Duty-free product categories to increase thanks to Hainan FTP independent customs operations

HAIKOU, China, July 24, 2025 /PRNewswire/ -- A report from Hainan International Media Center:

South China's Hainan Free Trade Port (FTP) will officially begin island-wide independent customs operations on December 18, 2025, with more products to be eligible for import under the FTP's zero-tariff policy.

A press conference on the development of the Hainan Free Trade Port was held by China’s State Council Information Office on July 23.

The new customs closure system establishes an area under the independent supervision of customs authorities covering the entire island of Hainan.

Wang Changlin, deputy head of the National Development and Reform Commission, said at a recent press conference held by the State Council Information Office that after independent customs operations begin, the proportion of "zero tariff" goods in the Hainan FTP will increase from 21% to 74%. Wang added that imported products undergoing at least 30% value-added processing in Hainan will be eligible to enter the mainland tariff-free.

Vice Minister of Finance Liao Min noted that after island-wide independent customs operations begin, the number of duty-free eligible product categories in Hainan will increase from about 1,900 to around 6,600. Those eligible to take advantage of the policy will also increase to include companies, public institutions, and private non-corporate entities in the FTP with import needs, added Liao.

In April 2018, China announced the decision to develop Hainan into a pilot free trade zone. In June 2020, a master plan was unveiled to establish an initial FTP policy and institutional framework by 2025 and develop the province into a high level, globally influential FTP by 2050.

Aerial view of Haikou, capital of south China’s Hainan Province.

Over the past five years, the actual utilization of foreign capital in Hainan reached 102.5 billion yuan ($14.35 billion), with an average annual growth rate of 14.6%. A total of 8,098 new foreign-funded enterprises were established at an average annual growth rate of 43.7%. There have been 176 countries and regions that have invested in the FTP, and citizens of 85 countries are currently eligible for visa-free entry into Hainan.

Policy preparations for island-wide independent customs operations are already in place, said Feng Fei, secretary of the CPC Hainan Provincial Committee. The Ministries of Commerce and Finance, together with other departments, have issued a set of measures and lists to safeguard the ongoing implementation of the FTP's independent customs operations.