HAIKOU, April 13. /TASS/. China's Hainan finally established a system of regular duty free refueling of Chinese and foreign ships, reported the Hainan Daily.
As the local administration clarified, the official transition to the mechanism, successfully tested in pilot mode, will raise the status of Hainan's free trade port and lead to an increase in the number of ships using services in the harbors of the southernmost province of Сhina. It is assumed that the revitalization of the logistics sector will boost the growth of the number of market entities registered on the island, due to which in this part of the country the formation of a large transport hub for international land and sea container transport should take place.
According to the calculations of the Chinese transport company Cosco Shipping, when refueling 93 tonnes of duty free fuel, it can reduce costs by more than 70,000 yuan, that is, by about $ 10,000 at the current exchange rate.
"We will continue to ensure that companies are guaranteed a high level of service and create a more comfortable business climate," said Zhou Junping, secretary of the working committee of the Yangpu Special Economic Development Zone (Hainan's west coast).
According to the approved rules, vessels refueling on Hainan are exempt from both duty and VAT, as well as from income tax. The maximum amount of fuel that can be purchased without paying mandatory fees is calculated using a special formula that takes into account the duration of the trade route, fuel consumption and the speed of the floating vehicle.
According to official statistics, in 2020, the island provided 103,000 tonnes of duty free fuel to more than 160 large Chinese and foreign ships. According to the government, all work was carried out in accordance with epidemiological and fire safety standards. In 12 months, the province registered the passage of over 190,000 fishing schooners, tankers, bulk carriers, yachts, container ships and cruise ships. The flow of passengers using sea transport on Hainan exceeded 15.7 million people, and the cargo turnover reached 190 million tonnes.