Duty free items as the term implies, are products that do not have any kind of sales tax, VAT or customs duty placed on them making them more attractive in price terms than those items that attract these taxes and duties. These are most commonly found in airports or in flight shops and cater to international travelers. Duty free items include a wide array of merchandise including liquor, perfumes and high end jewelry.
Why are some products duty free Duty is a tax or fee that is levied by the government on products that are sold within the country. When these products are purchased by a customer who is leaving the country, the government often waives this fee. Duty free shops cater to these `leaving customers' and are not liable to pay this duty.