New duty free quotas for Indian travellers
People in Dubai and the UAE travelling to India may soon face major restrictions on duty free products. The Indian Commerce Ministry recently proposed new duty free quota rules for Indian travellers, which will be applied on the purchase of cigarette cartons and alcohol from duty free shops on foreign airports.
THE PROPOSED DUTY FREE QUOTA RULES FOR INDIAN TRAVELLERS
The proposed amendment to Indian duty-free quota policy came days before the announcement of the federal budget for 2020. The Indian Commerce Ministry recommended:
- A complete ban on duty free import of cigarette cartons
- 50% cut in duty free alcohol quota (includes wines and liqueurs)
The new duty free quota rules for India-bound passengers are proposed as a counter measure for reducing the import of non-essential products and decreasing the Indian trade deficit. Once implemented, these new Indian duty free quotas would mean that passengers travelling from Dubai to India can:
- Not bring any duty free cigarette cartons to India
- Carry only one litre of alcoholic liqueurs and wines per person
CURRENT DUTY FREE QUOTAS FOR INDIAN TRAVELLERS
As things stand, the current duty free allowance for India-bound passengers permits them to buy:
- One duty free cigarette carton
- Two litres of duty free alcoholic wines and liqueur
There is also a duty-free allowance for gold that defines how much gold is allowed from Dubai to India.
THE CUSTOMS DUTY
Custom duties are applicable on anyone bringing in non-essential items exceeding the existing Indian duty free limits. Until the new duty free quota rules for Indian travellers are implemented, anyone carrying more than 2 litres of alcohol and/or 1 carton of cigarette is liable to pay the customs duty in India as detailed below.
- Beer: 100% BCD + 3% Education cess
- Whiskey: 150% BCD + 4% ACD
- Cigarettes: 100% BCD + 3% Education cess
All basic customs duties (BCD) and additional customs duties (ACD) applicable on items in excess of the duty free allowance are dictated by the Indian Customs Tariff Act, 1975.
While the implementation of this proposed new quota on duty free items for India-bound passengers is still under debate, the information will make all the difference if it’s implemented. So, if you’re planning to visit India in the near future, stay tuned to MyBayut for more updates.
Indian residents of the UAE who travel frequently back and forth between the two countries must ensure they have valid passports at all times. Apply for Indian passport renewal in the UAE before it expires to avoid trouble. Whether you’re heading out to India or any other country from Dubai, make sure your luggage does not have any of the banned items at DXB Airport. In case you find yourself stuck on a long layover in Dubai, there are several things to do at Dubai International Airport to keep you occupied.
