Shopping in China as a tourist: the departure tax refund, what to buy and Australian customs limits

Shopping is not the reason most of our clients go to China, and our tours have no shopping stops. But people shop anyway, for silk, tea, ceramics, electronics, children’s clothes and gifts for home, and two things make it better: knowing how the tax refund works, and knowing what the Australian customs limits are when you land. Both are simpler than they look.

China’s departure tax refund, in plain terms

China refunds value-added tax (VAT) to overseas visitors on goods bought at designated stores and taken out of the country. The rules have been loosened several times and the details below are current at the time of writing; the airport refund counter has the latest.

• Who qualifies. Foreign passport holders who have been in China for no more than 183 consecutive days. Australian tourists qualify.
• Which shops. Stores displaying the “Tax Free” refund logo, which now include most department stores, large malls, brand boutiques, big electronics retailers and the airport shops in Shanghai, Beijing, Guangzhou, Hangzhou and other major cities. Market stalls and small shops are not in the scheme.
• Minimum spend. At least RMB 200 in the same store on the same day (lowered from 500 in 2025).
• How much you get back. The refund rate is 11% of the invoice amount for most goods (8% for a few categories), and the refund agency keeps a fee of about 2%, so you receive roughly 9%. Food, medicines and goods consumed in China are excluded.
• Paperwork at the shop. Show your passport; the store issues a tax refund application form and a VAT invoice (fapiao). Keep both with the receipt; without the form there is no refund.
• Timing. The goods must leave China within 90 days of purchase and must be unused and available for inspection.
• At the airport. Before check-in, take the goods, forms and invoices to the Customs tax refund verification desk (at Pudong it is in the departure hall near check-in; follow the “Tax Refund” signs). Customs stamps the form. After passport control, present the stamped form at the refund counter (operated by a bank or refund agency) and choose cash in RMB, a refund to a credit card, or, increasingly, to Alipay or WeChat Pay. Cash refunds are capped per person; above that it goes to the card.
• Refund on purchase. A growing number of stores in Shanghai and Beijing offer “refund upon purchase” (即买即退): you receive the refund on the spot, guaranteeing it with a credit card pre-authorisation, which is released once you complete the customs check on departure. Convenient, as long as you remember the airport step.

Allow 30 extra minutes at the airport. At Pudong the queue is usually short; during trade fairs and holidays it is not.

What is worth buying

• Silk. Shanghai and Suzhou are the places. Buy from a department store, a reputable silk shop or the Suzhou Silk Museum shop, not a market stall; real silk has a dull sheen, is cool to the touch, and the shop will burn a thread for you (it smells of hair, not plastic). Scarves, quilts and pyjamas are good value.
• Tea. Longjing from Hangzhou, oolong from Fujian, pu’er from Yunnan, jasmine from anywhere. Buy from tea houses where you have tasted it, or from the big chains; the Hangzhou guide covers buying at the farm. Sealed tins travel; loose tea must be declared to Australian biosecurity but is normally allowed.
• Ceramics and porcelain. Jingdezhen pieces sold in Shanghai and Beijing galleries; department stores are safe, markets are a gamble.
• Chinese medicine and health products. Popular with Australian-Chinese families; check the ingredients against Australian import rules, which prohibit some animal products and restrict others.
• Children’s clothes, toys and homewares. Enormous variety and cheap; the big malls’ upper floors and brands like Balabala and Miniso. Toys must meet Australian safety rules only if you resell them; for personal use, use judgement.
• Electronics and phones. Huawei, Xiaomi and DJI products are cheaper than in Australia, but warranty does not transfer and some phones lack Google services. Buy at an official store, keep the receipt, and know what you are getting.
• Calligraphy, seals and art. A carved personal seal (chop) with your name in Chinese is a lovely gift and takes an hour at a seal shop; Yu Garden and Liulichang in Beijing have them.

What to leave alone

• Jade, pearls and antiques unless you know what you are doing or are with someone who does. Fakes are the rule in tourist areas, and genuine antiques over a certain age cannot be exported.
• Luxury brand goods are usually more expensive in China than in Australia; the refund narrows the gap but rarely closes it.
• Counterfeit goods from the “fake markets”: your decision, but Australian customs can seize them, and the scams guide explains why the jade in those markets is not jade.
• Anything you will not use within 90 days if you are relying on the refund, and anything you will use in China (it must be unused at the customs desk).

Paying for it

Alipay or WeChat Pay linked to an Australian card works in every store; large purchases may also be made on the card directly, which keeps the refund trail simple. Keep every fapiao.

Coming home: Australian customs limits

The refund in China is one side; the Australian border is the other. At the time of writing:

• Duty-free allowance: goods worth up to A$900 per adult (A$450 for travellers under 18), bought overseas or in duty-free, including gifts. Family members travelling together can pool their allowances. Above that, you declare and may pay duty and GST on the whole amount, not just the excess.
• Alcohol: 2.25 litres per adult. Tobacco: 25 grams (about one packet) per adult.
• Food and biosecurity: declare all food, tea, herbs, wooden items, seeds and animal products. Sealed commercial tea is normally fine; fresh fruit, meat, dairy and many Chinese medicine ingredients are not. Declaring costs nothing; not declaring can cost a fine of thousands.
• Counterfeits: Australian Border Force can seize them.
• Cash: A$10,000 or more (or foreign equivalent) must be declared.

The Australian Border Force website has the current figures; check them before a serious shopping trip.

With a guide

Our guides do not take guests to shops that pay commissions, which is why the tours have no shopping stops. What they will do, if you ask, is take you to the silk shop, the tea house or the seal carver they would send their own family to, tell you the right price, and handle the refund paperwork at the counter. A day guide booking with a “shopping afternoon” is a common request on the last day of a trip, and it is the last day for a reason: the goods must leave unused.