In a significant move to bolster international trade and further open China's markets, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration have jointly announced an optimized tax incentive policy for the Canton Fair.
The new directive, effective for the "15th Five-Year Plan" period (2026–2030), introduces a pivotal change in how duty-free quotas are calculated, effectively doubling the potential tax savings for global exhibitors.
Under the updated policy, imported exhibits sold during the fair will continue to benefit from exemptions on import duties, import-value added tax (VAT), and consumption tax, provided they fall within specified quotas.
Most notably, the calculation of these tax-free sales limits has been shifted from an annual basis to a per-session basis. Given that the Canton Fair is held twice a year—in spring and autumn—this adjustment allows exhibitors to utilize their full tax-free allowance for each individual event, a strategic shift designed to maximize the policy's economic impact and encourage a continuous flow of high-quality international goods.
To ensure the policy focuses on advanced manufacturing and consumer goods, certain categories remain excluded from these benefits. Tax exemptions do not apply to prohibited imports, endangered species, tobacco, alcohol, automobiles, or any products listed in the catalog of major technical equipment and products not exempt from import tax.
Any sales exceeding the stipulated limits or items that remain in the country without being sold or re-exported after the fair concludes will be subject to standard taxation procedures.
The administrative process has also been streamlined to facilitate ease of business. The China Foreign Trade Centre (CFTC) will serve as the centralized liaison, submitting lists of exhibitors and sold exhibits directly to Guangzhou Customs.
Furthermore, once these exhibits are sold under the tax-free policy, Customs will no longer subject them to the follow-up management typically required for tax-reduced or tax-exempted goods, thereby reducing the administrative burden on international businesses.
This policy extension and optimization underscore the commitment to facilitate the Canton Fair as a premier platform for global exchange, aiming to attract more high-end global exhibitors and fostering a more vibrant and competitive trading environment in the years leading up to 2030.
Reporter | Guo Chuhua
Photo | Canton Fair
