A grain and oil company in Hainan’s Yangpu Economic Development Zone has become the first company to enjoy a specialized preferential policy benefit, getting a 410,000-yuan ($63,491) waiver on import tax.

The Hainan Auska International Grain and Oil Co. got the waiver on 500 tons of value-added soybean oil. The Yangpu Economic Development Zone is one of the 11 key areas built to boost the establishment of the Hainan Free Trade Port. It enjoys a preferential policy on imports that are processed at the Yangpu Free Trade Port to add value and then sold domestically. 

 

Aerial photo shows the hustle and bustle at the Yangpu Free Trade Port in Hainan, China’s southernmost province. (Photo by Liu Yang / Hinews)

“The policy has saved us up to about 50 percent of the total tax,” the representative of the company said, adding that they decided to set up their company in Yangpu on learning about its preferential policies, which has turned out to be a smart choice.

The exemption policy was released by the local authority on July 8, waiving import tariffs for a number of enterprises in highly-needed industries. Specifically, processing enterprises with no imported raw materials, or those with imported materials but processed to add value of 30 percent or more at the Yangpu Free Trade Port can sell their products in the rest of the country free of import tariffs. However, they still need to pay import value-added tax (VAT) and consumption tax.

The policy was explained in detail in a following document released on July 13,, clarifying the step-by-step process to implement the policy. Additionally, a press conference was held to answer questions while a special working group has been established to facilitate the enterprises wanting to enjoy the benefits.

The Yangpu Economic Development Zone has taken the lead in implementing a number of preferential policies as a pilot and model zone for free trade in Hainan. These include the processing VAT policy, allowing transiting international ships to refuel with duty-free oil, and allowing the establishment of facilities for commercial use at the Yangpu Free Trade Port. The master plan for the Hainan Free Trade Port released on June 1, 2020 details many more preferential policies.