Hainan Free Trade Port: Key Facts About the Island-Wide Customs Closure
Publish Time: 2025-07-25 Origin: Site
1. What is "Customs Closure"?
Definition: Hainan will become a special customs supervision zone under the principle of "First Line Open, Second Line Controlled, Island-Wide Freedom".
First Line (Open): Free movement of goods, capital, and personnel between Hainan and global markets.
Second Line (Controlled): Strict customs checks for goods entering mainland China from Hainan.
Island-Wide Freedom: Unrestricted flow of goods and capital within Hainan.
Not an Island Lockdown:
No extra travel documents required for visitors.
Aims to boost global trade integration while maintaining domestic security.
2. Key Policy Changes ("Four More")
More Preferential "Zero-Tariff" Policy
Goods processed in Hainan with 30%+ added value can enter mainland China tariff-free.
Zero-tariff goods can circulate freely among businesses in Hainan (no longer restricted to self-use).
Tax Coverage Expands: From 21% to 74% of all imported goods (6,600 tax items).
New Benefits:
More Relaxed Trade Controls
Fewer Restrictions: 60 categories of used machinery no longer need import licenses.
Bonded Repairs Allowed: 38 product categories can undergo tax-free repairs (highest openness in China).
More Convenient Customs Clearance
First Line: 8 international ports (e.g., Yangpu) allow direct clearance for most goods.
Second Line: 10 checkpoints (e.g., Haikou New Seaport) streamline cargo flows to mainland China.
More Efficient Smart Supervision
AI + Big Data: Reduces customs checks for high-credit companies.
Simplified Declarations: Export forms cut from 105 to 42 items.
3. Major Impacts
For Businesses:
Lower costs for import-dependent industries (e.g., biotech, EVs).
Offshore Companies: Can use Hainan as a gateway to China and global markets.
For Consumers:
Cheaper luxury goods, electronics, and cars due to zero tariffs.
Duty-Free Shopping: Annual quota remains ¥100,000 per person.
For Tourism:
85 countries enjoy visa-free entry.
No changes to travel procedures post-closure.
4. Preparation Status
Policies Ready: Tax rules, negative lists, and processing policies finalized.
Infrastructure Complete:
Customs facilities passed national inspection.
Smart systems (e.g., "Single Window" for trade) operational.
Pressure Testing Underway: Simulating full-scale operations to ensure smooth transition.
5. Long-Term Vision
Global Hub: Aims to rival Hong Kong/Singapore as a free trade zone.
Economic Growth: Expected to boost Hainan’s GDP by 20%+ by 2030.
Key Dates:
December 18, 2025: Official launch (symbolically aligns with China’s 1978 reform anniversary).
Sources: National Development and Reform Commission, Ministry of Finance, Hainan Government.