The Overall Plan for the Construction of Hainan Free Trade Port states that, by 2025, raw and auxiliary materials imported for production within Hainan, or for processing trade (or in the process of trade in services) of which final products would be exported to overseas markets shall be subject to "zero-tariff" positive list management and are exempt from import duties, import value-added tax and consumption tax.

Relative to other regions, this policy breaks through the restrictions on processing trade supervision in the traditional customs special supervision area: island-wide application and more raw materials exempt from duties and raw materials for production. This policy is of great benefit to manufacturing development and infrastructure construction in Hainan Province.

Raw and auxiliary materials under the positive list for enterprise import on the island shall be subject to tax declaration according to normal import procedures, i.e., such materials are tax-exempt. The scope of the negative list shall be adjusted according to actual needs.

The zero-tariff raw and auxiliary materials are limited to the production of enterprises on the island or the production and processing trade (or in the process of trade in services) of which final products would be exported to overseas markets. For resale to Mainland China, they shall be handled in accordance with import regulations, and tariffs and import taxes shall be levied in accordance with the regulations.