Flights allowed to refuel with bonded jet fuel in the Hainan FTP

On July 8, a notice calling for the immediate implementation of the policy allowing flights to and from the Hainan Free Trade Port to refuel with bonded aviation fuel was jointly issued by the Ministry of Finance, the General Administration of Customs, and the Civil Aviation Administration of China.

According to the notice’s first provision, before the island-wide customs clearance begins operation scheduled by 2025, domestic flights to and from Hainan Island are permitted to refuel with bonded jet fuel at the island's public airports and will be exempted from customs duties, VAT, and excise taxes.

International flights and flights to and from Hong Kong, Macau, and Taiwan may refuel with bonded aviation fuel in Hainan Island in compliance with the current regulations, which stipulate that flights operated by domestic airlines fall under the first provision of the notice mentioned above.

The policy allowing refueling with bonded jet fuel for flights to and from Hainan Island will further reduce air transportation industry operating costs in the Free Trade Port, bringing more people and logistics business to Hainan.