Three central government agencies introduced a new duty-free policy on Thursday that allows residents of the Hainan Free Trade Port to purchase imported consumer goods tax-free, a move aimed at boosting the port's development and easing local living costs.

The Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly issued the policy, under which eligible residents buying imported goods at approved retail outlets will be exempt from import tariffs, import value-added tax, and consumption tax, as well as corresponding domestic taxes, within an annual quota and a designated product list.

Each eligible individual is entitled to an annual duty-free allowance of 10,000 yuan ($1,440), with no limit on the number of transactions.

Qualifying residents include Chinese citizens holding a Hainan identification card, residence permit, or local social security card, as well as foreign nationals who live and work in Hainan with valid residence permits.

The eligible products cover daily necessities, including selected food, beverages, household chemicals, home goods, and maternal and infant items.

Goods imported under the policy by locals are intended for personal use as final products and shall not be resold.

Officials said the measure aims to reduce living expenses, meet diverse consumer demand, and ensure the benefits of the free trade port's development reach residents.

Locals are hailing the new policy as a "New Year's bonus". "It helps us feel the benefits of cross-border trade in the free trade port," said resident Shu Lin.

Previously, Hainan's offshore duty-free policy allowed eligible travelers and residents to buy goods exempt from import duties, value-added tax, and consumption tax when departing the island. All travelers aged 18 and above, including Hainan residents leaving the island, are allowed to make duty-free purchases up to 100,000 yuan per year, without limit on the number of transactions.

Under the updated policy, the range of duty-free goods available offshore has expanded to 47 categories. New additions include pet supplies, portable musical instruments, mini drones, and small home appliances.

Domestic products such as apparel, footwear, headwear, ceramics, scarves, coffee, and tea also may be sold in offshore duty-free shops and qualify for exemptions and refunds of value-added tax and consumption tax, according to an October notice from the three government agencies.