Five departments including the Ministry of Finance jointly issued a notice to improve duty-free shop policies to support boosting consumption

The Zhitong Finance App learned that recently, the Ministry of Finance, the Ministry of Commerce, the Ministry of Culture and Tourism, the General Administration of Customs, and the State Administration of Taxation jointly issued the “Notice on Improving the Duty-free Shop Policy to Support Consumption”, which clearly improves the duty-free shop policy from November 1, 2025. The aim is to further develop the role of duty-free policy support in boosting consumption, guide the return of overseas consumption, attract foreigners to enter and spend, and promote the healthy and orderly development of the duty-free retail business.

The notice improved the duty-free shop policy from four aspects. The first is to optimize the management of tax refund (exemption) policies for domestic products, and actively support outbound duty-free shops at ports and duty-free shops in the city to sell domestic products. The second is to further expand the business categories of duty-free shops and include more consumer goods that are easy to carry in the scope of business. The third is to relax the approval authority for duty-free shops and support local integration and optimization of the layout of duty-free shops according to local conditions. Fourth, improve duty-free shop facilitation and supervision measures, and continue to enhance the duty-free shopping experience for travelers.

The original text is as follows:

Notice on improving duty-free shop policies to support boosting consumption

Finance and Tariffs [2025] No. 19

Finance departments (bureaus), commercial departments, culture and tourism departments (bureaus) of each province, autonomous region, municipality directly under the Central Government, department of culture and tourism (bureau), the Guangdong branch of the General Administration of Customs, the customs directly under the Central Government, the taxation bureau of each province, autonomous region, municipality directly under the Central Government and planned separate municipalities, the Xinjiang Production and Construction Corps Finance Bureau, Bureau of Commerce, Culture, Sports, Radio, Television and Tourism:

In order to further develop the role of the duty-free shop policy in supporting and boosting consumption, guide the return of overseas consumption, attract foreigners to spend, and promote the healthy and orderly development of the duty-free retail business (hereinafter referred to as duty-free retail business), the State Council decided to improve the duty-free shop policy. The relevant matters are hereby notified as follows:

1. Optimize the management of tax refund (exemption) policies for domestic products, and actively support outbound duty-free shops at ports and duty-free shops in the city to sell domestic products

(1) Encourage enterprises qualified to operate duty-free goods and foreign-invested enterprises approved by the State Council to participate in the operation of duty-free shops to increase their procurement of high-quality and characteristic domestic products. The enterprises concerned purchase domestic products and sell them at duty-free shops at the port and duty-free shops in the city. They are treated as exports, and VAT and consumption tax are refunded (exempted).

(2) Further optimize the tax refund (exemption) supervision and operation procedures for operating domestic products at port outbound duty-free shops and duty-free shops in the city to facilitate the entry and sale of domestic products.

1. For domestic goods purchased uniformly by relevant enterprises at tax-inclusive prices and entered into duty-free goods warehouses at the port exclusively for sale at duty-free shops at the port and duty-free shops in the city, the customs supervises them according to the duty-free goods. For domestic products that have already been sold, enterprises can apply to the customs for export customs procedures.

2. In accordance with regulations, relevant enterprises apply for tax refund procedures from the tax department in charge of export tax rebates on the basis of customs declarations for export goods, special value-added tax invoices, “Tax Payment Documents (Export Goods and Services)”, etc. The tax rebate rate is implemented in accordance with the export tax rebate rate uniformly stipulated by the country.

3. Specific supervision and tax refund management measures for domestic products operated by port outbound duty-free shops and duty-free shops within the city shall be separately formulated by the General Administration of Customs in conjunction with the Ministry of Finance and the State Administration of Taxation.

(3) Optimize the customs clearance process for domestic products. Domestic products sold at port duty-free shops and duty-free shops in the city are products that have already been marketed and sold domestically. When leaving the country, they are supervised according to personal use items, there is no need for export inspection and quarantine, and there is no need to fill in an “inspection and quarantine electronic account data number” during customs declaration.

(4) Port outbound duty-free shops and duty-free shops in the city should increase the promotion of domestic products, enhance the influence and appeal of domestic products, introduce time-honored products, cultural and creative products, intangible heritage products, etc. that reflect outstanding traditional Chinese culture, and increase sales of domestic products in duty-free shops. In principle, the operating area of port duty-free shops and duty-free shops in the city used to sell domestic products is not less than one-quarter of their operating area.

2. Further expand the business categories of duty-free shops and enrich the shopping choices of travelers

(1) Further expand the business categories of port exit duty-free shops, port entry duty-free shops, and duty-free shops in the city, and add products such as mobile phones, mini drones, sporting goods, health food, non-prescription drugs, and pet food. Integrate and optimize the operating categories of port outbound duty-free shops, port inbound duty-free shops, and city duty-free shops. Please refer to the attachment for the specific business categories of the above three types of duty-free shops.

(2) According to the actual situation, relevant departments will optimize the supervision methods for imported duty-free goods and speed up the listing of popular products already listed abroad in China's duty-free shops.

(3) Support relevant enterprises to continuously improve their bargaining power and operating level, encourage more international brands to sell the latest products, popular products, etc. in China's duty-free shops through joint procurement and other methods, and expand the variety of products actually sold by duty-free shops.

3. Relaxation of duty-free shop approval authority to support local integration and optimization of duty-free shop layout according to local conditions

(1) Delegate approval authority for the establishment of port exit duty-free shops, changes in the method of determining the operating entity of port exit duty-free shops and port entry duty-free shops.

1. The provincial (autonomous region, municipality directly under the Central Government, planned separate city) people's government (including the Xinjiang Production and Construction Corps) coordinates the layout and construction of export duty-free shops at ports in the region. The establishment of a port exit duty free shop shall be approved by the provincial finance department where the port is located in conjunction with the departments of commerce, culture and tourism, customs, taxation, etc.

2. If there are both port exit duty-free shops and port entry duty-free shops at the same port, separate tenders can be conducted. If tender conditions are not met, for example, in special circumstances such as low inbound and outbound passenger traffic and limited business area, the provincial finance department shall approve with the departments of commerce, culture and tourism, customs, taxation, etc., and determine the operating entity by reference to competitive negotiations as stipulated in the “Government Procurement Law of the People's Republic of China”.

3. Matters such as the establishment of port exit duty-free shops at airports directly under the Civil Aviation Administration of China, changes in the way port exit duty-free shops and port entry duty-free shops are determined in accordance with the original regulations.

4. After the business entity is determined, matters such as filing records with the Ministry of Finance and other relevant departments and applying to customs for a license to operate a duty-free shop are still carried out in accordance with the original regulations.

(2) Optimize the method for determining the operating area of port outbound duty-free shops and port inbound duty-free shops.

1. The operating area of port exit duty-free shops and port entry duty-free shops shall be determined by negotiation between the tenderer or port owner and the operator, but must meet customs supervision requirements.

2. If the operating area of a port exit duty-free shop or port entry duty free shop needs to be changed during the operation period, the tenderer or port owner shall determine it after negotiations with the operator, and then the business entity shall submit an application for customs approval.

(3) Provincial finance departments should work with commercial, cultural and tourism, customs, taxation and other departments to integrate and optimize the layout of duty-free shops according to local conditions, develop themed shopping scenarios with regional characteristics, continuously improve and enhance the image of duty-free shops, and promote duty-free shops to attract inbound consumption.

4. Improve duty-free shop facilitation and supervision measures to continuously enhance the duty-free shopping experience for travelers

(1) Support port exit duty-free shops, port entry duty-free shops, and city duty free shops to provide online reservation services.

1. According to the entry/exit itinerary, travelers can reserve duty-free products in advance at port exit duty-free shops, port entry duty-free shops, and online counters of duty-free shops in the city.

2. The relevant duty-free shop prepares the goods according to the passenger's entry and exit time. The passenger himself/herself picks up the goods at the corresponding port and exit duty-free shop, port entry duty-free shop, or duty-free goods pickup point according to regulations with valid entry/exit documents and shopping vouchers.

(2) Passengers are allowed to make a reservation at a duty-free shop in the city and pick up the goods at the port of entry. Where there is a port entry duty-free shop in the city where the duty-free shop in the city is located, travelers make a reservation at the duty-free shop in the city and pay and pick up the goods at the port entry duty-free shop when entering the country. It is considered to be shopping at the port entry duty-free shop and is carried out in accordance with the relevant policies and regulations of the port duty-free shop.

(3) Relevant departments and duty-free goods operators continue to optimize the duty-free shopping process, raise the level of facilitation, fully meet the consumer demand for duty-free shopping, strengthen supervision of duty-free goods, maintain market order, and protect consumers' rights and interests.

5. Organization and implementation

(1) The Ministry of Finance, together with relevant departments, will strengthen coordination and push for relevant policies to be implemented and effective as soon as possible. The Ministry of Commerce and the Ministry of Culture and Tourism promote domestic “trendy” brands, and do a good job of promoting measures such as selling domestic products directly in stores and ordering duty-free goods online. The General Administration of Customs organizes customs clearance and supervision of duty-free goods. The State Administration of Taxation organizes work such as tax refunds.

(2) The provincial people's government where duty-free shops are located, as the responsible entity for the supervision and management of duty-free shops in the region, should step up the organization and implementation of work relating to duty-free shops in the region, continue to play the role of duty-free shop policies in promoting consumption, and do a good job of risk prevention and control.

(3) This notice will take effect on November 1, 2025. The content of relevant policy documents such as the “Notice of the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation and the National Tourism Administration on Issuing the 'Interim Measures on the Administration of Duty Free Shops at Ports” (Finance and Customs (2016) No. 8) and other relevant policy documents shall prevail.

This article was edited from the official website of the Ministry of Finance; Zhitong Finance Editor: Chen Xiaoyi.