Is "Duty-Free" Really Worth It?

A: We've all been there at some point, Adrian. You're waiting at the gate for an hour or two ready to catch a flight, when suddenly it hits you — boredom! You glance over at the "duty-free" shop and decide to explore a little, and before you know it, you hand the cashier an armful of trinkets. And why not? It is duty-free after all, meaning certain commodities like liquor or perfume are exempt from local taxes if purchased by people taking the items abroad.

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But how much are you really saving? Are you even saving anything at all?

For the past couple of years "duty-free" hasn't been what it used to be. Sure, "Duty Free America" stores say they save you 25 to 50 percent on liquor and 15 to 20 percent off fragrances and cosmetics, but depending on individual state sales tax, duty-free and retail may actually be one and the same. So apart from doing a bit of product research before getting to the airport, you might also want to review U.S. Customs policies. Travelers can return with $800 (or less) worth of goods without being taxed, along with a limit of 200 cigarettes and one liter of alcohol. If you go over your allotment, be prepared to be taxed 10 percent upon arrival. How's that for cutting into your savings?

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