China News Service, June 29, according to the website of the Ministry of Finance, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation recently issued an announcement regarding the tax-free shopping policy for Hainan Islands travellers. The announcement made it clear that the annual tax-free shopping quota per person for outlying island passengers is 100,000 yuan per year, unlimited; expand the types of tax-free goods and increase 7 types of consumer favored products such as electronic consumer products; only limit the single purchase of cosmetics, mobile phones and alcohol products The quantity; the part of the passengers’ purchase of goods that exceeds the tax-free limit and limit shall be levied in accordance with the import tax on imported goods; business entities with the qualification for the distribution of duty-free goods may participate in the tax-free operation of Hainan Islands as required.
Compared with the previous policy, the main adjustments of the "Announcement" include: First, the tax-free shopping quota was increased from 30,000 yuan per person to 100,000 yuan per year. The second is the increase in the variety of duty-free commodities from 38 to 45. The third is to abolish the 8,000 yuan tax exemption limit for a single product. Fourth, it is mainly based on quota management, which greatly reduces the types of commodities that are restricted by the number of single purchases. Fifth, encourage moderate competition, and business entities that are eligible for distribution of duty-free goods can equally participate in the duty-free operation of Hainan Islands. Sixth, strengthen post-event supervision and clarify the legal responsibilities that individuals, enterprises, and offshore duty-free shops involved in reselling and smuggling will bear.
It is reported that since the trial of the tax-free shopping policy for outlying island passengers began in April 2011, the overall operation has been good, which has promoted the construction of Hainan International Tourism Island and drove the development of tourism consumption and related industries in Hainan. According to customs statistics, as of the end of 2019, there were 16.31 million purchases and tax-free sales of 53.8 billion yuan. This policy adjustment will greatly improve the shopping experience of consumers, release policy dividends, increase the sense of public gain, promote the construction of Hainan International Tourism and Consumer Center, and enhance the confidence of all sectors in the construction of Hainan Free Trade Port.
The announcement will be implemented from July 1, 2020.