The Ministry of Finance and two other departments have issued the tax policy for goods entering and leaving Hainan Free Trade Port.

On July 23, in order to steadily promote the construction of the Hainan Free Trade Port, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation jointly issued the "Notice on the Tax Policies for Goods entering and leaving the 'Frontline' and 'Second line' of Hainan Free Trade Port and circulating on the island" and the "Notice on the Import Taxable Goods Catalogue of Hainan Free Trade Port", clarifying the tax policies for goods during the island-wide closure of Hainan Free Trade Port. The policy stipulates that a "frontline" will be established between the Hainan Free Trade Port and other countries and regions outside the People's Republic of China, while a "second line" will be established between the Hainan Free Trade Port and other areas within the People's Republic of China. First, independent legal entities, eligible institutions, and private non-enterprise units registered in the Hainan Free Trade Port, as well as eligible entities within the Free Trade Port (referred to as beneficiaries), importing goods other than those listed in the import taxable goods catalog through the "frontline" will be exempt from import taxes (including import tariffs, import value-added tax, and consumption tax) on "zero-duty" goods. Second, "zero-duty" goods and their processed products circulating among beneficiaries within the island will be exempt from additional import taxes. Third, for "zero-duty" goods and their processed products entering the mainland through the "second line" or circulating to non-beneficiaries and individuals, import taxes will be levied. Specifically, for industrial enterprises encouraged in the Hainan Free Trade Port whose value-added processing of goods reaches or exceeds 30%, import tariffs will be waived when they enter the mainland through the "second line". These policies will cover a wide range of enterprises and institutions on the island with actual import demand, expanding the range of "zero-duty" goods to approximately 6600 tariff lines, with a proportion of "zero-duty" goods reaching 74%. The implementation of these policies will further reduce production costs for island enterprises, stimulate market vitality, significantly enhance the level of trade liberalization and facilitation in Hainan Free Trade Port, and demonstrate China's firm commitment to expanding opening-up and establishing Hainan Free Trade Port as a key gateway for China's new era of opening-up. The full text of the notice provides detailed guidelines on the tax policies for goods entering and leaving the "frontline" and "second line" of Hainan Free Trade Port. It also outlines procedures for determining eligible entities, monitoring and enforcement measures, and consequences for violations. The notice is expected to be implemented from the date of the island-wide closure of Hainan Free Trade Port.