Island-wide customs closure begins, early trade and consumption indicators surge

December marked a historic turning point for the Hainan Free Trade Port as island-wide special customs operations officially began on December 18. Initial data released by Haikou Customs show strong zero-tariff import activity, a surge in new foreign trade enterprises, and robust duty-free consumption in the first week of operations.

Trade Highlights

Island-wide special customs operations launched
Hainan Free Trade Port officially launched island-wide special customs operations on December 18, 2025, with the entire island designated as a special customs supervision zone operating under the “one-line open, second-line under control, free flow within the island” framework.
📎 Source: Xinhua / Gov.cn (2025-12-18)
https://english.news.cn/20251218/6e5a346ddd8c447d81492977f7436915/c.html

Zero-tariff imports strong on first day
On the first day of special customs operations, Haikou Customs reported zero-tariff imports of ¥3.6 billion at the first line. At the second line, nearly ¥14.7 million in value-added processed goods were sold domestically under tariff exemption, with ¥808,000 in tariffs waived.
📎 Source: Gov.cn citing Haikou Customs (2025-12-19)
https://english.www.gov.cn/news/202512/19/content_WS69454c9cc6d00ca5f9a08346.html

First week trade flows accelerate
From December 18–24, Haikou Customs tracked over ¥4 billion in zero-tariff imports and over ¥20 million in tariff-exempt value-added processed goods crossing the first and second lines under the new customs regime.
📎 Source: Haikou Customs via customs.gov.cn (2025-12-24)
https://www.customs.gov.cn/customs/xwfb34/302425/6908273/index.html

Foreign trade enterprise registrations surge
During the first week following customs closure, 1,972 new foreign trade enterprises were registered in Hainan, a 2.3-times year-on-year increase, according to Haikou Customs data released via national media.
📎 Source: China News / People’s Daily citing Haikou Customs (2025-12-26)
https://www.ecns.cn/m/news/cns-wire/2025-12-26/detail-iheyfqph6159428.shtml

Duty-free shopping jumps in launch week
Between December 18–24, offshore duty-free shopping in Hainan reached ¥1.1 billion, with 165,000 shopper visits and 775,000 items sold. Year-on-year growth reached 54.9% in sales value, 34.1% in shopper visits, and 11.8% in items sold.
📎 Source: Haikou Customs via customs.gov.cn (2025-12-25)
https://www.customs.gov.cn/customs/xwfb34/302425/6908273/index.html

First-day duty-free sales also strong
On December 18, the first day of island-wide customs closure, offshore duty-free shopping reached ¥161 million, reflecting immediate consumer response under the new regime.
📎 Source: China.com.cn citing Haikou Customs (2025-12-25)
https://www.china.com.cn/txt/2025-12/25/content_118246459.shtml

What It Means

The launch of island-wide special customs operations marks the start of full customs closure operations for the Hainan Free Trade Port, with the island now functioning as a single special customs supervision zone.

Strong zero-tariff import volumes in the first day and first week indicate rapid uptake of expanded tariff-exemption policies and improved customs efficiency at the first line.

The sharp rise in new foreign trade enterprise registrations suggests growing confidence among domestic and international businesses in Hainan’s new trade environment and regulatory clarity.

Meanwhile, duty-free consumption remains a key pillar supporting logistics, bonded operations, and visitor flows, reinforcing Hainan’s dual role as both a trade and consumption hub.

Together, these early indicators show that Hainan has moved decisively from policy rollout to real-world operation under the Free Trade Port framework.

Why It Matters

For companies and investors, the start of island-wide customs closure opens new pathways for tariff savings, faster clearance, and streamlined trade flows within China’s most open customs regime.
Businesses that adapt early to zero-tariff rules and second-line procedures are likely to gain first-mover advantages as Hainan’s Free Trade Port model scales in 2026.