Inside Sanya After the Customs Closure: Why Imported Durian Prices Have Halved—and Duty-Free Stores Are Now Clearing Over 100 Million Yuan a Day

Hainan has officially launched the first week of island-wide customs closure. According to Haikou Customs, from December 18 to 24, the customs authority supervised over RMB 400 million worth of “first-line” imported goods that qualified for “zero-tariff” benefits, along with more than RMB 20 million worth of “second-line” domestically sold, processed value-added goods that were exempt from duties.

So, can everyday shoppers across Hainan directly enjoy consumer bargains brought by “zero tariffs”? A recent market visit in Sanya suggests the answer is no. “Zero-tariff” goods are only allowed to circulate among eligible beneficiary enterprises, and they cannot be sold to individuals as “duty-free” items.

For consumers, real “duty-free” savings still come through the existing “off-island duty-free” rules. In other words, shoppers purchase eligible goods—such as clothing and cosmetics—at airport or in-city duty-free stores and then take them off the island. According to Sanya’s official updates, in the six days after customs closure began, the city’s four duty-free stores generated RMB 630 million in sales, up 47.2% year-on-year—equivalent to more than RMB 100 million per day.

Why consumers can’t shop “zero-tariff” across the island

On the first day of customs closure, a viral claim spread rapidly online: “Imported durians hit Haikou supermarkets at half the usual price.” But during visits to supermarkets in Sanya, reporters found that durian prices at most stores had not dropped significantly. Shoppers in regular supermarkets also cannot purchase “duty-free” goods in the way many imagined.

This is consistent with the policy design. Under the Notice jointly issued by the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration on tax policies for goods entering and leaving the “first line” and “second line,” and circulating within Hainan after customs closure (Cai Guan Shui [2025] No. 12), “zero-tariff” imports are primarily available to qualified beneficiary enterprises.

In practice, enterprises that meet the eligibility criteria can import goods outside the “negative list” without paying import duties, import-stage VAT, or consumption tax. When those “zero-tariff” goods circulate freely between eligible beneficiary enterprises, no back taxes are required. However, if a company sells “zero-tariff” goods to a non-beneficiary enterprise, an off-island company, or an individual consumer, it must pay the relevant import duties, import-stage VAT, and consumption tax.

That means once “zero-tariff” goods enter the consumer market, taxes effectively return to the equation. As a result, retail prices in ordinary supermarkets still reflect tax-inclusive costs.

This is also why the “durian price halved” story is unlikely to be purely driven by “zero tariffs.” Any major price drop would more plausibly come from lower operating costs and merchant discounts after customs closure—such as streamlined clearance procedures reducing port dwell time, warehousing fees, and potential spoilage losses.

Industry sources also note that among the 6,600 tariff codes eligible for “zero-tariff” treatment after customs closure, chemicals, mineral products, machinery and computing equipment, textiles, and electronic equipment account for a large share. Many of these items are intermediate goods, meaning the biggest beneficiaries are production and processing enterprises that rely on imported inputs.

In that sense, customs closure is also expected to attract more foreign trade participants to invest locally. During the first week, Hainan added 1,972 newly registered foreign-trade filing enterprises, up 2.3 times year-on-year. To date, the province has added more than 30,000 new registered customs declaration entities this year, representing growth of over 40%.

Duty-free stores surge as customs closure boosts attention

For everyday consumers, buying “zero-tariff” goods in Hainan still largely means going to duty-free stores. In recent days, the buzz surrounding customs closure has further lifted Sanya’s duty-free traffic and sales—even though most duty-free prices have not materially changed compared with before the closure.

Sanya has four duty-free stores: one at the airport and three within the city. On a Saturday visit to the largest in-town location, cdf Haitang Bay International Duty Free Shopping Complex, crowds were already dense despite the New Year holiday not yet arriving. Long lines formed outside big-name stores such as Apple and MONCLER, while jewelry counters attracted the strongest footfall.

Ms. Liao, who had just purchased two bracelets at Chow Tai Fook, said that with duty-free savings, multi-item in-store discounts, and government consumption vouchers she managed to secure, the per-gram price of gold jewelry she bought in Sanya was nearly RMB 300 cheaper than in her hometown of Dalian.

At a Lao Miao Gold counter, staff shared that the off-island gold price that day was RMB 1,417 per gram, while the store’s duty-free price was RMB 1,238 per gram—about RMB 180 cheaper per gram. They added that the duty-free price itself hadn’t changed much compared with before customs closure, but sales peaked sharply on the very first day.

Official data from Sanya’s commerce authorities shows that on December 18—the first day of customs closure—Sanya International Duty Free Shopping Complex recorded more than 36,000 visits, up over 60% year-on-year, while sales jumped 85%. From December 18 to 22, Sanya’s duty-free stores exceeded RMB 100 million in daily sales for five consecutive days.

This momentum reflects not only the attention brought by customs closure, but also recent upgrades to the off-island duty-free policy. According to a joint announcement by the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration, starting in November the scope of duty-free goods was further expanded. Certain domestic products are now allowed to be sold in duty-free stores, and island residents can use a single off-island travel record within a calendar year to make unlimited purchases of “buy-now, pick-up-now” duty-free items.

At the same time, new categories such as pet supplies, portable instruments, and micro drones have been added to the off-island duty-free list. At the duty-free mall, new categories like electric guitars, pet products, and keyboard-related electronic accessories were already on shelves. Sales staff said electric guitars were currently the best seller, with duty-free pricing saving shoppers several hundred yuan per unit.

Stronger enforcement against “quota laundering” and smuggling

As duty-free sales heat up, regulators are also tightening controls to prevent off-island duty-free “quota laundering” and related smuggling schemes. According to Sanya Customs, common tactics include criminals recruiting local university students under the guise of “part-time jobs” to use their duty-free purchase quotas, as well as arranging “free one-day tours” through travel agencies targeting elderly groups—claiming travelers can tour for free as long as they provide their duty-free quota for proxy purchasing.