CBEC Cicular – Duty Free Sales – Changes in Procedures





NOTIFICATION NO 19 /2013- Central Excise

New Delhi, dated the 23rd May, 2013

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944(1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as 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 which is specified in the said Schedule, subject to the following conditions, namely:-

(i) the owner of the duty free shop shall follow the procedure specified by the Central Board of Excise and Customs vide Circular No. 970/04/2013-CX, dated 23rd May, 2013, governing the movement of excisable indigenous goods to the warehouses or retail outlets of Duty Free Shops appointed or licensed under the provisions of the Customs Act, 1962 (52 of 1962) and sale therefrom to the passengers or members of crew arriving from abroad;

(ii) the passenger or member of crew arriving from abroad shall be allowed clearance of excisable indigenous goods in his bonafide baggage, free of duty, subject to the maximum permissible allowance as applicable to such passenger or member of crew under the provisions of the Baggage Rules, 1998, issued vide notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 30/1998-Customs (N.T.), dated the 2nd June, 1998, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.296 (E), dated the 2nd June, 1998, as amended from time to time;

(iii) the permissible allowance including the restrictions and prohibitions, if any, shall be determined under the said Baggage Rules read with all the Appendixes and Annexure, which shall apply, mutatis mutandis, to sale of indigenous excisable goods to passengers or members of crew arriving from abroad;

(iv) the value of goods which shall be allowed clearance free of duty to the passenger or member of crew arriving from abroad within the permissible allowance as specified under the said Baggage Rules shall include the value of excisable indigenous goods, duty free as well as the value of imported goods purchased duty free;

(v) where the value of goods exceeds the maximum permissible allowance which is allowed to be cleared duty free, the passenger or member of crew arriving from aboard shall be liable to pay duty as applicable to dutiable articles in excess of such permissible allowance imported by a passenger or a member of crew in his baggage under the Baggage Rules, 1998 read with theCustoms Act, 1962 and the rules made thereunder:

Provided that where there are any quantitative restrictions on goods to be allowed as baggage under the said Baggage Rules, the duty payable on such goods in excess of such quantitative restrictions and other consequences such as penalty, etc. shall apply mutatis mutandis to indigenous goods sold in the Duty Free Shops as are applicable under the said Baggage Rules, 1998 read with the Customs Act, 1962 and the rules made thereunder to the imported goods sold in excess of such quantitative restrictions.

[F. No. 354/192/2010-TRU (Pt)]

(Akshay Joshi)

Under Secretary to the Government of India

Tags: Central Board of Excise & CustomsCustoms ActDuty-free shopGazette of IndiaGovernment of IndiaIndiaministry of financeNew Delhi

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