Duty free items as the term implies, are products that do not have any kind of sales tax, VAT or customs duty placed on them making them more attractive in price terms than those items that attract these taxes and duties. These are most commonly found in airports or in flight shops and cater to international travelers. Duty free items include a wide array of merchandise including liquor, perfumes and high end jewelry.
Why are some products duty free Duty is a tax or fee that is levied by the government on products that are sold within the country. When these products are purchased by a customer who is leaving the country, the government often waives this fee. Duty free shops cater to these `leaving customers' and are not liable to pay this duty.
This kind of duty is levied to discourage imports and encourage exports as exported goods earn extra gains. Customs tax levied on imported goods is called import duty and the one charged on exports is called export duty. People try and buy things from abroad for a lesser price hoping to make a gain but the import duty fails their mission. Hence, the goods available locally are preferred. However, the thing we cannot find in our country has to be imported and the price always exceeds the retail selling price in that particular country. People can take heart from the fact that the maximum import duty that is levied in India is 5 percent.
Nonetheless, people still try to look for goods without having to pay the customs. Ironically, they succeed in this. Duty free products are available on the flight we travel in. During a flight each person gets a duty free catalog, which has a list of things that are sold. This is a good way to save our money by purchasing things at a reasonable price. The flight attendant makes the announcement of sale of goods and also brings over the cart to our seat. We can have a thorough look at the products and then purchase them. The goods include books, magazines, watches, accessories, mobile phones and jewelry among many more articles.