Chinese authorities approve offshore duty free home delivery scheme

CHINA. In a further boost to Hainan’s already booming offshore duty free sector, the Ministry of Finance, General Administration of Customs, and State Administration of Taxation today jointly announced that visitors to the island will be able to have their goods posted back to the Mainland. The new regulation takes effect immediately.

The government bodies said the move was in support of the construction of the Hainan Free Trade Port. It would also accelerate the construction of an international tourism consumption center, and further facilitate tourist shopping.

Duty free shopping on Hainan island can be delivered by mail!’ proclaims the headline on Hainan Free Trade Port’s WeChat official account today

The announcement outlined the following protocol for duty free shopping and pick-up methods for Hainan visitors:

1. When passengers purchase goods at an offshore duty free store (including an approved online sales window) with a valid ID card and travel information, in addition to picking up the goods at the designated areas of the airport, train station, or seaport, they can choose to send by post for pick-up. If post is chosen, the recipient, payer, and purchaser should be the shopping passenger him/herself, and the recipient address should be outside Hainan Province.

Duty free retailers must confirm that the shopping passengers meet the above requirements and have actually left the island, and then immediately deliver the duty free goods.

Sector leader China Duty Free Group promotes the new regulations [Picture: DutyFreeExpert]
2. Hainan residents who purchase duty free goods before leaving the island can choose to pick them up when they return home. When returning to the island to pick up duty free goods, they must provide their valid ID and itinerary information. Retailers should confirm the identity of the consignee and the itinerary information before delivering the duty free goods.

Residents on the island include Chinese citizens who hold Hainan Provincial ID cards, Hainan Province residence permits or social security cards, as well as foreigners who work and live in Hainan Province and hold residence permits.

Relevant departments of Hainan Province should provide customs and taxation with relevant information and networking environment for verification of residents’ qualifications on the island, departure of passengers from the island, and ticket purchase.

3. The specific regulatory requirements for delivery by post and pick-up by returning islanders shall be separately announced by the General Administration of Customs.

DutyFreeExpert opinion

Jason Cao, Founder & Editor of Chinese B2B media DutyFreeExpert, commented on the policy: “The surge in the number of people shopping in offshore duty free and the sheer volume of products, as well as the physical space and logistics constraints of the pick-up points, have caused thousands of consumer complaints, which attracted great attention from relevant authorities.

“The offshore duty free business, based on the national strategy of building a Hainan Free Trade Port, has once again won the support of the Central Government. The new mail delivery scheme and pick-up arrangements for islanders will bring great convenience the offshore duty free business and further stimulate the sector.”

Hainan Island: Travel retail’s global hotspot

The Moodie Davitt Report will publish a Hainan Island Special Report with the China edition of The Magazine in February 2021. Written by Martin Moodie and Dermot Davitt, it will explore how the offshore duty free business in China has become critical to the world’s leading brands across many categories.

海南:旅游零售业的全球焦点

穆迪戴维特报告(Moodie Davitt Report)将于2021年2月随The Magazine的中文版发表《海南特别报道》。该篇由马丁·穆迪(Martin Moodie)和德莫特·戴维特(Dermot Davitt)撰写,将探讨中国的离岸免税业务是如何变得对跨类别的各大全球领先品牌至关重要。

报告将覆盖以下内容:

  • 评论与分析自2020年7月1日起,海南新离岸免税政策所引起的重大影响
  • 从美妆个护到时尚、钟表,从葡萄酒、烈酒到消费类电子产品的跨类别离岸免税额的潜力
  • 中免集团,中服免税店,DFS集团,Dufry, Hainan Development Holdings, 海南旅游投资发展公司,海南省国际经济发展局(Hanain IEDB),拉加代尔旅游零售等集团的重要访谈和简介,尤其着眼于颇具潜力的海南免税店贸易港项目
  • 除海南外,我们还将考察中国国内市场的反弹情况,评估中国机场的前景,并希望终有一天能够恢复国际旅游通行,拥有来自内地,澳门和香港市场的领先旅游零售商的输入
  • 电商驱动力:评估旅游零售业的长期市场领导者Dufry与数字巨头阿里巴巴;以及CDFG和其他主要参与者,是否具备达成合作伙伴关系的潜力
  • 顶级旅行分析师ForwardKeys的专业意见
  • 在内容合作伙伴Globuy,iClick,Jing Daily,Jessica’s Secret和DutyFree Expert的帮助下,分析有关中国消费者和免税市场的趋势

The report will feature:

  • Comment & analysis on the seismic impact of the new offshore duty free policy in Hainan since 1 July
  • The potential of new offshore duty free allowances across categories from beauty to fashion and watches and from wines & spirits to consumer electronics
  • Major interviews with and profiles of China Duty Free Group, CNSC, DFS Group, Dufry, Hainan Development Holdings, Hainan Tourism Investment Development Co, Hainan Provincial Bureau of International Economic Development (Hanain IEDB), Lagardère Travel Retail, and others, with a special focus on the ambitious Hainan Free Trade Port project
  • Beyond Hainan, we examine the rebound in the China domestic market, assess prospects for Chinese airports and hopes for an eventual return to international travel. With input from leading travel retailers in the Mainland, Macau and Hong Kong markets
  • The ecommerce drive: Assessing the potential of the partnership between travel retail’s long-time market leader Dufry and the digital powerhouse Alibaba; plus digital strategies at CDFG and other major players
  • Expert input from top travel analyst ForwardKeys
  • With contributions from our content partners Globuy, iClick, Jing Daily, Jessica’s Secret and DutyFree Expert on trends among Chinese consumers and the duty free market

Contact Irene@MoodieDavittReport.com to partner with The Moodie Davitt Report for this special edition.

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