Monday, 28 September 2020 | 07:17
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Opening a new chapter for the Hainan Free Trade Port

Tuesday, 15 September 2020 | 15:00

Chinese President Xi Jinping has announced that China will support Hainan in building the pilot free trade zone throughout the entire island, gradually exploring and steadily promoting the establishment of a free trade port with Chinese characteristics.

On June 1, the overall Plan for Hainan Free Trade Port was officially released to the world.
The objectives

By 2025: Free and convenient trade and investment.

By 2035: China opens up to the world. There will be free and convenient flow of trade, investment, cross-border capital, people and transportation; secure and orderly data transfers.

By 2050: A High-level Free Trade Port with Strong Global Influence in all Respects.
Early Arrangements (2020-2025):

Before 2025 the aim is to onitiate independent customs operations throughout Hainan Island.

The Rules of Origin: Free flow though the first line. Efficient control at the second line; For encouraged industries, products processed in Hainan with an added value of over 30 per cent is entitled to exemption from duties when entering the mainland.

Before 2025 full implementation of zero-tariffs: Import Duties-Import VAT-Consumption Tax;

From year 2020 there will be one negative and three positive lists on zero-tariff items. The negative list includes production equipment imported by enterprises for own use. The positive lists include ships, aircraft, other means of transport and yachts imported to the island for transportation and tourism; raw and auxiliary materials imported for production within Hainan, or in the process of trade in service of which final products would be exported to overseas markets; Imported goods consumed by residents of Hainan.

Relax offshore duty-free shopping policy: Quota raised to RMB 100,000 per person/per year; Expand Categories of Duty-Free Goods.

Reduce restrictions on cross-border trade in Service: Release the Negative List for cross-border trade in Sservice; Grant National Treatment to Overseas Service Providers.

Simplified approval investment management system: Special List to relax market access and negative list for foreign investment.

More convenient visa-free entry: Foreigner’s self-declaration, invitation and reception by local entities, 15-day visa-free stay policy to foreign tourist groups travelling by cruise ships.

Shipping Policy: Establish the International Ship Registration Center and Yangpu-Port-of –China as a port of Registry; Remove the Limitation on Foreign Shareholding Proportion for Ship Registration Body; Domestic ships registered at Yangpu-Port-of-China and Engaged in International Shipping are entitled to Export Tax Rebate; Domestic Ships with Both Domestic and Foreign Trade Goods on Board are allowed to refuel with Bonded Oil.

Air Transportation: Expand the arrangement for the Fifth and Seventh Freedom Rights of Air; Support airline companies with Hainan as their core base to expand international flight routes; Allow inbound and outbound flights to refuel with bonded aviation oil.

Facilitate cross-border data transfers: Launch pilot projects on security management of cross-border data transfers.
Source: Gulf News

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