The Overall Plan for the Construction of Hainan Free Trade Port states that, by 2025, except for goods that are not exempt from taxes and whose import is prohibited by national regulations, the production equipment imported by enterprises for own use shall be subject to “zero tariff” negative list management. The production equipment outside the list for enterprise import is exempt from import duties, import value-added tax and consumption tax.

Production equipment mainly refers to machinery and equipment required for productive infrastructure construction projects; machinery, equipment, molds, and special tools required for production operations; machinery, equipment and instruments for service operations (including medical care, R&D and design, inspection and maintenance, logistics, amusement, service outsourcing).

Only in certain regions and some qualified industries nationwide, the imported equipment can apply to tariff reduction (exemption) policies; imported production equipment of all enterprises registered in Hainan Free Trade Port not in the negative list can apply to the "zero tariff" policy of "exemption of tariff, import value-added tax and consumption tax".

The scope of the zero-tariff negative list of production equipment shall be adjusted according to actual needs.