Karen Duffer

Wait, even though they ship it all the way to Milan?

Wait, even though they ship it all the way to Milan?

Wait, even though they ship it all the way to Milan?

Wait, so if we aren't always getting a huge deal on products and the governments are losing out on tax revenue, then what's the point?

Wait, so if we aren't always getting a huge deal on products and the governments are losing out on tax revenue, then what's the point?

Wait, so if we aren't always getting a huge deal on products and the governments are losing out on tax revenue, then what's the point?

And then once everyone has a duty-free shop, then there's pressure just to make your airport's duty-free shop bigger and brighter and fancier.

And then once everyone has a duty-free shop, then there's pressure just to make your airport's duty-free shop bigger and brighter and fancier.

And then once everyone has a duty-free shop, then there's pressure just to make your airport's duty-free shop bigger and brighter and fancier.

OK, Cosmopolitans, if you spot a glitch in the international trade system, we would love to hear about it. We are at Planet Money in the usual places and planetmoneyatnpr.org on email.

OK, Cosmopolitans, if you spot a glitch in the international trade system, we would love to hear about it. We are at Planet Money in the usual places and planetmoneyatnpr.org on email.

OK, Cosmopolitans, if you spot a glitch in the international trade system, we would love to hear about it. We are at Planet Money in the usual places and planetmoneyatnpr.org on email.

Today on the show, we have the story of Brendan O'Regan, a former bartender turned entrepreneur who said, let the world have its crevasse tax-free.

Today on the show, we have the story of Brendan O'Regan, a former bartender turned entrepreneur who said, let the world have its crevasse tax-free.

Today on the show, we have the story of Brendan O'Regan, a former bartender turned entrepreneur who said, let the world have its crevasse tax-free.

In the 1940s, when people were traveling from New York to London or Paris, they were in these propeller planes. And to refuel, they had to land in the first runway they saw after crossing the Atlantic. And that was Western Ireland, County Clare, along the Shannon River.

In the 1940s, when people were traveling from New York to London or Paris, they were in these propeller planes. And to refuel, they had to land in the first runway they saw after crossing the Atlantic. And that was Western Ireland, County Clare, along the Shannon River.

In the 1940s, when people were traveling from New York to London or Paris, they were in these propeller planes. And to refuel, they had to land in the first runway they saw after crossing the Atlantic. And that was Western Ireland, County Clare, along the Shannon River.

This is when our duty-free hero, Dr. Brendan O'Regan, enters the story.

This is when our duty-free hero, Dr. Brendan O'Regan, enters the story.

This is when our duty-free hero, Dr. Brendan O'Regan, enters the story.

When the movie stars got their pictures taken, you could sometimes see O'Regan in the background. He's a dapper man with sandy hair, slicked back.

When the movie stars got their pictures taken, you could sometimes see O'Regan in the background. He's a dapper man with sandy hair, slicked back.

When the movie stars got their pictures taken, you could sometimes see O'Regan in the background. He's a dapper man with sandy hair, slicked back.

Wait, O'Regan created the very first Irish coffee? It's delicious. Irish coffee is the best.

Wait, O'Regan created the very first Irish coffee? It's delicious. Irish coffee is the best.

Wait, O'Regan created the very first Irish coffee? It's delicious. Irish coffee is the best.

Well, not everything, because O'Regan noticed that there was this loophole. In the British Isles, it had been a tradition that sailors about to head off on a long sea voyage could bring on board rum and whiskey without. paying duties.

Well, not everything, because O'Regan noticed that there was this loophole. In the British Isles, it had been a tradition that sailors about to head off on a long sea voyage could bring on board rum and whiskey without. paying duties.

Well, not everything, because O'Regan noticed that there was this loophole. In the British Isles, it had been a tradition that sailors about to head off on a long sea voyage could bring on board rum and whiskey without. paying duties.

The government stood to lose a lot of money if they went with this tax-free scheme because in some cases, when you buy alcohol, most of the price tag is actually taxes.

The government stood to lose a lot of money if they went with this tax-free scheme because in some cases, when you buy alcohol, most of the price tag is actually taxes.

The government stood to lose a lot of money if they went with this tax-free scheme because in some cases, when you buy alcohol, most of the price tag is actually taxes.

Plus, then when you bring the wine to the counter, often you have to pay sales tax again on the total.

Plus, then when you bring the wine to the counter, often you have to pay sales tax again on the total.

Plus, then when you bring the wine to the counter, often you have to pay sales tax again on the total.

So Ireland said, all right, let's try it. But we are keeping you on a very short leash.

So Ireland said, all right, let's try it. But we are keeping you on a very short leash.

So Ireland said, all right, let's try it. But we are keeping you on a very short leash.

Wait, was this like a farmer's market in the airport?

Wait, was this like a farmer's market in the airport?

Wait, was this like a farmer's market in the airport?

And this was a hit. Within just six months, O'Regan had to expand the store because all of these other manufacturers wanted their products in there, too. I mean, this was a captive market of rich people. Sure. On vacation. Yeah. So in came the Leica cameras and the Omega Swiss watches.

And this was a hit. Within just six months, O'Regan had to expand the store because all of these other manufacturers wanted their products in there, too. I mean, this was a captive market of rich people. Sure. On vacation. Yeah. So in came the Leica cameras and the Omega Swiss watches.

And this was a hit. Within just six months, O'Regan had to expand the store because all of these other manufacturers wanted their products in there, too. I mean, this was a captive market of rich people. Sure. On vacation. Yeah. So in came the Leica cameras and the Omega Swiss watches.

Nougat? Nougat. Anyway, but I know that duty-free was a huge break for the chocolate bar, which is odd because there aren't really heavy duties and taxes on chocolate, not like alcohol. But... It did fit the duty-free aesthetic. It was kind of weird, fancy-looking. Yet you could buy it with leftover change in your pocket from what you didn't spend on that Swiss watch.

Nougat? Nougat. Anyway, but I know that duty-free was a huge break for the chocolate bar, which is odd because there aren't really heavy duties and taxes on chocolate, not like alcohol. But... It did fit the duty-free aesthetic. It was kind of weird, fancy-looking. Yet you could buy it with leftover change in your pocket from what you didn't spend on that Swiss watch.

Nougat? Nougat. Anyway, but I know that duty-free was a huge break for the chocolate bar, which is odd because there aren't really heavy duties and taxes on chocolate, not like alcohol. But... It did fit the duty-free aesthetic. It was kind of weird, fancy-looking. Yet you could buy it with leftover change in your pocket from what you didn't spend on that Swiss watch.

A private company, DFS, opened the first duty-free shop in the United States, in Hawaii.

A private company, DFS, opened the first duty-free shop in the United States, in Hawaii.

A private company, DFS, opened the first duty-free shop in the United States, in Hawaii.

These days, Toblerone makes special chocolate bars specifically designed for duty-free. And it's actually, if you think about it, the perfect place for test marketing and data gathering.

These days, Toblerone makes special chocolate bars specifically designed for duty-free. And it's actually, if you think about it, the perfect place for test marketing and data gathering.

These days, Toblerone makes special chocolate bars specifically designed for duty-free. And it's actually, if you think about it, the perfect place for test marketing and data gathering.

And because Brendan O'Regan didn't try to own the concept, he sadly did not become a duty-free billionaire. But other businessmen would.

And because Brendan O'Regan didn't try to own the concept, he sadly did not become a duty-free billionaire. But other businessmen would.

And because Brendan O'Regan didn't try to own the concept, he sadly did not become a duty-free billionaire. But other businessmen would.

Brian O'Connell has just published a new biography of Brendan O'Regan. So he's a little biased, but he believes that that first little store in the airport changed the world.

Brian O'Connell has just published a new biography of Brendan O'Regan. So he's a little biased, but he believes that that first little store in the airport changed the world.

Brian O'Connell has just published a new biography of Brendan O'Regan. So he's a little biased, but he believes that that first little store in the airport changed the world.

And also, you're a little bored. So it's basically the classic setup to spend too much money. By design. Obviously. We actually tried to find a definitive study to find out how much of a break you're really getting at Duty Free. Yes, there are no taxes. but you have to pay for all this very expensive airport retail space.

And also, you're a little bored. So it's basically the classic setup to spend too much money. By design. Obviously. We actually tried to find a definitive study to find out how much of a break you're really getting at Duty Free. Yes, there are no taxes. but you have to pay for all this very expensive airport retail space.

And also, you're a little bored. So it's basically the classic setup to spend too much money. By design. Obviously. We actually tried to find a definitive study to find out how much of a break you're really getting at Duty Free. Yes, there are no taxes. but you have to pay for all this very expensive airport retail space.