Q: What is the significance of this policy?

( chinadaily.com.cn )

Updated: 2011-05-29

A: As China's largest special economic zone and a unique tropical island province, Hainan is playing a key role in the development of the region. In order to promote the economic and social development of Hainan, the State Council has stipulated an important strategic plan for construction of the internationalized tourism in Hainan Island, and formulated a series of policies and measures.

To implement Opinions for Promoting the Construction of Internationalized Tourism Island in Hainan ([2009] 44) released by the State Council, develop modern services industry related to the tourism and construct Hainan to an internationalized shopping center and tourism resort full of international competitiveness, the Ministry of Finance developed the pilot implementation plan of the offshore duty-free shopping policy in Hainan Island after consultation with the Ministry of Commerce, the General Administration of the Customs, and the State Administration of Taxation, with reference to the overseas mature experience.

The implementation of the offshore duty-free pilot policy will be conducive to improve Hainan’s tourism environment, expand the tourist shopping scale, attract more tourists and then stimulate per capita consumption growth, and push forward the modern service industry growth.

Meanwhile, it will also contribute to Hainan's ecological resources, laying strong support for Hainan's green and sustainable development, promoting the internationalization of Hainan tourism factors, and upgrading Hainan’s international competitiveness in tourism.

----by officials from the Customs Division of Ministry of Finance