Announcement on the Tax-free Shopping Policy for Hainan's Off-shore Passengers

Post Reply
User avatar
Site Admin
Posts: 280
Joined: Tue May 18, 2021 5:36 am

Announcement from the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration [2020] No. 33

Announcement on the Tax-free Shopping Policy for Hainan's Off-shore Passengers.png
To implement the General Plan for the Construction of Hainan Free Trade Port, upon approval by the State Council, the tax-free shopping policy for Hainan's off-shore passengers is hereby announced as follows:

I. The off-shore tax-free policy refers to preferential tax policy for the passengers who depart the island (excluding departing national border) by plane, train or ship, while they could purchase within limited value, quantity and varieties, pay at off-shore tax-free shops or approved online sales platforms, and collect the goods from the designated areas of airports, railway stations and ports.

The tax items under the off-shore tax-free policy include tariffs, import value-added tax and consumption tax.

II. The term "passenger" as mentioned in the announcement refers to domestic and foreign passengers (residents of Hainan included) who have reached the age of 16 and have purchased air tickets, train tickets or ship tickets to depart from Hainan and hold valid identity documents (resident identity cards for domestic passengers, travel documents by Hong Kong, Macao and Taiwan passengers, or passports for foreign passengers), and leave Hainan Island but do not leave the country.

III. The limit of off-shore tax-free shopping per person per year is 100,000 Yuan, with no limit on the times of purchase. The types of tax-free commodities and limit on the quantity of a single purchase shall be subject to the appendix to the announcement. For the value and quantity that exceeds the limits, import duties shall be levied in accordance with relevant regulations.

Tax-free purchase made by passengers who leave the island by plane, train or ship is recorded as one tax-free shopping.

IV. The off-shore tax-free shops mentioned in the announcement refer to shops with the off-shore tax-free selling qualification operating on franchising. Currently, they include: Haikou Meilan Airport tax-free shops, Haikou Riyue Plaza tax-free shops, Qionghai Boao tax-free shops and Sanya Haitangwan tax-free shops.

The business entities with the distribution qualification for tax-free products can participate in tax-free operation on Hainan Island in accordance with provisions.

V. Within the limit and quantity specified by the State, passengers departing the island could purchase tax-free goods at tax-free shops or approved online sales platforms.

Tax-free shops shall deliver the goods according to passengers' departure time. Passengers shall collect the goods in the designated areas of airports, railway stations and ports on the strength of their shopping vouchers, and take all goods with them to leave the island.

VI. The tax-free commodities purchased by passengers are regarded as final products for personal use by consumers and could not be sold again in the domestic market.

VII. Individuals who resell, purchase for others or smuggle tax-free commodities in violation of the provisions of the announcement shall be included in their credit records in accordance with laws and regulations, and shall be prevented from making any off-shore tax-free purchase within a period of three years. Those engaged in smuggling or violating customs supervisory provisions shall be held accountable by the customs authority in accordance with relevant provisions. If a crime is constituted, criminal liability shall be investigated according to law.

Travel agencies and transportation enterprises that assist in violating the off-shore tax-free policy and disrupt the market order shall be subject to rectification according to sectoral administration.

Off-shore tax-free shops that violate relevant provisions shall be punished and held accountable by the customs authority in accordance with relevant laws and administrative regulations.

VIII. The measures for the supervision of the off-shore tax-free policy shall be separately promulgated by the General Administration of Customs.

The relevant value-added tax and consumption tax exemption policies applicable to the tax-free goods sold in the off-shore tax-free shops shall be separately formulated by the State Taxation Administration in consultation with the Ministry of Finance.

IX. The announcement will be implemented from July 1, 2020.

Ministry of Finance Announcement No. 14 in 2011, No. 73 in 2012, No. 8 in 2015, No. 15 in 2016, No. 7 in 2017, and No. 158 of the Ministry of Finance, General Administration of Customs and State Administration of Taxation in 2018, No. 175 in 2018 shall be abolished at the same time.

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

Translated by the Foreign Affairs Office of Haikou Municipal Government
Post Reply