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05 04 2016 China sets up new duty-free shops at 19 ports of entry

After the approval of the State Council, China established new duty-free shops at 19 ports of entry, including Guangzhou, Hangzhou, Shenzhen and other cities. On February 18th 2016, the Ministry of Finance, Ministry of Commerce, General Administration of Customs, State Administration of Taxation and the China National Tourism Administration jointly issued the “Interim Measures for the Management of Duty-Free Shops at Ports of Entry”.

In general, the maximum value of duty-free items that Chinese tourists are allowed to purchase overseas will remain unchanged (5,000 RMB), while it shall be permitted to increase the total value of duty-free goods adding a fixed quantity of items purchased at the duty-free shops at the ports of entry. The total amount for the combination of the purchases overseas and at the ports of entry could not exceed 8,000 RMB.

According to the regulations, duty-free shopping at the entry ports must comply with the following conditions: entering passengers shall hold a valid document and proof of purchase of public transportation titles; passengers who do not hold the public transportation titles shall hold valid entry-exit documents in order to make the purchase. Valid documents include passport and the permits to enter Hong Kong, Macau or Taiwan. Purchased items shall be accompanied by the proof of purchase in accordance to the regulations.

 

Tax exemption of customs duties, VAT for imported goods and consumption tax.

Duty-free categories for personal consumption include eyewear, watches, tobacco and alcohol, perfumes and cosmetics etc.

The requirement of the Measures is that, after purchasing duty-free items at the entry port, the passenger shall carry the items by himself to enter the Country. In case the same port has the same shop both at the entry and exit ports, the purchases booked at the exit port shop, but paid and collected at the entry port shop will be considered as purchased at the entry port duty-free shop.