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Circular No. 50/2017-Customs

F. No: 473/07/2017-LC
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

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North Block, New Delhi
Dated 18
th December 2017


To,
The Principal Chief Commissioners/Chief Commissioners/
The Principal Commissioners/Commissioners of Customs


Subject:- Sale of goods and display of prices at duty free shops in Indian currency
– amendment of circular 31/2016 - Customs dated 6
th 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 -
(i) Instructions contained in para 2 and 3 of circular 31/2016 dated 6
th 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)