Duty-free shops face the heat

New Delhi: Airports in US, UK & Europe to confiscate goods bought from duty-free shops in India. Airports in the United States, the UK and other countries of Europe have decided to confiscate goods bought by passengers from duty-free shops in India, ostensibly as a security measure.
This threatens to put out of business the duty-free shops operating in over 15 airports in the country. With duty-free sales falling by over 40 per cent, the Indian Duty Free Association - which represents companies running shops in duty-free areas - has approached the ministry of civil aviation demanding that India take a 'quid pro quo' action to protect them against such discrimination.
Top sources said the civil aviation ministry is planning to approach the external affairs ministry to take up the matter through diplomatic channels.
The association has pointed out that the foreign countries move was mainly intended to protect the interest of their own duty-free shops, which are facing declining sales partly because of security threats at airports and also owing to cheaper prices offered at airports of developing countries such as India.
Duty-free shops clock an annual business of over Rs 500 crore and 70 per cent of their turnover comes from passengers departing from India, who find prices here much cheaper than those abroad.
06/05/07 Surajeet Das Gupta/Business Standard

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Categories: Airports May 2007, Foreign May 2007