Hainan's duty-free market kicked off 2026 with robust momentum, with January sales reaching 4.53 billion yuan (650 million U.S. dollars), as the southern Chinese island province launched its new free trade port customs system and expanded offshore duty-free policies.
Following the rollout of a series of new policies and the official start of island-wide special customs operations, Hainan's offshore duty-free sector got off to a good start for the year.
According to Haikou Customs, duty-free sales in January surged by 44.8 percent year on year. The province recorded 560,000 individual purchases, amounting to 3.367 million items sold, reflecting increases of 21 percent and 14 percent, respectively, over the same period last year.
Spending came from both tourists and local residents. Departing travelers contributed 18.316 million yuan (2.64 million U.S. dollars), while 14.389 million yuan (2.07 million U.S. dollars) came from Hainan locals benefiting from the "buy and take" policy, a reform that allows island residents to collect duty-free goods immediately after purchase.
To accelerate the flow of duty-free goods, Haikou Customs implemented measures such as bonded-to-duty-free transfers, centralized and automated document reviews, and remote monitoring to ensure timely restocking of popular items. A joint rapid-response mechanism among customs authorities, duty-free retailers, public service platforms, and transportation companies has also been established to improve the shopping experience for tourists.
Meanwhile, enforcement efforts have ramped up to prevent smuggling and illegal reselling, with authorities employing a combination of risk analysis, on-site inspections, and coordinated law enforcement actions to crack down on misuse of the duty-free system.
Hainan duty-free sales hit 4.5 billion yuan in January
