China (Hainan) Free Trade Port Island-wide Customs Closure Operation Enters Countdown! Official Announcement: Full Implementation on December 18, 2025
“Wang Changlin, Vice Minister of the National Development and Reform Commission, solemnly announced at a special press conference held by the State Council Information Office on July 23 that, following deliberation and approval by the Central Committee of the Communist Party of China and the State Council, the island-wide customs closure operation of the Hainan Free Trade Port will be fully launched on December 18, 2025. This major decision marks a new phase in China's exploration and practice of its highest level of openness.”
Wang Changlin, Vice Minister of the National Development and Reform Commission, solemnly announced at a special press conference held by the State Council Information Office on July 23 that, following deliberation and approval by the Central Committee of the Communist Party of China and the State Council, the island-wide customs closure operation of the Hainan Free Trade Port will be fully launched on December 18, 2025. This major decision marks a new phase in China's exploration and practice of its highest level of openness.
Innovative Regulatory Model: "Full Openness at First Tier, Efficient Control at Second Tier, Free Flow of Factors Within the Island"
As a strategic project in deepening China's reform and opening-up, the island-wide customs closure operation of the Hainan Free Trade Port will establish a policy system with international competitiveness. Its core features include:
1."First-Tier Openness": Implementing the highest standard of facilitation measures for economic and trade exchanges between Hainan and overseas regions.
2."Second-Tier Control": Establishing a scientific and precise regulatory mechanism between Hainan and the mainland.
3."Free Flow Within the Island": Achieving efficient and free allocation of various production factors within the island.
The General Administration of Customs has formulated supporting regulatory measures:
*First-tier import procedures: A "declaration equals release" system for eligible "zero-tariff" goods and bonded goods.
*Second-tier exit procedures: Streamlining declaration processes, reducing customs declaration items from 105 to 42.
Dispelling Misconceptions: "Customs Closure" Actually Means Higher-Level Openness
Over the past five years, the Hainan Free Trade Port has achieved remarkable results:
✔ Actual utilized foreign investment exceeded 100 billion yuan, reaching 102.5 billion yuan.
✔ Outbound direct investment grew at an average annual rate of 97%.
✔ Newly established foreign-funded enterprises increased by 43.7% annually.
✔ Trade in goods and services maintained an average annual growth rate of over 30%.
✔ Economic openness ratio rose to a new high of 35%.
✔ Implemented the most favorable visa-free policy in China, covering 85 countries.
After customs closure, Hainan will present a "dual-opening" new pattern:
→ Global connectivity: More convenient and efficient exchanges with international markets.
→ Mainland linkage: Maintaining current ease of personnel and goods flow.
Special note: Ordinary travelers will not need additional documentation to visit Hainan—procedures remain unchanged.
Four Major Policy Upgrades to Build a New Openness High Ground
Post-closure institutional innovations mainly include:
1. Comprehensive Upgrade of Zero-Tariff Policy
Zero-tariff goods coverage expands from 21% to 74%.
Exemption of import taxes for intra-island enterprise transfers.
Goods with 30% value-added processing can enter the mainland tariff-free.
2. Significant Relaxation of Trade Controls
Optimizing the list of prohibited/restricted imports.
Establishing 8 first-tier open ports for efficient customs clearance.
3. Highly Efficient Logistics Channels
Deploying 10 second-tier ports (including the newly built Haikou Xinhaigang).
Implementing "smart customs clearance" and other facilitation measures.
4. Intelligent and Precise Regulatory Model
Establishing a "low-intervention, high-efficiency" digital supervision system.
Implementing categorized and tiered management for special goods.
Comprehensive Release of Policy Benefits
Compared with current policies, post-closure operations will achieve:
★ Zero-tariff list management reform: Transition from a "positive list" to a "negative list", expanding covered tariff lines to 6,600.
★ Expanded policy beneficiaries: Covering all types of enterprises, institutions, and social organizations on the island.
★ Optimized processing value-added policy:
1.Removing the 60% main business income requirement for eligible enterprises.
2.Expanding applicable materials scope.
3.Improving value-added calculation (including Hainan’s self-produced value).
4.Extending policy applicability.
The "List of Prohibited and Restricted Import/Export Goods and Items in the Hainan Free Trade Port", newly issued by the Ministry of Commerce, is of groundbreaking significance:
*Systematically clarifies current control measures, defining regulatory boundaries.
*Removes import licensing for 80% of used mechanical and electrical products.
*Allows 38 categories of goods to conduct bonded maintenance (highest openness standard nationwide).
This series of institutional innovations will propel the Hainan Free Trade Port to become a key gateway for China’s new-era reform and opening-up, providing strong support for building a new development paradigm.
