Overview
- Effective December 18, Hainan began operating a separate customs regime with two boundaries that split the island’s trade from both overseas markets and the Chinese mainland.
- Roughly 6,600 product types—about 74% of taxable imports—can now enter Hainan free of import duties, VAT and consumption tax, with free circulation on the island.
- Goods moving from Hainan to the mainland will generally be treated as imports unless they meet existing rules such as the 30% local value‑addition threshold for tariff waivers.
- Authorities expected more than 500 million yuan in tariff‑free cargo on launch day, including crude oil, medical equipment, aircraft components and food ingredients.
- Beijing presents the port as bolstering its CPTPP case and opening‑up agenda, though analysts warn Hainan lacks Hong Kong‑style legal and financial openness and that CPTPP members may seek nationwide reforms.