- Hainan province in China has launched a separate customs regime allowing most overseas goods to enter tariff-free.
- The new system creates two customs boundaries: one between Hainan and overseas markets, and another between Hainan and mainland China.
- Goods entering Hainan are exempt from import duties, VAT, and consumption tax, but items sent from Hainan to the mainland are taxed as imports.
- About 6,600 types of goods (74% of taxable imports) can now enter Hainan with zero tariffs.
- The move aims to develop Hainan as a free-trade port and strategic buffer zone amid global trade tensions, supporting China’s “dual circulation” strategy.
Source: scmp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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