Notice of the General Office of the People's Government of Hainan Province on Issuing the "Administrative Measures for the Duty-Free Transport of Aircraft and Vessels after Temporary Exit for Repairs into the Hainan Free Trade Port"

Article 1  In order to implement the "Several Measures on Piloting International High Standards in Free Trade Pilot Zones and Free Trade Ports with Conditions" (Guofa [2023] No. 9) issued by the State Council, and to manage the customs duty exemption of aircraft and ships (including related parts) temporarily leaving the country for repair and then returning to Hainan Free Trade Port (hereinafter referred to as the duty-free return of goods after temporary leaving the country for repair), this Measures are formulated in accordance with the "Announcement on Piloting Import Tax Policies and Measures in Free Trade Pilot Zones and Free Trade Ports with Conditions" (Announcement No. 75 of 2023 of the Ministry of Finance, the Ministry of Ecology and Environment, the Ministry of Commerce, the General Administration of Customs, and the State Administration of Taxation, hereinafter referred to as the "Announcement").
Article 2  The competent departments and regulatory departments of the industry, such as the Provincial Department of Transportation, the Provincial Department of Commerce, the Provincial Department of Finance, the Provincial Administration for Market Regulation, the Haikou Customs, the Provincial Taxation Bureau, the Hainan Maritime Safety Administration, the Civil Aviation Central and Southern Regional Administration and its dispatched agencies in Hainan, shall share information, refine the process and jointly manage the duty-free return of goods after temporary leaving the country for repair.
Article 3 Aircraft and ships (including related parts) operated by enterprises registered with independent legal person status in Hainan Free Trade Port can enjoy duty-free return to Hainan after temporary departure for repair if the following conditions are met:
(i) The aviation enterprise to which the aircraft (including related parts) belongs has the operation certificate and operation specifications issued by the civil aviation administration department, and its main operating base is in Hainan Free Trade Port.
(ii) The shipping enterprise to which the self-owned or bareboat chartered ships (including related parts) registered in Hainan Free Trade Port belongs has valid water transport business qualifications or has fulfilled the filing procedures in accordance with regulations.
Article 4 Intended enterprises that intend to apply for duty-free return to Hainan after temporary departure for repair (hereinafter referred to as preferential qualifications) shall take the initiative to make a commitment to strictly abide by the provisions of the Announcement and these Measures when applying, and to accept the legal handling of relevant departments after violations.
The intended enterprises applying for preferential treatment shall establish an information management system that meets the requirements of customs supervision, set up a cargo maintenance and use ledger, realize the full tracking of the information of the goods returned to Hainan after temporary repairs abroad, and ensure that the data is true, accurate and valid, and manage and use the goods in accordance with the requirements of policies and measures and relevant customs regulations and accept verification. Enterprises with preferential treatment qualifications (hereinafter referred to as preferential enterprises) shall record the use and form a corresponding relationship.
Article 5 The intended enterprises applying for preferential treatment qualifications shall apply for qualification certification through the Hainan International Trade "Single Window". Aviation enterprises shall provide relevant materials such as business licenses, operating certificates, operating specifications, cargo maintenance and use ledgers, and established information management systems. Shipping enterprises shall provide business licenses, water transport business licenses or filing procedures, ship ownership certificates or bareboat charter registration certificates, cargo maintenance and use ledgers, established information management systems, certificates and documents for preventing and controlling marine pollution by ships, and other relevant materials.
The Provincial Department of Transportation, Hainan Maritime Safety Administration, Civil Aviation Central and Southern Regional Administration and its dispatched agencies in Hainan, and the Provincial Market Supervision Administration shall, together with the Provincial Department of Finance, the Provincial Department of Ecology and Environment, Haikou Customs, and the Provincial Taxation Bureau, review the application materials of enterprises and determine the list of preferential enterprises in accordance with their duties. Among them, the Civil Aviation Central and Southern Regional Administration and its dispatched agencies in Hainan are responsible for reviewing the operating certificates and operating specifications of the aviation enterprises applied for; the Provincial Department of Transportation is responsible for reviewing the water transport business license or filing procedures of the shipping enterprises applied for; the Hainan Maritime Safety Administration is responsible for reviewing the ship ownership certificate or bareboat charter registration certificate of the shipping enterprises applied for.
The original review department shall dynamically adjust the list of preferential enterprises according to the results of the preferential qualification review. The Hainan Maritime Safety Administration is responsible for timely notifying the list of ships that are determined to be eligible for preferential treatment or pushing it to the Provincial Department of Transportation in real time through the Hainan International Trade "Single Window". The aviation enterprises and shipping enterprises (including ships) that are determined to be eligible for preferential treatment shall be notified by the Civil Aviation Central and Southern Regional Administration and its dispatched agencies in Hainan, and the Provincial Department of Transportation or pushed to the Provincial Department of Finance, Haikou Customs, Provincial Taxation Bureau and other departments in real time through the Hainan International Trade "Single Window". Haikou Customs handles import duty-free customs clearance procedures based on the list.
If the preferential enterprises have changes such as division, merger, name change, change of domicile, change of legal representative, equity transfer, etc. within the period of customs supervision of goods, they should supplement the declaration of change information through Hainan International Trade "Single Window" within 30 days from the date of change registration, and the original review department shall review it. The relevant review results or adjustment of the enterprise list shall be notified to the Provincial Department of Finance, Haikou Customs, and Provincial Taxation Bureau in real time through Hainan International Trade "Single Window". For those that do not meet the preferential qualification conditions after review, the original review department shall inform the enterprise to stop enjoying preferential qualifications.
Article 6  Operating aircraft (including related parts) refers to the aircraft and parts used by the preferential enterprises in the operation specifications issued by the civil aviation management department. Aircraft (including related parts) that enjoy temporary outbound repairs and return to Hainan duty-free are limited to preferential enterprises engaged in air transport operations before the customs supervision is lifted, and can be wet leased (not dry leased) to other units; if they are returned to the lessor by way of return, etc., they must be approved by the customs and the import tariffs must be paid in accordance with regulations.
The operating ships (including related parts) refer to the ships (including related parts) registered in the port of registry of Hainan Free Trade Port and operated by enterprises registered in Hainan Free Trade Port with independent legal person status. Before the customs supervision is lifted, the ships (including related parts) that enjoy the duty-free return to Hainan after temporary departure for repair are limited to the preferential enterprises for operation, and can be leased by voyage or time (not bareboat lease) to other units; if they are returned to the lessor by way of return lease, etc., they shall be approved by the customs and the import tariffs shall be paid in accordance with the regulations.
Article 7  Goods that enjoy the duty-free return to Hainan after temporary departure for repair shall be subject to the supervision of Haikou Customs in accordance with the relevant customs regulations.
The Provincial Department of Transportation, Hainan Maritime Safety Administration, Civil Aviation Central and Southern Regional Administration and its dispatched agencies in Hainan and other departments shall supervise the operation and self-use of goods that enjoy the duty-free return to Hainan after temporary departure for repair in accordance with relevant industry laws and regulations; the Provincial Market Supervision Administration shall supervise the preferential enterprises in accordance with relevant industry laws and regulations; the Provincial Taxation Bureau shall be responsible for tax management in accordance with relevant industry laws and regulations.
Article 8  The Provincial Department of Transportation is responsible for strengthening overall coordination and information sharing, unifying and coordinating relevant departments in the province, and promoting the realization of full-chain management.
All relevant competent departments should assist in providing relevant information required for supervision according to the needs of Haikou Customs. Among them, the Civil Aviation Central and Southern Regional Administration and its dispatched agencies in Hainan, the Provincial Department of Transportation, the Hainan Maritime Safety Administration and other competent departments assist in providing information on the use of goods; the Provincial Market Supervision Bureau assists in providing information on changes such as the division, merger, name change, change of domicile, change of legal representative, equity transfer, and cancellation of preferential enterprises; the Provincial Taxation Bureau assists in providing tax information of preferential enterprises.
Article 9  The competent departments and regulatory departments of the industry shall establish a joint punishment mechanism in accordance with laws and regulations, and realize the sharing of customs supervision information, goods transfer information, goods use information, preferential enterprise change information, tax information and other information through the Hainan International Trade "Single Window", strengthen joint prevention and control, and crack down on illegal and irregular behaviors in a timely and effective manner.
Article 10  For aviation enterprises that violate the provisions of Article 4 and Article 6 of these Measures, or have other non-cooperative supervision situations such as fraud, concealment of information, and failure to promptly supplement and report change information after relevant changes occur, the Civil Aviation Central and Southern Regional Administration and its dispatched agencies in Hainan, together with the Provincial Department of Finance, the Provincial Department of Ecology and Environment, Haikou Customs, and the Provincial Taxation Bureau, shall identify and rectify within a time limit in accordance with their duties. If rectification is not made within the time limit, the enterprise’s preferential qualification shall be suspended from the date of announcement of the identification results, and Haikou Customs and the Provincial Taxation Bureau shall deal with it in accordance with laws and regulations.
If a shipping enterprise has the above-mentioned violations, the Provincial Department of Transportation, Hainan Maritime Safety Administration, together with the Provincial Department of Finance, the Provincial Department of Ecology and Environment, Haikou Customs, and the Provincial Taxation Bureau shall identify and rectify within a time limit in accordance with their duties. If rectification is not made within the time limit, the enterprise’s preferential qualification shall be suspended from the date of announcement of the identification results, and Haikou Customs and the Provincial Taxation Bureau shall deal with it in accordance with laws and regulations.
For smuggling activities that evade customs supervision, evade taxes payable, evade the prohibition or restriction of the state on entry and exit, and acts that violate customs supervision regulations, Haikou Customs shall punish them in accordance with the provisions of the Customs Law of the People's Republic of China, the Regulations on the Implementation of Customs Administrative Penalties of the People's Republic of China and other laws and regulations. If a crime is constituted, criminal liability shall be pursued in accordance with the law.
If the preferential enterprises transfer or use the goods that are temporarily returned to Hainan after repairs and tax exemption, and fail to pay domestic taxes in accordance with the regulations, the provincial taxation bureau shall handle it in accordance with relevant laws and regulations.
Article 11  This measure shall be interpreted by the Provincial Department of Transportation in conjunction with the Provincial Market Supervision Administration, Hainan Maritime Safety Administration, Civil Aviation Central and Southern Regional Administration and its dispatched agencies in Hainan, the Provincial Department of Finance, the Provincial Department of Ecology and Environment, Haikou Customs, and the Provincial Taxation Bureau.
Article 12  This measure shall take effect from the date of promulgation.
Regarding imported goods that have been levied tariffs by enterprises that meet the policy conditions before the promulgation of this measure, it shall be implemented in accordance with the relevant provisions of the Announcement.