New-type duty-free stores a hit in Hainan

Much to her surprise, Wang Min of Haikou, Hainan province, completed her first tax-free grocery run on Wednesday in just minutes. After presenting her ID card to verify her annual tax-free quota at the counter, she simply scanned a payment code and finished the checkout process in a jiff.

The biggest difference — and a major draw — was the substantial "discount". Thanks to a newly launched preferential tax-free policy at Hainan Free Trade Port, Wang bought two imported durians at a price roughly 30 percent lower than regular market rates.

"It's smooth, and it's a great deal," said Wang as she shopped around a designated area in Wanghao Supermarket in Longfor Paradise Walk, a shopping mall in Haikou. And she was not alone — shoppers who have visited such new-type duty-free stores expressed the same enthusiasm as Wang did.

As a key move to boost the FTP, five daily consumer goods duty-free shops were opened on Wednesday, offering various imported goods for personal use within the FTP.

Eligible individuals, including Chinese citizens with a Hainan ID, residence permit or local social security card — as well as foreign nationals with valid local residence permits — are granted an annual duty-free allowance of 10,000 yuan ($1,410), with no limit on the number of transactions, in these stores.

The allowance covers purchases of selected foods, beverages, household goods, and maternal and infant items from approved stores, exempting them from import tariffs, value-added taxes and consumption taxes.

Wanghao Supermarket is among the first batch, and has become a popular shopping destination. On Wednesday — its first day of operations — long lines formed before the store opened, with locals brimming with excitement to be among the first to enjoy the new exclusive benefits.

Imported fruit is a major draw. Malaysian durians, also highlighted when the island-wide special customs operations were launched on Dec 18, were again a consumer favorite due to the sharp price drop.

"This durian might cost over 300 yuan in a regular market. Using the duty-free quota, it's about 20 yuan cheaper per 500 grams," said a shopper surnamed Lin, who planned to buy two for Spring Festival feasts.

The store also attracts foreign customers. Karnail Singh, an Indian national working in Haikou's catering industry, used his residence permit to buy a box of butter cookies imported from Malaysia.

"The process was very clear, almost like shopping in a regular supermarket, just with an extra ID check at payment," Singh said.

Liu Chunyin, general manager of Wanghao Supermarket, said initial offerings included over 50,000 items across 40 categories, from biscuits and coffee to diapers and detergent. Prices average about 20 percent lower than taxed goods.

"We aim to eventually cover all 202 product categories on the zero-tariff list," Liu said.

Easy access has been applauded by local shoppers. When checking out, locals merely need to present their physical ID cards before proceeding to pay with their smartphones — taking only about two minutes. Electronic IDs are not yet accepted.

Under the newly effective regulations, the preferential policies are exclusively designed for local residents, and product resales are strictly prohibited. Xiong Wen, deputy director of Yecheng Customs under Haikou Customs, said authorities have implemented routine inspections to ensure full policy compliance across the shopping venues.

Referring to the approaching Spring Festival, Zhu Yuanjiao, head of user operations at Haikou's Longfor Paradise Walk, said the mall has prepared directional signs and policy explanations to facilitate shopping during the initial opening period.