Hainan to let travelers avoid duties

HAIKOU. March 25. KAZINFORM Starting April 20, mainland travelers will be able to buy duty-free goods in Hainan as long as they leave the island by air and return to the mainland, the Ministry of Finance announced on Thursday.

The policy will prevent mainland visitors from paying various types of taxes on up to 5,000 yuan ($762) worth of imported goods bought at selected duty-free stores on the tropical island province in South China.

With the change in place, the prices of certain goods in Hainan are expected to fall by 15 percent to 35 percent for Chinese travelers.

Permission to buy goods duty-free in Hainan had been extended to foreign and non-mainland travelers before, but never to mainland visitors.

The goal of the policy is to make Hainan into a tropical tourist destination by 2020. The tourism industry is then expected to contribute 12 percent of the island's gross domestic product.

To that end, the policy has been designed to be generous. But there are restrictions.

Only travelers who are 18 or older will avoid paying import duties. And mainland visitors to Hainan can only buy goods duty-free at the shop twice a year, while island residents can only once a year.

The new policy allows 18 types of goods to be bought duty-free. They include jewelries, artworks, wristwatches, perfumes, cosmetics, pens, glasses, scarves, neckties, wool fabrics, cotton goods, clothing, belts, bags, small leather goods, candies and sporting goods, Kazinform refers to China Daily.

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