(ECNS) - The Hainan Free Trade Port will begin islandwide special customs operations on Thursday, the Hainan provincial government said, a milestone in efforts to position the island province as China's gateway to the world.
The reform is part of broader efforts to expand opening-up policies, with Hainan positioned as a testing ground for institutional measures linking China with overseas markets.
Wang Changlin, deputy head of China's National Development and Reform Commission (NDRC), said the islandwide customs operation is a landmark project of Hainan Free Trade Port construction and an important step toward opening up, carrying milestone significance.
Under the new arrangement, the entire island of Hainan will be designated as a special customs supervision zone. The system is structured around "opening the first line," "controlling the second line," and allowing free circulation of goods within the island.
The "first line" refers to the national border between overseas markets and the free trade port. Overseas markets include foreign countries and regions, as well as Hong Kong, Macao, and Taiwan. The "second line" refers to the internal boundary separating the free trade port from the Chinese mainland.
Once the customs operations take effect, Hainan's trade with overseas markets will be regulated under the first-line framework. The province will implement two key catalogues: a prohibited and restricted list specifying goods banned or limited for import and export, with all other items allowed to circulate freely; and a zero-tariff negative list, under which goods not listed will be exempt from import duties when entering the free trade port.
Regarding second-line controls, Yu Tao, director of the Hainan Free Trade Port Research Center, said goods entering Hainan under zero-tariff policies will not be permitted to flow freely into the Chinese mainland. Import duties will be levied if such goods enter the mainland market.
Authorities say the customs operations are intended to support the gradual rollout of tax and tariff policies, including zero tariffs on selected goods, lower tax rates, and simplified tax procedures. Businesses operating in the province are expected to gain broader access to preferential policies as eligibility requirements are expanded.
The number of zero-tariff goods is expected to increase significantly with the customs operations, covering about 74% of tariff lines and benefiting key industries including pharmaceuticals and high-end food processing. The scope of eligible entities will also be expanded to cover nearly all enterprises and institutions in the province with genuine import needs.
In addition, Hainan implements the dual 15% tax policy, under which qualified enterprises and core talent can enjoy a 15% income tax rate.
Officials have said the reforms are aimed at leveraging Hainan's geographic location, with economic engagement with ASEAN countries identified as a focus area.
(By Gong Weiwei)
京公网安备 11010202009201号