The Chinese Ministries of Finance, Commerce, Culture and Tourism, General Administration of Customs, and State Taxation Administration recently issued a notification to regulate the management of downtown duty-free shops to promote their healthy and orderly development.

The notification will come into effect on Oct 1, 2024.

According to the notification, one downtown duty-free shop will be established in Xi'an, along with seven other cities: Guangzhou, Chengdu, Shenzhen, Tianjin, Wuhan, Changsha, and Fuzhou.

The notification specifies that downtown duty-free shops are intended for passengers departing via air transport or international cruise within 60 days.

Downtown duty-free shops will operate on a pre-purchase in the city and pick-up at the port before departure model. After shopping at a downtown duty-free shop, passengers must pick up their purchased items at the duty-free goods pick-up point in the port's departure area and carry them out of the country in one go.

These shops will mainly sell portable consumer goods and promote the sale of trendy Chinese products. They encourage the inclusion of unique products with independent brands that help promote Chinese traditional culture. The notification also outlines management requirements, such as approval for setting up downtown duty-free shops and determining the operating entities.