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What are Duty Free Shops at airports?

Whenever we travel through flight, prior to boarding most of us take a halt at duty free shops just to pick some goods for our loved ones. Lets find out why the products at duty free shops are comparatively cheaper than usual market and what makes them the most preferred options for travelers.

Duty free stores sell the products without imposing the local import taxes of the particular nation. As these duty free shops are primarily for the departing passengers, it is believed that the passengers would take the goods to their own country and hence no local taxes are charged. This is what makes these products cheaper.

The first ever duty free store was established in 1947 at Shannon Airport by Brendan O’Regan. It was set up for passengers travelling between Europe and North America as their flights took a halt for refueling at Ireland’s Shannon Airport. This shop gave birth to the idea of setting up duty free shops world wide.
Later in November,1960 Charles Feeney and Robert Warren Miller created the Duty Free Shoppers which started operations from Hong Kong and then began to spread all around the world. Since then duty free shops have been a big success and is now set up all across the globe on almost all major airports. There are some airlines who provide duty free goods during flight. Airlines such as Emirates, Delta , Singapore Airlines have this feature.

Some duty free shops are also established away from the airports. Anyone visiting the shop can purchase the goods if their passport indicate that they have been in the country for less than 6 months.

It is the local VAT that is not applied on the goods in duty free shops. This local VAT can be ranging between 7% to 33% depending on the country, which considerably lowers the prices of these goods. Swiss chocolates and alcoholic drinks are major attractions for the passengers.

So next time you travel through flight, there is no harm grabbing some stuff from these duty free shops.

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