Haikou FTZ was set up with the approval of the State Council on December 22, 2008 , just after the State Council’s approval for establishment of Yangpu Bonded Harbor. Haikou FTZ is another special economic zone of Hainan Province which enjoys the highest level of opening up, the most preferential policies, the most complete functions, and the most convenient procedures that customs supervises. The functions of Haikou FTZ include storage logistics, foreign trade, international procurement, distribution and delivery, international transfer , after-sale service, goods exhibition, export processing, research and development, manufacturing, harbor work, and etc.
Haikou FTZ, sited at Laocheng Economic Development Zone of Hainan Province, is located at the pearl Delta Economic Belt, in the Economic Circle of the North Gulf, and is close to the frontier of ASEAN Free Trade Area. This area lies in the traffic line of the Maritime Economic Corridor of Indian Ocean and Pacific Ocean, and links Taiwan, Hong Kong and Southeast Asia, with tremendous geographical advantages.
With the concept of International Tourism Island, Hainan attracted 47 million domestic and foreign tourists in 2014. In China government’s latest strategic initiative of “One Belt and One Road”, Hainan is the vanguard and main force for the “21st Century Maritime Silk Road”. This will provide Haikou FTZ with a new opportunity for further development.
Below are the major preferential policies of Haikou FTZ enjoyed by HPB:
An exhibitor can display imported goods (e.g., precious diamonds and other expensive jewellery) at our exhibition center located within Haikou FTZ without paying any import-related tax until the goods are sold to the China market. If an exhibitor intends to display imported products at our physical stores outside the bonded area, such display will require an approval from the customs authority of Haikou FTZ, as well as a security deposit to secure the taxes.
Imported goods, if unsold, can be returned to offshore suppliers without going through China’s customs clearance formalities, only subject to filing-for-record requirements.
For domestic suppliers, goods sold by them to us are eligible for export tax refund upon crossing the boundary of Haikou FTZ from domestic market.
Loose diamonds imported by us under general trade can be shipped to Haikou FTZ directly, without making a detour to Shanghai for customs inspection (though the customs clearance documentation should be processed by the customs authority in charge of Shanghai Diamond Exchange (SDE Customs)). The customs authority of Haikou FTZ has been authorized to inspect said imports on behalf of SDE Customs.
Goods traded within Haikou FTZ are exempt from value-added tax and consumption tax.
The following imported goods for our self-use are exempt from taxes: equipment, machinery, warehouse facilities, tools, etc., and reasonable amount of office supply.