The Central Board of Excise and Customs, has recently issued a Circular instructing the officials to ensure that the dealers are displaying prices of goods in Indian currency alongside of international currencies.
The Circular further increased the purchase limit of goods from duty-free shops from Rs. 5,000 to 25,000. Earlier, RBI, vide Notification no. FEMA 6 (R) / RB – 2015 dated 29th December 2015 has permitted export from and import into India of Indian currency up to an amount not exceeding Rs 25,000/- per person. As per this Notification, 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/-. In consonance with the above notification, CBEC has now issued the present Circular allowing a passenger at international airports to buy items worth Rs 25,000 from duty-free shops across the country.
The Circular also states that “”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.”
In view of the above, the officials are also instructed to 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.
Read the full text of the circular below.
