Zero-tariff imports into the Hainan Free Trade Port (FTP) surged 120 percent year on year to nearly 2.65 billion yuan (about 388 million U.S. dollars) between late last year's launch of island-wide special customs operations and May 31, local authorities said Wednesday.
Domestic sales under the import tariff exemption policy for products with no less than 30-percent added value after processing reached 580 million yuan during the five-and-a-half-month period, saving companies about 30.25 million yuan in tariffs, according to data from the Office of the Free Trade Port Working Committee of the Communist Party of China Hainan Provincial Committee and Haikou Customs.
The province also completed 17 shipments of bonded maintenance and import-license-exempt transactions for items on the restricted list, valued at over 7 million yuan. Meanwhile, further optimization of the offshore duty-free policy drove duty-free sales up 20.5 percent year on year, surpassing 20 billion yuan.
China launched island-wide special customs operations in the Hainan FTP on Dec 18. The policy features "freer access at the first line" for trade between Hainan and areas outside China's customs borders, and "regulated access at the second line," where standard customs rules apply to goods moving from Hainan to the mainland.
In the six months since the island-wide special customs operations were launched, policy dividends have been released at an accelerated pace.
"Since the implementation of island-wide special customs operations, the total import and export volume in Hainan reached 173.98 billion yuan, and the average customs clearance time for imported goods cut by 20 percent. The 10 'second-line' ports are operating smoothly, with the declaration items for outbound island shipments streamlined by over 60 percent," said He Bin, an official at Haikou Customs.
"The customs authority has implemented an innovative 'batch release, centralized declaration' model, which allows enterprises to move goods first, submit declarations later. Now, more than 80 percent of products for domestic sales with no less than 30-percent added value after processing depart the island under this model. The free trade port policies and customs facilitation measures work together, which has effectively expanded room for the foreign trade in Hainan and facilitated the efficient flow of economic production factors between the Hainan FTP and the mainland," He added.
Zero-tariff imports to Hainan surge 120 pct after launch of island-wide special customs operations
