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Buying
Your Engagement Ring Duty Free
 Whether you suddenly go for a “destination engagement”
and decide to buy an engagement ring while on vacation or whether you’ve
saved the purchase of rings for your destination wedding itself, you might
find yourself shopping for engagement and/or wedding rings on your trip.
What should you know about buying fine jewelry at a duty free shop on
your trip?
First of all, realize just what a duty free shop means. A duty free shop
is one that doesn’t pay duty in that country. For example, a Grand
Cayman jeweler that imports a ring from Amsterdam doesn’t have to
pay duties to the Cayman government on the ring because his shop is duty
free. That doesn’t, however, mean that you don’t have to pay
duties on the ring. You will; the cost will depend on the price of the
ring and the amount of your duty exemption (which is based on where you’ve
traveled…more on that later).
Before your trip, you’ll want to educate yourself about jewelry,
whether that’s diamond engagement rings or titanium wedding bands.
Visit local jewelers and ask questions. Look at local prices and note
them so you’ll have a point of comparison on your travels.
 How
much can you expect to save at duty free shops? In the Caribbean, plan
on about a 10-40% savings (plus the sales tax you’d pay at home).
Don’t forget, however, that you might have duties to pay on return
to the US.
Prices in some duty free ports are open for negotiation as well. The best
way to negotiate? Be at the store doors when they open. We’ve found
that throughout the Caribbean especially, many merchants take the traditional
belief that the first customer of the day will set the tone for the coming
day’s sales; if they lose that first sale, some swear it will spoil
the day’s outcome. It pays to be that first customer! What’s
the worst time to shop? When a large ship (or, as in the case of St. Thomas,
many large ships) comes into port and passengers fill the shops.
Paying Duty
Unless you’ve been out of the country less than 48 hours or have
already used up your exemption with a previous trip within the past 30
days, you can receive an $800 per person duty free exemption. If the two
of you are married, you can add your exemption amount together so it covers
one single item (like a ring!) If your ring cost $2500, you’d receive
an exemption of $1600 and pay duty on the remaining $900.
Your duty free exemption is even greater if you travel to the US Virgin
Islands, Guam, or American Samoa. Because of their relationship with the
US, these destinations have a duty free allowance of $1600 per person…meaning
if the two of you marry you can combine your allowance for a total of
$3200 (one more good reason to get married, right!) In the US Virgin Islands,
St. Thomas is an incredibly popular destination for shopping for engagement
and wedding rings in all types of styles.
For More Information:
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