Sunday, January 13, 2008

Duty-free industry hit by govt airport policy

New Delhi: Citing security concerns, the Indian government has refused to approach the European Commission for verification of Indian airports, which in turn would have revoked the ban on carriage of the LAGs (Liquid, Aerosol and Gas) such as liquor, perfumes and deodorants from India. The government believes that any such move on its part can lead to “internal security issues” and put the country at national risk.
As per estimates by Asia Pacific Travel Retail Association (APTRA), LAGs constitute 60% of the sales (Rs 180 crore) at duty free shops in India, and government’s inaction on the issue has left the duty free industry literally in a “no man’s zone.” A senior civil aviation ministry official, who spoke with SundayET on conditions of anonymity, said that there were serious implications of opening Indian airports to the scrutiny of the European Commission as it would mean compromising on the country’s security.
It must be noted that the European Union (EU) allows passengers to buy LAGs (Liquid, Aerosol and Gas) over 100ml only from those airports, which are certified by the European Commission. The ban was imposed in May last year.
13/01/08 Aman Dhall & Dheeraj Tiwari/Economic Times
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