Duty free refers to items purchased at designated stores that are exempted from certain taxes and duties, such as import tariffs or value-added tax.
Qualifying Purchases:
- Duty-free allowances typically apply to merchandise bought in airport/seaport stores before fully entering a country.
- Minimum purchase threshold values may be set with limits on alcohol/tobacco quantities.
Sales Incentives:
- Exemptions from duties and sales taxes on permitted items make prices competitive for last-minute travelers’ shopping needs.
- Prominently located airport shops drive casual purchases from time-rich captive customers.
Example:
By carrying a few bottles of gin and whisky acquired duty-free during her flight stopover, the visitor estimated saving 30% versus the higher local prices after clearing customs controls.
Key Takeaway:
Duty-free concessions aim to boost retail revenues for airports and ports while encouraging passenger spending via tax breaks useful to transiting tourists and global gift-givers.