Notice on the "Zero Tariff" Policy for Self-Used Production Equipment in Hainan Free Trade Port issued by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation

Hainan Provincial Department of Finance, Haikou Customs, Hainan Provincial Taxation Bureau of the State Administration of Taxation:
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 self-use production equipment in Hainan Free Trade Port is hereby notified as follows:
1. Before the whole island is closed for operation, the production equipment imported for self-use by enterprises registered in Hainan Free Trade Port and with independent legal person status shall be exempted from customs duties, import value-added tax and consumption tax, except for goods that are clearly not exempted from tax by laws, regulations and relevant provisions, and goods prohibited from import by national regulations, as well as the equipment listed in the "Negative List of Self-use Production Equipment of Hainan Free Trade Port with "Zero Tariff"" attached to this notice.
2. The production equipment referred to in this notice refers to the equipment required for production and operation activities such as infrastructure construction, processing and manufacturing, research and development design, testing and maintenance, logistics warehousing, medical services, cultural and sports tourism, etc., including other commodities except household appliances and equipment parts, components, accessories, components and parts in Chapters 84, 85 and 90 of the "Import and Export Tariff of the People's Republic of China".
3. The list of enterprises that meet the conditions specified in Article 1 and the list of enterprises engaged in the industries covered by the annex shall be determined by the competent departments of Hainan Province such as Development and Reform, Industry and Information Technology, together with the Hainan Provincial Department of Finance, Haikou Customs, and the Hainan Provincial Taxation Bureau of the State Administration of Taxation, and dynamically adjusted, and notified to Haikou Customs by letter.
4. The "Negative List of Self-Used Production Equipment for "Zero Tariff" in Hainan Free Trade Port" is detailed in the annex. The content of the list shall be dynamically adjusted by the Ministry of Finance, the General Administration of Customs, the State Administration of Taxation, and relevant departments according to the actual needs and regulatory conditions of Hainan Free Trade Port.
5. The "Catalogue of Major Technical Equipment and Products Not Duty-Free for Import", "Catalogue of Imported Goods Not Duty-Free for Foreign-Invested Projects", and "Catalogue of Imported Goods Not Duty-Free for Domestic Investment Projects" are not applicable to the "zero tariff" policy for self-used production equipment in Hainan Free Trade Port for the time being. Enterprises that meet the conditions specified in this policy can be exempted from customs duties, import value-added tax and consumption tax on the equipment in the above three catalogues.
6. For the convenience of implementation, the Ministry of Finance and the General Administration of Customs will work with relevant departments to separately clarify the scope of household appliances and equipment parts, components, accessories, and components in Article 2.
VII. "Zero tariff" production equipment is limited to enterprises in Hainan Free Trade Port that meet the conditions stipulated by the policy 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 conditions stipulated by the policy, the relevant import taxes should also be paid in accordance with the regulations. For the transfer of "zero tariff" production equipment, domestic value-added tax and consumption tax shall be levied in accordance with the regulations.
VIII. Enterprises that import "zero tariff" production equipment for self-use and voluntarily pay the import value-added tax and consumption tax can apply for it when declaring customs.
IX. 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 production equipment, and strengthen the information interconnection and interoperability of relevant departments in the province, and share information such as enterprises that meet the policy conditions and the supervision of "zero tariff" production equipment.
X. This notice shall be implemented from the date of promulgation.
Appendix: Negative list of "zero tariff" self-use production equipment in Hainan Free Trade Port
Ministry of Finance General Administration of Customs State Administration of Taxation