For enterprises registered and with independent legal status in Hainan Free Trade Port, imported raw and auxiliary materials for the enterprises’ own production, for processing trade under “with both ends abroad” mode, or in the process of service trade under “with both ends abroad” mode.

I. The Customs implemented electronic account management for imported "zero-tariff" raw and auxiliary materials. After setting up a dedicated electronic account, enterprises can independently record the commodity information of the electronic account through the "single window," independently determine the consumption, truthfully declare to the customs, handle the verification procedures, and independently pay the taxes.

1.Establish a management system and a computerized management system which comply with the regulatory requirements of customs supervision, to realize whole-process tracking of information such as consumption of "zero tariff" raw and auxiliary materials, and ensure the authenticity, accuracy and effectiveness of data.

2. Application to Customs for the establishment of a specialized electronic ledger.

3.Enterprises could independently record electronic account book commodity information, independently verify consumption, then truthfully declare to the Customs, handle verification procedures, and independently pay taxes. Enterprises are responsible for the authenticity of the self-declared data and bear corresponding legal liability.

4.When importing "zero tariff" raw and auxiliary materials, submit a bonded declaration form to the Customs in accordance with regulations before applying for customs declaration (filing list) procedures.

II. Regulatory requirements

1. "Zero-tariff" raw and auxiliary materials

(1) Limited to the production and use of enterprises within Hainan Free Trade Port, subject to Customs supervision, shall not be transferred in or out of the island. Where it is necessary to transfer in or exit the island due to bankruptcy of an enterprise, etc., the formalities for supplementary tax payment and the customs procedures shall be completed.

(2) Direct export of "zero tariff" raw and auxiliary materials do not require additional tax payment and shall be subject to the current export tax policies for goods.

2. Goods manufactured using "zero-tariff" raw and auxiliary materials

(1) When sold within the island or shipped to the mainland, enterprises should supplement the corresponding import duties, import value-added tax, and consumption tax for the imported "zero tariff" raw and auxiliary materials in advance, and then complete customs procedures.

(2) Goods processed with "zero tariff" raw and auxiliary materials for export do not require additional tax payment and shall be subject to the current export tax policies for goods.