Issued on 10 Jun 20
Hainan Free Trade Port details released updates
In April 2018, President Xi Jinping proposed to build Hainan Province into a free trade port in stages. After two years of preparation, the State Council announced the overall plan for the construction of the Hainan Free Trade Port last Monday, clearly clarifying the start of the island-wide customs closure operation by 2025, and improving the relevant opening policies and institutional arrangements by 2035. Specific measures include:
1. Zero tariffs on trade in goods
2. Zero tariffs on imported goods are the highlight of the Hainan Free Trade Port. Except for a few products, all others are exempted from import tariffs, including raw materials, production materials, means of transportation, consumer goods, etc.
Expect to develop Hainan as a tourism and shopping paradise.
For example, if you originally imported a yacht for 10 million yuan, you would have to pay 3.8 million tax, but if you buy it in Hainan, you do not need to pay this tax, which is 3.8 million less than other places.
3. Open the capital projects gradually
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4. Gradual improvement of the law and regulations adapted for the construction of the free trade ports, promote free trade ports and facilitate the flow of overseas funds
5. A more open talent and residence policy will be implemented to create a place where talent gathers, etc.
6. Real estate is still strictly restricted to avoid the risk of repeating the ups and downs of the past property market
The Hainan Free Trade Zone will make up the entire island province – being 35,000
km2 in sizes and encompassing a population of 9.5 million – dwarfing regional competitors Hong Kong and Singapore on both metrics.