A duty-free shop or store is a retail outlet whose goods are exempt from the payment of certain local or national taxes and duties, on the requirement that the goods will be sold to travelers who will take them out of the country, who will then pay duties and taxes in their destination country (depending on its personal exemption limits and tariff regime). 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.
Tax Free World Association (TFWA) announced that in 2011 the Asia-Pacific region made 35% of global duty-free and travel retail sales, more than either Europe or the Americas, which accounted for 34% and 23% respectively. Fragrances and cosmetics, the largest category of goods, were 31% of all sales, while wines and spirits were 17%.
