What does it mean if a product is classified as 'duty-free'?

When a product is classified as 'duty-free', it specifically indicates that it is exempt from excise duties, which are taxes imposed on specific goods such as alcohol and tobacco. This exemption often applies to goods purchased in certain settings, such as at international airports or onboard international flights, where travelers can buy products without paying the associated excise duties.

The term 'duty-free' does not generally mean that the product is free from all types of taxation, such as income tax or sales tax, which may still apply under different circumstances. Therefore, while other types of taxes might still be applicable, being duty-free specifically highlights the absence of excise duty on the product in question.