When "duty free" is not duty free

[blackcat20]

It was only the one bottle of wine though. Yes checked baggage next time for sure.

Its over 100ml though and that's the LAGs rule.

 

[Sprucegoose]

It was explained to me many years ago by a Hongkong trader .....Ah duty free not profit free ........

 

[Pushka]

So what happened in BKK is more a function of the airport shops not wanting to deliver past the gate?

 

[Austman]

Just as an example:

CALVIN KLEIN Eternity For Men Eau De Toilette
FIRST Tax and Duty Free MEL: $38.00 for 50ml
Chemist Warehouse: $26.99 for 100ml

I don't use CALVIN KLEIN Eternity but when the "Tax and Duty Free" store charges 41% more for 50% less product, something is amiss.


F1RST Tax & Duty Free
Calvin Klein Eternity for Men Eau de Toilette Spray 100mL - Chemist Warehouse

 

[Warks]

Pre-GST it was sometimes worth it for electronics and cameras as there was a 20-30% tax on such items. I have only occasionally bought alcohol usually as a gift when heading overseas as some countries have horrendous taxes so it is well worth it for the recipient - sometimes it's a request not an actual gift.

The whole thing now highlights how many people must have no idea of the price of things if they stock up. A bit like buying wine at a cellar door paying 2-3X Dan Murphy's prices. Or "factory tours" - the chocolate is dearer than the supermarket.

 

[dajop]

Long thread on this topic already, last discussed four months ago, generally consistent with above comments.

Pointless duty free

 

[seanpodge]

Duty free in airports is pretty much the same captive market rort one sees in many other places. A bit like how a meat pie and bottle of water requires a second mortgage if you buy it at the MCG (or indeed at an airport) rather than the nearest supermarket. They do it because they can.

As long as you're spending over $300 at the one business and have a (good) bit of time on your hands when you depart, the best bet is to buy things at regular stores and then claim the tax back after clearing customs.

As there are so many members visiting so many countries on this fórum, why can´t someone set up a central resource thread where the prices of a group of representative ítems is kept - Street and duty free prices?

There is this thread: http://www.australianfrequentflyer....ps/cheap-duty-free-liquor-airports-31533.html

Last post was a month ago so it might be time for some to let us know how the index is travelling.

 

[Mattg]

And I think in Europe ( eg Greece), you only get the 'duty free' amount back when you finally leave the EU, not the component countries. That's why you were charged it up front.

Just to clarify, I was leaving the EU here and had already gone through immigration and got the departure stamp.

 

[Mrmaxwell]

Duty Free as others have said is simply a name for a store (usually at an airport). I always find much cheaper products in the country I am travelling, e.g.. Honolulu supermarkets are incredibly cheap for liquor eg. 700ml Barcardi/Smirnoff US$11, 700ml Grey Goose, JW Black US$15-20.

I will sometimes get some spirits from SYD upon arrival if I haven't had time to shop elsewhere AND there is a deal on like last week - 2 Chivas Regal 1L for $60.

 

[medhead]

Seems to be some confusion between duty and tax in this thread. Duty traditionally only applied to booze, perfume and ciggies. Two of those still have significant duty/tax levied. But does perfume still have duty applied?

Duty free certainly means much more than just the name of a shop. The goods, well booze and smokes, are sold without the duty being levied. But the shops still have to pay airport rent, staff wages, and make a profit. They are operating in locations that have a high cost of doing business.

As mentioned a few times it may be duty free but it isn't profit free.

 

[dajop]

I always find much cheaper products in the country I am travelling,

It not a universal rule, through it depends on the countries you are travelling to. In Singapore that rule certainly doesn't apply, but admittedly it is an extreme case with very competitively priced DF alcohol at the airport at one end of the spectrum and hefty duties/profit margins on alcohol in normal stores in country at the other end.

 

[RooFlyer]

Seems to be some confusion between duty and tax in this thread. Duty traditional only applied to booze, perfume and ciggies. Two of those still have significant duty/tax levied. But does perfume still have duty applied?

Duty free certainly means much more than just the name of a shop. The goods, well booze and smokes, are sold without the duty being levied. But the shops still have to pay airport rent, staff wages, and make a profit. They are operating in locations that have a high cost of doing business.

As mentioned a few times it may be duty free but it isn't profit free.

I think some airports (eg SYD), the airport also charges the shops a % of the net take, on top of rent.

 

[markis10]

Seems to be some confusion between duty and tax in this thread. Duty traditional only applied to booze, perfume and ciggies. Two of those still have significant duty/tax levied. But does perfume still have duty applied?

Duty free certainly means much more than just the name of a shop. The goods, well booze and smokes, are sold without the duty being levied. But the shops still have to pay airport rent, staff wages, and make a profit. They are operating in locations that have a high cost of doing business.

As mentioned a few times it may be duty free but it isn't profit free.

For the record, Duty actually applies to anything that is imported, unless it has an exception under a free trade agreement or otherwise. Perfumes, Shampoos etc have a 5% duty

http://customs.gov.au/webdata/resources/files/HT33AW2012.pdf

The manual detailing what gets charged what is a good read if you are having problems sleeping

Working tariff 2012

 

[medhead]

For the record, Duty actually applies to anything that is imported, unless it has an exception under a free trade agreement or otherwise. Perfumes, Shampoos etc have a 5% duty

http://customs.gov.au/webdata/resources/files/HT33AW2012.pdf

The manual detailing what gets charged what is a good read if you are having problems sleeping

Working tariff 2012

So much for dropping the tariff barriers. Still 5% is nothing to get excited about, certainly it doesn't create an opportunity for a large saving. Unlike booze and ciggies.

I wonder about the added cost of operating at places like SYD. I'd expect it to be at least 5% or even as much as 10%. When looking at saving a 5% duty on perfume or even 10% for gst of course the price isn't going to be cheaper.

 

[harvyk]

Seems to be some confusion between duty and tax in this thread. Duty traditionally only applied to booze, perfume and ciggies. Two of those still have significant duty/tax levied. But does perfume still have duty applied?

At least in Australia, airport duty free stores typically sell inside the "GST Free" zone (aka just after immi outbound, just before immi inbound). Furthermore many duty free stores actually advertise themselves as "Tax and Duty Free". Of course since there are no laws about pricing the retailers are free to still charge what they like (and pocket what would have normally been the tax and duty component).

I'll purchase duty free booze coming in, but only if it's for things I would not have otherwise being able to get in AU.

 

[MEL_Traveller]

Of course since there are no laws about pricing the retailers are free to still charge what they like (and pocket what would have normally been the tax and duty component).

exactly...

duty -10%
tax - 10%
our mark up (profit) +25%