A press conference on improving the level of cross-border trade facilitation and supporting the high-quality development of foreign trade held on September 23 in Hainan Province announced that the provincial authorities will conduct a comprehensive assessment of the implementation of the "zero-tariff" commodity lists, consulting relevant national ministries on further optimizing and expanding the scope of the lists. Additionally, focus will be placed on promoting the expansion of the "zero-tariff" list of vehicles, yachts, and raw materials in the near future.
Hainan is working hard to improve the level of cross-border trade facilitation in the province in four areas.
The first area is continuing to promote the expansion of the value-added processing tariff policy pilot area. Hainan Ausca International Oils and Grains Ltd., a major player in the value-added food processing sector, has already reaped benefits from the policy, having been exempted from tariffs totaling RMB 190 million since its first transaction was completed on June 23, 2021. Looking ahead, the provincial Department of Commerce will promote the expansion of the value-added processing policy to the whole island, as well as the consolidated development of industries such as biomedicine and medical equipment, food processing, new energy and new materials, and high-end equipment manufacturing.
The second area is moving ahead with the work of researching and formulating the list of prohibited and restricted import and export goods and articles for the Hainan FTP (Free Trade Port). The Notice on Relaxing Administrative Measures for Certain imported and Exported Goods on a Pilot Basis in the Hainan Free Trade Port published in December 2021 clarified that, within the specially designated customs supervision area, certain medical devices within the Hainan FTP can undergo bonded repairs. The Notice additionally relaxed the restrictions on importing vessels over a certain age and allowed for the import of eligible drugs without having to apply for a notice of customs clearance for imported drugs. At present, Hainan is working hard to cooperate with the Ministry of Commerce in a bid to match policy with international standards vis-a-vis economic and trade rules, researching and formulating a list of prohibited and restricted import and export goods and articles, and further enhancing the freedom and convenience of importing and exporting goods within the Hainan FTP.
The third area is promoting high-quality development in new offshore international trading. In recent years, the State Administration of Foreign Exchange, along with other ministries, have issued a series of policy measures to support the development of Hainan's new offshore international trading, pushing it to develop rapidly. At present, Hainan is actively formulating support measures to promote the construction of a digital comprehensive service platform, and will play the role of an offshore trading service center to attract more market players to settle in Hainan and expand new offshore international trading business models.
The final area is promoting the expansion of the scope of "zero-tariff" goods. To date, national ministries have issued three "zero-tariff" commodity lists. A round of expansion has been carried out on two of these "zero-tariff" lists - covering production equipment and raw materials - to meet the needs of the Hainan FTP. Since the implementation of these "zero-tariff" commodity lists a total of RMB 11.68 billion worth of "zero-tariff" goods have passed through customs as of August 2022, with tax reductions reaching RMB 2.14 billion. Commodities included on the lists include ships, yachts, automobiles, aircraft, production materials and production equipment, ensuring coverage of the aerospace, automotive and marine sectors. The next step for Hainan will be conducting a comprehensive assessment of the implementation of the "zero-tariff" commodity lists, consulting relevant national ministries on further optimizing and expanding the scope of the lists, and increasing stress testing. Additionally, focus will be placed on promoting the expansion of the "zero tariff" list of vehicles, yachts, and raw materials in the near future.