On the 27th, five departments including the Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Administration of Taxation of China announced the "Interim Measures for the Management of Duty Free Shops in Cities" (hereinafter referred to as the "Measures"). The Measures shall come into effect on October 1, 2024. Urban duty-free shops refer to shops approved by the State Council and established in the city according to regulations, selling duty-free goods to passengers who are about to leave the country. Passengers refer to those who hold valid entry and exit documents and are about to depart by air transport or international cruise within 60 days (including but not limited to Chinese nationals). The Measures stipulate that imported goods from duty-free shops within the city are exempt from customs duties, import value-added tax, and consumption tax. Domestic Chinese goods entering duty-free shops within the city are considered as exports and are subject to value-added tax and consumption tax refunds (exemptions). The above-mentioned goods sold in duty-free shops within the city are exempt from domestic value-added tax and consumption tax. The Measures emphasize that there is no shopping limit for passengers to purchase duty-free goods at duty-free shops in the city, but they should comply with the customs regulations that passengers carrying luggage and items into and out of the country should be limited to personal use and reasonable quantities. The duty-free goods purchased by the passenger are considered final personal use and cannot be resold in the domestic Chinese market. The duty-free shops in the city mainly sell portable consumer goods such as food, clothing, bags, shoes and hats, maternal and child products, jewelry and handicrafts, electronic products, fragrance products, alcohol, etc. Franchise operation is implemented for duty-free shops in the city. The five departments also announced that the "Measures" apply to six duty-free shops in Beijing, Shanghai, Qingdao, Dalian, Xiamen, Sanya, and other cities currently operated by China Duty Free (Group) Co., Ltd; In 8 cities including Guangzhou, Chengdu, Shenzhen, Tianjin, Wuhan, Xi'an, Changsha, and Fuzhou, one duty-free shop shall be established in each city, and the Measures shall apply. At the same time, 12 foreign exchange commodity duty-free stores in Beijing, Shanghai, Qingdao, Dalian, Nanjing, Chongqing, Hefei, Nanchang, Kunming, Hangzhou, Zhengzhou, Harbin and other places currently operated by China Overseas Personnel Service Co., Ltd., as well as Harbin foreign exchange commodity duty-free stores now operated by China Travel Assets Management Co., Ltd. in Hong Kong, will be transformed into duty-free stores in the city within three months, and will start operations after being accepted by the customs. The Measures shall apply; Foreign exchange duty-free shops that have not completed their transformation upon expiration will be closed. (New Society)