Policy Circular No 24 (RE 08) 2004-09
Dated 04.08.2008
Clarification regarding Payment received in (FEE) / Indian Rupees by airport
service provider for (EO) fulfilment under EPCG Scheme.
Representations have been received from Trade and
Industry seeking clarification on the above subject.
2.1 Following payments received in FFE by Airport Service Provider for the
services rendered to foreign Airlines / foreign nationals are eligible for EO
discharge under EPCG Scheme.
1. Aircraft landing and parking charges, from foreign airlines.
2. Land and space rentals, warehousing charges, demurrage charges, de-stuffing,
X-ray, carting, and packing charges from foreign airlines.
3. Common user terminal equipment (CUTE) counter charges from foreign airlines.
4. Passenger Service Fee, only for the part collected through domestic or
foreign airlines from foreign nationals alone.
5. Payment received from ground handlers by airport service provider, provided
ground handler does not count the same towards their own EO fulfillment and
gives a disclaimer to that effect under EPCG.
2.2 Following payments are not eligible.
1. Licence fee or rentals paid by Trade Concessionaires (TCs) to airport service
providers.
2. Payment received from duty free shop operators by airport service provider.
3. Security portion of passenger service fee.
4. Cargo handling service charges etc., so far as they pertain to Indian
consumer (who pays for it).
In the case of airport service provider, it may be noted that as per Para 9.53
(iv) of Foreign Trade Policy payment made by foreign airlines from their
repatriable or remittable earnings in Indian Rupees, which are otherwise
considered as having been paid for in free foreign exchange by RBI is to be
counted as free foreign exchange.
This issues with the approval of Director General of Foreign Trade.
(G. Seetharam Reddy)
Jt. Director General of Foreign Trade
(Issued from File No.01/36/218/24/AM09/EPCG-I)
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