/557
DNBS.PD.CC.No.274/03.02.089/2011-12
May 11, 2012
All Core Investment Companies
Core Investment Companies (Reserve Bank) Directions, 2011 – Clarification on CICs Issuing Guarantees
In terms of the Core Investment Companies (Reserve Bank) Directions, 2011 dated January 05, 2011, every
Systemically Important Core Investment Company (CIC-ND-SI) shall, apply to the Reserve Bank of India for grant
of Certificate of Registration. Systemically important core investment company means a CIC fulfilling both the
following conditions:
i.
ii.
Having total assets of not less than Rs.100 crore, either individually or in aggregate along with other Core
Investment Companies in the Group; and
Raises or holds public funds;
CICs not fulfilling the above mentioned conditions are exempted from registration as CICs-ND-SI.
2.CICs may be required to issue guarantees or take on other contingent liabilities on behalf of their group entities.
Before doing so, CICs must ensure that they can meet the obligation thereunder, as and when they arise. In
particular, CICs which are exempt from registration requirement must be in a position to do so without recourse to
public funds in the event the liability devolves. If unregistered CICs with asset size above Rs. 100 crore access
public funds without obtaining a Certificate of Registration (CoR) from RBI, they will be seen as violating Core
Investment Companies (Reserve Bank) Directions, 2011 dated January 05, 2011.
3. As defined in the CIC Directions, “Public funds" shall include funds raised either directly or indirectly through
public deposits, Commercial Papers, debentures, inter-corporate deposits and bank finance but excludes funds
raised by issue of instruments which are compulsorily convertible into equity shares within a period not exceeding
10 years from the date of issue.
Yours faithfully,
(Uma Subramaniam)
Chief General Manager In-Charge
-24-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI, 400 005.
Notification No.DNBS (PD).245/CGM(US)-2012 dated May 11, 2012
The Reserve Bank of India having considered it necessary in the public interest and being satisfied that for the
purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend
the Core Investment Companies (Reserve Bank) Directions, hereafter referred to as Directions, in exercise of the
powers conferred by sections 45JA, 45K, 45L 3 and 45M of the Reserve Bank of India Act, 1934 (2 of 1934), and of all
the powers enabling it in this behalf, hereby amends the directions as specified below.
In part ll, under para (1) a new para (4) may be added as follows:
Every CIC exempted from registration requirement with RBI shall pass a Board Resolution that it will not, in the
future, access public funds. However CICs may be required to issue guarantees or take on other contingent
liabilities on behalf of their group entities. Before doing so, all CICs must ensure that they can meet the obligation
thereunder, as and when they arise. In particular, CICs which are exempt from registration requirement must be in
a position to do so without recourse to public funds in the event the liability devolves, else they shall approach RBI
for registration before accessing public funds. If unregistered CICs with asset size above Rs. 100 crore access public
funds without obtaining a Certificate of Registration (CoR) from RBI, they will be seen as violating Core Investment
Companies (Reserve Bank) Directions, 2011 dated January 05, 2011.
(Uma Subramaniam)
Chief General Manager-in-Charge
-25-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/559
DPSS.CO.CHD No./2073/03.02.01/2011-12
May 11, 2012
The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks/Local Area Banks
Dear Sir/Madam
Guidelines for clearing of cheques where there is no formal clearing house
As you may be aware, it has been the endeavour of Reserve Bank of India to put in place clearing infrastructure at
all places where there are five or more banks operating but do not have a clearing house with a relaxation to district
headquarters where the presence of three banks is sufficient to establish a clearing house. Towards this endeavour,
Regional offices of RBI continuously identify locations and banks for opening new clearing houses. As a result of
such continuous efforts, there are 1200 clearing houses as on April 2012 across the country of which more than 200
clearing houses have been made operational during the last four years (2008-2012) alone.
2. However, there are still some locations/districts where a formal clearing house could not be opened due to the
presence of less than three banks or bank branches not being within commutable distances or the volume of
cheques being too low for a formal clearing house arrangement. In such locations, banks are following the practice
of bilateral exchange/counter presentation of such instruments for debit to the customers‟ account and thereafter
settlement of funds among themselves through various means. There is hence no uniform practice in the matter.
3. It has therefore been decided to issue formal guidelines to be observed by banks at such places where there is no
clearing house, as detailed in the annex I. Banks are advised to instruct their branches in such locations to adhere to
the said guidelines for faster realisation of cheques and better customer service.
4. Please acknowledge receipt and confirm compliance. The first such monthly compliance report may be submitted
on or before, October 12, 2012 in the format at annex II to our Regional Office under whose jurisdiction the bank
branches are located.
Yours faithfully
(Vijay Chugh)
Chief General Manager
Encl: as stated above
-26-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
Annex I
Guidelines for clearing of cheques where there is no formal clearing house
1. Banks, through mutual discussions, will put in place arrangements to ensure that the instruments drawn on the
other banks are delivered/exchanged at a mutually decided place and time every working day.
2. Ensure that the fate of the cheque is known on the same day and the return instruments are re-exchanged at a
mutually decided place and time.
3. Put in place arrangements for settling the realisation proceeds through cash, transfer etc.
4. Presenting Bank should afford shadow credit to the presenting customers' account on the same day of settlement
and allow the customer to make use of the clearing credit as per the Cheque Collection Policy (CCP) of the bank.
Annex II
Statement showing the details of instruments settled through bilateral exchange for the month of
(to be submitted by banks participating in such arrangements)
To The Regional Director, Reserve Bank of India, National Clearing Cell ………….
1.
Name of the bank
2.
Name of District
3.
No. of branches
4.
Name of the other bank with which exchanged
5.
Daily average volume of cheques exchanged
6.
Daily average value of cheques
Signature of the Branch Manager)
(We confirm that cheques are exchanged physically on the day or next day and settlements are carried on the same
day of exchange)
Date:
(Signature of the Branch Manager)
-27-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
RBI/2011-12/560
DPSS.CO.CHD.No. / 2080 / 03.01.03 / 2011-12
May 11, 2012
The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs / UCBs /
State Co-operative Banks / District Central Co-operative Banks/Local Area Banks
Madam / Dear Sir,
Review of Service Charges for Cheque Collection –
Outstation and Speed Clearing
Please refer to our circulars DPSS.CO.No.611 / 03.01.03(P) / 2008-09 dated October 8, 2008 and DPSS.CO.No 829 /
03.01.03(SC) / 2008-09 dated November 17, 2008 in terms of which, the charges for Outstation Cheque Collection
and cheques collected under the Speed Clearing arrangement (leveraging the CBS platform) were mandated by the
Reserve Bank of India.
2. In terms of our circular DPSS.CO.CHD.No. 1671 / 03.06.01 / 2010-11 dated January 19, 2011, freedom was
accorded to banks to determine collection charges for cheques valuing above Rs. 1 lakh cleared through Speed
Clearing and Outstation Cheque Clearing mechanism subject to such charges being levied in a fair and transparent
manner. The term fair and transparent manner, inter-alia, included fixing the service charges on a cost-plus
basis and not on the basis of an arbitrary percentage to the value of the instrument as advised in paragraph 6(b) of
the said circular.
3. However, instances of banks levying charges as an arbitrary percentage to the value of the instrument, contrary
to the instructions issued in the circular have been brought to our notice. Such practices are in violation of
instructions issued under Section 18 of the Payment and Settlement Systems Act 2007.
4. Banks, which have fixed their service charges for out-station/speed clearing for instruments valuing above Rs. 1
lakh as percentage to the value of instruments are, therefore, advised to review the same and fix the charges on a
cost-plus basis.
5. Banks may note to ensure that collection charges fixed for instruments valuing above Rs. 1 lakh is lower under
Speed Clearing vis-a-vis Out-station Cheque Collection as advised in paragraph 6(d) of our circular dated January
19, 2011 so as to encourage the use of Speed Clearing.
6. The updated service charge structure may be incorporated in the Cheque Collection Policy (CCP) and customers
notified accordingly. The revised rates may also be placed on the bank's web site and a copy thereof may be
submitted to us..
7. Please acknowledge receipt and confirm compliance.
Yours faithfully
(Vijay Chugh)
Chief General Manager
-28-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
CUSTOMS 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)
Notification No. 30/2012-Customs
New Delhi, dated the 8thMay, 2012
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. 39/96-Customs, dated the 23rd July, 1996, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 291(E), dated the 23rd July, 1996, namely:In the said notification, after the Table, the following shall be inserted, namely:“2. Notwithstanding anything contained herein above, the exemption from whole of the additional duty leviable
thereon under section 3 of the said Customs Tariff Act shall not apply to the following goods, namely:(i) Hand held Metal detector (ii) Postal Bomb detector (iii) Explosive Container (iv) Portable or Fixed Door frame
Metal detector, (v) Deep search Metal or Mine detector (vi) Mine impactor (vii) Mine prodder ( non-magnetic) and
(viii) Under Vehicle search Mirrors.”
[F.No.334/1/2012 –TRU]
(Sanjeev Kumar Singh)
Under Secretary to the Government of India
Note. - The principal notification No.39/1996-Customs, dated the 23rd July, 1996 was published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. 291(E), dated the 23rd July, 1996 and was last amended vide
notification No.11/2012-Customs, dated the 17th March, 2012 which was published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i), vide number G.S.R. 184 (E), dated 17 th March, 2012.
-29-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
[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. 31/2012-Customs
New Delhi, the 8th May, 2012
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, on 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. 12/2012-Customs, dated the 17th March, 2012 which was published in the Gazette of
India, Extraordinary, vide G.S.R. 185(E) dated the 17 th March, 2012, namely: In the said notification, in the Table,
i. against S. No. 187, for the entry in column (2), the entry “2905 43 00, 2905 44 00, 3301, 3501, 3502, 3503, 3504, 3505,
3809 10 00, 3823 11 11, 3823 11 12, 3823 11 19” shall be substituted;
ii. for S. No. 234 and the entries relating thereto, the following shall be substituted, namely:-
“234.
39, 72 and
81
The
following
goods,
for
the
manufacture
oforthopaedic implants
falling under sub-heading 9021 10,
namely:(i) Special grade stainless steel;
(ii) Titanium alloys;
(iii) Cobalt-chrome alloys;
Nil
Nil
Nil
Nil
Nil
Nil
5
5
5
(iv) High-density polyethylene.
Nil
-
5”
iii. for S. No. 260 and the entries relating thereto, the following shall be substituted, namely:-
“260.
47
Pulp of wood or of other fibrous
cellulosic material (excluding rayon
grade wood pulp) when used for the
manufacture of the following, namely:(i) newsprint;
(ii) paper and paperboard;
(iii) adult diapers.
Nil
Nil
Nil
-
5 and 25
5
5”
(iv) against S. No. 300, for the entry in column (4), against item(1) and (2), the entry “10%” shall be substituted;
(v) after S. No. 318 and the entries relating thereto, the following shall be inserted, namely:-30-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
“ 319
28, 29, 38,
39, 70, 74,
76
Goods specified at S. Nos. 7 and 18of
the notification of the Government of
India in the Ministry of Finance
(Department of Revenue), No.25/1999Customs, dated the 28thFebruary, 1999
[G.S.R 161(E), dated the 28th February,
1999]
-
Nil
5”
(vi) against S. No. 432, in column (3), for the figure and word “20 inches”, the figure and word “19 inches” shall be
substituted;
(vii) in the proviso, clause (c ) and the entries relating thereto shall be omitted.
[F. No. 334/1/2012-TRU]
[Sanjeev Kumar Singh]
Under Secretary to the Government of India
Note.- The principal notification No.12/2012-Customs, dated the 17th March, 2012 was published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 185(E) dated the 17 th March, 2012, which
has been last amended vide notification No. 26/2012-Customs, dated the 18th April, 2012, published in the Gazette
of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 305(E) dated the 18 th April, 2012.
-31-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
[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. 32/ 2012 - Customs
New Delhi, dated the 8th May, 2012
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, on 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.21/2012-Customs dated the 17th March, 2012 published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 194 (E), dated the 17 th March, 2012, namely:In the said notification,I.
in the proviso, for condition numbers (i) and (ii), the following shall be substituted, namely:(i)
the State of destination namely the State where the goods are intended to be taken immediately after
importation whether for sale or for distribution on stock transfer basis; and
(ii)
his VAT (Value Added Tax) registration number or Sales Tax registration number or Central Sales Tax
registration number, as the case may be, in the said State.;
II.
in the Table, against S. No. 14, in the entry in column (3), for the words “solar thermal power”, the words
“solar power” shall be substituted.
[F.No. 334/1/2012-TRU]
(Sanjeev Kumar Singh)
Under Secretary to Government of India
Note.- The principal notification No. 21/2012-Customs dated the 17th March, 2012, was published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 194 (E), dated the 17 th March, 2012 and
was last amended by notification No. 29/2012-Customs dated the 30th April, 2012 published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 328 (E), dated the 30th April, 2012.
-32-
8/3, 2nd Floor, W.E.A, Karol Bagh, New Delhi-110005
63/12, 1st Floor, Main Rama Road, New Delhi - 110015
Circular No. 13/2012-Customs
F. No. 528/21039/08-Cus/ICD
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
***
New Delhi, dated the 8th May, 2012
To
All Chief Commissioners of Customs/ Customs (P),
All Chief Commissioners of Customs & Central Excise,
All Director Generals/Chief Departmental Representatives (CESTAT),
All Commissioners of Customs / Customs (P), and
All Commissioners of Customs & Central Excise.
Sir/Madam,
Subject: Enforcement of Intellectual Property Rights on imported goods - Clarification on the issue of parallel
imports – regarding.
***
I am directed to invite your attention to the Notification No.51/2010-Customs (N.T.) dated 30.6.2010 and
Board‟s Circular No. 41/2007-Customs dated 29.10.2007 prescribing certain conditions and procedures in
implementation of Intellectual Property Rights (IPR) such as trade mark, design, patent, geographical indication
and copyright under the IPR (Imported Goods) Enforcement Rules, 2007. In this regard, certain representations
have been received in the Board from the trade as well as the field formations seeking clarification on the matter of
import of original/genuine products (not counterfeit or pirated) which are sold/ acquired legally abroad and
imported into the country, by persons other than the intellectual property right holder without
permission/authorisation of the IPR holder, which in trade parlance is known as „parallel imports‟.
2.1.
It may be recalled that the notification No.51/2010-Customs (N.T.) dated 30.6.2010 prohibits import of goods
for sale or use in India, which are covered under specified legal provisions of the following statutes that regulate
products with false trade mark, fraudulent or obvious imitation of design, patent obtained without consent, false
Geographical indication or product which infringe registered copyright etc.
(i) Trade Marks Act, 1999
(ii) Designs Act, 2000
(iii) Patents Act, 1970
(iv) Geographical Indications of Goods (Registration and Protection) Act, 1999 and
(v) Copyright Act, 1957.
2.2.
In terms of the legal provisions under the IPR (Imported Goods) Enforcement Rules, 2007 read with
notifications and circulars issued in this regard, the determination of the fact that whether particular consignment
of imported goods infringes the rights of the IPR holder would be done by the Customs authorities taking into
account the provisions of the aforesaid parent Acts.
2.3.
It may also be noted that all infringements and consequential offences stated in the aforesaid parent Acts is
not limited to import of goods, as the scope of these Acts are wide, interalia, covering enforcement of the legal
provisions of these Acts in the country. Hence, it may be noted that the prohibition of imported goods for the
purpose of protecting intellectual property rights as specified under Notification No.51/2010-Customs (N.T.), does
not relate to all infringements under the parent Acts but only to those imports that infringe the specific provisions
of various parent Acts governing IPR, mentioned in the notification No.51/2010-Customs (N.T.).
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2.4.
To illustrate, in case of the Trade Marks Act, 1999, prohibitions against infringement of trade marks on
import of goods intended for sale or use in India, that attract the provisions IPR (Imported Goods) Enforcement
Rules, 2007, have been given in para (i) and (ii) of aforesaid notification, viz,:
(i)
imported goods having applied thereto a false trade mark, as specified in section 102 of the Trade Marks
Act, 1999 [for para (i)]
(ii)
imported goods having applied thereto any „false trade description‟ within the meaning of definition
provided in clause (i), in relation to any of the matters connected to description, statement or other indication direct
or indirect of the product but not including those specified sub- clauses (ii) and (iii) of clause (za), of sub-section (1)
of section 2 of the Trade Marks Act, 1999[for para (ii)].
Thus, the prohibition under the para (i) and (ii) of aforesaid Notification No.51/2010-Customs (NT) would be
applicable only when the imported goods fall within the purview of the above referred provisions of Trade Marks
Act, 1999.
3.
In this context, the issue of permitting import of original/genuine products (not counterfeit or pirated) which
are sold/ acquired legally abroad and imported into the country, by persons other than the intellectual property
right holder without permission/ authorisation of the IPR holder, known in the trade as „parallel imports‟ was
referred to the administrative Ministry i.e., Department of Industrial Policy and Promotion (DIP&P), Ministry of
Commerce & Industries, seeking their clarification.
4.
In this regard, the Department of Industrial Policy and Promotion which is nodal authority for all matters
relating to (i) Trade Marks Act, 1999 (ii) Patents Act, 1970 and (iii) Designs Act, 2000 has,interalia, stated that:
(i) Section 107A (b) of the Patents Act, 1970 provides that importation of patented products by any person from a
person who is duly authorised under the law to produce and sell or distribute the product shall not be considered
as an infringement of patent rights. Hence, in so far as Patents are concerned, Section 107A (b) provides for parallel
imports.
(ii) Section 30(3)(b) of the Trade Marks Act, 1999 provides that where the goods bearing a registered Trade Mark are
lawfully acquired, further sale or other dealing in such goods by purchaser or by a person claiming to represent him
is not considered an infringement by reason only of the goods having been put on the market under the registered
Trade Mark by the proprietor or with his consent. However, such goods should not have been materially altered or
impaired after they were put in the market.
(iii) In so far as designs are concerned, it is clarified that parallel imports are not allowed as indicated by Section 22
(1)(b) of the Designs Act, 2000.
(iv) As regards geographical indications, it is stated that there are no identical or similar provisions as in
Section 107A(b) of Patents Act, 1970 on parallel imports under the Geographical Indications of Goods (Registration
and Protection) Act, 1999. The said Act does not address the issue of parallel import at all. Hence, parallel imports
are not covered under this Act.
(v) As regards „copyright‟ since the clarification is awaited from the nodal authority i.e., Department of Higher
Education, the field formations may follow the extant provisions of the Copyright Act, 1957 until further
instructions are issued in this regard.
5.1.
In view of the above, the field formations are directed to decide cases of import of „parallel imports‟ on the
basis of aforesaid legal provisions of parent Acts, the provisions of Notification No. 51/2010-Customs(N.T.) dated
30.6.2010 and the clarification given by the administrative Ministry as detailed in para 4 above.
6.
The above instructions may be brought to the notice of all concerned immediately and wide publicity of this
circular may given through appropriate Public Notice.
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7.
Receipt of this Circular may kindly be acknowledged.
(M. Satish Kumar Reddy)
Director (ICD)
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EXCISE 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)
New Delhi, the 8th May, 2012
Notification No. 23 /2012-Central Excise
G. S. R. (E).-In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act,
1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby
exempts goods of the description specified in column (3) of the Table hereto annexed and falling within the
Heading of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Excise
Tariff Act), as are given in the corresponding entry in column (2) of the said Table, from so much of the duty of
excise leviable thereon under the said First Schedule, as is in excess of the amount calculated at the rate specified in
the corresponding entry in column (4) of the said Table, and subject to the relevant conditions, if any, specified in
the corresponding entry in column (5) of the Table aforesaid:
Table
S.No.
(1)
1.
2.
Heading
of the
First
schedule
(2)
7113
8607
Description of goods
Rate
Condition
(3)
Articles of jewellery
All goods
(4)
Nil
Nil
(5)
If,(i) manufactured by a factory belonging to the
Central Government; and
(ii) the said goods are intended for use by any
department of the Central Government
[F.No.334/1/2012-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
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[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)
New Delhi, dated 8th May, 2012
Notification No. 24 /2012 –Central Excise
G.S.R. (E).-In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act,
1944 (1 of 1944), 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 notification of the Government of India, in the Ministry of Finance
(Department of Revenue), No. 12/2012-Central Excise, dated the 17thMarch, 2012, published in the Gazette of India,
Extraordinary vide number G.S.R.163 (E) dated 17 th March, 2012, namely:In the said notification, in the Table,(i)
after Sl. No. 70 and the entries relating thereto, the following shall be inserted, namely:(1)
(2)
(3)
“70A
2710 12 11, 2710 12 12,
All goods, other than goods at serial
2710 12 13, 2710 12 20,
No. 70
(4)
(5)
14%
-”;
2710 12 90
(ii)
after Sl. No. 78 and the entries relating thereto, the following shall be inserted, namely:(1)
(2)
(3)
“78A
2710 20 00
All goods
(4)
(5)
14%
-”;
(iii) against Sl. No. 136, for the entry in column (2), the entry “3304 20 00,3304 99 40 and 3307 90 ” shall be
substituted;
(iv) after Sl. No. 172 and the entries relating thereto, the following shall be inserted, namely:(1)
“172A
(2)
54 or
55
(3)
Polyester staple fibre or polyester filament
yarn, manufactured from plastic scrap or
plastic
waste
including
waste
polyethylene terephthalate bottles
(4)
Nil
(5)
-”;
(v) against Sl. No. 181, for the entries in column (3), the following entries shall be substituted, namely:(1)
181
(2)
64
(3)
(4)
(5)
Footwear-chappal (sole without upper, to be
attached to the foot by thongs passing over the instep but not even round the ankle) commercially
known as hawai chappal, of material other than
leather of retail sale price not exceeding ` 500 per
Nil
15”;
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pair.
Explanation.-The expression “retail sale price” shall
have the same meaning as specified in Sl. No. 180
(vi)
against Sl. No. 290 and 291 for the entries in column (4) , the entry „14%‟ shall be substituted;
(vii)
for Sl. No. 292 and the entries relating thereto, the following shall be substituted, namely:(1)
(2)
(3)
(4)
(5)
(viii)
(ix)
“292
8706 00 49
Motor chassis for vehicles
of heading 8704 (petrol
driven)
fitted
with
engines, whether or not
with cab
14%
-”;
“292A
8706 00 29, 8706 00
42
All goods
14%
-”;
against Sl. No. 321, for the entry in column (2), the entry “85 or 94” shall be substituted;
against Sl. No. 325, for the entry in column (3), against item (iii) the following shall be substituted namely:“(iii) inks and parts of refills for ball point pens”
[F. No. 334/1 / 2012 – TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note: The principal notification No.12/2012-Central Excise dated the 17th March, 2012, published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.163 (E), dated the 17 th March, 2012.
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[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)
New Delhi, the 8th May, 2012
Notification No. 25/2012-Central Excise
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act,
1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the publicinterest 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. 10/1996-Central Excise, dated the 23rd July 1996, published in the Gazette of India
Extraordinary, vide number G.S.R.308 (E), dated the 23rd July, 1996, namely:In the said notification, in the TABLE, against S. No. 12, for the entry in column (3), the following entry shall be
substituted, namely:“Footwear and hawai chappal (other than of leather), that is
as hawai chappals, of retail sale price not exceeding Rs. 500 per pair”
to
say, chappals known
commercially
[F.N0.334/1/2012-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification No. 10/1996-Central Excise, dated the 23rd July 1996, published in the Gazette of India
Extraordinary, vide number G.S.R.308(E), dated the 23 rd July, 1996, was last amended vide notification No. 39/2011-Central
Excise, dated the 12th September, 2011, published vide number G.S.R. 673(E), dated the 12th September, 2011.
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[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)
New Delhi, the 8th May, 2012
Notification No. 26/2012-Central Excise
G.S.R.
(E).-In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act,
1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest 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. 15/2010-Central Excise, dated the 27th February, 2010, published in the Gazette of
India, Extraordinary vide number G.S.R. 117(E), dated the 27th February, 2010, namely:In the said Notification, for conditions (1) and (2), the following shall be substituted, namely:(1) an officer not below the rank of a Deputy Secretary to the Government of India, in the Ministry of New and
Renewable Energy recommends the grant of this exemption, indicating the quantity, description and specification
thereof and certifies that the goods are required for initial setting up of a solar power generation project or facility;
and
(2) the Chief Executive Officer of the project furnishes an undertaking to the Deputy Commissioner of Central
Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of
the manufacturer, to the effect that(i) the said goods will be used only in the said project and not for any other use; and
(ii) in the event of non-compliance of sub-clause (i), the Project Developer of such project shall pay the duty which
would have been leviable at the time of clearance of goods, but for this exemption.”;
[F. No. 334/1 /2012- TRU]
(Sanjeev Kumar Singh)
Under Secretary to the Government of India
Note: The principal notification No. 15/2010-Central Excise, dated the 27th February, 2010, was published in the Gazette of
India, Extraordinary; vide number G.S.R. 117(E), dated the 27th February, 2010.
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[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)
New Delhi, the 8th May, 2012
Notification No. 25/2012-Central Excise (N.T)
G.S.R.
(E).-In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and
section 94 of the Finance Act, 1994 (32 of 1994), the Central Government, hereby makes the following rules further
to amend the CENVAT Credit Rules, 2004, namely:1.
(1) These rules may be called the CENVAT Credit (Fifth Amendment) Rules, 2012.
(2)
Save as otherwise provided in these rules, they shall come into force on the date of their publication in
the Official Gazet
2.
In the CENVAT Credit Rules, 2004, in sub-rule (6) of rule 6,(A) in clause (iva), for the words and figures, “6/2006-Central Excise, dated the 1st March, 2006, number G.S.R.
96(E), dated the 1st March, 2006”, the words and figures “12/2012-Central Excise, dated the 17th March, 2012,
number G.S.R. 163(E), dated the 17th March, 2012” shall be substituted;
(B) in clause (vii), for the words and figures, “6/2006-Central Excise, dated the 1st March, 2006”, the words and
figures “12/2012-Central Excise, dated the 17th March, 2012” shall be substituted;
(C) after clause (vii) and the entries relating thereto, the following shall be inserted, namely:“(viii) supplies made for setting up of solar power generation projects or facilities”;
[F. No. 334/1/2012- TRU]
(Sanjeev Kumar Singh)
Under Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i),
vide notification No. 23/2004-Central Excise (N.T.), dated the 10th September, 2004 vide number G.S.R. 600(E),
dated 10th September, 2004 and was last amended vide notification No. 21/2012-Central Excise (N.T.), dated the
27th March, 2012, published vide number G.S.R. 253(E), dated the 27th March, 2012.
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SERVICE TAX UPDATES
Circular No. 158/9/ 2012 – ST
F.No 354/69/2012- TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Tax Research Unit
Room No 146, North Block, New Delhi
Dated : 8th May 2012
To
Chief Commissioner of Customs and Central Excise (All)
Chief Commissioner of Central Excise & Service Tax (All)
Director General of Service Tax
Director General of Central Excise Intelligence
Director General of Audit
Commissioner of Customs and Central Excise (All)
Commissioner of Central Excise and Service Tax (All)
Commissioner of Service Tax (All)
Madam/Sir,
Subject: - Clarification on Rate of Tax - regarding.
1.
The rate of service tax has been restored to 12% w.e.f. 1 st April 2012. Representations have been received
requesting clarification on the rate of tax applicable wherein invoices were raised before 1st April 2012 and the
payments shall be after 1st April 2012. Clarification has been requested in case of the 8 specified services provided
by individuals or proprietary firms or partnership firms, to which Rule 7 of Point of Taxation Rules 2011 was
applicable and services on which tax is paid under reverse charge.
2.
The rate of service tax prevalent on the date when the point of taxation occurs is rate of service tax applicable
on any taxable service. In case of the 8 specified services and services wherein tax is required to be paid on reverse
charge by the service receiver the point of taxation is the date of payment. Circular No 154/5/2012 –
ST dated 28th March 2012 has also clarified the same. Thus in case of such 8 specified services provided
by individuals or proprietary firms or partnership firms and in case of services wherein tax is required to be paid on
reverse charge by the service receiver, if the payment is received or made, as the case maybe, on or after 1 st April
2012, the service tax needs to be paid @12%.
3.
The invoices issued before 1st April 2012 may reflect the previous rate of tax (10% and cess). In case of need,
supplementary invoices may be issued to reflect the new rate of tax (12% and cess) and recover the differential
amount. In case of reverse charge the service receiver pays the tax and takes the credit on the basis of the tax
payment challan. Cenvat credit can be availed on such supplementary invoices and tax payment challans, subject to
other restrictions and conditions as provided in the Cenvat Credit Rules 2004.
4.
Trade Notice/Public Notice may be issued to the field formations accordingly.
5.
Please acknowledge the receipt of this circular. Hindi version to follow.
(Dr. Shobhit Jain)
OSD, TRU
Fax: 011-23093037
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DGFT UPDATES
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
Udyog Bhawan
Notification No.115 (RE-2010) /2009-2014
New Delhi, the 7th May, 2012
Subject:
Amendment in paragraph 6.9 of FTP.
S.O (E) :
In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act,
1992, as amended, read with paragraph 1.3 of the Foreign Trade Policy, 2009-2014, the Central Government hereby
makes the following amendment in Foreign Trade Policy, 2009-2014 (RE 2010).
2.
In existing paragraph 6.9, the sentence, “Following supplies effected from EOU/EHTP/STP/BTP units to
DTA will be counted for fulfillment of positive NFE:” shall be substituted by the sentences, “Following supplies
effected from EOU/EHTP/STP/BTP units will be counted for fulfillment of positive NFE. Such supplies shall not include
“marble”, except if such supply of marble is an inter unit supply as provided at paragraph (c) below:”
3.
Existing paragraph and amended paragraph are given as follows:
Existing paragraph
Other Supplies in DTA
6.9 : “Following supplies effected from EOU/EHTP/STP/BTP Units to DTA will be counted for
fulfillment of positive NFE:”
Amended paragraph
Other Supplies
4.
6.9 : “Following supplies effected from EOU/EHTP/STP/BTP units will be counted for fulfillment
of positive NFE. Such supplies shall not include “marble”, except if such supply of marble
is an inter unit supply as provided at paragraph (c) below:”
Effect of this amendment :
This amendment in paragraph amplifies that EOUs cannot supply marble in Domestic Tariff Area under Paragraph
6.9 of FTP, except under Paragraph 6.9(c) of FTP.
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: dgft@nic.in
(Issued from F.No. 01/92/180/79/AM12/PC VI)
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(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
Notification No 116 (RE – 2010)/2009-2014
New Delhi, Dated : 8 May, 2012
Subject:- Export Policy of Onions.
S.O. (E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992
(No. 22 of 1992) read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government amends the
column “Nature of Restriction” in Notification No.75(RE-2010)/2009-14 dated 20.09.2011 with immediate effect
2. Export of onions will be allowed without any MEP(Minimum Export Price) for the period upto 2nd July 2012.
Any consignment for which LEO (Let Export order) is not issued till midnight of 2 nd July 2012, will be allowed for
export at applicable MEP, which will be as per notification to be issued subsequently.
3. Each of the 13 STE‟s designated for export of onion will send a daily report about the quantity registered by
them to DGFT addressed to the e-mail onionexport-dgft@nic.in .The daily report email will have the subject header
“Name of STE /quantity allowed/date of issue of NOC” and will specify:
(i) Name of applicant
(ii) Quantity allotted
(iii) IEC number of applicant
4. Effect of this notification:
The export of onions is allowed without any MEP upto 2nd July 2012 .
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: dgft@nic.in
(Issued from File No. 01/91/180/922/AM‟08/PC-III/Export Cell)
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PS.: This compilation provides for the updates available on respective websites till
May 12th, 2012
DISCLAIMER
The materials and information contained herein are a compilation of relevant news update from various
official websites. This effort is being made by B Mathur & Co., Company Secretaries, to provide general
information on a particular subject and is not exhaustive treatment of such subjects. It should neither be
regarded as comprehensive nor sufficient for taking decisions, nor should it be used in place of professional
advice. This update is for private circulation only.
Although our endeavor is to provide accurate & timely information, there can be no guarantee as
of the date it is received or that it will continue to be accurate in future. No representation or warranty
(express or implied) is given as to the accuracy or completeness of the information contained in this
presentation, as it is just a compilation done with an aim to provide assistance and saving time of
professionals.
Edited By:
Compiled By:
Ms. Nikita Arora
Ms. Sonal Bajaj
Ms. Preeti Singh
Mr. Saurabh Saxena
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