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Duty-free shopping refers to the practice of shopping at international ports and airports without paying import taxes on the goods you buy. Travellers can save money by using this proven strategy when making purchases abroad. 'Duty' is the fee you must pay to transport a good across international borders.
Let's understand this concept using an example.
If you decide to purchase some wine when returning from your trip to France, you might have to pay tax twice on that wine. You must first pay French taxes on the wine before paying your home country taxes to import it.
When you purchase anything 'duty-free,' you avoid paying taxes on it in the country where you made the transaction.
Now that you understand the term 'duty-free', let's see how the concept is practically applied. In an airport (or even border crossing points), you enter a kind of legal and geopolitical ambiguity after passing through security in an international terminal.
Even if you haven't gotten on the plane, it is considered that you have already left the current nation. Since you haven't yet arrived at your destination, there isn't a government in place to collect taxes on the things you buy there.
This is the reason why you can buy goods duty-free at a border crossing when you are exiting a nation. For identification, the duty-free retail employee will request to see your boarding pass.
Some of the benefits of duty-free shopping are:
Depending on the location of the airport, there are many items that you can purchase at a duty-free store. The most common items are tobacco, alcohol, perfumes and fragrances, chocolates, travel accessories and souvenirs, and fashion apparel.
In some international airports across the world, you can also buy items that the country is known for. Such as cheese and foie gras from the Parisian Airport, Harry Potter merch from the London Airport and so on.
Take a look at the list of duty-free items you can purchase at international airports:
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Disclaimer -
Your policy is subjected to terms and conditions mentioned in your policy schedule and policy wording. Please go through the documents carefully.
The information mentioned here about the countries, visa fees and others is taken from different sources. Digit Insurance is not promoting or recommending anything here. Please verify the same before you book your tickets, apply for a visa, buy a travel policy or make any other decision.
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