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The Ministry of Finance and others issued an announcement to increase the tax-free shopping and pickup methods on outlying islands. What kind of consumer experience will this bring?

The consumer experience is actually similar, but it gives many second-hand vendors a chance to make money. Only real consumers can buy as much as they want.

Hainan Province is planning to launch measures to mail duty-free goods to outlying islands, which will greatly relieve the pressure on outlying island pick-up points and greatly enhance the shopping experience for duty-free goods on outlying islands in Hainan. The policy will be announced soon and is already being tested by companies such as the China National Free Trade Commission. Data show that since last year, Hainan Island’s new tax-free policy has achieved remarkable results, with actual annual sales of duty-free shops exceeding 32 billion yuan. During this New Year's Day holiday, Hainan Province sold 669,000 items of duty-free goods on outlying islands, with 76,000 shoppers and sales of 540 million yuan, an increase of 200%, 80.9% and 195.16% respectively over the same period in 2020.

This year, Hainan’s outlying island duty-free shopping policy will increase the outlying island duty-free shopping experience by increasing the number of themes, improving the layout of duty-free shops and improving delivery methods. Previously, four ministries and commissions approved the establishment of six more duty-free shops on the outlying islands of Hainan Province. Three duty-free shops have been opened so far, and three more duty-free shops will be opened soon in the future. According to the latest tax-free policy, the maximum personal tax-free limit has been increased from 30,000 to 100,000, and mobile phones and alcoholic products are also included in the tax-free scope. Judging from the number of items, only 12 fragrances were taken away at one time in the past. After the policy was relaxed, the number was increased to 30 fragrances, 4 mobile phones, 1500ML of alcohol, and no restrictions on other items. In terms of price, the price of duty-free goods is 65% to 85% of the price in other parts of China.

As the duty-free shop market continues to be booming, China Post is helping the Hainan Provincial Government develop a postal system for duty-free goods on Hainan offshore islands. This system can meet customs supervision of goods and allow duty-free goods to be mailed directly home. The controversial point at present is how to prove that these postal duty-free goods are for passengers’ own use and not purchased and shipped on behalf of others. According to Hainan's tax-free policy for outlying islands, passengers must purchase outlying island air tickets, train tickets, and boat tickets to leave Hainan Island when shopping. However, when not leaving the country, they can also pick up goods at the checkpoint with their ID cards and air tickets. The purpose of professional procurement is very clear, which is for secondary sales in the domestic market. In order to buy enough duty-free goods, you may have to collect tickets or collect air tickets for a fee, which may be illegal or even constitute a smuggling crime.

After adopting the mailing system for duty-free goods on outlying islands, it is equivalent to changing the single way tourists carry them to two ways, which can alleviate the pressure of self-pickup at the airport. The rise of this method should not have much impact on cross-border e-commerce and specialty counters, because they are different from duty-free shops in terms of supervision and shopping models. For duty-free shops in the city, the postal service provided by Hainan duty-free shops will not have a direct impact, because the premise of this postal service is that tourists need to travel to Hainan, and the location and delivery method are different. But in terms of purchasing channels, shopping in Hainan duty-free stores is becoming more and more convenient, which may stimulate more tourists to come here to visit and shop, thereby diverting the passenger flow through this channel.

Relying on the policy dividends of the Hainan Free Trade Port, the duty-free shop consumer market has heated up significantly. Activating email services can save tourists time in queuing and improve their shopping experience. It also adds new development opportunities for logistics companies, which is a win-win situation. At present, domestic online shopping and door-to-door delivery have formed a mature system. The main bottleneck lies in whether policies can plug loopholes and avoid disrupting the order of the domestic market. ?This requires setting up duty-free counters, customs and individual consumer systems to enable data interoperability and clarify penalties for smuggling purchases.

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