What Is Duty Free Merchandise?

Duty-free shops are found in international hubs.

Duty-free merchandise is that which is sold without being taxed. Duty-free stores can be found around the world and typically offer products on which you would otherwise pay high taxes.

Locations

You can find duty-free shops in international airports, at seaports and in ships, at land border crossings and on passenger train routes.

Products

Liquor is sold in duty-free shops.

Typical goods in duty-free stores include wine, liquor, tobacco, jewelry, perfume, leather and cosmetics.

Misconceptions

"Duty free" doesn't necessarily mean you won't have to pay taxes on the goods when you bring them home. Unlike exports, imports are typically taxed unless certain exemption criteria is met.

Exemptions

Save money in duty-free shops.

You typically do not have to pay taxes on duty-free goods if certain conditions are met. For instance, the total value of the goods must be less than the personal exemption limit, you must have been overseas for at least 48 hours and the items must be for personal use or intended as gifts.

Expert Insight

Countries are willing to offer goods without taxes because the goods are basically being exported to another country--wherever you're going--and exports are typically not taxed.

References

• U.S. Customs: Duty-Free Exemption
• Duty-Free Americas