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CHINA. In a key sector development, the Chinese Ministry of Finance, General Administration of Customs, and State Taxation Administration today (17 October) jointly issued a notice announcing adjustments to the offshore duty-free shopping policy for departing travellers from Hainan.
The revised policy, which will take effect on 1 November, is designed to “steadily advance the development of the Hainan Free Trade Port and better meet the diverse needs of duty-free consumers”, the authorities said in their announcement.
Key adjustments in the policy are:
1. Two new duty-free categories have been added: pet supplies (accessories, toys and food) and portable musical instruments.
The ‘household air purifiers and accessories’ category has been reclassified as ‘small home appliances’, with items such as robot vacuums and vacuum cleaners newly included.
The ‘wearable devices and other electronic consumer products’ category has been renamed ‘electronic consumer products’, now including digital photography and video equipment, related accessories, and mini drones.
The ‘tablet computers’ category has been expanded to include digital accessories such as computer mice and keyboards.
Following the expansion, there are now 47 categories of offshore duty-free goods. With the exception of cosmetics (30 pieces), mini drones (2 units), mobile phones (4 units) and alcoholic beverages (1,500ml), most categories are not subject to purchase quantity limits.
2. Authorised offshore duty-free operators may purchase domestic products of certain categories and sell them in offshore duty-free stores under the revised policy.
These include silk scarves, apparel, footwear, coffee, ceramics and tea. These sales are treated as exports and are eligible for VAT and consumption tax exemptions or refunds.
For such domestic goods that have already been sold, duty-free operators may file export declarations with customs and apply for tax refunds with the relevant authorities in accordance with regulations.
The specific supervision and refund procedures will be developed separately by the General Administration of Customs in coordination with the Ministry of Finance and the State Taxation Administration.
3. The minimum age for offshore duty-free shopping for departing travellers has been raised from 16 to 18 years old.
4. Travellers who are both departing from Hainan and leaving the country are now eligible for the offshore duty-free shopping policy.
These travellers must be at least 18 years old, hold valid entry-exit documents, and have purchased a ticket (by air or sea) to leave China from Hainan. This includes both domestic and international travellers, as well as residents of Hainan Province.
Purchases made by travellers who are both departing Hainan and leaving the country will count toward their annual offshore duty free shopping quota of RMB100,000 (US$1,400), with no limit on the number of transactions.
Within the specified quota and quantity limits, these travellers may buy duty-free goods at offshore duty-free stores or through approved online sales platforms. The stores will arrange delivery based on the traveller’s departure time, and goods can only be collected in designated areas at airports or seaports upon presentation of the purchase receipt. All items must be carried out in a single trip.
5. Hainan residents who have a record of departing the island within a calendar year may make unlimited purchases of offshore duty-free goods under the ‘purchase and pick-up’ model during that same year.
For the year the policy takes effect, the departure record must occur on or after 1 November. The Hainan Provincial Government is responsible for effectively managing and preventing the risk of smuggling through proxy (daigou) purchases.
‘Hainan residents’ refers to individuals aged 18 or above who hold a Hainan resident ID, residence permit, or social security card, as well as foreign nationals who live and work in Hainan and possess a valid residence permit. 🏝️
