The island-wide special customs operations in the Hainan Free Trade Port (FTP) is expected to bring new and greater opportunities to enterprises on the island.
China on Thursday launched island-wide special customs operations in the Hainan FTP, the world's largest FTP by area, allowing freer entry of overseas goods, expanding zero-tariff coverage and more business-friendly measures.
Officials describe the special customs system as "freer access at the first line," referring to freer trade between Hainan and areas outside China's customs borders, and "regulated access at the second line," which involves applying standard customs controls for goods moving from Hainan to the mainland.
According to the regulations, zero-tariff goods processed in Hainan may be sold to the mainland duty-free if their local processing generated an added value of 30 percent or more.
The first batch of goods eligible for the tax exemption passed customs inspection in Hainan's Haikou City on Thursday before its departure for the mainland.
"This is the first batch of products enjoying the 30-percent added value tax exemption that will pass the 'second line' port customs. The total value for the goods is over 880,000 yuan. The customs clearance process is remarkably efficient, with procedures significantly streamlined compared with before. As a Greater Bay Area enterprise, settling in the Hainan FTP has enabled us to expand our production scale steadily. I am highly confident that the FTP will continue to thrive," said He Yongshen, president of medical device company Well Lead.
In addition to favorable tax policies, regulatory measures for certain imported goods have been relaxed, opening new business opportunities for some industries, such as bonded maintenance.
"Previously, bonded maintenance involving engines with both an overseas source and an overseas destination was not permitted. Following the launch of island-wide special customs operations, Hainan released a new list of prohibited and restricted items, and lifted the limitations on 38 new categories, including bonded maintenance of automotive engines. Our first order originated from Germany in Europe, while the second came from Malaysia in Asia. We are very optimistic about Hainan to develop this industry," said Zhang Zirui, marketing director of Genertec Vehicles Hainan.
The development of the Hainan FTP will proceed in phases until the mid-21st century, when it will be fully established as a high-level free trade port with significant international influence.
The establishment of the Hainan FTP is not only an opportunity for Hainan itself, but also for all enterprises and individuals seeking to engage in cross-border business and embrace the benefits of openness.
Hainan FTP provides great opportunities for enterprises
