CHINA. On 4 February, China’s Ministry of Finance, the General Administration of Customs and the State Taxation Administration jointly issued a notice formally introducing a zero-tariff policy for imported goods purchased by Hainan Free Trade Port residents.
Effective immediately, the policy allows eligible residents to buy specified imported goods duty-free for personal consumption, under approval from the State Council and in line with the Overall Plan for the construction of the Hainan Free Trade Port.
Here are the key takeaways:
1. Imported goods purchased by Hainan residents at designated business premises shall be exempt from import duties, as well as import-stage and domestic-stage VAT and consumption tax, provided that such purchases fall within the specified duty-free quotas and product list.
2. ‘Hainan residents’ refers to Chinese citizens holding a Hainan Province ID card, Hainan Province residence permit, or Hainan Province social security card, as well as foreign nationals working and living in Hainan Province with residence permits.
3. The ‘zero-tariff’ imported goods shall be managed under a positive list, the specific scope of which is detailed in the appendix*. Hainan residents may purchase the listed imported goods at designated business premises without any limit on the number of purchases, provided they present their valid identification or permit.
Goods shall be picked up on-site. The total duty-free purchase amount per person per year shall not exceed CNY10,000 (US$1,441). The positive list shall be adjusted in a timely manner, based on the actual needs of Hainan Province and regulatory conditions, by the Ministry of Finance, the General Administration of Customs and the State Taxation Administration in consultation with relevant departments.
4. ‘Designated business premises’ refers to duty-free shops that are qualified to implement the ‘zero-tariff’ policy for imported goods purchased for consumption by Hainan residents. Business entities selling ‘zero-tariff’ imported goods must, in accordance with regulations, pay a concession fee to the state for the operation of duty-free retail.
Specific management measures for the approval of business entities and the establishment of business premises shall be separately formulated by the Hainan Provincial People’s Government after completing the statutory procedures within the province.
The results of business entity approvals and the establishment of business premises shall be reported to the Ministry of Finance, the General Administration of Customs and the State Taxation Administration for record-keeping.
5. Customs shall supervise the ‘zero-tariff’ imported goods and the business premises where they are sold, treating them as duty-free goods and duty-free shops. ‘Zero-tariff’ imported goods must be imported from overseas. Relevant regulations shall be followed where import licences, approvals, registration or filing are required.
6. ‘Zero-tariff’ imported goods purchased by Hainan residents are for personal use as final consumer goods and shall not be resold.
7. The Hainan Provincial People’s Government shall bear the primary responsibility for preventing and controlling the risk of smuggling of ‘zero-tariff’ imported goods. Where necessary for risk prevention and control, measures such as limiting purchase quantities for certain goods shall be implemented.
Supervision shall be strengthened through informatisation and traceability management, and violations shall be promptly investigated and dealt with to ensure risk control and the stable implementation of the policy. Specific risk prevention and control plans shall be separately formulated by the Hainan Provincial People’s Government in consultation with relevant departments.
8. Individuals who violate the provisions of this notice by reselling, acting as daigou agents for, or smuggling ‘zero-tariff’ imported goods shall be prohibited from purchasing ‘zero-tariff’ imported goods for three years. The Hainan Provincial People’s Government shall include such violations in their credit records in accordance with relevant laws and regulations.
Individuals or entities that engage in or assist in smuggling, or violate customs supervision regulations, shall be investigated by customs. If a crime is constituted, criminal liability shall be pursued in accordance with the law.
Business entities selling ‘zero-tariff’ imported goods that violate relevant regulations shall be penalised by the Hainan Provincial People’s Government in accordance with relevant laws and administrative regulations. If a crime is constituted, criminal liability shall be pursued in accordance with the law. 🏝️
List of ‘zero-tariff’ imported goods for consumption by residents within the Hainan Free Trade Port
No. | Tariff Code | Commodity Name |
1 | 02101110 | Dried, smoked or salted pork legs with bone |
2 | 03025100 | Fresh or chilled cod |
3 | 03032400 | Frozen catfish |
4 | 03033900 | Other frozen flatfish |
5 | 03036300 | Frozen cod (Atlantic cod, Greenland cod, Pacific cod) |
6 | 03036400 | Frozen haddock |
7 | 03036900 | Other frozen cod |
8 | 03046290 | Frozen other catfish fillets |
9 | 03061630 | Frozen cold-water shrimp and prawn (Pandalus, Crangon) meat |
10 | 03061640 | Frozen northern prawn (Pandalus borealis) |
11 | 03061690 | Other frozen cold-water shrimp and prawn (Pandalus, Crangon) |
12 | 03063590 | Live, fresh or chilled cold-water shrimp |
13 | 03063690 | Live, fresh or chilled other shrimp |
14 | 04011000 | Milk and cream, not concentrated nor sweetened, with fat content not exceeding 1% |
15 | 04012000 | Milk and cream, not concentrated nor sweetened, with fat content 1-6% |
16 | 04014000 | Milk and cream, not concentrated nor sweetened, with fat content 6-10% |
17 | 04015000 | Milk and cream, not concentrated nor sweetened, with fat content exceeding 10% |
18 | 04021000 | Solid milk and cream with fat content ≤1.5% |
19 | 040221000 | Solid milk and cream with fat content >1.5%, unsweetened |
20 | 04032010 | Yoghurt containing only sugar, fruit, nuts, etc. |
21 | 04032090 | Other yoghurt |
22 | 04051000 | Butter |
23 | 04061000 | Fresh cheese, curd |
24 | 04062000 | Grated or powdered cheese |
25 | 04063000 | Other processed cheese |
26 | 04064000 | Blue cheese and other cheese with veins produced by Penicillium roqueforti |
27 | 04069000 | Other cheese |
28 | 08044000 | Fresh or dried avocados |
29 | 08045030 | Fresh or dried mangosteens |
30 | 08051000 | Fresh or dried oranges |
31 | 08054000 | Fresh or dried grapefruit, including pomelos |
32 | 08061000 | Fresh grapes |
33 | 08081000 | Fresh apples |
34 | 08083090 | Other fresh pears |
35 | 08092900 | Other fresh cherries |
36 | 08094000 | Fresh plums and sloes |
37 | 08104000 | Fresh cranberries, bilberries and other fruits of the genus Vaccinium |
38 | 08105000 | Fresh kiwifruit |
39 | 08106000 | Fresh durians |
40 | 16025010 | Canned beef and beef offal |
41 | 16041110 | Prepared or preserved Atlantic salmon (whole or in pieces) |
42 | 16041190 | Prepared or preserved other salmon (whole or in pieces) |
43 | 16041200 | Prepared or preserved herrings (whole or in pieces) |
44 | 16041300 | Prepared or preserved sardines (whole or in pieces) |
45 | 16041400 | Prepared or preserved tuna, bonito and skipjack (whole or in pieces) |
46 | 16041500 | Prepared or preserved mackerel (whole or in pieces) |
47 | 16041600 | Prepared or preserved anchovies (whole or in pieces) |
48 | 16055100 | Prepared or preserved oysters |
49 | 16055200 | Prepared or preserved scallops, including queen scallops |
50 | 16055300 | Prepared or preserved mussels |
51 | 16055400 | Prepared or preserved cuttlefish and squid |
52 | 16055500 | Prepared or preserved octopus |
53 | 16055610 | Prepared or preserved clams |
54 | 16055700 | Prepared or preserved abalones |
55 | 16056100 | Prepared or preserved sea cucumbers |
56 | 17041000 | Chewing gum, whether or not sugar-coated |
57 | 17049000 | Other sugar confectionery not containing cocoa |
58 | 18063100 | Other chocolate and cocoa-containing foodstuffs in blocks or bars, filled, net weight ≤2kg per piece |
59 | 18063200 | Other chocolate and cocoa-containing foodstuffs in blocks or bars, not filled, net weight ≤2kg per piece |
60 | 18069000 | Other chocolate and cocoa-containing foodstuffs, net weight ≤2kg per piece |
61 | 19011010 | Retail-packaged formula milk powder for infants and young children |
62 | 19011090 | Other retail-packaged food for infants and young children |
63 | 19023030 | Instant or quick-cooking noodles |
64 | 19041000 | Food prepared by puffing or roasting cereals or cereal products |
65 | 19042000 | Food prepared from unroasted cereal flakes and mixed foodstuffs (roasted or unroasted) |
66 | 19051000 | Rye crispbread |
67 | 19053100 | Sweet biscuits |
68 | 19053200 | Waffles and communion wafers |
69 | 19054000 | Rusks, toast and similar toasted bread |
70 | 20011000 | Cucumbers and gherkins prepared or preserved in vinegar or acetic acid |
71 | 20021010 | Canned whole or sliced tomatoes, not prepared in vinegar |
72 | 20029011 | Canned tomato paste, weight ≤5kg |
73 | 20041000 | Frozen potatoes, not prepared in vinegar |
74 | 20055119 | Canned other cowpeas and kidney beans, shelled, not prepared in vinegar |
75 | 20079910 | Other canned cooked jams, jellies, fruit purees and fruit pastes |
76 | 20082010 | Canned pineapples |
77 | 20091200 | Non-frozen orange juice with Brix value not exceeding 20 |
78 | 20091900 | Non-frozen orange juice with Brix value exceeding 20 |
79 | 20095000 | Tomato juice |
80 | 20097100 | Apple juice with Brix value not exceeding 20 |
81 | 20097900 | Apple juice with Brix value exceeding 20 |
82 | 20098100 | Cranberry juice |
83 | 20098916 | Seabuckthorn juice |
84 | 20098919 | Other unmixed fruit juices |
85 | 20098920 | Other unmixed vegetable juices |
86 | 20099010 | Mixed fruit juices |
87 | 20099090 | Mixed nut juices, vegetable juices, or mixed juices of fruits, nuts and vegetables |
88 | 21011100 | Coffee extracts and concentrates |
89 | 21011200 | Products with coffee extracts or coffee as the basic component |
90 | 21012000 | Tea, mate extracts and concentrates, and their products |
91 | 21031000 | Soy sauce |
92 | 21032000 | Tomato ketchup and other tomato sauces |
93 | 21033000 | Mustard flour and mustard condiments |
94 | 21039010 | Monosodium glutamate (MSG) |
95 | 21039090 | Other condiments |
96 | 21041000 | Soups and soup preparations |
97 | 21042000 | Homogenised mixed foodstuffs |
98 | 21050000 | Ice cream and other ice-based foodstuffs (whether or not containing cocoa) |
99 | 21069040 | Coconut milk |
100 | 22011010 | Mineral water (not flavoured, sweetened or containing other sweetening substances) |
101 | 22011020 | Soda water (not flavoured, sweetened or containing other sweetening substances) |
102 | 22021000 | Water, including mineral water and soda water, flavoured, sweetened or containing other sweetening substances |
103 | 22029900 | Other non-alcoholic beverages, excluding fruit and vegetable juices |
104 | 22090000 | Vinegar and substitutes for vinegar obtained from acetic acid |
105 | 23091010 | Retail-packaged canned dog or cat food |
106 | 23091090 | Other retail-packaged dog or cat food |
107 | 33051000 | Shampoos |
108 | 33052000 | Hair waving preparations |
109 | 33053000 | Hair styling preparations |
110 | 33059000 | Other hair care products |
111 | 33061010 | Toothpaste |
112 | 33061090 | Other dentifrices |
113 | 33062000 | Dental floss |
114 | 33069010 | Mouthwashes |
115 | 33069090 | Other oral hygiene products |
116 | 33071000 | Shaving preparations |
117 | 33072000 | Human deodorants and antiperspirants |
118 | 33073000 | Bath salts and other bathing preparations |
119 | 33074100 | Incense and other products emitting fragrance through combustion for indoor use |
120 | 33074900 | Indoor deodorising products |
121 | 33079000 | Depilatories and other unlisted aromatic products |
122 | 34011100 | Toilet soap |
123 | 34011910 | Laundry soap |
124 | 34011990 | Other soap |
125 | 34012000 | Soap in other than bar form |
126 | 34025010 | Synthetic detergent powders |
127 | 34025090 | Organic surfactant products |
128 | 34060000 | Candles of all kinds |
129 | 61112000 | Knitted or crocheted infant’s clothing and accessories of cotton |
130 | 61113000 | Knitted or crocheted infant’s clothing and accessories of synthetic fibres |
131 | 61119010 | Knitted or crocheted infant’s clothing and accessories of wool or fine animal hair |
132 | 61119090 | Knitted or crocheted infant’s clothing and accessories of other textile materials |
133 | 69111011 | Bone china tableware |
134 | 69111019 | Other porcelain tableware |
135 | 69111021 | Porcelain kitchen knives |
136 | 69111029 | Other porcelain kitchen utensils |
137 | 69120010 | Earthenware tableware |
138 | 69120090 | Earthenware kitchen utensils |
139 | 70131000 | Glass-ceramic utensils and glassware for table, kitchen, toilet, office, interior decoration or similar purposes |
140 | 70132200 | Lead crystal glass goblets |
141 | 70132800 | Other glass goblets |
142 | 70133300 | Other lead crystal glass cups |
143 | 70133700 | Other glass cups |
144 | 70134100 | Lead crystal glass tableware and kitchenware |
145 | 70134200 | Glass tableware and kitchenware with low coefficient of linear expansion |
146 | 70134900 | Other glass tableware and kitchenware |
147 | 70139100 | Other lead crystal glassware |
148 | 70139900 | Other glassware |
149 | 73231000 | Steel wool; scouring pads, gloves and similar articles for scouring or cleaning |
150 | 73239100 | Enamelware-free cast iron tableware, kitchenware and other household utensils and their parts |
151 | 73239200 | Enamelled cast iron tableware, kitchenware and other household utensils and their parts |
152 | 73239300 | Stainless steel tableware, kitchenware or other household utensils and their parts |
153 | 73239420 | Enamelled steel saucepans |
154 | 76151010 | Aluminium scouring pads, gloves and similar articles for scouring or cleaning |
155 | 76151090 | Other aluminium tableware, kitchenware and other household utensils and their parts |
156 | 82083000 | Knives and blades for kitchen or food processing machines |
157 | 82100000 | Manual machinery for processing or preparing food or beverages |
158 | 82111000 | Sets of goods with knives as the main component |
159 | 82119100 | Table knives with fixed blades |
160 | 82121000 | Razors |
161 | 82122000 | Safety razor blades |
162 | 82130000 | Scissors, tailor’s shears and similar articles; scissor blades |
163 | 82141000 | Paper knives, letter openers, pencil sharpeners and blades therefor |
164 | 82142000 | Manicure and pedicure sets (including nail files) |
165 | 82149000 | Hair clippers, kitchen knives and other cutting tools |
166 | 82152000 | Other sets of kitchen or table utensils |
167 | 82159900 | Other non-set kitchen or table utensils |
168 | 87150000 | Baby carriages and their parts |
169 | 95030010 | Wheeled toys and dolls’ carriages for children to ride on |
170 | 95030021 | Toy animals |
171 | 95030029 | Other dolls |
172 | 95030060 | Educational toys |
173 | 95030083 | Toys and models with power-driven mechanisms |
174 | 95030089 | Other unlisted toys |
175 | 95030090 | Parts of toys |
176 | 95049030 | Chess products such as Chinese chess, international chess, checkers, etc. |
177 | 95066100 | Lawn tennis balls |
178 | 95066210 | Basketballs, footballs, volleyballs |
179 | 95066290 | Other inflatable balls |
180 | 95066900 | Other balls |
181 | 95069910 | Skateboards |
182 | 96032100 | Toothbrushes, including toothplate brushes |
183 | 96033010 | Painting brushes |
184 | 96033020 | Writing brushes |
185 | 96050000 | Travel sets for personal grooming, sewing, etc. |
186 | 96081000 | Ballpoint pens |
187 | 96082000 | Felt-tip pens and other porous-tip pens and marker pens |
188 | 96083010 | Ink brushes |
189 | 96083020 | Fountain pens |
190 | 96083090 | Other fountain pens |
191 | 96084000 | Mechanical pencils |
192 | 96091010 | Pencils |
193 | 96091020 | Coloured pencils |
194 | 96151100 | Combs and hairpins of hard rubber or plastic |
195 | 96151900 | Combs and hairpins of other materials |
196 | 96159000 | Other hairpins, curlers, etc. and their parts |
197 | 96170011 | Vacuum flasks with glass liners |
198 | 96170019 | Other vacuum flasks |
199 | 96190011 | Baby diapers and nappies |
200 | 96190019 | Adult diapers and nappies |
201 | 96190020 | Sanitary napkins (pads) and tampons |
202 | 96190090 | Similar articles to sanitary napkins or diapers of any material |
