[Explanation] A press conference on the implementation of the new Hainan’s outlying island tax-free shopping policy and related work progress was held on August 19. Chen Xi, Director of the Hainan Provincial Department of Commerce, introduced that in accordance with the requirements of the national ministries and commissions, appropriate competition is encouraged, and tourists’ expectations are met. Taking into account the number of tourists received in Hainan Province, the number of permanent residents, total social consumption, transportation convenience, commercial infrastructure and other factors, in accordance with the principles of location planning, Hainan will also strive to open three new duty-free shops in Sanya within 2020.
[Concurrent] Chen Xi, Director of the Hainan Provincial Department of Commerce
Our province is striving to open three new duty-free stores in Sanya this year, including the Phoenix Airport store and two in-city stores. We plan to adopt market-based competition methods such as bidding to determine the business entities, and organize business entities to apply for the establishment of duty-free stores on outlying islands. It is required to be established after reporting and approval.
[Explanation] The reporter learned at the press conference that in July 2020, the Ministry of Finance and other national ministries and commissions authorized Hainan Province to approve one or two business entities to enjoy the qualifications for duty-free business in Hainan Islands. At present, two state-owned enterprises have been approved for duty-free operation of Hainan Islands.
[Concurrent] Chen Xi, Director of the Hainan Provincial Department of Commerce
Recently, the People's Government of Hainan Province has officially approved the two companies to enjoy the qualifications for duty-free operations on Hainan's outlying islands, and have reported to the Ministry of Finance and other departments for the record. The two companies are: Hainan Travel Investment Duty Free Co., Ltd., a wholly-owned subsidiary of Hainan Tourism Investment Development Co., Ltd., and the other is Global Consumer Boutique (Hainan) Trading Co., Ltd., a wholly-owned subsidiary of Hainan Development Holding Co., Ltd. It is these two companies.
[Explanation] In addition, Hainan will try to use a competitive negotiation method to select one enterprise from the enterprises with qualifications to operate duty-free goods outside Hainan Province as the main body of operation of an outlying island duty-free shop in Sanya.
[Commentary] Hainan Provincial Department of Finance Director Wang Huiping said that after the announcement of the new policy for duty-free shopping on outlying islands, there are already many foreign-province companies including Shenzhen State-owned Duty Free Commodities (Group) Co., Ltd., Zhuhai Duty Free Enterprise Group Co., Ltd., etc. Qualified companies are preparing to come to Hainan to open duty-free shops on outlying islands and agree to adopt a competitive approach. After the result of the competition is determined, the Hainan Provincial Government will organize duty-free operating companies to submit applications for setting up duty-free shops on islands, and submit them to the Ministry of Finance in conjunction with the General Administration of Customs, the State Administration of Taxation, and the Ministry of Commerce for review and approval according to procedures.
Reporter Wang Ziqian Lin Shijie reports from Haikou
Editor in charge: [Li Yuxin]