(ECNS) -- China's Hainan Free Trade Port (FTP) launched island-wide special customs operations Thursday.

Under the new policy, the entire island is designated as a special customs supervision zone, with "a first line and a controlled second line" to allow free circulation of goods within the island.

Photo taken on Dec. 5, 2025 shows an aerial view of CDF Haikou International Duty Free Center next to Xinhai Port in Hainan Province. (Photo: China News Service/Luo Yunfei)

The "first line" refers to the national border between overseas markets and the free trade port. Overseas markets include foreign countries and regions, as well as Hong Kong, Macao, and Taiwan. The "second line" is for the internal boundary separating the free trade port from the Chinese mainland.

It is important to note that the special customs operations on the island are applied to goods and items, not people. Travel in and out of Hainan remains unchanged, and no additional travel permits are required.

With the launch of the new system on Thursday, goods and items not on a restricted list can move freely into and out of the free trade port through the "first line." Goods not included on the "zero-tariff" negative list are exempt from import tariffs, import value-added tax, and consumption tax when entering the port.

The scope of zero-tariff goods has expanded from about 1,900 tariff lines to roughly 6,600, covering around 74 percent of all tariff lines, which is an increase of nearly 53 percentage points.

Eligibility for zero-tariff benefits has also been broadened. Previously limited to independently registered enterprises and public institutions, within Hainan, the policy now extends to private non-enterprise entities and public institutions legally registered outside the island. Individuals, however, are not eligible for zero-tariff benefits.

Starting Thursday, tourists visiting Hainan can enjoy not only blue seas, clear skies, sunshine, sandy beaches, and tropical scenery, but also enhanced duty-free shopping opportunities, making full use of offshore duty-free purchases.

For those coming to Hainan to work or start a business, the policies of zero tariffs, low tax rates, and a simplified tax system will broaden access to incentives and lower entry barriers for enterprises.

In addition, production factors entering through the "first line" are no longer limited to enterprises' own use. They can circulate freely among eligible zero-tariff entities without import tax payments, further enhancing industrial competitiveness.

(By Gong Weiwei)