State Council approves 18 ministries and commissions to authorize Hainan to pilot national free trade zone policies

In order to speed up the construction of Hainan Free Trade Port, the central and state ministries and commissions have introduced new policies to the Hainan Free Trade Zone and Free Trade Port. At present, the “1+N” policy system based on Central Document No. 12 is constantly evolving, and currently nine programs have been issued. 

The National Development and Reform Commission, the Ministry of Commerce, and the Ministry of Finance and other 30 national ministries and commissions have specially formulated an implementation plan to support Hainan’s comprehensive deepening of reform and opening up.

14 relevant ministries and commissions have signed cooperation agreements with Hainan Province. Since the beginning of this year, more than ten national ministries and commissions have issued relevant policies and measures to support the construction of the Hainan Free Trade Zone and the Free Trade Port.

The Ministry of Commerce and 18 other departments jointly issued a “Notice on the Implementation of the Pilot Policies for the China (Hainan) Pilot Free Trade Zone.”

There are 30 policies in four areas.

In terms of improving the level of investment and trade facilitation, it proposes to support the establishment of ports for the first-time import of drugs and biological products, and allow foreign law firms to co-manage with Chinese law firms.

I. Enhance the level of investment and trade facilitation

(1) Modernize inspection and quarantine supervision methods for international exhibitions, and implement an international networking verification mechanism of inspection and quarantine certificates.

(Department in charge: General Administration of Customs). 

2) Where the import and export of large-scale equipment, such as aircraft, ships and offshore engineering structures, of financial leasing enterprises registered in the special supervision area of the customs involves trans customs areas, the customs shall, on the premise of ensuring effective supervision and implementation of the current relevant tax policies, carry out the entrusted supervision in relevant places according to the actual needs of logistics.

(Department in charge: General Administration of Customs)

(3) In line with the highest global standards, implement a higher standard of “first-line liberalization” and “second-line safety and efficient control” cargo trade supervision system in special customs supervision areas. For “front line” import and export goods, on the basis of full implementation of “advanced area and post declaration”, the customs management procedures shall be simplified to the greatest extent possible. For “second-line” import and export goods, implement a “batch import and export, centralized declaration” and “self-transport system within the region” along with other facilitation systems to promote the efficient operation of the logistics chain.

Improve the supervision service model for “independent tax declaration, self-help customs clearance, automatic examination and release, key audit”, and create a special customs supervision area with the highest degree of openness and best facilitation possible.

 (Department in charge: General Administration of customs, Ministry of Commerce)

(4) Carry out a comparison with automobile certification standards of major trading countries, and promote the mutual recognition of the certification and accreditation results with the major trade and investment cooperation countries (regions) under the premise of risk control and legal compliance; 

Promote the realization of parallel import service and management of automobile in Hainan pilot Free Trade Zone. The platform is to be networked with the customs data information system; support the construction of parallel import automobile sales service standards; support bonded display of parallel import automobiles in the special customs supervision area of Hainan pilot free trade zone.

(Department in charge: General Administration of customs, Ministry of Commerce)

(5) Support the establishment of ports for, first import of drugs and biological products.

(Responsible departments: Drug Administration, General Administration of Customs)

(6) Implement a pilot system for medical device registration, and allow applicant or registrants of medical devices to entrust enterprises with corresponding production conditions to produce samples or products.

(Responsible department: Drug Administration)

(7) Support Hainan pilot free trade zone to further strengthen cooperation with Hong Kong and Macao and further open up in relevant fields under the framework of “arrangements for closer economic and trade relations” between the mainland and Hong Kong, and between the mainland and Macao.

(Department in charge: Ministry of Commerce, Hong Kong and Macao Office)

(8) Gradually cancel or relax the restrictions on service trade of cross-border delivery, natural person movement and other modes in appropriate fields and levels.

(Department in charge: Ministry of Commerce)

(9) Improve the mechanism for protecting the rights and interests of investors, and allow qualified overseas investors to freely transfer their legitimate investment income.

(Department in charge: Ministry of Commerce, people’s Bank of China, safe)

(10) Allow foreign law firms to conduct joint management with Chinese law firms. Foreign law firms and Chinese law firms that set up representative offices in Hainan pilot free trade zone are allowed to send lawyers to each other as legal advisers through agreement.

(Department in charge: Ministry of Justice)

(11) Allow lawyers from Hong Kong, Macao and the mainland joint venture law firms to accept and undertake the legal affairs of administrative litigation applicable to mainland law. Allow Hong Kong, Macao and mainland joint venture law firms to employ Hong Kong, Macao and mainland lawyers in the name of the firm.

(Department in charge: Ministry of Justice)

(12) Allow qualified wholly foreign-owned travel agencies to apply for pilot operation of outbound tourism business (excluding going to Taiwan).

(Department in charge: Ministry of culture and Tourism)

In terms of expanding the opening up of the financial sector, it proposed seven items to support private capital to enter the financial industry and strengthen strategic cooperation with offshore Renminbi offshore markets;

II. Expand the opening of financial field

(13) Promote the use of Renminbi in commodity trading and commodity trading countries and regions in the trade of oil and other commodities, and to support the supply of bonded fuel oil in Renminbi.

(Responsible department: People’s Bank of China and other departments)

(14)  Support private capital to enter the financial industry, and support qualified private capital to establish private banks, financial leasing companies, financial companies, auto financing companies, consumer finance companies and other financial institutions in accordance with the law.

(Department in charge: People’s Bank of China, China Banking and Insurance Regulatory Commission)

(15) Strengthen strategic cooperation with the overseas RMB offshore market, and steadily promote the issuance of RMB bonds and asset securitization products by overseas institutions and enterprises.

(Department in charge: People’s Bank of China, CSRC)

(16) Support the Hainan pilot free trade zone to explore the mechanism of capital exchange and market interconnection with Hong Kong and Macao under the framework of “arrangements for establishing closer economic and trade relations,” to support qualified Hong Kong and Macao insurance companies to set up business institutions and qualified Hong Kong and Macao insurance intermediaries to carry out business; allow Hong Kong and Macao residents to obtain Local insurance qualification and engaged in relevant insurance business after being employed in mainland insurance institutions.

(responsible departments: Ministry of Commerce, Hong Kong and Macao Office, people’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission)

(17) Cancel the prior examination and approval of the qualification of senior executives from insurance branch companies, the provincial banking and insurance regulatory institution shall implement filing management.

(Department in charge: CBRC)

(18) Encourage insurance funds to support the development of the leasing industry and enrich insurance investment tools. Support qualified financial leasing companies and financial leasing enterprises to use the interbank market to issue bonds and asset securitization products. Support cross-border financial leasing services.

(Responsible departments: People’s Bank of China, China Banking Regulatory Commission and China Securities Regulatory Commission)

(19) Encourage all kinds of institutional investors, individuals and other social capital to set up investment funds, encourage domestic capital to cooperate with overseas institutions to set up joint investment funds, build a fund Town, and attract well-known fund related institutions at home and abroad to settle down.

Support the construction of a national fund management service platform focusing on project investment and financing services.

(Responsible departments: CSRC, people’s Bank of China, development and Reform Commission)

In terms of accelerating the development of the shipping sector, it proposes seven items that allow foreign vessels to be hired for temporary transportation under certain conditions, and further facilitate international ship management enterprises to engage in overseas services;

III. Accelerating the development of shipping

(20) Allow the hiring of foreign ships for temporary transportation under specific conditions.

(Department in charge: Ministry of transport)

(21) Further facilitate international ship management enterprises to engage in seafarer assignment services. Support the establishment of pilot ports, and provide policy support for crew training as required.

(Department in charge: Ministry of transport)

(22) To meet the development needs of Hainan pilot Free Trade Zone, support it regarding liquid cargo and dangerous goods transport enterprises to strengthen integration and achieve large-scale and intensive development.

(Department in charge: Ministry of transport)

(23) Under the premise of complying with national regulations, study the feasibility of carrying out OTC derivatives business for shipping tariff index.

(Responsible department: Ministry of transport, CSRC)

(24) Establish a paperless process covering all aspects of port operations, such as ship arrival and departure, port operations, and promote electronic management of certification in trade fields.

(Responsible departments: General Administration of customs, Ministry of transport, Ministry of Commerce)

(25) Develop convenient multimodal transport with “one single system” as the core. Establish and improve standard specifications and service rules suitable for island and inland multimodal transport, and strengthen international multimodal transport rules.

Build a public information platform for multimodal transport, and promote open sharing and interconnection of multimodal transport information among different modes of transport and different enterprises.

(Responsible departments: Ministry of transport, development and Reform Commission, Ministry of Commerce, General Administration of customs, Civil Aviation Administration)

(26) Establish cooperative mechanisms with regard to transportation safety, environmental protection, customs clearance, and other related institutions along the “one belt and one road”.

(Responsible departments: Ministry of transport, Ministry of ecological environment and General Administration of Customs)

In other aspects, the paper proposes to explore the establishment of a public credit information and financial credit information complementary mechanism and to establish a new model for land conservation and intensive use

IV. Other aspects

(27) Support the Hainan pilot free trade zone in exploring and establishing a complementary mechanism of public credit information and financial credit information.

(Department in charge: development and Reform Commission, people’s Bank of China)

(28) Strengthen the top-level design, explore and innovate the oil reserve model combining government reserve and enterprise reserve.

(Responsible departments: development and Reform Commission, Energy Bureau, food and reserve bureau)

(29) Explore the establishment of a new model of land conservation and intensive use, land can be mixed for different functional purposes, allowing the same plot or the same building to be compatible with multiple functions. Industrial land can be supplied in a flexible annual period, according to industrial policies and project categories, land supply measures such as rent first and then transfer can be taken.

(Department in charge: Natural Resources Department)

(30) Allow the setup of offshore bonded fuel oil supply warehouses, and enterprises registered in the pilot free trade zone are allowed to carry out mixed blending of bonded oil products under different tax codes on the premise that they meet regulatory conditions and are not used for domestic sales.

Oil enterprises are encouraged to produce bonded fuel oil and carry out direct supply operations of bonded fuel oil across customs areas.

(Responsible departments: General Administration of customs, Ministry of Commerce, development and Reform Commission, Ministry of Finance)

All the policies and measures proposed in this notice, if it involves the adjustment of existing laws or administrative regulations, shall be handled in accordance with the prescribed procedures.

Source text in Chinese

Related article: Progress update on construction of the Jiangdong New District, Haikou

Follow us on social media