duty-free shop

Duty-free shops (or stores) are retail outlets that are exempt from the payment of certain local or national taxes and duties, on the requirement that the goods sold will be sold to travelers who will take them out of the country.  Which products can be sold duty-free vary by jurisdiction, as well as how they can be sold, and the process of calculating the duty or refunding the duty component.

However, some countries impose duty on goods brought into the country, though they had been bought duty-free in another country, or when the value or quantity of such goods exceed an allowed limit.  Duty-free shops are often found in the international zone of international airports and sea ports, but goods can be also bought duty-free aboard airplanes and passenger ships.  They are not as commonly available for road or train travelers, although several border crossings between the United States and Canada have duty-free shops for car travelers.

Duty-free outlets were abolished for intra-EU travelers in 1999, but are retained for travelers whose final destination is outside the EU.  They also sell to intra-EU travelers but with appropriate taxes.  Some special member state territories such as Åland, Livigno, and the Canary Islands, are within the EU but outside the EU tax union, and thus still continue duty-free sales for all travelers.

Sources:

http://en.wikipedia.org/wiki/Duty-free_shop