【Hainan, Chin】Benefits of Hainan’s Zero-Tariff and Low-Tax-Rate Policies Gradually Become Evident

In the process of building the Hainan Free Trade Port, the tax revenue system of “zero tariff” and “low tax rate” leverages unique policy advantages, becoming a key driver to stimulate industrial vitality and connect domestic and foreign markets. This is propelling Hainan’s upgrade into a front-line processing base and a regional value-added center. From policy iteration and upgrade to deep industry benefits, and further to the continuous optimization of the business environment, the new tax policies are injecting momentum into the high-quality development of the Hainan Free Trade Port from all aspects.

On December 18, 2025, the first day of the island-wide customs closure in Hainan, a batch of premium beef jerky produced by Zhengda (Hainan) Food Industry Development Co., Ltd. took off from Haikou Meilan International Airport, transited through Shenzhen, and was shipped to Beijing. This batch of high-quality beef jerky from Indonesia, after completing multiple processes such as roasting, packaging, and quality control at Zhengda’s automated roasting factory in the beef jerky cultural park, achieved a value-added rate exceeding 30%. It became the first batch of food products in Wanning City to enjoy the policy of exemption from import duties for processed goods with over 30% value addition.

Policy dividends emerged early. In February 2025, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly issued the “Notice on Adjusting the List of Raw Materials Eligible for the ‘Zero Tariff’ Policy in the Hainan Free Trade Port,” newly adding 297 commodities, including unroasted beef jerky, to the “zero tariff” raw materials list. Ye Jianjie, General Manager of Zhengda (Hainan) Food Industry Development Co., Ltd., introduced that on the day the policy was implemented, the company began import and export trade of beef jerky commodities using the “two ends outside” model (raw materials imported from abroad, products exported abroad). In the first export transaction of beef jerky to Australia, it successfully reduced the import duty and value-added tax in the beef jerky raw material import环节 by 8% and 13%, respectively.

A series of policies have charted a clear development direction for enterprises, with the core framework summarized in two points: For raw materials consumed in production and processing under the “two ends outside” model, import duties, import环节 value-added tax, and consumption tax are exempted; The “Interim Measures for the Administration of Tax Collection on Goods Eligible for Exemption from Import Duties for Processed Value-Added Goods in the Hainan Free Trade Port by the Customs of the People’s Republic of China and the Ministry of Finance” clearly states that before the Hainan Free Trade Port enters封关运作, enterprises in encouraged industries producing goods with imported component value-added exceeding 30% can enjoy exemption from import duties when entering the domestic market.

The deepening of policies is bringing tangible development opportunities for enterprises.

Ye Jian expressed that the policy advantages of the Hainan Free Trade Port allow enterprises to optimize resource allocation globally and build a new business model of “global procurement, Hainan processing, and international markets.”

With the封关运作 of the Hainan Free Trade Port, the tax revenue system is ushering in a new round of optimization and upgrade, with the policy coverage further expanding. The General Administration of Customs, together with relevant departments, will formulate new management measures clarifying that after封关, the cumulative value-added scope for processing will expand from the special customs supervision areas in Hainan to the entire island, and the deep processing value-added between enterprises can be combined and calculated.

Gao Liangfeng, Director of Haikou Customs, said this adjustment aims to effectively extend the industrial chain and promote industrial cluster development.

Qiang Qiang, Director of the Hainan Provincial Department of Finance, stated that the tax revenue system with “zero tariff” at its core has taken shape. Tax reforms have powerfully driven the optimization and upgrade of the industrial structure and also stimulated the vitality of business entities.

Zhou Zhengxiang, Deputy Director of the Hainan Provincial Department of Finance, introduced that up to now, the “zero tariff” policy covers 6,637 commodity categories, accounting for 74% of the categories required for enterprise production. The vast majority of required raw materials, spare parts, and production equipment are included in the “zero tariff” scope (including import duty, import环节 value-added tax, and consumption tax). Regarding “low tax rate,” encouraged industry enterprises engaged in substantive operations in the Hainan Free Trade Port and high-end紧缺 talents in various industries can both apply for the two 15% corporate income tax preferential policies. Policy dividends have deeply penetrated multiple key industries, providing strong momentum for enterprise capacity expansion and upgrade.

Since the beginning of this year, the pharmaceutical industry has entered a peak production and sales period. The production lines in the second factory area of Hainan Bote Pharmaceutical Co., Ltd. are operating at full capacity.

Liu Zheng’an, General Manager of the company, expressed that leveraging the Free Trade Port’s “zero tariff” and “low tax rate” policies, the enterprise has expanded its layout in the processing and production环节 and is making every effort to promote more high-quality products to the global market.

In the biomedical industry park of Haikou National High-Tech Zone, the production workshop of Hainan Chenlin Pharmaceutical Co., Ltd. is operating in an orderly manner.

Chen Xuejun, Director of the External Affairs Department of the company, said the next step will rely on the policy advantages of the Hainan Free Trade Port to promote product volume expansion.

The expansion plans of the two pharmaceutical companies are a direct reflection of how the “zero tariff” and “low tax rate” policies reduce enterprise costs and stabilize development expectations, and also highlight the policy’s nurturing role for high-tech industries.

From a single industry to the entire island region, the continuous expansion of policy辐射力 is constantly broadening its coverage. Yun Yunyun, Director of the Duty Department of Haikou Customs, stated that the policy is key and effective because it accurately aligns with the development direction of Free Trade Port industries, effectively connecting the “zero tariff” and “low tax rate” policies with the capacity of domestic major markets, achieving efficient matching between policy supply and market demand. From the 2.3 square kilometer pilot in Yangpu Bonded Port Area in 2021 to the “three no restrictions” principle covering the whole province in 2024, the “exemption from import duties” policy has completed a three-level jump from “special supervision area—key park—entire island region.” Taking the exemption from import duties for processed value-added goods as an example, from the initial breakthrough in Yangpu Bonded Port Area to covering the entire island region, and then to the continuous optimization of the tax system, it has cumulatively reduced import duties by approximately 840 million yuan for 54 enterprises, driving the value of processed value-added re-exported goods to突破 11 billion yuan.

Industry insiders believe that the essence of the Hainan Free Trade Port’s tax policies lies in creating a world-class business environment through institutional innovation, allowing market entities to grow healthily under fair rules. As policies are further implemented, more enterprises will feel the tangible benefits brought by the construction of the Hainan Free Trade Port, jointly writing a new chapter of open development.