On March 1st, the National Development and Reform Commission, along with the Ministry of Finance and the State Taxation Administration, issued the “Encouraged Industries Catalogue for the Hainan Free Trade Port (2024 Edition).” This catalogue came into effect on March 1st, 2024, simultaneously abolishing the previous “Encouraged Industries Catalogue for Hainan Free Trade Port (2020 Edition).”
Question: What are the main changes in this revision?
Answer: The “Catalogue (2024 Edition)” continues to follow the structure of “existing national catalogue + additional regional catalogue. The “current national catalogue” includes encouraged industries from the “Guidance Catalogue for Industrial Structure Adjustment” and the “Catalogue of Industries for Foreign Investment,” both of which are executed according to their latest versions.
The “additional regional catalogue,” based on the actual needs of Hainan, focuses on key industries such as tourism, modern services, and high-tech industries. It has been further revised and improved, comprising a total of 14 major industry categories and 176 items. Compared to the previous version, it has added 33 items, with new content mainly concentrated in areas such as cultural tourism, new energy, pharmaceuticals and healthcare, aerospace, and ecological protection.
Question: What preferential policies can enterprises engaged in encouraged industries enjoy?
Answer: The “Overall Plan for the Construction of Hainan Free Trade Port” issued by the CPC Central Committee and the State Council states: “For enterprises registered and substantially operated in the Hainan Free Trade Port engaged in encouraged industries, corporate income tax shall be levied at a reduced rate of 15%.” Additionally, “For goods produced by encouraged industry enterprises in the Hainan Free Trade Port, which do not contain imported components or contain imported components with a value-added processing exceeding 30% in Hainan Free Trade Port (‘second-line’) before entering the mainland, import tariffs shall be exempted, and import value-added tax and consumption tax shall be levied according to regulations.” Encouraged industry enterprises meeting the requirements can enjoy the above-mentioned preferential policies as stipulated in relevant documents.
Question: How are ambiguities resolved if they arise during the implementation of the “Catalogue (2024 Edition)”?
Answer: Hainan Province is the main executor of the “Catalogue (2024 Edition).” During the implementation process, departments such as taxation in Hainan Province are responsible for determining whether a company’s main business falls within the scope of the “Catalogue (2024 Edition).” If there are situations where it’s difficult to make an accurate determination, the taxation departments in Hainan Province can request the provincial development and reform department for clarification. The provincial development and reform department should provide opinions within the specified time frame.
Hainan Free Trade Port Encouraged Industries Catalogue (2024 Edition)
To implement the “Overall Plan for the Construction of Hainan Free Trade Port” and steadily advance the construction of the Hainan Free Trade Port, this catalogue is formulated in accordance with the actual situation in Hainan Province. The catalogue consists of two parts: firstly, encouraged industries from the existing national industrial catalogue, and secondly, newly added encouraged industries for the Hainan Free Trade Port. This catalogue applies to enterprises engaged in production and operation within the Hainan Free Trade Port, with foreign-invested enterprises following the “Catalogue of Industries for Foreign Investment.” Effective from March 1, 2024, this catalogue replaces the “Encouraged Industries Catalogue for Hainan Free Trade Port (2020 Edition).” As per the needs of the Hainan Free Trade Port construction, timely revisions will be made to this catalogue.
Encouraged industries from the existing national industrial catalogue:
(1) Encouraged industries from the “Guidance Catalogue for Industrial Structure Adjustment.”
(2) Industries from the “Catalogue of Industries for Foreign Investment” are also included. Both catalogues are to be executed according to their latest revised versions.
Newly added encouraged industries for the Hainan Free Trade Port:
(1) Agriculture, Forestry, Animal Husbandry, and Fisheries
1. Construction and operation of a quality assurance system for aquatic products
2. Establishment of tropical economic forest bases
3. Protection and sustainable utilization of medicinal plant resources (excluding restricted or eliminated items from the “Guidance Catalogue for Industrial Structure Adjustment”)
4. Integration of agriculture and industry through initiatives such as agricultural-light complementation
(2) Manufacturing Industry
5. Deep-sea aquaculture, processing industry, and demonstration application of equipment
6. Processing of deep-sea fish oil, protein powder, chitosan, and other aquatic products
7. Deep processing of imported food such as beef, mutton, milk, frozen products, and bird’s nests
8. Deep processing of tropical agricultural and forestry products
9. Production of pharmaceuticals, green building materials, and deep processing of agricultural and forestry products (excluding commodities under national quota management)
10. Mechanism sand production (integrated production of construction stone mechanism sand with an annual production of over 1 million cubic meters of mechanism sand, encouraged to utilize secondary resources such as waste stone, tailings, construction waste, etc., under the premise of quality assurance)
11. Research, development, manufacturing, maintenance, and supporting industries of yachts, cruise ships, research, and construction of new energy and clean energy-powered ships
12. Blending and application of low-sulphur oil and biomass oil
13. Research and application of biomass materials
14. Deep processing of organic chemical raw materials (excluding restricted or eliminated items from the “Guidance Catalogue for Industrial Structure Adjustment”)
15. Research and production of cosmetics (mercury content not exceeding one millionth)
16. Manufacture of special vehicles (excluding restricted or eliminated items from the “Guidance Catalogue for Industrial Structure Adjustment”)
17. Manufacturing of general equipment (special vehicles for new energy production)
18. Manufacture of off-road recreational vehicles and accessories (new energy)
19. Manufacture of motorcycles and important components
20. Research and production of educational teaching instruments
21. Research and production of environmentally friendly coatings for construction and marine protection
22. Research and manufacturing of equipment for marine renewable energy
23. Research and application of space food, space biomedicine, and space medicine
24. Research and application of deep-sea search and rescue and salvage equipment and technology
25. Research and manufacturing of special dry-type transformers, reactors, inverters, reactive power compensation, power supply complete sets of equipment, and ultrafiltration membrane water purification equipment
26. Design, processing, and production of traditional handicrafts
27. Research and production of medical instruments and equipment with independent intellectual property rights
28. Research and production of medical devices, production of medical emergency protective materials (excluding restricted or eliminated items from the “Guidance Catalogue for Industrial Structure Adjustment”)
29. Manufacturing of precision mechanical watches, mechanical clocks, components, smart watches, and components
30. Processing of precious gemstones and manufacturing of jewellery
31. Research, manufacturing, inspection, maintenance, sales, and supporting industries related to marine oil exploration, development, and production equipment
32. Research, manufacturing, maintenance, operation services, and supporting industries of aircraft, aircraft engines, and aircraft products, aircraft modification, disassembly, and remanufacturing
33. Research, manufacturing, maintenance, and operation of aerospace transportation systems, spacecraft, and ground facilities, space resource exploration, and application
34. Special foods (infant formula, health foods, special medical use foods)
35. Research and production of generic drugs (excluding restricted or eliminated items from the “Guidance Catalogue for Industrial Structure Adjustment”)
36. Production and operation by holders of drug marketing licenses and registrants of medical device registrations
37. Manufacturing of advanced and applicable complete sets of equipment for pharmaceuticals and biologics
38. Research and equipment manufacturing of offshore wind turbines with a capacity of 8 megawatts and above
39. Operation and maintenance of offshore wind power generation
40. Research and manufacturing of new energy storage technology and equipment
41. Production and manufacturing of general components for automobiles, ships, and construction machinery (excluding restricted or eliminated items from the “Guidance Catalogue for Industrial Structure Adjustment”)
42. Manufacturing of diving and salvage equipment
43. Research and manufacturing of children’s safety seats
44. Manufacturing of instruments, meters, wires, cables, optical cables, electrical equipment, electrical machinery, and equipment related to intelligent manufacturing (excluding restricted or eliminated items from the “Guidance Catalogue for Industrial Structure Adjustment”)
45. Research and manufacturing of optoelectronic technology and products (including preform rods, semiconductor light-emitting diodes, optical fibres, fibre optic connectors)
46. Research and development of products and technologies for the secondary utilization of power batteries for new energy vehicles
47. Development and production of beverages, comprehensive development and utilization of fruit residues, tea residues, coffee residues, etc. (excluding restricted or eliminated items from the “Guidance Catalogue for Industrial Structure Adjustment”)
(3) Construction Industry
48. Construction and maintenance of port terminals
49. Construction and maintenance of coastal deep-water channels, breakwaters, inland waterways, and navigation facilities
50. Connectivity of river, lake, and reservoir water systems and integrated rural water system improvement projects
51. Operation and maintenance of space launch sites
52. Construction and maintenance of coastal public anchorages
53. Construction of biodiversity conservation projects
54. Construction of outdoor sports infrastructure such as marinas for sports boats
55. Research, production, and demonstration projects of integrated application technologies for renewable energy in buildings
56. Marine oil and gas engineering
(4) Wholesale and Retail Industry
57. Construction of agricultural and forestry product trade marketing centres
58. Operation and informationization transformation of commercial facilities such as brand experience stores, shopping centres, chain supermarkets, chain convenience stores, smart stores, theme malls, community businesses, large-scale comprehensive wholesale markets, and professional commodity wholesale markets
59. Series services for agricultural and forestry products entering supermarkets
60. Commodity trading (excluding commodities under national quota management)
61. Trade brokerage, agency, and services
62. Offshore new international trade (technology-based services)
63. International seed trade
64. Construction and operation of auction companies
(5) Transportation, Warehousing, and Postal Services
65. Passenger transportation by road, cruise, yacht, and boating industries and services
66. Railway passenger and freight transportation, intermodal transportation between rail and water, and high-speed rail express transportation
67. Operation of warehousing and fresh-keeping cold chain logistics distribution centres for agricultural, forestry, and aquatic products, food, and pharmaceuticals
68. Ship registration, management, maintenance, inspection, testing, and related services, including cruise and international shipping, aircraft material supply, ship fuel and natural gas supply, ship supplies, and bonded refuelling and LNG bunkering services for maritime and aviation transportation
69. Supply of special fuel and gas for aerospace use
70. Waterborne passenger and freight transportation and auxiliary services, port loading and unloading, warehousing, tugboat, tallying services, cruise port operations, and cruise transportation services
71. International freight forwarder services
72. International express logistics
73. International air cargo services
74. International line calling, container transshipment, container assembly and disassembly services
75. Logistics, trading markets, and derivative businesses for international aircraft and materials
76. General aviation short-haul transportation
77. Application of drone logistics distribution
78. Development and operation management of global consolidation and distribution systems
79. International freight forwarding, ship agency, customs declaration, and inspection-related agency services
80. Integrated services including warehousing, transportation, freight forwarding, ship agency, picking, packaging, loading and unloading, sorting, handling, circulation processing, distribution, reverse logistics, and information processing
81. Research, development, and operation of infrastructure and intelligent system technologies for new energy vehicle charging and swapping
82. Operation of urban smart parking facilities, research, and operation of smart parking system technologies
(6) Accommodation and Food Service Industry
83. Hotels, specialty small and medium-sized family inns, rural homestays
84. Development and promotion of various shared living products such as timeshare vacations, online rentals, and house sharing
85. Development of branded and chain-operated specialty dining establishments
Information Transmission, Software, and Information Technology Services Industry
86. Research and commercial application of 5G and 6G technologies
87. Research and application of basic hardware and software such as general or high-end processors, memory, operating systems, and databases
88. Research and application of software and hardware product testing and verification tools
89. Internet information services
90. Internet platforms
91. E-commerce (including cross-border e-commerce)
92. Development and application of industrial software
93. Open-source software communities
94. Research and application of quantum information technology
95. Research and application of metaverse technology
96. Research, testing, and application of vehicle networking and autonomous driving technology
97. Research and development of digital highways and intelligent transportation technology
98. Application of Beidou satellite navigation
99. Construction and maintenance of submarine optical cables
100. Construction of electronic sports online service platforms
101. Research and manufacturing of biochips and related data acquisition and processing equipment
102. Research and application of network and data security technology products, network and data security services
103. Application of technology and methods for data asset confirmation, registration, and transaction
104. Production, distribution, trading, and development of derivatives for animation and games
105. Research and development of technology for providing communication transmission, navigation, positioning, surveying and mapping, meteorology, geological exploration, and space information application services using satellites
106. Development of internet map service software, geographic information system software, surveying and mapping software, remote sensing software, navigation and location service software, map plotting software, etc. Research and development of geographic information processing, geographic information system engineering services, navigation and location services, etc.
(7) Financial Industry
107. Financial intermediary services such as corporate credit reporting, credit enhancement, and credit rating
108. Financial information services such as financial news and financial data
109. Construction of a two-way open service system for cross-border investment and financing
110. Trading, financing, clearing, settlement, risk management, and information services related to spot (including warrants), insurance policies, prices (indexes), and related over-the-counter derivatives
111. Licensed micro-loan financial services for serving agriculture, rural areas, and farmers, as well as small and micro-sized enterprises and individual businesses
112. Financial services related to shipping
113. Development, application, and service output of financial technology products approved and regulated by financial management departments
114. Personal insurance, reinsurance, mutual insurance, self-insurance business, and insurance intermediary business
(8) Rental and Business Services Industry
115. Maritime services including shipping arbitration, shipping brokerage, shipping consultancy, shipping transactions, shipping information services, marine loss adjustment, crew services, maritime training, ship transactions, ship leasing, etc.
116. Exhibition services, quality inspection technical services
117. Trade of luxury goods such as diamonds, jewellery, precious metals, design and processing technology, and related services
118. Cultivation of professional social organizations and talent intermediary service agencies, construction of a social service system for small and medium-sized enterprises
119. Regional headquarters of multinational corporations
120. Investment, construction, and operation of international exhibition facilities
121. Enterprise digital transformation services
122. Service outsourcing
123. Leasing of equipment, instruments, and properties related to offshore oil exploration, development, and production business
124. Development and application of language technology
(9) Scientific Research and Technical Services Industry
125. Standardization, intellectual property promotion, and application of traditional Chinese medicine services
126. Construction and operation of seed testing, inspection, and quarantine, as well as the development and supervision system of seed industry biotechnology
127. Construction of service support bases in deep-sea areas
128. Smart ocean and marine information services
129. Commercial space launch, commercial satellite measurement and control services
130. Training for aviation, aerospace, and maritime personnel, as well as science popularization and cultural innovation in aviation, aerospace, and maritime fields
131. Construction of technology service systems, construction and operation of science popularization facilities
132. Construction and operation of research institutions or bases, their branches, and international science and technology innovation institutions
133. Construction and operation of resource repositories (libraries, centres), scientific data centres
134. Construction of genetic engineering and gene banks for plants and animals
135. Industrial design, creative design for cultural and tourism industries, architectural and environmental design, digital creative design services
136. Brand building for agricultural and forestry products
137. International intellectual property (copyright) trade
138. Research and development, as well as technical services related to offshore oil exploration, development, and production
139. Contract research organization services for biomedicine
140. Non-clinical safety assessment services for pharmaceuticals, non-clinical research for medical devices
(10) Water Conservancy, Environmental Protection, and Public Facilities Management Industry
141. Green port construction, LNG refuelling for port vessels, shore power standards and supply service system, port and vessel shore power transformation and construction, research and application of new energy clean energy technologies for port vessels.
142. Construction of rescue and salvage bases, construction of rescue flight bases, training of rescue and salvage personnel, intelligent maritime transportation testing and demonstrations.
143. Treatment of wastewater from aquaculture.
144. Recycling of waste agricultural materials such as waste agricultural films and pesticide packaging.
145. Marine environmental governance, ecological restoration, and demonstration projects.
146. Research and industrialization of core energy-saving and environmental protection technologies, processes, and complete sets of products for water conservation, low-carbon cycling, pollution reduction, and monitoring.
147. Development of energy-saving and environmental protection technologies and products, design and construction of energy-saving and environmental protection projects, operation and consultation for energy diagnostics and environmental monitoring.
148. Natural gas combined heat and power generation.
149. Investment and operation of energy storage, hydrogen energy, and LNG transfer.
150. Ocean carbon sinks and geological carbon sequestration projects.
151. Research and development of seawater desalination technology and equipment.
(11) Education
152. Higher education
153. International education
154. Vocational skills training
(12) Health and Social Work
155. High-end professional medical, rehabilitation, nursing, and other healthcare services
156. Third-party medical testing and intermediary services, medical quality, and medical service capability assessment
157. High-end medical equipment, application of new drugs
158. Traditional Chinese medicine service trade
159. Regenerative medicine services
160. Tropical disease research, diagnosis, and treatment
161. Operation of medical institutions
162. Trading platform for green and authentic medicinal materials and specialty health products
163. Aviation medical rescue
(13) Cultural, Sports, and Entertainment Industry
164. Cultural relics protection, utilization, and related services, cultural relics auction business
165. Publishing services, establishment of publishing exhibition, trading, and distribution outlets (physical bookstores)
166. International art exhibition and trading auctions
167. Smart sports and esports
168. Cultural trade, exchange, and cooperation
169. Travel agencies and tourism travel agency services
170. Cultural and tourism publicity, promotion, and destination marketing
171. Development of tourism merchandise and souvenirs
172. Online travel services
173. Recreational fishing
174. Performance brokerage services, operation of performance venues, entertainment venues, tourism performances
175. Traditional Chinese medicine health tourism bases, forest health care bases, forest experience bases, national forest trails, self-drive camping sites (including RVs), business camping sites, agroforestry tourism scenic spots
176. Operation of tourist resorts, construction of scenic spots, protection, restoration, and renovation of historical and cultural districts
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