Whenever you pass through a major airport, you’re likely to see a duty-free shop. But is it a good idea to shop there? How does duty-free airport shopping work, anyway? Read on to learn more.
by staff writers / June 3, 2019
Duty-free airport shopping can vary depending on where in the world you are and where you’re headed. Making savvy duty-free purchases can save you money if you purchase the right products in the right airports. Learn about what you can buy in duty-free shops and which airports offer the best duty-free shopping.
How does duty-free shopping work in airports?
Governments charge taxes or fees on many products, especially luxury goods. If you’re buying an item in one country and transporting it to your home country, you may also be charged a customs fee, known as “duty”. Because of this, you could easily end up paying taxes (or the equivalent fees to the government) twice: once in the country where you make the purchase, and again in your home country.
Duty-free shops let you avoid some of these fees. At duty-free shops in international airport terminals, the taxes or fees that the country you’re in would normally levy on the items being sold are waived. That can result in some significant savings for you on luxury items.
If you’re about to leave a country that has very high VAT (value-added tax), your savings could be significant. Sweden and Denmark, for example, charge 25 percent VAT on virtually all purchases, so picking up an item in a duty-free shop as you leave the country could result in some real savings.
Here’s an example: Let’s say you’re in Scotland, where you purchase 300 USD worth of fine Scotch in the Edinburgh duty-free shop. Because you bought that Scotch in the duty-free shop, you don’t pay any UK taxes or fees on it.
A heads up, though. Buying at a duty-free shop only waives the taxes and fees imposed by the country you’re flying out of. You might still have to pay some form of customs fees for importing those luxury goods into your home country.
Let’s follow that fine Scotch to its final destination. If you’re flying home to New York City, for instance, you might be charged duty for bringing that Scotch into the country. A U.S. citizen enjoys an exemption of 800 USD on items purchased abroad and brought through customs. But there are specific limitations on certain types of goods. If you’re bringing no more than 1 liter of alcohol into the country, it’s duty-free (up to that cap of 800 USD). But you’ll have to pay duty on any alcohol over 1 liter, even if your total purchases are less than 800 USD. If you’re bringing in more goods and surpass that 800 USD exemption, you can expect to pay duty on the amount exceeding 800 USD.
As you plan your duty-free shopping, remember that each person in your party carries an individual exemption. Many countries, including the U.S., allow you to bundle those exemptions together. If you’re an American citizen buying a fine watch worth 1500 USD, you could combine your exemption with that of your spouse to avoid paying customs when you arrive at your home airport. Even infants and children carry that 800 USD exemption (though they’re not allowed to import tobacco and alcohol until they’re of legal age to use them).
Each country sets its own rules regarding customs and duty. The rules can even change depending on what country you’re traveling from. For example, those living in the U.S. can bring in up to 1600 USD worth of goods duty-free from American Samoa, Guam or the U.S. Virgin Islands — and you can bring in up to 5 liters of alcohol duty-free, making your trip a great opportunity to stock up on that Caribbean rum. Make sure you check the rules for your home country before you start spending at duty-free shops.
In addition, some items are always duty-free. In the U.S., for example, these include furniture and fine art. Again, review your home country’s rules before you start shopping — and save all your receipts to present to the customs officials as you arrive at your home airport.
One often-asked question is whether you can buy duty-free on domestic flights? Unfortunately, the answer is no. Duty-free shopping only applies when you’re bringing goods brought overseas into your home country.
What can you buy in duty-free shops?
In general, the best choices for duty-free shopping are those items that are most highly taxed. Liquor and tobacco tend to offer the best deals because they’re usually highly taxed.
Other items you’re likely to find in many duty-free shops include perfumes, gourmet chocolates (especially from Switzerland), electronics, cosmetics, and other beauty items. Many duty-free shops also sell high-end sunglasses and other fashion accessories, and you may also discover some significant luxury watches for sale.
Different duty-free shops carry different items and brands. If you’re looking for a specific type of, say, French wine, you may be more likely to find it in Paris than in Singapore — but it could also be waiting for you unexpectedly in Hong Kong. If you want to make the most of your duty-free shopping opportunity, do a little research to find out which duty-free chains populate the airport you’re flying from and what brands the shops carry, so you can plan ahead.
Is duty-free shopping a good deal?
Are duty-free shops really cheaper? The answer is: sometimes.
The savings you reap from duty-free shopping depend largely on what you’re buying and where you’re buying it. Bear in mind in many cases that you’re not necessarily paying lower prices at the duty-free shop than you would pay for liquor or tobacco at any shop outside the airport. Your savings often come from not having to pay the tax in the country of purchase.
Some items tend to be overpriced in airports, particularly leather goods, sunglasses, and sometimes fine watches. The savings you might garner from saving on taxes might be wiped out by the higher price you pay. Understanding what a good price is for the item you’re considering can help you make wise purchases.
Sometimes, though, you may be able to combine lower prices with duty-free savings to find some real deals. For example, if you know you want to buy a certain laptop and you plan to pass through some international airports, research to see the prices. You’re likely to find some price points that are lower than you’d pay in your home country — and the added tax savings could save you hundreds of dollars.
Prices at duty-free shops can vary on a daily basis depending on the fluctuation of currency exchange rates. This can work in your favor. Your savings can be amplified if you’re making your purchase in a currency that’s weaker than your home currency.
Many people like to browse duty-free shops just to use up the leftover currency they have as they leave a country. If that’s your plan, and you don’t intend to buy much, you can probably make some impulse buys — though keep in mind that souvenirs tend to be overpriced in airports compared to the price you’d pay in the city. If you truly want to save money on your purchases, however, be prepared to research prices in advance.
Airport duty-free shops typically post their prices online. In addition, websites such as Duty Free Addict provide valuable pricing information and let you compare prices across multiple duty-free shops in various cities and countries. If you’re considering a significant duty-free purchase, you can access these websites via your smartphone to reassure yourself that you’re getting a deal (or to warn yourself away).
Best airports for duty-free shopping
Airports in Asia are particularly known for their duty-free shopping opportunities, with Incheon Airport in South Korea racking up the most in duty-free sales. Take a look at what’s available around the world so you can plan your duty-free shopping as you travel.
Duty-free shopping in Asia
Incheon International Airport
More than 90 designer fashion stores abound at this South Korean airport, including Burberry, Chanel, Louis Vuitton, Rolex, and more, with plenty of savings available. Save time by placing your orders in advance and picking them at designated spots throughout the airport — or do your duty-free shopping at in-town retailers that will then ship your purchases to the airport for you to retrieve. A special category in Incheon is beauty products, specifically skin masks from popular brands including Skin Food and Innisfree.
Hong Kong International Airport
If you’re used to seeing only luxury goods in duty-free shops, Hong Kong International Airport‘s shopping opportunities may surprise you. Sure, the high-end items are available in abundance — In fact, many duty-free mavens plan to arrive at the airport long before their flight checks in just to shop. But you’ll also find books, travel accessories, casual clothing, and a wide range of electronics available. Check out the airport’s online pricing guide to make sure you’re getting a fair price compared to what you’d pay in town.
Singapore Changi Airport
You’ll find some serious deals at this airport in Singapore, a citythat’s already known for shopping. Look for real discounts on cameras, electronics, alcohol, and especially cosmetics. Using the online pre-order service at iShopChangi lets you save time so you can focus on browsing for unexpected treasures.
This 24/7 duty-free shop is open to arriving passengers as well as those flying out of Iceland. Check out the wide selection of Icelandic alcohol, candies, and cosmetics, almost all of which are 50 percent cheaper than the prices you’ll find outside the airport. (That combination of features means arriving passengers can buy a bottle of Icelandic schnapps to enjoy in your hotel).
Heathrow International Airport
With more than 500,000 square feet of duty-free shopping, you’re likely to find some good deals here in London’s Heathrow Airport. Look for British designers and stores in Terminal 5 — Cath Kidston, Harrods, Paul Smith, and yes, a Harry Potter shop — and head to Terminal 3 to find 40 high-end international designer brands. More than 17,000 individual duty-free items are for sale at any given time, and you can order your purchases in advance so they’re ready for a quick pick-up if your timing in the airport is tight.
Charles de Gaulle Airport
It’s no surprise this Parisian airport is packed with shops representing the country’s best-known designers, including Chanel, Dior, Hermès, Yves Saint-Laurent, and Louis Vuitton. Look for discounts of about 12 percent, thanks to the duty-free rates. French wine and perfume are also available here at significant savings, and you aren’t limited to the size of perfume bottle you carry on. You can even purchase duty-free cheeses and foie gras packaged for import. (If you’re considering bringing food into your home country, check to see what items are acceptable).
Duty-free shopping in the Middle East
Dubai International Airport
Dubai is one of the largest airport shopping destinations in the world. You’ll find a wide variety of alcohol, cameras, cigars, cosmetics, and watches in the duty-free shop, as well as all the familiar brands of electronics, including laptops and smartphones. Dubai is a great place to buy gold (in the form of chains, jewelry, watches, pens, and more) at very reasonable price points, as well as oil-based fragrances such as the famous Arabian Oud.
If you should pass through the Dubai International Airport on December 20, which is the anniversary of its duty-free shops, expect to reap discounts of up to 25 percent. In addition, the duty-free shops regularly run lotteries with cars and cash as prizes.
As you leave the airport at your final destination with all those duty-free shopping bags in hand, it’s nice to know that the final leg of your journey will be smooth and hassle-free. Book a reliable Blacklane car service to travel to and from the airport in comfort and style.
Does it save money? Duty-free shopping can yield big savings, although this depends on various factors such as the type of goods you are looking to buy and local exchange rates. This means that duty free shopping can lead to a considerable amount of savings on your purchases if you know how to do it right.
Does it save money? Duty-free shopping can yield big savings, although this depends on various factors such as the type of goods you are looking to buy and local exchange rates. This means that duty free shopping can lead to a considerable amount of savings on your purchases if you know how to do it right.
The truth is, for a lot of products, there isn't always much difference between duty-free and the prices you can get at home — especially if you're prepared to hunt online. The key differentials are tobacco and alcohol, which are both usually taxed heavily and therefore can be bought for a lot less at the airport.
Duty-free shopping allows travelers to purchase items without paying tax on them. In the EU, products purchased in-between countries are taxable, but items you buy while traveling to, or away from, an EU country are duty-refund, and travelers can apply for a refund of the taxes they paid on such products.
It all comes down to taxes. Duty-free stores allow outgoing travelers to shop without being taxed locally, so you can purchase select items without paying a duty so long as you transport them across international borders, per U.S. Customs and Border Protection.
Who is eligible to purchase duty free? All international travelers are eligible to purchase items that are duty free. Who is eligible for duty free prices? All travelers flying internationally are eligible to save on duty.
Shopping designer bags like Chanel, Louis Vuitton or Hermes at Airports are usually the cheapest. It's far better than shopping at the retail stores in the cities.
The Points Guy found that overall, the cheapest international airports for duty-free shopping are the Kuala Lumpur International Airport, the Singapore Changi Airport and the Owen Roberts International Airport in the Cayman Islands. The most expensive international airport is in Santorini, Greece.
If you open it at the gate or onboard, airline staff will confiscate your purchase, empty the liquor or perfume and throw out your candy or tobacco. Your goods will meet the same fate if you show up at your final destination and a customs agent sees that you've opened the bag or its contents.
In most cases, travelers are permitted to bring up to $800 worth of merchandise back to the United States without having to pay duty. (Numerous exceptions apply.) Keep in mind that only one liter of alcohol, 200 cigarettes, and 100 cigars may be included in this exemption.
The amount of import tax and duties to be paid depends on the country from which the goods are imported. Duty tax rates are between 0 to 37.5% with the typical rate being 5.63%. A flat rate of 3% applies to e-commerce purchases that are in excess of the US import tax threshold limits.
All duty free bags or airport purchases count as hand baggage so if you have more than your free allowance, your extra bags will be checked into the hold.
You can take duty free liquids onboard your flight to the US. If you'll be transferring to an onward connection after landing in the States, you should pack your duty free liquids into your hold baggage at the transit point (take care not to exceed your baggage allowance in doing so, though).
It is privately held and majority owned by the luxury conglomerate Moët Hennessy Louis Vuitton (LVMH), alongside DFS co-founder and shareholder Robert Warren Miller. As of January 11, 1997, DFS Group operates as a subsidiary of LVMH.
No, the limit is a total amount you can bring in, regardless of where or when on your trip you bought them - so if the limit is 200, and you've got 100 left from your outbound trip, you can buy another 100 on the way back to take you back up to 200. 2.1 Am I entitled to any duty-free allowances? Yes.
The U.S. Customs and Border Patrol (CBP) site says this: Generally, one liter of alcohol per person may be entered into the U.S. duty-free by travelers who are 21 or older, although travelers coming from the U.S. Virgin Islands or other Caribbean countries are entitled to more.
You can claim goods worth up to CAN$200. Tobacco products and alcoholic beverages are not included in this exemption. If the value of the goods you are bringing back exceeds CAN$200, you cannot claim this exemption. Instead, duty and taxes are applicable on the entire amount of the imported goods.
The low tax factor is one of the key reasons why luxury goods are much cheaper in Hawaii compared to other parts of the United States. As there is no state sales tax on these items, retailers are able to lower their prices significantly and still make a profit.
Bottom Line. It is substantially cheaper to buy luxury products from brands like Louis Vuitton, Dior, or Gucci in Paris, their prices being on average between 30% and 40% cheaper in France than in other countries, especially those outside the European Union.
The complex, constructed by China Duty-Free Group (CDFG), is located on the west coast of the city of Haikou, next to Xinhai port, a major transportation hub, and has a total building area of 280 000 square metres.
Dubai Duty Free has become one of the largest duty free retail operators since it was founded in 1983. The annual sales of Dubai Duty Free stood at $976 million in 2021.
You must leave the country in order to qualify for duty-free shopping, often for a minimum span of time. In the United States, for example, you must leave the country for at least 48 hours if you wish to take full advantage of U.S. duty-free stores.
To be safe, travelers should be sure to purchase duty free alcohol at the last airport before arriving at their final destination to avoid losing it at a security checkpoint.
Be specific and answer promptly to clear customs quickly. If you're chosen for a search, customs agents will search your bags by hand or X-ray and ask you more questions about your trip.
Ensure pockets are empty (keys, tissues, currency, wallets, cell phones, etc.) and remove bulky jewelry (valuable items can be placed in carry-on). Remove your shoes and place them directly on the X-ray belt.
The UAE is just as famous for its high-end designer stores as it is for its souk bargains, so do a price comparison before you fly internationally; there's a chance that your favorite Chanel perfume or Dior sunglasses won't be as cheap in duty-free as they would be at a local shop or online.
You must declare all food products. Failure to declare food products can result in up to $10,000 in fines and penalties. The following are generally admissible: Condiments: ketchup (catsup), mustard, mayonnaise, Marmite and Vegemite and prepared sauces that do not contain meat products.
In some cases the custom officers can see if something is bought on your trip or brought by you from home, by looking at the serial number. Quite some electronic devises keep a log of serial numbers, country where it was sold, etc.
To calculate the estimated duty fee for a shipment where the fee is determined by percentage value, simply multiply the total value of the goods by the percentage that applies to their HTS code, and then divide this figure by 100.
First of all, plastic bags aren't as sturdy as backpacks, duffel bags, and other types of carry-ons. Second, your bags will still go through a security check. If people see that something is amiss, they might flag your belongings and you might still have to pay the excess baggage fees.
Most airlines allow backpacks as carry-ons, but size and weight restrictions vary depending on the carrier. Typically, the bag must be within the cabin baggage dimensions of around 22 x 14 x 9 inches (56 x 36 x 22 cm), commonly considered the standard size for carry-on.
A: It depends on the airline you are flying with. Most airlines allow passengers to bring one personal item and one carry-on bag. However, some airlines, such as Southwest and Delta, permit passengers to bring a second carry-on bag that is smaller in size and can be stored in the overhead bin.
What about if I'm travelling with duty free alcohol or perfumes? Oversized liquids purchased as duty free or tax free must be in a clear sealed, tamper proof bag with the receipt inside of the bag. If in doubt, ensure that your duty free purchases are checked in to the hold of the aircraft.
If you buy something "duty free," it means you're not paying taxes on it in the country where you purchased the item. So if you buy French wine at Charles de Gaulle airport in Paris, you are not paying taxes on it in France. But it could still be subject to taxes when you cross the border back into the U.S.
You can purchase alcohol at an airport duty-free shop with some limitations. Bottom Line: You can bring alcohol (with an ABV of 70% or lower) on an airplane in your carry-on bag if it's in containers of 3.4 ounces or less or in secure, sealed bags purchased from a duty-free shop.
There is no federal limit on the amount of alcohol a traveler may import into the United States for personal use, however, large quantities might raise the suspicion that the importation is for commercial purposes, and an U.S. Customs and Border Protection (CBP) officer could require that you comply with the ...
If the full value of your items is over 50 USD, the import tax on a shipment will be 19%. For example, if the declared value of your items is 50 USD, in order for the recipient to receive a package, an additional amount of 9.50 USD in taxes will be required to be paid to the destination countries government.
Duty-free stores allow outgoing travelers to shop without being taxed locally, so you can purchase select items without paying a duty so long as you transport them across international borders, per U.S. Customs and Border Protection.
The "duty" in duty-free refers to taxes. The duty-free shop is allowed to sell their materials exempt from various national and local taxes on the condition that the goods will be taken out of the country by international travelers. In the absence of taxes, duty-free shops are able to offer lower prices on their goods.
That perfume they're selling at the duty-free shop in the airport could very well be a fake. It's not just at the airport that you'll find counterfeit perfume, but at the airport, there's a greater chance that the retailer you're buying it from has no idea if he's selling a counterfeit version.
All duty free bags or airport purchases count as hand baggage so if you have more than your free allowance, your extra bags will be checked into the hold.
If you open it at the gate or onboard, airline staff will confiscate your purchase, empty the liquor or perfume and throw out your candy or tobacco. Your goods will meet the same fate if you show up at your final destination and a customs agent sees that you've opened the bag or its contents.
In most cases, travelers are permitted to bring up to $800 worth of merchandise back to the United States without having to pay duty. (Numerous exceptions apply.) Keep in mind that only one liter of alcohol, 200 cigarettes, and 100 cigars may be included in this exemption.
Will TSA throw away my perfume? TSA will not throw away your perfume if it meets the 3-1-1 rule and is in a clear, quart-sized bag. However, if your perfume exceeds the liquid limit or is not properly packaged, TSA may confiscate it.
The FAA limits the total amount of restricted medicinal and toiletry articles, including aerosols, in checked baggage. The total aggregate quantity per person cannot exceed 2 kg (70 ounces) or 2 L (68 fluid ounces). The capacity of each container must not exceed 0.5 kg (18 ounces) or 500 ml (17 fluid ounces).
And at a duty-free store, while being slightly less expensive than elsewhere, it's guaranteed to be authentic, which is very important when it comes to buying this one of the mostly counterfeited brands.
Please note that any items you purchase at the airport, including tax-free products, are counted as part of your carry-on baggage allowance. In addition you can bring duty-free bags and airport purchases in the cabin along with your cabin baggage.
To be safe, travelers should be sure to purchase duty free alcohol at the last airport before arriving at their final destination to avoid losing it at a security checkpoint.
Mailing and Shipping Goods - Customs Duty Guidance
Up to $1,600 in goods will be duty-free under your personal exemption if the merchandise is from an IP. Up to $800 in goods will be duty-free if it is from a CBI or Andean country. Any additional amount, up to $1,000, in goods will be dutiable at a flat rate (3%).
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