On April 27, China’s State Council approved the release of the China International Consumer Products Expo Duty-free Imported Product Policy, jointly published by the Ministry of Finance and the General Administration of Customs. The new Duty-free Policy applies to imported products sold during the Expo period and is expected to bolster Hainan’s development as an international tourism consumer center, expand the province’s ability to open up to the outside world, raise the island’s international image, and have a profound influence on the Hainan FTP.

Ahead of the enactment of the plan to put a customs border around the entire island of Hainan, a limited amount of imported goods sold during the Hainan Expo period will not be liable for import tariffs, import VAT, or sales tax, making them completely duty-free. Companies selling duty-free products at the Expo will be bound by the sales quotas laid out in the new Expo Duty-free Policy. Please note that the Policy does not apply to items banned for import to China, endangered species & related products, tobacco, alcohol, or automobiles.

The Expo Duty-free Policy applies to 8 main types of exhibition products including furniture, apparel and related items, leather goods, fur, artificial fur, travel products, handbags and similar containers, optical equipment, photography equipment, film equipment and products, natural and cultivated pearls, precious and semi-precious gems, precious metals, precious metals plated items & products, wristwatches, pocket watches and other timepieces, and other exhibition products in addition to those mentioned above. Each seller is eligible for duty-free sales of a limit of 50 items of furniture, 30 items of apparel and related items, 30 items of leather goods, fur, and artificial fur, 30 items of travel products, handbags and similar containers. Each seller is eligible for duty-free sales of a limit of 10 items of optical equipment, photography equipment, film equipment and products, with the price of each item not to exceed 10,000 USD. Each seller is eligible for duty-free sales of a limit of 5 items of natural and cultivated pearls, precious and semi-precious gems, precious metals, precious metals plated items & products, with the price of each item not to exceed 10,000 USD. Each seller is eligible for duty-free sales of a limit of 5 items of wristwatches, pocket watches and other clocks with the price of each item not to exceed 10,000 USD. Other items not listed above are eligible for a limit of 20,000 USD per item duty-free.

The names of companies and products participating in the Expo have been reported to Haikou Customs by the Hainan International Economic Development Bureau and other appointed entities. Relevant government departments will monitor sales, and taxes will be assessed according to China’s tax law for products sold during the Expo that exceed the duty-free quotas or for unsold goods that are not exported after the Expo concludes.

01 What is the Expo Duty-free Imported Product Policy?

Ahead of the enactment of the plan to put a customs border around the entire island of Hainan, a limited amount of imported goods sold during the Hainan Expo period will not be liable for import tariffs, import VAT, or sales tax, making them completely duty-free. Companies selling duty-free products at the Expo will be bound by the sales quotas laid out in the new Expo Duty-free Policy. The Expo Duty-free Policy does not apply to items banned for import to China, endangered species & related products, tobacco, alcohol, or automobiles.

02 How will the Expo Duty-free Imported Product Policy be implemented?

Taxes will be assessed according to China’s tax law for products sold during the Expo period that exceed the duty-free quotas or for unsold goods that are not exported after the Expo concludes.

03 How will the Expo Product List be managed?

The names of companies and products participating in the Expo have been reported to Haikou Customs by the Hainan Provincial Bureau of International Economic Development and other appointed entities.