How do US duty-free stores not directly on the land border work?

How do US duty-free stores not directly on the land border work? - Top view of paper world map with continents and different countries oceans and seas placed in sunny room

My experience with duty-free stores located on the US-Canada border has been on the Canadian side. In the three Canadian stores I've been to (two in Quebec and one in British Columbia) the only exit from the duty-free store leads directly to the US port of entry, so that any shopper who has visited the store has to cross the border.

However, on the US side duty-free stores don't seem to be set up this way -- the duty-free stores in Derby Line, VT and Highgate Springs, VT, for instance, are located on public roads not on the border and a driver could easily visit the store and then not proceed to Canada.

Given that, how do these US stores ensure that travelers who've purchased goods there take them out of the country (in this case, into Canada)?



Best Answer

My hunch was that they would apply the same method they use at airports: deliver the goods at a point where you are sure to exit the country. That's what their FAQ says:

To be eligible for duty free shopping, you must:

  • Be leaving the United States (usually for more than 48 hours).
  • Take the items with you into another country (As required by U.S. law, you will receive your items as you exit the country, either as you get on the plane or as you drive across the border).
  • Take into consideration that most countries impose restrictions on the quantity of duty free merchandise you can bring in.

(emphasis mine).

Not sure how exactly they organise that, though, it seems a bit more complex than it would be at an airport (especially in terms of timing), and I don't quite see a practical location where they could hand over the goods and be sure you don't turn back.

The alternative could be that they do not really sell duty free, just sell at a discount...




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Can you go to duty free without crossing the border?

You cannot stop at Duty Free and stay in Canada. In order for shoppers to take advantage of the savings in tax, you must also cross the border.

Can you buy duty free Going to USA?

Can I legally purchase liquor at the Peace Bridge Duty Free on my way into the USA? YES, you can legally purchase liquor at the Peace Bridge Duty Free on any trip to the USA, as long as it is for personal consumption.

Who owns duty free shops in Canada?

The Canada Border Services Agency (CBSA) licenses duty free operators, which sell goods to travellers who are about to leave Canada. Duty free shops are located at 52 land border and international airport locations across Canada.

Can you buy duty free on arrival in Canada?

You can claim up to CAN$800 worth of goods without paying any duty and taxes. You must have the tobacco and alcohol with you when you enter Canada, but the rest of the goods can arrive later by mail, courier or delivery agency.



What's the Deal with Duty Free?




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