Why Duty Free Goods Exist & How It’s Beneficial for Customers These days, the post-security departure areas of most big international airports look like a big shopping store and mall instead of a transit hub. You can see various number of goods and item that you can buy and take it with you abroad. But the thing is, why duty-free goods are in trend. In order to understand it, first, we need to understand the meaning of duty-free. Duty free refers to the act of being able to purchase an item in particular circumstances without paying imports, sales, value-added, and other taxes. Duty-free stores are an enticing perk of international travel. Many big companies like Plus Max which is a well-established company or group actively involved in duty-free business and earning better profit by specializing in various duty-free goods. Duty-free shops are often found in the international zone of international airports, seaports, and train stations, but goods can also be bought duty-free on board airplanes and passenger ships. These duty-free outlets are in trend due to an increase in sales of their goods. Before further information, we should know, why duty-free shops exist. Why Duty-Free Goods Exist? The “duty” in duty-free refers to taxes. The duty-free shops are allowed to sell their material or goods exempt from various national and local taxes on the condition that the goods will be taken out of the country by international travelers. In the absence of taxes, duty free shops are able to sell their products at fewer prices as compared to those goods including tax.
However, some countries impose a duty on goods brought into the country, though they had been bought duty-free in another country, or when the value or quantity of such goods exceeds an allowed limit. The world’s largest airport by duty-free sales is SouthKorea’sincheon airport, with US$1.85 billion in 2016, narrowly overtaking Dubai duty-free with 2016 sales of $1.82 billion. How Duty-Free Goods Are Beneficial For Customers Some countries impose a high tax on liquor and cigarettes during the travel, in order to tackle this problem during international travel, you can buy these goods on duty-free shops free of tax especially when you travel out of the country for a certain period of time. You can get a very cheap price of goods on duty shops, but the price between different duty-free shops located at different airports and trains vary.