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Original Title: Outlying Islands Tax Exemption or Hainan’s New Unfinished “Consumer History” Policy
Our reporter Pei Yu reports from Beijing
The consumption boom of raising the outlying islands duty-free quota to 100,000 yuan per person does not appear to be the complete story of the Hainan Free Trade Port. On December 24, the collective increase in Hainan’s tax-free equity concept in the capital market seemed to convey hope that the market hoped that Hainan’s outlying islands tax-free policy could make further progress. CDFG even set an all-time high for its share price.
The “China Business Daily” reporter learned that, including the positive list, the outer islands of Hainan will have new tax exemption policies. According to the Xinhua news agency, on December 23, 2020, Han Zheng, a member of the Standing Committee of the Central Committee Political Bureau and deputy prime minister of the State Council, chaired a plenary meeting of the Hainan Leading Group for the comprehensive deepening of the reform and opening. Vice Premier Hu Chunhua of the State Council and Director He Lifeng of the National Development and Reform Commission attended the meeting. At the meeting, Han Zheng spoke about the implementation work. Han Zheng stressed that it is necessary to accelerate the introduction of a new duty-free shopping policy in the outer islands of Hainan and further promote “zero tariffs” for some imported products.
The rise in duty-free consumption has prompted innovation in customs supervision to better meet supply needs for popular consumer products. In this regard, customs has begun to adopt a system of random inspection and release of fragrant imported goods entering the Hainan free trade port, which has greatly simplified the import entry procedures, and fragrant products are the force main in the increase in duty-free consumption in the outer islands.
There are still new policies
Since the announcement of the “Master Plan for the Construction of the Free Trade Port of Hainan”, the most realistic and imaginative stories of Hainan have been duty free in the outer islands. After the boom in duty-free shopping, the story of the duty-free outlying islands of the free-trade port of Hainan seems not to have ended, but there is more room for imagination.
This imaginary space is the “new policy” for outlying islands tax exemption. Two state-owned enterprises engaged in the duty-free goods business in Hainan told reporters that from their personal point of view, with the further opening of the Hainan Free Trade Port, there should be a wider range and more product categories to duty-free consumption in the outer islands. , “Everything is a matter of time and intensity.”
The meeting held on December 23 partially confirmed the judgment of the two mentioned persons.
“The conference in Hainan was organized by senior officials at the central level. We have not seen it several times in so many years. It shows that the construction of the Hainan Free Trade Port is a holistic and strategic endeavor. This situation has generated politics and openness. It will be even more exciting. ”The aforementioned state-owned company engaged in tax-free business in Hainan said.
What they refer to is “most anticipated”, which is the biggest advance of the “zero tariff”. At the December 23 meeting, Han Zheng stressed that it is necessary to accelerate the introduction of a new policy for duty-free shopping in the outer islands of Hainan, further promote “zero tariffs” for some imported goods, and effectively promote the trade and investment liberalization and facilitation. This is the first time Chinese officials have claimed that duty-free shopping in the outer islands “has new policies” and zero tariffs “should be further promoted” after the duty-free quota for the outer islands increased to 100,000. yuan per person.
“Hainan has been preparing for this job and has never stopped,” the aforementioned state company source said.
What is the positive list?
Regarding the new imagination of Hainan’s tax-free history, most of them focus on the issue of the positive tax-free list, which is a relatively consistent view of those who have been involved in tax-free businesses. for a long time.
Currently, the outer islands of Hainan use a positive list system. There are a total of 45 products on the positive list of outer islands of Hainan Free Trade Port. In fact, this is the result of the “expansion” of the positive list of outer islands of the Hainan Free Trade Port. “It turned out to be 38 types, but then 7 more were added, including more popular consumer electronics such as cell phones.” A person who has been in the local tax-free business in Hainan for many years told reporters.
The journalist learned that the Hainan Free Trade Port currently implements a “dynamic management” system for the “positive list” related to the outlying islands tax exemption. The so-called “dynamic management” consists of adjusting the positive list according to the strategic needs of the Hainan Free Trade Port construction, market feedback, changes in the market environment and the macroeconomic situation. The people mentioned above believe that from a trend point of view, the types of goods on the positive list of duty-free outer islands “should be more and more.”
At the same time, Hainan Province is still formulating a “positive list” of duty-free products that local residents can purchase, which will allow local Hainan residents to purchase duty-free products without leaving Hainan Island. At present, local Hainan residents can purchase duty-free goods only if they have airline tickets and ferry tickets to leave Hainan.
A person from a central company reminded journalists that the so-called “new tax exemption policy for the outer islands” should not only be interpreted as a positive list of “one direction”, but also as comprehensive management methods to lend to. Attention. “For example, in the New Deal implemented after July 1, only the amount of one-time purchase of cosmetics, mobile phones and alcoholic products will be limited, and the rest will be launched within the quota of 100,000 yuan per person. This is in It also adds ‘fuel’ to this round of tax-free consumption boom. “
Therefore, he believes that in the understanding and anticipation of the “new policy”, in addition to the types of goods, attention should also be paid to the adjustment of other restrictive management methods for purchases.
Innovative regulatory methods
The expectation of the new tax-free purchasing policy in the outer islands of Hainan leads directly to the performance of the capital market. On December 24, the duty-free concept sector generally increased. China Duty Free, Hainan’s largest duty-free operating company, once hit a record in intraday value. At its peak, its market value had reached 500 billion yuan. Last year, the price of its shares rose 180%.
“One of CDFG’s main tax-free sales categories is fragrance, which is the most popular product category,” a person close to CDF told reporters. The so-called fragrance is cosmetic perfumery. Since the outlying island duty-free quota of Hainan Free Trade Port increased to 100,000 yuan per person, Xianghua has been a popular product.
The reporter’s information shows that from September to November this year, customs monitored a total of 5.26 billion yuan in duty-free cosmetic purchases (including perfumes) in the outer islands, an increase of 150% and 167.1 % year-on-year respectively, and sales accounted for 51.9% of total tax-free sales in the outer islands during the same period. “Cosmetics have sold more than 10 million pieces. Therefore, the only purchase limit is cosmetics and mobile phones. If there is no restriction, the supply will be a problem,” the aforementioned person close told reporters. to the exemption.
Because of this, regulatory authorities are solving this problem in a pragmatic way. The reporter learned that the Haikou Customs has started to adjust and innovate the customs clearance system for the import of fragrance products and has adopted the customs clearance management method of “special conditional release of imported cosmetics free of outlying islands taxes “.
“From a customs clearance perspective, the specific conditional release is a special exception to normal customs clearance procedures.” The aforementioned state enterprise explained that specifically it is about sampling batches of imported cosmetics, which means that customs must conduct experiments Laboratory-tested outlying islands duty-free cosmetics will be delivered after sampling, which will improve greatly the efficiency and speed of customs clearance. “This is achieved only when a large amount of data information, corporate credit information, etc. is mastered and used well.”
Reporters have confirmed from multiple sources that this method of customs clearance has yet to be implemented across the country, except for the Hainan Free Trade Port. As of December 10, 29 cosmetic batches with a value of 400,600 pieces and a value of 124 million yuan have enjoyed this new specific conditional release policy.
(Editor: Meng Qingwei review: Yan Jingning)
