The Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Act, 2002
Administered Ministry: Ministry of Civil Aviation
Act details
| Short title | The Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Act, 2002 |
|---|---|
| Long title | An Act to implement Agreements entered into by India with other countries in pursuance of the Convention on International Civil Aviation opened for signatures at Chicago on the 7th December, 1944. |
| Act number | 36 of 2002 |
| Act year | 2002 |
| Enactment date | 11 Jun 2002 |
| Ministry | Ministry of Civil Aviation |
| Jurisdiction | Central (Parliament of India) |
| Sections | 3 |
| Status | Not repealed |
| Last checked on India Code | 29 Oct 2026 |
| Source | India Code, Government of India |
Summary
Summary of the Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Act, 2002
Key Provisions
1. Short Title and Extent: - Short Title: The Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Act, 2002.
• Extent: Applies to the whole of India.
2. Definitions: - "Agreements": Refers to Air Services Agreements or Air Transport Agreements between India and other Convention parties.
• "Convention": The Convention on International Civil Aviation, Chicago, 1944.
3. Exemption from Taxes and Duties: - Provision: The Central Government may, via notification in the Official Gazette, exempt foreign aircraft from taxes and duties on fuel and lubricants supplied in India, in line with the Convention or Agreements.
• Effect of Provision: Such provisions shall have the force of law in India, overriding any contrary law.
Legislative history
Legislative History:
The Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Act, 2002
Act Title The Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Act, 2002
Act Number 36 of 2002
Act ID (India Code) 200236
Presidential Assent Date June 11, 2002
Enforcement Date June 30, 2002
Nodal Ministry Ministry of Civil Aviation
Precedent & International Rationale
1. International Obligations (Chicago Convention & Bilateral Air Services Agreements):
o India is a signatory to the Convention on International Civil Aviation (Chicago Convention, 1944).
o Under Article 24 of the Chicago Convention and standard Bilateral Air Services Agreements (BASAs) executed between India and sovereign foreign nations, reciprocal tax exemptions are mandated on fuel, lubricating oils, and spare parts loaded on aircraft operating international routes.
2. Domestic Statutory Requirement:
o Prior to 2002, central customs duties were exempted under custom notifications, but sales taxes/VAT levied by various State Governments on aviation turbine fuel (ATF) supplied to foreign designated airlines created legal ambiguities and international reciprocal disputes.
o Central legislation was necessary to give statutory effect to international obligations and enforce nationwide exemptions across state tax domains.
Parliamentary Trajectory & Enactment
• May 9, 2000: Introduced in the Lok Sabha as The Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Bill, 2000.
• May 2000 – March 2001: Referred to the Department-Related Parliamentary Standing Committee on Transport, Tourism and Culture for detailed examination and stakeholder consultation.
• Enactment: Received Presidential Assent on June 11, 2002.
• Enforcement: Enforced on June 30, 2002.
• Source: Official Records of Parliament, India Code, and Ministry of Civil Aviation.