Announcement on duty-free shopping policy for tourists from outlying islands in Hainan

Ministry of Finance, General Administration of Customs and General Administration of Taxation

Announcement on duty-free shopping policy for tourists from outlying islands in Hainan

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

In order to implement the "Overall Plan for the Construction of Hainan Free Trade Port", with the consent of the State Council, the duty-free shopping policy for Hainan outlying island passengers is hereby announced as follows:

1. The tax exemption policy for outlying islands refers to the preferential tax policy for passengers who leave the island by plane, train or ship, buy goods with limited value, quantity and variety, pay in duty-free shops or approved online sales windows that implement the tax exemption policy for outlying islands, and pick up goods in designated areas of airports, railway stations and port terminals. The tax exemption policies for outlying islands are customs duties, import value-added tax and consumption tax.

2. The term "passengers" as mentioned in this announcement refers to domestic and foreign passengers who have reached the age of 16, purchased air tickets, train tickets and boat tickets for outlying islands, and hold valid identity documents, but do not leave Hainan Island, including residents of Hainan Province.

3. The annual duty-free shopping quota for outlying island passengers is 6,543,800 yuan per person, unlimited times. The restrictions on the types of duty-free goods and the quantity of each purchase shall be implemented in accordance with the annex to this announcement. The part that exceeds the duty-free limit and the limited amount shall be subject to import tax according to regulations.

Passengers leave the island by plane, train or ship after shopping, which is recorded as 1 duty-free shopping.

4. The "duty-free shops on outlying islands" as mentioned in this announcement refer to duty-free shops that are qualified to implement the tax-free policy on outlying islands and are franchised. At present, it includes Haikou meilan airport Duty Free Shop, Haikou Riyue Square Duty Free Shop, Qionghai Boao Duty Free Shop and Sanya Haitang Bay Duty Free Shop.

Business entities with the qualification of duty-free goods distribution can participate in duty-free operation of Hainan's outlying islands according to regulations.

5. Passengers from outlying islands shall purchase duty-free goods in duty-free shops on outlying islands or approved online sales windows within the limits and quantities stipulated by the state. Duty-free shops deliver goods according to the time when passengers leave the island. Passengers take shopping vouchers to pick up goods in designated areas of airports, railway stations and port terminals and carry them at one time.

6. Duty-free goods purchased from outlying islands are final goods for consumers' own use and may not be resold in the domestic market.

Seven, in violation of the provisions of this announcement reselling, purchasing, smuggling duty-free goods of individuals, in accordance with the law and regulations into the credit record, three years shall not buy duty-free goods off the island; 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 according to law.

Comprehensive rectification will be given to travel agencies and transport enterprises that assist in violating the tax exemption policy for outlying islands and disrupting market order.

If duty-free shops on outlying islands sell duty-free goods in violation of regulations, the customs shall handle and punish them in accordance with the provisions of relevant laws and administrative regulations.

Eight, the island tax exemption policy supervision measures shall be promulgated by the General Administration of Customs.

Tax exemption policies for value-added tax and consumption tax applicable to duty-free goods sold in duty-free shops on outlying islands shall be formulated separately by the Ministry of Finance of State Taxation Administration of The People's Republic of China.

IX. This announcement shall be implemented as of July 1 day, 2020. Announcement of the Ministry of Finance 1 14, 20 12, 20 15, 20 16 and 20 17.

It is hereby announced.

Attachment: the varieties of duty-free goods on outlying islands and the range of quantity purchased by each person.

Ministry of Finance, General Administration of Customs and General Administration of Taxation

June 29(th), 2020