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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No. 50/2017-Customs
North Block, New Delhi
Dated 18th December 2017
To,
The Principal Chief Commissioners/Chief Commissioners/
The
Principal Commissioners/Commissioners of Customs
Sir/Madam,
Subject:- Sale of goods and display of prices at duty free shops in Indian
currency – amendment of circular 31/2016 - Customs dated 6th July 2016 – Reg.
Representations have been received regarding lack of clarity in use of INR
credit cards/debit cards for making payments by passengers at duty free shops
located at International Passenger Terminals. It has been stated that
merchandise on display at duty free shops is denominated in foreign currency and
passengers have to bear conversion charges alongside of transaction fee and
other charges. The matter was taken up with the Reserve Bank of India and DGFT.
The Foreign Trade Amendment Order, 2017 dated 25.07.2017 has removed the
restriction on duty free shops to sell merchandise to outgoing or incoming
passengers against payment in foreign exchange. Further, the RBI has clarified
that passengers can make payments through INR Credit Cards / Debit cards at Duty
Free shops, directly in Indian Rupees.
2. In view of the Foreign Trade (Exemption in application of Rules in certain
cases) Order 2017 and clarification of RBI, it has been decided to extend the
facility of payments in Indian rupees, through INR debit cards or credit cards
at Duty Free Shops, without any need for conversion of foreign currency into
Indian Rupees.
3. Further, it has also been decided that for the effective implementation of
the above, DFSs shall, henceforth, mandatorily display the price of all goods on
sale in Indian rupees only.
4. In view of the foregoing -
(i) Instructions contained in para 2 and 3 of circular 31/2016 dated 6th July
2016 regarding ceiling in payment in Indian Currency (i.e. in cash) at Duty Free
Shops remain unaltered (i.e. Rs. 25,000);
(ii) Payments made through an INR credit card / debit card at Duty Free Shops
located in the arrival hall shall also be subject to a limit of Rs 25,000/- for
an incoming passenger;
(iii) However, payments through a INR credit card or debit card at Duty Free
Shops located in the departure hall shall be without limit for an outgoing
passenger;
(iv) Duty Free Shops shall ensure that passenger making payments through an
INR credit/debit card are not subject to paying for merchandise in foreign
currency and accordingly do not have to bear any attendant charges for
conversion of foreign exchange;
(v) Since prices of merchandise for sale at a Duty Free Shops shall,
henceforth, only be displayed in INR, any passenger desiring to make a payment
in any foreign currency, shall be charged in foreign currency by applying the
rate of exchange notified under Section 14 of the Customs Act, 1962 from time to
time;
5. Difficulties, if any, in the implementation of this circular may be
brought to the notice of the Board.
6. Hindi version follows.
(S. Kumar)
Commissioner (Customs & EP)
[F. No: 473/07/2017-LC ]
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