Haikou Customs has issued new administrative rules that govern how goods will be taxed when they enter or exit the First Line (一线), the Second Line (二线), and when they circulate within Hainan Island.

These rules take effect 18 December 2025 and support the launch of island-wide special customs operations.

1. Goods imported from abroad through the First Line (一线) by an eligible enterprise (享惠主体) are exempt from import duty, import-stage VAT, and consumption tax, provided the goods are not listed in the Import Tax List (进口征税目录).

This continues the Hainan Free Trade Port’s zero-tariff policy (零关税政策) for qualifying goods.

2. Two categories of goods will still be taxed at the First Line (一线):

1. Goods listed in the Import Tax List (进口征税目录).
2. Goods not on the list but which are not classified as zero-tariff goods (零关税货物) and are not covered by bonded or special tax-reduction policies.

These goods remain subject to import duty, import-stage VAT and consumption tax.

3. When declaring zero-tariff goods (零关税货物), eligible enterprises (享惠主体) must use the correct designation in the “tax reduction/exemption” field.

Haikou Customs confirms three official declaration labels:

zero-tariff self-use production equipment (零关税自用生产设备)
zero-tariff transport vehicles and yachts (零关税交通工具及游艇)
zero-tariff general goods (零关税一般货物)

The correct declaration category determines how Customs supervises the goods.

4. Zero-tariff goods and their processed products may be exported through the First Line (一线) using standard export procedures.

If the goods are subject to export duty under national rules, Customs will collect it accordingly. Once export clearance is completed, the goods are released from Customs supervision.

5. If an enterprise needs to return or re-export zero-tariff self-use production equipment (零关税自用生产设备) or zero-tariff transport vehicles/yachts (零关税交通工具及游艇), it must submit the request through the designated module in the China International Trade Single Window (国际贸易单一窗口):

“Hainan Zero-Tariff Production Equipment and Transport Vehicles Platform (海南零关税进口生产设备、交通工具平台)”.

Approval from Customs is required before completing the return/export declaration.

6. When zero-tariff goods (零关税货物) or their processed products circulate between eligible enterprises (享惠主体) within Hainan Island, no supplementary import duty, import-stage VAT or consumption tax is required.

However, the receiving enterprise must file the required procedures with Customs within 14 days after the internal circulation is completed.