A drone photo taken on December 10, 2025 shows the centralized inspection yard for freight at Xinhai Port and South Port in Haikou, South China's Hainan Province. The yard will handle over 75 percent of the province's cargo, express mail and parcel customs clearance and inspection tasks. Hainan Free Trade Port will officially launch island-wide independent customs operation on December 18, 2025. Photo: cnsphoto

The provincial government of South China’s Hainan Province on Tuesday released an official announcement saying that the Hainan Free Trade Port (FTP) will formally launch island-wide special customs operations from Thursday. 

The move is made in accordance with the decisions and arrangements of the Communist Party of China Central Committee, and marks the formal start of the island-wide special customs operations of Hainan, according to a notice published on the provincial government’s website.

The development is widely seen as a major milestone in the opening-up drive of the world's second largest economy, despite rising protectionism worldwide, Chinese analysts said.

From the date the island-wide special customs operations take effect, a series of policy and regulatory documents will be implemented in accordance with their respective provisions, read the announcement.

These include a notice detailing tax policies for the goods moving across the “first line” (between Hainan and overseas markets) and the “second line” (the customs boundary between Hainan Island and the Chinese mainland), and for goods circulating within the island, along with a notice on the catalogue of imported goods subject to taxation within the Hainan FTP.

The documents also cover interim rules on customs supervision and tax administration for duty-free processing value-added goods, a list of goods and items that are prohibited or restricted from import and export, and the overall customs supervision measures for the free trade port.

The announcement said that all the above-mentioned documents will come into force on the date the island-wide special customs operations are officially launched.

Under the special customs operations, the Hainan free trade port will apply a supervision model of “freer access at the first line, regulated access at the second line, and free circulation within the island.” The first refers to more facilitative entry for goods from overseas, with most enjoying zero tariffs and simplified customs procedures, while the second category subjects goods to standard customs supervision.

At present, preparatory work has entered final stage, with customs officers working to fine-tune regulatory lines and conduct drills of relevant procedures as they gear up for the launch of the island-wide special customs operations, Xinhua News Agency reported.

Authorities in Hainan said on Saturday that they will continue to carry out comprehensive drills and round-the-clock trial operations for the island-wide special customs operations under real-world conditions, to ensure smooth and efficient coordination across all departments.

Global Times