Legal Definitions - duty-free

Definition: Duty-free refers to products that are imported or exported without any taxes or duties being applied to them. This means that the products can be sold at a lower price than they would be if taxes were added.

Example 1: When you travel to another country, you may be able to buy duty-free items at the airport. This could include things like alcohol, perfume, or electronics. Because these items are not subject to taxes, they may be cheaper than they would be in a regular store.

Example 2: A company may choose to import goods duty-free in order to save money. For example, if a clothing company imports fabric from another country without paying duties, they can make their clothes at a lower cost. This could allow them to sell their clothes at a lower price than their competitors.

The examples illustrate the definition of duty-free by showing how products can be sold at a lower price when taxes are not applied. In both examples, the products are imported or exported without any taxes or duties being added, which allows them to be sold at a lower cost. This can benefit both consumers and businesses by making products more affordable or allowing companies to save money on production costs.