Game changing: Hainan offshore duty free allowance to be more than tripled to RMB100,000; category assortment to be expanded

CHINA. In major breaking news that will transform Asia’s travel retail landscape, the annual offshore duty free allowance for shoppers visiting Hainan Island is to be raised from RMB30,000 (US$4,215 at current exchange rate) to RMB100,000 (US$14,050) as part of sweeping government plans announced yesterday for the creation of Hainan Free Trade Port.

The range of duty free categories is also being expanded, as part of a hugely ambitious Hainan Free Trade Port Overall Plan (‘Overall Plan’) released by Hainan Provincial Bureau of International Economic Development.

Senior sources at China Duty Free Group told The Moodie Davitt Report that they are awaiting full details of the timeline for implementation of the new allowance, and specific details of which categories are to be added. We will bring you that information as soon as it comes to hand.

The increased allowance follows another major boost to the offshore business. Last month China Duty Free Group (CDFG) introduced a new scheme allowing Mainland visitors to Hainan to spend any of their unspent RMB30,000 (US$4,240) annual allowance online for up to 180 days once they arrive back – and have the goods couriered to their home.

The changes are the latest steps in a bold national and provincial vision for the island. Chinese President Xi Jinping announced on 13 April 2018 the national government’s support for the pilot Free Trade Zone embracing the entire province.

In its landmark announcement yesterday, the Hainan Provincial Bureau of International Economic Development described the Free Trade Port as “a flagship of China’s opening up and a key opening door in the new era”.