value-added 30% free tariffs

First Batch of Value-Added Processing Using Locally Produced Hainan Goods Commences

    On December 23, at the Baoting Yezhefang Food Co., Ltd. factory in Hainan, workers in blue uniforms loaded boxes of finished coconut oil onto trucks. After loading, the freight vehicles, fully loaded with coconut oil, headed toward the “second-line port” of the Hainan Free Trade Port, ready to be transported off the island to the mainland. This marks the first shipment of locally produced goods undergoing value-added processing in Hainan since the island-wide customs clearance operation commenced.

The coconut oil, weighing 198 kilograms with a value of 32,000 yuan, benefited from the processing value-added duty exemption policy. The coconuts used in production were domestically sourced from Hainan. Zhou Fuqiong from Baoting Yezhefang Food Co., Ltd. stated: “This was our first time handling this type of business. All procedures, including filing and customs declaration, were completed smoothly under customs guidance, providing valuable experience for our future operations.”

    Following Hainan's island-wide customs closure, the value of certified locally produced goods can now be deducted from the price of domestically procured materials used by processing enterprises. This deduction is counted toward the value-added portion, making it easier to achieve the required 30% value-added rate. It also fosters closer cooperation between local producers and processing enterprises, encouraging the development of Hainan's domestic industries.

    To facilitate policy implementation in Baoting, Sanya Customs under Haikou Customs formed a team of business experts based on enterprise needs. They liaised with Baoting government departments and enterprises to help companies grasp key policy points, clarify application procedures, and provide detailed explanations of processing value-added rate calculation methods. They also guided enterprises through multiple rounds of refining their application materials. Concurrently, the team conducted on-site inspections at enterprises to understand their processing procedures and video surveillance systems. They guided enterprises through the registration process for processing enterprises, led bookkeeping establishment, and facilitated customs declarations for enterprises outside the zone, ensuring the policy's smooth implementation.

    Feng Yunyun, Director of the Tariff Department at Haikou Customs, stated that Haikou Customs will continue to focus on the needs of high-quality development in Hainan's specialty agriculture. It will deepen its “one enterprise, one policy” precision service approach, vigorously promote policy publicity and interpretation, and enhance customs clearance support services. This will encourage more local processing enterprises to fully utilize policies such as processing value-added tax exemptions, thereby contributing to the high-quality development of the Hainan Free Trade Port. 

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