The Chinese Ministry of Finance has granted approval for new departures duty free stores at Nanning Wuxu International Airport and the Pingxiang Youyi and Longzhou Shuikou border ports.

Nanning Wuxu International Airport and the Pingxiang Youyi and Longzhou Shuikou ports are located in the Guangxi Zhuang autonomous region of Southern China. Guangxi Zhuang borders Vietnam and the Gulf of Tonkin and became an autonomous region in 1958.

TRBusiness is seeking further information from the Guangxi Zhuang government (Finance department), which will work with the Chinese Central Government (customs, taxation and commerce departments among others) to quickly determine which companies will operate the stores. This publication will bring you more information in due course.

The awarding of the Nanning Wuxu International Airport duty free licence coincides with Nanning Department Store Co’s application for a downtown duty free licence around the same period.

Nanning Department Store Co Ltd, which confirmed the application through an announcement on the Shanghai stock exchange that was seen by TRBusiness, owns and operates a number of department stores and supermarkets. These are located in several places including Nanning, Guigang and Hezhou.

Textile products, groceries, jewellery, office products, household electrical appliances, food and other general merchandise are among the items available.

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Time will tell if the awarding of the Nanning Airport duty free licence has any bearing on Nanning Department Store Co’s application for a downtown duty free permit.

The Guangxi Zhuang government said: “The approval to set up outbound duty free will provide a path for Nanning, Pingxiang and Longzhou to develop duty free shopping business and improve tourism functions.

“The new duty free businesses will play an important role in reducing consumer’s shopping costs when travelling. They will also bolster consumption and drive the development of industries such as tourism, aviation, accommodation and catering.”

Guangxi’s largest aviation hub, Nanning Wuxu International Airport, which handled 15,091,694 passengers in 2018 is an international gateway for Asean countries.

Located in Pingxiang, Chongzuo, the Youyi Port is the largest and most convenient land channel from China to the Asean region.

Shuikou Port is situated in Longzhou county, Chongzuo and is the earliest gateway for non-governmental trade between Guangxi and Vietnam. The port provides an important trade passage between China, Vietnam and southeast Asia.

The establishment of outbound duty free shops will promote the ‘opening up of Guangxi’ and the region’s economic development, according to the Guangxi government.

Last month, Wangfujing Group Co Ltd  secured a new downtown duty free licence, as first reported by TRBusiness. This led to the establishment of a new wholly owned subsidiary duty free company with registered capital of RMB500 million/$71.4 million

A slew of other state-owned companies have applied for downtown duty free licences including Shanghai Bailian Group Co Ltd, which runs shopping malls, supermarkets and convenience stores.

Wuhan Wushang Group Co and Guangzhou Lingnam Group Holding Co have also submitted applications for duty free licences, as this publication first reported. Both companies confirmed their applications amid abnormal fluctuations on the Chinese stock exchange. The fluctuations were driven by speculation surrounding the licence applications.

TRBusiness can confirm that Dalian-based retail chain Dashang Group Co Ltd, is also waiting to learn if its duty free licence application has been successful, according to the below announcement on the Sina.com web portal.

Interestingly, all applicants, which are looking to capitalise on the Chinese government’s plan to drive domestic consumption were uncertain if their applications would be successful.