Important Hainan FTP policy benefitting business released

By Cai Rong / hiHainan / Updated: 2021-01-14,17:56

The Ministry of Finance of the People’s Republic of China, General Administration of Customs, and State Taxation Administration have jointly released an important policy for the Hainan Free Trade Port benefitting business and further speeding up customs clearance of export goods at Yangpu Port.

The Tax Rebate Policy at a Shipping Port in the Hainan Free Trade Port is applicable to cargo containers of goods shipped and declared for export by an eligible export enterprise from a port at the place of shipment (the port of shipment), carried by an eligible transport enterprise, transited through customs directly by waterway or stopping over at a designated port (port of call) and leaving China from Hainan’s Yangpu Port (port of departure). The type of tax rebate is a value-added tax. 

According to the Policy, there are 15 ports of shipment across China. These ports of shipment are also ports of call. Cargo that is loaded at ports of call should be cargo containers that have been declared for export and which have departed from the country through a port of departure. 

It is noted that dangerous cargo is not eligible for the tax rebate policy at a port of departure.

Features of the Tax Rebate Policy at a Port of Shipment in the Hainan Free Trade Port: 

1. Hainan has the most ports of shipment in China, which can be either ports of shipment or ports of call.

2. Ports of shipment and ports of call are interchangeable. Therefore, shipping companies can flexibly adjust their route plans according to market demand, and export companies have more choices.

3. Cargo may be loaded or unloaded at ports of call.

4. Time required for tax rebates for companies can be shortened and capital turnover efficiency of export companies can be improved. Export cargo is eligible for a tax rebate at ports of shipment (or ports of call), no longer at the ports of departure. Therefore, companies can obtain tax rebate funds earlier to reduce capital costs and improve capital turnover efficiency.

5. The advantages of the Yangpu Port integrated policies are clear. Yangpu Port’s customs clearance efficiency will be further improved as a departure port if tax rebates can be applied at ports of shipment (or ports of call). At the same time, many preferential policies can be enjoyed in Yangpu Port, for example, when China Yangpu Port is set as the international port of registry, domestically built ships engaged in international shipping are entitled to export rate rebates, and domestic ships with both domestic and foreign trade goods on board which transit at Yangpu Port are eligible to refuel with bonded oil required for the voyage.

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