TaxTMI 
TaxTMI 
Procedure regarding Duty Free Shops
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....ons, 2016 prescribe maintenance of a computerized system for accounting. Accordingly, a system of accounting of receipt, storage, operations and removal of goods with regard to Duty Free Shops is prescribed below: 3. Maintenance of records of warehoused goods only in digital form: (a) Every licensee shall maintain electronic records of receipt, handling, storage and removal of the warehoused goods based upon data elements contained in Form A appended to this circular. While the data elements contained in the Form are mandatory, the licensee will be free to add or continue with any additional data fields, as per their commercial requirements. It would be necessary for the data to be maintained as per systems of "stock keeping unit" (SKU). (b) All licensees are required to enter data accurately and immediately upon the goods being deposited in or removed from the warehouse. Such electronic records should be kept updated, accurate, complete and shall be available at the warehouse at all times so as to be accessible to the bond officer or any other authorised officer, for verification. (c) The software for maintenance of electronic records must incorporate the feature of au....
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....the licensee shall, send an acknowledgement of such receipt, duly signed by the bond officer, as follows: (i) in case where goods are received from a customs station, to the Assistant/Deputy Commissioner in charge of the Bond section at the Customs station of import; or (ii) in case where the goods are received from another warehouse, to the proper officer of the warehouse from where the goods have been received. 6. Facilities: In view of the requirement in the regulations to retain photocopies of documents such as bills of entry, transport documents and Form for transfer of goods from a warehouse, send acknowledgement of receipt of goods in the warehouse etc., the licensee shall maintain facilities such as computer, photocopier, scanner and printer at the warehouse. 7. Effective Date: The above requirement of maintaining digital records, in the prescribed Forms, is applicable from the 14th May 2016. Thus, the record of any goods received on or after 14th May 2016 shall be maintained as per the prescribed Forms. However, during the consultations with Duty Free Shop Operators, it was gathered that they are already maintaining records in software based s....
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....requirement of security to be furnished under section 59 of the Customs Act, 1962 by a DFS operator in respect of his imports (Circular No.21/2016-Customs refers). 9.1 As regards requirements of solvency, as provided under clause (b) of regulation 3 of the Special Warehouse Licensing Regulations 2016, the Board has decided that the Licensee shall furnish a solvency certificate of a value equivalent to the amount of duty involved on the goods proposed to be stored at any point of time. In this connection, it may be noted that proviso to the aforesaid clause, waives the requirements of a solvency certificate in respect of the PSU owned duty free shops (for example, ITDC). 10. In-flight duty free shop: Requests have been received for clarifying whether the existing business practice of inflight duty free sales can be continued by Airlines. 10.1 The removal of goods from the warehouse licensed under section 58A of the Customs Act, 1962, without payment of duty, is subject to the condition that the goods are removed to the customs area for sale to passengers arriving into or departing from India. In other words, as long as the said goods are sold to passengers arriving from ....
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....t thereof, the licensee shall have to undertake the services on cost recovery basis. Further, in cases where the licensee requires services of a customs officer for more than once in a day, he shall have to undertake supervision on cost recovery basis. Similarly, in case where round the clock services are requested, the licensee will have to bear charges on cost recovery basis for a suitable number of officers. Basically, this issue has to be examined on the above lines for deciding the recovery of costs from the licensee. 12. Administrative arrangements: For the purposes of uniformity of jurisdiction and supervision, the Board has also approved the following: a. The duty free shops shall be under the general supervision of the Principal Commissioner/ Commissioner of the Airport (Passenger Terminal). b. A warehouse licensed in the precincts of the Airport complex shall also be in the jurisdiction of the Principal Commissioner / Commissioner of the Airport (Passenger Terminal). Accordingly, he shall be the licensing authority. c. A warehouse licensed under section 58A, which is located outside the precincts of the airport shall be under the Principal....