Shanghai Customs authorities processed a substantial total of 64,000 applications for tax refunds from international visitors in the first half of 2025, reflecting a remarkable 143.1 percent year-on-year increase.

The surge in tax refund applications nearly equaled the total number of applications processed throughout all of 2024.

The announcement came as part of Shanghai Customs' broader report on the city's foreign trade performance during the same period, released on July 22.

The report revealed that Shanghai's total foreign trade volume reached 2.15 trillion yuan ($300.2 billion), a 2.4 percent increase compared to the first half of the previous year. Exports saw a significant surge, rising by 11.1 percent to 952.7 billion yuan, while imports experienced a slight decline of 3.6 percent to 1.2 trillion yuan.

Shanghai's import and export figures have shown consistent growth for five consecutive months. In June alone, total trade grew by 5.4 percent, reaching 367.84 billion yuan. Both exports and imports contributed to this positive trend, with increases of 9.3 percent and 2.4 percent, respectively, signaling a stable and optimistic outlook for Shanghai's foreign trade sector.

Shanghai Customs, which began verifying tax refund applications for international visitors at departure ports in July 2015, handles approximately half of the nation's total verification volume.

To facilitate smoother tax refund processes for tourists, Shanghai Customs has recently launched three initiatives aimed at accelerating the process.

One such measure is the self-service verification system, which allows international travelers to upload documents to customs via self-service kiosks. Customs officers can then complete the verification process through remote inspection and on-site supervision, leveraging intelligent regulatory tools to handle high volumes of applications simultaneously. This increases verification efficiency by up to threefold during peak periods, especially when handling tour groups.

Another initiative is the "instant verification upon purchase" model. Foreign tourists who purchase goods from tax refund stores within the departure quarantine zone can complete the verification process directly at dedicated customs kiosks within the store. This eliminates the need for travelers to move between stores, customs, and banks, enabling them to collect their tax refunds immediately.

Finally, the "sealed packaging and QR code scanning" method, launched during the "Shanghai Summer" event this month, enables city-based tax refund stores to pre-package tax-refunded goods. Customs officials can then quickly verify the applications by scanning the QR codes on the refund application forms, reducing verification times to mere seconds and significantly streamlining the departure process for international visitors.

Source: Shanghai Observer