Preparatory work has begun for operation of duty-free shop in Haikou, capital city of the island province of Hainan in southernmost China, according to local customs house.
The duty-free store in Sanya, a resort city on the island, opened on April 20 as part of a duty exemption program aimed at the island's tourists.
The local customs house in Sanya recorded more than 220,000 items of duty-free commodities sold between April 20 to June 7, with a daily sales volume of some 4,500 items. Nearly 75,000 tourists departed from the island with such commodities during the period.
The tax exemptions program allows tourists and locals alike to enjoy duty exemptions on certain imported commodities worth no more than 5,000 yuan (765 U.S. dollars) before flying to other destinations in China.
After deducting customs duties, value-added taxes and consumer taxes, the duty-free store's products are usually 10 to 35 percent less expensive than in other stores.



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