The Hindu Business Line : Duty-free shops for diplomats

New Delhi, Sept. 4 In a move that could enable diplomatic community in the metros to buy duty-free products off-the-shelf, Flemingo Duty Free Shop is proposing to operate duty-free outlets outside the airports, exclusively for the diplomatic corps.

In keeping with global practices these outlets would function just like a commissary.

The company – which runs such outlets in Sri Lanka, the UAE and the African subcontinent, has applied to the Foreign Investment Promotion Board (FIPB) for sanction to operate specific duty free shops in India for diplomats.

The company plans to provide the items of daily usage including fashion accessories, electronics, liquor, food items, toiletries and tobacco amongst others, sources said adding that Flemingo hopes to leverage its existing relationship with various brands to negotiate better rates while stocking-up the outlets.

“As part of the growth strategy, Flemingo Duty Free Shop wants to extend services of operating such shops, in metro cities having diplomatic community. It will be an extension of the company’s current operations as there is already an established supply chain in place,” sources said adding that the permission sought from FIPB is more of a blanket permission and the company would require separate permission from custom for each location. Currently, such products are procured through various routes based in the country.

In certain countries such commissaries are self-operated by embassies, while in certain other countries even United Nations agencies procure these goods, sources said. Members of diplomatic community are entitled to duty free goods as per stipulated allowance.

“Such stores would offer certain benefits as diplomats sometimes find that certain products are not available or at times the products are available only after a long wait. Under the proposal, these products will be readily available at these duty free shops. The company is also looking at issuing smartcards to facilitate purchases, if the proposal gets FIPB nod,” sources said.

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