Flat panel grey market to take a hit

MUMBAI/KOLKATA: The business of "professional carriers", on a high for the last couple of years, is all set to end with the government's decision to impose a ban on duty-free imports of TVs with effect from August 25.

The business has thrived since the launch of low-cost airlines like AirAsia, Air Arabia and Air India Express connecting Indian cities to the world's leading shopping destinations such as Dubai, Bangkok, Singapore and Hong Kong.

This is how it worked: Players in the unorganized electronics industry would take advantage of cheap return flights starting from Rs 9,000 to Bangkok on AirAsia and Rs 15,000 to Sharjah and Dubai on Air Arabia and Air India Express and take dozens of their employees along. On return, they would buy high-end flat panel TVs at half the prices in India. These TVs were then sold at discounted prices in Indian grey markets like Hira Panna in Mumbai and Fancy Market in Kolkata, among others. But this was possible only because these TV imports did not attract 36% import duty.