Core Points - The Hainan Free Trade Port is set to officially launch its customs closure on December 18, 2025, establishing the entire island as a special customs supervision area [3] - A series of innovative measures have been introduced since the release of the overall plan for Hainan Free Trade Port in 2020, laying a solid foundation for the customs closure [3][5] - The policy framework will include a "zero tariff" policy for 74% of imported goods, an increase from the previous 21%, and tax exemptions for goods processed and valued-added by 30% [5][7] Policy Measures - More favorable trade management measures will be implemented, allowing for open arrangements for certain currently prohibited or restricted imports [5][7] - Enhanced passage measures will be established, utilizing eight existing open ports as "first-line" ports for the direct release of eligible imported goods [7] - A high-efficiency regulatory model will be adopted for "zero tariff" goods and those benefiting from relaxed trade management, ensuring smooth implementation of open policies [7] Impact on Trade - Post-customs closure, the flow of goods and people between Hainan and international markets will become more seamless, while connections with the mainland will be more efficient [9] - Most goods, personnel, and transportation means entering or exiting Hainan will continue to be managed under existing regulations, with no additional documentation required for travel to Hainan [9]

Core Viewpoint - The Hainan Free Trade Port will officially start its customs closure operation on December 18, 2025, symbolizing China's commitment to high-level openness and development [1][2]. Group 1: Customs Closure and Policy Implementation - The customs closure will not restrict the island but will enhance openness and promote high-quality development of the Hainan Free Trade Port [1]. - The closure will implement a policy characterized by "one line open, two lines controlled, and free flow within the island," facilitating international trade and movement [2]. - The current management of goods and personnel entering and exiting Hainan will remain unchanged before and after the customs closure [1]. Group 2: Financial and Trade Policies - After the customs closure, the National Development and Reform Commission will gradually establish financial policies that align with openness and development, including cross-border asset management pilot programs [4]. - The customs closure will expand the range of zero-tariff goods and adapt to the shift from manufacturing to service industry openness [4]. - The Ministry of Commerce will support the Hainan Free Trade Port in becoming a significant gateway for China's new era of openness, enhancing the business environment and promoting trade innovation [7]. Group 3: Regulatory and Tax Reforms - The customs closure will optimize the processing and value-added tax exemption policy in four key areas, enhancing the overall tax system [9]. - The range of zero-tariff goods will increase to approximately 6,600 tax items, covering 74% of all goods, a significant increase of nearly 53 percentage points compared to before the closure [9]. - The Ministry of Finance will continue to deepen tax reforms, ensuring sustained policy strength and benefits, including adjustments to the import tax item catalog and the duty-free shopping policy [9][11].