Customs self-assessment regime introduced

The budget 2011-12 which introduced significant customs related changes also brought about one significant change relating to the assessment of goods under the Customs Act, 1962. The new Section 17 of the Customs Act mandates self-assessment of goods which may be re-assessed by the department for correctness of classification in doubtful cases. This re-assessment shall be done selectively on the basis of the Risk Management Model/System (RMS) targeting mainly the high-risk consignments. The provision for provisional assessment has however, been retained with certain consequential modifications. It must be also noted that the importers or exporters, as the case may be, must at the time of presenting the Bill of Entry, make a declaration about the correctness of the statements regarding the classification and applicable rate of duty, its value, benefit of exemption under Notifications etc.

RBI allows ECB for MFIs

The RBI has recently issued a notification considering the specific needs of the micro finance sector, allowing the MFIs to raise ECB up to USD 10 million or equivalent during a financial year for permitted end-uses, under the Automatic Route.

This notification issued by the RBI in December 2011 can be seen as a welcome change for the Micro Financing institutions and the NGOs engaged in such activities.

Read further to know about the guidelines issued on external commercial borrowing by MFIs by Reserve Bank of India. You can see the notification here.