• DIRECTOR GENERAL OF FOREIGN TRADE

Circular No. 91(RE-2008)/2004-09 Dated 21.05.2009 - "Error 96" Cases and their Online Validation under DEPB Scheme

DEPB Scheme was made on-line since October, 2005 wherein the on-line data flowing through Electronic Message Exchange System between Customs and DGFT & vice-versa, requires validation at the Customs end. In case of any change at the time of issuance of DEPB Scrip by the Regional Authority (RA), which is different from that of the parameters in the shipping bill (as transmitted by Customs), all such DEPB cases are reflected as "Error 96" cases and are required to be examined and sent as Flag 'M' by the DGFT Headquarters to the Customs authority for acceptance of the same on-line by them for clearance of the import consignments against the said DEPB Scrip.

Trade Notice No. 3/AM.10 Dated 20.05.2009 - Submission of correspondences through authorized signatories

Joint Director General of Foreign Trade of mumbai has requested all trade and industry to submit their Letters/requests forwarded by trade and industry to DGFT must contain the signature of authorized signatory with his name and designation otherwise such letters/requests shall not be taken cognizance of by this Office henceforth. In case authorized signatory is other than Proprietor/ Director/Partner of the firm, copy of Power of Attorney executed in his favour will also be required to be submitted.

• RESERVE BANK OF INDIA

Circular No. DBOD.BP.BC.No.133/21.04.018/2008-09 Dated 11.05.2009 - Reconciliation of nostro account and treatment of outstanding entries

The position regarding long pending outstanding debit and credit entries in nostro accounts of banks was reviewed and it has been decided that in respect of outstanding debit/credit entries of individual value USD 2500 and above or equivalent in nostro accounts, banks will continue to make efforts for reconciliation. In respect of outstanding credit entries of individual value less than USD 2500 or equivalent in nostro account originated upto March 31, 2002, banks may transfer to profit and loss account. The amount credited to the profit and loss account should be appropriated to the general reserve and will not be available for declaration of dividend. Appropriate disclosure should be made in the Notes to Accounts including the impact on the profit and loss account. Any future claim in respect of these entries should be honoured. Banks may at their discretion, write off the unreconciled debit entries of individual value less than USD 2500 or equivalent in nostro and mirror accounts originated upto March 31, 2002 against the provision already held in terms of the circular dated July 1, 1999. All unreconciled credit entries in the nostro accounts originated on or after April 1, 2002 which are outstanding for more than 3 years may be transferred to Blocked Account and shown as outstanding liabilities which will be reckoned for the purpose of CRR/SLR. Make 100 per cent provision in respect of all unreconciled debit entries in the nostro accounts originated on or after April 1, 2002 which are outstanding for more than two years (instead of three years as at present).

• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. CIR/011/3/IRDA/Health/SN/09-10 Dated 25.5.2009 -Health Insurance for Senior Citizens

Under the provisions of section 14 (1) and (2)(b) of the Insurance Regulatory and Development Authority Act, 1999 all health insurance products filed hereafter must allow entry at least till 65 years of age. Also, any differences in product specifications for different age groups or for different entry ages must be clearly spelled out upfront in the prospectus and policy documents. Any proposal for health insurance of senior citizens, which are denied on any grounds, should be made in writing with reasons furnished and recorded. Such reasons should stand the scrutiny of reasonableness and fairness. The premium charged for health insurance products catering to the needs of senior citizens should be fair, justified, transparent and duly disclosed upfront. The details of any loading charged must also be made available to the insured. Insurers should devise mechanisms to reward policyholders for early entry and continued renewals with the same insurer. Each instance of delay in issue of identity cards to policyholders beyond 30 days from issue of policy may entail a penalty being levied on the concerned insurer. All health insurance policies must enclose an annexure briefly describing in simple language the coverage and the key terms and conditions of the policy. This circular shall take effect for all policies issued or renewed on or after 1st of July, 2009. All general insurance companies are advised to ensure due compliance with the provisions contained in the circular as any failure to do so would render them liable to appropriate action under the provisions of IRDA Act, 1999, the Insurance Act, 1938 and the regulations framed thereunder.

• INDIRECT TAXATION

Customs

Circular No. 17/2009 dated 25.05.2009 - Norms for Execution of Bank Guarantee Under Specified Export Promotion Schemes- Modifications in Circular No.58/04-Cus dt.21.10.04-regarding

Revised norms for execution of Bond / Bank Guarantee (BG) in respect of imports made under the Advance Licence and EPCG Schemes were notified vide Circular No.58/2004-Cus. Dated 21.10.2004. It has been decided to amend the said circular, in order to extend the facility of nil / reduced rate of bank guarantee as provided within the said circular to all the service providers who meet the criteria prescribed therein.

As regards the combined export performance / duty payment of all the units of a manufacturer operating under single Importer exporter code (IE code) for the purposes of deciding the eligibility of the said importer for benefits. It has been decided that the combined export performance / duty payment of all the units of a manufacturer exporter operating under a single IE-Code shall be considered for extending the benefits of the said circular provided all such individual units are separately registered with the Central Excise department and they have fulfilled the other criteria of the said circular. Further, it has been decided that the benefits of the said circular may also be extended to the imports under DFIA scheme provided they have fulfilled the other criteria of the prescribed therein.

Circular No. 16/2009 dated 25.05.2009 - Grant of All Industry Rate of Duty Drawback to Merchant Exporters- Regarding

The Board has decided to accept the recommendation of the Drawback Committee regarding grant of All Industry Rate of Duty Drawback to Merchant Exporters. Accordingly, merchant exporters who purchase goods from the local market for export shall henceforth be entitled to full rate of duty drawback (including the excise portion). However, such merchant exporters shall have to declare at the time of export, the name and address of the trader from whom they have purchased the goods. They are required declare that no rebate (input rebate and also the final product rebate) shall be taken against the Shipping bills under which they are exporting the goods. The merchant exporters who purchase goods from traders may therefore furnish the declaration, at the time of export, in the format annexed with this circular.

• PRESS INFORMATION BUREAU

Dated 27.05.2009 - Customs Duty Exemption on Import of Drug for Treatment of H1N1 Influenza

With the purpose of creating the buffer stock of drug, Oseltamivir Phosphate used for treatment of H1N1 Influenza, Government of India has decided to import drug. would be imported by M/s Roche India Ltd to supplement the stock manufactured in India. The buffer stock is to be maintained by M/s Roche India Ltd on behalf of the Government for supply to Government only.

on the recommendation of the Department of Health and Family Welfare, CBEC has issued an exemption order dated 21st May, 2009 for duty free import of one million capsules of Tamiflu 75 mg (Oseltamivir Phosphate) being imported on behalf of the government by M/s Roche India Ltd.

• SECURITIES EXCHANGE BOARD OF INDIA

SEBI SMD Circular No. MRD/DoP/ Cir-05/2009 May 20, 2009 Dated 20.05.2009 - PAN requirement for transfer of shares in physical form

It has been clarified by the SEBI that for securities market transactions and off-market/ private transactions involving transfer of shares in physical form of listed companies, it shall be mandatory for the transferee(s) to furnish copy of PAN card to the Company/RTAs for registration of such transfer of shares. Accordingly, Stock Exchanges and Registrars to an Issue and Share Transfer Agents are advised to adhere to directions issued therein.

Press Release No. 167/2009 Dated 21.05.2009 - Notification of SEBI (Investor Protection and Education Fund) Regulations, 2009

With a view to strengthen its activities for investor protection, SEBI has notified the SEBI (Investor Protection and Education Fund) Regulations, 2009, on May 19, 2009. Accordingly, it is directed that the fund shall be used for the protection of investors and promotion of investor education and awareness by way of educational activities including seminars, training, research and publications, aimed at investors and awareness programmes through media - print, electronic.