When you're traveling, you may have heard the terms "duty paid" and "duty free" thrown around. But what do they really mean? In this article, we'll break down the differences between these two concepts and help you understand what you need to know.
What is Duty Paid?
Duty paid refers to products that have had all applicable taxes and duties paid on them. These taxes and duties could include things like sales tax, excise tax, or customs duties. When you purchase a duty paid product, you are paying for the cost of the product as well as all applicable taxes and duties.
For example, if you purchase a bottle of wine in a liquor store, that bottle has been duty paid. The price you pay at the checkout includes the cost of the wine as well as any taxes and duties that apply.
What is Duty Free?
Duty free, on the other hand, refers to products that have not had any taxes or duties applied to them. These products are sold in special duty free shops in airports, on cruise ships, and at border crossings.
When you purchase a duty free product, you are not paying any taxes or duties on the item. This can result in significant savings, especially on high-ticket items like electronics or jewelry.
What Can You Buy Duty Free?
The types of products you can buy duty free will vary depending on where you are traveling. Some common duty free items include:
- Alcohol
- Tobacco
- Perfume and cologne
- Cosmetics
- Electronics
- Jewelry
It's important to note that there may be restrictions on how much of each item you can purchase duty free. Be sure to check with the customs regulations of your destination before you start shopping.
How Does Duty Free Work?
When you enter a duty free shop, you will be asked to show your travel documents, such as your passport or boarding pass. This is to ensure that you are eligible to purchase duty free items.
Once you've made your selections, you will pay for your items at the checkout. You will typically need to show your travel documents again at this point.
Your duty free items will be placed in a special bag or container that is sealed by the retailer. You will need to keep this sealed container with you until you reach your final destination.
Can You Buy Duty Free Online?
Yes, you can purchase duty free items online from certain retailers. However, there are some restrictions to be aware of.
For example, you may need to provide proof of travel in order to purchase duty free items online. Additionally, some countries may not allow duty free items to be shipped directly to your location.
The Bottom Line
Duty paid and duty free are two different concepts that are important to understand when you're traveling. Whether you're looking to purchase a bottle of wine at a liquor store or a new camera at an airport duty free shop, knowing the difference between these two terms can help you make informed purchasing decisions.
Just remember to check your destination's customs regulations before you start shopping, and be prepared to show your travel documents when purchasing duty free items.