### Question
How is the term duty-free merchandise defined?


### Answer
The term **duty-free merchandise** is defined in *19 U.S.C. § 1555* as the following:

> merchandise sold by a duty-free sales enterprise on which neither Federal duty nor Federal tax has been assessed pending exportation from the customs territory

#### Citation:
  - *19 U.S.C. § 1555*
  - Heading: **CHAPTER 4-TARIFF ACT OF 1930 > SUBTITLE III-ADMINISTRATIVE PROVISIONS > Part IV-Transportation in Bond and Warehousing of Merchandise**

