Swiss Watches, Duty-Free Shopping and U.S. Customs: What You Really Need to Know

Swiss watches are admired worldwide for their precision and prestige. Many travelers believe that buying a watch “duty-free” in Switzerland or Europe exempts them from taxes abroad. Unfortunately, this is a common misconception.

When entering the United States, customs duties of up to 39% may apply to Swiss-made watches. Duty-free only removes local VAT at the point of sale – not the import duties of the destination country.

Key points:

- Duty-free ≠ duty exempt in the U.S.

- U.S. residents must declare newly purchased watches at Customs and Border Protection (CBP).

- Non-declaration can lead to fines, seizure, and penalties.

- Tools like the Carnet ATA allow companies to bring watches temporarily for exhibitions, photo shoots or rentals without paying import duty – provided the watch leaves the country again.

- For private individuals, the Carnet is rarely an option.

Practical examples:

1. Buying a Swiss watch in Zurich Duty-Free and flying to New York → up to 39% duty at entry.

2. An American “renting” a watch in Switzerland → without Carnet ATA, Customs will still apply duty.

3. Long-term owned watch, already in personal use → not subject to new duties if properly documented.

Conclusion:

Duty-free is attractive, but U.S. customs rules prevail. At Green Advisors AG, we support individuals and companies in making tax-efficient and legally compliant cross-border decisions.