Announcement on Hainan's duty-free shopping policy for passengers leaving the island

Ministry of Finance, General Administration of Customs, State Administration of Taxation, 2020 No. 33

In order to implement the "Overall Plan for the Construction of Hainan Free Trade Port", with the approval of the State Council, the duty-free shopping policy for Hainan off-island passengers (hereinafter referred to as the off-island duty-free policy) is hereby announced as follows:
1. The off-island duty-free policy refers to a tax preferential policy that allows passengers who leave the island (excluding departure) by plane, train, or ship to shop with limited value, quantity, and variety and to pay in duty-free shops implementing the off-island duty-free policy (hereinafter referred to as off-island duty-free shops) or approved online sales windows, and pick up goods at designated areas of airports, railway stations, and port terminals to leave the island. The tax-free tax types of the off-island duty-free policy are tariffs, import value-added tax, and consumption tax.
2. The passengers referred to in this announcement refer to domestic and foreign passengers who are over 16 years old, have purchased off-island air tickets, train tickets, and boat tickets, and hold valid identity documents (domestic passengers hold resident identity cards, Hong Kong, Macao and Taiwan passengers hold travel documents, and foreign passengers hold passports), and leave Hainan Island but do not leave the country, including residents of Hainan Province.
3. The duty-free shopping quota for off-island passengers is RMB 100,000 per person per year, with no limit on the number of times. The types of duty-free goods and the quantity restrictions for each purchase shall be implemented in accordance with the annex to this announcement. The part exceeding the duty-free limit and quantity shall be subject to import tax on imported goods in accordance with regulations.
After shopping, passengers who leave the island by plane, train or ship will be counted as one duty-free shopping.
4. The off-island duty-free shops referred to in this announcement refer to duty-free shops that are qualified to implement the off-island duty-free policy and implement franchise operations, currently including: Haikou Meilan Airport Duty-Free Shop, Haikou Sun Moon Plaza Duty-Free Shop, Qionghai Boao Duty-Free Shop, Sanya Haitang Bay Duty-Free Shop.
Business entities with duty-free goods distribution qualifications may participate in Hainan's off-island duty-free operations in accordance with regulations.
5. Off-island passengers purchase duty-free goods in off-island duty-free shops or approved online sales windows within the quota and quantity prescribed by the state. Duty-free shops will deliver goods according to the time of passengers' departure from the island. Passengers can pick up the goods in the designated areas of the airport, railway station and port terminal with shopping vouchers and carry them with them off the island at one time.
VI. The purchased duty-free goods on offshore islands are final goods for personal use by consumers and shall not be resold in the domestic market.
VII. Individuals who resell, purchase on behalf of others, or smuggle duty-free goods in violation of the provisions of this announcement shall be included in the credit record in accordance with laws and regulations and shall not purchase duty-free goods on offshore islands within three years; those who constitute smuggling or violate customs supervision regulations shall be dealt with by the customs in accordance with relevant regulations, and those who constitute a crime shall be investigated for criminal responsibility in accordance with the law.
Travel agencies and transportation companies that assist in violating the duty-free policy on offshore islands and disrupting the market order shall be subject to industry-wide comprehensive rectification.
Offshore duty-free shops that sell duty-free goods in violation of relevant regulations shall be dealt with and punished by the customs in accordance with relevant laws and administrative regulations.
VIII. The supervision measures for the duty-free policy on offshore islands shall be announced separately by the General Administration of Customs.
The relevant management measures for the VAT and consumption tax exemption policies applicable to duty-free goods sold by offshore duty-free shops shall be separately formulated by the State Administration of Taxation in consultation with the Ministry of Finance.
IX. This announcement shall take effect on July 1, 2020. Announcement No. 14 of 2011, No. 73 of 2012, No. 8 of 2015, No. 15 of 2016, No. 7 of 2017 of the Ministry of Finance, and Announcement No. 158 of 2018 and No. 175 of 2018 of the Ministry of Finance, General Administration of Customs and State Administration of Taxation are hereby repealed.

Ministry of Finance General Administration of Customs State Administration of Taxation
June 29, 2020