What is "duty free"?
#1
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What is "duty free"?
I have been advised by a few people to hit the "duty free" shops. I have felt too stupid to ask what is a duty? I am assuming it is some type of tax. What happens if I purchase a non-duty free item? Do I pay the store an additional fee or do I have to pay it at customs or on the ship? We are taking our first cruise this weekend..
#2
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It is tax. YOu will not pay tax when purchasing something duty free. YOu have a duty free allowance for each country you visit as a US citizen. Make sure you don't go over the allowance and you are home free. Otherwise, you will owe taxes on everything over your allowance at customs and immigration. I have never had to do this, so maybe someone else can offer info on how it is done.
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The day before you enter any port there will be an on-board talk given about the port, things to see, where to shop, and what the DUTY FREE rules are. Usually the Cruise Director or His/Her staff does these talks.
The rules can vary from port to port, or if you are a U.S. citizen vs. a Canadian, etc.
They will clearly explain what you need to know and answer any questions you have.
Most people have no problems since they stay within the limits. The only times you should have to pay "duty" (or tax) is if you buy a lot (like a lot of jewelry) or if you try to bring back too much liquor.
Again, attend the talks which are informative about this topic and the ports themselves and you will not have any problems.
The rules can vary from port to port, or if you are a U.S. citizen vs. a Canadian, etc.
They will clearly explain what you need to know and answer any questions you have.
Most people have no problems since they stay within the limits. The only times you should have to pay "duty" (or tax) is if you buy a lot (like a lot of jewelry) or if you try to bring back too much liquor.
Again, attend the talks which are informative about this topic and the ports themselves and you will not have any problems.
#4
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To clarify on what wtggirl said, if you reside in the US the "Duty Free" allowance is not based on the number of countries you visit but rather it is a total dollar value of all goods purchased during your trip. I believe it is now $800 per person per trip (assuming you are out of the country for a certain period of time).
One hint about "Duty Free" shopping, just because an item is "Duty Free" doesn't mean it will be less expensive than you might pay elsewhere (even back home). Savy shoppers do their homework and know the value of an item long before they purchase it.
One other point, if you are buying electronics or cameras make sure you fully understand about any manufacturer's warranty as item's purchased outside the country where you live might not be covered when you get back home.
One hint about "Duty Free" shopping, just because an item is "Duty Free" doesn't mean it will be less expensive than you might pay elsewhere (even back home). Savy shoppers do their homework and know the value of an item long before they purchase it.
One other point, if you are buying electronics or cameras make sure you fully understand about any manufacturer's warranty as item's purchased outside the country where you live might not be covered when you get back home.
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Be careful, many stores advertise as being 'duty free stores'-the implication being that the goods are much less expensive that you would pay at home. This is often not the case. As an example, I buy Pringle sweaters in Canada, full retail, for less than the same sweater sells for at Harrods Heathrow duty free shop-quite a bit less. Same is true for liquer. There may be no local taxes but the markups are definately higher!
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Yes, duty free does not mean less expensive (ONLY TAX FREE). However regarding the sweaters purchased in Canada versus London, I have to question if it was relative to your exchange rates. For example, when I was in London the US dollar was weak. My son wanted to buy a video game for 50 pounds that cost 50 dollars in the US. Exchange made that video game in London almost double at about 90 US dollars considering the current exchange rate. You stated it as a markup and I just wanted to point out it is important to weigh the value of your current exchange rate when traveling international.
#8
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I think I am getting the idea. When you throw the exchange rate in, I want to poke a pencil in my eye. Thank gosh it is just the caribbean. I am not a big shopper, but now at least I know what a duty is. Thanks for your help.
#9
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We always take exchange into account...otherwise how can you compare prices? Everyone seems to go a little nuts when they see that 'duty free' sign....I suspect that they feel that they absolutely MUST purchase something. Travelinwifey..you are absolutely correct about chocolate. UK manufactured Cadbury chocolate is much cheaper in Canada that it is in LHR duty free, as is Toblerone and Lindor. I suspect it is cheaper everywhere else too. People still buy it at the duty free though. I suspect that the cigarettes, some liquer, and a few perfumes are cheaper than NA, but everything else seemed more expensive to me. I did meet some people from Japan, they thought the prices were good so perhaps they have a very high VAT in Japan.
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All US travelers going abroad should read Customs' "Know Before You Go" brochure. Consise, accurate information on what products you can bring back to the US, what your exemption will be etc..
http://www.cbp.gov/xp/cgov/travel/
http://www.cbp.gov/xp/cgov/travel/