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CHINA. Today’s choice of images confirm that traceable source codes are now in effect across all duty free goods in Hainan’s offshore duty free sector across three categories – fragrances & cosmetics, wines & spirits, and mobile phones.
This follows the decision of the Hainan Provincial Government and General Administration of Customs to implement the system from 1 August.
All categories will be covered by year-end. The measures are the first in a range of initiatives designed to counter reselling of duty free items.
The traceable source code, a globally unique number, takes the form of a Hainan-specific QR code label, which is tear-proof and damage-resistant. By scanning and tracing the source code, law enforcement agencies such as customs can clearly understand where a product was sold and who bought it.
The label includes an anti-counterfeiting code, a Hainan duty free logo and the warning, ‘Duty unpaid, reselling prohibited’.
The Hainan authorities are clearly determined to publicise the new stipulation – and the reason behind it. Hainan Hinews Media Co, Moodie Davitt Report’s strategic partner in Hainan, published a story on Monday showing the first duty free product with an origin source code to be sold at Haikou Meilan International Airport, marking the official launch of this measure.
“What is the origin source code? It is the unique identification for Hainan Free Trade Port duty-free products affixed to the packaging of island departure duty-free products,” ran the story [in Chinese and English] by Hainan Hinews-run Hainan International Media Center.
“You can scan the code with your mobile phone to see the commodity name, operator, and store information, tracing the entire sales history of the product. This measure is being implemented in order to prevent reselling of duty-free items.
“By the end of this year, all duty-free products on Hainan island will also be sold with an origin source code in the same way as cosmetics, drinks and mobile phones. When the import consumer products ‘zero tariff’ positive list for the residents in Hainan [the much-anticipated Residents Duty Free policy-Ed] is released, these products will also be sold with an origin source code.”
