Does the customs closure mean Hainan left China?

No. Hainan is a special customs zone within China. It has a relaxed border to the outside world and a controlled border to the Chinese mainland, it hasn't left the country.

Are all goods tariff-free coming into Hainan?

Many categories enter through the first line tariff-free, but not everything, it depends on the goods and the current rules. We check whether your specific products qualify.

What exactly is the 'second line'?

It's the controlled customs border between Hainan and the Chinese mainland. Goods cross it tariff-free only if they meet the rules, such as the 30% value-added test.

What is the 30% added-value rule?

Broadly, goods that gain at least 30% of their value through processing in Hainan can move on to the mainland free of import tariffs. Whether your processing qualifies is something we assess.

Do I need a company in Hainan to benefit?

Generally yes, a registered presence is how you import, process or trade through the zone. Setting up that company is something we handle (see our WFOE guide).

Does this help service businesses or only goods?

The customs changes are mainly about goods. Service and knowledge businesses tend to benefit more from the FTP's tax and talent policies, see our 15% corporate tax guide.

Is the customs closure permanent?

It's a core part of the Hainan Free Trade Port's long-term build-out to 2035, and the framework is being expanded rather than wound back. We help you plan around it with that horizon in mind.

How do I know if my goods qualify for the benefits?

It depends on the product, where value is added, and your trade flow. We assess your specific goods and model against the rules before you commit to anything.

Hainan Free Trade Port Customs Closure (December 2025): What It Means for Your Business

The Hainan customs closure at a glance

2customs lines

0 %tariffs, many imports

30 %added-value rule

Dec 2025launched

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.

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.

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.

Specific, net-new answers, not a repeat of the guide above.

The Hainan Free Trade Port Customs Closure, What It Means for Your Business