The Ministry of Finance, General Administration of Customs, administration of taxation jointly issued the production equipment of FTP in Hainan for private use the policy of "zero tariff" notice, marked the "free trade port in Hainan construction overall plan" proposed in "to the enterprise imported production equipment, to practice the" zero tariff "negative list management" policy formally Landing.

Production equipment is to point to: infrastructure construction, processing and manufacturing, research and development design, testing, maintenance, logistics, warehousing, medical services, travel of style of equipment needed for production and business operation activities, including the law of the People's Republic of China on import and export tariff of chapter ninety, eighty-five and eighty-four in addition to household electrical appliances and equipment parts, components, accessories, components of other goods.

Enterprise imported production equipment to the policy of "zero tariff" refers to: before the start of full island FTP,  companies registered with independent legal personality of the enterprise imported production equipment, in addition to the laws, regulations and rules clear duty, the provisions of the state banned the import of the goods, as well as the notice attached to the free trade port in Hainan "zero tariff" negative list of self-used equipment listed in the equipment, shall be exempted from tariff and import link value-added tax and consumption tax.

Take amusement equipment imported from theme parks as an example: if a large theme park in Hainan imports amusement equipment priced at 100 million yuan from abroad, it can save 13 million yuan in taxes and fees.

Hainan FTP self-use production equipment "zero tariff" policy characteristics:

One is that there are few types of negative lists. The import of self-use production equipment by enterprises that are not exempt from tax exemption (negative list) only includes the goods (equipment) that are prohibited from import by the state regulations and the 10 categories of goods in the appendix that are not exempt from tax exemption.

Second, we will implement dynamic management of the list. The contents of the list will be dynamically adjusted by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation in conjunction with relevant departments according to the actual needs and supervision conditions of the Hainan Free Trade Port.

Third, the policy has benefited a lot. The introduction of "zero tariff" policy for self-use production equipment will further reduce the tax burden of enterprises in Hainan Free Trade Port and attract more domestic and foreign high-quality enterprises to develop in Hainan Free Trade Port. The zero-tariff policy for self-use production equipment will not only benefit the processing and manufacturing industries, but also include producer services such as R&D, design, testing and maintenance, as well as services such as medical care, health care, cultural, sports and tourism, which have advantages in Hainan Free Trade Port. It will strongly support the development of tourism, modern service industries and high-tech industries.

Full detail of the policy:

Notice on "zero tariff" policy for self-use production equipment of Hainan FTP

Hainan Provincial Finance Department, Haikou Customs, Hainan Taxation Bureau, State Administration of Taxation:

In order to implement the General Plan for the Construction of Hainan Free Trade Port, with the consent of the State Council, the policy of "zero tariff" for self-use production equipment of Hainan Free Trade Port is hereby notified as follows:

1.before start the operation, the island of Hainan free trade port of registration and has the qualifications of independent legal representive.it is also the enterprise imported production equipment, in addition to the laws, regulations and rules clear duty, the provisions of the state banned the import of the goods, as well as the notice attached to the free trade port in Hainan "zero tariff" negative list of self-used equipment listed in the equipment, shall be exempted from tariff and import link value-added tax and consumption tax.

2.the production equipment, mentioned in this notice refers to the infrastructure construction, processing and manufacturing, research and development design, testing, maintenance, logistics, warehousing, medical services, travel of style of equipment needed for production and business operation activities, including the law of the People's Republic of China on import and export tariff of ninety, eighty-five and eighty-four in chapter in addition to household electrical appliances and equipment parts, components, accessories, components of other goods.

3.The list of enterprises that meet the conditions stipulated in Article 1 and the list of enterprises engaged in the industries covered in the appendix shall be determined by Hainan Provincial Development and Reform, Industry and Information Technology and other competent departments in conjunction with Hainan Provincial Department of Finance, Haikou Customs and Hainan Taxation Bureau of State Administration of Taxation, for dynamic adjustment, and shall inform Haikou Customs by letter.

4.The "Zero Tariff" Self-Use Production Equipment Negative List of Hainan Free Trade Port "can be found in the attachment. The contents of the list will be dynamically adjusted by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation in conjunction with relevant departments according to the actual needs and supervision conditions of the Hainan Free Trade Port.

5.Catalogue of Significant Technical Equipment and Products Not Exempt from Tax Exemption, Catalogue of Commodities Not Exempt from Tax Exemption for Foreign Investment Projects and Catalogue of Commodities Not Exempt from Tax Exemption for Domestic Investment Projects shall not apply to the zero-tariff policy for self-use production equipment of Hainan Free Trade Port for the time being. Enterprises that meet the conditions stipulated in this policy can be exempted from customs duty, import value-added tax and consumption tax if they import the equipment in the above three catalogues.

6.For the convenience of enforcement, the Ministry of Finance and the General Administration of Customs, together with relevant departments, will separately define the commodity scope of spare parts, components, accessories and components of household appliances and equipment in Article 2.

7."Zero Tariff" production equipment is limited to the enterprises meeting the conditions stipulated by the policy to use themselves in the Hainan Free Trade Port and accept the supervision of the Customs. In case the transfer is necessary due to the bankruptcy of the enterprise or other reasons, prior to the transfer, the Customs shall obtain the approval and go through relevant procedures. Among them, if the transfer is made to the subject that does not meet the conditions stipulated by the policy, the relevant import taxes should also be paid in accordance with the provisions. The transfer of "zero tariff" production equipment will be subject to VAT and consumption tax in domestic links.

8.Enterprises importing "zero tariff" self-use production equipment and voluntarily paying value-added tax and consumption tax in the import link can apply at the customs declaration.

9.Relevant departments of Hainan Province should strengthen supervision, prevent and control risks, timely investigate and punish violations through Informa ionization and other means, to ensure the smooth operation of the "zero tariff" policy on production equipment, and strengthen information interconnection among relevant departments of Hainan Province to share information on enterprises that meet the conditions of the policy and the supervision of "zero tariff" production equipment.

10.This Notice shall come into effect as of the date of promulgation.

Attachment: Negative List of “Zero Tariff“ self-use production equipment of Hainan FTP

Ministry of Finance 

General Administration of Customs 

General Administration of Taxation

(Origin: Hainan FTP Official)