I always wondered about the duty-free shops, available to international travellers at airports. First, can you really get a good deal by shopping there? Second, are duty-free shops, essentially, tax-free shopping for the rich, who make up a disproportionate share of international travellers?
Duty-free shops are also on the roads when you return to the U.S. from Canada, so all you need is a car (and proximity) to enjoy their benefits. There may be the same thing on the Mexican border. Though the rich have more opportunity to take advantage of them, anyone can take advantage. Since there a limits to what you can bring back duty-free, it makes for a more level playing field.
You do get pretty good prices on liquor and cigarettes. Less than your local liquor store, certainly.
Do duty-free (tariff/sales-tax free) shops benefit mainly travellers who are mainly the rich?
Yes.
The prices are generally lower, but there are tradeoffs. I go there often as I live near the Canadian border. To get to the duty free shop you have to go either across the bridge or through the tunnel. So when you factor in the cost of the toll and such, it evens out. To make a special trip just for the sake of goods isn’t worth it, but if your going anyway, it is worth it. They ask for your license plate number at the shop so that the customs agents can inspect. If you lie and get caught, they will hassle you each time you go over.
Coming back from Mexico City, I picked up 2 huge bottles of Kahlua for 9 bucks each.
Many countries impose high tariffs on luxury goods such as alcohol, tobacco products, perfumes, consumer electronics, photographic equipment, etc. Their (rich) citizens can sometimes save a bundle shopping at duty free shops in airports. Americans (rich or poor) can usually do better price-wise at home since American import duties are generally not very high.