China News Service, July 6, according to news from the website of the General Administration of Customs, in order to regulate the supervision of tax-free shopping for Hainan Islands travellers and promote the construction of Hainan Free Trade Port, the General Administration of Customs issued the revised “Customs of the People’s Republic of China on Hainan Islands” on the 6th. The Measures for the Supervision of Passengers’ Duty-Free Shopping (hereinafter referred to as the “Measures”) will be implemented as of July 10, 2020. The regulations stipulate that the import tax on imported goods shall be levied on the parts of outlying island travelers who exceed the annual duty-free shopping quota and limit.
Data Map: Tourists buy cosmetics at the Haikou Riyue Plaza Duty Free Shop. China News Service reporter Luo Yunfei
The measures propose that when purchasing tax-free goods, passengers from outlying islands should proactively provide their valid identity documents or travel documents, as well as relevant information such as the means of transportation on outlying islands prescribed by the customs. Passengers on outlying islands can purchase duty-free goods in any duty-free shops on outlying islands. If they purchase online, the shopper and payer should be the same person. After the passenger purchases the duty-free goods, taking the transportation means to carry the duty-free goods to the outlying island is counted as one duty-free shopping.
The annual tax-free shopping quota, types of tax-free commodities and restrictions on the number of purchases per person for outlying island passengers shall be implemented in accordance with the relevant regulations announced by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation. Duty-free shops in outlying islands shall sell duty-free goods strictly in accordance with the sales objects, varieties, quantities and amounts stipulated in the outlying islands duty-free policy. The import tax on imported goods shall be levied in accordance with the regulations on the parts exceeding the annual duty-free shopping quota and limit.
The method requires that if there is a surplus (or unused) in the annual tax-free shopping quota for outlying travelers, when paying for goods that exceed the tax-exempt limit, the customs will use the retail price of the merchandise in the island duty-free store minus the remaining tax-exempt limit as the duty-paid value. Taxation. For passengers who do not use the annual tax-free shopping quota or purchase beyond the limit, the customs shall charge the tax on the retail price of the goods in the duty-free shops in the islands as the tax-paid value.
When the customs calculates the tax levy, the tax rate corresponding to the retail price of the goods in the duty-free shops in the islands shall apply to the goods purchased by passengers exceeding the annual duty-free shopping quota or exceeding the limit.
The measures also stipulate that if an outbound passenger has one of the following circumstances, the customs shall handle it in accordance with relevant laws and regulations, and shall not enjoy the tax-free shopping policy for outlying islands within 3 years from the date of the customs decision, and may be included in the relevant credit records in accordance with the relevant provisions: Purchasing duty-free goods for others for the purpose of profit-making or reselling the purchased duty-free goods on the domestic market; when purchasing or withdrawing duty-free goods, providing false ID or travel documents, using non-compliant ID or travel documents, or providing false Information about outlying islands; other violations of customs regulations.