Circular on the Policy of Hainan Free Trade Port on Refueling Flights Entering and Leaving the Island with Bonded Aviation Oil 

Cai Guan Shui [2021] No.34  

The Department of Finance of Hainan Province, the Haikou Customs, the Hainan Provincial Tax Service of the State Taxation Administration, and the CAAC Central and Southern Regional Administration,  

In order to implement the Overall Plan for the Construction of Hainan Free Trade Port, the policy of Hainan Free Trade Port on refueling flights entering and leaving the island with bonded aviation oil is hereby notified as follows:  

I. Before the whole island of Hainan enters into independent customs operations, domestic flights entering and leaving Hainan Island are allowed to be refueled with bonded aviation oil at the officially open national aviation ports within the island; such bonded aviation oil is exempt from customs duties, value-added tax and consumption tax; those who voluntarily intend to pay the import-related value-added tax may declare the same during the customs clearance.  

II. For the purpose of Article 1 hereof, domestic flights entering and leaving Hainan Island refer to the domestic flights entering and leaving Hainan Island approved by the competent civil aviation authority.  

III. Bonded oil operators shall apply for refueling in accordance with the flight plan approved by the competent civil aviation authority, go through the customs formalities according to the facts based on the flight status and refueling-related materials, and submit refueling information to the tax authority.  

IV. The refueling of international flights and flights from and to Hong Kong, Macao and Taiwan entering and leaving Hainan Island with bonded aviation oil shall be applied for in accordance with the current relevant provisions. In particular, the tax policies for the refueling of domestic airlines' international flights and flights to Hong Kong, Macao and Taiwan entering and leaving Hainan Island with bonded aviation oil may be subject to Article 1 hereof.  

V. The Circular shall come into force as of the date of publication.  

Ministry of Finance 

General Administration of Customs 

State Taxation Administration 

Civil Aviation Administration  

July 8, 2021