China Issues Duty Exemptions for Certain Imports Into Hainan Free Trade Port
China's General Administration of Customs issued a list of goods subject to zero tariffs when imported into the Hainan Free Trade Port, it announced Nov. 30, according to an unofficial translation. The tariff policy, which took effect Dec. 1 and will be in place until 2025, will exempt import duties, value-added import taxes and consumption taxes for certain “raw and auxiliary materials,” China Daily, a state-run news outlet, reported Dec. 1. The exemptions will apply to products “consumed in the importing company's own production process, for import-process-export production activities or for import-service-export work in the process of trade in services by enterprises registered as independent legal entities” in the Hainan Free Trade Port, the report said.
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The list covers 169 items, including food goods, aircraft components and “ship maintenance materials,” the report said. Chinese officials hope the measures attract capital and logistics to the island, which China is trying to turn into an international trading hub (see 2006030007 and 2011250049). The announcement specifies it also covers materials used “to support construction of” the FTP.