Zhengzhou's first downtown duty-free store set to open, marking a milestone for Henan

On August 28, Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Administration of Taxation jointly issued the "Notice on Improving the Policy for In-city Duty-free Shops", indicating that  these stores will be regulated according to the "Interim Measures for the Administration of In-city Duty-Free Shops".

8月28日，一份由财政部、商务部、文化和旅游部、海关总署、税务总局联合印发的《关于完善市内免税店政策的通知》对外发布，宣布将依据《市内免税店管理暂行办法》对市内免税店进行规范管理。

The Notice explicitly states that 13 existing  duty-free shops, including those in Beijing, Shanghai, and Zhengzhou, shall be transformed into downtown duty-free shops within 3 months from October 1, 2024 and shall commence operations after passing the customs inspection.

这份最新通知中，明确提出现有北京、上海、郑州等13家外汇商品免税店，自2024年10月1日起，3个月内转型为市内免税店，经海关验收合格后开始营业。

This transition from foreign exchange goods duty-free shops to downtown duty-free stores is more than a simple renaming. It represents an improvement in consumption patterns of "global buying and selling" , signaling a greater openness to trade.

从外汇商品免税店到市内免税店，不仅仅是名字的改变，更是“买卖全球”的消费升级和开放度的体现。

What is a downtown duty-free shop?

It refers to a shop, approved by the State Council, located in a city, that sells duty-free goods to travelers about to leave the country.  Target customers include passengers who will depart within 60 days (including Chinese nationals) via air or international cruise. After shopping, travelers must collect their duty-free purchases at the pickup points in the departure isolation area of the port and carry them out of the country in one trip.

何为市内免税店？是指经国务院批准，按规定设立在市内，向即将出境的旅客销售免税商品的商店。销售对象为即将于60日内搭乘航空运输工具或国际邮轮出境的旅客（包括但不限于中国籍旅客）。旅客在市内免税店购物后，应当在设立于口岸出境隔离区内的免税商品提货点提取所购免税商品，并一次性携带出境。

In Zhengzhou, the concept of purchasing duty-free goods is not new. Since December 2019,  the city has hosted Henan's only Foreign Exchange Goods Duty-Free Shop, located in the commercial area near Zhengzhou East Railway Station.

在郑州，购买免税商品已非新鲜事儿。早在2019年12月，作为河南省内唯一的外汇商品免税店，郑州外汇商品免税店（国药中服免税郑州店）落户郑州高铁东站商圈。

Zhengzhou Duty-Free shop is located within the Greenland Sky City, part of the Zhengzhou area in the Henan Pilot Free Trade Zone, offering a variety of high-end skincare products, cosmetics,  watches, shoes, bags, and accessories. On the afternoon of August 28, a staff member explained to  a reporter, "Since opening, the main customers have been Chinese citizens holding passports, who can buy duty-free products up to customs limits within 180 days of entry. With the transition to a downtown duty-free store, shopping rules will change, removing purchase limits on duty-free goods."

8月28日下午，记者来到位于河南自贸试验区郑州片区绿地天空之城的郑州外汇商品免税店，但见丰富多样的各类大牌护肤品、化妆品以及名表、鞋包、配饰等。“开店以来，主要面向持护照入境的中国籍旅客，入境180天内即可凭护照等有效旅行证件在店里一次性购买海关规定的限值限量范围内免税商品。”工作人员称，“转型为市内免税店后，这一购物规则就会发生变化了，购买免税商品也不设购物限额。”

What products can customers expect to find in downtown duty-free stores?

According to the "Interim Measures for the Administration of In-city Duty-Free Shops", these stores will offer consumer goods such as food, apparel, accessories, footwear, baby care products, jewelry, crafts, electronic devices, beauty products, and alcoholic beverages. Additionally, there is an emphasis on promoting trendy domestic products, which carry a strong Chinese brand identity and contribute to the dissemination of China’s rich cultural heritage.

市内免税店正式到来后，顾客能够买到什么？根据《市内免税店管理暂行办法》，市内免税店主要销售食品、服装服饰、箱包、 鞋帽、母婴用品、首饰和工艺品、电子产品、香化产品、酒等便于携带的消费品；同时鼓励销售国货“潮品”，将具有自主品牌、有助于传播中华优秀传统文化的特色产品纳入经营范围。

Price differences for luxury goods between domestic and international markets drive duty-free consumption abroad. As a key connector between domestic and global markets, the duty-free sector plays a crucial role in bringing consumption back home and energizing market dynamics. Downtown duty-free shops offer tax exemptions on imported items, including tariffs, value-added tax, and consumption tax, while domestic products in these stores are treated as exports, making them eligible for VAT and consumption tax refunds or exemptions.

高端消费品境内外“价差”是导致免税消费外流的主要因素。作为连接国内外消费市场的节点，免税经济是促进消费回流、激发市场活力的重要抓手。市内免税店的进口商品免征关税、进口环节增值税和消费税，国内商品进入市内免税店视同出口，退（免）增值税、消费税。

What implications will the inaugural downtown duty-free shop in Henan bring to the region?

An Xiaoming, Deputy director and researcher at the Institute of Reform and Opening-up and International Economics under the Henan Academy of Social Sciences, foresees that the transformation of foreign exchange goods duty-free shops into downtown duty-free stores will not only spur a significant reversal of outbound consumption but also offer a streamlined duty-free shopping experience for international travelers departing from Zhengzhou. This initiative, paired with the existing 144-hour visa-free transit policy, is expected to boost consumer activity and unlock market potential. 

河南首家市内免税店将带来什么？在省社科院改革开放与国际经济研究所副所长、研究员安晓明看来，外汇商品免税店转型为市内免税店后，不仅有助于促进消费回流，也将结合现行的144小时过境免签政策，为从郑州离境的外籍旅客提供更为便捷高效的免税商品服务，从而进一步点燃城市消费活力、激活市场潜能。

"In recent years, the integration of the 'Four Silk Roads'- air, land, cyberspace, and maritime - has become a hallmark of Zhengzhou's development and modernization as a national central city. With the introduction of downtown duty-free shops, consumers can look forward to a richer and more diverse shopping experience. This addition will further invigorate Zhengzhou's transformation into an international consumption hub, seamlessly combining Chinese heritage, global brands, and modern fashion," says An Xiaoming.

“近些年来，空陆网海‘四条丝绸之路’协同联动，开放发展已成为郑州国家中心城市现代化建设的鲜明特征。有了市内免税店，将为消费者带来更加多元丰富购物体验的同时，进一步为郑州建设兼具‘中华经典、世界品牌、时代时尚’的国际消费中心城市注入新活力新动力。”安晓明说。（记者/王延辉 康亚飞 编译/童林 实习生 周家欣 王宗文 审校/丁岚）