Question:

Why can't we have duty-free on arrival?

Answer:
Duty-free on arrival is at the discretion of national fiscal authorities. The traditional basis of duty-free is that it enabled travellers to carry limited quantities of excise goods free of duty and tax on their journey; historically this was to sustain them during long and often arduous journeys by sea, but today most duty-free goods are imported intact into the country of destination. National fiscal authorities have therefore always regarded duty-free sales as exports and, for this reason, the majority of countries do not permit duty-free sales on arrival, as these would represent a far more direct and immediate threat to national tax revenues. However, the decision is entirely one for national fiscal authorities and a number of countries, principally in the Middle and Far East, do allow duty-free on arrival. One European country - Norway - recently decided (July 2005) to allow duty-free on arrival, and Switzerland has also indicated that it will do likewise. Although this has been approved in principle, further consultation is taking place and it is likely to be some time in 2011 before duty-free on arrival is finally introduced in Switzerland. It is possible that other countries may follow suit, but at present most European fiscal authorities remain firmly opposed to the principle of duty-free on arrival. There are currently arrivals shops at a number of UK airports - principally Heathrow, Gatwick and Manchester - but these are only allowed to sell goods on a duty and tax paid basis.

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