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China Announces Changes to Port-of-Exit Duty-Free Operations

The geographic and category restrictions governing port-of-exit duty-free shops are to be relaxed. This will see any business with a five-year track record of successfully operating port-of-exit / downtown duty-free facilities eligible to bid for any duty-free franchise.

In line with this, all such shops are to be operated on a franchise basis, with the duty-free commodities on offer limited to the those approved by Customs. The number / positioning of such outlets, as well as their future development, will be officially assessed so as to match the projected traveller flow.

The move was announced in the Interim Measures for the Administration of Duty-Free Shops at Ports of Exit, as jointly-issued by the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation and two other government departments on 3 July.

Source: Ministry of Finance

Content provided by Picture: HKTDC Research
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