HAIKOU /China/, October 18. /TASS/. The Hainan Free Trade Port, with its preferential policies and efforts to optimize the business environment, is attracting the attention of the global community, the Hainan Daily newspaper reported.
In particular, the publication noted the increasingly extensive coverage in international media of news related to Hainan’s intensive development and its transition to an offshore customs control model. As highlighted, the island is becoming a “new frontier” in implementing the Chinese government’s policy of openness.
According to the newspaper’s authors, in recent years, the authorities of Hainan Province have managed to establish the political and institutional framework necessary for actively attracting foreign investment and implementing large-scale projects with the participation of other countries. At the same time, trade barriers are being reduced, and the added value of goods made in China’s southernmost region is increasing.
As stated by Wang Fengli, Deputy Director of the Office for Deepening Reform under the Hainan Provincial Party Committee, all preparatory work for the province’s transition to the new customs control system has been largely completed. According to him, local seaports are already essentially ready to operate under the offshore model.
The Hainan authorities recalled that the new customs framework will eliminate duties on thousands of product categories, including nearly all industrial equipment and raw materials. As noted, this will allow importers to significantly reduce costs. In addition, tax incentives will create extensive opportunities for the modern services sector, high-tech industries, alternative energy, and tourism.
Starting from December 18, Hainan will officially transition to the new customs system of the Free Trade Port. This means that in the near future, the list of duty-free goods imported into the province will expand from 1,900 to 6,600 items – covering up to 74% of all product categories. Preferential terms will apply “to virtually all enterprises, institutions, and private non-profit organizations on the island that have genuine import needs.” All passenger flows will continue to be regulated according to existing rules: those traveling to the island for business or tourism purposes will not require additional documents.