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Hainan FTP Sees Zero-Tariff Imports Exceed over 400 Million Yuan in First Week of Special Customs Operations

Issue Date:2025-12-29 Source:GACC Scan QrCode to View

 

 

Pictured: On December 23, Sanya Customs, the subordinate Customs of Haikou Customs, provided on-site guidance to help a company improve their customs declaration documents.

 

 

Pictured: On December 24, officers from Sanya Customs, the subordinate Customs of Haikou Customs, conducted routine inspections at a duty-free store.

 

 

In the opening week of the Hainan Free Trade Port's (FTP) island-wide special customs operations, zero-tariff imported goods at the "first line" surged past 400 million yuan, while domestic sales of value-added processed goods for tariff exemption at the "second line" reached over 20 million yuan, according to Haikou Customs figures for December 18–24.

On December 23, workers at Hainan Baoting Yezefang Food Co., Ltd. packed cartons of coconut oil for shipment. Hours later, the cargo passed through the centralized "second-line" port inspection facility at Haikou's Xinhai and Nangang Ports, bound for Guangzhou. The 198-kilogram batch, produced entirely from Hainan-origin coconuts, marks the first value-added processing shipment to leverage locally sourced materials since the Hainan FTP's island-wide special customs operations took effect. "Everything from registration to customs clearance was smooth, and we've gained valuable experience for future operations," said Zhou Fuqiong, an executive at the company. The move highlights a significant policy advantage: the value of locally sourced materials can now be deducted from procurement costs for registered value-added processing enterprises, making it substantially easier to meet the 30% value-added requirement and fostering growth in Hainan's local industries.

The Hainan FTP has implemented a series of new opening-up policies, including zero-tariff treatment and low tax rates, attracting more foreign trade entities to invest and start businesses in Hainan. Haikou Customs reported 1,972 new foreign trade enterprises registered in the first week of the island-wide special customs operations, a 2.3-fold year-over-year increase. To date, more than 30,000 new customs-registered organizations have been added for the full year, up over 40% compared to last year. The surge reflects enterprise confidence in the Hainan FTP's development trajectory following the implementation of the special customs operations. "Most of our raw materials come from overseas," said a company employee visiting customs for advice on declaration. "With the duty-free value-added processing policy, our production costs have dropped substantially, and our products' market competitiveness has improved significantly."

Market confidence and consumer enthusiasm have surged following a new round of offshore duty-free policy adjustments, which came one month before Hainan's special customs operations took effect. The revised policy now extends duty-free benefits to all departing travelers, covers 47 merchandise categories, and permits six domestic product lines—including ceramics and tea—to be sold in offshore duty-free stores. The combined effects of multiple policies, coupled with the favorable momentum brought by the Hainan FTP's special customs operations, have sparked a new surge in Hainan's offshore duty-free shopping market. According to Haikou Customs statistics, from December 18 to 24, offshore duty-free sales stood at 1.1 billion yuan from 165,000 shopping visits purchasing 775,000 items—year-over-year increases of 54.9%, 34.1%, and 11.8%, respectively, fully demonstrating the stimulative effect of the special customs operations on the consumer market. Russian traveler Ivanova, among the first to enter under the new visa-exemption policy for the Hainan FTP, experienced the transformation firsthand. While shopping with a dedicated guide for Chinese tea and ceramics, she reflected: "My family loves Chinese products. Previously, Sanya purchases required separate tax rebate applications. Now I can shop duty-free directly—as seamless as the visa-free entry process itself."

The Master Plan for the Construction of Hainan Free Trade Port calls for more liberal air transport policies, including trials of the Seventh Freedom of the Air. On December 21, flight DV481 departed Sanya Phoenix International Airport bound for Prague, Czech Republic—marking China's first operational Seventh Freedom route. The launch underscores China's commitment to high-level aviation liberalization and significantly strengthens the Hainan FTP's standing as an international aviation hub. The expanded route network is expected to facilitate regional economic and trade cooperation and cultural exchange while amplifying the FTP's magnetic appeal. During the opening week of the special customs operations, Haikou Customs oversaw a total of 76,000 travelers passing through the airport's air border.

Since the launch of the island-wide special customs operations at the Hainan FTP, Haikou Customs has focused on critical operational areas to ensure a smooth opening week. The authority has systematically guided enterprises in leveraging preferential policies, offering detailed explanations of zero-tariff benefits and duty-free domestic sales of value-added processed goods while coaching policy beneficiaries and logistics providers on standardized declaration procedures for efficient customs clearance.

Gao Ruifeng, Director General of Haikou Customs, stated that Haikou Customs will closely follow the principle of "steadily expanding institutional opening-up," build a world-class customs supervision model, optimize data sharing, strengthen operational coordination, and enhance technology-enabled capabilities. Aligned with Hainan's strategic positioning of "three pilot zones and one center," Haikou Customs will engage with the business community, respond to their concerns, and address their difficulties. Also, it will actively promote further optimization of the business environment in the Hainan FTP, ensuring that policy benefits are maximized, supporting Hainan's high-level opening-up and high-quality development, and contributing to making the Hainan FTP a key gateway leading China's opening-up in the new era.

 

 


Disclaimer:The above content is translated from Chinese version of GACC. The GACC version shall prevail.

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