Hainan FTP issues 'negative list' for zero-tariff self-use equipment

The Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued a "zero tariff" policy notice on March 4 for self-use production equipment in the Hainan Free Trade Port.

The policy will be implemented from the promulgation date to the day when Hainan FTP initiates independent customs operations.

According to the notice, no tariff, import value-added tax or consumption tax will be levied for production equipment imported by enterprises registered in the Hainan FTP with an independent legal person, except equipment not allowed to be imported or be exempted from taxes and equipment not listed on the negative list.

The negative list covers 11 items spanning equipment in areas of coal mining and washing, ferrous metal mining and processing, non-ferrous metal mining and processing, leather tanning, fur tanning and processing.

Hainan province will ensure the smooth implementation of the policy through strengthened supervision, risk prevention and by dealing with any violations. The policy is expected to further reduce the tax burden of enterprises in the Hainan FTP and attract more high-quality enterprises.