In accordance with the aforementioned circulars dated May 29, 2000 and October 16, 2000, out of the 280 scrips required to establish connectivity with both the depositories by March 26, 2001, 129 companies have now established connectivity.
Circular No.574/11/2001-CX A Divisional Assistant Commissioner had passed an order in original dated 16.2.1993 classifying the product in question under sub heading No.3823.00 on the grounds that mixtures of Fluron-11 and Fluron-12 are not separate chemically defined organic compounds. The Audit objected the classification on the grounds that the product are classified under sub-heading No.2903.10 as on mixing of these two compounds
This is with reference to the circular no. SMDRP/Policy/cir-25/2001 dated March 28, 2001, where in we had intimated the revised slabs for incremental ALBM /BLESS and the incremental MCFS margins to be levied on the gross positions.
Circular No.20/2001 30th March, 2001 F.No.305/46/2001-FTT Government of India Ministry of Finance Department of Revenue (Central Board of Excise and Customs) Subject : Import of rough diamonds and other precious or semi-precious stones under various licensing schemes of the Exim Policy in terms of notification No35/2001-Cus. dated 30.3.2001 Procedures – reg. I am directed to invite your attention to notification No. 27/2001-Cus, dated 05-03-2001, which was issued to exempt rough diamonds and other precious or semi precious stones from customs duty when imported under various licensing schemes provided in Chapter 8 of the EXIM Policy. Since then, several references have been received from the Department of Commerce (DOC) and Gem & Jewellery Export Council bringing to our notice the difficulties being faced by trade in complying with various provisions of the notification. The difficulties cited are basically with reference to execution of bank guarantee, maintenance of accounts and monitoring of export obligation. It has also been stated that raw pearls, natural/cultured, which are importable against the REP licence in terms of para 8.2/8.38 of Policy read with Appendix 30A and 30B of the Hankbook, should be included in the notification for the purpose of enjoying duty free import facility. Similarly, the REP licences issued under para 8.13(a) of the Policy and para 8.74 of the Handbook have been left out from the purview of notification inadvertently. The DOC has requested for inclusion of these licences in the notification. As various diamond, gem & jewellery export promotion schemes of the EXIM Policy are likely to continue after 1.4.2001, the DOC has requested that the validity period of the notification should be extended so as to impart predictability and continuity to the Policy. 2.The matter has been examined by the Ministry. After consideration of the issue in all its aspects, a new notification (No. 35/2001-Cus. dated 30th March,2001) has been issued in supersession of notification No. 27/2001-Cus. dated 5.3.2001. This notification exempts raw pearls, natural/cultured, rough diamonds and other precious or semi-precious stones from customs duty when imported under various licencing schemes provided in Chapter 8 of the EXIM Policy. It may be noted that this notification includes replenishment licences issued under para 8.13 (a) of the Policy and para 8.74 of the Handbook, which were earlier not covered by notification No. 27/2001-Cus. Further, there is no validity period prescribed under the new notification. The other salient features of the notification are as discussed below : Imports under Replenishment Licences : 3.The REP Licences are issued after export proceeds have been realised. It is a facility given to exporters to replenish their inputs. The licence does not carry any export obligation. In view of this, it has been decided that there will not be any requirement for the parties importing raw pearls, diamonds and other precious or semi-precious stones against replenishment licences to give any bond/ bank guarantee / legal undertaking to the Customs or for that matter to maintain any accounts. Imports under Diamond Imprest Licences : 4.Diamond Imprest Licences are issued in advance for import of rough diamonds. The licences carry an export obligation. The export obligation against each consignment is required to be fulfilled within a period of 5 months from the date of clearance of such consignment through Customs. The export obligation is fixed according to the formula laid down in para 8.12 of the Handbook. Para 8.19 of the Handbook provides for extension of export obligation period in certain situations on payment of penalty. Para 8.20 of the Handbook provides a procedure for regularisation of bonafide defaults. 5.It may be noted that under the present Policy there is no mechanism for recovering the duty from the defaulting importers in case of their failure to fulfil the export obligation. It is for this reason that a provision was made for execution of bond and furnishing a bank guarantee in notification No.27/2001-Cus. Considering the point made by the DOC and exporting trade that execution of bank guarantee would increase the transaction cost of exports, and taking into account the waiver from bank guarantee requirement for larger exporters already permitted under advance licences, it has been decided that in case of importers having average turnover of Rs.2 crores and above during the last financial year a Bond may be accepted without insisting for any Bank Guarantee. The Bond may be taken in the same format as given in Appendix 24 B of the Handbook. Suitable modifications may be made to provide therein the conditions of the notification. As for other categories of importers i.e. those who do not fulfil the above criteria, apart from Bond, a Bank Guarantee may also be taken at 50% of the duty saved. For the purpose of verification export figures of an exporter, a certificate from the regional licencing authority, or a statement of export of cut & polished diamonds made during the last financial year duly certified by a Chartered Accountant may be accepted. 6.Further, the exporters importing rough diamonds under Diamond Imprest Licences shall not be required to maintain any accounts specifically for the Customs. The procedure as being followed by DGFT for monitoring discharge of export obligations by the Diamond Imprest Licence holders shall continue to be followed. However, the licence holders will furnish a copy each of the statement/return being furnished to DGFT giving particulars of imports and discharge of export obligation, licence-wise etc. For discharge of Bond/Bank Guarantee executed with Customs, the licence holder may be asked to produce a certificate from DGFT to the effect that export obligation against the particular Diamond Imprest Licence has been fulfilled. In case of defaults in export obligation, the duty may be demanded in proportion to the shortfall and not on the total imports as provided in the exemption notification. Imports under Bulk Licences : 7.The bulk licences are issued for import of rough diamonds for supply of such diamonds to the holders of valid REP/Diamond Imprest Licence, EOU/EPZ/SEZ units or to re-export the same. The supply/export of such diamonds is required be completed within a period of 12 months from the date of issuance of licence or within a period of 3 months from the date of import, whichever is later. As per para 8.25 of the Handbook the Bulk Licencee is required to furnish to the licencing authority the proof of supplying rough diamonds to the REP/Diamond Imprest licencee and to the EOU/EPZ/SEZ units within the prescribed period. The Bulk Licencee is required to submit the details of such supplies alongwith the original proforma signed by the licensing authority. The licensing authority then compares such original with the proforma retained by it and thereafter redeems the case provided the Bulk Licensee has supplied the rough diamonds upto the value of rough diamonds imported under the Bulk Licence. If the Bulk licensee fails to supply rough diamonds within the prescribed period, he is required to surrender REP Licences of S.No.2.1 to 2.6 of Appendix 30A for a value twice the value of such rough diamonds imported under the Bulk Licence. 8 As rough diamonds are imported duty free which otherwise carry a duty of 5%, it is the responsibility of the Customs to ensure that the goods are properly accounted for. To safeguard the interests of revenue, a condition has been put in the notification that the Bulk Licence holder will be liable to pay duty on such quantity of diamonds as are not accounted for by him. Therefore, before allowing imports under Bulk Licences, a Bond may be taken from the licence holder on the lines given in Appendix 24 B of the Handbook. Bank Guarantee may be waived as all Bulk Licence holders have very large turnover. No separate account will be required to be maintained specifically for the Customs. The Bulk Licence holders will however furnish a copy each of statements and other documents presently being given to DGFT, to the Customs. For release of Bond, the licencee shall be required to produce a certificate from DGFT to the effect that the obligation against a particular Bulk Licence has been fulfilled. Maintenance of Accounts: 9. As for maintenance of accounts, it is clarified that the trade may not be asked to maintain any accounts for Customs purposes and that the present system under which their responsibilities/ obligations have been fixed under the Exim Policy should be allowed to continue. For monitoring the export obligation for Imprest Licencees and fulfillment of obligation of accountal in stipulated period by Bulk Licencees, some simple computerised account of all these imports will have to be maintained in the Customs Houses, licence-wise.
It has now been decided that the incremental MCFS /incremental ALBM/ incremental BLESS margin would be calculated and 7collected on a gross basis at client level based on the data generated from the system.
When trading in an equity/equity related security (such as convertible debentures, equity warrants, etc.) in a month is both less than Rs. 5 lacs and the total volume is less than 50,000 shares.
We are enclosing a copy of the Gazette notification dated January 23, 2001 pertaining to valuation and provisioning of non-performing assets (NPAs) for your information.
Content of this Circular may be brought to the notice of the concerned officers and a watch be kept to ensure that attempt is not made to get away with unwarranted export benefits by misdeclaring nature & composition of Drugs / formulations.
Please find enclosed a copy of the SEBI (Stock Brokers and Sub-Brokers) (Second Amendment) Regulations, 2000 dated 30th August, 2000.
Circular No. 7 of 2001-Income Tax In view of the occurrence of unforeseen national calamities of immense magnitude like the Gujarat earthquake employees of the Central Government, State Government, Public Sector Undertakings, Private Sector Companies and Corporations, and local authorities are making donations to the Prime Minister’s Relief Fund, the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund
