HAIKOU, China, April 10. /TASS/. Thanks to duty exemptions, the new customs model at the Hainan Free Trade Port has enabled importing companies to save tens of millions of dollars in just a few months, Guan Jirong, deputy secretary-general of the Communist Party of China Hainan Provincial Committee, stated.

"Since transitioning to the new customs model [on December 18, 2025], the Hainan Free Trade Port has demonstrated steady growth and notable results. <...> More favorable opportunities for development have emerged, factors of production have become more mobile, and investment activity has increased," he said, responding to a TASS question at a press conference on the province’s development prospects for the 15th five-year plan period (2026-2030).

According to the official, Hainan authorities are successfully implementing a policy that eliminates duties on imported recycling-related products and exempts them from tariffs, while exercising more flexible control over prohibited or restricted goods. He noted that against this backdrop, the number of market entities benefiting from these preferential measures is growing rapidly, and activity in the real economy is steadily increasing.

"Since the transition to the new model through March 31, imports of goods brought into the island under zero tariffs totaled 2.021 billion yuan (approximately $295 million - TASS), while the amount exempted from tariffs reached 329 million yuan ($48 million)," the deputy secretary-general added.

According to him, the volume of goods imported into Hainan for recycling and subsequent sale on the domestic market over three and a half months amounted to 336 million yuan ($49 million), and the amount exempted from duties reached 17.25 million yuan ($2.5 million). Guan Jirong noted that China’s southernmost province is helping create more diverse production chains by relieving enterprises of fiscal burdens and reducing costs for companies in need of vehicle repairs.

Streamlining procedures and growth in inbound tourism

According to the official, all eight of the island’s port zones through which foreign trade is conducted are "operating smoothly and with high efficiency." Guan Jirong noted that the time required for customs clearance of imported goods has been reduced by an average of 28%.

In addition, the official pointed out that passenger traffic in the province has shown "explosive growth" in recent months. "More and more foreign tourists are viewing Hainan as a vacation destination they can visit on a whim, without planning ahead. Since transitioning to the new model, Hainan has recorded more than 1.021 million cross-border trips, a 37.2% increase compared to the same period last year. Of these, 234,000 were under the visa-free regime, a 53% year-over-year increase," he added.

According to the deputy secretary-general, market participants’ expectations regarding the province’s economic development have also improved recently, which is why more and more companies are "shifting from a wait-and-see stance to active participation." As he explained, against this backdrop, Hainan is successfully attracting production resources from around the world.

Guan Jirong noted that following the transition to the offshore customs model, Hainan registered approximately 96,800 new business entities - an increase of about 46% compared to the same period in 2025. Over three months, the province’s foreign trade volume grew by 33%, exceeding 82 billion yuan (about $12 billion).

"Hainan’s transition to the new customs regime has been successful. Risks are generally under control, and the potential for further development has increased. We invite investors from around the world to take advantage of the emerging opportunities," he emphasized.

On December 18, 2025, China’s southernmost province of Hainan switched to a new customs regime. This means that the list of products exempt from import duties increased from 1,900 to 6,600 items, up to 74% of the total product range. These preferences apply to virtually all enterprises, institutions, and private non-profit organizations on the island with a genuine need for imports. Unlike cargo, all passenger traffic is subject to the previous regulations. Individuals traveling to the island for business or tourism do not need additional documents.