Core Insights - Hainan Free Trade Port officially launched its full island closure on December 18, 2025, marking a significant milestone in its development [1] Trade Statistics - Since the closure operation began, as of December 31, 2025, the total value of imported "zero tariff" goods reached 420 million yuan [1] - The value of processed and value-added goods sold domestically without tariffs exceeded 47.23 million yuan [1] - The number of newly registered foreign trade enterprises reached 3,265, representing a year-on-year increase of over 200% [1]

Core Viewpoint - The Hainan Free Trade Port will officially start its customs closure on December 18, 2025, which aims to enhance international connectivity and implement a series of liberalization and facilitation policies [1][7]. Group 1: Customs Closure Definition and Policies - Customs closure refers to establishing Hainan Island as a special customs supervision area, characterized by "one line" being open, "two lines" being managed, and free flow of elements within the island [2]. - The "one line" open policy allows for free and convenient entry and exit between Hainan Free Trade Port and other countries and regions outside China's customs [4]. - The "two lines" managed policy involves precise management of goods entering the mainland from Hainan, with ten designated ports for this purpose [5]. Group 2: Impact on Individuals and Residents - The customs closure will not affect travel for mainland residents to Hainan; most goods and personnel will continue to be managed under current regulations without additional documentation [10]. - The duty-free shopping policy remains in place, allowing residents to purchase imported products duty-free, with an annual limit of 100,000 yuan per person [12]. - Foreign personnel will experience relaxed entry restrictions, with improved temporary entry policies and work visa regulations [14]. Group 3: Opportunities for Enterprises - Enterprises will benefit from new policy incentives, with the scope of zero-tariff imports expanding from 1,900 to approximately 6,600 tax items, covering about 74% of all goods [15]. - The zero-tariff goods and their processed products will be allowed to flow freely among eligible entities without the need to pay import taxes [17]. - The Ministry of Commerce has established a list of prohibited and restricted import goods, facilitating clearer management boundaries for businesses [19]. Group 4: Tax Incentives and Economic Impact - Tax incentives for both enterprises and individuals will be enhanced, with a dual 15% tax rate policy expected to reduce tax burdens significantly [23]. - The cancellation of import license management for 60 old mechanical and electrical product codes will cover about 80% of such products, meeting the needs of Hainan enterprises [21].