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Is 'duty free' a scam ?

Never travelled internationally, so I wonder if 'duty free' is really a scam? Who 'pays' the 'duty' if the traveller does not?
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Longpatrol · 31-35, M
Glenfiddich 18 Year:
In the two years (2017-2018) I tried three modes of purchase
On Shelf- $210-$$230 Sgd
Duty Free- $188 Sgd
Online during a sale- $109 Sgd