After consultation with the Ministry of Commerce, the General Administration of Customs, and the State Administration of Taxation, the Ministry of Finance announced the relevant matters involved in the pilot work.
The offshore duty-free policy refers to the preferential tax policy, the Pilot Implementation Plan of the Offshore Duty-Free Shopping Policy on Hainan Island, developed for tourists leaving the island by plane.
For the purpose of regulating the offshore duty-free shopping supervision of Customs in Hainan province and promoting the development of Hainan provincial tourism industry, these provisional measures have been formulated under the authorization of the State Council.
Offshore visitors (including visitors residing on the island) are tentatively allowed to spend less than RMB 5,000 yuan ($770) during each duty-free shopping per person.
Visitors who do not reside on the island can enjoy the offshore duty-free shopping policy twice per person per year.
The category of taxes stipulated by the offshore duty-free policy involves Customs duties, import value-added duties, and consumption duties.
During the trial period, duty-free products cover the following categories: jewelry, crafts, watches, perfume, cosmetics, glasses (including sunglasses), silk towels...
Offshore duty-free stores were set up separately in Haikou and Sanya to test the duty-free policy.
Political advisers in South China's Hainan province urged authorities to levy taxes on vacant homes in popular travel destinations to discourage speculation and cool the island's overheated property market.
Hainan opened a second duty-free store on Wednesday, following the success of the first, which since April has boosted domestic tourism to the province in South China.
In the 18 years since it was founded, Hainan Airlines has been doing its part to bring China to the world.
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