Overview
- Hainan’s free trade port began island-wide customs closure on December 18, formally converting the entire island into a special customs supervision area.
- Authorities clarified that closure does not mean sealing the island, defining flows with the outside world as the first line and with the Chinese mainland as the second line.
- A package of rules took effect, including customs supervision measures, a prohibited and restricted goods list, an import taxable goods catalogue, and policies governing tax treatment for goods moving across the two lines.
- Zero tariffs outside the import taxable catalogue, lower rates and a simpler tax system will roll out progressively, expanding benefits for enterprises and lowering consumer costs in Hainan.
- Provinces are moving to align, with Zhejiang companies eyeing compliant separation of orders, settlement and logistics plus new openings in services such as cloud, telemedicine and online education, while Henan promotes a Hainan–Henan–ASEAN logistics corridor via Zhengzhou Airport and China–Europe freight trains.