Editor’s Note
This article outlines the initial progress of Hainan Free Trade Port’s island-wide customs closure, highlighting the expansion of “zero tariff” policies and other trade facilitation measures. The developments mark a significant step in China’s broader economic opening and regional integration efforts.
Today (19th), the Hainan Provincial Information Office held a press conference to brief on the progress during the first month of the island-wide customs closure operation of the Hainan Free Trade Port (FTP) and answer questions from reporters.
Thirty entities enjoyed benefits by importing “zero-tariff” goods worth 7.5 billion yuan, covering 37 types of commodities. Among these, “zero-tariff” general goods accounted for 7.14 billion yuan, mainly bulk commodities like crude oil and mineral products; “zero-tariff” production equipment amounted to 38.374 million yuan, primarily scientific research equipment and medical devices. Eight newly added “zero-tariff” entities made their first imports after the closure, with a total value exceeding 200 million yuan.
Thirty enterprises sold duty-exempt, value-added processed goods worth 85.867 million yuan for domestic sale outside the island, exempting 3.318 million yuan in import tariffs. These goods mainly included chemical products, medical devices, pharmaceuticals, and food, covering industries such as chemical manufacturing, food processing, medical equipment and pharmaceuticals, and jewelry processing. After the closure, new business scenarios for the duty exemption on value-added processing policy have been successively implemented. The inclusion of the value of Hainan’s self-produced goods (like coconuts and sea salt) in the value-added portion has effectively integrated them into the industrial chain of “overseas raw materials – Hainan processing – mainland sales”. Cumulative value-added processing outside the special customs supervision zones has further extended and complemented industrial chains, such as for petrochemical new materials.
Imports of “both ends abroad” bonded maintenance goods reached 347,000 yuan.
Stimulated by the new round of policy optimization and the island-wide customs closure operation, passengers’ enthusiasm for purchasing duty-free goods when leaving the island has surged, effectively invigorating market vitality, continuously upgrading the consumption structure, with the policy effects beginning to show. Customs supervised duty-free shopping for departing island passengers amounting to 4.86 billion yuan, involving 745,000 shoppers and 3.494 million items purchased, representing month-on-month increases of 95.2%, 57.4%, and 68.6% respectively. Sales performance of optimized and adjusted categories was impressive. Electronic consumer products achieved sales of 22.742 million yuan and became the main sales driver, further meeting the diverse shopping needs of passengers and residents. The new policy allowing island residents to “purchase and take immediately” continued to release its effect, with shopping amount reaching 28.87 million yuan in the first month, a month-on-month increase of 28.2%. The total shopping amount for departing passengers was 21.2 million yuan, with per capita spending of 8,541 yuan, showing strong consumption potential.
The release of policy dividends has boosted market confidence, highlighting the vitality of Hainan FTP’s export-oriented economy. In the first month, the province approved 10,038 entities eligible for “zero-tariff” benefits and registered 112 enterprises for duty exemption on value-added processing. There were 5,132 newly registered foreign trade enterprises with customs, including 113 new foreign-invested enterprises. The total number of registered enterprises historically exceeded 100,000. Preliminary statistics show Hainan’s total foreign trade import and export value exceeded 27 billion yuan.
Source: CCTV News Client
Authors: Dong Bin, Ye Fan