Duty-free shopping is one of the perks of international travel. It refers to purchasing products from stores at international airports or seaports without paying local or import taxes. This allows travellers to buy goods at a lower price. However, you should know you will owe taxes on duty-free items you bring to India if their value exceeds the duty-free exemption.
How does duty-free shopping work?
Normally, one is expected to pay an import, sales, local, or value-added tax on any goods purchased from retail outlets in a country. However, duty-free shops are considered beyond the customs frontier, placing them in a "no man's land" for tax purposes. This means that transactions occur outside the country's tax jurisdiction. Thus, when doing duty-free shopping at international airports or ports, you don’t have to pay duties on the goods purchased.
Benefits of duty-free shopping
Some of the benefits of duty-free shopping are:
- Savings: Owing to the tax-free prices, luxury items are sold at much lower rates at duty-free stores than regular retail shops.
- Convenience: Since the shops are located in airports and ports, you can easily purchase goods while waiting for the plane or ship to arrive or during a layover.
- Exclusive products: Some shops offer unique items, such as premium fashion accessories, high-end electronic gadgets and limited-edition perfumes, that aren’t available at regular stores.
List of the most popular duty-free items
Some of the most popular items sold at duty-free stores are:
- Alcohol
- Perfume
- Tobacco
- Cosmetics
- Electronics
- Clothing
- Chocolates
- Jewellery
- Food and beverage
- Travel accessories
Conclusion
Duty-free shopping is a good option to buy premium goods at affordable prices. However, don’t forget to check the limitation on how many duty-free items you can bring back to your home country. Before undertaking international travel, book travel insurance online to enjoy a stress-free, amazing trip. You can also opt for single-trip travel insurance for a one-time journey covering medical and non-medical emergencies.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis, or treatment. Please consult your general physician or another certified medical professional for any questions regarding a medical condition. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.