Ministry of Commerce and Industry

14.03.2024

Civil

Amendments in Paras 4.14 and 4.06 of the Handbook of Procedures 2023

MANU/DGFT/0038/2024

In exercise of powers conferred under Paragraph 1.03 and 2.04 of the Foreign Trade Policy 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendments in the provisions of Para 4.14 and 4.06 of the Handbook of Procedures 2023:

(A) Under Para 4.14 of HBP 2023, new sub-para (iii) is added as mentioned below:

(iii) Ad-hoc Input Output Norms may also be decided in a rule based IT environment without reference to Norms Committee. However, a certain percentage of cases as flagged by the RMS may be referred to Norms Committee for validation / review. (B) A new sub para 4.06 (vii) of HBP 2023 is inserted as below:

4.06(vii) In cases where ad-hoc norms have already been arrived at by Norms Committee, the Norms Committee may recommend Notification of SION on a case to case basis.

Effects of this Public Notice: Para 4.06 and Para 4.14 of the Handbook of Procedures 2023 have been amended to streamline and automate the process of fixation of Norms and Notification of new SIONs under Advance Authorisation Scheme, for ease of doing business and trade facilitation.

Tags : Amendments Handbook Procedures

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Reserve Bank of India

13.03.2024

Banking

Cut-off time for uploading of GST, ICEGATE and TIN 2.0 luggage files

MANU/RMIC/0034/2024

1. Please refer to para 10 on 'Reporting of transactions by agency banks to RBI' of 'Master Circular on Conduct of Government Business by Agency Banks - Payment of Agency Commission' dated April 1, 2023.

2. It has been noticed that several agency banks have been requesting RBI for extension of time for uploading of luggage files pertaining to GST, ICEGATE and TIN 2.0 receipts beyond the cut-off time of 1800 hours prescribed by O/o Principal Chief Controller of Accounts, Central Board of Indirect Taxes & Customs and O/o Principal Chief Controller of Accounts, Central Board of Direct Taxes. In this regard, it is advised that no extension will be granted by RBI beyond the cut-off time for submission of luggage files as per extant guidelines issued in this regard. Accordingly, the modified paragraph 10 will read as follows:

"10. Reporting of transactions by agency banks to RBI: After the operationalisation of NEFT 24X7 and RTGS 24X7, agency banks authorised to collect Goods and Service Tax (GST), Custom and Central Excise Duties (ICEGATE) and Direct Taxes under TIN 2.0 channel shall upload their luggage files in RBI's QPX/e-Kuber on all days except the Global holidays, which are January 26, August 15, October 2, all non-working Saturdays, all Sundays and any other day declared holiday by RBI for Government Transactions due to exigencies. It is to be ensured that these luggage files are uploaded in RBI's QPX/e-Kuber on or before 1800 hours prescribed by O/o Principal Chief Controller of Accounts, Central Board of Indirect Taxes & Customs and O/o Principal Chief Controller of Accounts, Central Board of Direct Taxes. No extension in cut-off time will be allowed to agency banks by RBI beyond 1800 hours for uploading of these luggage files in QPX/e-Kuber".

3. All other instructions of the said Master Circular remain unchanged.

Tags : Cut-off time Uploading files

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Reserve Bank of India

13.03.2024

Banking

RBI imposes monetary penalty on Bandhan Bank Ltd.

MANU/RPRL/0165/2024

The Reserve Bank of India (RBI) has, by an order dated March 04, 2024, imposed a monetary penalty of ₹29.55 lakh (Rupees Twenty Nine Lakh Fifty-five Thousand only) on Bandhan Bank Ltd. (the bank) for non-compliance with certain directions on 'Reserve Bank of India (Interest Rate on Deposits) Directions, 2016'. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.

The Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank was conducted by RBI with reference to its financial position as on March 31, 2022. Based on supervisory findings of non-compliance with regulatory instructions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the instructions. After considering the bank's reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found inter alia that the charge pertaining to opening of savings deposit account of an ineligible entity was sustained.

The above enforcement action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

Tags : Non-compliance Penalty Imposition

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Securities and Exchange Board of India

13.03.2024

Capital Market

Repealing of circular(s) outlining procedure to deal with cases where securities are issued prior to April 01, 2014

MANU/SSMD/0007/2024

1. In exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, SEBI had issued Circular No. CIR/CFD/DIL3/18/2015 dated December 31, 2015 and Circular No. CFD/DIL3/CIR/P/2016/53 dated May 03, 2016, stating that in respect of cases under the Companies Act, 1956, involving issuance of securities to more than 49 persons but up to 200 persons in a financial year, the companies may avoid penal action if they provide the investors with an option to surrender the securities and receive the refund amount at a price not less than the amount of subscription money paid along with 15% interest p.a. thereon or such higher return as promised to the investors. This opportunity to avoid penal action was provided to the issuer companies considering the higher cap for private placement provided in the Companies Act, 2013.

2. Given that considerable time has elapsed since the repeal of the Companies Act, 1956, in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets, it has now been decided to repeal the aforesaid circulars and the same shall stand rescinded with effect from 6 months from the date of issue of this circular, without prejudice to the operation of anything done or any action taken under the said circulars.

3. The above said option shall be available under the circular only to those companies who have completed the entire procedure and submitted the certificate in terms of circular No. CIR/CFD/DIL3/18/2015 dated December 31, 2015 and Circular No. CFD/DIL3/CIR/P/2016/53/dated May 03, 2016, within 6 months from the date of issue of this circular.

4. Accordingly, all cases involving an offer or allotment of securities to more than the permissible number of investors in a financial year shall be dealt with in line with the provisions contained under the extant applicable laws.

5. The Stock Exchanges are advised to bring the provisions of this circular to the notice of listed entities and also to disseminate the same on their websites

Tags : Repeal Circular

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Ministry of Finance 

11.03.2024

Goods and Services Tax

Central Government makes specific amendments to notification No. 1/2019-Customs (CVD) in the Ministry of Finance (Department of Revenue)

MANU/CUST/0018/2024

Whereas, the designated authority vide initiation notification F. No. 7/30/2023-DGTR, dated the 29th December, 2023, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 29th December, 2023, has initiated review in terms of sub-section (6) of section 9 of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act) and in pursuance of rule 24 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of countervailing duty on imports of "New/Unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres), having nominal rim dia above 16" used in buses and lorries/trucks" (hereinafter referred to as the subject goods) falling under tariff item 4011 20 10 of the First Schedule to the Customs Tariff Act, originating in or exported from China PR (hereinafter referred to as the subject country), imposed vide notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 1/2019-Customs (CVD), dated the 24th June, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R. 449(E), dated the 24th June, 2019, and has requested for extension of the said countervailing duty in terms of subsection (6) of section 9 of the Customs Tariff Act;

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (6) of section 9 of the said Customs Tariff Act and in pursuance of rules 20 and 24 of the said rules, the Central Government hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 1/2019-Customs (CVD), dated the 24th June, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 449(E), dated the 24th June, 2019, namely:-

In the said notification, after paragraph 2, and before the Explanation, the following paragraph shall be inserted, namely:-

"3. Notwithstanding anything contained in paragraph 2, the countervailing duty imposed under this notification shall remain in force up to and inclusive of the 23rd July, 2024, unless revoked, superseded or amended earlier."

Tags : Notification No. 1/2019 Ministry of Finance Amendment in Notification

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Ministry of Commerce and Industry

11.03.2024

Civil

Central Government makes specific amendments to Foreign Trade Policy (FTP), 2023

MANU/DGFT/0033/2024

1. In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.03 of the Foreign Trade Policy (FTP), 2023, the Central Government hereby makes the following amendments to FTP, 2023 with immediate effect, in supersession of Notification No. 69/2023 dated 07.03.2024.

2. A new para 2.03 (A) is inserted below para 2.03 of FTP 2023, as follows:

"2.03A Importability of items under Advance Authorisation/EOU/SEZ without compliance to the mandatory Quality Control Orders (QCOs)

Import of Inputs under Advance Authorisation/EOU/SEZ without compliance to the mandatory QCOs, shall be subjected to the following conditions:

i) For Advance Authorisation:

a) Import of inputs under the Advance authorisation without compliance to the mandatory QCOs shall be with pre-import condition. Such inputs shall be utilised in the manufacturing of the export product (making normal allowance for wastage) and shall be exported under the same authorisation.

b) Exemption from mandatory QCOs shall be specifically endorsed in the Advance authorisation, upon the request of the authorisation holder. Imports under Authorisation without specific endorsement of exemption shall be made in accordance with mandatory QCOs.

c) Any unutilised imports or the products manufactured with inputs imported without compliance to the mandatory QCOs, shall not be transferred to DTA, even after regularisation of default in fulfilment of export obligation. For the purpose of this para, unutilised imports means imported inputs (without compliance of mandatory QCOs) which have not been accounted for, as per SION/Ad-hoc Norms, in the product exported under the same authorisation.

d) The unutilised imports shall be regularised as follows:

(i) The unutilised material shall be destroyed in the presence of jurisdictional GST/Customs authorities who shall certify the destruction of the goods or same may be re-exported;

(ii) In addition, such unutilised imports, irrespective of origin of goods, shall be liable to payment of effective duty on MFN basis along with interest on the exempted material, to Customs Authorities plus composition fee of an amount equivalent to 10% of the CIF value of unutilized imported inputs to DGFT. Proof thereof shall be submitted to the RA concerned before grant of EODC.

(e) The exemption from QCO will be available for physical exports only and such exemption will not be allowed for deemed exports for Advance Authorisation Holders.

(f) The facility of clubbing under para 4.36 of Handbook of Procedures (HBP), 2023 shall not be available.

(g) The Export Obligation period for such authorizations shall be as per para 4.40 of Handbook of Procedures. However, HO period is restricted to 180 days from the date of clearance of import consignment in respect of QCO exemption for textile products.

(h) Import of Inputs without compliance to the mandatory QCOs under DFIA scheme is not allowed.

(i) This exemption is further subject to para 2.03 (c) of FTP.

ii) For EQUs

(i) Exemption from applicability of mandatory QCOs issued under the BIS Act, 2016, shall be provided to EOU on import of inputs which are required for export production. No DTA clearance of such inputs or goods manufactured made out of such inputs, are allowed. An undertaking to that effect will be submitted to the Customs authorities by the EOU at the time of importation and a copy of the same shall also be submitted to the Development Commissioner concerned. The exemption from QCO will be available for physical exports only and such exemption will not be allowed for deemed exports. This exemption is further subject to para 2.03 (c) of FTP.

iii) For SEZ

(i) Exemption from applicability of mandatory QCOs issued under the BIS Act, 2016, shall be provided to SEZ on import of inputs which are required for export production. No DTA clearance of such inputs or goods manufactured made out of such inputs, are allowed. An undertaking to that effect will be submitted to the concerned Development Commissioner of the SEZ by the SEZ Unit at the time of importation. The exemption from QCO will be available for physical exports only. This exemption is further subject to para 2.03 (c) of FTP".

3. The following sub-para (c) is appended to the existing para 2.03 of FTP 2023:

"(c) The list of Ministries/Departments whose notifications on mandatory QCOs, that are exempted by the DGFT for goods to be utilised/consumed in manufacture of export products, are given in Appendix-2Y of FTP 2023".

Effect of this Notification: Enabling provisions are made for exempting inputs imported by Advance Authorisation holders, EOUs and SEZ from mandatory Quality Control Orders (QCOs). Accordingly, list of Ministries / Departments [i.e. Ministry of Steel, Department for Promotion of Industry and Internal Trade (DPIIT) and Ministry of Textiles] are notified in Appendix 2Y of FTP, 2023.

This issue with the approval of Minister of Commerce & Industry.

Tags : Amendments FTP

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