Duty Free Shops at Airports to Sell Indigenous Goods - duty free
YOU must have seen those fabulous Duty Free Shops in the International airports, stocked with all kinds of attractive foreign goods, especially liquor. A passenger going abroad or coming from a foreign country can buy these goodies without customs duty and the incoming passenger can clear those goods without duty within his available limits as per the baggage rules.
But why can't these shops sell Indian goods too? It seems the Government has received representations requesting to permit excise duty-free sale of goods manufactured in India both on the arrival side as well as the departure side so as to ensure parity with the imported goods and to promote brand INDIA.
And this is exactly what the Government allowed. Now instead of buying a foreign TV from the Duty Free Shop, you can perhaps buy an Indian TV without excise duty.
The Government yesterday issued notifications so as to allow excise duty-free sale of goods manufactured in India to international passengers or members of crew arriving from abroad at the Duty Free Shops (DFSs) located in the arrival halls of international airports and to passengers going out of India at the DFSs located in the departure halls of international airports in the country. Directions have also been issued to specify the procedure for removal of the goods from the factory of production without payment of duty to godowns or retail outlets of DFSs and related matters. Details are:
1. Notification No. 145/1989-Central Excise, dated the 19th May, 1989 rescinded: Even at present, certain electronic goods are allowed to be cleared without payment of excise duty to duty free shops at airports. As the benefit is extended to all goods, this notification is no more valid and is thoughtfully rescinded. - Notification No. , Dated: May 23, 2013.
2. Excisable Goods cleared to Duty Free Shops at airports exempted: Government has exempted all excisable goods (indigenous goods) when brought into duty free shops located in the arrival halls at the International Customs Airports from the factories of their manufacture situated in India for sale to passengers or members of crew arriving from abroad , from the whole of the duty of excise leviable thereon, subject to certain conditions and following certain procedures. - Notification No. , Dated: May 23, 2013.
3. Duty Free Shop treated as an export warehouse: Government has extended the facility of removal without payment of duty to all excisable goods intended for storage in a godown or retail outlet of a Duty Free Shop in the Departure Hall or the Arrival Hall, of International Airport, appointed or licensed as "warehouse” under Section 57 or 58 of the Customs Act, and for sale therefrom, against foreign exchange to passengers going out of India or to the passengers or members of crew arriving from abroad, subject to limitations, conditions and safeguards as may be specified by the Central Board of Excise and Customs. - Notification No. , Dated: May 23, 2013.
4. Officers of Customs in DFS appointed as CE Officers : Government has appointed Officers of Customs under whose jurisdiction the godowns and retail outlets of Duty Free Shops at the International Airport are located, to be Central Excise Officers. – Notification No. , Dated: May 23, 2013.
5. No Need of registration of the warehouse: where a godown or retail outlet of a Duty Free Shop is appointed or licensed under the provisions of sections 57 or 58 of the Customs Act, such godown or retail outlet shall be deemed to be registered as warehouse under rule 9 of the Central Excise Rules, 2002. – Notification No. , Dated: May 23, 2013.
6. Procedure governing the movement of excisable indigenous goods to the Warehouses or retail outlets of Duty Free Shops: CBEC has given detailed procedure on Registration, removal from factory, invoice, examination, Demand etc,.. The procedure is so cumbersome and complicated that no manufacturer or Duty Free Shop owner will follow it. ‘Brand India' cannot reach the airports this way - CBEC Circular No. 970/04/2013-CX , Dated: May 23, 2013.