BEIJING, July 3 (Xinhua) -- For an Indonesian tourist surnamed Hu, China's upgraded departure tax refund policy spared him the hassle of unpacking his luggage for physical goods verification, with the entire refund procedure only requiring a short stop at the airport service counter.
At Hangzhou Xiaoshan International Airport on Wednesday, a customs officer scanned Hu's passport and the system automatically retrieved his refund application for goods including a backpack and perfume. Since Hu's purchases totaled less than 10,000 yuan (about 1,469 U.S. dollars) and his application was not selected for inspection, he wrapped up the process with ease.
The streamlined process took place on Wednesday, the first day China's departure tax refund policy 2.0 went into effect. The new policy aims to make shopping easier for overseas visitors and turn the growing wave of inbound tourists into greater consumer spending.
At China World Mall in Beijing's central business district, a customer from Algeria bought nearly 20,000 yuan worth of electronic products. At a self-service tax refund machine, he first scanned his passport, allowing the system to automatically fill in his entry information. He then scanned a QR code to have the invoice issued and completed the refund application within minutes. After receiving a tax refund of nearly 1,800 yuan, the customer decided to buy some additional accessories.
According to the mall, stores with high volumes of refund business have been equipped with application devices, reducing the time to issue a refund form from 15 minutes to a minimum of three minutes.
The reduced waiting time stands as one of the tangible improvements delivered by the upgraded policy, which builds on the 1.0 version to make departure tax refunds more accessible to overseas visitors.
The 1.0 version, launched in April 2025, lowered the minimum purchase threshold for a single transaction from 500 yuan to 200 yuan, raised the cash refund ceiling from 10,000 yuan to 20,000 yuan, expanded the coverage of tax refund stores and promoted refund-upon-purchase services.
The latest upgrade further targets bottlenecks in the refund process through measures such as random inspections for small-value refund applications, improved digital services, and optimized refund-upon-purchase services.
The policy benefits are increasingly evident, with nationwide sales involving departure tax refunds nearly doubling year on year in 2025, and "China Travel" and "Shopping in China" gaining further momentum.
The new measures are also designed to make refund services more connected across regions.
Tan Sye Lea, a Singaporean tourist, recently bought tax-refundable goods worth about 26,000 yuan and 170,000 yuan in Chengdu and Chongqing, respectively, and received refunds on the spot in both cities.
On June 29, she departed from Chongqing Jiangbei International Airport with refund application forms, invoices and the purchased goods. "Although the purchases were made in two cities, the refund process was smooth," Chen said.
According to Chongqing tax authorities, by the end of June, a total of 363 departure tax refund stores had opened, including 78 offering refunds right at the point of purchase. Nearly 300 cross-region mutual recognition cases were also handled during this period.
In July 2025, Chongqing and Sichuan began mutual recognition of refund-upon-purchase services under the departure tax refund policy. The upgraded policy has promoted the nationwide rollout of such cross-region arrangements, allowing more overseas visitors to complete tax refund procedures at departure ports in regions other than where they made their purchases.
Together, the upgrades are making the refund process simpler and the shopping experience smoother for overseas visitors.
Zheng Rong, a researcher at the University of International Business and Economics, said spending by overseas visitors in China on dining, accommodation, transportation, sightseeing, shopping and entertainment can translate into jobs, tax revenue and other economic benefits.
Such consumption has a broader economic impact than goods exports alone, Zheng said, adding that countries around the world are optimizing tax refund systems and improving consumption environment to attract overseas visitors.
With the departure tax refund system becoming more convenient and digitalized, China is accelerating its transformation into a "global consumption destination," said Zheng. ■
