Sale of goods at Duty Free Shops (DFSs) in Indian Currency - Customs - PUBLIC NOTICE No. 23/2016

OFFICE OF THE COMMISSIONER OF CUSTOMS NEW CUSTOMS HOUSE, PANAMBUR, MANGALURU 575010 C No. S-26/04/2016 Cus Tech. Date: 08.08.2016 PUBLIC NOTICE No. 23/2016 Subject: - Sale of goods at Duty Free Shops (DFSs) in Indian Currency-reg. Attention of all the Importers/Exporters, Customs Brokers, Duty Free Shop (DFS) operators and the members of the Trade is invited to the Board s Circular No. 31/2016- Customs dated 06.07.2016 on the above mentioned subject. 2. It may be noted that RBI vide notification No. FEMA 6 (R) / RB 2015 dated 29 th December 2015 permitted export from and import into India of Indian currency up to an amount not exceeding ₹ 25,000/- (Rupees twenty five thousand) per person. Any person resident in India is permitted to take outside India (other than to Nepal or Bhutan) or bring into India (other than from Nepal or Bhutan) currency notes up to an amount not exceeding ₹ 25,000/-. Similarly, any person resident outside India, not being a citizen of Pakistan or Bangladesh and visiting India, has also been allowed to take outside India or bring into India, Indian currency notes upto an amount not exceeding ₹ 25,000/-. 3. In view of the aforesaid regulations notified by the RBI, the Board has reviewed the circular No. 495/7/2005-Cus VI dated 28th September 2005, regarding the ceiling in payments in Indian currency of ₹ 5000/- for purchase by passengers at duty free shops at International Airports. In consonance with the regulation of the RBI, it has been decided that passengers shall be permitted to purchase goods at DFS in Indian rupees up to an amount not exceeding ₹ 25,000/-. 4. Representations have also been received from travelers that duty free shops neither display prices in Indian Rupees nor display India made goods at duty free shops, which depreciates the visibility of Indian manufactured products and Indian currency. This issue was discussed during the course of consultations with DFS operators. It was explained that CBEC has provided the facility of duty free procurement of excisable goods by DFS operators and the procedure has been prescribed under circular No. 970 / 04 / 2013-Cx dated 23rd May 2013 read with notification No. 7/2013 C.E(NT) dated 23rd May 2013. They were also requested to display prices of goods in Indian currency alongside of international currencies. It was also suggested that as a measure of transparency and fair practice, they should display the rate of exchange published by the commercial banks for conversion of foreign currency or the rate of exchange notified by the CBEC on a fortnightly basis for import and export of goods. The Industry representatives have consented to implementing the above measures. 5. Accordingly, DFS operators are advised about the revised permitted limits for purchase of goods in Indian currency at DFSs. Information relating to the use of the Indian currency should be displayed at all DFSs. It may be ensured that DFSs display the rate of exchange notified by the CBEC on a fortnightly basis for import and export of goods. Similarly, the website of DFS/Airport must be kept accurately updated with regard to the facility and limit in use of Indian currency for making purchases. DFS operators should be familiarized with the procedures for procuring excisable goods duty free, from factories in terms of procedure prescribed from time to time. The display of prices of goods by DFSs in Indian Rupees should also be complied with at the earliest. 6. Difficulties, if any, may be brought to the notice of the undersigned. (Dr .M. SUBRAMANYAM) COMMISSIONER OF CUSTOMS