Refined duty-free policies to boost consumption, attract overseas shoppers

China will introduce a series of new measures to upgrade its duty-free shop policies starting Nov 1, 2025, in a bid to boost domestic consumption and attract more foreign visitors, according to a notice released on Thursday.

The notice, jointly issued by the Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Taxation Administration, outlines improvements to duty-free management and supervision to promote the healthy and orderly development of the sector.

“The comprehensive refinement of duty-free shop policies means greater autonomy for market operators, more choices for consumers, and broader room to enhance efficiency across regulatory processes,” said Yang Jinsong, a researcher at the China Tourism Academy.

The new policy focuses on four key areas.

Firstly, it aims to improve tax refund and exemption management for domestic products, encouraging duty-free shops, including those at ports and in cities, to sell more Chinese-made goods. Stores are also encouraged to feature products showcasing traditional Chinese culture and craftsmanship, expanding the presence of high-quality local brands.

“Making more domestic products to enter duty-free stores is only the beginning. Beyond price advantages, challenges also lie in leveraging China’s strong manufacturing capabilities to create a tighter link between market feedback and product development,” Yang said.

In addition, the range of goods eligible for duty-free sales will be expanded to include more portable and popular items such as smartphones, mini drones, sports gear, health supplements, over-the-counter medicines, and pet food.

The notice also encourages joint procurement efforts to attract more international brands and their latest or best-selling products into China’s duty-free network, enriching travelers’ shopping choices.

Convenience and supervision measures will also be enhanced through the new measures. Travelers will be able to pre-order duty-free items online before arrival or departure and collect them at designated pickup points using valid travel documents and purchase vouchers.

The new policy also allows travelers to pre-order products from downtown duty-free stores and collect them later at arrival terminals, further improving shopping convenience and overall consumer experience.

Another highlight of the policy adjustment is the easing of approval procedures for duty-free stores.

According to the notice, the authority to approve the establishment and management of duty-free shops will be delegated from the Ministry of Finance — previously working jointly with the ministries of commerce, culture and tourism, and the administrations of customs and taxation — to provincial-level departments at the port locations.

“The delegation of certain approval powers to provincial authorities will allow local governments to better adapt duty-free store planning to local conditions, helping optimize layouts and promote the industry’s further development,” said Yang Zhiyong, president of the Chinese Academy of Fiscal Sciences.

The improved policy measures will further enhance the appeal of duty-free shopping for inbound and outbound travelers, promote the healthy and orderly growth of the duty-free retail sector, and mark an important step in strengthening top-level policy design and refining regulatory mechanisms, Yang added.