In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government has made the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 10/2008-Customs, dated the 15th January, 2008  published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 33(E), dated the 15th January, 2008, namely “Exemption to the Specified Commodities when Imported from Republic of Singapore from Additional Duty of Customs in Excess of the Amount Provided”. In the said notification, for the table, a new table has been substituted.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government has exempted the goods of description specified in column (2) of the Table annexed thereto (like printed ticket stocks, printed publicity material etc.), when imported into India by a designated airline specified in column (3) of the Schedule annexed thereto and registered or incorporated in a country specified in column (2) of the said Schedule, from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act.

Whereas, in the matter of import of Bus and Truck Radial Tyres, (hereinafter referred to as the subject goods), falling under item nos. 40112010 (for tyres) and 40131020 and 40129049 (for tubes and flaps respectively) of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and originating in, or exported from the People's Republic of China(China PR) and Thailand (hereinafter referred to as the subject countries), the designated authority, vide its final findings in notification No. 14/17/2008-DGAD, dated the 1st January, 2010 published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 1st January, 2010, had come to the conclusion that -

(a) there had been increase in the volume of dumped imports from the subject countries, both in absolute terms as also in relation to total production and market demand of the subject goods in India, resulting in a decline in the market share of the domestic industry;

(b) the imports were causing significant price undercutting resulting in price suppressing effect on the domestic industry;

(c) in spite of increase in production and sales, profitability of the domestic industry per unit of sales declined after increasing in 2006-07, resulting in deterioration in profits, cash profits and a decline in the return on capital employed;

(d) decline in the market share had resulted in increase in inventories with the domestic industry in spite of higher capacity utilization;

(e) this had led to domestic industry suffering material injury and imposition of final duty is required to offset dumping and injury;

and had recommended imposition of definitive anti-dumping duty on all imports of the subject goods, originating in, or exported from, the subject countries;

And whereas on the basis of the aforesaid findings of the designated authority, the Central Government had imposed an anti-dumping duty on subject goods .

And whereas, in the said matter, M/s. Shandong Hawk International Rubber Industry Company Limited, (producer/exporter) have requested for review in terms of rule 22 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 in respect of exports made by them.

Now, therefore, in exercise of the powers conferred by sub-rule (2) of rule 22 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid recommendation of the designated authority, hereby orders that pending the outcome of the said review by the designated authority, export of Bus and Truck Radial Tyres falling under item nos. 40112010 (for tyres) and 40131020 and 40129049 (for tubes and flaps respectively) of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), by M/s. Shandong Hawk International Rubber Industry Company Limited (producer/exporter), from China PR, when imported into India, shall be subjected to provisional assessment till the review is completed.

In case of recommendation of anti-dumping duty after completion of the said review by the designated authority, the importer shall be liable to pay the amount of such anti-dumping duty recommended on review and imposed on all imports of Bus and Truck Radial Tyres in to India, when exports made by M/s. Shandong Hawk International Rubber Industry Company Limited (producer/exporter), China PR, from the date of initiation of the said review

Government of India has notified sale (re-issue) of '8.30 per cent Government Stock, 2040' for an aggregate amount of Rs. 2,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called 'Specific Notification') as also the terms and conditions specified in the General Notification F. No. 4 (13)-W&M/2008, dated October 8, 2008 issued by Government of India.

Government of India has notified sale (reissue) of '8.08 per cent Government Stock, 2022' for an aggregate amount of Rs. 2,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called 'Specific Notification') as also the terms and conditions specified in the General Notification F. No. 4 (13)-W&M/2008, dated October 8, 2008 issued by Government of India.

Government of India has notified sale (reissue) of '7.17 per cent Government Stock, 2015' for an aggregate amount of Rs. 2,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called 'Specific Notification') as also the terms and conditions specified in the General Notification F. No. 4 (13)-W&M/2008, dated October 8, 2008 issued by Government of India.

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, has exempted the taxable services in relation to general insurance business provided under the Weather Based Crop Insurance Scheme or the Modified national Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture, from the whole of service tax leviable thereon under section 66 of the said Act.

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government has made the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), notification No. 24/2009-Service Tax, dated the 27th July, 2009, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 551 (E), dated the 27th July, 2009, namely :-

In the said notification, for the words "management, maintenance or repair of roads", the words "management, maintenance or repair of roads, bridges, tunnels, dams, airports, railways and transport terminals" shall be substituted.

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government has exempted the taxable service referred to in item (v) of sub-clause (zzzze) of clause (105) of section 65 of the said Finance Act (hereinafter referred to as 'such service'), for packaged or canned software (hereinafter referred to as 'said goods') from the whole of service tax, subject to the condition that-

(i) the value of the said goods domestically produced or imported, for the purposes of levy of the duty of Central Excise or the additional duty of customs leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), if imported, as the case may be, has been determined under section 4A of the Central Excise Act 1944 (1 of 1944) (hereinafter referred to as 'such value'); and

(ii) (a) the appropriate duties of excise on such value have been paid by the manufacturer, duplicator or the person holding the copyright to such software, as the case may be, in respect of software manufactured in India; or

(b) the appropriate duties of customs including the additional duty of customs on such value, have been paid by the importer in respect of software which has been imported into India;

(iii) a declaration made by the service provider on the invoice relating to such service that no amount in excess of the retail sale price declared on the said goods has been recovered from the customer.

Explanations.- For the purpose of this notification, the expression,-

(i) "appropriate duties of excise" shall mean the duties of excise leviable under section 3 of the Central Excise Act, 1944 (1 of 1944) and a notification, for the time being in force, issued in accordance with the provision of sub-section (1) of section 5A of the said Central Excise Act; and

(ii) "appropriate duties of customs" shall mean the duties of customs leviable under section 12 of the Customs Act, 1962 (52 of 1962) and any of the provisions of the Customs Tariff Act, 1975 (51 of 1975) and a notification, for the time being in force, issued in accordance with the provision of subsection (1) of section 25 of the said Customs Act.

In exercise of the powers conferred by sub-sections (1) and (2) of section 4A of the Central Excise Act, 1944 (1 of 1944), the Central Government has made the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.49/2008-Central Excise (N.T.), dated the 24th December, 2008, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 882(E), dated the 24th December, 2008, namely:-

In the said notification, in the Table, after S. No. 93 and the entries relating thereto, the following shall be inserted, namely:-

Explanation.- For the purposes of this notification, “packaged software or canned software” means a software developed to meet the needs of variety of users, and which is intended for sale or capable of being sold off the shelf.

Notification Nos. 49/2003-CE and 50/2003-CE both dated 10.06.2003 provide full exemption from excise duties to goods cleared from industrial units in the states of Uttarakhand and Himachal Pradesh for a period of ten years from the date of commencement of commercial production. The exemption is available to new units set up or existing units which have undergone substantial expansion in terms of the said notifications and commence commercial production before the cut-off date, that is, on or before 31.3.2010

Representations have been received from Trade and Industry Associations seeking clarification on the availability of the exemption benefit under these notifications in the following situations:

(i) Where a unit starts producing some new products after the cut-off date using plant and machinery installed up the said cut-off date and without any further addition o the plant and machinery.

(ii) Where the installed capacity in a particular unit is upgraded after the cut-off date, so as to increase the efficiency of the machinery by installing ancillary machines or replacement of some parts etc but in such a way that it does not lead to increase in capacity of production.

(iii) Where new dosage forms are manufactured after the cut-off date on the same line of production with the same machinery.

(iv) Where a unit manufacturers a new product by installing fresh plant, machinery or capital goods after the cut-off date.

Board has examined the matter. Under the said notifications, any new unit set up or an existing unit which has undergone substantial expansion that commences commercial production before the cut-off date is entitled to excise duty exemption in respect of excisable goods (other than those appearing in the negative list) manufactured and cleared for a period of ten yeas from the date of commencement of commercial production. The provisions of these notifications do not place a bar or restriction on any addition/modification in the plant or machinery or on the production of new products by an eligible unit after the cut-off date and during the exemption period of ten years as per the notification. Therefore, it is clarified that in all the above situations, the benefit of the excise duty exemption under the notifications would continue to be available to eligible industrial units. However the period of exemption would remain ten years and would not get extended on account of such modifications or additions under any circumstances.

Government of India offered to sell (re-issue) of (a) "7.17 percent Government Stock 2015 " for a notified amount of Rs.2,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(3)-W&M/2010 dated December 20, 2010 (b) "8.08 percent Government Stock 2022" or a notified amount of Rs. 2,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(3)-W&M/2010(i) dated December 20, 2010 and (c) "8.30 percent Government Stock 2040" for a notified amount of Rs. 2,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(3)-W&M/2010(ii) dated December 20, 2010.

Attention of all the banks authorised to deal in foreign exchange is invited to paragraph 4 of the A.P.(DIR Series) Circular No. 46 dated June 14, 2005 in terms of which they are required to submit a statement as on December 31, each year in case the aggregate forex utilization by the International Debit Card holders exceeds USD 100,000 in a calendar year.

It has been decided to discontinue the submission of the statement mentioned above to the Reserve Bank. Accordingly, all the banks authorised to deal in foreign exchange are advised to discontinue the submission of the afore-mentioned statement from the calendar year 2010 onwards.

All other instructions of A.P. (DIR Series) Circular No. 46 dated June 14, 2005 shall continue to remain the same.

Attention of all the Authorised Persons, who are Indian Agents under Money Transfer Service Scheme (MTSS) is invited to Paragraph 5.10 (b) of Annex-I, Annex to A.P. (DIR Series) Circular No.18 {A.P. (FL Series) Circular No.5} dated November 27, 2009 in terms of which Authorised Persons (Indian Agents) were advised to take into account risks arising from the deficiencies in AML/CFT regime of certain jurisdictions, as identified in FATF Statement issued from time to time, while dealing with individuals from these jurisdictions.

As part of its ongoing review of compliance with the AML/CFT standards, the Financial Action Task Force (FATF) has identified certain jurisdictions which have strategic AML/CFT deficiencies.

FATF, vide its statement dated June 25, 2010 (copy enclosed) has called upon jurisdictions listed in the statement to complete the implementation of their action plan within the timeframe. The FATF, in the statement has called upon its members to consider the information given in the statement.

All Authorised Persons (Indian Agents) are accordingly advised to consider the information contained in the enclosed statement.

Attention of the Authorised persons (APs) is invited to Paragraph 4.10 (b) of F-Part-I, of the Annex to A.P. (DIR Series) Circular No.17 {A.P. (FL/RL Series) Circular No. 4} dated November 27, 2009 in terms of which APs were advised to take into account risks arising from the deficiencies in AML/CFT regime of certain jurisdictions, as identified in FATF Statement, issued from time to time, while dealing with individuals or businesses from these jurisdictions.

As part of its ongoing review of compliance with the AML/CFT standards, the Financial Action Task Force (FATF) has identified certain jurisdictions which have strategic AML/CFT deficiencies.

FATF, vide its statement dated June 25, 2010 (copy enclosed) has called upon jurisdictions listed in the statement to complete the implementation of their action plan within the timeframe. The FATF, in the statement, has called upon its members to consider the information given in the statement.

Attention of Authorised Dealer (AD) banks is invited to Regulation 5 of Notification No.FEMA.14/2000-RB dated May 3, 2000 read with items 7(b) and 7(e) of the Memorandum of Procedure for channelling transactions through the Asian Clearing Union (ACU) in terms of which all eligible current account transactions as defined by the Articles of Agreement of the International Monetary Fund and the export / import transactions between the ACU member countries on deferred payment terms respectively are to be routed through the ACU mechanism.

The above provisions have been reviewed and it has now been decided that payment for import of oil or gas should be settled in any permitted currency outside the ACU mechanism.

Necessary amendments to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 are being issued separately.

Attention of Authorised Dealer Category - I (AD Category-I) banks is invited to Regulations 3 and 5 of Notification No.FEMA.14/2000-RB dated May 3, 2000 read with items 7(b) and 7(e) of the Memorandum of Procedure for channelling transactions through Asian Clearing Union (ACU) in terms of which all eligible current account transactions as defined by the Articles of Agreement of the International Monetary Fund and export / import transactions between ACU member countries on deferred payment terms respectively are to be routed through the ACU mechanism.

In view of the difficulties being experienced by importers / exporters in payments to /receipts from Iran, the extant provisions have been reviewed and it has been decided that all eligible current account transactions including trade transactions with Iran should be settled in any permitted currency outside the ACU mechanism until further notice.

Please refer to paragraphs 104 to 106 of the Second Quarter Review of Monetary Policy 2010-11 (extracts enclosed), proposing certain measures in regard to housing loans by commercial banks. Accordingly, banks are advised as under:

Loan to Value (LTV) Ratio

At present, there is no regulatory ceiling on the LTV ratio in respect of banks' housing loan exposures. In order to prevent excessive leveraging, the LTV ratio in respect of housing loans hereafter should not exceed 80 per cent. However, for small value housing loans, i.e. housing loans up to Rs. 20 lakh (which get categorised as priority sector advances), it has been decided that the LTV ratio should not exceed 90 per cent.

Risk Weight

In terms of circular DBOD.No.BP.BC.83/21.06.001/2007-08 dated May 14, 2008 the risk weights on residential housing loans with LTV ratio up to 75 per cent are 50 per cent for loans up to Rs. 30 lakh and 75 per cent for loans above that amount. In case the LTV ratio is more than 75 per cent, the risk weight of all housing loans, irrespective of the amount of loan, is 100 per cent. Henceforth, the risk weight for residential housing loans of Rs. 75 lakh and above, irrespective of the LTV ratio, will be 125 per cent to prevent excessive speculation in the high value housing segment.

Provisioning

It has been observed that some banks are following the practice of sanctioning housing loans at teaser rates i.e. at comparatively lower rates of interest in the first few years, after which rates are reset at higher rates. This practice raises concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective. It has been also observed that many banks at the time of initial loan appraisal, do not take into account the repaying capacity of the borrower at normal lending rates. Therefore, in view of the higher risk associated with such loans, the standard asset provisioning on the outstanding amount has been increased from 0.40 per cent to 2.00 per cent with immediate effect. The provisioning on these assets would revert to 0.40 per cent after 1 year from the date on which the rates are reset at higher rates if the accounts remain 'standard'.

Housing Loans by Commercial Banks

Loan to Value Ratio in Housing Loans

At present, there is no regulatory ceiling on the loan to value (LTV) ratio in respect of banks' housing loan exposures. In order to prevent excessive leveraging, it is proposed that the LTV ratio in respect of housing loans hereafter should not exceed 80 per cent.

Risk Weights on Residential Housing Loans

At present, the risk weights on residential housing loans with LTV ratio up to 75 per cent are 50 per cent for loans up to Rs. 30 lakh and 75 per cent for loans above that amount. In case the LTV ratio is more than 75 per cent, the risk weight of all housing loans, irrespective of the amount of loan, is 100 per cent. Accordingly, it is proposed to increase the risk weight for residential housing loans of Rs. 75 lakh and above, irrespective of the LTV ratio, to 125 per cent.

Teaser Rates for Housing Loans

It has been observed that some banks are following the practice of sanctioning housing loans at 'teaser rates', wherein the loans are offered at a comparatively lower rate of interest in the first few years, after which rates are reset at higher rates. This practice raises concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective. It has been observed that many banks at the time of initial loan appraisal do not take into account the repaying capacity of the borrower at normal lending rates. In view of the higher risk associated with such loans, it is proposed to increase the standard asset provisioning by commercial banks for all such loans to 2 per cent.

Please refer to our circular DPSS (CO) EPPD No. 893 / 04.03.02 / 2009-2010 dated November 11, 2009 on the captioned subject.

We advise that the existing Customer Facilitation Centres set up for NEFT customer complaints, henceforth may also be used for RTGS customer transactions, to ensure prompt redressal and resolution of customer complaints.

Please refer to our circular Ref no. 1102/02.14.08/2009-10 dated November 24, 2009 on the captioned subject. In this regard you are advised to forward us a complete list of intermediaries accounts maintained with your bank by 5th January 2011.

A certificate from the concurrent auditor on the operations of the intermediaries' accounts being in accordance with directions as provided for in the said circular on a quarterly basis should reach us within a fortnight from the quarter to which it pertains (the report for quarter ending December 2010 to reach us by January 15, 2011).

A NIL report may be submitted in case of your bank holds no internal account of intermediaries.

Please refer to our circular RPCD. CO. RRB. BC. No. 38/03.05.28(B)/2009-10 (RBI/ 2009-10/201) dated October 29, 2009, on the captioned subject.

As announced in the Mid-Quarter Review of Monetary Policy released on December 16, 2010, it has been decided to reduce the Statutory Liquidity Ratio (SLR) for Regional Rural Banks from 25 per cent of their Net Demand and Time Liabilities (NDTL) to 24 per cent with effect from December 18, 2010.

With a view to preventing State and Central Co-operative Banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities Reserve Bank of India has issued guidelines on Know Your Customer (KYC) norms / Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT) vide, inter alia, circulars RPCD.AML.BC.No.80/07.40.00/ 2004-05 dated February 18, 2005 and RPCD.CO.RF.AML.BC.No.51/07.40.00/2007-08 dated February 28, 2008.

It has been brought to our notice that "Money mules" can be used to launder the proceeds of fraud schemes (e.g., phishing and identity theft) by criminals who gain illegal access to deposit accounts by recruiting third parties to act as "money mules." In some cases these third parties may be innocent while in others they may be having complicity with the criminals.

The operations of such mule accounts can be minimised if banks follow the guidelines contained in various RBI Circulars on Know Your Customer (KYC) norms/Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/ Obligation of banks under PMLA, 2002. State and central Co-operative Banks are, therefore, advised to strictly adhere to the guidelines on KYC/AML/CFT issued from time to time and to those relating to periodical updation of customer identification data after the account is opened and also to monitoring of transactions in order to protect themselves and their customers from misuse by such fraudsters.

With a view to preventing RRBs from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities, Reserve Bank of India has issued guidelines on Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/ Combating of Financing of Terrorism (CFT) vide, inter alia, circulars RPCD.NO.RRB.BC.81/03.05.33 (E)/2004-05 dated February 18, 2005 and RPCD.CO.RRB.No.BC.50/03.05.33(E)/2007-08 dated February 27,2008.

It has been brought to our notice that "Money mules" can be used to launder the proceeds of fraud schemes (e.g., phishing and identity theft) by criminals who gain illegal access to deposit accounts by recruiting third parties to act as "money mules." In some cases these third parties may be innocent while in others they may be having complicity with the criminals.

The operations of such mule accounts can be minimised if RRBs follow the guidelines contained in various RBI circulars on Know Your Customer (KYC) norms /Anti-Money Laundering (AML) standards/ Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002. RRBs are, therefore, advised to strictly adhere to the guidelines on KYC/AML/CFT issued from time to time and to those relating to periodical updation of customer identification data after the account is opened and also to monitoring of transactions in order to protect themselves and their customers from misuse by such fraudsters.

Please refer to our circulars RPCD. CO. No. RRB. BC. 57/ 03.05.33(F)/ 2005-06 dated December 27, 2005 and RPCD. CO. FID. BC. No. / 12.01.012/ 2010-11 (RBI/ 2010-11/ 253 dated November 1, 2010, in terms of which RRBs are permitted to handle pension accounts and other government business as sub-agents; and to open the accounts of beneficiaries of Indira Gandhi National Old Age Pension Scheme.

In this connection, we enclose a copy of the letter No. F. 41(26)/ DSW/ FAS/ Misc./ CRSP/ 09-10/ 2203 dated August 6, 2010 received from Government of NCT of Delhi, Department of Social Welfare. New Delhi, the contents of which are self-explicit. As directed therein, it should be ensured that the Govt.'s financial assistance scheme pension accounts (singly operated accounts) are, later on, not converted into joint accounts and ATM cards are not issued to such beneficiaries, except in the cases of minor and mentally challenged beneficiaries. Also, all such conversions should have prior and written approval of the Government of Delhi, so that frauds, etc. can be avoided.

The Reserve Bank of India today met select banks and SIDBI to get an assessment regarding the ground level situation in the microfinance sector in Andhra Pradesh and other states 

Banks informed that collections by MFIs in Andhra Pradesh have deteriorated considerably and there were some incipient signs of the contagion spreading to other states. As far as at the banks' exposures to MFIs were concerned, the MFIs had so far been able to meet their repayment obligations to the banks till November 2010. However, going forward this may be a matter of concern. The general view of the banks was that while the structural issues regarding the MFI sector may be addressed by the Malegam Committee, some interim measures may be required to address the gap between the recoveries by MFIs and their payment commitments to banks. The banks stressed on the need to work out an interim arrangement involving, inter alia, rescheduling of exposures to MFIs subject to certain covenants such as MFIs agreeing to reduce their leverage and growth projections. Bankers requested Reserve Bank to consider some regulatory concessions to enable them to reschedule the exposure to MFIs.

The RBI sensitized the banks to the need to maintain funding lines to MFIs on merits to prevent contagion. The Indian Banks Association will shortly come up with concrete proposals for the measures to be taken in the interim, for consideration of Reserve Bank of India.

A reference is invited to the Issuance of Non-Convertible Debentures (Reserve Bank) (Amendment) Directions, 2010 dated December 06, 2010 issued vide circular IDMD.PCD.24/14.03.03/2010-11 of same date covering the regulation of NCDs of maturity up to one year.

In this regard, it is clarified that where the issuer is:

a. maintaining banking facilities with multiple banks/FIs, the issuer may, in compliance with section 3 (iii) of the said Directions, obtain a certificate from any one of its banks on the quality of the asset and also give an undertaking that its accounts maintained with the other banks/FIs are classified as Standard Assets by the banks/FIs. Accordingly, the auditor verifying the eligibility conditions set forth in the Directions (in terms of section 8.2 of the Directions) must also ensure that such an undertaking is available on record; and

b. raising funds through issuance of NCDs in multiple tranches based on a single valid rating for the consolidated amount, each tranche need not be separately certified by the auditor (in compliance with section 8.2 of the NCD Directions). However, where the issuer obtains a separate/fresh rating for an issuance, such issuance must be backed by an auditor's certificate confirming the issuer's compliance with the eligibility criteria for issuance

The Central Board of Excise & Customs (CBEC) has released a draft scheme of Authorized Economic Operator (AEO) based on the World Customs Organisation's (WCO) SAFE Framework of Standards to secure and facilitate global trade. The SAFE Framework of Standards was adopted by the WCO, an organization of 178 Customs administrations, in 2005 to address growing concern among the Customs administrations about the threats posed to national as well as global security through the misuse of channels of import and export.

Under the AEO programme, a party engaged in the international movement of goods is approved by Customs as compliant with the supply chain security standards, and given benefits, such as simplified Customs procedures and reduced Customs intervention which would speed up the clearances of import and export goods. This programme is being increasingly adopted by various Customs administrations world over with the objective of securing the supply chain with resultant benefits for the trading community.

The draft AEO scheme has been placed on CBEC's website (www.cbec.gov.in) for inviting comments and suggestions from various stakeholders such as trade and industry. This programme encompasses various players in the international supply chain such as importers, exporters, warehouse owners, Custom House Agents, cargo forwarders and carriers. Once granted the AEO status, businesses will have a recognized quality mark which will indicate their secure role in the international supply chain and that their Customs procedures are efficient and compliant.

In exercise of the powers conferred by clause (1) of article 224 of the Constitution of India, the President is pleased to appoint (1) Shri Giriraj Das Saxena, and (2) Shri Tarun Kumar Kaushal, to be Additional Judges of the Madhya Pradesh High Court, in that order of seniority, for a period of two years with effect from the date they assume charge of their respective offices, and (1) Shri Justice Arun Chandra Upadhyay, and (ii) Shri Justice Chitta Ranjan Sarma, to be Additional Judges of the Gauhati High Court, in that order of seniority, for a period of two year with effect from 28th December, 2010.

Offering Motor third party liability cover to commercial vehicles has been a challenge for non-life insurers in view of the tariff controls prevailing and non-availability of credible data and statutory provisions. The Authority, vide direction dated 4th December 2006, has directed all non-life insurers (except specialised entities) to participate in a "pool" arrangement to ensure active participation in providing the cover.

Since 2006, many issues relating to the adequacy of the premium charged for the cover and various alternatives to address the issue were brought to the notice of the Authority. In this regard, to evaluate the prevailing market conditions and various options available to address the issue, in exercise of powers vested under Section 14 (1) of IRDA Act, 1999, the Authority has constituted a committee.  The terms of reference of the committee are as indicated below :

a. Review of current arrangement to third party motor liability pool

b. To examine the possibility and modalities to be adopted for creating declined pool of commercial vehicles to ensure the availability of third party liability cover to all commercial vehicles.

c. To examine the possibility to provide third party liability cover to the driver in addition to the vehicle.

d.  The methodology of pricing to provide the necessary adequacy and reasonableness of third party insurance cover.

The timeframe for submission of the recommendations by the Committee is three months for the date of issue of this Order.

In exercise of the powers conferred by sub-section (1) of section 7, sub-section (2) of section 8, section 10 and section 31 of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (34 of 2003), the Central Government has made the Cigarettes and Other Tobacco Products (Packaging and Labelling) Amendment Rules, 2010.

In the Cigarettes and Other Tobacco Products (Packaging and Labelling) Rules, 2008, following shall be substituted, namely:--

(A) for rule 5, the following shall be substituted, namely:--

"5. Rotation of Specified Health Warnings.--The Specified Health Warning on tobacco packs shall be rotated every two years from the date of notification of the rules or earlier, as the case may be, as specified by the Central Government"

The Government, vide Notification No.1/61/2004ExportsI dated 9th November, 2004, decided to enforce operation of the residuary provisions of Yarn, Fabrics & Madeups Export Entitlement (Quota) Policy initially for one year with effect from 1st January, 2005, and extended from time to time. These provisions have since been extended upto 31st December, 2010.

The Government has decided to extend the operation of the residuary provisions of Yarn, Fabrics & Madeups Export Entitlement (Quota) Policy for a further one year with effect from 1st January, 2011.

All other terms and conditions of the Notification dated 9th November, 2004 mentioned in Para 1 remain unchanged.

In exercise of the powers conferred by Section 55 of the Special Economic Zone Act, 2005 (28 of 2005), the Central Government has made the following rules further to amend the Special Economic Zones Rules, 2006, namely the Special Economic Zones (Sixth Amendment) Rules, 2010. They shall come into force on the date of their publication in the Official Gazette.

In the Form "C" of the Special Economic Zone Rules, 2006, at Serial Number 3 relating to "General Conditions", for item (viii) the following item shall be substituted, namely:-

"The validity of this approval shall be co-terminus with validity of the Letter of Approval issued to the Developer and the progress of the implementation will be submitted to Government of India for every six months".

Having regard to the Customs Tariff Act, 1975 as amended in 1995 and the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Designated Authority recommended imposition of Anti Dumping Duty on imports of 'Saccharin' (hereinafter also referred to as subject goods) originating in or exported from China PR (hereinafter referred to as subject country). On the basis of the final findings, definitive anti dumping duty on the subject goods imported from the subject country was imposed by the Department of Revenue vide notifications No. 41/2007-Customs dated 19th March, 2007. A midterm review (MTR) was initiated by the Authority vide Notification No. 15/15/2008-DGAD dated the 7th May, 2008. The final findings notification of the MTR was issued by the Authority vide Notification No.15/15/2008-DGAD dated 6th November 2009. Pursuant to the recommendations in the MTR final findings of the Authority, the Department of Revenue had notified the Customs Notification vide No. 136/2009-Customs dated 9th December, 2009.

Initiation of Sunset Review

WHEREAS in terms of Section 9A(5) of the Customs Tariff (Amendment) Act 1995 the antidumping duties imposed, shall unless revoked earlier, cease to have effect on expiry of five years from the date of such imposition and the Authority is required to review, whether the expiry of duty is likely to lead to continuation or recurrence of dumping and injury. In this regard, Hon'ble Delhi High Court in WP No 16893 of 2006 held that sunset review is mandatory. Therefore, pursuant to the above orders of the Hon'ble High Court, the Designated Authority hereby initiates sunset review in accordance with section 9A(5) of the Act read with Rule 23 of Antidumping Rules to examine whether cessation of the duty would lead to continuation or recurrence of dumping and injury.

The review will cover all aspects of Notification 14/27/2004-DGAD dated 3rd January, 2007. The country involved in this review investigation is China PR.

The Domestic industry is required to submit information on prescribed pro forma (Application for Domestic industry) and information on likelihood of continuance or recurrence of dumping and injury or both substantiating the need for continuation of duty within Forty Days (40 days ) of issue of this notification.

The exporters in subject country, their government through their Embassy in India, the importers and users in India known to be concerned would be addressed separately to submit relevant information in the form and manner prescribed and to make their views known to the Authority in the following address:

The Designated Authority
Directorate General of Anti-Dumping and Allied Duties
Ministry of Commerce and Industry
Department of Commerce
Room No. 243 Udyog Bhavan
New Delhi-110011.

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 has prohibited, with immediate effect, the export of all varieties of Onions (Sl. No. 44 of Table B of Schedule 2 of ITC (HS) Classifications of Export and Import Items).

In supercession of all earlier notifications on export of Onions, it has been decided to prohibit export of all varieties of Onion with immediate effect and until further orders.

In exercise of the 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, 2009-14, the Central Government has made the following amendments in respect of Sl. No. 161 B {ITC(HS) Classification} in the Notification No. 38/2009-14 dated 09.04.2010.

(i) The Transitional Arrangements as available under para 1.4 & 1.5 of FTP, 2009-14 will not be applicable to the export of Cotton Yarn, under this notification.

(ii) However, Exporters who have obtained Registration Certificate from Textile Commissioner, Mumbai before 1st December, 2010 would be permitted to export Cotton Yarn within the quantity limit for which such registration certificate has been issued and within the validity of such registered contract.

(iii) If the validity of such registered contract has expired then the registered contract holder will have no right to export under such registered contract.

The effect of this notification:-

The export of cotton yarn (Tariff Codes 5205, 5206 & 5207) was earlier subject to registration of export contracts with Textile Commissioner, Mumbai. Now, the export of cotton yarn has been restricted and export will now be permitted under licence.

Policy Circular No. 7 (RE-2010)/2009-14 Dated 22.12.2010 - Restriction on export of cotton yarn and permitted to export under licence -Exact modalities for submitting applications for grant of export licence under reassessment

It has been decided in the meeting of Group of Ministers (GoM) on 21.12.2010 that for the present, 720 million Kgs. of Cotton Yarn is to be allowed for export during the year 2010-11(i.e. upto 31.03.2011).

Accordingly, Notification No. 14(RE-2010)/2009-14 dated 22.12.2010 has been issued, stipulating that henceforth export of cotton yarn will be restricted and will be allowed to be exported under licence. However, Exporters who have obtained Registration Certificate from Textile Commissioner, Mumbai before 1st December, 2010 would be permitted to export Cotton Yarn within the quantity limit for which such registration certificate has been issued and within the validity of such registered contract. The data for the quantity that has already been exported in 2010-11 is being collected. The representations received to review the extent of exportable surplus are also being examined.

Exact modalities for submitting applications for grant of export licence would be notified once the quantity of exports already made has been ascertained and the extent of exportable surplus has been reassessed.

 Para 5.11.2 of the Hand Book of Procedure Volume -1 (HBP V-I) permits re-fixation of Annual Average Export Obligation, in case the export in any sector/ product group decline by more than 5%. This implies that for the sector/product group that witnessed such decline in 2009-10 as compared to 2008-09, would be entitled for such relief. This matter was discussed in the meeting of the Port Officers held on 3rd December, 2010 at Delhi.

A list of such product groups showing the percentage decline in exports during 2009-10 as compared to 2008-09 is enclosed. All RAs are requested to re-fix the annual average export obligation for EPCG Authorizations for the year 2009-10 accordingly.

In pursuance of paragraph 7 of the Drugs (Prices Control) Order, 1995, read with No. S.O. 637(E) dated the 4th September, 1997 issued by the Government of India in the Ministry of Chemicals and Fertilizers, the National Pharmaceutical Pricing Authority, in supersession of the order of the Government of India in the Ministry Chemicals and Fertilizers (National Pharmaceutical Pricing Authority) No. S.O. 2474(E) dated 29th September, 2009, S.O. 1764(E) dated 21st July, 2010 and S.O. 1514(E) dated 16th June, 2009, published in the Gazette of India, extraordinary, part II, Section – 3, sub-section (ii), has prescribed the norms for Conversion Cost, Packing Charges and Process Loss of materials for the purpose of the said paragraph, which shall come into force with immediate effect:

The matter relating to the procedure for consideration of integrated and inter related projects for grant of environmental clearance under the provisions of EIA Notification, 2006 has been receiving attention of this Ministry for quite some time. After detailed deliberations in the Ministry. it has been decided that the following procedure shall be adopted henceforth for consideration of such projects.

(i) Integrated and inter-linked projects having multi sectoral components shall prepare a common EIA report, covering impact of each of the component in a comprehensive manner after obtaining TORs from each of the respective sectoral Expert Appraisal Committees (EACs). For the purpose, the project proponent shall submit applications to each of the sector simultaneously giving full details of the project (comprehensively for the integrated / interlinked projects as also for the particular component, sector specific) in the prescribed format (Form-1) and the pre-feasibility report.

(ii) The respective sectoral Expert Appraisal Committees will consider the project with specific emphasis on their respective sectors and prescribe the TORs which will not be limited to the sector but would also encompass the entire project as a whole.

(iii) The proponent shall prepare a common EIA report covering all the sectors comprehensively and hold public hearing based on the EIA report so prepared, for each component as per provision of EIA Notification, 2006.

(iv) After the EIA report has been prepared and public hearing has been held, the proposals for environmental clearance in respect of all the sectoral components of the project shall be submitted simultaneously.

(v) The respective EACs will consider the sector specific proposals based on the common EIA report and will make their recommendations relating to that particular component. However, in doing so, the overall impact of the project as a whole will also be considered.

(vi) After the proposals relating to the various components have been considered by the respective EACs and their recommendations made, these proposals will be processed on individual files for obtaining simultaneous approval of the Competent Authority.

In the registration of Foreigners Rules 1992, for Form D and the entries relating thereto, a new Form D and entries are proposed to be substituted.

The Telecom Regulatory Authority of India (TRAI) today issued a Consultation Paper on issues related to the Interconnection Regulation in non-addressable Cable TV Sector.

The Interconnection agreements in non-addressable cable TV sector, which are governed by the Telecommunication ( Broadcasting and Cable Services) Interconnection Regulation 2004, amended from time to time, are based on negotiated subscriber base which has not been effective at the ground level resulting in a number of disputes between the service providers. The Authority has felt the need for effecting certain amendments to the interconnection regulation to address the issue.

The Consultation paper discusses the extant regulatory provisions and a possible solution to the issue. Stakeholders are requested to offer their valuable comments by 15th January 2011 and counter-comments by 20th January 2011.