The Ministry of Finance, the General Administration of Customs and the State Taxation Administration released on November 12, 2020 the Circular about "Zero Tariff" Policies for Importing Raw Materials to Hainan Free Trade Port, to be implemented from December 1, 2020.
According to the circular, if a company has been registered and secured independent legal entity at the free trade port before the island is closed off, and it imports raw materials for production, processing or service trade purposes and will export finished products to foreign destinations, it will be exempted from import tariff, import value-added tax and consumption tax. The "zero tariff" materials will be managed through a positive list, which includes 169 items in eight tax categories in the first stage.