- China has issued a sweeping notice to overhaul duty‑free shopping, effective Nov. 1, 2025, jointly released by the Ministry of Finance, Ministry of Commerce, Ministry of Culture & Tourism, the General Administration of Customs and the State Taxation Administration. State Council of China
- The guidelines revolve around four pillars: (1) optimize tax‑refund/exemption rules; (2) expand the product range in duty‑free stores; (3) ease approval authority and give provinces more say in opening and sizing shops; (4) refine facilitation and supervision, including online reservations and new pickup options. State Council of China
- Newly encouraged “hot” categories include mobile phones, micro‑drones, sporting goods, health foods and pet food—a bid to keep the latest, best‑selling items on Chinese duty‑free shelves. State Council of China
- Online pre‑order + pickup at entry: travelers can reserve items at downtown duty‑free shops and collect them at port‑of‑entry stores—a notable shift that simplifies trips and consolidates pickup after landing. Government of China
- Official appendix spells out practical limits: e.g., mobile phones are limited to one unit per person, micro‑drones have specific compliance and pickup rules; alcohol/tobacco remain age‑restricted. Government of China
- The push aligns with broader measures to revive consumption and inbound travel, including China’s lowered tax‑refund threshold for foreign tourists (to 200 yuan) and the extension of visa‑free entry to over 40 countries (now through end‑2026). Reuters
What changed—at a glance
1) Tax refund & duty‑free rules for domestic goods.
Domestic products sold in outbound port or downtown duty‑free shops will be treated as exports and can qualify for VAT/consumption‑tax refunds (or exemptions)—a structural incentive to put more quality “Made‑in‑China” items into duty‑free channels. The notice also pledges streamlined customs procedures for these goods. State Council of China
2) A broader, trend‑driven merchandise mix.
Authorities explicitly encourage stores to stock the latest and hot‑selling products, adding mobile phones, micro‑drones, sporting goods, health foods, OTC medicines and pet food to scope. Regulators also promise to speed up the shelf‑placement of overseas best‑sellers in China’s duty‑free network. State Council of China
3) Easing approvals and empowering provinces.
The approval authority for certain duty‑free store setups is delegated to provincial departments, and rules for defining shop footprints at ports are simplified—measures designed to let localities integrate and optimize their duty‑free layouts. Government of China
4) Online reservation, easier pickup, tighter oversight.
Shops are encouraged to offer online booking, and items reserved at city‑center duty‑free stores can be picked up at port‑of‑entry shops. Regulators also call for a smoother shopping flow and continued supervision to protect consumers. State Council of China
Why it matters: The State Council Information Office summarized the strategy as a consumer‑first upgrade to “enrich tourists’ shopping choices” and make the duty‑free experience more convenient and attractive. State Council of China
What you can buy now (and key limits)
China published a three‑page official list of categories for port departures, port arrivals and downtown duty‑free shops. Highlights include:
- Food & beverages;
- Pet food; health foods; OTC medicines;
- Perfume, cosmetics & toiletries; jewelry, watches, apparel, bags & shoes;
- Computers & peripherals; wearables & consumer electronics; photographic gear;
- Sporting goods, toys, stationery; baby/maternity; instruments; handicrafts.
Important constraints:
- Mobile phones: limit of 1 unit per person.
- Micro‑drones: must meet China’s UAV rules; certain models without identification codes (intended for overseas sale) are only for port‑departures and downtown shops and cannot be picked up on entry.
- Alcohol & tobacco remain subject to age rules and inbound duty‑free limits; for non‑quantified items, quantities must be reasonable for personal use. Government of China
The pickup rethink: from “departure‑only” to entry‑port convenience
Under 2024 in‑city duty‑free rules, customers had to collect purchases at departure‑side pickup points in airport/cruise departure isolation zones; entry‑side pickup was not allowed. shanghai.chinatax.gov.cn
The new national notice now allows travelers to reserve at a downtown shop and pick up later at the port of entry, with payment and collection handled as a port‑of‑entry duty‑free transaction under relevant policies. Industry analysts called this “a critical change.” Government of China
How it works, per the notice:
- Reserve via the online window of the port or downtown shop in line with your itinerary;
- The shop stages the goods; you collect with valid travel documents and purchase vouchers at the relevant port store or pickup point. Government of China
Why now: part of a bigger inbound‑consumption play
The duty‑free overhaul dovetails with China’s wider push to boost spending and inbound travel:
- Tax refunds for foreign tourists were eased in April 2025, with the minimum refund threshold cut to 200 yuan and more tax‑refund shops planned in popular areas. Reuters
- Visa‑free access has been expanded and extended: China recently extended unilateral visa‑free entry to over 40 countries to Dec. 31, 2026, and added Sweden to the scheme from Nov. 10, 2025. Reuters
- Officials say inbound tourism and spending are rising in 2025, reinforcing the logic for more convenient duty‑free options. State Council of China
Hainan and the national picture
The new nationwide policy excludes Hainan’s offshore duty‑free program, which runs under a separate regime. Hainan also broadened its own categories (to 47) and updated shopping facilitation from Nov. 1, supporting the island’s free‑trade‑port goals. Early data from Haikou Customs show a ~35% year‑on‑year rise in offshore duty‑free sales in the first week after the upgrade. CGTN News
Context: Hainan’s market has been volatile (Reuters reported a 2024 slump), which helps explain why Beijing is spreading duty‑free access more evenly across ports and cities while optimizing product mixes and procedures. Reuters
Expert and industry reaction
- Yang Zhiyong, president of the Chinese Academy of Fiscal Sciences, called the move “an important step to strengthen top‑level design” and boost the appeal of duty‑free shopping for cross‑border travelers. Government of China
- Gao Lingyun of the Chinese Academy of Social Sciences said a bigger slate of domestic and international goods will make China’s duty‑free offerings “more diverse and trendy,” while authorities speed up the shelf‑placement of latest and hot‑selling imports. Government of China
- Duty‑free specialist Martin Moodie highlighted the entry‑pickup allowance as a “critical change,” noting it reverses a key limitation of the 2024 downtown policy. Moodie Davitt Report
What it means for retailers and brands
- Domestic brands get a tax‑efficient pathway into duty‑free channels (domestic goods treated as exports for tax purposes), and the notice encourages “time‑honored,” cultural and creative products. It even asks stores to reserve at least a quarter of floor space for domestic goods in certain formats. Government of China
- International brands are explicitly invited to bring latest and hot‑selling items to China’s duty‑free network, with regulators vowing to accelerate approvals and facilitate joint procurement to improve supply and pricing. Government of China
- Operators benefit from delegated approvals and clearer rules on shop areas and layout optimization at the provincial level. Government of China
- Market pulse: Tourism‑linked stocks reacted positively to the policy headlines; local financial media recorded a sharp one‑day jump in China Tourism Group Duty Free (CTG) amid the news flow. AAStocks
Practical tips for travelers (read before you click “reserve”)
- Bring valid documents (passport/authorized travel IDs) and your purchase voucher to pick up pre‑ordered items. Government of China
- Know the category rules: 1 mobile phone limit; micro‑drones must meet UAV rules and some models cannot be collected on entry; alcohol/tobacco are age‑restricted and subject to inbound duty‑free limits. Government of China
- Personal‑use principle still applies for quantities not otherwise specified. Items bought at arrivals duty‑free are combined with other items you bring from abroad for customs assessment. Government of China
- Downtown‑to‑entry pickup is now permitted—reserve online, then collect at the port of entry per instructions. Government of China
The bottom line
China’s new notice modernizes duty‑free retail on multiple fronts: it incentivizes domestic‑brand participation, broadens what shoppers can buy (from phones to micro‑drones and pet food), simplifies how and where they pick up orders, and hands more authority to provinces to build the network faster. Combined with easier tourist tax refunds and wider visa‑free access, it’s designed to pull spending into China and enhance the inbound traveler experience heading into 2026. Reuters+3State Council of China
Sources & further reading
- Official notice (full text & annex): Ministry of Finance/State Council policy library (Chinese). Government of China
- Government English summary (Xinhua via State Council): scope, four pillars, and online pickup. State Council of China
- Industry breakdown of new pickup flexibility and category details. Moodie Davitt Report
- Background on 2024 downtown duty‑free rules (departure‑side pickup only). shanghai.chinatax.gov.cn
- Hainan policy updates and early sales data. CGTN News
- Tourist tax‑refund easing (April 2025) & visa‑free extension (Nov. 2025). Reuters
