Chuy is on the border with Brazil. As a matter of fact, the main drag thru town are two, two way streets separated by a grass medium. The South side is Uruguay and the North Brazil. Here you will find duty free shopping, more pirated and fake good than Korea and a weird Spanish-Portuguese dialect. As border towns go, this one is great. If you are use to US-Mexico borders towns, this is nothing like that. It is busy and dirty, but safe. I was up at 6am and looking for someplace to eat and felt safe even on the back streets. As for the duty free, it seems as though they have jacked the price up. I did but a hat from a street vendor for $4 though. I got it for 100 pesos and we started at 150.
I accidentally wondered the first night into Brazil to have dinner two blocks into the border. There are not any immigration this close to the border and people wonder back and forth without worry about the border. If you find yourself in Chuy though, I would generally say you are on your way somewhere else. Chuy is not a destination as much as a way point. There are three hotels and no hostels in town. I stayed at the Hotel International on the main drag. This gave me a single bed, a private bath, air and a fridge for $26 dollars for the night.