Notice on the "Zero Tariff" Policy for Vehicles and Yachts in Hainan Free Trade Port issued by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation

Cai Guan Shui [2020] No. 54

Hainan Provincial Department of Finance, Haikou Customs, State Administration of Taxation Hainan Provincial Taxation Bureau:
In order to implement the "Overall Plan for the Construction of Hainan Free Trade Port", with the approval of the State Council, the "zero tariff" policy for vehicles and yachts in Hainan Free Trade Port is hereby notified as follows:
1. Before the whole island is closed for operation, enterprises registered and registered in Hainan Free Trade Port with independent legal person status and engaged in transportation and tourism (aviation enterprises must use Hainan Free Trade Port as their main operating base) are exempt from import tariffs, import value-added tax and consumption tax on ships, aircraft, vehicles and other operational vehicles and yachts used in transportation and tourism.
The list of enterprises that meet the policy conditions will be determined by the competent departments of Hainan Province such as transportation, culture and tourism, market supervision, maritime affairs and civil aviation central and southern regions, together with Hainan Provincial Department of Finance, Haikou Customs, and State Administration of Taxation Hainan Provincial Taxation Bureau, referring to the relevant industry items of transportation and tourism in the catalog of encouraged industries of Hainan Free Trade Port, and will be adjusted dynamically.
2. Vehicles and yachts that enjoy the "zero tariff" policy will be managed by a positive list. The specific scope is shown in the attachment. The list will be adjusted dynamically by the Ministry of Finance, the General Administration of Customs, the State Administration of Taxation and other relevant departments according to Hainan's actual needs and regulatory conditions.
III. "Zero tariff" vehicles and yachts are limited to enterprises in Hainan Free Trade Port that meet the policy conditions for operation and self-use, and are subject to customs supervision. If the transfer is really necessary due to enterprise bankruptcy or other reasons, the customs consent should be obtained and relevant procedures should be handled before the transfer. Among them, if the transfer is to an entity that does not meet the policy conditions, the relevant import taxes should be paid in accordance with the regulations. For the transfer of "zero tariff" vehicles and yachts, domestic value-added tax and consumption tax shall be levied in accordance with the regulations.
IV. If the vehicles and yachts listed in the import list of enterprises voluntarily pay the import value-added tax and consumption tax, they can apply for it at the time of customs declaration.
V. "Zero tariff" vehicles and yachts should be registered and naturalized in Hainan Free Trade Port, operate in accordance with the relevant regulations of the competent departments such as transportation, civil aviation, and maritime affairs, and be subject to supervision. Aircraft and ships should operate domestic and international routes starting from or stopping at Hainan Free Trade Port. The operating scope of yachts is Hainan Province. Vehicles can be used for passenger and cargo transportation between the mainland and the mainland. At least one of the departure and destination must be in the Hainan Free Trade Port. The cumulative stay time in the mainland shall not exceed 120 days per year. Among them, passenger and cargo vehicles from the Hainan Free Trade Port to the mainland "point-to-point" and "go-and-return" are not subject to the number of days.
Violators of the above provisions shall pay the relevant import taxes in accordance with relevant regulations.
Sixth, the Hainan Provincial Department of Commerce, Transportation, Civil Aviation, Finance, Customs, Taxation and other departments shall formulate the "Management Measures for "Zero Tariff" Vehicles and Yachts in Hainan Free Trade Port", clarifying the procedures for determining the list of enterprises that meet the policy conditions, the registration, naturalization, operation and supervision of "zero tariff" vehicles and yachts after import, the recognition standards for aircraft and ships operating domestic and international routes starting from or stopping at the Hainan Free Trade Port, the applicable circumstances and calculation methods for vehicles staying in the mainland for no more than 120 days per year, the recognition standards, recognition departments and management requirements for "point-to-point" and "go-and-return" transportation services, and the handling methods for violations of regulations.
VII. Relevant departments of Hainan Province should strengthen supervision, prevent and control risks, and promptly investigate and deal with violations through information technology and other means to ensure the smooth operation of the "zero tariff" policy for vehicles and yachts, and strengthen the information interconnection and interoperability of competent departments within the province, and share information such as enterprises that meet policy conditions, "zero tariff" vehicles and yachts.
VIII. This notice shall be implemented from the date of publication.
Appendix: List of "zero tariff" vehicles and yachts in Hainan Free Trade Port

Ministry of Finance General Administration of Customs State Administration of Taxation
December 25, 2020