Why are airports duty free




















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Price is very good and quality is genuine. Great selection. Convenient location. Loyalty card. The duty free departments of many companies serve this market although it is not considered part of the mainstream duty free industry. Some jurisdictions for example in non-EU Europe, Australasia, the Middle East and Latin America offer travellers the opportunity to buy duty free goods on their arrival at their destination airport within the territory concerned.

In such places, arrivals duty free has become an important source of revenue for airports. This is notably the case within the European Union, where the sale of duty free goods to customers travelling within the EU was abolished in Duty-free shopping at airports allows international travelers to save essentially on items like liquor, tobacco, fragrances, and cosmetics.

However, at the point of payment, the cashier at the duty-free shop would ask to see a boarding pass from the passenger to verify that such a person is leaving the country because duty-free is only for international travelers. Typically, prices at duty-free shops are lower than prices outside of the duty area since all taxes and customs duties have been removed but not all the time.

Therefore shoppers should ensure they are entitled to a reduction and get the best deal before making any purchase. The duty-free exemption is also known as the personal exemption.

It is the total value of merchandise that may be brought back to the country without having to pay duty. When the exemption rate is exceeded, then duty must be paid on the extra items. The prices of goods in duty-free shops at airports depend mainly on the currency exchange rates and the location of the duty-free shops.

Duty-free shops are supposed to offer lower prices on their goods since they have been exempted from paying the duty levied on the products. However on the contrary, a lot of people are losing faith in the value of duty-free shopping because the prices they offer sometimes are costlier than online stores and shopping malls.

Hence, duty-free does not necessarily mean cheaper all the time. It has been discovered that duty-free shops do make up for the pricing regulation by heavily marking up prices on some of their goods to obtain a profit margin that will cover for rent, utilities, staff salaries, and so on. Therefore, it is advised to personally carry out price research online and offline before the travel date to know if the bargain at the duty-free airport shops is worth it or not.

The use of websites like Duty Free Addict can also provide useful assistance for researching prices. On the other hand, for flights connecting within the United States or Canada, the passenger has to ensure the bottles of liquor, perfume, and so on do not exceed the specified ml. Then the duty-free items must be placed in the hand luggage. The violation of the duty-free rules as spelled out by the airport authority may result in the payment of extra tax, or duty, to the country upon arrival.

It could also mean that the traveler may be subjected to an avoidable delay in the screening area, while officers screen the bags and verify the duty-free purchases made.



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