Credits: Article and images by Chris Malburg @ Quill & Pad. See the original article here - https://quillandpad.com/2023/07/22/shopping-airports-for-a-luxury-watch-customs-duties-and-discounts-explained-reprise/
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Also, if you’ve set an absolute maximum price, be prepared to walk away if the shop refuses to budge. I’ve tried this tactic when bargaining for items other than watches and found that sometimes things change before I reach the door. Or not.
This brings up the issue of local custom. Both Dubai and Doha are in a part of the world where bargaining is a way of life, and airport watch shops may or may not adhere to this custom. It depends on factors probably not apparent to the casual traveler. There are those who say that both these airport shops cater to the uber wealthy. Negotiating for a few dollars off on a watch is seen as trivial in the general scheme of things, so don’t embarrass yourself even trying.
My advice is that if you really want that discount, politely negotiate for it. Respect for the counterparty goes a long way in the Middle East as elsewhere.
The real meaning of “duty free”
“Duty free” simply means the item is not subject to local taxes levied in the place of purchase. It does not mean there’s no customs duty payable on entry into your home country.
Some people have told me they have many times skirted paying the customs duty in their home countries by not declaring the piece purchased abroad – essentially becoming a smuggler.
Don’t take the risk. Customs inspectors (especially in the United Kingdom and United States) have become very adept at spotting would-be smugglers. Their most basic catch is to ask you to remove what they suspect is a newly purchased and undeclared watch.
You may still be unfamiliar with the bracelet hinge and lock, and as you fumble with the new catch you’re almost begging the inspector to slap on the cuffs and perp-walk you away.
Another method of apprehension is running your credit card number right there at the customs podium. Up pops that watch purchase that doesn’t seem to appear on your customs declaration form. Gotcha!
Even more embarrassing if it’s the same watch in plain sight on your wrist that you just claimed was purchased some time before this trip.
If they’re suspicious and decide to rummage through your baggage they’ll likely find the watch receipt itself or at least the shipping receipt for that empty watch box you so cleverly thought you’d ship home so customs wouldn’t find it. In any of these circumstances you’ve lied to a government official on an official customs declaration form that states perjury is a crime.
And you’ve provided written evidence of your crime(s). Now how smart does that sound?
Customs duty rates
These vary based on the country visited. Returning U.S. citizens each have a limit of $800 of tax freedom. The first $1,000 over that limit is taxed at three percent. Amounts over $1,000 pay a duty rate of 6.5 percent, which could still potentially work out to less than if you were making the purchase non-duty free.
For residents of the UK, it’s a little different. Here are the steps to compute your customs charges when importing a wristwatch.
- Convert the watch’s cost appearing on the sales slip to British pounds, being sure to use that day’s exchange rate. Keep your work papers so you can show the customs agent how you computed what the correct duty should be.
- Compute the basic import duty: this requires going to several websites (search “compute UK import duty” to get started) to find the proper classification code of your watch, then the basic import duty rate. Multiply the basic import duty rate by the watch’s cost in GBP (step 1) and you now have the import duty. Save that number.
- Compute the import VAT if applicable. UK import VAT is currently 20 percent. Simply multiply the value of the watch in GBP by 20 percent to find the VAT you might have to pay if applicable.
- Add the basic import duty (step 2) to the VAT (step 3) and you now have the total import duty payable. Some consider this just a starting point to haggle with the customs inspector. Sometimes it even works.
Playing the currency exchange rate
Unless you’re experienced in foreign exchange arbitrage, don’t figure this into your airport purchase decision. Sometimes the currency conversion can work in your favor, sometimes not. Exchange rate swings seldom occur as quickly as you making your decision to purchase a watch while on vacation at a particular airport.
However, the exchange rate could influence the country in which you decide to pull the trigger. Still, everything would have to be equal between the two competing venues: the price, the VAT (if any), the collection on offer, and availability of the piece. That’s probably not going to happen.
The best airports for watch buying
No matter which I choose, there will certainly be readers who say I missed the best and most obvious. Sorry, I’m doing the best I can here. Please feel free to provide your opinions in the comments.
Watches of Switzerland, Heathrow
- A very upscale venue.
- Brands featured: Omega, Longines, TAG Heuer, Bell & Ross, Hublot
- Locations:
- Terminal 3, Level 1, +44 (0)20 8759 6696
- Terminal 4, Level 2, +44 (0)20 8757 3990
- Terminal 5, Level 2, +44 (0)20 8283 6300
- Services: free reserve and collect
- Website: boutique.heathrow.com/en/retailer/watches-of-switzerland
Hour Passion at Gatwick, North Terminal
- Nicely appointed watch shop
- Brands featured: Omega, Breitling, Longines, Rado, Tissot, Hamilton, Swatch, Calvin Klein
- Location: North terminal, +44 129 357 9134
- Services: free reserve and collect
- Email: [email protected]
Dubai International DDF
- Very upscale and large shop
- Brands featured: Glashütte Original, Omega, Breitling, Blancpain, Ulysse Nardin, Cartier, IWC, and others
- Location: Terminal 3, Concourse A, +971 4 – 216-24-53
- Email: [email protected]
Los Angeles International Airport
- Tom Bradley International Terminal
- No listing of watch shops. However, there are a number of authorized dealers within other shops in the Great Hall, the North Concourse, and the South Concourse
John F. Kennedy International Airport, New York
- Omega boutique: well appointed, dedicated company-owned boutique
- Collection: extensive
- Location: International Shoppes, Terminal 1, +1-718-553-6040
Narita International Airport, Tokyo,
- Omega boutique, Terminal 2, Building 3F: small, but well appointed, dedicated company-owned boutique. +81 476-34-8596
- Fa Sa La Watches: small shop featuring Omega, Longines, Blancpain, +81 476-33-1917
- Cartier: beautiful shop, nice collection, +81 476-33-2117
Beijing Capital Airport
- Airco Watch Store 313, Gate/Area: C07, Domestic Waiting Area 3F
- Cartier, Longines, Tissot, Omega, Jaeger-LeCoultre, IWC
Of course there are many more watch shops scattered among the world’s airports. My apologies if I haven’t included your favorites. I’ve found that airport shops, regardless of what they’re offering, are not very well represented on the internet.
Conclusion
Airport shopping may not have the allure of ferreting out an exclusive boutique on some exotic side street in a foreign country. However, airport shops do serve a valuable purpose for dedicated watch buyers and impulse purchasers alike.
Their prices are generally about what you’d find off property. The warranties are the same. The often-extensive collections and availability are what sets many apart from their competition.
Before you leave home my advice when traveling and considering the purchase of a fine timepiece is to contact the authorized dealer or company-owned boutique at one or more airports in which you’ll have a lay- or stopover toward the end of your trip.
Check the price and availability of the piece in which you’re interested net of any duty free and VAT considerations. That’s the maximum price you’re willing to pay.
During your trip visit watch shops to your heart’s content. Compare pricing (including customs duty payable) and availability with what you found at the airport. Should you find the one while on your trip, grab it. If not, your fallback is the airport shop at the end of your trip.
Happy travels.
* This article was first published on May 11, 2018 at Shopping The Airports For A Luxury Watch: Customs, Duties, And Discounts Explained. You might find the comments under that article interesting.
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Credits: Article and images by Chris Malburg @ Quill & Pad. See the original article here - https://quillandpad.com/2023/07/22/shopping-airports-for-a-luxury-watch-customs-duties-and-discounts-explained-reprise/