Advertisement

Help
You are here: Rediff Home » India » Business » Business Headline » Report
Search:  Rediff.com The Web
Advertisement
  Discuss this Article   |      Email this Article   |      Print this Article

Govt plans checks on duty-free goods from EU
Anirban Chowdhury & Surajeet Das Gupta in New Delhi
 
 · My Portfolio  · Live market report  · MF Selector  · Broker tips
Get Business updates:What's this?
Advertisement
April 07, 2008 12:35 IST

The government is all set to propose to the European Union that it will validate security procedures in its airports before allowing passengers to carry duty-free goods to India.

This is in retaliation to a similar proposal made by EU last year, which led to vociferous protests from companies operating duty-free shops in India.

The EU proposed that travellers from only those airports that have gone through audit and security checks by its transport officials would be permitted to bring duty-free items to its member countries while on transit flights.

In other words, EU officials would have to validate the security systems at Indian airports before allowing transit passengers to buy at duty-free shops here.

This had become a bone of contention with duty-free companies complaining to the Indian government that they could lose substantial business as almost 50 per cent of their revenues come from sale to passengers going to Europe.

The decision to pay the EU back in the same coin was taken at a recent meeting held between senior Ministry of Civil Aviation officials, Bureau of Civil Aviation Security (BCAS) functionaries, executives of the Delhi, Mumbai and Kochi airports and duty-free operators across the country.

In the meeting, it was decided that a letter should go to the Indian Ambassador at Brussels, requesting him to follow up on the proposal for a bilateral agreement with the European Commission for validation of security and procedures and systems at Indian Airports as well as European airports.

In the meeting, it was also decided that BCAS will now monitor all issues relating to Liquids, Aerosols and Gels (LAGs) and in accordance with International Civil Aviation Organisation guidelines.

Currently, at most international airports, a transit passenger has to carry LAGs in security tamper-evident bags in order to get through.

Powered by

 Email this Article      Print this Article

© 2008 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback