Warning - Duty Free is not so Duty Free

[alishac]

We just disembarked the Edge on Sunday out of Ft. Lauderdale and had an amazing cruise. When my husband scanned his card to exit the ship, an alert pinged in the system and the staff person said that he had been selected for a "random" customs check. There was a customs official waiting right at the podium where we checked out, and led us through the terminal to the baggage area and dropped us off with another customs official who had us fill out the old customs form that you used to complete on the ship before leaving. When we were done, we were led to the customs office where several other passengers were also waiting. Someone there took our customs form and went to the back room for about ten minutes, and then came out and asked if we had made any purchases onboard (even though my husband had clearly listed the items we'd purchased on the form). We told him that we had purchased a bracelet, and he asked to see our receipt so he could see if it had been stamped by the ship that it was made in the US. 1. Our receipts were packed away, and 2. the bracelet was Bulgari and clearly was not made in the US. The customs official then pulled out a paper with a list of passengers and the purchases they'd made onboard, and said that it was likely the item, which he knew was jewelry, was not made in America (which we already knew). He then said that because of this we would have to pay duty.

 

As we were waiting to pay this duty that had to be calculated in the back room, we realize that everyone else in the room that was waiting had also made purchases onboard and were being checked against this list that customs had of our purchases. This check was clearly not random - customs had pulled the list ahead of time and had made sure that the passengers were marked with an alert when they were disembarking. They were then requiring everyone who had made an onboard "duty-free" purchase to pay duty. Some of the officials were nicer than others--some were outright harassing passengers who didn't have their receipts with them, even though customs already had a list of what everyone had purchased. We waited 30-45 minutes to go through this process, as they would go in the back room for long spans of time doing I don't know what. One couple had to wait so long that they missed their flight. One elderly woman in a wheelchair on a group tour was left by her group of 40 because they could not wait for her.

 

Now we have made onboard purchases in the past, and have never had this happen, even in the days when you had to fill out the customs form and we would always list our purchases. So be warned - if you make a large purchase on the ship thinking you will avoid paying duty, this is not the case (at least not in Ft. Lauderdale). What made this very frustrating was that there was no way that Celebrity was not aware that this was going to happen - the alerts were placed on our cards and there were customs officials on the ship waiting at the podiums as people disembarked. Also, when the onboard shops manager was called down to clarify a purchase and a guest complained to him, he said that it was the guest's responsibility to keep their receipts and know the requirements.

 

I am not saying that if a duty was owed we should not have had to pay it, but Celebrity should notify guests of this when they make these purchases instead of blatantly lying to them and saying they are duty and tax free. It felt like a scam, and left a bad taste in my mouth.

 

SO be warned before making a duty-free purchase onboard.

[Lisah101]

I thought onboard purchases meant you don't pay sales tax.  That doesn't release you from the US Duty tax which limits how much you can bring into the US includes the value of goods purchased while outside the US.

[Fouremco]

14 minutes ago, alishac said:

I am not saying that if a duty was owed we should not have had to pay it, but Celebrity should notify guests of this when they make these purchases instead of blatantly lying to them and saying they are duty and tax free. It felt like a scam, and left a bad taste in my mouth.

Duty free at the point of sale means that no local or federal taxes or duty have been applied to an item. But when we return to our home country, we still are required to pay duty on any purchases exceeding our personal exemption. I'm amazed at the number of people who continue to think that duty free shops, whether at airports, Caribbean islands or aboard ships, somehow enable you to purchase and import unlimited goods. Celebrity's shops aren't lying to you, you simply don't understand what it means.

 

On the issue of Celebrity providing related information to customs, I don't see a problem. Those who know that they have gone over their exemption amount and that they need to pay aren't going to be upset. As far as I can see, only those who didn't realize that they had to pay, or those hoping to beat the system, will be caught out.

[jalves]

Duty free is only as long as you are under the $ limits.  I suspect your purchase was in excess of that.

[mdpa]

Sorry to hear about your experience. I appreciate you sharing because the clarification of the rules in this thread is helpful.

 

We've never bought anything of value overseas so not enough experience to understand the ramifications.

[mom says]

I see Fouremco has just posted what I was already writing. BIG difference between duty free at point of sale, and the allowable exemption at the Customs desk on re entry. It's not Celebrity's fault if cruisers don't adequately research their Customs allowances (which vary by country), and what duty free actually means.

 

As for Customs having a list of purchases made aboard ship- this is nothing new, and should be no cause for concern by those who are honest in their declarations. And ALWAYS have your receipts with you when going through Customs. Saves a whole lot of time and trouble. I thought that was just common sense.

[Langley Cruisers]

Since you are being honest in posting this, would you mind telling us how much the items cost you? It sounds like you went over your personal exemption. By the way, the cruise line is required to report expensive purchases made on board, but indeed, this was not a random check.

Edited December 18, 2019 by Langley Cruisers

[TeeRick]

You pay US duty on goods with a personal exemption limit of $800 pp in accompanied baggage.  You must be out of the US for 48 hr.  Every US customs form states this when you cruise the Caribbean. 

[cruisestitch]

Yes, duty free doesn't mean that YOU the buyer don't need to pay duty on it, it simply means that the seller didn't pay duty on that item, and thus can offer it at a lower price.  It's a common misconception.  

 

One of the big advantages of purchasing on board is that there is no state and local tax. So you do save money over buying the item in the US.  

 

But as for bringing the items into the US, yes, you might have to pay duty on them, and yes, the seller might be reporting the purchase to the US Customs and Immigration offices.

[Jim_Iain]

Many may be surprised that they may be hit with local and State Sales tax even though they may bring in something "Duty Free".   

 

At least in California, you are suppose to report any large purchases to the Franchise State Board and pay State and Local Sales Tax on purchases from outside the State or Country.   No one does of course.  

 

We returned to the U.S. after living overseas and properly declared an Original Art Work (Painting) which was duty free.   About a year later we received a bill from the Franchise Tax Board for the State and Local Sales Tax.   They had received the information from Customs.

[Cruise Junky]

It was Duty Free up to your personal Duty Free limit.  Obviously the bracelet was above what you were allowed to bring back.

[kearney]

We had a similar experience when we sailed Edge back in Dec 2018. We spent over an hour going through customs because we purchased an item over the duty limit at an onboard shop. Now we expected to go through customs...but were not prepared for the delay. I actually blame it on being day one of the government shut down. Now when we got to the agent he asked if the item we purchase was purchased from a company in the US. I noted that the store had locations in the US but wasn't sure if they were a US company. He let us go.   The item was above the $800 limit so I expected to pay ... but I think that there was only one guy working and tons of people behind us and sitting over in the area to pay duty... so we just happened to luck out.  But OP is correct that duty free only means up to a fairly low level. If you make a purchase onboard, the cruise ship is obligated to notify customs of those purchases.

[pilot]

I believe there is another issue here.  What a person purchases abroad should be between that individual and US Customs.  Celebrity or any other retailer should not be involved in reporting sales to US Customs.

 

I don't believe that Diamonds International or any other retailer in the Caribbean or anywhere else in the world, sends info of what is purchased in their shops to US Customs.

 

I am not suggesting that you should lie about your purchases if you are over the allowed amount.  I'm just saying that is between you and US Customs.

 

If Celebrity and other cruise lines are going to report sales, they should post a sign stating: "All onboard purchases will be reported to US Customs".

[npcl]

5 minutes ago, pilot said:

I believe there is another issue here.  What a person purchases abroad should be between that individual and US Customs.  Celebrity or any other retailer should not be involved in reporting sales to US Customs.

 

I don't believe that Diamonds International or any other retailer in the Caribbean or anywhere else in the world, sends info of what is purchased in their shops to US Customs.

 

I am not suggesting that you should lie about your purchases if you are over the allowed amount.  I'm just saying that is between you and US Customs.

 

If Celebrity and other cruise lines are going to report sales, they should post a sign stating: "All onboard purchases will be reported to US Customs".

Large purchases are reported, I believe that it is part of the requirements of home porting in the US.  They might be able to avoid it, but only at the impact of delay clearing of customs.  I suspect that passengers prefer a speedy clearance with the reporting, rather than a lengthy process without the reporting.

 

PS the casino also reports large wins to the IRS.

[hcat]

I think most know the rules for not bringing in food,   and  the limits for liquor, but not much else.  Never noticed  if the the cruise  line  publishes this in the last day info bulletin?   What is the purchase  amount for jewelry and other items  that must be declared?  Is it $800 ?   Is it an aggregate amount or exoensuve single item..,  Glad we could not afford that beautiful  Celebrity Sapphire pendant!!  No idea where it is made! We'll stick to tee shorts and postcards next yime!

 

By not handing out the forms like they used to do,..,.most folks will have no idea of what must be declared and how they even do so?   Do the stores that report this info also advise purchasers of the duty rule and hand out the form???

 

Edited December 19, 2019 by hcat

[cruisestitch]

"Never noticed  if the the cruise  line  publishes this in the last day info bulletin? "

 

Yes, they do.

 

"Also, when the onboard shops manager was called down to clarify a purchase and a guest complained to him, he said that it was the guest's responsibility to keep their receipts and know the requirements."

 

I guess that pretty much sums it up.

[Jim_Iain]

16 minutes ago, hcat said:

I think most know the rules for not bringing in food,   and  the limits for liquor, but not much else.  Never noticed  if the the cruise  line  publishes this in the last day info bulletin?   What is the purchase  amount for jewelry and other items  that must be declared?  Is it $800 ?   Is it an aggregate amount or exoensuve single item..,  Glad we could not afford that beautiful  Celebrity Sapphire pendant!!  No idea where it is made! We'll stick to tee shorts and postcards next yime!

 

By not handing out the forms like they used to do,..,.most folks will have no idea of what must be declared and how they even do so?   Do the stores that report this info also advise purchasers of the duty rule and hand out the form???

 

 Excerpt from Customs Declaration Form  Below -  U.S. Residents get $800 duty free allowance and this is an aggregate of all purchases.  If you are traveling with you spouse or family members you make one declaration verbal or written (depending on port)  for the allowance x the number of family members.   Even though we now often do not have to file a written declaration it is your responsibility to report purchases over your limit or risk having them confiscated for non-reporting. 

 

Non-U.S. residents are only permitted $100.

 

[hcat]

Thanks.. 

Amazon and the local mall sound like a better deal... less paperwork. 

[mom says]

22 minutes ago, hcat said:

 

By not handing out the forms like they used to do,..,.most folks will have no idea of what must be declared and how they even do so?   Do the stores that report this info also advise purchasers of the duty rule and hand out the form???

 

I think you have to remember that the ship is dealing with a great many different nationalities amongst their passengers. Customs allowances differ amongst these countries, so how would the ship  be able to accurately inform each and every cruiser of their allowances?

 

Just like the need to do your own due diligence regarding passports and visas, it is the cruiser's responsibility to educate themselves about Customs requirements and allowances BEFORE they travel. I can't get over the number of people who expect someone else to spoon feed them all the information they may need on every given subject. Whatever happened to personal responsibility?

[WestLakeGirl]

There may be a lot of nationalities but there are only two categories

 

$800 for U.S. residents

$100 for everyone else

 

it doesn’t matter what country you will eventually travel to, it only matters that you are entering the U.S. when the cruise is over.  

[clskinsfan]

If you think thats bad dont take tobacco into Canada! 

[hcat]

   Mom says;.... pretty tough  love reply...esp for  a  mom...

 

I think a seller who uses  "duty free " in its ads has a responsibility as well. They are quick enough to take  your money and should assist customers  with the proper  info, esp if they are required to report your purchase

 

When we used to be given the forms it was fairly easy  to read through and comply with  the rules. Grateful for OP's warning..

Edited December 19, 2019 by hcat

[JFontaine]

There should be full disclosure of this by the cruise line  - We report purchases over $—-, and your departure from the ship may be delayed by inspectors.  Keep your purchases and receipts handy and plan accordingly for the delay.  
 

They only reason not to be open about this is to take advantage of those who don’t know. 

[hcat]

2 minutes ago, JFontaine said:

There should be full disclosure of this by the cruise line  - We report purchases over $—-, and your departure from the ship may be delayed by inspectors.  Keep your purchases and receipts handy and plan accordingly for the delay.  
 

They only reason not to be open about this is to take advantage of those who don’t know. 

Excellent!

[Fouremco]

10 minutes ago, WestLakeGirl said:

There may be a lot of nationalities but there are only two categories

 

$800 for U.S. residents

$100 for everyone else

 

it doesn’t matter what country you will eventually travel to, it only matters that you are entering the U.S. when the cruise is over.  

I think you'll find that only applies to articles that will be left in the US. As indicated in Post # 17, visitors don't even need to declare items not being left in the US.

 

I regularly bring back items to Canada in excess of $100, but because they are simply in transit through the US post cruise, there is no issue.