Hainan FTP to launch independent customs operations on December 18

China announced on Wednesday that its Hainan Free Trade Port (Hainan FTP) will officially implement independent customs operations across the entire island starting on December 18, following approval from the Communist Party of China Central Committee.

The island-wide independent customs operation refers to the establishment of a designated area under the special supervision of customs authorities covering the whole island of Hainan.

Speaking at a news conference in Beijing, Wang Changlin, deputy head of the National Development and Reform Commission, said that the government will step up efforts in the coming months to complete follow-up preparations, help market entities fully understand the customs closure policies, and carry out related business operation testing.

Aside from certain goods entering the Chinese mainland from the Hainan FTP that require inspection, most goods, as well as all personnel, items, and means of transportation, will continue to be managed under existing regulations, with no changes before or after the implementation, said Wang.

Chinese residents traveling to the Hainan FTP for business or tourism will not need to obtain any additional documents, he added.

After the island-wide independent customs operations begin, imported zero-tariff goods will be managed under a negative list system, with the list of taxable imports replacing the previous positive list for zero-tariff items, said Liao Min, vice-minister of finance.

The scope of zero-tariff goods will expand from the current 1,900 tariff lines to about 6,600, covering approximately 74 percent of all tariff lines—an increase of nearly 53 percentage points compared with the level before the policy implementation, said Liao.