The first shipment of locally sourced goods from south China's tropical island province of Hainan was dispatched to the southern Chinese city of Guangzhou on Tuesday evening, marking a significant milestone since the launch of the island-wide special customs operations in the Hainan Free Trade Port (FTP), the world's largest FTP by area, last week.
The consignment consisted of 198 kilograms of virgin coconut oil produced by a food company in the Baoting Li and Miao Autonomous County in Hainan. It was transported through two "second line" ports to Guangzhou.
In this context, the "first line" denotes Hainan's connection to overseas markets, while the "second line" represents the customs boundary between the island and the Chinese mainland.
This two-tiered special customs system features "freer access at the first line," facilitating trade between Hainan and areas beyond China's customs borders, and "regulated access at the second line," which involves standard customs controls for the Chinese mainland.
The Hainan's island-wide special customs operations allow for the freer entry of overseas goods, expand zero-tariff coverage, and introduce more business-friendly measures.
Valued at 32,000 yuan (4,570 U.S. dollars), the batch of coconut oil is eligible for the duty-free policy for value-added processing. It incorporates coconuts sourced partially from Hainan and will be used in beauty products. The policy allows goods originating from Hainan or containing more than 30 percent imported materials to enter the mainland tariff-free, enabling companies to genuinely benefit from these initiatives following the launch of island-wide special customs operations in Hainan.
"The value-added duty-free policy of the Hainan Free Trade Port effectively lowers tariff costs by 12 percent. The availability of low-cost coconuts provides a significant competitive advantage and delivers tangible benefits to downstream companies," said Zhou Fuqiong, head of the coconut processing company.
He further noted that the company procured 200 mature coconuts from Hainan, alongside coconuts imported from Indonesia for this production run. This approach supports the business of local coconut farmers, boosts the local economy, and helps stabilize the supply chain.
"After the launch of island-wide special customs operations in the FTP, we provided the first batch of 200 locally sourced mature coconuts to enterprises, helping them in complying with the value-added duty-free policies for the Hainan Free Trade Port. In the future, we will continue to expand both the variety and quantity of goods supplied," said Zhuo Bin, head of the coconut supplier company.
South China's Hainan ships first locally sourced goods following launch of FTP special customs operations
South China's Hainan ships first locally sourced goods following launch of FTP special customs operations
