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]