The zero-tariff policy for self-use equipment
According to the zero-tariff policy, imports of self-use equipment intended for production have been exempted from customs duties, import VAT, and consumption tax. The equipment pertains to those used for production and operation activities in the following areas:
- infrastructure construction;
- processing and manufacturing;
- R&D and design, inspection, and maintenance;
- logistics and warehousing;
- medical services; and
- cultural and sports tourism.
The said policy has been implemented since February 2021 and still continues until further notice.
New duty-free policy for Hainan shoppers
China’s STA announced an offshore duty-free policy including the increase in the allowable value, quantity, and category for duty-free shopping. The duty-free policy exempts the sales of goods from standard taxes such as customs duty, import value-added tax (VAT), and consumption tax. However, consumers cannot resale these tax-free commodities in the domestic market.
Increased quota and limit removal
From previously RMB 30,000, the annual duty-free shopping quota has been increased to RMB 100,000 per person with no limit on times of purchase. Furthermore, STA also removed the limit of RMB 8,000 for a single tax-free commodity.
The tax administrators also decided to augment the categories from 38 to 45 under which consumers can purchase commodities. They also increased the purchase limit for some products including cosmetics, mobile phones, and hand-held (vehicular) radio phones, and alcoholic products.
Following the provision, the competent authorities will regard commodities with single integral packaging and independent prices as one piece. On the other hand, they will calculate the actual amount of goods contained in the package of suite products.
You can find the list of commodities with unlimited purchases here.
New picking method
STA also introduced a new picking method or policy for Hainan Island shoppers that took effect on February 2, 2021. The island shoppers can choose to receive their purchase goods via mail delivery, in addition to picking them up at designated ports. This applies for as long as the purchaser is also the receiver and payer of the goods. The purchaser or receiver should also send the delivery outside Hainan province.
Moreover, duty-free stores will deliver such purchased goods on a one-off basis after confirmation of requirements and the purchaser has left the island. As for the Hainan Island resident, they can pick up the goods after returning to the island provided that they can present their actual date of departure. The duty-free store may also deliver their goods given the island residents have met the requirements.