Favorable Policies in Haikou Tax Free Zone
Haikou Tax Free Zone was approved by the State Council as a national level one. Apart from all favorable policies in Hainan Special Economic Zone, it has the following special policies:
1) All enterprises in the zone can be conferred with import and export license after approval and registration. No export and import license applies to imported machinery, construction materials,
office supplies used in the development zone, raw materials, parts, fuel, packed materials, and sailing goods for processing in the development zone, consumer materials in the zone, and goods
transported overseas after being processed in the zone.
2)No tariffs and value added tax apply to imported machinery and construction materials used for infrastructure construction in the zone, imported production and management equipments, fuel for production and operation, office supply, producing fitting out materials, and all parts used for above mentioned machinery.
3) Free tax applies to the materials, parts, components, packing materials, and goods in transit used for producing goods for export. Tax free also applies to 20 kinds of consumption of Tv set,
refrigerator, and A/C used in the zone.
4) Tariff free applies to export-oriented goods produced in the zone. No value added tax applies
except for crude oil and product oil. For export-oriented products processed in the zone with more than 20% of value added, but with materials outside the zone, the same favorable policies apply. The customs will grant tariff exemptions with the confirmation from the economic and hi-tech supervising department of Hainan (export license should be supplemented if it applies).
5）Products to moving between development zone and non-development zone are treated as import and export. For products moving from non- development zone to the development zone and are actually exported overseas in line with export management procedure, the customs can issue export tax rebate slip. For those products with national restriction on import purchased in but taken out of the zone, the customs should permit according to certain amount for self use.
6)Flexible and simple procedures apply to customs, including pre-declaration, concentrated declaration, agent declaration, permit with credit, and pass with supplemented procedure for emergency and 24-hour customs entry for fresh and living goods.
7）Enterprises in the zone can apply for project-based import if the products are for domestic sale. Free tax policies apply to the zone with enclosed management under the supervision of the customs. Apart from national policies, a series of other policies also apply, regulated by the Hainan Province and Haikou city. No quota and license applies to goods between the zone and abroad (except for passive export quota management). Registration should be made for overseas sailing goods, stored goods and processing trade goods to enter the zone. Except for laws or regulations otherwise specify, these rules apply to products moved into the zone from overseas regarding import tariff and other taxes:
(a)tax free for imported machinery, equipment and construction materials for infrastructure;
(b) tax free for production and management equipments for self use, certain amount of office supply, and parts of the equipment, fuel, and materials for building workshops and warehouse;
(c) tax free for imported materials, parts, components, packing articles for processing export-oriented goods;
(d) tax free for sailing goods and stored goods from overseas,that are export again. No time limit applies to storage.
(e) Tax free for import-oriented products produced and processed by enterprises in the zone.
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