What is the offshore duty free policy in China?

Let's take a simple example. When you go to Hainan, no matter what purpose you are going to, as long as you buy a ticket, you can go to the duty-free shop to buy things, but you can only go out of the island to buy, not enter the island.

According to the information released by the Chinese Ministry of Finance, the offshore duty-free policy refers to the preferential tax policy of exempting passengers from import tax on age, quota, number of pieces and number of times by air (excluding departures), paying in duty-free shops that implement the offshore duty-free policy, and picking up goods in the airport quarantine area.

The offshore duty-free policy refers to a preferential policy for passengers leaving Hainan Island by plane to purchase duty-free goods in duty-free shops with a limit of age, quota, number of pieces and number of times.

Legal analysis: From July 1, 2020, the duty-free shopping quota on Hainan Island will be increased from 30,000 yuan to 100,000 yuan per person per year, and there is no limit to the number of times. The variety of duty-free goods on the outlying islands has increased from 38 to 45, including electronic consumer products such as mobile phones; At the same time, the tax exemption limit of 8,000 yuan for a single item has been cancelled.

Legal basis: Announcement on Launching the Pilot Duty-free Shopping Policy for Tourists Leaving Hainan Island 1. The following adjustments are made to some of the contents of the duty-free policy for Hainan Islands:

1) Adjust the age requirement for the subject of the policy to be at least 16 years old.

2) Increase the variety of three types of duty-free goods, including beauty and health care equipment, tableware and kitchen supplies, and toys (including baby carriages). After the adjustment, the variety of duty-free commodities has been expanded to 21, and the specific varieties of commodities are detailed in the annex, except for the national regulations that do not meet the requirements of civil aviation safety, prohibit imports, and 20 kinds of commodities that are not subject to tax reduction or exemption.

3) The duty-free shopping limit per person per person will be adjusted to RMB 8,000, that is, the cumulative purchase amount per person shall not exceed RMB 8,000 for duty-free goods with a unit price of less than RMB 8,000 (including RMB 8,000), and the number of duty-free goods purchased shall be appropriately increased (see the appendix for details).

In addition, if there is any surplus (or unused) in the duty-free allowance, passengers can adjust and use it when purchasing one commodity with a unit price of more than 8,000 yuan, and deduct the tax base of the import tax payable on imported goods accordingly, that is, passengers can also purchase one commodity with a unit price of more than 8,000 yuan per person each time under the condition of paying the import tax on imported goods at the price of "commodity retail ** remaining duty-free limit".

Passengers leaving the island are not allowed to enjoy the duty-free shopping policy for 3 years under any of the following circumstances:

1. Failure to carry duty-free goods off the island in accordance with regulations;

2) Providing false identification documents or using identification documents that do not comply with regulations;

3) Violating other delayed provisions.

According to the promulgation of the duty-free shopping policy for tourists leaving Hainan Island, starting from April 20, 2011, domestic and foreign tourists and residents of Hainan Island can purchase duty-free goods at Sanya duty-free shops with valid identity documents and information on flights and dates departing from Sanya Airport before leaving Hainan Island.

The policy stipulates that non-resident passengers can enjoy a maximum of 2 duty-free shopping policies per person per year, and each resident passenger can enjoy a maximum of 1 time per year. The amount of duty-free shopping per person for outlying islands (including domestic residents) is tentatively set at RMB5,000 (inclusive).

In addition, under the condition that passengers pay the import tax on imported goods in full according to the duty paid**, each person can also purchase one product with a unit price of more than 5,000 yuan each time.

Extended Information; Hainan offshore island duty-free policy.

Passengers over the age of 16 who have purchased air, train, and ferry tickets and hold valid identity documents (domestic tourists hold resident ID cards, Hong Kong, Macau, and Taiwan tourists hold travel documents), and foreign tourists hold passports) have left Hainan Island but have not left the country, including residents of Hainan Province.

The duty-free policies for outlying islands are customs duties, import value-added tax and consumption tax.

On June 29, 2020, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued the Announcement on the Duty-free Shopping Policy for Tourists on Hainan Island. Duty-free shopping on outlying islands is 100,000 yuan per person, and there is no limit to the number of times.