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Governor of Hainan explains the principle of closing customs points on the island by 2025

In January, the Hainan administration announced that by 2025, all customs border posts on the island would cease to operate under their current regime

HAIKOU, June 23. /TASS/. South China's Hainan will abolish duties on most goods and services by 2025, as well as complete all customs checkpoints in accordance with a strategy of "moving from exceptions to a general rule", announced the governor of Hainan Feng Fei.

“Currently, the zeroing of duties on imported goods is carried out on Hainan mainly on the basis of exceptions to the general rule. However, after a new system is launched [in 2025], which provides for the closure of customs points, fees on a limited list [of goods and services] will be taken on a leftover basis (in the absence of barriers in relation to most items of the commodity nomenclature)," he said at a press conference organized by the press service of the Chinese State Council.

As the governor specified, at the same time, the Hainan administration is going to pursue a policy to reduce the fiscal burden on individuals and enterprises that are registered on Hainan. The official noted that this is primarily about the income tax on companies, local residents and foreigners who meet the criteria of Hainan's free trade port.

In addition, according to Feng Fei, the provincial authorities are planning to refund VAT and consumption tax paid on products that will be imported to the island from mainland China for the purpose of recycling or simply selling.

In January, the Hainan administration announced that by 2025, all customs border posts on the island would cease to operate under their current regime. According to the secretary of the provincial party committee Shen Xiaoming, by 2023 all the necessary conditions will be created in order to do so, and then within two years the authorities plan to agree on the secondary details of the new mechanism. In three and a half years, all the Hainan residents will be classified as offshore population with a special legal status that differs from all other citizens of mainland China.

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