The first bonded marine fuel supply operation in Chengmai County in the north of Hainan Province, was completed thanks to a reform allowing a single storage tank to serve as both an export-supervision warehouse and a bonded warehouse.

Recently, the oil tanker Haiyang Dongli took on 300 tonnes of bonded fuel oil from the bonded storage tanks of the Hainan Guosheng Petroleum Company, then supplied the fuel to the Mingyang, a Vanuatu-flagged cargo ship.

The operation marks the first bonded marine fuel supply operation in Chengmai under the “dual-function warehouse” policy, further strengthening the region’s bonded marine fuel supply system, which supports port operations.

The “dual-function warehouse” reform, which was implemented by the General Administration of Customs of the People’s Republic of China in 2025, is designed to facilitate bonded marine fuel supply by allowing the same storage tank to function as both an export-supervision warehouse and a bonded warehouse specifically for the bonded supply of domestically produced marine fuel to vessels.

Before the reform, domestically produced marine fuel had to be physically transferred from an export-supervision warehouse to a bonded warehouse before it could be supplied as bonded fuel to vessels. Under the traditional system, the two types of warehouses operated under separate customs records, and data from the two systems could not be directly interconnected. This made the transition of domestic fuel into the bonded marine fuel supply less efficient and constrained the expansion of local bonded fueling operations.

Under the new model, once domestically produced marine fuel enters a dual function storage tank, there is no need to physically transfer the fuel between tanks. Instead, an “electronic warehouse transfer” changes the customs status of the fuel from that of an export-supervision warehouse to a bonded warehouse, allowing it to be supplied directly as bonded fuel to internationally sailing vessels.

The new system significantly reduces processing times for bonded marine fuel supply while also eliminating the cargo-loss and workplace safety risks associated with secondary tank transfers and physical transportation. Companies are also able to make better use of existing storage facilities, increasing tank utilization and improving operational turnover.

“The dual-function warehouse model has simplified our entire operation, switching from a ‘two in, two out’ to a ‘one in, one out’ model, allowing fuel to be stored and then supplied directly to vessels,” said the head of bonded operations at the Hainan Guosheng Petroleum Company. “This has delivered tangible cost reductions and operational benefits for our company.”

The company’s bonded warehouse is currently the only bonded marine fuel warehouse in north Hainan, where it provides convenient fuel storage services and a stable supply of bonded fuel for international vessels passing through the Qiongzhou Strait.

To ensure the reform was implemented effectively, Yecheng Customs, under Haikou Customs, worked with local government authorities to conduct consultations and research based on the development of port-related industries and the operational needs of local businesses. Customs officials provided policy briefings, operational guidance, and practical support to help companies understand and implement the new model.

Customs authorities provided tailored guidance to businesses in regards to key procedures, including the transfer of domestic fuel between customs records, vessel fuel supply declarations, and the verification and reconciliation of operational records. These measures are expected to support the standardized and large-scale development of bonded marine fuel supply operations in the area.