Knowledge (XXG)

Border trade

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409:(NAFTA) has reduced barriers and tariffs, facilitating cross-border trade. Each day 2008, $ 2 billion of cross-border trade was conducted between Canada and the United States alone. Consumers take part in cross-border trading to broaden their product selection, gain access to a larger market place, or take advantage of currency volatility. Online commerce has taken on a more prominent role in recent years and gives consumers a convenient platform for cross-border shopping. However, additional border costs such as 25: 122: 152:, in general, refers to the flow of goods and services across the border between different jurisdictions. In this sense, border trade is a part of the normal trade that flows through the ordinary export/import legal and logistical frameworks of nations and smaller jurisdictions. However border trade specifically refers to the 417:
and shipping are not always disclosed up front or even known to the retailer, leading to a situation where the final cost of an item can greatly exceed expectations. Dedicated cross-border shopping solutions such as Canada Post's Borderfree program existed to mitigate these problems with varied
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Residents of Switzerland and Liechtenstein who are non-EU residents can purchase many items in nearby Germany from anything from two to seven times the price they would pay for the same products in their own countries. Austria is also somewhat cheaper than Switzerland. Residents of Switzerland
252:. For instance, the excise tax on alcohol is lower in Estonia than in Finland and much lower than in Sweden, thus it is common to buy large volumes of alcohol when returning from Estonia: there are shops in the Tallinn harbour that cater specifically to tourists. In Finland, the best-selling 446:
Although not crossing a national boundary, residents of one state may often travel across a state line in order to shop for a variety of goods. In some cases, a larger city or metro area in one state may draw a population in from another state or people may travel outside of city limits to
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province, where citizens occasionally take trips to Germany and Belgium to buy commodities like: medicinal products, handcrafted furniture, fresh produce, alcoholic beverages or home appliances for lower prices due to the VAT. This is very easy as there are no border controls due to the
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in trade in areas where crossing borders is relatively easy and where products are significantly less expensive on one side of the border than the other – often because of significant variations in taxation levels on goods. Common items involved in border trade include
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surrounding areas with lower taxes. In other cases, residents may cross boundaries to take advantage of more friendly legislation regarding restricted products, such as alcohol, tobacco, fireworks, firearms, gambling, etc. For example, a New York City resident may engage in
552:, to take advantage of price differences and differing product availability. The Singaporean government has a law that requires a car leaving Singapore to have the fuel tank filled by at least 75 percent, to prevent it from being filled with fuel from outside Singapore. 495:
border towns, it is common for Chilean residents to go to make purchases in the stores of their neighboring countries, as well as to purchase medical exams and other health services at a lower cost. Notable cases are the commercial relationship between
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from Canada and Mexico into the United States can provide a large cost savings for the patient, and is sometimes even facilitated by insurance companies, and the quality of medicine in Canada is comparable to that in the United States
438:, were particularly hard hit. Specific business categories, such as parcel shops, tourism, fuel and dairy incurred severe losses in many border communities; both US–Canada and US–Mexico trade incurred multi-billion dollar impacts. 451:
by purchasing products in a nearby state with lower taxes and re-selling them illegally in New York. Furthermore, states which have legalized recreational marijuana may experience a high-amount of out-of-state customers.
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that began in 2020, the US–Canada and US–Mexico borders were closed to non-essential traffic, leaving merchants who normally catered to cross-border shoppers stranded with no access to their customers. Exclaves such as
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shop in proportion to local population is on the border to Norway, since even if the alcohol tax is high in Finland, it is lower than the one in Norway (and was lowered in order to decrease border trade with Estonia).
873: 791: 1067: 980: 695: 859: 330:, these products are a third cheaper than in France. During summer, around 70,000 visitors cross the Spanish border daily to buy such products, occasioning severe traffic jams. Nearby 299:, four hours away from the border, shopped for groceries in Northern Ireland. Petrol is cheaper in the Republic, and groceries, furniture and clothing are cheaper in Northern Ireland. 484:
throughout the entire Colombian-Venezuelan border space, in addition to some restrictions that have been imposed, such as the closure of the Venezuelan border with Colombia by
777: 763: 322:, perhaps surprisingly, is a common purchase. Similarly, there is an important number of French purchasers buying tobacco and alcohol in Spanish border towns such as 184:
can be worthwhile for an international trip for the same purpose, although baggage restrictions can limit the effective savings to those for small high-value goods.
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countries making cross border shopping even more attractive, particularly in Germany where there is no minimum-purchase requirement for claiming the tax back.
1006: 295:—with lines of traffic four miles long—that the phenomenon became known as the "Newry effect". One in four households in the Republic in counties as far as 731: 805: 1094: 830: 670: 465: 951: 699: 472:
that began in 2013 and worsened in 2017, thousands of Venezuelan residents began to travel to Colombian border towns to mostly purchase basic
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is a trip made specifically, or at least largely, to purchase cheaper alcohol and tobacco, and also goods offering different rates of VAT:
406: 713: 651: 108: 1119: 138: 374: 346: 46: 1068:"Sorprende en Mendoza la cantidad de turistas chilenos que llegaron para Semana Santa: qué productos y servicios buscan más" 461: 89: 575: 188: 42: 61: 905: 1035: 845: 521: 509: 68: 891: 831:
https://www.borndigital.com/2012/03/02/canada-post-sells-off-cross-border-e-commerce-platform-borderfree-2012-03-02
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consisted primarily of Colombian residents traveling to Venezuelan border towns to purchase fuel derived from
75: 448: 280: 130: 508:. Likewise, despite the ruggedness of the relief when having to cross the Andes mountain range along the 505: 57: 874:"Food crisis feared on Washington peninsula isolated by border as only grocery teeters on closure - OPB" 365: 512:, there is a high flow of trans-Andean buyers, being a notable case that of Chileans near the city of 1036:"Aluvión de chilenos en Mendoza: Repletan supermercados y hacen "explotar" el mercado del dólar blue" 928: 610: 981:"Se cumplen siete años del cierre de frontera entre Colombia y Venezuela, así avanza la reapertura" 469: 276: 192: 749: 625: 513: 370: 778:"EINKAUFSTOURISMUS: Einkäufe im Netz und ennet der Grenze setzen Ostschweizer Gewerbe weiter zu" 418:
success. In the end, caution is necessary to determine the final cost of goods before purchase.
580: 485: 430: 319: 170: 923: 334:, with a low VAT (4%), is also extremely popular with French customers residing in the area. 1163: 906:"You've got mail, overflowing U.S. post office near Canadian border tells Ontario customers" 272: 181: 717: 82: 1168: 1007:"Tacna se encarece para los chilenos y el comercio en riesgo por depreciación del peso" 585: 559: 473: 303: 158: 1157: 956: 924:"Miles de venezolanos cruzan la frontera con Colombia para comprar productos básicos" 402: 373:. It is fully legal to buy products for their own need over the border in the EU, if 296: 288: 517: 477: 315: 1040: 537: 342: 249: 126: 24: 1011: 860:"Point Roberts' fire chief warns of 'humanitarian crisis' amid border closure" 323: 174: 166: 381:
usually qualify for a tax refund on purchases made in all of the surrounding
1147: 590: 563: 549: 533: 481: 414: 338: 261: 121: 846:"US border closure has caused big losses on one side, gains on the other" 696:"Einkaufstourismus ist im Schweizer Detailhandel eine feste Grösse | NZZ" 555: 541: 468:
and other items that were cheaper to obtain there. However, due to the
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Between U.S. states and across city and county boundaries within states
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As well as border trade across land or sea borders, air travel with a
410: 398: 394: 358: 307: 265: 233: 225: 217: 213: 142: 652:"Shop frontiers: the rise of cross-border buying around the world" 545: 516:. More to south, a similar situation occurs between the cities of 501: 497: 492: 327: 292: 134: 611:"Third of Estonia's Alcohol Sales Attributed to Finnish Tourists" 1045: 284: 253: 18: 806:"New Cross-Border Cooperation Will Strengthen Cargo Security" 952:"AsĂ­ es el contrabando que desangra a Venezuela y Colombia" 764:"Ă„rger mit Einkaufstouristen: Ein politischer Dauerbrenner" 382: 377:
is paid when purchasing, except from some low-VAT areas.
268:, as buying food is cheaper in Poland than in Lithuania. 714:"Thurgau macht Druck gegen den Einkaufstourismus | NZZ" 177:, automotive fuel, groceries, furniture and clothing. 671:"Marijuana For Tourists, Discord for the Netherlands" 476:. This has also brought with it the appearance of a 892:"What border closure means for Ogdensburg business" 49:. Unsourced material may be challenged and removed. 985:Semana.com Ăšltimas Noticias de Colombia y el Mundo 626:"A Northern Ireland Town Is a Shoppers' Paradise" 393:Cross-border shopping between three countries in 337:There is a significant amount of border trade in 208:Typical examples of this are the borders between 145:, where gasoline is significantly more expensive. 1150:- Global Border Shopping information search site 840: 838: 732:"Keine Mauer wider den Einkaufstourismus | NZZ" 364:A more legal example of the Netherlands is the 792:"HSG Startseite | Universität St.Gallen" 8: 137:, caters to border shoppers from across the 562:with the special administrative region of 109:Learn how and when to remove this message 16:Purchasing goods across country's borders 120: 829:Canada Post sold "Borderfree" in 2012: 602: 960:. Elcolombiano.com. 10 September 2015 750:"Einkaufstourismus: Keine Entwarnung" 423:consumer import of prescription drugs 7: 349:, and surrounding countries such as 291:, so many from the Republic visited 47:adding citations to reliable sources 566:, also benefits from border trade. 407:North American Free Trade Agreement 347:where cannabis is essentially legal 1034:Molina J., Tomás (13 April 2023). 14: 669:Rodriguez, Cecilia (2013-09-13). 460:Historically, trade between the 23: 1066:Pablo, Mannino (7 April 2023). 1005:Lu Torres, Ani (19 July 2022). 187:Where border trade is done for 34:needs additional citations for 271:Border trading exists between 260:Border trading exists between 1: 576:Tax avoidance and tax evasion 624:Quinn, Eamon (2008-12-18). 462:Colombian-Venezuelan border 1185: 510:Argentinean-Chilean border 1120:"Three Quarter Tank Rule" 436:Point Roberts, Washington 506:Chilean-Peruvian border 449:illicit cigarette trade 281:Global Financial Crisis 195:of both jurisdictions. 191:, it forms part of the 146: 979:Semana (2022-08-19). 405:has been robust. The 124: 1148:Duty Free on Arrival 43:improve this article 780:. 23 November 2017. 558:, on the border of 470:crisis in Venezuela 277:Republic of Ireland 193:underground economy 766:. 6 December 2017. 752:. 22 January 2018. 630:The New York Times 371:Schengen Agreement 171:recreational drugs 147: 1124:Singapore Customs 581:Border checkpoint 431:COVID-19 pandemic 320:laundry detergent 287:rose against the 119: 118: 111: 93: 1176: 1135: 1134: 1132: 1130: 1116: 1110: 1109: 1107: 1106: 1091: 1085: 1084: 1082: 1080: 1063: 1057: 1056: 1054: 1052: 1031: 1025: 1024: 1022: 1020: 1002: 996: 995: 993: 992: 976: 970: 969: 967: 965: 948: 942: 941: 939: 937: 920: 914: 913: 902: 896: 895: 894:. 19 March 2020. 888: 882: 881: 876:. Archived from 870: 864: 863: 856: 850: 849: 842: 833: 827: 821: 820: 818: 817: 808:. Archived from 802: 796: 795: 788: 782: 781: 774: 768: 767: 760: 754: 753: 746: 740: 739: 734:. Archived from 728: 722: 721: 716:. Archived from 710: 704: 703: 698:. Archived from 692: 686: 685: 683: 681: 666: 660: 659: 648: 642: 641: 639: 637: 621: 615: 614: 613:. 22 April 2014. 607: 488:in August 2015. 273:Northern Ireland 182:low-cost carrier 131:Estcourt Station 114: 107: 103: 100: 94: 92: 51: 27: 19: 1184: 1183: 1179: 1178: 1177: 1175: 1174: 1173: 1154: 1153: 1144: 1139: 1138: 1128: 1126: 1118: 1117: 1113: 1104: 1102: 1093: 1092: 1088: 1078: 1076: 1065: 1064: 1060: 1050: 1048: 1033: 1032: 1028: 1018: 1016: 1004: 1003: 999: 990: 988: 978: 977: 973: 963: 961: 950: 949: 945: 935: 933: 922: 921: 917: 904: 903: 899: 890: 889: 885: 872: 871: 867: 862:. 22 June 2021. 858: 857: 853: 848:. 13 July 2021. 844: 843: 836: 828: 824: 815: 813: 804: 803: 799: 790: 789: 785: 776: 775: 771: 762: 761: 757: 748: 747: 743: 730: 729: 725: 712: 711: 707: 694: 693: 689: 679: 677: 668: 667: 663: 650: 649: 645: 635: 633: 623: 622: 618: 609: 608: 604: 599: 572: 536:also travel to 530: 474:necessity goods 458: 444: 391: 206: 201: 115: 104: 98: 95: 52: 50: 40: 28: 17: 12: 11: 5: 1182: 1180: 1172: 1171: 1166: 1156: 1155: 1152: 1151: 1143: 1142:External links 1140: 1137: 1136: 1111: 1099:www.24horas.cl 1086: 1058: 1026: 997: 971: 943: 932:. 10 July 2016 929:BBC News Mundo 915: 897: 883: 880:on 2021-06-24. 865: 851: 834: 822: 797: 783: 769: 755: 741: 738:on 2017-09-20. 723: 720:on 2018-05-02. 705: 702:on 2018-01-09. 687: 661: 658:. 2 July 2015. 643: 632:. pp. A14 616: 601: 600: 598: 595: 594: 593: 588: 586:Border control 583: 578: 571: 568: 560:mainland China 529: 526: 486:Nicolás Maduro 466:Venezuelan oil 457: 454: 443: 440: 390: 387: 304:United Kingdom 205: 202: 200: 197: 117: 116: 58:"Border trade" 31: 29: 22: 15: 13: 10: 9: 6: 4: 3: 2: 1181: 1170: 1167: 1165: 1162: 1161: 1159: 1149: 1146: 1145: 1141: 1125: 1121: 1115: 1112: 1100: 1096: 1090: 1087: 1075: 1074: 1069: 1062: 1059: 1047: 1043: 1042: 1037: 1030: 1027: 1014: 1013: 1008: 1001: 998: 986: 982: 975: 972: 959: 958: 957:El Colombiano 953: 947: 944: 931: 930: 925: 919: 916: 911: 907: 901: 898: 893: 887: 884: 879: 875: 869: 866: 861: 855: 852: 847: 841: 839: 835: 832: 826: 823: 812:on 2010-03-17 811: 807: 801: 798: 793: 787: 784: 779: 773: 770: 765: 759: 756: 751: 745: 742: 737: 733: 727: 724: 719: 715: 709: 706: 701: 697: 691: 688: 676: 672: 665: 662: 657: 653: 647: 644: 631: 627: 620: 617: 612: 606: 603: 596: 592: 589: 587: 584: 582: 579: 577: 574: 573: 569: 567: 565: 561: 557: 553: 551: 547: 543: 539: 535: 527: 525: 523: 519: 515: 511: 507: 503: 499: 494: 489: 487: 483: 479: 475: 471: 467: 463: 456:South America 455: 453: 450: 441: 439: 437: 432: 427: 424: 419: 416: 412: 408: 404: 403:United States 400: 396: 389:North America 388: 386: 384: 378: 376: 372: 367: 362: 360: 356: 352: 348: 344: 340: 335: 333: 329: 325: 321: 317: 313: 309: 305: 300: 298: 294: 290: 289:British pound 286: 282: 279:; during the 278: 274: 269: 267: 263: 258: 255: 251: 247: 243: 239: 235: 231: 227: 223: 219: 215: 211: 203: 198: 196: 194: 190: 185: 183: 178: 176: 172: 168: 164: 160: 155: 151: 144: 140: 136: 132: 128: 123: 113: 110: 102: 99:December 2009 91: 88: 84: 81: 77: 74: 70: 67: 63: 60: â€“  59: 55: 54:Find sources: 48: 44: 38: 37: 32:This article 30: 26: 21: 20: 1127:. 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"Border trade"
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gas station
Estcourt Station
Maine
border
Canada
alcohol
tobacco
medication
recreational drugs
automobiles
low-cost carrier
tax evasion
underground economy
Ukraine
Russia
Norway
Denmark
Sweden

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