Hopes are high that the new duty-free policy for Hainan will improve its ranking as a domestic tourist resort, but how does the scheme work?
 
It’s easy for domestic tourists to avail of Hainan’s new duty-free policy.
 
A seller of duty-free shop said, "When purchasing, shoppers are required to show their proof of identity and details of their departure flight. Then we will give you a bill for picking up the goods."
 
The store will pack up the goods, and deliver them directly to the airport.
 
Then, tourists can pick them up upon their return home.
 
Customs officials say it will be a speedy process and all purchases will be entered onto a database to ensure a smooth operation.
 
Chen Zhifeng, official of Haikou Customs, said, "Because of the system, all information from import to sales can be found at the duty-free shops and customs."
 
The duty-free goods price cap is 5,000 yuan for each trip. Tourists can receive a partial rebate for amounts exceeding that amount.
 
Hainan adopted a tax rebate policy for foreign tourists on January 1st this year. Since foreign tourists account for less than 3 percent of visitors to Hainan, the policy failed to produce the desired effect. Local governments are hoping the expanded preferential policy will attract more Chinese visitors to the province. 
 
 
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