Since the Hainan Free Trade Port began island-wide special customs operations on December 18, 2025, sales of locally processed gold and jewelry products to the Chinese mainland have grown rapidly. According to figures released by Haikou Customs on October 15, sales of finished pearl products worth a total of 120 million yuan had been made to buyers on the mainland under the value-added processing scheme by the end of September.

The rise has been driven by the Hainan FTP's import-duty exemption for value-added processing. Under the policy, goods produced by companies in encouraged industries using imported materials are exempt from import duties when sold to buyers on the Chinese mainland, provided that processing in Hainan adds at least 30% to the product’s overall value. Import-stage value-added tax and consumption tax remain payable in accordance with regulations.

The import-duty exemption for value-added processing is one of the Hainan Free Trade Port's key preferential policies. Pictured is Haikou, the capital of Hainan Province.

Take pearl jewelry manufacturing, for example. Unprocessed pearls are subject to a 21% import tariff. A company importing 700,000 yuan worth of unprocessed pearls could save more than 140,000 yuan in taxes when the finished products enter the mainland through Hainan's "second-line" customs ports, provided the products qualify for the exemption. For industries such as pearl jewelry manufacturing, which depend heavily on imported materials, the policy directly reduces raw material procurement costs.

To help businesses take advantage of the policy, Haikou Customs provides targeted guidance on matters such as eligibility registration and customs declarations, and has also conducted simulations of the entire customs clearance process, including cargo declarations and inspections in order to help companies identify and address potential bottlenecks.

Businesses are also benefiting from faster customs clearance. Hainan Baoji Jewelry Company obtained advanced Authorized Economic Operator (AEO) certification in September, becoming the third gold and jewelry company in Sanya to receive the designation, following Zijin Gold Technology (Hainan) Company and Hainan Heren Pearl Company. A representative of Baoji Jewelry said the certification provides access to streamlined customs procedures, allowing faster clearance for both imports entering Hainan through the "first line" and goods leaving for the mainland through the "second line". Shorter turnaround times have given the company a clear operational advantage.

Hainan is also developing industry clusters focused on advanced gold and jewelry processing in key development zones, including Yazhou Bay Science and Technology City in Sanya. The gold and jewelry industrial park there offers local businesses end-to-end services covering zero-tariff imports of raw materials, bonded design and processing, and import-duty-free sales to the mainland.

Meanwhile, Zijin Sanya Gold and Jewelry Industrial Park, located in the city's Tianya District, is home to Hainan's only large-scale gold and silver refinery. The facility refined 12.86 metric tons of gold in 2025, generating output worth more than 10 billion yuan.

In May, Hainan held a pearl and jewelry industry matchmaking event in Zhuji, Zhejiang Province, where five Zhejiang-based jewelry companies signed agreements to establish operations at Hairun Gold and Jewelry Industrial Park. These businesses are involved in pearl processing, gemstone setting, and gold jewelry manufacturing.