TaxTMI 
TaxTMI 
Procedure regarding Duty Free Shops
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....ccordingly, 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....
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....ing the month, shall be filed by the licensee in Form A appended to this circular. The Return may be filed as a paper copy or in digital form, as preferred by the licensee (digital form means, such as, in a Pen drive or CD). The Return need not include details of sales to individual international passengers. These can be verified by the bond officer or any authorised officer, from the digital records maintained by the licensee. (c) The monthly return to be filed by the licensee as per para 4 (a) (ii) shall be filed in Form B appended to this circular. The Return shall be filed with the Bond officer as a paper copy. (d) The Duty Free Shop Operator shall also maintain digital records of sales to international passengers as p....
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....14th of 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 systems but due to the requirement of maintaining the bond register, records are being reduced to manual form to comply with prescribed columns. Now that a system of computerised record keeping has been prescribed, the information regarding the stock of goods lying deposited in the warehouse can be integrated into the digital record prescribed under this circular. It is clarified that data relating to goods already removed from the warehouse by 13th May 2016, are not requi....
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....e. Every duty free shop shall record their sales to passengers by a computer generated invoice, which shall contain the name of the passenger, flight number and passport number. This data shall be stored digitally, in Form C. f. The records of the warehouse shall be updated every 24 hours with the data elements contained in Form C. 9. Security and Solvency Requirements: The Board has dispensed with the 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 d....
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....ber. The data relating to the in-flight sales has to be provided by the Airlines to the in-flight duty free shop operator immediately upon return of the aircraft to India. In turn, the operator shall update the electronic records to co-relate with goods removed from the warehouse. 11. Recovery of costs: Clause (e) of Regulation 3 of the Special Warehouse Regulations 2016 and circular no. 20/2016 - Customs dated 20th May 2016 provide that the Licensee of a special warehouse shall undertake to bear costs of customs supervision on Merchant Over Time basis or on Cost Recovery. Now, the Board has approved the following guidelines: a. The Licensee shall have to indicate the frequency with which the warehouse has to be operated per ....