MANU/CUCR/0050/2017

Ministry : Ministry of Finance

Department/Board : CBEC Customs

Circular No. : 50/2017-Customs

Date : 18.12.2017

Notification/ Circulars Referred : Circular 31/2016 dated 6th July 2016 MANU/CUCR/0031/2016

Citing Reference:
Circular 31/2016 dated 6th July 2016 MANU/CUCR/0031/2016  Modified

To,

The Principal Chief Commissioners/Chief Commissioners/
The Principal Commissioners/Commissioners of Customs

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

Sir/Madam,

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 -