Monday, July 09, 2007

EU duty-free buy rule irks retailers

New Delhi: A new rule by the European Union (EU) on duty-free purchases has raised strong protests from India’s duty-free retail owners.
The rule stipulates that travellers from only those airports that have gone through audit and security checks by the EU’s transport officials will be permitted to bring duty-free items they are carrying into Europe while on transit flights.
This means travellers transiting through Europe from India will not be allowed to carry duty-free items bought at Indian duty-free shops.
The Indian Duty-Free Association has already taken up the matter with the aviation ministry, asking them to reject the EU diktat.
Sales from passengers departing to foreign countries account for 70 per cent of duty-free sales in India (from 15 airports). Duty-free shops clock annual sales of over Rs 500 crore, and prices of Indian liquor and perfumes are at least 15 per cent cheaper than in European duty-free shops.
09/07/07 Surajeet Das Gupta & Anirban Chowdhury/Business Standard
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