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'Duty' is the fee you must pay to transport a product across international borders. Duty-free shopping refers to shopping at international ports and airports without paying import taxes on the goods you buy. Travellers can save money on luxury goods when making purchases abroad.  

For example, if you want to purchase wine from France to remember your trip, you can easily buy this wine duty-free while at the airport. Here, you won’t have to pay any local or import tax on your purchase as its consumption would be outside the country. 

When you purchase anything 'duty-free', you avoid paying taxes on it within the country where you made the transaction only when you’re travelling international. These duty-free allowances are subject to rules and regulations that vary from country to country. 

Shopping at entry and exit points of countries has its perks.  

Since you are either entering or departing from one country and moving to the next, the products you purchase at the airport in the origin country are sold duty-free. These products can be consumed only in the destination country. 

To confirm that you are indeed exiting the nation where the transaction was made, the duty-free retail employee will request to see your boarding pass and ID. 

• Items are Bought Only When Departing: Duty-free items are sold mostly to departing travellers or when one is crossing into another territory. They are mostly for export and must be taken out of the country where they are purchased. This is to avoid paying taxes twice on the purchased items.
• Price of the Item: The price of items when purchased duty-free are lower compared to retail prices within the country. However, the prices differ depending on the geography and currency exchange rates.

Before you shop duty-free, you must always do your research. Some products might be cheaper in your destination country than in the origin country. You might also find economical prices online with different discounts and deals.

• Necessary Documents: When you shop duty-free, you need to have these important documents:
  • A Valid International Boarding Pass
  • Valid Passport and ID Proof
  • Order Confirmation or Receipt of Purchase.

These documents will help you buy items in-store and online and allow you to claim your purchased items duty-free when you arrive at any airport.

• Know the Duty-free Limitations and Allowances: Every country has its own customs regulations. This means travellers can bring only a limited number of items into the country free of duty. 

A Customs Declaration Form is mandatory for passengers with dutiable goods. Ensure that you file the correct declaration of your baggage in the Customs Declaration Form and opt for the Red Channel. Passengers opting for the Green Channel with dutiable/prohibited goods are liable to prosecution/penalty and confiscation of goods.

You must check the duty-free allowances of the country you are travelling to before making a final purchase to avoid any complications.

• Age Restrictions: Some of the popular duty-free items to purchase when you are abroad are alcohol and tobacco products. These products have age restrictions depending on the country of purchase. 

If you are underage, you might not be able to view these duty-free products online either. If you are making a purchase in-store, you will need ID proof to ensure that you are of legal age to purchase such products.

• Combining Allowances: It is important to note that you cannot combine duty-free allowances of two or more passports. Each passport holder is subject to individual allowances. Pooling of duty-free allowances of more than one passport is not allowed. 

Each passenger is considered to be travelling separately with his/her own baggage and the duty is assessed on an individual basis, not based on a group or a family.

• Usage of Goods: Duty-free goods must be purchased for personal consumption only and not for commercial use. Only international passengers are eligible to purchase duty-free products for personal consumption or as a gift. 

There is a limit on the volume of goods that can be purchased per passport. Non-adherence to these limits can result in confiscation or penalties. You must also declare all duty-free items to a customs office when you arrive at the airport.