When individuals buy goods abroad and bring them back to the United States, they are subject to taxation on the value of those goods. Currently, travelers may bring back $400 worth of foreign-acquired goods without having to pay a duty on those goods, known as “duty free” merchandise. There are some important limitations to the duty free exemption:

• travelers must have been outside the United States for at least 48 hours,
• they may not have imported duty free goods within 30 days, and
• they must be able to present the purchases for inspection upon their arrival at the port of entry.

After travelers have used their exemption on their first $400 worth of duty free goods, the next $1,000 worth of items they bring back for personal use or gifts are subject to duty, taxed at 10%. For some products, there are additional limits on the quantity they may bring into the United States duty free. For example,

• 100 cigars,
• 200 cigarettes, and
• one liter of wine, beer, or liquor.

Depending on where travelers purchased some items, their duty free exemption may be higher. The exemption is $600 for goods purchased in any of 24 specific countries in the Caribbean and Central America. For a group of U. S. possessions (the U.S. Virgin Islands, American Samoa, and Guam), the exemption is $1,200.