What does 'duty-free' mean in terms of in-flight services?

The term 'duty-free' in the context of in-flight services refers to items sold that are exempt from local taxes or import duties. When passengers purchase duty-free goods while traveling, they are acquiring products that have not been subjected to the taxes that would normally apply to those items if sold in a normal retail environment. This exemption makes these items typically less expensive than their equivalent retail versions found on land, providing an incentive for passengers to buy goods such as alcohol, cigarettes, perfumes, and cosmetics during their flights.

The concept of duty-free shopping is based on the international travel aspect, where goods are sold for consumption outside the country of purchase, allowing travelers to benefit from the price reduction compared to standard purchasing options available in airports or local shops. This makes the correct response relevant to the overall understanding of in-flight shopping and the policies that govern it.