Hainan Free Trade Port's 100 Days of Customs Closure Practice: Creating a High-Level Opening-up "Masterpiece"

Source: China Securities Journal | Author: Wang Lijing

Where the South China Sea tides surge and swell, sails are raised and forward momentum is fierce. On the occasion of the 25th anniversary of the Boao Forum for Asia, Hainan’s entire free trade port has made its first global debut after full customs closure operations. From the launch of full customs closure on December 18, 2025 to the conclusion of the forum on March 27, 2026—over just a hundred days—this is not only a “pressure test period” for Hainan’s free trade port, but also a “live-action answer sheet” of China’s high-level opening-up.

In recent days, the reporter has traveled through the Boao conference venue, corporate workshops, and airports and cargo ports, and has truly felt the pace of this hot land opening up amid the wave of the new era.

— The number of routes is getting denser, building a new international aviation hub.

Since full customs closure, the three airports under Hainan Airport—Haikou Meilan, Sanya Phoenix, and Boao Qionghai—have handled a total of 110,000 flight takeoffs and landings, with passenger throughput reaching 18.21 million, cargo and mail throughput of 120,000 tons. Key aviation transportation indicators have grown steadily; the international route network has continued to be intensified across the province. The number of overseas routes has increased to 85, connecting 23 countries and 45 overseas cities, gradually turning Hainan into an important aerial gateway linking the world, which is increasingly becoming an industry consensus.

“By densifying air corridors and making good use of policies such as open aviation traffic rights, Hainan is building an efficient transit system to keep the ‘air arteries’ of domestic and international dual circulation flowing. At the same time, we are amplifying the dividends of policy incentives, leveraging policies such as ‘zero-tariff’ imports of aircraft and bonded maintenance and repair to attract global airlines to cluster here, and to strengthen aviation maintenance, aviation logistics, and other air-port-related industries.” Huang Erwei, Deputy Secretary of the Board of Directors of Hainan Airport, said.

Deepening its presence in Hainan, Hainan Airlines is accelerating the building of a route hub network. Recently, Hainan Airlines released plans for the addition of more than 90 domestic routes for the summer–autumn new flight season. Benefiting from the “zero-tariff” and value-added processing policies after customs closure, Hainan Airlines’ Haikou Gaines has not only cumulatively saved about 100 million yuan in taxes and fees for imported equipment for its own use since it began setup and construction in 2021, but has also—through an innovative regulatory model of “direct clearance into the zone”—compressed the transportation time for bonded maintenance and repair of engines from 1 day to 40 minutes.

— Opening releases dividends, gathering new opportunities for development.

At the Boao Forum for Asia “Global Free Trade Port Development Forum,” the hundred-day data released by Hainan stands out particularly: the number of newly registered foreign-invested enterprises increased by 33.5%, foreign trade imports and exports grew by 32.9%… With a stack of policies such as zero-tariff, value-added 30% tax-free rates, and the “double 15%” income tax, Hainan has become a “fast lane” for foreign capital to enter the Chinese market.

At the same time, Hainan has implemented measures such as “one-window handling” for work permits and residence permits for foreign personnel, and the opening up of data flows in the value-added telecommunications sector, to continuously optimize the business environment by providing high-quality institutional services—so that global investors can truly feel the sincerity of the free trade port’s opening up. “Post-customs-closure Hainan is becoming a precious resource of stability for international trade.” Jack Perry, Chairman of the UK’s 48 Group, said.

According to information, Hainan is accelerating the construction of the “two bases, two hubs, and two networks,” promoting its upgrade from a regional trade node to a comprehensive trade hub connecting domestic and international trade, and building the intersection point of the dual-circulation strategy. At the same time, through the “Global Free Trade Zone (Port) Partner Program,” Hainan has attracted more than 40 free trade zones (ports) to join, continuously expanding its “circle of friends” and extending industrial chains.

— Industrial vitality is bursting forth, activating new momentum for development.

Since the hundred days of customs closure, relying on free trade port policies, Hainan has been steadily moving forward along the path of industrial transformation and upgrading, steadily turning policy dividends into driving force for high-quality development.

Inside the factory compound of Hainan Ausca International Grains and Oils Co., Ltd. in Hainan Yangpu Economic Development Zone, soybean shipments arriving from countries including Brazil and Canada have been unloading and putting into storage one after another. The processed edible oils are packed and ready to depart, soon to be loaded onto ships for sea transport. Between “in” and “out,” a single soybean is processed into high-quality edible oil in an intelligent workshop, completing a leap in value along the shore of the South China Sea.

“ The value of a single soybean lies not only in the soybean itself, but also in the space for value-added that the free trade port policies of Hainan provide.” Zhang Hui, Chairman of Ausca Grains and Oils, introduced. Thanks to Hainan’s free trade port value-added processing policy of “30% tax-free,” imported soybeans are refined here through deep processing. The cumulative reduction and exemption of tariffs are used to expand the company’s scale.

“ The ‘zero-tariff’ policy directly lowers the raw material and equipment costs for high-end manufacturing, medical device and other companies. The ‘double 15%’ income tax policy significantly boosts companies’ net profits and their ability to attract talent. With the two policies combined, companies gain a full-chain cost advantage—from production to profitability.”

Wang Shunye, Managing Partner in charge of the South China tax market at PwC, told the reporter that the next step is to further refine policy implementation guidance, improve facilitation levels for customs clearance, settlement, and other processes, strengthen supporting infrastructure and talent resources, and reduce enterprises’ hidden costs, so that policy dividends can be injected into companies more smoothly.

From the transformation and upgrade of Boao town to the expansion and quality improvement of the aviation hub, from precise and efficient policy implementation to the resolute pace of industrial upgrading—this hundred-day practice of full customs closure for Hainan’s free trade port not only sketches the growth trajectory of an island, but also clearly shows China’s firm determination to expand opening up.

(Editor: Wen Jing)

Keywords:

                                                            Hainan Free Trade Port