Guotai Haitong Securities Co., Ltd. released a research report stating that the Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Taxation Administration recently issued a notice to refine duty-free shop policies effective November 1, 2025. The move aims to boost consumption, redirect overseas spending back to domestic markets, attract foreign visitors, and promote the healthy development of duty-free retail. Following the Hainan offshore duty-free policy upgrade, further measures have been introduced, with optimized in-city duty-free pickup methods expected to unlock growth potential.

The notice outlines four key policy improvements: 1. **Enhanced domestic product tax refund/exemption management**, encouraging duty-free shops to sell more high-quality domestic goods that reflect Chinese culture. 2. **Expanded product categories**, adding popular items like smartphones, mini drones, sports equipment, health foods, over-the-counter medicines, and pet food to duty-free offerings. 3. **Decentralized approval authority**, allowing local governments greater flexibility in setting up and managing duty-free shops at ports and adjusting store layouts. 4. **Improved convenience and supervision**, enabling online reservations for duty-free purchases and permitting travelers to pick up in-city duty-free orders at port arrival stores, enhancing the shopping experience.

The optimized pickup method significantly improves convenience and consumer satisfaction, potentially expanding the in-city duty-free market. On August 26, 2025, Shenzhen and Guangzhou opened flagship in-city duty-free stores, jointly operated by China Duty-Free Group, Shenzhen Duty-Free Group, Shenye Group, and other partners, marking steady progress in core cities.