Hainan expands scope of duty-free policy

BEIJING - Tourists visiting China's southernmost province of Hainan will soon be able to buy more kinds of duty-free items with a higher purchase limit, under measures announced on Wednesday by the Ministry of Finance (MOF).

Under a policy which will come into effect this November, non-residents leaving the island can make duty-free purchases twice a year if they spend no more than 8,000 yuan ($1,280) each time, up from the current 5,000-yuan cap, according to a statement on the MOF website.

More kinds of products, such as beauty and health care goods, tableware, kitchenware and toys, will be included in the tax-rebate category, read the statement.

The updated scheme will also lower the age threshold for duty-free purchasing from 18 years old to 16 years old.

In April 2011, to boost local tourism, Hainan piloted a duty-free policy that allows visitors to have tax rebates with a purchase limit of 5,000 yuan.

Hainan has opened two duty-free stores in the city of Sanya and at the Meilan Airport of Haikou, the province's two largest cities. As of Oct 20, total sales revenue at the two shops had hit 2.67 billion yuan, customs data showed.