Customs of south China's Hainan Province have cleared the first batch of goods destined to the mainland on Thursday, following the the island-wide special customs operations in the Hainan Free Trade Port (FTP), the world's largest FTP by area, on Thursday.
China on Thursday launched island-wide special customs operations in the FTP, allowing freer entry of overseas goods, expanded zero-tariff coverage and more business-friendly measures.

Following the rollout, Hainan will adopt a two-tier customs supervision model: freer access at the first line, regulated access at the second line, and free flow within the island.
The first line connects the island with overseas markets, allowing goods to enter with freer access and largely tariff-free treatment.

The second line marks the customs boundary between Hainan and the Chinese mainland, where goods are cleared under standard supervision.
At Hainan's provincial capital Haikou, the first batch of goods manufactured by local processing companies departed from Xinhai Port, a second-line customs port, and entered the Chinese mainland.
The shipment includes products ranging from rubber latex thread to pharmaceuticals, medical equipment, and even snacks, all processed by local firms in Hainan.

Xinhai Port is one of Hainan's ten designated second-line customs ports and one of the most important, as around 80 percent of truck-borne cargo leaving Hainan for the mainland is inspected at the port.
Starting Thursday, Hainan's special customs operations allow industrial firms to enter the mainland tariff-free, provided imported materials undergo at least 30 percent value-added processing.

Under the policy, imported raw materials that are processed in Hainan and achieve a value increase of over 30 percent, can enter the Chinese mainland through the second-line ports without paying import tariffs.
The number of tariff-free items in Hainan will increase from about 1,900 to around 6,600.

Under the new system, cargo leaving Hainan must pass through second-line ports. Some shipments will be subject to customs inspection, covering three categories: zero-tariff cargo; cargo exempt from tariffs due to at least 30 percent value-added processing; and cargo benefiting from relaxed trade restrictions.
The centralized inspection area at Xinhai port is designed to handle up to 1.72 million trucks annually, with a cargo capacity of 44 million tonnes.

Additional personnel and advanced inspection equipment are in place to support the expected rise in shipments from Hainan to the mainland.
Also at Meilan International Airport in Haikou, customs officers have cleared the first batch of cargo exempt from tariffs due to at least 30 percent value-added processing

"Today marks a new starting point for the Hainan FTP to officially enter the new phase of island-wide special customs operations. As a designated facility for the FTP's island-wide special customs operations, Haikou Meilan Airport as a second-line aviation port has just smoothly completed clearance procedures for the first batch of goods enjoying the processing value-added 30 percent tariff exemption policy. These goods have been dispatched to Xi'an and Beijing respectively. Thanks to tangible outcomes such as 'a single electronic document' and 'second-level clearance,' this milestone signifies that Meilan Airport as a second-line port has now entered a normalized and highly efficient phase of special customs operations," said Bai Defu, chief of the Port Coordination and Management Section under Haikou Municipal Bureau of Commerce.

At Nanshan Port in Sanya City, one of the key gateways linking Hainan with the Chinese mainland, the first batch of cargo has been cleared at the second-line customs channel, bound for the mainland.
Customs authorities at Nanshan Port say they are fully prepared to ensure a smooth rollout of the new policy.

"To help enterprises fully benefit from policy incentives, we conducted multiple on-site visits to processing and value-added enterprises in the early stages. We have provided advance guidance on customs clearance policies, offering precise interpretations of second-line supervision requirements and customs facilitation measures. We have established tailored records for each enterprise and guided them through filing and declaration procedures. During second-line customs clearance, we leveraged the customs smart supervision platform to conduct precise analysis of goods, ensuring swift clearance," said Wang Yan, deputy director-general of Sanya Customs House.

The shipment also benefits from Hainan's 30 percent added value policy.
This is a key measure to boost high-end manufacturing and trade liberalization at the Hainan Free Trade Port.
"After processing in our plant, we are selling it to Qingdao and we are saving tariff about 390,000 yuan," said Liu Liyuan, vice president of Hainan Xiangyuan Industrial Company.