The Asia Pacific Travel Retail Association (APTRA) is calling on retailers around the world to take heed of the new regulations concerning inbound allowances for tobacco goods when they sell to passengers who are travelling to India.

 

Although the rules vary from one airport to another, customs authorities at several Indian airports, including Cochin and Hyderabad, are already implementing the strict new inbound duty free tobacco allowances, which were announced in July by the Central Board of Excise & Customs in Mumbai.

 

As reported, the Asia Pacific Travel Retail Association reacted with dismay at the Indian Government’s proposal to halve the duty free tobacco allowance, announced in July.

 

APTRA President Jaya Singh, who took part in TRBusiness’ Tobacco Power in Duty Free round table event in May this year (see below) said the lack of any discussion prior to announcing this proposal was especially disappointing considering the wider implications.

 

THE CONSEQUENCES…

The regulations mean that Indian airports are confiscating purchases, which exceed the new limit of 100 sticks, 25 cigars or 125 grams of tobacco per adult; or they are demanding payment of the duty on any purchase which exceeds that amount.

 

Jaya Singh, President APTRA [pictured left and above], commented: “In response to the new regulations some tobacco suppliers are considering the production of 100-stick cartons to replace the usual 200-stick cartons but, as the regulations were changed almost overnight, we are still some way off being able to offer such packs. In the meantime passengers are still buying standard 200 packs in shops all over the world and are understandably dismayed when they arrive in India and have their purchases confiscated.

 

“APTRA and its partners in the duty free and travel retail industry appeal to retailers to act responsibly and advise customers of the new limits on tobacco bound for India. This confusion is damaging the image of our entire industry and acting as a severe disincentive to passengers to shop in our stores.”

 

Tobacco Power in Duty Free – the round table event took place in May this year.

 

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THE RIGHT FACTS

Interestingly Singh told the TRBusiness’ ’Tobacco Power in Duty Free’ event (see above) that he was very concerned about the strategy moving forward to try to preserve duty free tobacco allowances.

 

Asked by Doug Newhouse what he thinks is the right route to retain the tobacco business for as long as possible, he said: “We need to arm ourselves with a bucket full of facts. Next to that what I see is a clear understanding of process when it comes to lobbying… who does what… when and how do we get the heads up as to what are the issues that are being discussed at various government levels?

 

“Can we get in early on that process so that we can arm ourselves with those facts and begin to get at the right table with the right facts?

 

For further information about the work of APTRA please consult www.aptra.asia or contact [email protected]

 

“I would say that my observation of how we’ve addressed this so far… its been like for want of a better word.. we have been reactive. So the question really is what is it going to take for us to move from a reactive mode to a proactive mode. How does process and facts fit into that?

 

“At the end of the day I think that if all we stand a chance of retaining the category – which is to your question – we need to have a fundamental shift in where we are today… primarily reactive, to that proactive stance and what does it take to do that? If we don’t have that I don’t think we have a clear strategy.”