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I. Enterprises registered in the Hainan Free Trade Port that are independent legal entities shall be exempted from import duties, import value-added tax, and consumption tax on goods that are not included in the import taxable goods catalogue.
A “Frontline” shall be established between the Hainan Free Trade Port and other countries and regions outside the customs territory of the People's Republic of China. Goods entering the Hainan Free Trade Port through the “Frontline”, except those prohibited from importation by the state or explicitly designated as non-exempt or non-bonded under national laws and administrative regulations, shall be handled as follows:
Imported taxable goods shall be subject to a catalogue management system at the “Frontline”. Goods listed in the catalogue shall be subject to import duties, import-stage VAT, and consumption tax in accordance with regulations. The Ministry of Finance, the General Administration of Customs, and the State Taxation Administration, in conjunction with relevant departments, shall separately define the scope of the catalogue of taxable imported goods.
Enterprises registered in the Hainan Free Trade Port with independent legal person status, public institutions within the Hainan Free Trade Port, and private non-enterprise units in the fields of science and technology or education registered in the Hainan Free Trade Port and approved by the Ministry of Science and Technology and the Ministry of Education in conjunction with the Ministry of Civil Affairs, or by provincial science and technology/education authorities in conjunction with provincial civil affairs departments (referred to as “beneficiary entities” below) shall be exempt from import duties, import-stage value-added tax, and consumption tax (referred to as “zero tariffs” below) for goods not included in the catalogue of taxable imported goods. Beneficiary entities may voluntarily apply to customs to pay import duties, import-stage VAT, and consumption tax (or import-stage VAT and consumption tax). After voluntarily waiving the “zero-tariff” import qualification for goods, they may not reapply for “zero-tariff” import of similar goods within 12 months.
II. Implementation of Preferential Policies to Encourage Domestic Reinvestment by Foreign-Invested Enterprises
(1) Support foreign-invested enterprises in reducing initial land costs through flexible approaches such as long-term industrial land leases, lease-to-own arrangements, and flexible-term land grants when reinvesting domestically. Specific methods shall follow current incentive and support policies.
(2) When a wholly-owned domestic legal entity newly established by a foreign-invested enterprise applies for industry access permits already obtained by its parent company, the competent industry authority may optimize and streamline the processing procedures and shorten the processing time in accordance with the law for applications that meet the basic requirements.
(3) Relevant tax support policies shall be implemented and enforced in accordance with the law to encourage overseas investors to reinvest in China and promote the formation of more effective investments.
(4) Projects invested in by domestic reinvestment enterprises of foreign-invested enterprises shall enjoy relevant support policies for imported equipment if they comply with the Catalogue of Industries Encouraging Foreign Investment.
(5) Foreign exchange funds generated from legally earned profits by foreign-invested enterprises or from legally obtained profits by foreign investors within China may be transferred domestically in accordance with regulations when used for domestic reinvestment.
Reference/Citation
1. Circular No. 12 [2025] of the Ministry of Finance, General Administration of Customs, and State Taxation Administration on Tax Policies for Goods Entering, Leaving, and Circulating Within the Hainan Free Trade Port
2. Document No. 928 [2025] of the National Development and Reform Commission and Other Departments: Notice on Implementing Several Measures to Encourage Domestic Reinvestment by Foreign-Invested Enterprises
