free tariff to Hainan

Hainan's Customs Closure Policy and Global Products' “Zero Tariff” Entry Details

Hainan Free Trade Port officially commenced island-wide customs closure operations on December 18, 2025. This landmark event signifies the entire island becoming a customs-supervised special zone, centered on establishing a policy framework featuring “open frontiers, controlled backlines, and island-wide freedom.” For global products, the tariff threshold for entering Hainan has undergone a fundamental transformation.

Following the closure, the rules governing global products entering Hainan to enjoy “zero tariffs” have shifted from the previous “positive list” approach to **negative list management**—the most crucial detail.

Specifically, the policy no longer enumerates exempted goods individually but establishes an Import Taxable Goods Catalog. Simply put, goods not listed in the catalog entering Hainan through the “first line” are exempt from import duties, import-stage VAT, and consumption tax.

This shift has significantly expanded the coverage of “zero-tariff” goods from approximately 21% before closure to 74% of all tariff items, encompassing the vast majority of production materials and consumer goods. Only a limited number of specific goods, such as tobacco, alcoholic beverages, certain resource-based products, and specific mechanical and electrical products, remain subject to taxation within the catalog.

To successfully benefit from this policy, global products entering Hainan must meet the following key conditions:

1.  Defined Channel: The “first-line” channel refers to the entry and exit points between the Hainan Free Trade Port and overseas regions. Only goods entering through this channel qualify for the “zero-tariff” policy.

2.  Compliant Entities: Importers must be enterprises, institutions, or qualified private non-enterprise units registered in Hainan Free Trade Port with independent legal person status. These “beneficiary entities” are designated and dynamically adjusted by the Hainan Provincial People's Government.

3.  Non-Prohibited/Restricted Items: Products must not fall under the “List of Prohibited and Restricted Import/Export Goods and Items for Hainan Free Trade Port.” Goods not on this list will enjoy highly liberalized entry and exit.

It is important to note that the “zero tariff” applies solely to the act of bringing products into Hainan. If these duty-free products subsequently enter the mainland market (via the “second-line” channel), import duties must be paid according to regulations, unless they undergo processing in Hainan that adds more than 30% value, thereby qualifying for the processing value-added duty exemption policy.

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