News - The Hainan Free Trade Port has officially launched the full-island customs clearance operation.

On December 18, 2025, the Hainan Free Trade Port officially launched the full-island customs closure operation, marking the entry of China’s first free trade port into a substantive stage of development and representing a significant milestone in the country’s new era of opening up. The customs closure operation will not only have a profound impact on Hainan’s economic development but also bring historic opportunities to the cross-border e-commerce industry. The term \”customs closure\” refers to designating the entire Hainan Island as a special customs supervision area and implementing an innovative supervision model of \”liberalizing the first line, controlling the second line, and freedom within the island\” to achieve the highest level of trade liberalization and facilitation.

The core framework of the \”closed-border\” policy can be summarized as \”four more\”.

First, more favorable \”zero-tariff\” policies for goods: The proportion of \”zero-tariff\” goods imported through the \”first line\” has been significantly increased from 21% to 74%, covering approximately 6,600 tariff items. Goods between beneficiaries enjoy duty-free circulation, and goods with a processing value-added of 30% or more can enter the mainland duty-free.

Second, more lenient trade management measures: Open arrangements have been made for some currently prohibited or restricted imported goods nationwide, and import license management for 60 types of used mechanical and electrical products has been abolished.

Third, more convenient passage measures: Eight open ports are designated as \”first line\” ports, and \”direct release\” is implemented for eligible imported goods; ten \”second line\” ports are set up, and innovative customs clearance measures are adopted.

Fourth, more efficient and precise supervision models: Low-intervention and high-efficiency precise supervision is implemented for \”zero-tariff\” and other goods.

In terms of customs clearance preparations, Hainan has completed the construction of software and hardware infrastructure. The 10 \”second-line ports\” have passed national acceptance. The customs intelligent supervision platform for the Hainan Free Trade Port was launched for trial operation in March 2025 and has achieved interconnection with the customs headquarters system and the \”single window\” in Hainan. The Haikou Customs has conducted multiple rounds of \”full-process, full-element, full coverage, large sample, and practical\” tests and drills, involving 300 enterprises in the tests, to ensure the smooth and orderly operation of the customs clearance.

After the closure of the border, Hainan will establish a unique tax system environment. The policy framework of \”zero tariffs, low tax rates, and simplified tax system\” will significantly reduce the operating costs for enterprises. Among them, the \”zero tariffs\” policy covers approximately 74% of the taxable goods; the \”double 15%\” income tax policy (both the corporate income tax and the personal income tax for high-end talents have a maximum rate of 15%) further alleviates the burden on enterprises; the reform of the sales tax system will simplify the tax system and enhance trade convenience. This series of institutional arrangements have created a highly competitive business environment for cross-border e-commerce enterprises, making Hainan to become an important gateway for leading China’s new era of opening up.

HEALTHSMILE MEDICAL

Post time: Dec-23-2025