SCIO press conference on development of Hainan Free Trade Port

CNR:

To further implement the zero-tariff policy for imported goods and ease trade restrictions in line with the opening up policies of the Hainan FTP, what measures will customs take to ensure efficient and convenient supervision? Thank you.

Wang Lingjun:

Thank you for your question and your interest in the customs work. To better implement the zero-tariff policy for imported goods, ease trade management in line with opening up requirements, and ensure standardized customs supervision over the Hainan FTP, the GACC has formulated the Supervision Measures of the Customs of the People's Republic of China for the Hainan Free Trade Port, along with a set of supporting regulations. These measures clearly define the customs supervision requirements for the movement of goods between the FTP and overseas markets, between the FTP and the Chinese mainland, as well as within the FTP itself after the island-wide special customs operations are launched. They provide institutional support for targeted, efficient and secure customs regulation. The overarching principle is that what is liberalized at the "first line" must be effectively regulated at the "second line," ensuring both targeted regulation and high efficiency. Specifically, there are two key aspects:

First, regarding imports at the "first line," efforts will be made to further enhance customs clearance facilitation. In accordance with the Hainan Free Trade Port Law of the People's Republic of China, the policy of direct release will be applied, with "direct" referring to immediate clearance without delay. Except for goods that are subject to inspection and quarantine or license management in accordance with the law, customs will implement direct release for zero-tariff imports, bonded goods and other eligible categories. This policy was first piloted in June 2020 in the Yangpu Bonded Port Area, and later expanded to the Haikou Comprehensive Bonded Zone, Haikou Airport Comprehensive Bonded Zone and Yangpu Economic Development Zone. It has significantly improved clearance efficiency and reduced customs clearance costs for enterprises. Once the island-wide special customs operations are in place, the direct release policy will be implemented throughout the entire Hainan FTP.

For outbound movement across the "second line," the focus is on intelligent and efficient regulation. First, customs control channels and non-customs control channels will be established at second-line ports. Customs will supervise three categories of goods through the customs control channels: zero-tariff goods, goods enjoying value-added processing policies, and goods subject to relaxed trade management measures. All other domestically circulated goods will pass through the non-customs control channels and be regulated by Hainan province in accordance with existing domestic circulation rules, thereby facilitating trade between Hainan and the rest of the country to the greatest possible extent. Second, for these three categories of goods, customs authorities will introduce an innovative clearance model of "multiple consignments with consolidated declaration." Under this model, enterprises may first complete the outbound procedures across the second line and then submit a consolidated customs declaration afterward, significantly improving clearance efficiency. In addition, to further streamline the second-line outbound declaration process, customs has significantly reduced the number of required declaration items for enterprises filing customs declarations from 105 to 42.

Next, the General Administration of Customs will continuously improve the customs supervision model to suit the island-wide special customs operation, according to its actual implementation and Hainan's practical needs, with the aim to support Hainan's institutional opening-up and empower the high-quality development of the Hainan Free Trade Port (FTP). Thank you.