Customers shop at the Haikou International Duty Free City in Haikou, South China’s Hainan Province, on December 19, 2025. Photo: VCG

China’s General Administration of Customs announced on Wednesday that duty-free shopping in South China’s Hainan Free Trade Port surged after the island-wide special customs operations were implemented on December 18, 2025.  
 
According to the customs data, between December 1, 2025 and January 10, 2026 there were 585,000 recorded instances of regulated off-island duty-free purchases, valued at 38.9 billion yuan ($5.57 billion). The number of transactions rose 32.4 percent year-on-year with sales volume up by 49.6 percent.
 
The figures equate to an average of about 24,000 duty-free shoppers per day and roughly 160 million yuan in daily purchases, both higher than levels recorded before the Hainan customs seal-off, the customs administration said.
 
Customs officials attributed the rise to the implementation of the Hainan Free Trade Port’s special policy and customs operation arrangements, which accelerated duty-free spending on the island.
 
The data underline Hainan’s growing role as a domestic and global duty-free retail hub. Analysts have pointed to the island’s tax and trade policy adjustments, expanded product offerings, and convenient transportation links as drivers of strong duty-free sales.
 
"The implementation of island-wide special customs operations marks a crucial milestone in Hainan's development as a global tourism and consumption destination," said Zhang Chunsheng, secretary-general of the Hainan Provincial Cross-border E-commerce Association. "We expect this positive momentum to continue throughout 2026."
 
Hainan's offshore duty-free policy is a tax incentive that allows eligible travelers and residents to buy goods exempt from import duties, value-added tax and consumption tax when departing the island.
 
Currently, Hainan operates 11 duty-free stores across major cities including Haikou, Sanya, and Wanning. Travelers visiting the island can enjoy a duty-free shopping quota of 100,000 yuan per person each year, according to the policy.
 
Major duty-free shops rolled out promotions to spur spending, including discounts and vouchers, and many offered entertainment events and free shuttle buses to attract consumers, according to Xinhua News Agency reports.
 
During the three-day New Year holiday period, the island welcomed 2.17 million tourist visits from January 1 to January 3, marking a 25.2 percent year-on-year increase, according to provincial data. Border entries and exits rose 23.5 percent. Duty-free shopping has emerged as a major driver, with sales at offshore duty-free stores soaring by 128.9 percent to reach 712 million yuan in value. The number of shoppers climbed 60.6 percent to 83,500, customs figures showed.
 
 
Global Times