Hainan zero tariff rules 2026 in China-Hainan SeeHog Customs Broker Co., Ltd

Hainan's “zero tariff” policy is one of the core elements in the development of the Hainan Free Trade Port. According to the 14th Five-Year Plan, this policy aims to promote trade liberalization and facilitation through phased tariff reductions.

A key milestone occurred on December 18, 2025, when Hainan officially launched island-wide customs clearance operations, marking the entry of the “zero tariff” policy into a new implementation phase.

Below is a detailed interpretation of Hainan's “zero tariff” policy:

? Core Principle: Negative List Management

Following the island-wide customs clearance operation, the most significant policy shift is the transition from a “positive list” (specifying which goods qualify for tax exemption) to “negative list” management.

Significantly Expanded Coverage: Except for goods listed in the national “Import Taxable Commodities Catalog,” approximately 6,600 tariff items (accounting for about 74% of all goods) entering Hainan through the “front line” qualify for zero tariffs.

Catalog-listed goods: Primarily include certain consumer goods like tobacco and alcohol, resource-based products such as minerals and timber, as well as specific industrial manufactured goods and electromechanical products.

? Who is eligible (beneficiary entities)?

To qualify for zero tariffs upon import, entities must meet the following criteria:

Entity status: Enterprises or public institutions registered in Hainan Free Trade Port with independent legal person status; or approved private non-enterprise units in science and technology or education sectors.

Good standing: Not listed on the abnormal business operations list, customs dishonest enterprise list, or severe illegal and dishonest list.

?️ “First-line” Liberalization and “Second-line” Control

Hainan Free Trade Port implements a “first-line” liberalization and “second-line” control system for goods entering and exiting the port.

“First-line” Liberalization (Hainan ↔ Overseas)

Refers to the channel between the Hainan Free Trade Port and overseas regions.

Except for goods listed in the “Import Taxable Commodities Catalog,” all other goods entering Hainan via the “first-line” are exempt from import duties, import-stage VAT, and consumption tax.

“Second-line” Control (Hainan ↔ Mainland)

Refers to the channel between the Hainan Free Trade Port and the mainland.

Zero-tariff goods entering the mainland: Procedures are generally handled according to import regulations, requiring payment of import duties, import-stage VAT, and consumption tax.

Processing Value-Added Duty Exemption Policy: This is a significant exception. Goods produced by enterprises in encouraged industries, containing imported materials and achieving a processing value-added of 30% or more in Hainan, are exempt from import duties when entering the mainland via the “second line” (import-stage VAT and consumption tax remain levied according to regulations).

? Special Commodities: Transportation Vehicles and Yachts

Vehicles, vessels, aircraft, and yachts used for transportation, tourism, or other commercial operations qualify for dedicated zero-tariff policies, subject to stricter regulatory oversight.

Operational Requirements: Zero-tariff imported transportation vehicles must be registered in Hainan and primarily operate within the province. For example, aircraft and vessels must operate routes originating from or transiting through Hainan.

Mainland Access Restrictions: Vehicles may engage in passenger and cargo transport to/from the mainland, but at least one end of the route must originate or terminate in Hainan. Annual cumulative stay in the mainland must not exceed 120 days (excluding “point-to-point” or “same-day return” passenger/cargo vehicles).

? Other Key Points

Intra-island Free Circulation: “Zero-tariff” goods and their processed products are exempt from import duties when circulating among eligible beneficiaries within the Hainan Free Trade Port.

Supervision Period: To prevent asset transfers, customs supervision periods are set for “zero-tariff” transportation vehicles and self-use production equipment (e.g., 6 years for vehicles, 3 years for production equipment). Supervision automatically terminates upon expiration.

Exceptions (“Four Categories of Measures”): Goods subject to national special regulatory measures—such as tariff quota management or trade remedy actions—must comply with relevant regulations during import and circulation, even within the “zero-tariff” scope.

In summary, Hainan's “zero-tariff” policy is a systematic initiative designed to attract global resources to Hainan by substantially reducing import costs, foster local industries, and ultimately achieve the goal of free and convenient trade.

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