A duty-free store will soon open in downtown Shenzhen, according to interim measures recently released by State agencies that will take effect Oct. 1.
The same practice will be mirrored in seven other cities across the country, namely Guangzhou, Chengdu, Tianjin, Wuhan, Xi’an, Changsha, and Fuzhou, according to a statement jointly made by the Ministries of finance, commerce, culture and tourism, the General Administration of Customs, and the State Administration of Taxation.
According to the statement, the duty-free stores will be for both domestic and international travelers who are departing the country by air or sea within 60 days. Travelers can make purchases at these stores in advance and then collect them at their port of departure.
These downtown duty-free stores will mainly sell consumer goods that are easy to carry, including food, clothing, bags, shoes, baby products, jewelry and crafts, electronics, perfumes, cosmetics, and liquor. The statement encourages the sale of goods from domestic brands that reflect traditional Chinese culture.
Another 13 foreign-exchange goods duty-free stores in the country will be transformed into downtown duty-free stores within three months of the new measures taking effect and open after passing customs inspections.
Existing downtown duty-free stores operated by the China Duty Free Group in Beijing, Shanghai, Qingdao, Dalian, Xiamen, and Sanya will be subject to the new measures.
Currently, the Shenzhen Duty Free Group operates stores at eight checkpoints, including one at the airport. Since the start of the second quarter this year, sales of duty-free products at the Huanggang and Futian checkpoints have increased, with combined sales exceeding 76 million yuan (US$10.7 million) by the end of July.
“Sales of duty-free products at the checkpoint have been particularly good this year,” said Zheng Tao, manager of the Shenzhen Duty Free Group’s Futian Checkpoint store.
By Aug. 14 this year, the number of international travelers entering and exiting Shenzhen had exceeded 3 million, a 122.7% increase year on year, data from the Shenzhen Exit and Entry Frontier Inspection Station show.
Internationally, duty-free stores in downtown areas stand as the second-largest duty-free shopping channel after those in airports.