China on Thursday launched island-wide special customs operations in the Hainan Free Trade Port (FTP), the world's largest FTP by area, allowing freer entry of overseas goods, expanding zero-tariff coverage, and introducing 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 against rising protectionism in the world.
Under the new arrangements, the tropical island, covering more than 33,000 square km and about a 1.5-hour flight from Hong Kong, has been designated a special customs supervision zone. This marks a new stage in the development of the Hainan FTP, which enables freer flows of goods, capital, personnel and data, supported by zero tariffs, low tax rates and a simplified tax system.
The special customs system offers "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.
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.
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 two-tiered special customs system ensures that greater openness at the "first line" is balanced by precise, efficient, and minimally intrusive supervision at the "second line," maintaining overall regulatory control while widening market access.
"Leveraging our customs' intelligent supervision platform, we conduct risk analysis and precise control of goods, prioritizing inspections with smart equipment. Machine inspection enables normal customs clearance in approximately one minute, with manual inspection deployed only when an alert is triggered in machine inspection. This approach ensures both accurate supervision and efficient clearance," said Gao Ruifeng, head of Haikou Customs.
"Zero-tariff" goods and their processed derivatives enjoy unrestricted storage within the area with no time limit.
The convergence of these preferential policies has steadily enhanced the international appeal of the Hainan Free Trade Port. On the first day of the port's special customs operations, Siemens Energy, a Fortune Global 500 firm, established a new company in Hainan.
"With [Hainan] free trade zone as option, we have the chance to save energy to optimize our logistic processes and to reduce administration of effort and make faster deliveries," said Lars Walker, head of Siemens' Hainan branch.
Island-wide special customs operations show China's opening-up drive
Island-wide special customs operations show China's opening-up drive
