Are "Duty Free" items reportable to customs?

[denmarks]

When you purchase items in the duty free shops onboard are they reportable on your customs declaration?

[Husky61]

10 second Google search.

 

Do I declare duty free items?

As a general rule, you're supposed to declare anything you're bringing back from your trip that you didn't take with you. Anything you bought or inherited while abroad has to be declared. If something you took abroad with you received any repairs or alterations, you have to declare those, too.

[denmarks]

4 minutes ago, Husky61 said:

10 second Google search.

 

Do I declare duty free items?

As a general rule, you're supposed to declare anything you're bringing back from your trip that you didn't take with you. Anything you bought or inherited while abroad has to be declared. If something you took abroad with you received any repairs or alterations, you have to declare those, too.

What is not clear is the claim that a ship's duty free shop really is. Don't they stock the items in the US? If I purchase a watch on the ship do I have to claim it?

[denmarks]

I just found this info. I wonder how many cruisers actually report what they purchased onboard.

 

Technically, it means that goods sold in a foreign country have entered that country without local import taxes. It can only be done with a product that has never mingled with regular goods and can’t be sold to locals. To remain duty-free, customers must soon leave the country where they bought the products. This is why you’ll see legitimate duty-free shopping in airports and on cruise ships, because the products aren’t being sold to locals who live near the cruise ports. Upon returning to the US, each traveler has an $800 exemption, and the next $1,000 worth of goods has a flat rate of 3 percent that must be paid. (If you’re traveling as a family, collectively your family may have up to $1,600 exemption.) In other words, if you spend $800 or less, you won’t have to pay a duty. 

[sanger727]

Yes, you declare duty free items. There is an allowance you are allowed to bring back without paying taxes. Not sure what it is. But you can make some purchases duty free. So yes, claim your watch and assuming you don't exceed the allowance, you won't be charged any taxes on it.

[sanger727]

1 minute ago, denmarks said:

I just found this info. I wonder how many cruisers actually report what they purchased onboard.

 

Technically, it means that goods sold in a foreign country have entered that country without local import taxes. It can only be done with a product that has never mingled with regular goods and can’t be sold to locals. To remain duty-free, customers must soon leave the country where they bought the products. This is why you’ll see legitimate duty-free shopping in airports and on cruise ships, because the products aren’t being sold to locals who live near the cruise ports. Upon returning to the US, each traveler has an $800 exemption, and the next $1,000 worth of goods has a flat rate of 3 percent that must be paid. (If you’re traveling as a family, collectively your family may have up to $1,600 exemption.) In other words, if you spend $800 or less, you won’t have to pay a duty. 

 

There's obviously no way for the cruise line to account for purchases you make off the ship. But I have read reports of people making purchases on the ship of over $800 and then the ship will report those purchases to customs.

[sparks1093]

1 minute ago, sanger727 said:

 

There's obviously no way for the cruise line to account for purchases you make off the ship. But I have read reports of people making purchases on the ship of over $800 and then the ship will report those purchases to customs.

I have read that some large merchants will also make a report to customs for large purchases but that might depend on the port.

[Charles4515]

28 minutes ago, sanger727 said:

 

There's obviously no way for the cruise line to account for purchases you make off the ship. But I have read reports of people making purchases on the ship of over $800 and then the ship will report those purchases to customs.

 

They do. My friend bought a Tag watch and thought that duty free meant she did not have to report it. The saleswoman onboard also said she did not have too. So leaving the ship there was a big buzzer that went off when they scanned her card debarking. The ship shops do report purchases. Customs was not happy and she had to pay duty. Duty Free purchases have to be reported. 

Edited October 29, 2019 by Charles4515

[Charles4515]

15 minutes ago, sparks1093 said:

I have read that some large merchants will also make a report to customs for large purchases but that might depend on the port.

 

I heard they do in St. Thomas. A US territory. I heard that in some other ports some merchants do as they get a reward if someone is caught who does not report. I don't know if true.

Edited October 29, 2019 by Charles4515

[Flatbush Flyer]

22 minutes ago, denmarks said:

I just found this info. I wonder how many cruisers actually report what they purchased onboard.

 

Technically, it means that goods sold in a foreign country have entered that country without local import taxes. It can only be done with a product that has never mingled with regular goods and can’t be sold to locals. To remain duty-free, customers must soon leave the country where they bought the products. This is why you’ll see legitimate duty-free shopping in airports and on cruise ships, because the products aren’t being sold to locals who live near the cruise ports. Upon returning to the US, each traveler has an $800 exemption, and the next $1,000 worth of goods has a flat rate of 3 percent that must be paid. (If you’re traveling as a family, collectively your family may have up to $1,600 exemption.) In other words, if you spend $800 or less, you won’t have to pay a duty. 

"Duty Free" is as misunderstood as are other travel related labels like "Med Evac."

 

Regardless of whether an airport or cruise ship shop paid or did not pay import taxes, i.e., "duty" (which theoretically might lower the retail price of their goods), once you purchase those items outside of the US and then return home, you are subject to US import taxes as described on the customs declaration form.

 

Of course, what many travelers don't seem to understand is that "duty free" shops retail prices often are not really such a "great price" when you compare the bottom line to well researched prices at home.

 

 

[sparks1093]

1 minute ago, Flatbush Flyer said:

"Duty Free" is as misunderstood as are other travel related labels like "Med Evac."

 

Regardless of whether an airport or cruise ship shop paid or did not pay import taxes, i.e., "duty" (which theoretically might lower the retail price of their goods), once you purchase those items outside of the US and then return home, you are subject to US import taxes as described on the customs declaration form.

 

Of course, what many travelers don't seem to understand is that "duty free" shops retail prices often are not really such a "great price" when you compare the bottom line to well researched prices at home.

 

 

Spot on, my travel companions on one cruise each purchased one of the watches onboard . When we got home I found very similar watches on Amazon for less. 

[denmarks]

4 minutes ago, sparks1093 said:

Spot on, my travel companions on one cruise each purchased one of the watches onboard . When we got home I found very similar watches on Amazon for less. 

 

If I have non refundable OBC I may spend it on a watch since I consider it free. I am currently wearing a watch I purchased over 4 years ago on a cruise.

[sparks1093]

Just now, denmarks said:

 

If I have non refundable OBC I may spend it on a watch since I consider it free. I am currently wearing a watch I purchased over 4 years ago on a cruise.

I'm not saying you shouldn't buy a watch onboard, but you should at least have a general idea of what comparable watches cost elsewhere so you are aware of what kind of deal you are getting. (And one of the aforementioned travel companions was my son and I haven't seen him wear the watch since the cruise.)

[clo]

28 minutes ago, Flatbush Flyer said:

Of course, what many travelers don't seem to understand is that "duty free" shops retail prices often are not really such a "great price" when you compare the bottom line to well researched prices at home.

 

That has certainly been our experience.  We generally avoid them although it seems lately that one is almost forced to walk through them.

[CPT Trips]

Duty Free merchandise my also be not what you think it is. A friend is a jeweler, both on the ship and on one island he went stores and looked at items. Watches were overpriced in general. On some top end watches the store absolutely refused to disclose gold content and gemstones were misrepresented and artificially enhanced. 

 

Interesting he bought a bracelet because of it's unique design. He got asked to leave another store when he pulled out his loupe.

[SRF]

The funniest thing I ever say was the duty free shop in Hong Kong airport many years ago.  People were going nuts shopping for duty free.  

 

At the back of the store was a column, about 3 feet from the wall.  On the back of the column, facing the wall, was a sign that pointed out that Hong Kong has NO DUTY, and therefore, everything sold in the territory was duty free.  🙂

 

And yes, as others have pointed out, duty free just means that duty was not paid upon entering the country that it was sold.  Not that is forever free from any duty charges.

[SRF]

6 minutes ago, CPT Trips said:

Duty Free merchandise my also be not what you think it is. A friend is a jeweler, both on the ship and on one island he went stores and looked at items. Watches were overpriced in general. On some top end watches the store absolutely refused to disclose gold content and gemstones were misrepresented and artificially enhanced. 

 

Interesting he bought a bracelet because of it's unique design. He got asked to leave another store when he pulled out his loupe.

 

Yes, one has to be careful.

 

Over the years of traveling, I have learned a good bit about gem stones.  They try to tell me how great their stones are, and I start pointing out the flaws (color, clarity, etc).  Most times, they look around, and agree, and then show my some much better stones, at similar prices. 

[iancal]

We travel out of the country three to four times a year.  In nine years of retirement travel I cannot think of one duty free item that we have purchased.  We simply do not find them to be cost advantageous nor do we especially want to haul around a bottle of hootch simply to save $5.

 

We are not jewelry experts and could not easily tell a good fake from the real mccoy.   We do not buy anything that we do not understand or cannot, with any degree of confidence, place a value on.

 

I always browse through the duty free.  You can hardly ignore it in most modern airports.  I think the whole notion of duty free or 50 percent off is a bit of a scam.    We only care about what we buy and the bottom line price.  The rest is noise level.  It will only get worse with the growing trend towards airport retail...regular and so called duty free.

Edited October 29, 2019 by iancal

[Mike981]

There is a possibility of using our on board credit for an Apple product on our next Celebrity cruise. I forgot about the extra 3%.
Thanks for the question.

[SRF]

I travel a lot internationally, and occasionally buy in duty free.  Not because it is duty free, but either it is a good price, or it is only available in duty free.

 

Woodford Reserve had a special version that was only available in US duty free shops.  I hated that, as I had to buy on my way out and lug it all over. 🙂

 

At one point, Glenmorangie had a whisky called Cellar 13.  It was only available in European duty free shops.  I ought several bottles over the years at about $70 each. They now sell for about $350. Currently, there 19 year old is duty free only.

 

Highland Park has had several releases that were duty free only.

 

And so forth.

[sanger727]

On ‎10‎/‎29‎/‎2019 at 12:16 PM, SRF said:

The funniest thing I ever say was the duty free shop in Hong Kong airport many years ago.  People were going nuts shopping for duty free.  

 

At the back of the store was a column, about 3 feet from the wall.  On the back of the column, facing the wall, was a sign that pointed out that Hong Kong has NO DUTY, and therefore, everything sold in the territory was duty free.  🙂

 

And yes, as others have pointed out, duty free just means that duty was not paid upon entering the country that it was sold.  Not that is forever free from any duty charges.

 

I will often shop in the duty free store in the airport on the way home from international trips. Less because they are "duty free" and more because that is the last chance to purchase souvenirs to take home (I like to bring back local food items for friends/family and they usually have a decent selection) and because it's the last chance to use up the foreign currency.

[SRF]

4 hours ago, sanger727 said:

and because it's the last chance to use up the foreign currency.

 

Funny thing is, many duty free shops will NOT take the local currency.  They want Dollars or Euro. 😄

 

[clo]

13 hours ago, sanger727 said:

souvenirs

We been finding so many souvenirs to be "Hecho in China" which for us is a deal breaker.  Not because it's Chinese but because it's not 'local.'  Just us.

[Flatbush Flyer]

1 minute ago, clo said:

We been finding so many souvenirs to be "Hecho in China" which for us is a deal breaker.  Not because it's Chinese but because it's not 'local.'  Just us.

With a little research (or a lot), a savvy collector can find local artist/artisan collectives (or the desired person's own shop in many out-of-the-way locations all over the world. Unique pieces may still have quite the sticker price. But, usually, it will be discounted from what it would cost at some portside gallery.

IMO, most shops within sight of the ship (with the occasional/rare fabulous exception) are not worth your hard earned cash (US or local).

 

[clo]

13 minutes ago, Flatbush Flyer said:

With a little research (or a lot), a savvy collector can find local artist/artisan collectives (or the desired person's own shop in many out-of-the-way locations all over the world. Unique pieces may still have quite the sticker price. But, usually, it will be discounted from what it would cost at some portside gallery.

IMO, most shops within sight of the ship (with the occasional/rare fabulous exception) are not worth your hard earned cash (US or local).

 

I agree with every thing you wrote.  A lot of 'art' that we have is from trips. And I agree that the 'stuff' in the touristy areas are frequently 'crap' or over priced. I'm not saying one has to pay a lot of money. But may $15 instead of $5 for something authentic.