How It Works

Most governments impose a tax or "duty" on goods sold by merchants within their country. However, governments frequently lift these surcharges if the merchandise is being sold to a consumer who will be leaving the country with the product. At duty-free locations around the globe, merchants pass the savings on to their customers, who eagerly take advantage of these sensational deals.

Where to Find the Deals

Shoppers can usually find duty-free products where there's plenty of international traffic: airports, border cities, ports and cruise ships. In certain locations, travelers can purchase duty-free merchandise on-board international flights. Some governments even allow consumers to purchase items from “regular” retail stores far away from international borders, and receive a tax refund later if they transport the merchandise out of the country.

Duty-free procedures and policies differ by country. To take advantage of duty-free shopping, you typically must be leaving a country for at least 48 hours (see our Laws page for details). When buying bargains at airport duty-free shops, you often won’t be allowed to carry the merchandise onto the plane. Instead, an airline employee will deliver the item to you once you've boarded. This practice, in addition to supporting security efforts, discourages those that are trying to skirt the rules.

When crossing international territory by car and buying merchandise at a duty-free border shop, your purchase will typically be sealed and given to you at the border crossing station.

Grabbing Those Bargains

Travelers can find a wealth of fantastic products at duty-free shops, including high-end jewellery, luxury watches, perfume, tobacco products, spirits, dinnerware, handbags, luggage, sunglasses, ties, chocolate, candy, electronics, children's products and small gifts. Those who crave designer brands will delight in the selection of signature names, from Guess and Godiva to Clinique and Hermes.

If you're looking for the best deals on a percentage-off retail basis, try items that carry a high duty rate, such as tobacco and spirits. If you're more interested in total dollar savings, focus your purchases on big-ticket luxury items, such as fine jewellery and designer watches.

It’s important to keep in mind that many governments impose limits on just how much merchandise you can bring into or take out of their country. Sometimes it's a per-item limit, such as the one liter of liquor or one carton of cigarettes restriction for travelers into the United States.

Often, however, this restriction involves a total dollar limit. For example, American citizens reentering the U.S. after purchasing products in most countries may only bring in $800 of duty-free merchandise (visit our Laws page for details). If you exceed these allowances, you may face surcharges. Even so, many smart duty-free shoppers gladly pay the extra fee, knowing they’ll still end up saving a great deal of money.