Helpful information about the duty-free shops in arrival terminals
Overview
- On-arrival duty-free shops were opened at Incheon International Airport (two shops in Terminal 1, one shop in Terminal 2) from May 31 of 2020 in a bid to reduce inconvenience experienced by travelers
- It is possible to purchase goods worth up to US$800 at the arrival duty-free shops (In addition to the applicable duty-free limit, liquor and perfume can be bought within the separate duty-free range), and the Korean products sold at the duty-free shops in the Arrivals Hall are deducted first from tax exemption allowances.
- At the time of customs clearance of the belongings of a traveler, taxation is done by summing the goods purchased at the duty-free shops in the Arrivals Hall and those purchased abroad.
Duty-free Purchase limit
Goods worth up to US$800 can be purchased except liquor and perfume, which can be purchased additionally within a separate duty-free range
Case 1
- Total purchase: US$500 purse & US$290 clothes
- Eligible for duty-free purchases as the total amount of products is US$790, which is less than the purchase limit of US$800
Case 2
- Total purchase: US$500 purse, US$290 clothes, and US$30 accessories
- Ineligible for the duty-free regime as the total amount of purchase is US$820, which is more than the purchase limit of US$800
Case 3
- Total purchase: US$500 purse, US$290 clothes, US$330 liquor, and US$50 perfume
- Eligible for duty-free purchases as liquor and perfume can be purchased additionally by separate tax exemption allowances even though the total amount of purchase, US$1,170, exceeds the purchase limit of US$800
The price of Korean products is deducted first from the duty-free range
If the total cost of the goods purchased abroad or at tax-free shops (including downtown, departure, and arrival duty-free shops) exceeds US$800, the amount exceeding the tax exemption allowances of US$800 shall be taxed. Note, however, that the price of Korean products purchased at the duty-free shops in the Arrival duty-free shops is deducted first from tax exemption allowances.
Case 1
- Total purchase: US$800 bag (downtown duty-free shop), US$800 clothes (abroad), and US$800 Korean cosmetics (on-arrival duty-free shop)
- Customs duties for US$800 Korean cosmetics purchased at the On-arrival duty-free shop will be exempted. (Purse and clothes will be taxed.)
Case 2
- Total purchase: US$800 bag (downtown duty-free shop) and US$800 clothes (abroad)
- The price of clothes (US$800) will be deducted from tax exemption allowances, and the remaining cost of goods (US$800 bag) will be taxed.
The simplified duty rate is 25% for clothes and 20% for the bag, so the customs duties on clothes are deducted first for the traveler’s benefit.
Case 3
- Total purchase: US$800 bag (downtown duty-free shop), US$800 clothes (abroad), and US$800 foreign-made sunglasses (On-arrival duty-free shop)
- Similar to Case 2 (Duties for US$800 clothes are deducted) *The simplified duty rate for sunglasses is 20%.
The liquor or perfume purchased abroad, at the departure terminal, downtown duty-free shop, etc. is covered by tax exemption separately from basic duty exemption. If Korean liquor or perfume is purchased at the duty-free shops in the Arrivals Terminal; however, Korean alcohol or perfume is exempted from the allowance first.
Case 1
- Liquor 1 bottle (purchased abroad) and Korean made liquor(Traditional liquor) 2 bottle (purchased at a duty-free shop in the Arrivals Hall)
- Korean made liquor is exempted, and hard liquor is taxed.
Case 2
- Liquor 2 bottle (purchased abroad) and perfume 1 bottle (purchased at a downtown duty-free shop)
- Both hard liquor and perfume are exempted
