General Administration of Customs "Regulations of the People's Republic of China on the Supervision of Duty-Free Shopping for Passengers Leaving Hainan Island"

In order to standardize the supervision of duty-free shopping for passengers leaving Hainan Island and promote the construction of Hainan Free Trade Port, according to the decision of the State Council to adjust the duty-free shopping policy for passengers leaving Hainan Island, the revised "Regulations of the Customs of the People's Republic of China on the Supervision of Duty-Free Shopping for Passengers Leaving Hainan Island" is hereby issued, which will come into effect on July 10, 2020. Announcement No. 7 of 2015, No. 7 of 2016, No. 6 of 2017, and No. 221 of 2018 of the General Administration of Customs are hereby repealed.
This is hereby announced.

General Administration of Customs
July 6, 2020


Measures of the Customs of the People's Republic of China on the Supervision of Duty-free Shopping for Off-Island Passengers in Hainan

Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Customs Law of the People's Republic of China and relevant laws and regulations in order to standardize the supervision of duty-free shopping for off-island passengers in Hainan and promote the construction of Hainan as an international tourism consumption center.
Article 2 These Measures shall apply to the supervision of off-island passengers who purchase duty-free goods in off-island duty-free shops in Hainan Province (including approved online sales windows, hereinafter referred to as "off-island duty-free shops"), pick up goods in designated areas of airports, railway stations and ports, and carry them off the island at one time.
Article 3 Off-island duty-free shops shall set up pick-up points in the isolation areas (hereinafter referred to as "isolation areas") leading to the mainland at airports, railway stations and ports in Hainan Province, and report to the customs for approval.
Isolation areas belong to customs supervision areas, and the relevant setting standards shall comply with customs supervision requirements.
Article 4 Off-island duty-free shops shall register the electronic data information of duty-free goods in accordance with customs requirements before the duty-free goods are put into storage. When passengers purchase duty-free goods and pick up goods, the offshore duty-free shops shall transmit electronic data such as passenger shopping and pick-up information in a complete, accurate and real-time manner to the customs in a format specified by the customs.
Chapter II Duty-free Sales Supervision
Article 5 When passengers purchase duty-free goods, they shall proactively provide their valid identity documents or travel documents, as well as relevant information such as the offshore transportation vehicles they take as specified by the customs.
Article 6 Off-island passengers may purchase duty-free goods at any offshore duty-free shop. If purchased online, the shopper and payer shall be the same person.
After passengers purchase duty-free goods, taking duty-free goods off the island by transportation shall be counted as one duty-free purchase.
Article 7 The annual duty-free shopping quota, duty-free commodity types and purchase quantity limits for each off-island passenger shall be implemented in accordance with the relevant provisions of the announcements of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation. Off-island duty-free shops shall sell duty-free goods in strict accordance with the sales objects, varieties, quantities and amounts specified in the offshore duty-free policy. For the part exceeding the annual duty-free shopping quota and limit, import tax on inbound goods shall be levied in accordance with regulations.
Article 8 If there is any surplus (or unused) in the annual duty-free shopping quota of off-island passengers, when paying taxes to purchase goods exceeding the duty-free limit, the customs shall use "the retail price of goods in the off-island duty-free shop minus the remaining duty-free limit" as the duty-paid price to calculate and collect taxes.
If passengers do not use the annual duty-free shopping quota or purchase in excess of the limit when shopping, the customs shall use the retail price of goods in the off-island duty-free shop as the duty-paid price to calculate and collect taxes.
Article 9 When calculating and collecting taxes, the customs shall apply the tax rate corresponding to the retail price of goods in the off-island duty-free shop for goods purchased by passengers exceeding the annual duty-free shopping quota or exceeding the limit.
Article 10 Off-island passengers may go through the off-island duty-free shop to pay taxes to the customs. Off-island duty-free shops shall go through the tax payment procedures with the customs once every 10 days and pay taxes to the designated bank (treasury) within 5 working days from the date on which the customs fills out and issues the tax payment certificate. If the tax is overdue, the customs shall charge a late payment fee of 0.05% of the overdue tax per day from the date of expiration of the payment deadline to the date of full payment of the tax, and the maximum shall not exceed the amount of the tax.
The starting point for the late payment fee is RMB 50.
Chapter III Supervision of the collection of duty-free goods
Article 11 Off-island duty-free shops shall seal the duty-free goods that off-island passengers need to collect in accordance with the customs supervision requirements and deliver them to the collection point in advance.
Before the off-island passengers collect the goods, the off-island duty-free shops shall ensure that the external seals of the sold duty-free goods are intact.
Article 12 Passengers who have purchased duty-free goods at off-island duty-free shops in the city or at the off-island duty-free online window shall go through the collection procedures for the purchased duty-free goods at the collection point after entering the quarantine area. Off-island duty-free shops shall deliver duty-free goods after verifying the valid identity documents of off-island passengers and the certificates of taking transportation.
Off-island passengers can collect the purchased duty-free goods after purchasing them at off-island duty-free shops in the quarantine area.
Article 13 After picking up the goods in the quarantine area, if the off-island passengers need to leave the quarantine area due to flight (train, voyage) delays, cancellations, etc., they should hand over the duty-free goods to the off-island duty-free shop (including the pick-up point) for safekeeping and pick them up after actually leaving the island and re-entering the quarantine area.
If the off-island passengers change their flights (trains, voyages) after purchasing duty-free goods, and the time of the changed flights (trains, voyages) is within 30 days after the original departure date, the duty-free shop may handle the corresponding delayed pick-up procedures for them. If the prescribed time limit is exceeded, the duty-free shop shall handle the return procedures for them.
If the off-island passengers refund the tickets after purchasing duty-free goods, the off-island duty-free shop shall handle the return procedures for them.
Article 14 If the off-island passengers return the goods after picking them up, the off-island duty-free shop shall re-handle the storage procedures for the returned duty-free goods. If a tax refund is required due to return of goods, the off-island passenger or off-island duty-free shop shall apply to the customs within 1 year from the date of tax payment. After approval by the customs, the tax refund certificate shall be filled out and handed over to the original taxpayer to handle the tax refund procedures at the designated bank (treasury).
If the off-island passenger needs to exchange the goods after picking them up, the off-island duty-free shop shall ensure that the name, number, specification and model of the returned duty-free goods are completely consistent with the replacement duty-free goods, and deliver them to the off-island passenger after approval by the customs.
Article 15 Off-island duty-free shops shall promptly report abnormal handling of duty-free goods such as returns and exchanges to the customs.
Chapter IV Legal Liability
Article 16 If an off-island duty-free shop has any of the following circumstances, the customs shall order it to correct it and may give it a warning; if it is warned by the customs more than 3 times in a calendar year, the customs may suspend its off-island duty-free business for a maximum of 6 months; if the circumstances are serious, the customs may revoke the registration of the off-island duty-free shop. At the same time, offshore duty-free shops should also pay the corresponding taxes according to the imported goods:
(i) Selling duty-free goods to objects outside the prescribed scope;
(ii) Selling duty-free goods beyond the prescribed varieties or prescribed limits or quotas;
(iii) Not selling duty-free goods in the area approved by the customs;
(iv) Not handling the relevant procedures such as import declaration, warehousing, outbound storage, sales, pick-up, and write-off of duty-free goods in accordance with the customs supervision regulations;
(v) Leasing, assigning, or transferring the operating rights of duty-free shops.
Article 17 If an off-island passenger has any of the following circumstances, the customs shall handle it in accordance with relevant laws and regulations, and from the date on which the customs makes a decision on the handling, he shall not enjoy the off-island duty-free shopping policy within 3 years, and may be included in the relevant credit record in accordance with relevant regulations:
(i) Purchasing duty-free goods for others for the purpose of profit or reselling the purchased duty-free goods in the domestic market;
(ii) Providing false identity documents or travel documents, using identity documents or travel documents that do not meet the requirements, or providing false off-island information when purchasing or withdrawing duty-free goods;
(iii) Other violations of customs regulations.
Article 18 If a passenger violates the provisions of these Measures, organizes or uses the qualifications and quotas of others to purchase off-island duty-free goods to purchase duty-free goods for illegal profits, which constitutes a violation of customs supervision regulations or smuggling; if an off-island duty-free shop violates customs supervision regulations or smuggling, the customs shall handle it in accordance with the relevant provisions of the Customs Law of the People's Republic of China and the Regulations on the Implementation of Customs Administrative Penalties of the People's Republic of China; if it constitutes a crime, criminal liability shall be pursued in accordance with the law.
Chapter V Supplementary Provisions
Article 19 The following terms in these Measures have the following meanings:
Off-island passengers refer to domestic and foreign passengers who are 16 years of age or older and who leave Hainan Island by means of transportation but do not leave the country.
Identity documents or travel documents refer to domestic passenger identity cards, mainland travel permits for Hong Kong and Macao residents, mainland travel permits for Taiwan residents and passports for foreign passengers.
Means of transportation refer to public transportation such as airplanes, trains, and ships that leave Hainan Island but do not leave the country through airports, railway stations, and ports where Hainan has established offshore duty-free customs supervision agencies.
Article 20 Other supervision matters on offshore duty-free shops and duty-free goods shall be implemented in accordance with the relevant provisions of the "Regulations of the People's Republic of China on the Supervision of Duty-Free Shops and Duty-Free Goods" and other relevant regulations.
Article 21 The General Administration of Customs shall be responsible for interpreting these Measures.
Article 22 These Measures shall come into force on July 10, 2020.