Core Viewpoint - The Hainan Free Trade Port will officially implement a full island customs closure policy starting December 18, 2025, which is a significant step towards expanding openness and accelerating development [1][2][8]. Group 1: Policy Overview - The full island customs closure will establish Hainan Island as a special customs supervision area, characterized by a policy of "one line open, one line controlled, and free flow within the island" [3][4]. - The policy aims to facilitate the flow of people, goods, capital, and data, enhancing the convenience of trade and investment [2][8]. Group 2: Tax and Trade Management Changes - The coverage of "zero tariff" goods will significantly increase from 1,900 to approximately 6,600 tax items, expanding the range of beneficiaries to include various enterprises and non-profit organizations on the island [10]. - The import of "zero tariff" goods will no longer be limited to self-use by enterprises, allowing free circulation among beneficiaries without the need to pay import taxes [11]. Group 3: Impact on Trade and Investment - The policy will implement more favorable trade management measures, allowing for the import of previously restricted goods under specific arrangements [9]. - The establishment of ten "second-line ports" will facilitate the efficient passage of goods entering the mainland, enhancing trade efficiency [9].

Core Viewpoint - The Hainan Free Trade Port is set to officially launch its customs closure operation on December 18, 2025, marking a significant step in China's commitment to high-level opening-up and facilitating international trade [1][2]. Summary by Relevant Sections Customs Closure and Policy Framework - The customs closure operation is a landmark project for the Hainan Free Trade Port, aimed at further expanding openness and establishing a special customs supervision area across the island [1][2]. - The closure will implement a policy characterized by "one line" for free access and "two lines" for management, allowing for relative free flow of various factors within the island [1][2]. Key Policy Measures - Four key measures have been outlined for the customs closure: 1. A more favorable "zero tariff" policy for goods, increasing the proportion of zero-tariff items from 21% to 74% [2]. 2. More relaxed trade management measures, allowing for open arrangements for certain previously restricted imports [2]. 3. More convenient passage measures through designated ports, facilitating the flow of goods [2]. 4. A more efficient and precise regulatory model to ensure smooth implementation of the new policies [2]. Taxation and Trade Facilitation - The "zero tariff" policy will cover a broader range of goods, expanding from 1,900 to approximately 6,600 tax items, which constitutes about 74% of all goods [4][5]. - The scope of beneficiaries for the "zero tariff" policy will also expand to include various enterprises and non-profit organizations within the island [4][5]. Operational Efficiency and Management - The customs closure will not hinder the movement of people and goods between Hainan and the mainland, maintaining current management practices with minimal changes [6][7]. - A "one-stop customs clearance" model will be established to streamline the process, along with enhanced smart regulatory measures utilizing big data and AI [7][8].