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This is an archive article published on June 4, 1998

Red channel 12.4% costlier

MUMBAI, June 3: Baggage at international airports looks all set to be routed predominantly through the green channel with the Finance Minist...

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MUMBAI, June 3: Baggage at international airports looks all set to be routed predominantly through the green channel with the Finance Minister raising the baggage allowance limit to Rs 12,000 from the current Rs 6,000.

However, while the number of passengers coasting past the green channel is likely to show a marked increase, those few going through the red channel will now pay duty at 67.4 per cent, up from the earlier incidence of 55 per cent.

As of last year, the duty structure on imports by passengers seeking clearance through baggage hall was 50 per cent basic on which five per cent additional duty was recovered on the value of dutiable goods. Now, according to the new provision, eight per cent non-modvatable duty will be extended to baggage imports, to be recovered after adding the first two duties on the value of goods. Thus, the duty payable amounts to 67.4 per cent — an extra 12.4 per cent — on the value of dutiable goods.

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The raising of the baggage allowance limit coupled with the freerinflow of goods as a result of liberalisation is also expected to reduce the scope of examination of passenger baggage brought in from marked `sensitive’ sectors.

With the result that the emphasis is likely to be on identification of `sensitive passengers’ than on sectors.

Sources said the new scheme also envisaged fewer staff employed for preventive work.

Preventive staff will be required to be more vigilant to trace false declarations depending on specific information or specific suspicion, they added.

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