The Limited Times

Now you can see non-English news...

How not to be scammed in a duty free?

2019-11-07T03:07:49.029Z


Before opening your wallet, do some research to make sure you are not scammed and review this article.


  • Click to share on Facebook (Opens in a new window)
  • Click to share on Twitter (Opens in a new window)
  • Click here to share on LinkedIn (Opens in a new window)
  • Click to email a friend (Opens in a new window)

(CNN) - You have one hour before your flight takes off. You already ate a snack in an elegant airport restaurant. You may even have considered an express treatment at an airport spa.

MIRA: Can you pay with dollars in Venezuela?

But the call for duty-free purchases (as it is known in English) is too strong.

“Sometimes, we go through the duty-free store because we believe we are getting a good deal. Other times, we are bored before our flights and we just want to kill time, ”says Scott Mayerowitz, editorial director of The Points Guy, an aviation-focused travel website. "Occasionally, we find items we can't get at home."

But before opening your wallet, Mayerowitz says, do some research to make sure they don't scam you, start by reviewing the TPG study on duty-free purchases, which showed wild fluctuations in the prices of the same item throughout the service. duty free stores worldwide.

The same tax-free product could cost an additional 30% or more at another airport, according to the study. And the prices of that item may vary between different duty-free stores, even within the same airport. For example, at the John F. Kennedy Airport in New York City, the price of a 1-liter bottle of Bacardi Gold rum varies from $ 14 to $ 23.

The study collected and compared duty-free prices for 13 popular items (Bombay Sapphire gin, Johnny Walker Blue Label whiskey, Estee Lauder Advanced Night Repair face cream and Marlboro cigarettes, to name a few) at 50 airports on six continents.

With the help of experts and industry leaders, CNN Travel shows you how to get the best performance for your money without paying taxes.

What is tax free?

A customs tariff is a duty or tax imposed on goods transported across international borders, according to the Customs and Border Protection Service of the US Department of Homeland Security.

The “tax” that is avoided is the import tax that applies to local retail sales in the country where the duty-free store is located. It is usually a combination of value added tax (VAT) and sales tax.

READ: The charges most travelers hate

"Duty-free" connotes the absence of these local taxes on retail items purchased in special economic zones where sales and value-added taxes (VAT) are not collected, says purchasing expert Andrew Schrange, co-founder of the community finance site Personal Money Crashers.

And although duty-free shops are most commonly found at airports, you can also see them at major land border crossings and on cruise ships that sail in international waters.

How did the tax-free purchases begin?

With the opening of the world's first duty-free shop in the transit area of ​​Shannon Airport in 1947, Ireland became the pioneer of this business model. The Irish government passed the Customs Free Airport Act that year, exempting passengers in transit, goods and airplanes from normal customs procedures.

This concept was copied internationally, says Nadine Heubel, executive president of Heinemann Americas, a company with duty-free stores at 74 airports in 28 countries.

How much can you buy duty free?

Americans can spend up to $ 800 abroad without paying taxes upon returning to the United States, which is called a “personal exemption,” according to the Customs and Border Protection Service of the US Department of Homeland Security. (For international travelers, the limits of how much they can spend and how much they can bring back vary widely, so you should check your country's assignments here).

The next 1,000 dollars in items brought home in the US They are subject to a flat rate of 3%. If the value of the purchase is greater than $ 1,800, the remaining tariff is determined based on rates according to something known as the Harmonized Rate Program. Family members traveling together can combine their personal exemptions.

In addition to the dollar limits, there are restrictions on the amount of alcohol and tobacco that you can take to a particular state. Americans are allowed a liter (33.8 fluid ounces) of alcohol and 200 cigarettes or 100 cigarettes.

Some states may allow you to bring more than one liter, although you will have to pay customs taxes and taxes from the Internal Revenue Service for additional bottles. Other states may limit the amount of alcohol you can bring without a license.

Do tax-free purchases really save you money?

As a general rule, it is better to know the prices at home and in the country you are visiting. "Just because it says 'duty free' doesn't always mean it's a good deal," says Mayerowitz.

MIRA: Which Latin American airports have the happiest passengers?

Because tax-free retailers are not required to transfer tax savings to the customer, many set prices just below local prices, says Schrange. "Prices vary by store and jurisdiction, but buyers should not expect large discounts," he says.

Depending on the local tax structure, however, the savings can be significant in certain items, up to 20% or even 30%, in jurisdictions with high VAT rates. "The savings are especially noticeable in 'vice' products, such as alcohol and cigarettes, because those items tend to be taxed at higher rates," he adds.

It will also benefit you to familiarize yourself with the rules on duty-free purchases in the country to which you will be traveling, advises Schrange.

Some countries have limits on how much you can buy before taxes come into effect, which you may have to pay once you return home. You can usually know the limits by checking with the border patrol or customs agency of the country you are visiting.

Where are the best (and worst) places to shop duty-free?

According to The Points Guy research, you will find the best prices on alcohol in the Caribbean, cosmetics and fragrances in Europe and tobacco products in Asia. The cheapest airport in general for duty-free products is Kuala Lumpur, Malaysia (KUL). The most expensive airport in general is Santorini, Greece (JTR).

What are the best offers in “duty free”?

Look for larger, tax-free and exclusive product sizes to save, suggests Heubel. And you should be aware of sales that could reduce up to 30% of regular prices.

LEE: These are the busiest airports in the world

While liquor and tobacco are generally better for shopping in duty-free stores, according to Schrange, "there isn't much," Mayerowitz adds. “It really varies from city to city and according to the type of product. I would say this: tax-free items may have a good price, but always keep in mind the inconvenience. Is it worth saving $ 4 on a bottle of vodka if you then have to load it through two more airports and a car ride home? ”

What should you skip in a duty free?

“Cosmetics and other luxury items [such as clothing] do not reliably offer the same value and, in many cases, can actually be more expensive in duty-free stores than in large stores or street markets. the city, ”says Schrange.

That is because the clothes are normally slightly taxed. "You can find better deals in the city, especially if you are in a country where street vendors are common and bargaining is expected." It also suggests that shoppers stay away from memories, calling them "notoriously prone to scamming."

He advises: "If you are determined to bring trinkets or souvenirs from abroad, buy them before arriving at the airport."

How can you make sure you get a good tax-free purchase?

Mayerowitz suggests using Google and a currency converter to compare prices.

Buy local products whenever you can: products that are from the country where the airport is located have a lower price, while any imported product is less likely to be a bargain.

Again, knowing the prices of items in your home country is key: if you live in a place where an item such as alcohol is very subject to taxes, such as Singapore or Iceland, supplying you with duty-free products could save you a significant amount of money.

MIRA: These are the best airports in the world for 2019

Schrange suggests verifying accredited and publicly available resources such as Duty Free Addict before buying, to ensure you get a fair price.

Can I bring tax free liquids?

You can pack more than 3.4 ounce liquor in your carry-on luggage when you return to the US, even if you have a connecting flight. Just be sure to keep your receipt and seal your purchases in a tamper-proof plastic bag, Mayerowitz says.

(Read more about the liquid rule on the TSA site). Depending on the country from which you leave and the duty-free store policy, your purchases could be delivered at the boarding gate; other times you can leave the store with him).

What happens if my flight is canceled? What do I do with my tax-free drink?

Most people buy duty-free products at least one hour before departure and most likely have a significant delay. On the rare occasions when your flight is canceled after making purchases, the official rule of Heinemann, which manages a series of duty-free stores throughout Europe, is that you must return the duty-free products or import and declare them. However, what you can really take advantage of depends on the airport and the rules of the country you are leaving from and your final destination.

And if you're connecting with duty-free items in the US, you can take them through the TSA when you re-enter the country. Just be sure to keep your receipt and keep your purchases sealed in a tamper-proof plastic bag.

How should I pay my tax-free items?

"We always suggest using a credit card without foreign transactions [problems] when you're abroad, to get the best exchange rates," says Mayerowitz. And, if you are paying in cash, for example, to use any local currency you have at the airport, when the cashier asks you if you want to pay in dollars or in the local currency, always choose the local currency. This is because if you choose to pay in dollars, the merchant converts the purchase into the local currency.

The trick? The exchange rate can be terrible and they may charge you an additional fee for the service.

ShoppingDuty freeTaxes

Source: cnnespanol

All news articles on 2019-11-07

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.