Yes, You Really Do Save Money
How does duty-free work? The U.S. charges import taxes (also called duty) on goods brought in from other countries; rates vary widely but can be rather high. The USVI is allowed to bring in hundreds of items without paying those taxes because it has been classified as a developing country that can benefit from selling merchandise at a low rate. Therefore, the shopkeepers get the goods for less and pass the savings on to the consumer - you.
As if forgoing import taxes isn't benefit enough, St. Thomas has another incentive for shoppers: You don't pay sales tax, so most Americans save another 6 or 7 percent on their favorite eye cream or designer sweater. Apply this benefit to a $10,000 watch, and you're really talking savings!
Before you buy a third name-brand suitcase and stuff it with expensive apparel, pay heed to the shopping limit. St. Thomas has the highest cap in the Caribbean - twice that of other islands and three times those of most European countries - but still limits visitors to $1,200 worth of goods tax- free every 30 days. Kids count, so families can spend extra: Members living in the same household can combine their claims. For example, a couple traveling with two children can purchase up to $4,800 worth of duty-free goods.
How will the government know what you spent? You've got to 'fess up. Upon departure from St. Thomas, tourists must fill out a customs form listing the amount spent on each item. Those exceeding the $1,200 allowance pay a reasonable 5 percent flat rate on the next $1,000 worth of goods. Above that amount, articles are subject to various rates of duty.
Two new places to shop
By Carol M. Bareuther and Mary Hull
Two new shopping consortiums, Crown Bay Carnival Center and Yacht Haven Grande, make St. Thomas an even better destination for those seeking souvenirs and essentials, and the USVI’s capital has long been renowned as a Caribbean retail hub.
Filled with shops, restaurants and service providers, the brand-new Crown Bay Carnival Center has quickly established itself as a community hot spot. Opened in fall 2006, the 57,000-square-foot waterfront complex is designed to look like a West Indian-style village, complete with a sugar mill and pastel-painted buildings topped with traditional red roofs. Crown Bay Carnival Center adjoins a cruise-ship dock.
Shoppers will find apparel, sunglasses, jewelry, perfume, souvenirs, pharmacy products, liquor, and local arts and crafts. For meals, visitors can indulge in Caribbean cuisine or American-style favorites such as sandwiches, pizza and specialty coffees. Travelers can take care of medical, dental, banking, postal, Internet and telecommunications needs.
Those who would rather lime, the local lingo for relax, will enjoy palm-tree-shaded benches and fountains, as well as the bandstand where steel-pan and jazz bands give twilight performances.
Hoping to attract luxury-oriented customers such as those who arrive on megayachts, Yacht Haven Grande, which also opened in fall 2006, specializes in elite retail and jewelry stores that are not found elsewhere in the Caribbean. Waterfront restaurants, condos and offices round out this brand new multimillion-dollar marina, which is just around the corner from the Havensight Mall.
After exploring the 80,000 square feet of retail space, stroll through Yacht Haven Grande’s new park or head to the “events center.” A short walk down the pier over the bay will take you to the yacht club. Does this sound amazing? It is.
That’s only Phase 1. Phase 2, which is scheduled for completion in late 2007, will feature a 70-room hotel, a conference center, a fifth restaurant and an additional 30,000 square feet of retail space.
