The Hainan Free Trade Port Customs Closure — What It Means for Your Business
On 18 December 2025 the whole island became a special customs zone. Here's the first line, the second line, zero tariffs and the 30% rule — and how HCSG helps you use them.
The Hainan customs closure at a glance
Hainan's special customs zone, with two borders
The core idea behind the closure, in plain terms.
One customs area
The whole of Hainan now operates as a special customs zone, distinct from the mainland.
Relaxed, to the world
Between Hainan and overseas — where a wide range of goods enter with zero tariffs.
Controlled, to the mainland
Between Hainan and the Chinese mainland — managed, with rules on what passes tariff-free.
What the Hainan Free Trade Port customs closure changes
Three ways the new zone can change a foreign business's maths.
Zero-tariff sourcing
Importing a wide range of goods into Hainan through the first line free of tariffs.
The 30% rule
Add 30%+ value in Hainan and your goods can enter the mainland market tariff-free.
Re-export & distribution
Using Hainan as a low-friction base to import, process and distribute across borders.
First line vs second line — the part to get straight
Think of it as two different doors. The first line (Hainan–world) is deliberately open, so bringing goods into Hainan is cheap and simple. The second line (Hainan–mainland) is the controlled one: goods cross tariff-free only if they meet the rules, such as the 30% value-added test. Where your goods sit against those two doors decides whether the closure is an opportunity for you — which is exactly what we assess.
What the Hainan customs closure means for foreign businesses
The closure rewards businesses that move or transform goods.
Lower landed cost
If you bring goods into China, sourcing through Hainan's first line can cut tariffs.
Value-add wins
If you process or assemble, the 30% rule can open the mainland market tariff-free.
A base to operate
If you move goods across borders, Hainan can be a low-friction hub.
Whether it helps you is a specific question, not a slogan
The closure is a real opportunity — for the right goods and the right model. Rather than guess from headlines, HCSG assesses your products and your trade flows against the first-line, second-line and 30% rules, and sets up the company and customs position to capture the benefit if it's there.
How HCSG handles this for you
We turn a policy headline into a setup that actually captures the benefit.
Assess your goods
We check your products and flows against the first-line, second-line and 30% rules.
Set up the right entity
If it's worth it, we register the Hainan company that lets you operate in the zone.
Structure the trade flow
We help structure importing, processing and onward sales to fit the customs rules.
Connect the dots
We tie the customs position together with your tax and banking setup.
The outcome: a clear answer on whether Hainan helps your business — and a setup built to use it if it does.
Questions founders ask us
Specific, net-new answers — not a repeat of the guide above.
Does the customs closure mean Hainan left China?+
Are all goods tariff-free coming into Hainan?+
What exactly is the 'second line'?+
What is the 30% added-value rule?+
Do I need a company in Hainan to benefit?+
Does this help service businesses or only goods?+
Is the customs closure permanent?+
How do I know if my goods qualify for the benefits?+
Could Hainan's customs zone work for your goods?
Tell us what you import, make or move and we'll assess whether the closure helps — and set you up to use it.
