CHINA. Two years since their introduction, a duo of new offshore duty-free pick-up methods have resulted in over CNY7 billion (US$1.1 billion) sales in Hainan, according to Haikou Customs statistics.
First implemented on 1 April 2023, the ‘guaranteed pick-up’ and ‘buy and pick-up’ methods were designed to make shopping easier and more immediate for consumers and ease logistical constraints for retailers.
Over the ensuing two years, 7.7 million duty-free items have been sold using the buy and pick-up method, totaling CNY6.94 billion (US$954.9 million) in sales; while consumers purchased 1,314 items using the ‘guaranteed pick-up method, with combined sales of CNY138 million (almost 19 million).
Hinews, The Moodie Davitt Report’s strategic content partner in Hainan, first reported the news. The title said the policies have helped boost the development and integration of Hainan’s offshore duty-free sector and cultural tourism industry and played a role in driving duty-free consumption and overall economic growth in Hainan.
“We are leveraging opportunities from major commercial events such as pop concerts to actively attract customers and promote sales. We focus on accelerating the logistics turnover of duty-free goods, as well as taking full advantage of favourable policies such as guaranteed pick-up and buy and pick-up,” a spokesperson for cdf Sanya International Duty Free Shopping Complex said.
“To ensure the robust implementation of the guaranteed pick-up method, we set up verification points at various offshore ports in Hainan,” said Yang Gang, Deputy Director of Haikou Customs Port Supervision Department.
“Travellers carrying guaranteed pick-up goods that have not been used can proceed to the verification points, where customs will promptly conduct verification of the goods. Once it’s verified that the duty-free goods are intact and that the traveller is indeed departing the island, the guarantee deposit will be refunded to the consumer via the original payment method.”
By leveraging intelligent tools such as the customs supervision system and mobile application for traceability codes, he added, Haikou Customs has reduced the verification time to as short as two minutes, significantly improving duty-free goods turnover efficiency and providing travellers with more ease and convenience.
In recent years, Haikou Customs has adopted several measures to optimise its supervision process and ensure that the guaranteed pick-up and buy and pick-up methods fully achieve their intended benefits, expediting the logistics turnover of duty-free goods.
To this end, it has introduced the ‘entry first, declare later’ system. Duty-free goods that have met certain regulatory conditions can be directly transported from ports to the special customs supervision zone, which significantly reduces port detention time.
Drone usage proves a winner
Another innovative measure is the use of drones for delivering duty-free goods – the nation’s first application scenario for low-altitude transportation in routine customs supervision. The scheme has successfully reduced delivery time for duty-free goods and improved logistics turnover efficiency.
In addition, Haikou Customs has employed a ‘centralised + automated’ document review system to make sure that duty-free goods are “immediately declared, reviewed, and released upon arrival.”
By integrating intelligent supervision tools such as remote video monitoring, Haikou Customs said it has achieved “non-physical attendance, zero interference, and zero waiting time” in its document review process.
So visitors can further enjoy the benefits of Hainan offshore duty-free shopping, Haikou Customs said it is actively strengthening its entire supervision network.
This includes bolstering inspections and controls at duty-free sales locations, pick-up sites and departure channels, and promptly imposing administrative penalties on individuals violating regulations (such as daigou traders), to ensure the healthy and stable implementation of policies.
In the future, Haikou Customs plans to continue exploring new possibilities in leveraging the province’s favourable duty-free policies to boost consumption and facilitate economic growth. Efforts will be made to further fine-tune the guaranteed pick-up and buy and pick-up methods and expand the list of duty-free categories and items eligible for them. 🏝️
