CHINA: HAINAN
Game-changing Hainan offshore duty free allowance increase integral to FTP plan
The planned tripling of the Hainan duty free allowance to RMB100,000 and expansion of the category range were announced on 1 June as part of government plans to create the Hainan Free Trade Port. Andrew Pentol reports.
T
he Chinese government’s decision to more than triple the annual offshore duty free
purchasing allowance on Hainan Island and expand the duty free product category is a key part of its plan to create a Free Trade Port (FTP) there (as previously reported). News of the proposed allowance
increase to RMB100,000 ($14,412) and additional duty free categories has been welcomed by the Hainan Provincial Bureau of International Economic Development. The bureau must now generate foreign investment in the FTP, provide a non- stop service for global investors and prepare for next year’s Hainan Expo. At the time of writing, TRBusiness
was expecting details of the Hainan Island duty free policy to be revealed at the end of June or early July. There was also a possibility that the new allowance and duty free categories could actually be implemented within this timeframe.
Latest allowance increase This latest adjustment to the offshore duty free quota for visitors to the Island will be the sixth since the successful offshore duty free programme was introduced in 2011. In 2016, the allowance was doubled to RMB16,000 ($2,263) from RMB8,000. Two years later it was raised to RMB30,000. TRBusiness has been informed that
more items for daily consumption and additional luxury goods will be added to the list of offshore duty free product categories. The number of categories currently
stands at 38 following the addition of medical devices last year. Categories include perfume, cosmetics, glasses and jewellery and purchases are limited to two items per person at any one time. Ruslan Tulenov, Supervisor, Hainan
JULY 2020
Provincial Bureau of International Economic Development (left) tells TRBusiness: “Hainan is building a Free Trade Port and will become an International Tourism Consumption Centre, which is already something very meaningful. “The opportunity to visit
somewhere different is the main motivation for many tourists visiting Hainan, but they also want to shop. This increased allowance will give regular people like us the opportunity to purchase high quality products in big quantities.”
A new shopping haven Adding further details on the additional duty free product categories, Tulenov says: “We are expecting some product categories for daily consumption to be expanded, along with the addition of luxury brands such as Chloe, Vacheron Constantin, Gucci and Cartier.” The increased Hainan duty free
allowance and additional duty free product categories are among several elements which will provide a strong platform for foreign businesses to enter China. “The government wants to make
Hainan a Free Trade Port with a zero- tariff policy on certain imported goods and items. Qualifying goods and items will be exempt from import duties, import value added tax and consumption tax. “In short, China wants to share
the benefits of the Hainan Free Trade Port with the rest of the world and make Hainan feel like a haven for shopping.” The government’s FTP plans
have already caught the attention of international players, according to Tulenov. “Since the master-plan was released, many international
companies in the travel, tourism, airline, luxury and leisure industries have expressed a desire to enter China through the Hainan Free Trade Port.” Under current government plans,
the aim is to complete the high- level FTP by 2050 and ensure it has a strong global influence. “The master-plan for developing
what is already China’s largest special economic zone into a Free Trade Port, suggests the aim is to develop the island into a globally influential duty free trading centre by the middle of the century,” says Tulenov. “A mechanism for policy
facilitation enabling free trade and investment is to be created by 2025. By then, the Hainan Free Trade Port will be established, and the island will be a ‘Special Customs Supervision Area’. Hainan Island will be like a big duty free zone.” «
“This increased allowance will give regular people like us the opportunity to purchase high quality products in big quantities.”
Ruslan Tulenov, Supervisor,
Hainan Provincial Bureau of International Economic Development
TRBUSINESS 27
Above: The Hainan Provincial Bureau of International Economic Development is charged with the task of generating foreign investment in the Free Trade Port.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50
