Hainan FTP's First Day of Special Customs Operations Smooths Cargo Flows
The Hainan Free Trade Port (FTP) had a successful start on its first day of special customs operations, with zero-tariff goods valued at 360 million yuan (approximately 51 million U.S. dollars) entering through customs supervision. This marks a significant milestone for the island's trade facilitation efforts.
On December 18, 2025, at Yangpu Port in Danzhou, Hainan Province, South China, staff members prepared a vessel carrying petrochemical raw materials, showcasing the practical implementation of the new customs system. According to Haikou Customs, the primary imports through the 'first line' of the customs system included crude oil and aviation equipment, indicating a focus on strategic resources and infrastructure.
The 'second line' policy, which allows products with a 30% or higher added value during processing, facilitated the sale of duty-free goods to China's mainland. On the first day, this policy resulted in sales totaling nearly 14.69 million yuan, with tariff exemptions of 808,000 yuan. The major products included medical devices, pharmaceuticals, and food, highlighting the potential for increased healthcare and consumer goods trade.
China's launch of island-wide special customs operations in the Hainan FTP, the world's largest FTP by area, is a significant development. It aims to enhance the free entry of overseas goods, expand zero-tariff coverage, and introduce more business-friendly measures. The 'first line' represents Hainan's connection with overseas markets, while the 'second line' denotes the customs boundary between the island and China's mainland, maintaining standard customs controls for the mainland.
This two-tiered special customs system is described as 'freer access at the first line,' emphasizing the facilitation of trade between Hainan and areas outside China's customs border, and 'regulated access at the second line,' ensuring standard customs controls for the mainland. This approach aims to balance trade liberalization with regulatory oversight, potentially sparking discussions on the balance between trade openness and control.
