Second Duty-Free Store On Mainland Increases Access To Tariff-Free Shopping
High tariffs on luxury goods in China have frequently contributed to a relatively low percentage of in-country purchases, but an increased presence of duty-free stores in major cities may start to change this number. According to a recent article by Moodie Report, a new 7,000 square meter duty-free shopping complex is slated to open in downtown Shanghai this summer, which will make Shanghai home to mainland China’s second tax-free district after a similar opening in Hainan.
The new 7,000-square-meter shopping center, run by Shanghai C.O.C Duty Free, will feature tariff-free, VAT-free and consumption tax-free goods with guarantees of the products’ authenticity.
Shanghai C.O.C was able to gain this special status in a downtown area because it is not a private company, but rather a subsidiary of the state-owned Hong Kong China Travel Service (HKCTS). In addition, restrictions on who can buy will make the store similar to those in airports, since mainland Chinese shoppers will only be allowed to make a purchase if they have traveled abroad within the past six months.
This is not the only duty-free shopping center set to be built in the near future. State-owned company China Duty Free Group has also been approved to open stores in Shanghai in Beijing in the coming years.