Twenty-two new types of vehicles are now eligible to enjoy the benefits of the island’s zero-tariff policy when imported into south China’s Hainan Free Trade Port (FTP), according to the latest notice issued by the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation.

These vehicles, which include semitrailer tractors, airport buses, all-terrain vehicles, and small hybrid 9-seat (or less) vehicles, will be exempt from customs duties, import value-added taxes, and consumption taxes.

 

 

 

An aerial view of Haikou Port, a vital import and export hub in Hainan Province. (Photo: Hainan Daily) 

According to the zero-tariff policy, which was first implemented on December 12, 2020, companies in the transportation and tourism industries registered in the Hainan FTP as independent legal entities are eligible to enjoy the stipulated tax exemptions when importing vehicles and yachts for operational use during the period before the island of Hainan commences independent customs operations.

 

 

 

Aerial view of Haikou’s Xinhai Harbor passenger terminal, the largest RO-RO passenger ferry hub in China, which is expected to open at the end of 2023. (Photo: Hainan Daily) 

The total value of vehicles and yachts imported under the zero-tariff policy so far has reached 5.93 billion yuan (approx. $0.8 billion), with importers enjoying a total tax savings of about 1.48 billion yuan (approx. $0.2 billion).

The zero-tariff policy is one of the important provisions listed in the master plan for the development of the Hainan FTP issued by Chinese authorities in June 2020. The island province has so far rolled out three lists of vehicles & yachts, raw & auxiliary materials, and production equipment for internal company use eligible for import under the zero-tariff policy