Hainan Key Industrial parks and Investment Guide; Haikou Integrated Free Trade Zone
Location and Resources
The Haikou Integrated Free Trade Zone (HKIFTZ, formerly known as the Haikou Bonded Zone) is Hainan's only comprehensive bonded zone and one of its two special customs supervision areas. Located in the Laocheng Economic Development Area, the HKIFTZ lies west of Haikou city. It covers an area of 1.93 square kilometers, and has a living area of 182 hectares.
Highly convenient and readily accessible via a complete network of modern (ocean, land, and air) transport systems, the zone is an ideal location for an international business hub. Adjacent to Macun Port (a national first-tier port), the HKIFTZ is 30km from Xiuying Port; 5km from the Haikou Expressway; and, less than 15km from the three high speed rail stations.
The HKIFTZ is well equipped with the “five infrastructure connections” (roads, water and sewer, electricity, communications, and gas) and one already leveled ground ready for construction. Furthermore, planning and building of a 5G “Smart Zone” is underway.
Developing Positions
Thanks to its highest degree of economic openness and largest build-up of foreign businesses within Hainan, the zone acts as a premier component for the Hainan Free Trade Port. It aims to build up five centers with global influence and competitiveness for processing and manufacturing, R&D and design, logistics distribution, inspection and maintenance, and sales service.
Utilizing resources from both domestic and international markets, the zone will vigorously develop industries in fields such as low carbon manufacturing, international commodity warehousing and logistics, cross-border e-commerce, parallel vehicle import, financial leasing and outsourcing services, international artworks exhibition and auction, R&D and design and testing and maintenance.
Achievements
In 2019, the Haikou Integrated FTZ achieved remarkable results by taking multiple measures to promote the degree of its export-oriented economy. Operating income that year was 48.4 billion yuan ($7.37 billion), up 101.7 percent year-on-year. Tax revenue was 2.11 billion yuan, up 13 percent year-on-year, and the value of imports and exports hit 9.28 billion yuan, accounting for about one-third of that in Hainan province and up 134 percent year-on-year. There were 48 new foreign-funded enterprises, up by a factor of 1.3 year-on-year, and actual utilization of foreign capital reached a record high of US$186 million.
Policies
The Haikou Integrated Free Trade Zone enjoys a series of preferential policies：
(1) In accordance with their types of trade, goods shall enjoy policies such as being bonded, and tax exemptions and refunds;
(2) Preferential policies on selected tariffs (tariffs on goods to be sold to the domestic market could be chosen from either a components/raw materials tariff or a final product tariff) and the promotion of international trade can be adopted in the zone.
(3) The various industrial policies issued by Hainan province and Haikou city can be implemented in the zone.
(4) Based on associated outcomes (such as revenue, taxation, and employment) which it will generate, the “one company, one policy” system can be employed by any company.
(5) The zone has favorable policies to encourage industries such as finance and leasing, cold chain logistics for imported wine, cross-border e-commerce and the diamond trade.
(6) Enterprises in the HKIFTZ can enjoy the benefits of ordinary taxpayer VAT qualification; works of art may be carried into the zone by ‘tourists’, and taken out with ‘credit guarantees’ in bonded status. Imported goods can enter the Zone first and then receive testing, and exit the Zone upon sampling. The integration of online and offline cross-border e-commerce, combined with the newly approved TSR 20 Futures Designated Delivery Warehouse, further showcases the innovation and vitality of the zone.
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