The first batch of petrochemical raw materials imported under the zero-tariff policy arrived at Yangpu Port, Danzhou City, as China's Hainan Free Trade Port (FTP), the world's largest FTP by area, launched island-wide special customs operations on Thursday.
The clearance of the shipment marked the first time Yangpu’s petrochemical industry has benefited simultaneously from zero-tariff imports of raw materials and a duty-free policy for domestic sales of processed value-added products, a policy combination aimed at pushing the industry up the value chain.
"The batch of 'zero-tariff' products totaled 179,000 tons, with a value of nearly 400 million yuan (56.7 million U.S. dollars). By importing these materials tariff-free, companies can save around tens of millions of yuan, significantly easing cost pressure and improving operational efficiency," said Wen Hao, head of the Investment Promotion Bureau at Yangpu Economic Development Zone.
On Wednesday alone, imports through Yangpu Port, Sanya Phoenix International Airport and other ports open to the outside world are expected to include petrochemical raw materials, medical equipment, aviation materials and food ingredients, with a combined value exceeding 500 million yuan.
The launch of Hainan's special customs operations allows freer entry of overseas goods, expands zero-tariff coverage and introduces more business-friendly measures.
The move is widely seen as a landmark in China's efforts to promote free trade and expand high-standard opening-up amid rising protectionism worldwide.
Under the new arrangements, the tropical island of more than 30,000 square km has been designated as a special customs supervision zone, marking a new stage in the development of the Hainan FTP.
As part of the reform, the share of zero-tariff products in the Hainan FTP has been raised from 21 to 74 percent, expanding the list of related items from 1,900 to over 6,600.
First batch of petrochemical raw materials enter Hainan's Yangpu Port tariff-free
Banks in south China's Hainan Province has launched innovative multi-functional free trade accounts to enable free and efficient transfer of funds between domestic and overseas accounts, facilitating cross-border capital flow at the Hainan Free Trade Port.
By the end of November this year, 11 banks in Hainan had launched the service, processing transactions equivalent to 295 billion yuan (42 billion U.S. dollars) with entities in 80 countries and regions.
At Hainan's Yangpu Port, one paper manufacturer demands high efficiency in cross-border settlements for its global operations.
Zhao Wenlong, the company's chief financial officer, said the newly opened multi-functional free trade account provides one-stop services for cross-border fund settlements, foreign exchange, investment, and financing. The streamlined process -- free of additional reviews and supplementary documentation -- has significantly boosted capital flow efficiency.
"Its advantages are apparent as it only requires instructions for transactions. For businesses, it's just like direct domestic transfers, eliminating the need for prior approvals and other procedures. This significantly improves the efficiency of corporate fund utilization," said Zhao.
Beyond settlement convenience, the offshore exchange rate advantage of the account has delivered tangible financial benefits to enterprises. Zhao's company saved a significant amount in financial costs on a recent 23 million U.S. dollars foreign exchange settlement transaction thanks to this feature.
"We can choose between two accounts to conduct foreign exchange purchases and settlements with the more favorable exchange rate," said Zhao. The application scenarios for functional free trade accounts are rapidly expanding from basic settlement to complex financial services, becoming a powerful support for enterprises to expand into international markets.
"Starting with the initial simple function of cross-border fund transfers, we have introduced numerous business innovations this year, such as overseas USD financing combined with onshore RMB currency swaps. With the continuous utilization of our services and the integration of our business with the FTP policies, we will roll out more innovative measures to enable enterprises to reap greater benefits," said Li Peng, deputy head of the Hainan Branch of Industrial and Commercial Bank of China.
Bank innovations facilitate cross-border capital flow at Hainan FTP
