Hainan duty-free sales surpass 200 billion yuan

Sanya Customs officers inspect duty-free shipments at a Sanya facility as part of Haikou Customs' efforts to streamline checks. [Photo provided to chinadaily.com.cn]

Local customs authorities have announced that since Hainan more than tripled its per-person duty-free shopping quota in July 2020, sales have topped 200 billion yuan ($28.1 billion).

In addition to raising the quota from 30,000 to 100,000 yuan, the policy removed the single-item purchase limit and added seven popular categories, including electronics.

As of Sept 11, Haikou Customs said more than 30 million passengers had purchased 247 million duty-free items.

The rapidly growing demand has given rise to corporate efforts to make purchasing easier. Retailers now offer doorstep delivery, resident pick-up, and guaranteed pick-up windows.

"After the policy, we introduced new liquor and electronics brands and accelerated restocking of popular perfumes, cosmetics, and luxury goods," said Zhang Bin, general manager of China Duty Free Group's Sanya International Duty-Free Shopping Complex. "New pick-up options and events such as concerts have diversified our business development."

Duty-free operators are attracting international brand debuts and product launches, and tying shopping to local culture, sports, and tourism.

During peak seasons, retailers face inventory and logistics pressure. Haikou Customs said it has rolled out smart clearance systems and automated approvals across the island's 12 duty-free stores, improving approval efficiency by 60 percent and doubling the logistics turnover for duty-free goods.

"We are committed to strengthening supervision while optimizing services to maximize the benefits of the duty-free policy," said Guo Jianmeng, director of the port supervision department at Haikou Customs. "Innovations like centralized automated declaration reviews and drone deliveries have enhanced operational efficiency, ensuring product availability for consumers and smoother operations for businesses."