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Govt. of India
Ministry of Finance
Dept. of Revenue
Central Board of Excise & Customs
North Block, New Delhi
Circular No. 31/2016-Customs
Dated 6th July 2016
All Principal Chief Commissioners Customs,
All Principal Chief Commissioners of Customs & Central Excise,
All Chief Commissioners of Customs,
All Chief Commissioners of Customs & Central Excise,
All Directors General, Chief Departmental Representative,
All Principal Commissioners of Customs,
All Principal Commissioners of Customs & Central Excise,
All Commissioners of Customs,
All Commissioners of Customs & Central Excise.
Subject: - Sale of goods at Duty Free Shops in Indian Currency
Sir / Madam,
Please refer to Circular No. 495/7/2005–Cus VI dated 28th September
2005 regarding the ceiling in payments in Indian currency of Rs. 5000/-
for purchases by passengers at duty free shops at International Airports.
2. RBI has vide
Notification no. FEMA 6 (R)/RB – 2015 dated 29th
December 2015 permitted export from and import into India of Indian
currency up to an amount not exceeding Rs. 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 Rs. 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 Rs.
25,000/-.
3. In view of the aforesaid regulations notified by the RBI, the Board has
reviewed the circular dated 28th September 2005. It has been decided that in
consonance with the regulation of the RBI, passengers shall be permitted to
purchase goods at duty free shops in Indian rupees up to an amount not exceeding
Rs. 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 Duty Free Shop operators. It was explained that CBEC has
provided the facility of duty free procurement of excisable goods by Duty Free
shop operators and the procedure has been prescribed under
circular no.
970/04/2013-Cx dated 23rd May 2013 read with
Notification
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 were
agreeable to implementing the above measures.
5. Accordingly, Principal Commissioners / Commissioners of Customs may advise
the Duty Free Shop operators of the revised permitted limits for purchase of
goods in Indian currency at Duty Free shops. Information relating to the use of
Indian currency at duty free shops should be displayed at all DFSs. It may be
ensured that DFSs display the rate of exchange as 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. Similarly, websites
of DFS / Airports must be kept accurately updated with regard to the facility
and limit in use of Indian currency for making purchases. It may also be ensured
that duty free shop operators are familiarized with the procedures for procuring
excisable goods, duty free, from factories in terms of the 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 Board.
7. Hindi version follows.
Yours faithfully,
(S. Kumar)
Commissioner (Customs & EP)
F.No: 473/05/2015–LC
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