Duty-free shopping is the purchase of goods without having to pay any tax. Duty-free stores in foreign countries mainly cater to international travellers flying out of the country after a trip. They are found mostly at airports, seaports and border crossings. When shopping abroad, you should know the duty-free shopping rules that govern what can be purchased free of tax and how they can be sold.
How does duty-free shopping work?
Only international travellers can shop at duty-free stores in airports and seaports. Your boarding pass must be scanned at the registration counter to verify eligibility. Authorities make this mandatory to prevent local airport staff from making purchases. You may have to pay import taxes on the duty-free goods upon arrival in your country.
7 duty-free rules and regulations while shopping
Generally, the guidelines for duty-free shopping differ from country to country. Let’s look at seven general duty-free rules and regulations:
- Purchase when departing: Duty-free shopping can only be made by departing travellers. The items must be taken out of the country from where they are purchased.
- Lower price: Goods sold at duty-free stores are cheaper because they are tax-free. However, the price varies across countries, so make an informed decision.
- Documents needed: One must present their boarding pass and passport while shopping at duty-free stores.
- Limitations: Different countries have different regulations governing the number of duty-free items that can be brought to the traveller’s country without paying any import tax. So, make sure you do not exceed the limit.
- Pooling of allowance: One cannot pool the allowance of two or more passports to make a purchase.
- Age restrictions: Few duty-free items, such as alcohol and tobacco products, have age restrictions for purchase.
- Personal use: Duty-free regulations mandate that goods purchased are for personal consumption, not commercial use. You must declare all duty-free items on arrival at the airport.
Conclusion
International travellers should know the duty-free shopping rules and restrictions in their departure and destination countries to ensure they don’t have to pay tax on arrival. Understanding the regulations can save you a great deal of money.
If you plan to travel abroad, get travel insurance to ensure a stress-free trip. It will cover medical emergencies, flight cancellations, lost luggage and more. You can also purchase single-trip travel insurance for a one-time journey.
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.