Duty Free Cigars

Ok, so I have a few questions regarding Duty Free.

I am sitting in Miami International, heading to Grand Cayman, and I went to the Duty Free Americas here and saw that the davidoff 4 packs were as much or more than the local B&Ms, why is that? Shouldn't Duty Free be cheaper.

Secondly (if this question is inappropriate, please just edit it down), how does Duty Free work coming back into the states. If I buy some cigars from another island in the Duty Free, will it flag me when I get to customs?

Thanks gang!!!

[markem]

No one said that duty free was inexpensive. They have a captive market and, as I understand it, large rents.

As far as I know, no duty free shops outside the US collaborate with US customs. Mind you, US customs isn't interested in what you purchase legally here and are taking someplace else.

[BengalMan]

Your better off purchasing in the Grand Cayman's on your way back.

[Bubba - NJ]

I checked out the Duty Free in Philly and the booze prices seemed really good . I don't smoke any of the cigars they had there so for prices I can't help with that .

[kydsid]

All duty free is a shop operating in a country without having to pay any taxes on those items under the assumption those items will be leaving the country. The pricing structure is not compared to what is available in the country it is located but is priced against where the customers will be going. It may be expensive to you but those cigars are probably cheaper than where someone is headed.

Customs doesn't care if it is duty free or not there is no such thing. Customs does care what you have and where it came from, even if you bought it in the US and are just bringing it back.

Customs, at least US Customs and Border Protection, has no way to know if you went to a duty free shop before returning to the US, unless of course you have a big duty free bag when you arrive and they want to know what they can charge you duty for.


Any other questions just let me know.

I think duty free smokes are inexpensive as they are free from the tariffs and duties.
What do you guys suggest?

[Don Fernando]

Originally Posted by DougBushBC

Secondly (if this question is inappropriate, please just edit it down), how does Duty Free work coming back into the states. If I buy some cigars from another island in the Duty Free, will it flag me when I get to customs?

No, it will not flag you, but if you are picked out for a check you're in trouble.

[Don Fernando]

Originally Posted by kydsid

All duty free is a shop operating in a country without having to pay any taxes on those items under the assumption those items will be leaving the country. The pricing structure is not compared to what is available in the country it is located but is priced against where the customers will be going.

Sorry, but that sounds like bs to me, because from most international airports (like Miami) you can fly to so many destinations that pricing the items based on where you are going is impossible. The shop doesn't know weather you fly to cheap India or expensive Australia.

[pnoon]

Originally Posted by goclarkanderson

I think duty free smokes are inexpensive as they are free from the tariffs and duties.
What do you guys suggest?

I suggest you introduce yourself in the New Inmate forum and let us know why you are here. Also, you definitely need to read the rules and guidelines threads to be familiar how things operate here.

[kydsid]

Originally Posted by Don Fernando

No, it will not flag you, but if you are picked out for a check you're in trouble.

Only if you are a US Citizen. You would have no problem other than the possible seizure and/or destruction of the cigars IF they are from Cuba. A USC would have the same thing plus a small chance that US Treasury would be interested if and only if it was directly reported to them.

Originally Posted by Don Fernando

Sorry, but that sounds like bs to me, because from most international airports (like Miami) you can fly to so many destinations that pricing the items based on where you are going is impossible. The shop doesn't know weather you fly to cheap India or expensive Australia.

Well there are many factors here including market research to ID your customer base. In addition to requirements in some places to put down or provide proof you are an international departing passenger. A lot of information can be gained from research models. Add a captive audience and knowledge about departing flights and voluntarily given info such as destination and it is very possible. But hey what do I know I just audited duty free stores for a living once upon time.

[Don Fernando]

Yes, you have to prove that you are an international departing passenger, but you show that proof and your destination after you picked the item from the shelves, where you already have seen the price. If the prices would be different for every destination, yeah, I would follow your story, but that isn't the case.

[Snake Hips]

Originally Posted by Don Fernando

Yes, you have to prove that you are an international departing passenger, but you show that proof and your destination after you picked the item from the shelves, where you already have seen the price. If the prices would be different for every destination, yeah, I would follow your story, but that isn't the case.

I don't think that's what he's saying...

I think he means it's possible that they gather the information about passenger destinations and formulate their pricing from where the most customers are headed, not that they have different prices for every destination. Which I myself don't think is true, I just want to clarify what I think he's saying. I think they just price the products like every other business (cost plus overhead), and since it's tax free it ends up being cheaper than it would be any other place in the country the shop is in.

Duty free may not be as cheap as you would like them to be...but duty free on a ship cost me about as much as they would at a local B&M...but I didn't have to pay any taxes...so that saved me the 68% tax, which adds up to savings.