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Duty Free Shopping

 

What is Duty Free Shopping?

What is Duty Free Shopping?

Duty-free shops are retail outlets that do not apply local or national taxes – for the country in which the shop is located.   However, you may still have to pay taxes or duties when you cross the border. Your purchase is only truly “duty free” if your purchases fit within your personal exemptions for the country you will be entering. If you exceed your personal exemptions, you will pay that country’s taxes or duties on your purchases.

Duty free shops are typically found only at an international border, airports, or other areas where you are leaving the country.  By definition, duty free items are for “export only” and must be taken out of the country in which they are purchased. Once you enter the premises of a duty free shop you cannot turn around and head back into the country from which you came – you must continue out of the country and through Customs. Most duty free shops along the border will have an entrance with tire spikes so you cannot back out.

There are duty free shops at about a third of the U.S. / Canadian border crossings – primarily the larger ones. Review the web page on our site for the specific port you will be using to see if duty free is available at that location.

What Should You Buy Duty Free?

What Duty Free Goods to Buy at the U.S. Canadian BorderSometimes purchasing duty-free is a good deal; sometimes it’s not.  Duty free shops offer deals on items that usually carry heavy duties and taxes. Veteran shoppers carefully pick their items, calculate their personal exemptions, and research the duty free shop before they reach the border.    Below we show items listed in order from those that are most often purchased to those that are least often purchased:

  • Alcohol (liquor, liqueur, wine, coolers)
  • Tobacco, Cigars, Loose Tobacco
  • Perfume, Cosmetics, Skincare
  • Food
  • Beer (beer, malt-based coolers)
  • Jewellery, Watches, Clocks
  • Clothing (including hats, fur, leather)
  • Accessories (purses, wallets, sunglasses, etc.)
  • Souvenirs
  •  Office and Travel Supplies
  • Glassware, crystal, china, figurines, porcelain
  • Crafts/Arts
  • Electronics, Cameras, Binoculars, etc.

Duty Free Tips

  • Look for goods that are made in the United States, Mexico, Chile and Costa Rica or other countries that are part of an international trade agreement such as NAFTA. Goods produced in these countries often have lower, or no duties at all.
  • Make sure you know your license plate number before you go into the store. You will need it to make your purchases
  • Always keep your receipts for items your purchase as you will be asked by Customs how much you paid – including any taxes.
  • You will also have to show your receipt to an attendant as you exit the store parking lot.
  • Pack all of your purchases together so you can present them quickly if a Customs Officer requests an inspection.
  • You may want to think twice about stopping for duty free on Black Friday You may want to consider the traffic situation before you enter the driveway to the duty free shop. Once you enter you are not likely to be able to get out without transiting the entire facility. On heavy shopping days, or crowded border times, we have seen complaints of 2-3 hour traffic jams due to crowded conditions.   Consider calling ahead to see what the staff says about current store conditions.
  • Some duty free shops have food courts, travel centers, and various business services such as Internet connections.
  • The goods you purchase must be exported intact – they cannot be consumed or used on the shop’s premises.

Finally, a warning we echo throughout this site – don’t even think about smuggling your purchase across the border. If you are caught, the paltry amount of money you would have saved will pale in comparison to the penalties that will be imposed and the ramifications of a lifetime ban on ever crossing that border again.

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