Hainan’s Import and Export Management Policy Expands Trials in Haikou’s Two Bonded Zones

After expanding the trial policy, enterprises in Haikou Integrated Free Trade Zone and Haikou Airport Comprehensive Bonded Zone can enjoy preferential processing value-added tax policies. Goods produced with value-added processing, exceeding 30% in Haikou Integrated Free Trade Zone and Haikou Airport Comprehensive Bonded Zone by enterprises belonging to the list of Encouraged Industries of the Hainan Free Trade Port, are exempt from import duties and subject to an import value-added tax and consumption tax when they are sold outside the zone.

Chen Shun, deputy secretary of working committee of Haikou Integrated Free Trade Zone said that through the combination of the free trade port’s "zero tariff" and processing value-added tax policies, they will vigorously introduce key industries in various fields such as high-end medical equipment manufacturing, jewelry and jade processing, and high-end consumer goods manufacturing, to promote investment.

With the strong support of Customs and Haikou Integrated Free Trade Zone, Hainan Fosun Boyiya Medical Technology Co., Ltd. has become the first batch of value-added processing enterprises registered in Haikou Integrated Free Trade Zone.

According too Yi Yuxuan, director of Hainan Project of Fosun Medical Devices, the implementation of this policy is expected to help reduce the cost of ventilators. In the future, relying on the production base in Hainan, they aim to continue to accelerate the introduction of several of the latest European mechanical ventilation products, facilitate the reduction of production costs, and help more patients in China enjoy advanced medical devices.