Tourists experience surfing in the waters of Houhai Village, in Sanya, South China's Hainan Province on January 17, 2026. Photo: VCG

Offshore duty-free sales in South China's Hainan Province reached 4.53 billion yuan ($652.54 million) in January, up 44.8 percent year on year, data from Haikou customs showed on Thursday. The surge comes as policy dividends continue to unfold following the launch of island-wide special customs operations on December 18, 2025.

Shop visits reached 560,000, up 21 percent year on year, while the number of items purchased hit 3.367 million, an increase of 14.0 percent. Of the total, duty-free shopping by departing travelers amounted to 18.316 million yuan, compared with 14.389 million yuan in purchases by island residents, data showed.

To improve the circulation efficiency of duty-free goods, Haikou customs has rolled out measures to ensure the swift stocking of popular items. It also established a joint rapid-response mechanism involving customs authorities, duty-free enterprises, public service platforms and passenger transport companies to enhance the shopping experience and crack down on smuggling activities, the report noted. 

As the world's largest FTP by area, Hainan's island-wide special customs operations have reported smooth and orderly operations during the first month, as latest data showed the number of newly registered foreign trade enterprises in the island has risen by 5,132.

To further advance the development of the Hainan FTP, China's Ministry of Finance (MOF), General Administration of Customs and the State Taxation Administration jointly issued a notice on Thursday on a "zero-tariff" policy for imported goods consumed by island residents of the Hainan, which took effect on the same day. 

Under the policy, Hainan residents are allowed to purchase certain imported daily-use goods at designated venues under a zero-tariff arrangement. The duty-free quota is set at 10,000 yuan per person per year, with no limit on the number of purchases.

The introduction of the policy will help lower local residents' living costs, meet diversified consumer demand and allow more island residents to benefit from the outcomes of the Hainan FTP development, the MOF noted.

Global Times