Hainan continuously upgrades tax-free shopping policies

From the state-owned foreign currency duty-free shopping mall established 30 years ago to the convenient and upgraded duty-free shops in the present, duty-free shopping has become a new calling card for Hainan province, which has an eye to becoming an international tourism consumption center.

On June 1, the phase II project of Haikou's duty free shopping area, which is regarded as a new landmark for duty-free shopping in Hainan's outlying islands, began operations. Thirty-one years ago, merely a few kilometers from the new duty-free shopping zone, is Hainan's first duty-free mall, which was established shortly after the founding of Hainan province. The shopping mall offered tens of thousands of commodities, including clothing, shoes, toys, daily necessities, and household appliances. Many imported goods entered the lives of local residents through the shop.

The Haitang Bay Duty Free Shopping Mall in Sanya, Hainan province. [Photo/hinews.cn] 

The early tax exemption in Hainan boosted local tax-free companies. The total sales of goods in the seven affiliated shops in 1994 was HK$424 million ($54 million), increasing by 32.2 percent from the previous year. However, with the introduction of a series of reforms in national fiscal policies, taxation, and currency exchange systems, the tax reduction and exemption policies had gradually lost their advantages.

In March 2008, the State Council agreed to open four duty-free shops in Haikou, Sanya, Qionghai, and Wanning. However, they were only opened to foreigners, overseas Chinese, and residents of Hong Kong, Macao, and Taiwan. Domestic tourist weren't able to enjoy the tax exemption.

A customer walks past a duty free shop in Sanya. [Photo/hinews.cn] 

On April 20, 2011, the policy was expanded and tax-free policies for Hainan passengers were formally implemented. All passengers who would fly off the island could enjoy the tax exemption as outbound tourists.

Since then, numerous exemplary duty-free shops have been built and put into operation under the support of the policies. Haitang Bay Duty Free Shopping Mall is one such example. As the world's largest-scale tax-free mall, it boasts over 300 international brands and nearly 100,000 fashion items. The center is even regarded as a popular tourism venue of Sanya and a must-go place for inbound visitors.