Starting December 18, the Hainan Free Trade Port officially launched its island-wide customs closure, entering a new stage of closed-loop operations.

How will the Hainan Free Trade Port operate after it is sealed off?

Closing the border does not mean sealing off the island; rather, it refers to transforming the entire Hainan Island into a special customs-regulated zone, implementing a liberalization and facilitation policy system characterized by "first-line" openness, "second-line" control, and freedom within the island itself.

"First-line" liberalization The “first line” refers to measures that facilitate the free and convenient import and export of goods, such as implementing “zero tariffs” on imported goods and relaxing trade regulations. The boundary between Hainan and overseas regions is referred to as the “first line.”

“Second-line” control Refers to implementing precise management for content that has been relaxed for the “frontline,” setting up 10 operational “…” Second-line port of entry Various convenient clearance measures have been implemented for goods entering the Chinese mainland; the area between Hainan and the mainland is referred to as the “second line.”

The policy benefits brought about by the closure of the border not only benefit ordinary people but also greatly benefit the freight industry.

People entering and leaving Hainan no longer need additional documents, so their travel and daily life remain unaffected, and their shopping experience has been significantly enhanced. Popular products such as cosmetics and home appliances are now more affordable. Duty-free on the outlying islands The “buy now, pick up now” model makes “Global Shopping” even more convenient.

• After the border closure, the number of duty-free product categories has expanded from 1,900 to... 6600 Multiple, with the “zero-tariff” level rising from the previous 21% to... 74%。
• Products processed and added with value exceeding 30% that are sold to the Chinese mainland are exempt from tariffs. This is a core policy of the Hainan Free Trade Port and one of its most valuable policies. Specifically, it applies to enterprises that meet the catalog of industries encouraged by Hainan. ， After being processed in Hainan using imported raw materials, the products—once their value has increased by more than 30%—can be sold to mainland China without paying import tariffs.
• Some goods that were originally subject to restrictions have had their trade controls relaxed through the “first-line” approach. You’ll be able to enter Hainan more freely, but if you enter the Chinese mainland, you’ll still need to undergo “second-tier” regulation.

It is understood that, following the closure of the border, preferential policies such as the “double 15%” corporate income tax and individual income tax rates will continue to exert their effects, further boosting Hainan’s status as an open highland and achieving a win-win situation that simultaneously improves people’s livelihoods and drives industrial upgrading.