According to figures released by Haikou Customs on Nov. 28, the Hainan Free Trade Port value-added "zero tariff" policy, which was first implemented in 2021, has resulted in sales of around 11.096 billion yuan by the 129 companies enrolled in the pilot program, with exempted tariffs adding up to approximately 860 million yuan over the last four years. Originally, the policy only covered grain, oil, and meat processing companies located inside special customs supervision zones, but has now been expanded to include pharmaceutical, coffee, and jewelry production and processing corporations across the entire province.

Recently, the Hainan Jingwei Rujiaosi Company's value-added processing accounting records were approved by Yecheng Customs, a branch of Haikou Customs. "After processing and value-added services were no longer limited to AEOs (Advanced Economic Operators) or Hainan's key industrial parks, companies located in other parts of the province were also able to enjoy policy benefits. We can now process imported raw materials into latex filament products and sell them on the domestic market with reduced or no import tariffs." According to Jingwei business manager Sheng, after the company obtained qualification as a Hainan Province processing value-added pilot company, customs provided guidance on how to improve the company’s hardware and software facilities as quickly as possible to ensure compliance with customs supervision requirements and begin production.

The value-added processing "zero tariff" domestic sales policy is one of the core policies of the Hainan Free Trade Port, and is based on the principle of "free flow through the first line and control at the second line". In July, 2021, this policy was first implemented in the Yangpu Bonded Port Area, then expanded outside of the province's special customs supervision zones in December 2022, with beneficial effects continuing to grow. After stress tests were conducted in September 2024, restrictions were removed, allowing all companies in the Hainan FTP that meet the conditions of the pilot program to benefit under the policy.

To ensure that more companies can participate, Haikou Customs has tailored policy service packages to meet the different needs of a variety of industries and collaborated with local governments and commerce departments to conduct briefings providing detailed interpretations of the value-added processing "zero tariff" policy. A special "customs / company face-to-face guidance program" was also launched, with policy briefings, online Q&A sessions, and on-site guidance providing policy interpretations and practical demonstrations guiding companies participating in the pilot program on the application process and improving compliance levels.

Next, Haikou Customs will continue to improve the effectiveness of policy implementations, expanding the scope of policy application and making the process smoother and more convenient for participating companies. Business needs will be prioritized in customs supervision and services, offering greater benefits in the implementation of the value-added processing "zero-tariff" policy and ensuring that the Hainan FTP continues to provide a worry-free and easy to navigate business environment.