What does “Duty Free” mean?
The term “Duty Free” means that tax is not paid on a product. Products sold in Duty Free are exempt from taxes and excise duties, which means customers can buy them for less than they would normally pay in an ordinary shop. The most common products sold in Duty Free include perfumes, cosmetics, wines & spirits, cigarettes and chocolates.
How does Duty Free work?
Duty Free works by offering products free of taxes and excise duties only for international travellers. International travellers can buy Duty Free products when they are in transit or when they leave a country. As such, Duty Free shops are usually found in the departure or transit areas of airports and seaports, allowing travellers to shop before boarding their flight or boat. To buy products in Duty Free, travellers must present their passport and boarding pass to prove they are international travellers. Products purchased in Duty Free are then sealed, and customers cannot open them until they have left the country.
What are the benefits of Duty Free?
The advantages of Duty Free for travellers are the savings made con the products they purchase. Duty Free products are sold at lower prices than travellers would normally pay in an ordinary shop. Travellers also have access to a wide selection of premium products, such as branded perfumes, high-end cosmetics, and premium spirits.
What are the legal obligations of Duty Free?
Travellers should comply with customs rules on maximum quantities of products that can be purchased in Duty Free. Quantities vary by product and country, but travellers should be sure they stay within the limits to avoid issues when going through customs. Duty Free shops are also subject to strict security, tax and excise duty regulations. Products sold as Duty Free must be authorised for sale in the country where the Duty Free store is located, and taxes and excise duties must be paid in the country where the products will ultimately be consumed.