Core Insights - The company Kunyue (Hainan) Food Co., Ltd. is expanding its operations by planning to process pistachios and produce pistachio paste for the European mid-to-high-end market [1] - The company has established a processing production line with an annual capacity of 20,000 tons and is expected to achieve an annual export value of 500 million yuan [1] - The company is the first in Dongfang City to benefit from the Hainan Free Trade Port's processing value-added tax exemption policy [1] Group 1: Business Development - The company has successfully completed the entire process from signing the contract to policy implementation in less than a year since signing in early 2024 [1] - The company is in discussions with the Daily Nut brand to provide nut processing services [1] Group 2: Policy and Support - The "three-business integration" concept of investment attraction, business environment, and consultative democracy played a crucial role in the company's success [1] - The Xiangqiong Advanced Manufacturing Industry Co-Building Industrial Park has implemented an "all-cycle running" service model, providing early intervention during project negotiations [1] - The company optimized its production line layout and process flow, achieving a processing value-added rate of over 30% and successfully obtaining the pilot qualification for the Hainan Free Trade Port's processing value-added tax exemption [1]

Core Viewpoint - The first batch of enterprises and their products recognized under the "Hainan Self-produced Goods Enterprise (Goods) Directory" has been released, marking a significant step in the development of Hainan's free trade port [1] Group 1: Recognition of Enterprises - Four enterprises from four counties in Hainan (Chengmai, Baoting, Ledong, and Dongfang) have been included in the directory, with a total of five products recognized [1] - The recognized products include coffee beans, coconuts, sun-dried pickled salt, small packaged salt, and refined salt [1] Group 2: Policy Implementation - The recognition is based on the "Interim Measures for the Recognition and Management of Hainan Self-produced Goods under the Duty-free Processing and Value-added Policy" [1] - After the closure operation, enterprises using recognized self-produced goods can deduct the price of these goods from the domestic procurement cost when calculating the value-added rate [1] Group 3: Future Plans - Starting from December 18, 2025, the self-produced goods of the recognized enterprises can be included in the value-added component for processing and value-added registered enterprises [1] - The Hainan Provincial Department of Commerce plans to collaborate with local governments, industry authorities, and customs to support enterprises in expanding their customer base among processing and value-added registered enterprises [1]

Core Viewpoint - The processing and value-added goods domestic sales tax exemption policy is a core policy of the Hainan Free Trade Port, optimized in four key areas compared to the existing pilot policy [1] Group 1: Policy Optimization - The threshold for enterprises to enjoy benefits has been relaxed, removing the requirement that the main business income of encouraged industries must account for over 60% of total revenue [1] - The range of imported materials has been expanded [1] - The calculation formula for value-added processing has been optimized, allowing the value of self-produced goods in Hainan Free Trade Port to be included in the value-added portion [1] - The scope of cumulative value-added processing has been expanded [1]

Core Viewpoint - The Deputy Director of the Development Division for Free Trade Zones and Special Areas of the General Administration of Customs, Du Zhaoxin, stated that after the closure, the policy for processing trade with value-added tax exemptions will be further optimized and improved in four aspects [1] Group 1 - The optimization of the processing trade policy aims to enhance the competitiveness of the free trade zones [1] - The adjustments will focus on improving the efficiency and effectiveness of customs procedures [1] - The initiative is part of broader efforts to support economic growth and facilitate trade [1]

Core Viewpoint - The processing and value-added goods sales tax exemption policy in Hainan Free Trade Port has been optimized to enhance benefits for enterprises, encouraging industrial development and supply chain expansion [1] Summary by Relevant Sections Policy Overview - The policy allows goods processed in Hainan Free Trade Port with over 30% value-added from imported materials to enter the mainland without import duties, while still subject to VAT and consumption tax [1] Pilot Program Development - Initiated in July 2021 in Yangpu Bonded Port Area, the pilot program has undergone multiple optimizations over four years, expanding from 2.3 square kilometers to the entire Hainan Free Trade Port [1] Policy Optimizations - The new policy includes several key optimizations compared to the previous pilot: - **Relaxation of Eligibility Criteria**: The requirement for enterprises to have 60% of their total revenue from encouraged industries has been removed [1] - **Expanded Scope of Imported Materials**: The policy now includes "zero tariff" imported goods, broadening the range of applicable materials [1] - **Improved Value-Added Calculation**: The value of domestically produced goods in Hainan is now included in the value-added calculation, making it easier for enterprises to meet the 30% threshold [1] - **Cumulative Value-Added Calculation**: The policy allows for cumulative calculation of value-added from processing by different enterprises, promoting industry chain extension [1] Overall Impact - The optimized policy lowers the threshold for benefits and expands the scope of eligible enterprises, effectively meeting the production needs of local businesses and fostering the development of industrial chains and clusters [1]

Core Viewpoint - The news highlights the upcoming implementation of the Hainan Free Trade Port's full closure operation, scheduled for December 18, 2025, which aims to enhance the region's openness and facilitate trade and investment [12]. Group 1: Tax and Trade Policy Reforms - The Ministry of Finance will continue to deepen tax reforms in Hainan Free Trade Port, ensuring sustained policy strength and the release of policy dividends, including adjustments to income tax policies and import tax item lists [4]. - The "zero tariff" policy will significantly expand, with the number of taxable items increasing from approximately 1,900 to about 6,600, covering 74% of all taxable items, which is a 53% increase compared to pre-closure policies [9]. - The customs declaration process has been simplified, reducing the number of required declaration items from 105 to 42, enhancing efficiency for businesses [5][6]. Group 2: Customs and Regulatory Framework - The customs authority will optimize the processing and value-added tax exemption policies, including relaxing eligibility criteria and expanding the range of imported materials [7]. - A comprehensive list of prohibited and restricted import/export goods has been established, clarifying management boundaries for businesses and removing import licenses for 60 old mechanical product codes [8]. - The regulatory model will focus on low intervention and high efficiency for "zero tariff" goods, ensuring smooth implementation of open policies [13][14]. Group 3: Operational Readiness and Future Steps - The closure policies are fully prepared, with all necessary documents and hardware conditions completed, including customs smart supervision platforms [11]. - The closure operation is characterized by a "first line" of openness for international trade and a "second line" of management for domestic trade, allowing for free flow of goods within the island [14]. - The upcoming months will focus on helping businesses understand the closure policies and conducting relevant business tests to ensure readiness [12].

Core Insights - The processing value-added duty exemption policy in Hainan has shown significant results in the first half of the year, with enterprises benefiting from over 3.16 billion yuan in new value, a year-on-year increase of 442% [2][3] - The total value of goods benefiting from the policy has surpassed 10 billion yuan, with tax reductions amounting to approximately 840 million yuan, reflecting a growth of 121% [2] Summary by Category Policy Implementation - The Hainan provincial government, in collaboration with various departments, has launched a campaign to promote the processing value-added duty exemption policy, resulting in a substantial increase in participating enterprises and the value of goods [2] - The number of pilot application enterprises has reached 200, a growth of 426%, while the number of approved enterprises has increased by 224% to 123 [2] Economic Impact - Cumulatively, the internal sales value has reached 10.03 billion yuan, marking a 122% increase, with tax exemptions totaling approximately 840 million yuan [2] - In the first half of the year, the newly added value of goods was 3.16 billion yuan, with tax reductions of about 233 million yuan, representing a year-on-year increase of 510% [2] Industry Distribution - The 48 enterprises benefiting from the policy span 10 industry categories, including 18 in agricultural and sideline food processing, 13 in pharmaceutical manufacturing, and 7 in jewelry manufacturing [2][3] - The goods involved include 44 types, such as meat products, sea cucumbers, edible oils, and various types of jewelry and additives [3] Future Plans - The provincial government plans to continue enhancing the application of the processing value-added policy, focusing on discovering new application scenarios and improving enterprise services [3] - There will be an emphasis on targeted招商 (investment attraction) strategies, including case-based and cluster招商, to develop typical cases in specific industries [3]

Core Viewpoint - The article discusses the progress and future plans for the Hainan Free Trade Port, highlighting key policies and reforms aimed at enhancing trade and investment opportunities in the region [1][2]. Group 1: Overview of Hainan Free Trade Port - The Hainan Free Trade Port was officially launched in June 2020, with a focus on exploring a unique model of free trade in China [1]. - The official closure of Hainan Island for customs is set for December 18, 2025, which will introduce more favorable "zero tariff" policies for imported goods [1]. Group 2: Key Policies and Reforms - The "zero tariff" policy will increase the proportion of zero-tariff goods from 21% to 74% for imports into Hainan, allowing for tax-free circulation of goods within the island [1]. - The processing and value-added tax exemption policy has been in place for four years, with 122 companies registered and a total value of approximately 100.3 billion yuan in processed goods, resulting in tax exemptions of about 8.4 billion yuan [2]. Group 3: Optimizations in Processing and Value-Added Policies - The new policy removes the requirement that 60% of a company's revenue must come from encouraged industries, thus lowering the threshold for companies to benefit [3]. - The scope of imported materials has been expanded to include "zero tariff" goods, enhancing the policy's applicability [3]. - The calculation formula for value-added processing has been optimized, allowing for easier achievement of the 30% value-added requirement by including the value of locally produced goods [3]. - The cumulative value-added calculation has been broadened to encourage collaboration among different companies in the processing chain [3].

Core Viewpoint - The Hainan Free Trade Port is set to officially start its customs closure on December 18, 2025, implementing more favorable "zero tariff" policies for imported goods, significantly expanding the range of goods eligible for these benefits [2]. Group 1: Policy Developments - The central government has approved the establishment of a policy system for the Hainan Free Trade Port, which has been progressively developed over the past five years [2]. - The "zero tariff" policy will increase the proportion of eligible imported goods from 21% to 74% after the customs closure [2]. Group 2: Processing and Value-Added Policies - The processing and value-added tax exemption policy has been a significant initiative, with 122 enterprises registered for this policy, resulting in approximately 100.3 billion yuan in internal sales and 8.4 billion yuan in tax exemptions over four years [3]. - The policy allows goods processed in Hainan with over 30% value added to be exempt from import duties when sold to the mainland [3][4]. Group 3: Policy Optimizations - The new policy will lower the threshold for enterprises to benefit, removing the requirement that 60% of total revenue must come from encouraged industries [4]. - The range of eligible imported materials will be expanded to include "zero tariff" goods, enhancing the policy's applicability [4]. - The calculation formula for value-added will be optimized to include the value of locally produced goods, making it easier for enterprises to meet the 30% value-added requirement [4]. - The cumulative value-added calculation will be expanded to allow for value addition across different enterprises, promoting industry chain development [4][5]. Group 4: Overall Impact - The overall adjustments to the processing and value-added policies are expected to lower the barriers for enterprises, broaden the scope of beneficiaries, and better meet the production needs of local businesses, fostering the development of industrial chains and clusters [5].

Core Insights - Hainan Free Trade Port is set to officially launch its full island closure operation on December 18, 2025, coinciding with a significant historical moment in China's reform and opening-up [1] - The "zero tariff" policy will undergo fundamental changes, expanding the list of zero-tariff goods from approximately 1,900 to about 6,600 items, increasing the proportion of zero-tariff goods to 74% of all tariff items, a rise of nearly 53 percentage points [1][2] Group 1 - The closure operation will implement a negative list management model, replacing the existing positive list for imported goods [1] - The policy framework will exhibit four enhanced characteristics: more favorable zero-tariff policies, relaxed trade management measures, more convenient passage measures, and more efficient regulatory models [1][2] - The "one line" and "two lines" policy will facilitate free and convenient entry and exit between Hainan and foreign countries, while implementing precise management with the mainland [2] Group 2 - The processing and value-added tax exemption policy will be optimized, with relaxed eligibility criteria for benefiting enterprises and an expanded range of imported materials [2] - Preparations for the closure operation are fully ready, including the completion of policy documents and hardware facilities, with enhanced capabilities for management [2] - The management system for prohibited and restricted items will be innovatively implemented, allowing for the highest level of openness in the bonded repair sector nationwide [2]