Beginning 00:00 on November 1 2025, travelers leaving China’s island province of Hainan can shop under a markedly more generous offshore duty-free regime. The joint announcement from the Ministry of Finance, the General Administration of Customs and the State Tax Administration expands the duty-free product list from 45 to 47 categories, adding pet supplies and portable musical instruments while folding smart-home devices such as robot vacuums into an enlarged “small household appliances” class. Micro-drones, digital photo gear and accessories are expressly permitted for the first time.
Equally important, the minimum age for duty-free eligibility rises from 16 to 18, aligning Hainan with international practice and simplifying compliance checks at Haikou Meilan Airport and major cruise and ferry terminals. The policy also opens the scheme to “离岛且离境” (leaving-the-island and China) passengers—foreign tourists or mainland residents who will fly or sail directly abroad—bringing them inside the annual RMB 100,000 (≈ US $13,700) quota and removing the previous one-time purchase cap. Mainland residents who live on the island and record at least one departure in a calendar year may now make unlimited “shop-and-go” pick-ups of 15 high-value categories such as cosmetics and luxury watches.
For global retailers and brands, the wider catalogue creates fresh shelf space in the world’s largest single-site duty-free market and a crucial showroom ahead of the 2026 full opening of the Hainan Free Trade Port. Domestic manufacturers likewise benefit: six lines of Chinese-made goods—including apparel, ceramics, coffee and tea—qualify for export-like VAT and consumption-tax rebates when sold in offshore stores, sharpening local brands’ price competitiveness against imported rivals.
![Hainan Offshore Duty-Free Rules Expanded as New Categories and Age Limit Kick In]()
Corporate mobility managers should note that business travelers transiting Hainan can now source corporate gifts (e.g., premium teas or branded peripherals) duty-free, and expatriates posted to South China can leverage unlimited in-year purchases if they hold island residence permits. However, companies must update internal travel-expense policies: receipts issued under the new scheme list zero VAT, which affects reclaim procedures. To curb gray-market reselling, customs will step up big-data monitoring; organizations arranging incentive trips should brief participants on personal-use rules.
The upgrade is part of Beijing’s wider strategy to redirect outbound spending back onshore and position China as a top inbound tourism destination after COVID-19. In 2024 Hainan’s duty-free sales grew 25 percent year-on-year to RMB 65 billion; provincial officials forecast another double-digit jump with the new rules. Early mall traffic on launch day was brisk, with cdf Haikou International Duty Free City reporting a 40 percent surge in footfall and WeChat Pay transactions dominated by foreign cards, a sign that recent payment-acceptance reforms are also bearing fruit.
Practically, travelers should pre-register passports in the duty-free app, keep boarding-pass barcodes handy for airport pick-up lockers, and expect random customs inspections—particularly for the newly added drone and electronics lines, which are subject to aviation-safety checks.
Hainan’s revamp underscores China’s commitment to high-standard opening-up and offers multinationals a concrete, immediate lever to enhance employee travel experience while trimming T&E costs.
Equally important, the minimum age for duty-free eligibility rises from 16 to 18, aligning Hainan with international practice and simplifying compliance checks at Haikou Meilan Airport and major cruise and ferry terminals. The policy also opens the scheme to “离岛且离境” (leaving-the-island and China) passengers—foreign tourists or mainland residents who will fly or sail directly abroad—bringing them inside the annual RMB 100,000 (≈ US $13,700) quota and removing the previous one-time purchase cap. Mainland residents who live on the island and record at least one departure in a calendar year may now make unlimited “shop-and-go” pick-ups of 15 high-value categories such as cosmetics and luxury watches.
For global retailers and brands, the wider catalogue creates fresh shelf space in the world’s largest single-site duty-free market and a crucial showroom ahead of the 2026 full opening of the Hainan Free Trade Port. Domestic manufacturers likewise benefit: six lines of Chinese-made goods—including apparel, ceramics, coffee and tea—qualify for export-like VAT and consumption-tax rebates when sold in offshore stores, sharpening local brands’ price competitiveness against imported rivals.
Corporate mobility managers should note that business travelers transiting Hainan can now source corporate gifts (e.g., premium teas or branded peripherals) duty-free, and expatriates posted to South China can leverage unlimited in-year purchases if they hold island residence permits. However, companies must update internal travel-expense policies: receipts issued under the new scheme list zero VAT, which affects reclaim procedures. To curb gray-market reselling, customs will step up big-data monitoring; organizations arranging incentive trips should brief participants on personal-use rules.
The upgrade is part of Beijing’s wider strategy to redirect outbound spending back onshore and position China as a top inbound tourism destination after COVID-19. In 2024 Hainan’s duty-free sales grew 25 percent year-on-year to RMB 65 billion; provincial officials forecast another double-digit jump with the new rules. Early mall traffic on launch day was brisk, with cdf Haikou International Duty Free City reporting a 40 percent surge in footfall and WeChat Pay transactions dominated by foreign cards, a sign that recent payment-acceptance reforms are also bearing fruit.
Practically, travelers should pre-register passports in the duty-free app, keep boarding-pass barcodes handy for airport pick-up lockers, and expect random customs inspections—particularly for the newly added drone and electronics lines, which are subject to aviation-safety checks.
Hainan’s revamp underscores China’s commitment to high-standard opening-up and offers multinationals a concrete, immediate lever to enhance employee travel experience while trimming T&E costs.
