Hainan Rolls Out “Zero Tariff” Policy for Own-Use Production Equipment

On 4 March, the General Administration of Customs (GAC) issued and put into force the measures for the trial implementation of the “zero tariff” policy on production equipment imported by enterprises in the Hainan Free Trade Port for own use (GAC Announcement No. 23 [2021]). Prior to the treatment of the entire Hainan island as a customs bonded area, production equipment imported by enterprises registered in the Hainan Free Trade Port that have independent legal person status for own use can be exempt from import duties, import value-added tax and consumption tax. “Own-use” production equipment eligible for “zero tariff” is subject to “negative list” management. This policy does not apply to goods that are specifically excluded from any import tax exemption according to relevant laws and regulations, prohibited from import, or listed in the annex of the aforementioned announcement.

Source: General Administration of Customs