Guide Overseas Consumption To Return To Set Up A High Threshold For Duty-Free Shops

With the driving force of China's economic development pforming from investment to consumption, the state has promulgated a series of policies to support the upgrading of consumption structure.

As an important measure to promote consumption upgrading, the State encourages more

Shops, tax-free varieties and relaxing duty free shopping will all play a positive role in the future development of duty-free shops.

At the same time, the target customers of duty-free shops are not only limited to their own areas, but also extend to the whole city and even the whole country.

Therefore, duty-free shops can not be underestimated for the driving effect of the passenger flow in the business circle.

This year's national government report on the two sessions pointed out that we should reduce import tariffs on some consumer products and set up duty-free shops, hoping to provide more choices for domestic consumers and keep as much consumption as possible in China.

With the driving force of China's economic development pforming from investment to consumption, the state has promulgated a series of policies to support the upgrading of consumption structure.

As an important measure to promote consumption upgrading, the State encourages more duty-free shops, expanded tax-free varieties and relaxed tax-free shopping, all of which will play a positive role in the future development of duty-free shops.

At the same time, the target customers of duty-free shops are not only limited to their own areas, but also extend to the whole city and even the whole country.

Therefore, duty-free shops can not be underestimated for the driving effect of the passenger flow in the business circle.

Expand total volume and guide overseas consumption reflux

In 2015, Chinese tourists spent about 1 trillion and 200 billion yuan abroad, equivalent to about 4% of the total retail sales of consumer goods in China.

According to the statistics of the National Tourism Administration, the number of outbound travellers in China reached 120 million people (including Hong Kong and Macao) in 2015, and tourism consumption was 104 billion 500 million dollars, up 12% and 16.7% respectively over the same period last year.

According to other statistics, the per capita consumption of Chinese tourists ranked first in the world in 2014, 3 to 5 times the world average.

In 2016, the national government's work report on the two sessions pointed out that we should reduce the import tariffs on some consumer products and set up duty-free shops, hoping to provide more choices for domestic consumers and keep as much consumption as possible in China.

It is understood that since 2015, the state has promulgated a series of policies to promote the return of overseas consumption.

But according to the Ministry of commerce data, in 2015, Chinese tourists spent about 1 trillion and 200 billion yuan overseas, equivalent to about 4% of the total retail sales of social consumer goods in China.

In fact, most port duty-free shops are concentrated in the exit link, and there are few duty-free shops, mainly distributed in Beijing and Shanghai, and have few varieties.

To this end, in February this year, the Ministry of finance, the Ministry of Commerce, the General Administration of customs, the State Administration of Taxation and the National Tourism Administration issued a notice, and decided to set up and restore duty free shops at the port level from February 18, 2016 onwards, reasonably expand the tax-free varieties and increase a certain amount of duty-free shopping.

The State Council has agreed to set up a duty free shop at 19 ports in Guangzhou Baiyun, Hangzhou Xiaoshan, Chengdu Shuangliu, Qingdao Liuting and Heihe ports.

Zhao Ping, a researcher at the China Council for the promotion of trade (CCPIT), has said that after the implementation of the policy, there will be a significant effect in attracting consumption reflux.

She believes that the number of imported duty-free shops is also necessary to constantly sum up experience after the current exploration stage, further expand the total volume, and also need to determine the final size of duty-free shops based on the basic situation and purchasing power of the entry and exit ports at the local ports.

However, some industry experts have suggested that compared with foreign countries, duty-free shops

The price advantage is not obvious.

In the future, duty-free shops need to accelerate their pformation.

From February 1st this year, the third adjustment of Hainan offshore duty-free policy was cancelled.

Frequency limit.

At the same time, in the existing two entity duty-free shops, Sanya Haitang Bay duty free shop and the Haikou Meilan Airport duty-free shop set up an online sales window, Islands passengers can duty-free shopping through the online sales window, pick up goods at the airport quarantine area and carry Islands with identity cards and boarding passes.

Set up a duty free shop with a high threshold.

According to the Customs Law, the duty free shops should be in compliance with the customs supervision requirements and be approved by the customs and go through the registration procedures.

Anyway, duty-free shops are still attractive to consumers.

It is understood that at present, domestic duty free shops include port entry duty free shops and offshore duty-free policy duty free shops in Hainan Island.

The entry duty free shops at the port are the isolated areas at the airport, land and waterway ports which are open to the outside world, mainly for the sale of high-grade cosmetics and luxury goods. The service targets are ordinary citizens returned from abroad. Tax-free taxes include customs duties, import value-added tax and consumption tax. The total amount of tax-free shopping abroad is not more than 8000 yuan.

Tax exemption in Islands refers to the restricted import tax free shopping for passengers flying Islands (excluding departure). The passengers should be paid in the duty-free shops with the offshore duty-free policy system, and a preferential tax policy is to pick up Islands in the airport isolation area.

At present, the State Council has set up a duty free shop in Haikou and Sanya, and the duty-free shopping quota is 8000 yuan in Islands.

According to the China Commercial Daily reporter, the threshold for opening duty-free shops can be described as "quite high". According to the Customs Law, the duty-free shops should comply with the customs supervision requirements and go through the registration procedures after customs approval.

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The customs supervision of duty-free shops and duty-free goods is clear. The establishment of duty-free shops should be submitted to the General Administration of Customs for a written application and an independent legal person qualification; a duty free sales place and a tax free goods supervision warehouse that meets the requirements of customs supervision; a computerized management system that meets the requirements of customs supervision can provide the customs with the information of warehousing, sales and so on; with a certain scale of operation, where the application for establishing port duty free shops, the port duty-free shops at the ports where the duty-free shops are located should have no fewer than 50 thousand persons.

Generally speaking, the entry duty free shops at ports are determined by the airport or other tenderers through the tender.

If there are no special conditions for bidding, such as the small volume of entry and exit, the limited opening area, etc., an application can be submitted and submitted to the Ministry of Finance for approval, and the main body of operation shall be determined in accordance with the competitive negotiations stipulated in the government procurement law of the People's Republic of China.

It is easy to see that there are strict restrictions on the introduction of duty-free shops to the locations and locations. Therefore, the enterprises in the domestic tax exempt industry are mainly composed of "national teams", with few social capital entering.

Duty-free shops will enter the shopping mall.

The introduction of duty-free shops into shopping centres plays an important role in attracting targeted consumers.

In addition to the traditional business models, duty-free shops have also entered shopping centers and other urban areas.

Stu Vin Zon, chairman and President of Ying Shi China commercial investment holding group, believes that the introduction of the new national policy plays a vital role in the development of new industries. We need to seize the policy oriented wind vane to add new vitality to the shopping center.

The duty free shop of Yueda 889 shopping center in Shanghai is the first duty free shop in the shopping center in the country. It introduces the "buyer system" mode to provide consumers with cost-effective clothing, footwear and life products.

According to the report, unlike the port and Islands tax-free fast shopping mode, in Yueda 889 duty-free shops in Shanghai, consumers will no longer be restricted by shopping hours and baggage specifications, and can fully stay in the store.

It not only satisfies and facilitates consumers' demand for goods purchase, but also eliminates the restriction of consumers' safety inspection after shopping abroad.

The higher quality and relatively low price of duty-free goods will become an important way for shopping centers to gather high-quality middle class consumers. It is also one of the important means for shopping centers to manifest differences in homogenization competition.

In addition to duty-free shops, bonded stores can also be opened in shopping centers.

Unlike the specific objects targeted by the tax-free shops and the direct way of reducing taxes and fees, the bonded shop is aimed at all consumers.

And consumers only pay postal tax or goods tax after shopping.

It is understood that the bonded stores provide a regular sales channel for imported goods, so that the shopping center's ability to gather customers is significantly enhanced.

Take Yantai Joy City as an example, the target consumer of bonded stores has accounted for 20% to 30% of the total passenger flow.

Moreover, all goods sold in the bonded store are specially supervised by customs and pported directly from the bonded port area to the store.

It not only guarantees the quality of goods, but also ensures the sales price is consistent with the bonded port area.

However, the report also suggested that the emergence of duty-free shops and bonded stores will have a certain impact on imported products supermarkets and shops selling imported products.

The advantages of the purchase channel make the goods of duty-free shops and bonded stores more competitive in price, and the price of imported goods is about 10% to 30% cheaper than that of the market.

It is obvious that consumers prefer to buy products with higher cost performance.

Ying Shi Group Research Center believes that with the improvement of living standards, the traditional shopping mode has been unable to meet the growing demand of consumers.

Consumers do not want to go abroad to buy overseas goods at a lower price.

Following this trend, the future development of duty-free shops will also be a blue ocean.

The introduction of duty-free shops into shopping centres will play a role in attracting the target consumers. Such innovative formats will enhance the turnover of shopping centers and will become a new trend in the future.