Hainan Free Trade Port officially implements island-wide customs clearance

Effective December 18, Hainan Free Trade Port officially commenced island-wide customs closure.

What is island-wide customs closure?

The customs closure operation of Hainan Free Trade Port can be summarized in three phrases: “Open the first line, control the second line, and ensure freedom within the island.”

“First-line ports” refer to entry points from overseas into Hainan Province, while “second-line ports” denote exit points from Hainan into other mainland provinces. Following the closure, the entire island will be designated as a special customs supervision zone. Within this zone, enterprises eligible for the free trade port's preferential policies will enjoy “zero tariffs” on certain goods imported from abroad into Hainan.

To transport these goods from Hainan to other provinces within China, they must undergo regulatory inspection at “second-line ports.” The primary goods inspected fall into three categories:

• The first category comprises “zero-tariff” goods imported from abroad into Hainan Province. This category will expand from 1,900 items before the port closure to 6,600 items, accounting for 74% of all imported goods;
• The second category includes goods eligible for a 30% value-added processing tariff exemption policy;
• The third category comprises goods that have already undergone trade control relaxation at the “first-line port.”

When these three categories of goods enter other provinces via “second-line ports,” they will be subject to customs supervision.

After the border closure, how will freight vehicles clear customs here? Trucks requiring supervision at secondary ports will first undergo security screening. Those not selected for inspection will proceed directly, while selected vehicles will be scanned inside the red building before undergoing container inspections.