Purchasing "Duty Free" domestically

[harvyk]

Hey all

Is it possible to purchase from a Duty Free store when not travelling internationally, but simply pay the duty at the same time as the purchase.

SoCo sell 100% which is only available in Duty Free stores, I'll have a bit of time to kill at ADL, and if I could purchase a bottle (paying the duty) it would be pretty good.

Peoples thoughts?

 

[Dave Noble]

No. You need to be travelling internationally

Dave

 

[codash1099]

No. You need to be travelling internationally

Dave

Many Duty Free stores will also quote a "Duty Paid" price and will sell to anyone. However I'm not sure that this applies to alcohol.

 

[serfty]

Certainly not Alcohol - hard to get profit doing that.

10% GST is one thing - that and ~$28 per litre* excise on standard spirit is another ...

e.g.

An MP3 player may sell for $20 Duty free - so would retail at $22 for the seller to make the same profit.

A 700ml bottle of 40% rum may sell duty free for $15. To sell it retail and make the same profit would be [($15 + $70 x 40% x .700) x 1.1] or $38.06.


*rate is actually ~$70 per litre of Alcohol contained therein, $28 is for a spirit at 40% alcohol by volume. Note GST is payable on the excise to that's $77 and $31.

 

[samh004]

Such a shame, Smirnoff does a really good 50% vodka in duty free in australia, but it's a little less in normal shops. I'd love to buy the stronger stuff somewhere, but the bottle actually says "export quality" and I can't find it anywhere.

I guess this puts the nail in that coffin.

 

[harvyk]

Oh well, it looks like I have to wait another 7 weeks (Technically 8 because I usually only buy it on the way back home, not on the way out) before I get another bottle of SoCo 100 proof .

 

[medhead]

I think your best bet is to ring the shop and ask them. I haven't seen any convincing arguments here as to why they wouldn't sell it duty paid.

An ex-GF working duty free for a long time and they would sell stuff "duty" paid to people not travelling internationally. That was before GST started. The last stuff I purchased from a duty free shop was sold to me duty paid. And I was told to claim back the GST. No need to show tickets or anything like that. So no there is no requirement to be travelling internationally to buy duty paid from a duty free shop.

On the question of profit for grog. I'm not sure how having to collect the duty reduces the ability to make a profit. They are simply collecting a tax that the customer pays. There is no real extra cost to the shop and they are still going to get the duty free price including profit, plus they collect the duty and GST extra. Big deal, that is exactly what any other bottle shop does. Besides if it costs more than a normal bottlo then the only issue is whether or not the customer is will to pay for it.

My advice ring the shop and ask them. Of course, I'd also advise you to drink Bundy.....

 

[harvyk]

I drink both bundy and SoCo (just the 100 proof).

It looks like no one here has actually tried, so I'm going to give it a go on Friday, the worst they can do is tell me they are not allowed to sell it to me...

 

[Mal]

I think your best bet is to ring the shop and ask them. I haven't seen any convincing arguments here as to why they wouldn't sell it duty paid.

Indeed. Especially when there are Duty Free stores on the 'landside' portion of airports too.

I'm sure it was Syd Duty Free (also known as F1RST in other branding) that allowed people to buy electrical goods and similar duty paid.

So giving them a call to find out is probably the best course of action.

 

[harvyk]

I'm actually talking about one of the Duty Free shops in ADL. The one past passport control is only open when they have an international flight (as the gates turn back into dom gates at all other times, but the one prior to passport control is usually open regardless, so since I was there anyway I was thinking I'd go try my luck. If it had turned out someone here had tried recently and said it couldn't be done then I'd simply go get a G&T (my other other poison) from the QP

 

[serfty]

... On the question of profit for grog. I'm not sure how having to collect the duty reduces the ability to make a profit. ...

There's the point - selling duty free a retailer has a lot more leeway to make a profit.

Lets have a look at a 1125mL bottle of Bundy - shopping around you can get one for about $50 retail.

That $50 includes 10% GST ($4.55) so lets take that away to give $45.45.

The normal Alcohol concentration of these bottles is 40% so there's excise to be paid on 1125mL of Alcohol of $31.47 leaving ~$14 for the retailer to cover the "cost of sale".

With the same bottle sold Duty Free for $30 there is more than double the amount to cover such costs.

 

[medhead]

There's the point - selling duty free a retailer has a lot more leeway to make a profit.

Lets have a look at a 1125mL bottle of Bundy - shopping around you can get one for about $50 retail.

That $50 includes 10% GST ($4.55) so lets take that away to give $45.45.

The normal Alcohol concentration of these bottles is 40% so there's excise to be paid on 1125mL of Alcohol of $31.47 leaving ~$14 for the retailer to cover the "cost of sale".

With the same bottle sold Duty Free for $30 there is more than double the amount to cover such costs.

Ahh, makes sense.

IMO I would expect, however, for he duty free retailer to just whack the duty on top of the $30. Hence still making their profit, but making the bottle V expensive for a duty paid shopper. Obviously, very few people would buy this bottle of bundy, but something apparently otherwise unobtainable like SoCo 100% proof - maybe someone will stump up the cash.

 

[odysseus]

Agree with codash that you can definitely purchase from a duty free shop when not travelling internationally. However, specific products are not available through this means and I'm not sure if that includes what the OP is after.

 

[notzac]

Such a shame, Smirnoff does a really good 50% vodka in duty free in australia, but it's a little less in normal shops.

Right. Come AFF#3, I'll have to show you some good vodkas..

 

[NM]

With the same bottle sold Duty Free for $30 there is more than double the amount to cover such costs.

Actually, that would be double the "margin". If you consider the astronomical rent the DF shop is likely to be paying the owner of the airport, the "profit" may not be double that of the local LiqueurLand store.

 

[serfty]

I did consider that; there is no doubt the airports' owners are awake to this. In any case I'm sure given such astronomical imposts that an airport landside non duty free purchase of liquor would be prohibitively priced.

Then again - if you can purchase dutyfree off airport then profit can improve significantly for the seller.

About 10 years ago I was put onto a store in Footscray who were undercutting the established stores big time with duty free liquor.

They are no longer in business. IIRC, the story goes the onsite's endeavored to squeeze the seller out using various nefarious methods without success. Eventually the owner was bought out for enough $$$ to ensure he never had to work again.

 

[Mal]

Eventually the owner was bought out for enough $$$ to ensure he never had to work again.

There are also a few off-airport duty free stores that get closed by Customs etc due to them being a little dodgy with their duty claims.

It's been ages since (in Australia) I compared the duty free price of something in a downtown store vs an airport store though. Only recent example was Vanuatu where the downtown stores were quite a bit cheaper than the airport stores.

 

[harvyk]

I went into the duty free store in ADL. (Duty Free Australia). Their answer was simple when I asked about purchasing grog but paying the duty. They can not sell it unless your travelling overseas...

So never mind, it just means I have 7 weeks to wait before I can buy another bottle of SoCo 100 Proof...