The modern coffee factory in Wanning, Hainan processes raw coffee beans. (Source: Charoen Pokphand (Hainan) Xinglong Coffee Industry Development Co., Ltd)

On November 1, a batch of coffee beans was loaded onto a ship bound for Australia at Hainan's Yangpu Port, marking the successful completion of a transaction that highlights the benefits of the Hainan Free Trade Port's "zero-tariff" policies.

It was the first shipment of coffee products executed under the Hainan FTP's "zero-tariff" policy for raw and auxiliary materials utilizing the "both ends abroad" model, whereby enterprises temporarily import materials for processing in the FTP and the resulting products are subsequently exported.

In this transaction, Charoen Pokphand (Hainan) Xinglong Coffee Industry Development Co., Ltd. imported 280 kilograms of Colombian Excelso EP10% Arabica green coffee beans into the Hainan FTP. After undergoing advanced destoning, color sorting, and special roasting at their modern coffee factory in Hainan's Wanning City, the raw beans were transformed into a coffee product named "Xing'ao Hazelnut Coffee Beans" and exported to Australia.

This marks the first successful implementation of the policy in Wanning City since the release of the Circular on Adjusting the Zero-Tariff Policy for Raw and Auxiliary Materials in the Hainan Free Trade Port earlier this year, which added 297 items, including unroasted coffee beans, to the "zero-tariff" raw and auxiliary materials list.

A batch of processed coffee beans ready to be loaded on a ship bound for Australia on November.

The policy is a key component of the early-stage arrangements for the Hainan Free Trade Port. Before the launch of island-wide special customs operations of the Hainan FTP, enterprises registered in the FTP with independent legal personality are exempt from customs duty, import VAT, and consumption tax on raw and auxiliary materials imported for production and processing activities under the "two ends abroad" model.

In this particular transaction, the company enjoyed 8% and 13% reductions in customs duty and import VAT, significantly lowering raw material procurement costs and enhancing the product's price competitiveness in the international market.

The company's general manager, Ye Jian, stated that the policy advantages of the Hainan FTP have presented unprecedented development opportunities to the company.

"The most profound transformation comes from the dividends brought by institutional openness. The implementation and deepening of core policies such as ‘zero tariffs' on raw and auxiliary materials have enabled us to optimize resource allocation globally and establish a new business model of ‘procuring globally, processing in Hainan, and selling internationally.'"