Duty - free Shops: A New Blue Ocean for Foreign Trade Enterprises

As a seasoned customs professional with 20 years of experience in the foreign trade industry, I have witnessed countless enterprises achieve leapfrog development through duty-free shop operations. Duty-free shops are not only a window for the country's opening-up to the world but also a crucial opportunity for foreign trade enterprises to transform and upgrade. Today, let me guide you through the "clearance secrets" of establishing a duty-free shop.

Legal Basis for the Establishment of Duty - free Shops

According to Article 32 of the Customs Law of the Peoples Republic of China, operating a duty - free shop must meet the customs supervision requirements, be approved by the customs and go through the registration procedures. This seemingly simple clause contains rich regulatory connotations:

• Multiple Amendment Processes: The Customs Law has been amended five times, reflecting the continuous improvement of the countrys supervision of duty - free business
• Supporting Regulations: Decree No. 132 and Decree No. 240 of the General Administration of Customs constitute the specific regulatory framework
• Special Policies in Free Trade Zones: Document Guo Fa 〔2019〕 No. 25 provides facilitation measures for duty - free businesses in free trade zones

Application Conditions: Are You Ready?

To establish a duty-free shop, an enterprise must meet six core requirements, which I summarize as "three hard and three soft conditions":

• mandatory conditions: Independent legal person status, compliant business premises and warehouses, and a standard - compliant IT system
• Soft Requirements: Sufficient business scale (≥50,000 annual entry and exit passengers at the port), a complete enterprise charter and financial system
• Special Reminders: Port duty - free shops must provide the bid winning notice, which is a key material that many enterprises easily overlook

Approval Process: Time is Money

Based on my practical experience, the approval process for duty - free shops can be simplified into three steps:

1. Document preparation phase: It is recommended to reserve 2 weeks to prepare a full set of application materials
2. Customs Review Stage: Statutory 20 working days (15 working days for port stores), and it can be extended by 10 days under special circumstances
3. Result Collection Stage: The customs will issue an official administrative license legal document

It is worth noting that the entire process can now be completed online through the "Internet + Customs" platform, truly achieving "zero trips required."

Core Points of Customs Supervision

As a former supervisor, I would like to particularly emphasize several regulatory details that are easily overlooked:

• Venue requirements: The port store must be within the quarantine area, and the pick - up point of the city - based store must be set in the exit quarantine area.
• Warehouse management: A full - time administrator must be assigned, and the purchase, sales, and inventory reports must be submitted to the customs every month.
• system connected: The IT system must be able to transmit sales and inventory data to the customs in real - time.

Frequently Asked Questions

Q: Can foreign - funded enterprises apply to open duty - free stores?
A: Yes, but they must be independent legal entities registered in China and meet other application requirements.

Q: What kinds of goods can duty - free stores operate?
A: The types of goods must comply with national regulations, usually including tobacco, alcohol, cosmetics, luxury goods, etc. The specific ones shall be subject to the approval of the customs.

Q: Can an appeal be made if the approval is not passed?
A: Yes, but it is recommended to consult the 12360 hotline first to find out the specific reasons and then apply after targeted improvement.

Professional Advice for Applicants

Based on years of experience, I have summarized three "preemptive" suggestions:

• Plan ahead: Reserve at least 3 months for the whole process to avoid delaying business opportunities due to material problems.
• Communicate in advance: Learn about the latest policy trends through the 12360 hotline or the local customs
• Test in advance: The IT system must be fully tested to ensure seamless connection with the customs supervision system.

Although the threshold for the duty - free store business is relatively high, for enterprises that meet the conditions, it is definitely a high - quality track worthy of investment. I hope this article can provide you with valuable reference. If you have more professional questions, you are welcome to communicate and discuss at any time.