Core Viewpoint - The recent joint announcement by the Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Taxation Administration aims to enhance the attractiveness of duty-free shops for inbound and outbound travelers by refining policies related to domestic goods sales, expanding product categories, relaxing approval processes, and improving convenience and regulatory measures [1][2]. Group 1: Policy Enhancements - The new regulations encourage domestic products to enter duty-free shops, allowing companies with duty-free qualifications to increase procurement of quality domestic goods, which will be treated as exports for tax refund purposes [1][2]. - The operational procedures for domestic goods in duty-free shops will be optimized, adopting a "sales first, refund later" model to facilitate the sale of domestic products [2]. - The policy mandates that at least 25% of the operational area of duty-free shops be dedicated to domestic products, enhancing their market recognition and international competitiveness [2]. Group 2: Product and Sales Process Improvements - The policy expands the categories of products available in duty-free shops, allowing for a wider range of popular items such as mobile phones, drones, sports goods, health foods, over-the-counter drugs, and pet foods [2][3]. - The new regulations will accelerate the listing of popular imported duty-free products in China, encouraging international brands to introduce their latest offerings to the market [3]. - Duty-free shops will now offer online reservation services, allowing travelers to book items in city duty-free shops and pick them up at port duty-free shops, enhancing the shopping experience [3]. Group 3: Regulatory and Approval Changes - The approval process for establishing and operating duty-free shops will be decentralized, allowing local provincial departments to handle approvals instead of central authorities, which is expected to improve efficiency [4][5]. - The current approval process for the operational area of duty-free shops will be adjusted to allow flexibility based on actual business conditions, promoting differentiated operations [4][5]. - Simplifying the approval processes is seen as a significant step towards optimizing the business environment and enhancing the efficiency of duty-free shop operations [5].