China News Service, Haikou, November 4 (Reporter Wang Ziqian) On November 3, a truck loaded with processed value-added preferential products slowly drove out of the factory of Wante Pharmaceutical (Hainan) Co., Ltd. ("Wante Pharmaceuticals"), an enterprise in Haikou National High-tech Zone, and was transported to the warehouse of a commercial company on the island. After arriving, the goods were successively sent to pharmaceutical retail terminals inside and outside the island.
This batch of products is the first business of processing value-added products for sale on the island after the three departments of Hainan Province issued the "Notice on Management Matters Concerning the Island-wide Customs Seal Operation of Hainan Free Trade Port" on the 2nd.
The 30% tariff-free policy for processing value-added (referred to as the "processing value-added policy") is one of the most valuable policies of the Hainan Free Trade Port. Before the Hainan Free Trade Port closed the customs, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation issued a notice clarifying that "goods containing imported materials and parts produced by encouraged industrial enterprises in the Hainan Free Trade Port that have a value-added of more than 30% (inclusive) at the Hainan Free Trade Port will be exempted from import duties when entering the mainland through the "second line", and import value-added tax and consumption tax will be levied in accordance with regulations."
According to the latest policy, goods containing imported materials and parts produced by encouraged industrial enterprises in the Hainan Free Trade Port and whose value-added processing in the Hainan Free Trade Port reaches or exceeds 30%, and are sold on the island, shall refer to the applicable processing value-added policy document requirements for entering the mainland through the "second line" of the Hainan Free Trade Port.
Comparing the two aspects, we can find that the New Deal expands the applicable scenarios for value-added processing from "sales to the mainland through the second tier" to "sales within the island." The industry believes that this refinement can be seen as a refined supplement for the fuzzy areas of practical operation.
"After the policy is refined, sales on the island are clearly included in the scope of policy application, allowing companies to flexibly arrange sales according to market demand, further expanding their customer base, and also conducive to attracting processing companies to deploy production in Hainan and promote the development of local industries." Chen Yajie, an economist at the Institute of Public Diplomacy and Hainan Opening of the China South China Sea Research Institute, told reporters that this adjustment may seem subtle, but it reflects that the construction of the Hainan Free Trade Port system pays more attention to the actual operating needs of enterprises and that specific arrangements are continuously improved during the policy implementation process.
The tariff-free policy for value-added processing is an important “sample” for outsiders to observe the construction of Hainan Free Trade Port. Zhang Yueqiang, deputy director of the Hainan Provincial Department of Commerce, previously introduced that from the island-wide customs closure in Hainan to the end of September 2026, the domestic sales of goods registered by this policy were 910 million yuan, and 81 enterprises benefited, 22 more than before the customs closure, and the beneficiaries covered 14 cities and counties.
Policy changes are transmitted to the business operation level. He Xia, supply chain manager of Wante Pharmaceuticals, said that previously, processed value-added products were only exempted from tariffs if they were sold to the mainland. Products sold to the island still had to pay tariffs during customs declaration. The tariff on imported materials and parts of methylloratadine is 6%, but whether it is exempted or not has brought considerable management and operating costs.
He Xia said that after applying the new policy, companies will not only have lower customs declaration frequency and higher delivery efficiency, but also can save part of the cost of setting up independent warehousing outside the island. It is estimated that by mid-to-late December, the sales value of "second-tier" enterprises out of the zone will reach 20 million yuan, with nearly 100,000 yuan in tariff reductions.
Some observations believe that this refinement of the processing value-added policy not only completes the circulation scenario and drives domestic sales of enterprises, but also has industrial value. Song Xiangqing, vice president of the China Business Economics Association and director of the Free Trade Port (District) Committee, believes that this will open up policy channels for the flow of materials and finished products upstream and downstream of the island's industrial chain, and will help attract processing and manufacturing companies to set up and lengthen the island's industrial chain.
Hainan Zhenge Food Co., Ltd. imports frozen fresh coconut milk from Indonesia for processing and value-added export. Huang Wenwei, general manager of the company, told reporters that after the new policy is implemented, the company can more closely connect with downstream companies on the island and is expected to increase shipments by about 30%.
The relevant person in charge of Haikou National High-tech Zone introduced that the detailed and clear management matters related to the "second line" have opened up a new path for processing value-added products to be sold on the island. The park will continue to expand the benefits of the policy to help enterprises make good use of the policy advantages and achieve high-quality development.
