Hainan's Island-Wide Special Customs Operations: Meeting ASEAN Demands for Cross-Border Maintenance

By Guo Cui/ China Report ASEAN / Updated:10:23,16-October-2026

Technicians employed by Grand China Aviation Maintenance Co., Ltd., a subsidiary of HNA Technic Co., Ltd., conduct inspections on aircraft at the one-stop aircraft maintenance industrial base in the Hainan Free Trade Port on June 7, 2024. (YUAN CHEN)

A passenger jet from Jordan satparked in the maintenance hangar at the Haikou Airport Integrated Free Trade Zone, where engineers carried out inspections and repainting work. Not far away, 24 power batteries for new energy vehicles,shipped from overseas, waited for customs clearance before entering the zone, marking Hainan's first bonded maintenance service for power batteries.

Under special customs arrangements, the Hainan Free Trade Port (Hainan FTP) is accelerating the development of a cross-border bonded maintenance service ecosystem in Haikou. It spans aviation, new energy, and medical devices, and aims to provide ASEAN companies with maintenance services that are closer to home, lower in cost, and faster incustoms clearance.

Unlocking New Opportunities with Policy Reform

In the maintenance workshop of Silongshi (Hainan) Technology Co., Ltd., located in the Haikou Integrated FreeTrade Zone, engineer Lei Bo, wearingan anti-static wristband, carefully disassembled a pair of faulty wireless bluetooth headphones shipped fromoverseas. Once the procedure wascompleted, the headphones would bere-exported.

"In the other free trade zones on the Chinese mainland, wireless bluetooth headphones are not included in the list of items eligible for bonded maintenance services," explained Miao Huage, general manager of Silongshi. The Hainan FTP has eased its trade control measures, opening a favorable policy window for high-value consumer electronics. Less than a year after its establishment, the company has completed a series of first repair orders for products such as bluetooth headphones and laptops, with clients from such countries as the U.S.,Germany, and Belgium.

Kaili Biomedical Technology (Haikou) Co., Ltd. also benefited from Hainan's Island-Wide Special Customs Operations: Meeting ASEAN Demands for Cross Border Maintenance the policy reform. On the first day of special customs operations, Li Xiaoxi, general manager of the company, received its first inbound shipment for repair, 25 pieces of medical endoscope parts and accessories. Previously, endoscopes were included in the list of goods and articles prohibited and restricted for import and export. KailiBiotechnology, headquartered in Shenzhen, previously had to provide after-sales services through overseas subsidiaries or by partnering with external maintenance providers — acostly arrangement indeed. "We project the maintenance center in Hainan to reduce our operating costs by 20 to 30 percent in the long run," said Li.

The benefits enterprises have gained stemmed from the faster rollout of institutional benefits under the island-wide special customs arrangements. On December 18, 2025, the Hainan FTP officially launched its island-wide special customs operations and released the Hainan FTP List of Goods and Articles Prohibited and Restricted for Import and Export. The list removed import licensing requirements for 60 categories of used electromechanical products and allowed bonded maintenance services at the Hainan FTP for products under 38 commodity codes — the most open arrangement of its kind in China. 

"Special policies under the Hainan General Bonded Maintenance Directory, combined with exceptional measures from the Hainan FTP, have given China's maintenance industry a unique institutional edge," commented Song Xiangqing, vice president of the Commerce Economy Association of China, and director of the Special Committee for Free Trade Ports (Zones). He sees Hainan as a potential high-end equipment maintenance hub for the entire Southeast Asia. 

Aircraft Maintenance Taking the Lead 

Within Haikou's bonded maintenance industry, aircraft maintenance is the oldest, largest, and most internationalized segment. 

The Haikou Airport Integrated Free Trade Zone has established two specialized platforms for onestop aircraft and aircraft engine maintenance. It has drawn five leading enterprises with 24 maintenance licenses from 19 countries and regions, along with many OEMs (Original Equipment Manufacturer), ranking among the top in the country. More than 30 foreign airlines from Vietnam, Thailand, Qatar, and other countries have become its long-term clients. 

"The Hainan FTP has basically established a full-chain maintenance industrial base covering major services such as aircraft overhaul, component repair, engine maintenance, and aircraft painting," said a representative of the free trade zone. 

With aircraft maintenance leading the way, the scope of bonded maintenance services in Haikou has expanded rapidly. In the automotive parts sector, CRRC International Vehicle Industry (Hainan) Co., Ltd. has achieved an annual maintenance capacity of 12,000 to 20,000 units since its establishment in May 2024. Breakthroughs also came in the electronic information, semiconductor, and medical device sectors, with bonded maintenance services for bluetooth headphones, wafers, and semiconductor devices rolled out en masse. 

As of May 2026, 24 bonded maintenance projects were operating in Hainan Province. By the end of August, 30 bonded maintenance companies had registered in Haikou, 12 of which had begun operations. Overall, the industry is shifting from isolated breakthroughs to cluster development.

A New China-ASEAN Hub 

The rise of Haikou's bonded maintenance industry holds special regional significance against a backdrop of deepening China-ASEAN cooperation. 

Hainan sits in southern China, enjoying convenient air and sea connections — linking to the Asia-Pacific to the east and reaching Southeast Asian and Middle Eastern markets to the west. 

Drawing on China's deep pool of engineers and technical talent, Hainan offers more predictable maintenance turnaround times and lower labor costs — while matching the quality of traditional hubs like Singapore and Dubai. 

The continuous advancement of the Regional Comprehensive Economic Partnership (RCEP) and the implementation of the China-ASEAN Free Trade Area 3.0 (CAFTA 3.0) have deepened industrial and supply chain integration within the region. Airlines from ASEAN countries such as Thailand and Vietnam have become regular clients of Haikou's aircraft maintenance providers, while demand for maintenance of medical devices and oilfield equipment in Southeast Asia is now being met efficiently through Haikou. 

With steady policy support and deeper integration with the ASEAN market, Haikou is emerging as a key new node in China-ASEAN service trade cooperation. For ASEAN companies, Hainan is becoming an increasingly mainstream choice for maintenance services — and an increasingly important part of their regional industrial and supply chain layouts.

Discover