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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Crazywaterspring · 61-69, M

The liquor shop at Helsinki is awesome. The US customs inspector cracked jokes about us having a "drinking problem.". We were within allowable limits and went on our way.