Travel/ Duty Free

The duty-free travel industry incorporates those companies primarily concerned with providing travelers the opportunities for duty-free retail outlets. Much of the duty-free travel industry is centered around airports and other transportation hubs where various businesses have sites with duty-free (or taxation-free) merchandise available to travelers en-route, or arriving and departing certain locations.

Duty-free retail sites are excepted from having to pay specific national or local taxes provided that their merchandise be retailed to those who will make purchases and then take the merchandise out of the country. Merchandise that is able to be sold duty-free have certain stipulations assigned to them by different jurisdictions. These stipulations also encompass how certain products are retailed and by which process the duty, or lack thereof, is calculated.

Despite being able to purchase products duty-free at one travel port, travelers may have duty imposed on them for the merchandise once they reach their destinations. This may occur if the value of the merchandise, or the quantity of the initially duty-free products, exceeds a previously imposed limit for a specific country. Typically duty-free retail locations are placed in international zones, such as international airports or sea ports. However, at times duty-free goods can also be purchased on airplanes or ships will travelers are in transit. Though this is most common, some countries allow for duty-free merchandise along their borders for those traveling with ground transportation (for example: via car or train).