Can someone explain Duty Free???

[tams7480]

I was on NCL Breakaway and returned from Bermuda the first of October. While I was on the ship I purchased two watches that totaled $2000. When I went through customs in New York the customs agent said I needed to pay tax on the watches since I was over my individual limit. I explained that I had purchased the watches on the ship and was told that they were duty and tax free. The customs agent said he would let me "slide" this time.

 

So my questions are "What is Duty Free?" "Should I have not listed the watches on the customs form?"

 

I had purchased a similar watch when I was on the Epic and the customs agent in Miami just let me walk on by.

 

Thanks in advance.

[PeanutBudder]

They can sell Duty Free items and market it that way but you need to know your own country's rules. Your duty free limit is based on the amount of time that you are away...and that limit varies country to country. The best thing to do, is check out your country's limits on what value of goods that you can bring back after vacation without paying tax.

 

I live on a border city of USA and Canada....we can shop in the USA duty free store anytime we cross BUT we will pay tax at the Canadian border if it exceeds are limit based on the time away. For example, same day shopping it is 0, therefore you pay tax on the whole amount.

 

Hope that clarifies it for you.

[Va. Plumber]

I think your mistake was listing them on the customs declaration. Just like buying in St. Thomas, it doesn't incur duty.

[agabbymama]

I think this is a very good explanation of "Duty Free". I believe the U.S. limit is $800 per person (I usually use mine & my husbands together).

 

Duty-free shops (or stores) are retail outlets that are exempt from the payment of certain local or national taxes and duties, on the requirement that the goods sold will be sold to travelers who will take them out of the country. Which products can be sold duty-free vary by jurisdiction, as well as how they can be sold, and the process of calculating the duty or refund the duty component.

 

However, some countries impose duty on goods brought into the country, though they had been bought duty-free in another country, or when the value or quantity of such goods exceed an allowed limit. Duty-free shops are often found in the international zone of international airports and sea ports, but goods can be also bought duty-free on board airplanes and passenger ships. They are not as commonly available for road or train travelers, although several border crossings between the United States and Canada have duty-free shops for car travelers. In some countries, any shop can participate in a reimbursement system, such as Global Blue where a sum equivalent to the tax is paid, but then the goods are presented to the customs and the sum reimbursed on exit.

 

These outlets were abolished for intra-EU travellers in 1999, but are retained for travelers whose final destination is outside the EU. They also sell to intra-EU travelers but with appropriate taxes. Some special member state territories such as Åland, Livigno and the Canary Islands, are within the EU but outside the EU tax union, and thus still continue duty-free sales for all travelers.

 

Tax Free World Association (TFWA) announced that in 2011 Asia-Pacific, with 35 percent of global duty-free and travel retail sales, beat Europe and Americas, with these regions accounting for 34 percent and 23 percent respectively. 31 percent of sales came from the fragrances and cosmetics category, followed by the wine and spirit category with 17 percent.[

[jame_g]

Even for duty-free, there are limits on the dollar value of the goods, the amount of alcohol, and amount of cigarettes. If you go slightly over, they are not likely to bother collecting the tax. However, you should definitely claim items. If they decide to check, and you haven't claimed something, the penalty is much greater than the tax would be. And while they have discretion to let claimed items slip through without a tax, I believe the penalties and tax are mandatory for any unclaimed items. To date, it is rare for them to search, but it can happen. They tend to question obvious things like jewelry that is worn and alcohol being carried off in the shops boxes. Don't be surprised if they start accessing purchase records and other information to begin targeting passengers for searches in the future. We're becoming a country of using automated information so that we can use penalties as a significant source of revenue.

Edited November 7, 2013 by jame_g

[Sparkygirl]

Each individual tracing abroad that is a US citizen returning to a US port is aloud $800 in duty free products anything over that you pay tax on.

 

Families traveling together May pool there allotment and children and infants have the same amount.

 

Thus when we travel DH, myself and our 2 year old travel we are each able to bring back 1 L of alcohol and $800 for a total 2,400. Your watches wouldn't have been over the limit for us.

 

If planning on buying jewelry or other big purchases plan a cruise that includes a US territory (Puerto Rico or US Virgin Islands) you are allowed $800 duty free from us territories in addition to your $800 for the rest of the Caribbean basin.

 

On a cruise including US territories our family of 3 would be allowed 4,800 in products duty free provided half were bought in US territories.

 

 

Sent from my iPhone using Tapatalk

[Fuzz0521]

Just to add to the responses"

 

"Duty free" means you don't pay duty (and sometimes local tax) on your purchase when you buy it. It does NOT mean you don't owe US import duty on your purchase when you enter the country. As other writers have explained, a certain amount is exempt from duty, depending on how long you have been out of the country, but ALL purchases should be declared on the customs form, whether "duty free" or not. Many times, customs agents will allow small amounts over the limit. I'm surprised this purchase was allowed to slip by, since it was undeclared. The purchaser could have been fined, in addition to having to pay the duty.

[sparks1093]

I was on NCL Breakaway and returned from Bermuda the first of October. While I was on the ship I purchased two watches that totaled $2000. When I went through customs in New York the customs agent said I needed to pay tax on the watches since I was over my individual limit. I explained that I had purchased the watches on the ship and was told that they were duty and tax free. The customs agent said he would let me "slide" this time.

 

So my questions are "What is Duty Free?" "Should I have not listed the watches on the customs form?"

 

I had purchased a similar watch when I was on the Epic and the customs agent in Miami just let me walk on by.

 

Thanks in advance.

 

To put it succinctly- duty free means free from export duty. The duty the CBP officer was going to charge you was an import duty.

[kylenyc]

I think your mistake was listing them on the customs declaration. Just like buying in St. Thomas, it doesn't incur duty.

Are you suggesting that people violate the law. :confused: Other posters reported that large purchases are reported to customs. Not declaring purchases will make the process of passing through customs more difficult.

[Tiggertastic]

And if you are from the UK coming off a cruise that finishes in the USA, you only get $150 each

 

So we make sure that we purchase anything on the ships on the med cruises

[DevonianCruiser]

There was a huge thread on Royal Caribbean recently about someone that had purchased a $10,000 watch. If you buy onboard the ships are obligated to report the purchase to customs as everyone that had spent a large amount was on a list.

 

I won't make any personal comments on it as reading that thread emotions certainly ran high on what's legally or morally right or wrong. It's worth a read if you want to know more about tax etc.