Two foreign consumers check merchandise at a duty-free shop in Guangzhou, South China's Guangdong Province, on August 26, 2025. In the first half of this year, the number of duty-free rebate stores in China surpassed 7,200, with the number of tax refund recipients up 186 percent year-on-year, while sales of tax-refunded goods and total refunds nearly doubled, according to official data. Photo: VCG

Six Chinese government departments, including the Ministry of Commerce (MOFCOM), the Ministry of Finance, and the State Taxation Administration, jointly issued a notice on Monday to further optimize departure tax refund measures and expand inbound consumption, a move that will further streamline the tax refund process for foreign travelers in China.

The joint notice, an upgrade on last year's policy, reflects China's pragmatic efforts to further open up and promote international consumption, a Chinese analyst said, noting that it not only makes refunds more convenient for foreign travelers but also injects new vitality into the country's international consumption market.

This new measure was rolled out amid a strong recovery in cross-border travel and rising foreign spending in China. The previous optimization of departure tax refund measures, the 1.0-version policy introduced last April, has already shown clear results and continued to boost inbound consumption.

For example, last year, the number of foreign travelers using departure tax refunds nationwide rose by 305 percent year-on-year, reflecting a rapid release of consumption vitality, the Global Times learned from the MOFCOM.

The 2.0-version policy released on Monday builds on last year's version, introducing eight practical and actionable measures to make tax refunds for foreign travelers more convenient, time-saving, and hassle-free.

Specifically, more eligible stores are encouraged to register as tax refund outlets, with their locations scientifically optimized. Local authorities will also be supported in selecting key commercial areas, scenic spots, markets, and ports frequented by foreign travelers, aiming to achieve near-full coverage of tax refund stores in these priority locations, according to the notice.

In addition, a system of random spot checks will be implemented. Starting on July 1, a certain proportion of tax refund applications with sales of less than 10,000 yuan ($1,468.45) will be randomly selected for physical verification. Applications with sales of 10,000 yuan or more will continue to undergo individual physical verification, said the notice.

The "instant tax refund upon purchase" service will be further optimized. Efforts will be made to enable cross-location recognition, allowing travelers using this service to complete departure tax refund procedures at different ports. The departure period for all locations under the "instant tax refund upon purchase" system will also be uniformly extended to 28 days.

Other measures include implementing fully paperless tax refund procedures and creating tax refund service platforms at major exhibitions, such as setting up dedicated departure tax refund service zones at major events including the China International Import Expo and the China International Consumer Products Expo.

The joint notice represents an upgrade on last year's policy, and reflects China's pragmatic efforts to facilitate opening-up and international consumption, Li Jun, a research fellow at the Chinese Academy of International Trade and Economic Cooperation under the MOFCOM, told the Global Times on Monday.

By expanding the coverage of tax refund stores, implementing paperless refunds, optimizing "instant tax refund upon purchase" services, and establishing tax refund platforms at exhibitions, the policy not only makes refunds more convenient for foreign travelers but also injects new vitality into China's international consumption market, Li said.

The new policy optimization demonstrates China's ongoing efforts in institutional innovation and service improvement, enhancing the attractiveness of domestic consumption, Li said, noting that "the move highlights China's strategic vision in promoting cross-border consumption convenience, while underscoring the country's determination to advance high-level openness and build an international consumption center."

China's departure tax refund policy has continued to deliver results. In 2025, tax refund sales doubled year-on-year, while the number of travelers completing refunds tripled. The number of tax refund stores has exceeded 13,000, about four times the total at the end of 2024, according to the MOFCOM.

Another data point from the State Taxation Administration in April shows that since the implementation of the refund-upon-purchase model for departure tax refunds, the number of people enjoying the refund policy rose by 12.96 times year-on-year, while total tax refunds and tax refund sales both expanded by 9.35 times.

In 2026, "China Travel" has become a trending topic on international social media and in travel circles, reflecting strong enthusiasm among foreign tourists to visit the country. Foreign nationals made 21.33 million border crossings in the first quarter, up 22.3 percent year-on-year. Visa-free entries accounted for 77.9 percent of the total made by foreign nationals, according to the National Immigration Administration.

Commenting on the departure tax refunds, Hu Qimu, a professor at the Maritime Silk Road Institute of Huaqiao University, told the Global Times on Monday that the measures are not only a tool to stimulate consumption, but also an important window for showcasing Chinese products and services.

Hu said that inbound consumption serves as an important bridge linking the domestic and international dual-circulation markets. 

"China's newly introduced measures on departure tax refunds, through systematic and targeted reforms, aim to address service shortcomings, reduce consumption costs, and improve the shopping experience," said Hu, noting that these efforts not only align with the trend of upgrading inbound consumption, but also support China's broader strategy of expanding domestic demand and advancing high-level opening-up.