Notifications & Circulars
Ministry of Commerce and Industry
17.08.2021
Customs
Scheme Guidelines for remission of duties and taxes on exported products
MANU/DGFT/0105/2021
1. In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy 2015-20, the Central Government hereby makes the following amendments in the Foreign Trade Policy 2015-20 with immediate effect:
2. A sub-para (e) is inserted in para 4.01 of the Foreign Trade Policy 2015-20 as below:
"(e) Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) notified by Department of Commerce and administered by Department of Revenue.
3. The following is also added in the chapter 4 of the Foreign Trade Policy 2015-20:
SCHEME FOR REMISSION OF DUTIES AND TAXES ON EXPORTED PRODUCTS (RoDTEP)
4.54 Scheme Objective and Operating Principles
i. The Scheme's objective is to refund, currently un-refunded:
a. Duties/ taxes / levies, at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and
b. Such indirect Duties/ taxes / levies in respect of distribution of exported product.
ii. The rebate under the Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.
iii. The determination of ceiling rates under the Scheme will be done by a Committee in the Department of Revenue/ Drawback Division with suitable representation of the DoC/DGFT, line ministries and experts, on the sectors prioritized by Department of Commerce and Department of Revenue.
iv. The overall budget/outlay for the RoDTEP Scheme would be finalized by the Ministry of Finance in consultation with Department of Commerce (DoC), taking into account all relevant factors.
v. The Scheme will operate in a Budgetary framework for each financial year and necessary calibrations and revisions shall be made to the Scheme benefits, as and when required, so that the projected remissions for each financial year are managed within the approved Budget of the Scheme. No provision for remission of arrears or contingent liabilities is permissible under the Scheme to be carried over to the next financial year.
vi. The sequence of introduction of the Scheme across sectors, prioritization of the sectors to be covered, degree of benefit to be given on various items within the rates set by the Committee and within a ceiling as may be prescribed, on the per item/total overall benefit amount permissible, within the overall budget/ outlay finalized, will be decided and notified by the Department of Commerce (DoC) in consultation with Department of Revenue.
vii. Under the Scheme, a rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product, wherever required, on export of items which are categorized under the notified 8 digit HS Code. However, for certain export items, a fixed quantum of rebate amount per unit may also be notified. Rates of rebate / value cap per unit under RoDTEP will be notified in Appendix 4 R. In addition to necessary changes which may be brought in view of budget control measures as mentioned above, efforts would be made to review the RoDTEP rates on an annual basis and to notify them well in advance before the beginning of a financial year.
viii. The rebate allowed is subject to the receipt of sale proceeds within time allowed un der the Foreign Exchange Management Act, 1999 failing which such rebate shall be deemed never to have been allowed. The rebate would not be dependent on the realization of export proceeds at the time of issue of rebate. However, adequate safeguards to avoid any misuse on account of non-realization and other systemic improvements as in operation under Drawback Scheme, IGST and other GST refunds relating to exports would also be applicable for claims made under the RoDTEP Scheme.
ix. Mechanism of Issuance of Rebate: Scheme would be implemented through end to end digitization of issuance of rebate amount in the form of a transferable duty credit/electronic scrip (e-scrip), which will be maintained in an electronic ledger by the Central Board of Indirect Taxes & Customs (CBIC). Necessary rules and procedure regarding grant of RoDTEP claim under the Scheme and implementation issues including manner of application, time period for application and other matters including export realization, export documentation, sampling procedures, record keeping etc. would be notified by the CBIC, Department of Revenue on an IT enabled platform with a view to end to end digitization. Necessary provisions for recovery of rebate amount where foreign exchange is not realized, suspension/ withholding of RoDTEP in case of frauds and misuse, as well as imposition of penalty will also be built suitably by CBIC.
x. The Scheme will take effect for exports from 1st January 2021. However for exports made by categories under Para 4.55 (x), (xi) and (xii), the implementation date will be decided later as per provisions of Para 4.55B.
Tags : Guidelines Remission Duties
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Ministry of Commerce and Industry
17.08.2021
Commercial
Procedure and criteria for submission and approval of applications for export of COVID-19 Rapid Antigen Testing kits
MANU/DGFT/0106/2021
1. Reference is invited to DGFT Notification No. 18/2015-20 dated 16.08.2021 restricting the export of COVID-19 Rapid Antigen Testing kits.
2. The quota for export of COVID-19 Rapid Antigen Testing kits has been fixed for the month of July, August and September, 2021.
3. Exporters are requested to apply for export license by filing applications online through DGFT's ECOM system for Export authorizations (Non-SCOMET Restricted items)-Please refer Trade Notice No. 50 dated 18.03.2019. There is no need to send any hard copy of the application via mail or post.
4. Online applications for export of "COVID-19 Rapid Antigen Testing Kits" for the above said quantity may be applied from 20th August to 30th August, 2021.
5. All the applications will be examined as per the Para 2.72 of Handbook of procedures.
6. Validity of the export license will be for 6 months only.
7. The following eligibility criteria will be applicable for consideration of applications:
Documentary proof of manufacturing "COVID-19 Rapid Antigen Testing Kits".
The documents to be submitted may include the following:
Copy of Purchase order/Invoice
Undertaking duly signed by the authorized signatory in the company letter head to be submitted by the manufacturer certifying that as on date, all domestic commitments/orders have been fulfilled.
8. All the documents must be duly self-attested by the authorized person of the firm.
9. All the relevant documents as specified above must be submitted along with the application to verify the eligibility criteria. Incomplete applications will not be considered for any allocation. Any application received through email or submitted outside the timeline specified will not be considered.
10. This issues with the approval of Competent Authority.
Tags : Criteria Approval Antigen Testing kits
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Reserve Bank of India
17.08.2021
Banking
Reserve Bank of India introduces the Financial Inclusion Index
MANU/RPRL/0117/2021
As announced in the Statement on Developmental and Regulatory Policies in the first Bi-monthly Monetary Policy Statement for 2021-2022 dated April 07, 2021, the Reserve Bank of India has constructed a composite Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across the country.
The FI-Index has been conceptualised as a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with Government and respective sectoral regulators. The index captures information on various aspects of financial inclusion in a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion. The FI-Index comprises of three broad parameters (weights indicated in brackets) viz., Access (35%), Usage (45%), and Quality (20%) with each of these consisting of various dimensions, which are computed based on a number of indicators.
The Index is responsive to ease of access, availability and usage of services, and quality of services, comprising in all 97 indicators. A unique feature of the Index is the Quality parameter which captures the quality aspect of financial inclusion as reflected by financial literacy, consumer protection, and inequalities and deficiencies in services.
The FI-Index has been constructed without any 'base year' and as such it reflects cumulative efforts of all stakeholders over the years towards financial inclusion. The annual FI-Index for the period ending March 2021 is 53.9 as against 43.4 for the period ending March 2017. The FI-Index will be published annually in July every year.
Tags : Financial Inclusion Index Introduction
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Securities and Exchange Board of India
17.08.2021
Capital Market
Penalty for repeated delivery default
MANU/SDER/0010/2021
1. SEBI had stipulated delivery default norms vide Circular SEBI/HO/CDMRD/DRMP/CIR/P/2021/35 dated March 23, 2021. It is felt that there is a need to put in place a suitable deterrent mechanism to address instances of repeated delivery defaults. This is expected to further strengthen the delivery mechanism and ensure market integrity.
2. In view of the above, in consultation with Clearing Corporations (CCs), the following has been decided:
2.1. In the case of repeated default by a seller or a buyer, for each instance of repeated default, an additional penalty shall be imposed, which shall be 3 % of the value of the delivery default.
2.2. Repeated Default shall be defined as an event, wherein a default on delivery obligations takes place 3 times or more during a six months period on a rolling basis.
2.3. The penalty levied shall be transferred to Settlement Guarantee Fund (SGF) of the Clearing Corporation.
3. The circular shall be effective after one month from the date of issuance of the circular.
4. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
5. This circular is available on SEBI website.
Tags : Penalty Delivery Default
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Ministry of Finance
16.08.2021
Customs
De-notification of Inland Container Depots/Container Freight Stations/Air Freight Stations
MANU/CUCR/0021/2021
1. It has come to the notice of the Board that difficulties are being faced by the custodians of Inland Container Depots (ICDs) and Container Freight Stations (CFSs) when they intend to wind up the operations in the facility and approach Customs formations for de-notification of the same. Reportedly, there is inordinate delay in the de-notification in the absence of a specified procedure for de-notification. It is also reported that in such cases, the Customs field formations face challenges while ensuring timely payment of Cost Recovery Charges and disposal of un-cleared, seized and confiscated goods which are prerequisites for the de-notification.
2. The Board has examined the matter. The Circular No. 50/2020-Customs dated 05.11.2020 read with Circular No. 06/2021-Customs dated 22.02.2021 specifies the policy and guidelines for setting up of ICDs, CFSs and AFSs. Further, Circular No. 02/2021-Customs dated 19.01.2021 contains comprehensive guidelines in respect of posting of officers and staff on cost recovery basis and grant of exemption from payment of Cost Recovery Charges. In the context of de-notification of the ICDs/CFSs/AFSs, Circulars No. 50/2020-Customs dated 05.11.2020 and No. 02/2021-Customs dated 19.01.2021, inter alia, mention the following requirements:
Circular No. 50/2020-Customs dated 05.11.2020:
"7.3. The ICDs not meeting the minimum prescribed threshold performance for four consecutive financial years will be considered for de-notification by the Board based on the recommendation of the jurisdictional Commissioner of Customs. As regards CFSs, jurisdictional Commissioner can de-notify the facility if it failed to meet the prescribed minimum threshold performance for four consecutive financial years. In the case of AFSs, the Board may analyse the performance of the facility and may consider the de-notification wherever necessary, based on the recommendation of the jurisdictional Commissioner of Customs.
7.4. Jurisdictional Zonal Commissioners of Customs can order for closure of a facility when requested by a custodian. Such request should be approved within six months subject to clearance of dues of cost recovery charges, disposal of detained/seized cargo & cases against CCSP if any. Jurisdictional Commissioner will take no due certificate and thereafter he may de-notify any CFS/AFS and in the case of ICD, he shall forward the proposal for de-notification to the Board."
Circular No. 02/2021-Customs dated 19.01.2021:
"11. Denotification and Cost Recovery Charges
11.1. If the facility is required to be de-notified for any reason, the cost recovery charges should be payable until the date of such de-notification. The DGHRD may take necessary steps during this period to surrender the sanctioned/regularized posts.
11.2. If a facility is de-notified in the middle of a quarter for which the cost recovery charges are deposited in advance, the actual cost recovery charges until the de-notification date shall be calculated on pro-rata basis, and excess deposit, if any, shall be refunded to the entity. It may be noted that such refund shall not be treated as the refund of duty under Section 27 of the Customs Act, 1962. Instead, General Financial Rules (GFRs) shall be applied in such cases."
3. As seen, the power to de-notify a facility is derived from the power to notify it. In terms of Section 7(1)(aa) of the Customs Act, 1962, Board may notify ICDs and AFSs. Further, as per Section 8 of the said Act, the jurisdictional Principal Commissioner/Commissioner of Customs may approve proper places for the unloading and loading of goods and specify the limits of Customs area. Also, in terms of Section 45 of the said Act, the jurisdictional Principal Commissioner/Commissioner of Customs may approve the custodian of these facilities. Therefore, the Board is the competent authority for de-notification of ICDs/AFSs and the jurisdictional Principal Commissioner/Commissioner of Customs can revoke the approvals granted under Sections 8 and 45 of the said Act for these facilities.
4. In the case of CFSs, the Inter-Ministerial Committee (IMC) gives the approval for setting up of the facility. Thereafter, the jurisdictional Principal Commissioner/Commissioner of Customs grants approvals under Sections 8 and 45 of the said Act. Therefore, these approvals which would be akin to de-notification can be revoked by the jurisdictional Principal Commissioner/Commissioner of Customs without referring to the Board. However, post revocation of these approvals, an intimation shall be sent to the Board in this regard within a week of such revocation.
5. There can be two situations where de-notification of an ICD/AFS can be initiated namely, (a) on application from the custodian and (b) on the report of the jurisdictional Principal Commissioner/Commissioner of Customs in terms of the para no. 7.3 of Circular No. 50/2020-Customs dated 05.11.2020. Likewise, the custodian of a CFS can seek de-notification or the jurisdictional Principal Commissioner/Commissioner of Customs can de-notify such facility Customs in terms of the said para no. 7.3.
6. A custodian intending to wind up the operation shall submit an application to jurisdictional Principal Commissioner/Commissioner of Customs in the format prescribed in the Annexure-I. Where a facility has not been exempted from payment of Cost Recovery Charges in terms of Circular No. 02/2021-Customs dated 19.01.2021, all pending payments, if any, of Cost Recovery Charges shall be paid upto the date of de-notification. Also, in terms of relevant guidelines prescribed vide Circular No. 02/2021-Customs dated 19.01.2021 jurisdictional Principal Commissioner/Commissioner of Customs are required to assess the workload and accordingly deploy the required number of officers/staff and the payment of Cost Recovery Charges shall be for such number of officers/staff only. This guideline may be especially relevant to facilities to be de-notified due to the reduction in the work load. The application for de-notification should clearly mention that the payment of Cost Recovery Charges is up-to-date as on the date of application as well as for the subsequent period till the date of de-notification, as it is prescribed in general that such payment must be made in advance.
7. On the date of de-notification, there shall be no pending consignment of un-cleared cargo in the facility beyond the time stipulated under the said Act. Thus, the custodian should have taken all the efforts to dispose of the un-cleared cargo by following the procedure prescribed vide Circular No. 49/2018-Customs, dated 03.12.2018. However, it may so happen that the un-cleared cargo could not be disposed for want of no-objection certificates (NOC) from Customs or for any other reasons including impending auctions as per the extant guidelines. Further, there may be goods detained, seized or confiscated by various agencies lying in the facility. Even Customs office equipment, records etc. may be present in the facility.
8. Upon receipt of an application for de-notification, which shall be duly acknowledged, the jurisdictional Principal Commissioner/Commissioner of Customs would nominate a nodal officer of the rank of a Deputy/Assistant Commissioner of Customs to facilitate the de-notification exercise. Such nodal officer shall act as single point of contact for the custodian during the entire process of de-notification.
9. The nodal officer, who could also be the officer in-charge of the facility, shall tally the lists of goods aforementioned with the records maintained in the facility in terms of Handling of Cargo in Customs Areas Regulations, 2009 (HCCAR). S/he shall also actively coordinate with all the agencies concerned for speedy disposal of the uncleared, detained, seized or confiscated goods, if any. S/he shall also ensure, to the extent possible, that all the goods that are ripe for disposal are disposed of by following due procedure within four months from receipt of the application. S/he shall immediately bring any difficulty or lack of response from any agency to the notice of the jurisdictional Principal Commissioner/Commissioner of Customs for taking remedial action.
10. The nodal officer shall take stock of other goods such as goods detained, seized or confiscated by any agency of CBIC, samples, office equipment, furniture, office records etc. that are to be removed from the premises to be de-notified. The jurisdictional Principal Commissioner/Commissioner of Customs shall make necessary arrangements for disposal/removal of these items expeditiously.
11. The custodian shall, take all steps to speedily dispose all uncleared goods as per law. The facility shall not be de-notified till the disposal is completed in terms of the Circular No. 49/2018-Customs dated 03.12.2018. However, if for any substantive reason the goods are not disposed even by the end of third month of application for de-notification, the custodian would have the option to apply to the Principal Commissioner/Commissioner of Customs to allow the shifting of these uncleared goods to its own or some other facility (ICD/CFS/AFS) within the same jurisdiction. This option would be available only in exceptional cases as ordinarily the goods should be disposed after maximum four auctions. This option would be available subject to the conditions that the custodian shall get a 'no objection' in this regard from the custodian receiving the consignments; the receipt of goods by the receiving facility shall be acknowledged and accounted properly; the safe transfer and receipt of goods shall be the sole responsibility of the custodian of the facility being de-notified; and the legal responsibility of disposal of the said uncleared goods shall remain with the custodian of the facility being de-notified unless it is legally and wholly transferred to the custodian of the transferee facility with the latter's explicit acceptance to the satisfaction of the jurisdictional Principal Commissioner/Commissioner of Customs.
12. The jurisdictional Principal Commissioner/Commissioner of Customs shall make best efforts to ensure removal/disposal of goods detained, seized or confiscated by any agency of CBIC, samples, office equipment, furniture, office records etc. If for some reason the disposal is not possible, steps would be taken to transfer these goods to some other secure location. Such transfer of location shall be carried out by taking all the precautions to ensure that all the relevant laws are complied with, interest of revenue is safeguarded and prosecution cases, if any are not jeopardized. The disposal/transfer shall be timed such that the facility is vacated before the end of four months from the receipt of the application. It is emphasized that the de-notification of a facility shall not be held up on account of delay on the part of the Customs to dispose/remove the goods for which it is responsible including goods detained, seized or confiscated by any agency of the CBIC.
13. The Circulars No. 50/2020-Customs dated 05.11.2020 and No. 02/2021-Customs dated 19.01.2021 stand modified to the extent detailed above. All the pending requests for de-notification may be processed accordingly.
14. The above guidelines may be circulated among the stakeholders and public and the field formations may be sensitized suitably.
Tags : De-notification Inland Container Depots
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Reserve Bank of India
16.08.2021
Banking
Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 - Mantha Urban Co-operative Bank Limited, Mantha, District: Jalna, Maharashtra - Extension of period
MANU/RPRL/0116/2021
The Reserve Bank of India, in the public interest, had issued Directions to Mantha Urban Co-operative Bank Limited, Mantha, District: Jalna, Maharashtra in exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949 (AACS) from the close of business on November 17, 2020. The validity of the directions was extended from time-to-time, the last being up to August 16, 2021.
The Reserve Bank of India has now further extended the Directions for a period of two months from August 17, 2021 to October 16, 2021, subject to review. The Directions stipulate certain restrictions and/ or ceiling on withdrawal/ acceptance of deposits. The detailed Directions are displayed on the bank's premises for interested members of public to peruse. Reserve Bank of India may consider modifications of the Directions depending upon circumstances. The issue of Directions should not per se be construed as cancellation of banking license by the Reserve Bank of India. The bank will continue to undertake banking business with restrictions till its financial position improves.
Tags : Directions Extension Period
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