CHINA. In landmark news for China’s duty free shopping industry, central Government on Thursday 18 February revealed the details of long-promised regulatory changes to Arrivals duty free shopping.
“This is big news,” noted Jason Cao, Founder & Publisher of Duty Free Expert, a hugely popular social media platform, with whom The Moodie Report works closely.
According to this week’s announcement, current duty free retailers who hold licences from the Chinese government and are successfully operating such businesses are authorised to bid for the licences at 19 nominated inbound locations, including airports and seaports (see list below; note: the international airports in Beijing and Shanghai already offer Arrivals duty free).
Returning Chinese travellers can currently bring in CNY5,000 (US$765) worth of duty free articles from outside China for personal use. However, the extended Arrivals shopping concept will increase the allowance and encourage shoppers to buy upon their return home.
While the value limit of CNY5,000 for goods bought abroad remains unchanged, the total allowance for tax and duty free products purchased abroad and at the nominated duty free shops in China is increased to CNY8,000 ($US1,225). Alternatively, as the government hopes, returning travellers can spend their entire CNY8,000 allowance at Chinese Arrivals shops.
The locations are as follows:
AIRPORTS
– Guangzhou Baiyun International Airport
– Hangzhou Xiaoshan International Airport
– Chengdu Shuangliu International Airport
– Qingdao Liuting International Airport
– Nanjing Lukou International Airport
– Shenzhen Bao’an International Airport
– Kunming Changshui International Airport
– Chongqing Jiangbei International Airport
– Tianjin Binhai International Airport
– Dalian Zhoushuizi International Airport
– Shenyang Taoxian International Airport
– Xi’an Xianyang International Airport
– Ürümqi Diwopu International Airport
PORTS
– Futian, Huanggang, Shatoujiao and Wenjindu (all Shenzhen)
– Zhuhai Zhakou
– Heihe
As reported, China’s State Council confirmed in early November that it was granting permission for more airport Arrivals duty free stores, underlining the government’s determination to increase domestic consumption as opposed to Chinese travellers spending on duty free goods abroad.
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State-owned media ChinaNews.com telegraphed the State Council’s intentions for Arrivals duty free shops last November |
The expansion of Arrivals duty free in China was first signalled by CDFG Chairman Peng Hui in a landmark speech at last September’s Trinity Forum in Hong Kong. Peng told delegates: “CDFG has been authorised to open and operate Arrivals duty free stores in China and will build a larger duty free outlet network under the CDFG flagship brand to drive business growth in the future.”
The expansion of Arrivals shopping is the second consecutive example in recent weeks of duty free-friendly legislation by the Chinese government. As revealed by The Moodie Report, the offshore duty free shopping allowance on Hainan Island was increased from CNY8,000 to CNY16,000 (US$2,450) per mainland traveller from 1 February.
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CDFG Chairman Peng Hui (podium left, big screen centre), speaking at September’s Trinity Forum, signalled the forthcoming changes, noting: “CDFG has been authorised to open and operate Arrival duty free stores in China” |
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The expansion of Arrivals duty free shopping is part of a central government plan to encourage domestic consumption |
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