China's Hainan Free Trade Port (FTP) will expand the scope of zero-tariff imports as it moves toward an island-wide independent customs operation on December 18, 2025, Vice Minister of Finance Liao Min announced Wednesday.
The announcement came at a press conference held by the State Council Information Office on Wednesday morning regarding the launch of the Hainan FTP.
Liao noted that the number of duty-free items in Hainan will increase from about 1,900 to around 6,600, marking a significant boost in opening up.
Once the independent customs operation begins, zero-tariff imports will be managed under a negative list, Liao said, adding that the proportion of tariff lines with zero-tariff products in the Hainan FTP will increase from 21 percent to 74 percent.
The scope of eligible beneficiaries will be significantly expanded to include enterprises, public institutions, and private non-enterprise entities in the FTP with actual import needs, according to Liao.
"Policy restrictions are being eased. Following the independent customs operation, zero-tariff imports and their processed goods will no longer be limited to self-use. They can move freely among eligible entities without triggering retroactive tariffs. This will strengthen industrial chains within Hainan Island, boost competitiveness, and foster the growth of industrial clusters," said Liao.
In April 2018, China announced a decision to develop Hainan into a pilot free-trade zone while gradually exploring and steadily promoting the establishment of an FTP with Chinese characteristics. In June 2020, a master plan was unveiled to build the island into a globally influential and high-level FTP by the middle of the century.
Hainan FTP to expand zero-tariff policy after independent customs operation
