Image Credit: Wikimedia Commons User Vradwiki

When you’re traveling through an international terminal, you’re likely to see signs for duty free shops.

The concept goes back decades, and what it’s supposed to mean is that you can buy merchandise in a duty free store that carries no additional tax or duty.

Essentially, these are items you can buy for less on your international flight. Well, that’s what it’s supposed to mean, anyway.

But in many cases, you are NOT getting a great deal with duty free shopping.

First, you need to understand that anything you buy in a duty free store may only be duty free in that country.

You may, in fact, owe duty when you return to the U.S.

The good news is that your duty exemption means you can bring up to $800 worth of goods duty free to the U.S.

For the next $1000 over that, it’s a flat 30 percent tax.

But it also comes down to individual price.

For example, if you see a duty free store at the airport in Hong Kong, it’s misleading because ALL of Hong Kong is duty free—so where is the bargain?

If you’re returning from the U.S. Virgin Islands, that’s where you can still get a bargain—up to $1600 worth of goods can come back duty free.

Keep reading for more travel tips.