CHINA. In a major boost for travel retailer CNSC, the General Administration of Customs of China (GACC) has issued a new policy allowing Chinese travellers who have returned from abroad between 1 August 2019 and 1 June 2020 to buy duty free at CNSC downtown stores until 31 December 2020.
“China’s duty free industry is receiving unprecedented policy support, and this is the golden period of development, especially for the downtown duty free sector. CNSC will grasp this opportunity to seek major breakthroughs.”
Shoppers have to be at least 16 years of age and their purchases must fall within existing allowance limits. They must also display their passports and travel details when shopping in the CNSC (China National Service Corporation for Chinese Personnel Working Abroad) stores.
“This is a fillip to the market,” a CNSC spokesperson told The Moodie Davitt Report. “At the same time, it also directly reflects the government’s attitude in terms of supporting the development of downtown duty free stores.”
The new policy is one of several introduced recently by the Chinese government, which is particularly supportive of the country’s duty free industry. The Beijing authorities have released multiple new measures since 1 March, including a wide-ranging programme to improve the current downtown duty free shopping policy and develop a wider network of downtown stores with Chinese characteristics. “This brings forth a new opportunity to China’s downtown duty free industry with CNSC as the representative,” the spokesperson said.
CNSC also noted the recent issuing of a downtown duty free licence to Beijing department store retailer Wangfujing Group; the announced tripling of the annual offshore duty free allowance in Hainan from RMB30,000 (US$4,215 at current exchange rate) to RMB100,000 (US$14,050); and the opening up of Hainan’s offshore duty free to new local and international business entities will appear in Hainan.
“We can see the central government’s resolution towards expanding the size of China’s duty free market and increasing the competitiveness of existing duty free operators,” the spokesperson said. “This also lays the foundations for CNSC to further expand channels, including Hainan, and develop more swiftly.
“In a nutshell, China’s duty free industry is receiving unprecedented policy support, and this is the golden period of development, especially for the downtown duty free sector. CNSC will grasp this opportunity to seek major breakthroughs.”
As reported, CNSC plans to open a near 1,800sq m, post-arrivals duty free store in Beijing FUN (北京坊) – an extraordinary two-phased commercial and cultural development just 100 metres away from Tiananmen Square and adjacent to the National Palace Museum, National Grand Theatre, National Museum and other renowned cultural institutions. The Moodie Davitt Report Chairman Martin Moodie will be providing exclusive on location coverage of the opening later this year.
