Trade Liberalization and Facilitation 

Trade Liberalization and facilitation are a common feature of international advanced free trade ports, hence an important goal for the development of Hainan Free Trade Port. On Apr.19, the Ministry of Commerce among some 20 departments released the Circular on Several Measures to Promote Trade Liberalization and Facilitation of Hainan Free Trade Port, which introduced a series of trade liberalization and facilitation policies and measures in terms of trade in goods and trade in services, including: relaxation of trade qualification and quota management of such commodities of crude oil, refined oil, sugar in accordance with requirements of free flow through the first front and efficient control at second front, meanwhile, both access and operation qualification is allowed in the area of trade in service, and technology import and export could be operated without requirement for registration as a foreign trade operator, etc.  

Circular on Several Measures to Promote Trade Liberalization and Facilitation of 

Hainan Free Trade Port

I.Trade in goods

3. The permission of bonded refueling for ships on international voyages in Hainan Province shall be delegated to the Hainan Provincial People’s Government, and approved bonded refueling  enterprises can provide bonded oil refueling service to international voyage ships in Hainan Province and domestic ships that use Yangpu Port as a transit port for domestic and foreign trade. 

4. In areas where the “first-front” is opened up and the “second-front” is controlled, the automatic import license management system shall be removed in general terms upon entry into the “first-front”, and import shall be subject to management by Hainan Free Trade Port itself under the premise of due statistical supervision. Entry into the “second-front” shall be managed according to current import regulations. 

5. In areas where the “first-front” is opened up and the “second-front” is controlled, the import license management system for machinery and electronic products shall be removed upon entry into the “first-front”, and import shall be subject to management by Hainan Free Trade Port itself under the premise of safety and environmental friendliness. Entry into the “second-front” shall be managed according to current import regulations.  

6. The Hainan Free Trade Port will be included in the permitted regions for export business of second-hand vehicles. 

7. Support enterprises in the Hainan Free Trade Port to carry out new types of offshore international trade, support the establishment and development of global and regional trade networks, and create a global or regional new type of offshore international trade center. 

8. Support the Hainan Free Trade Port to implement pilot programs on qualification examination and approval of product, management and service business certification agencies related to trade in goods. For certification agencies registered in the Hainan Free Trade Port, those who apply for certification business regarding certification items promoted by the state shall be entitled to optimized examination and approval service; for those who apply for certification business regarding other fields, the notification and commitment system shall apply. 

9. Improve the quality and safety risk warning and rapid response supervision capabilities of import and export commodities, improve the supervision of key sensitive import and export commodities, establish a collection network for product injury information from hospitals, markets, emergency response, fire protection, consumer complaints, etc.. Early warning and rapid disposal shall apply for import commodities with high risks. Customs authority adopts appropriate conformity assessment methods for commodities entering and exiting Hainan Free Trade Port based on the risk level to improve the convenience of statutory inspection. 

10. Strengthen the innovation of customs supervision model, establish a   cross-departmental plant isolation nursery supervision and assessment mutual recognition mechanism, give priority to the quarantine access and epidemic supervision of animal and plant germplasm resources in the transfer base, and implement the hierarchical approval model that involves approval by General Administration of Customs and authorized approval by Haikou Customs. 

11. Support Hainan Free Trade Port to participate in the formulation of recommended national standards with an industry-leading role, and support Hainan Free Trade Port to formulate local standards that meet local natural conditions, customs, and group standards that meet the needs of the market and innovation drive. 

12. Establish a work station to deal with trade frictions in the Hainan Free Trade Port, and carry out the construction of an industrial safety early warning system that matches the open market environment. 

13. In accordance with practical needs of the Hainan Free Trade Port, establish a trade adjustment assistance mechanism that conforms with the free trade port’s open economy to promote industrial restructuring and competitiveness buildup in the Hainan Free Trade Port. 

II. Trade in service

14. Allow foreign institutions to independently hold foreign-related economic and technological  exhibitions in the Hainan Free Trade Port that carry names other than with "China", "National" and "State". For foreign-related economic and technological exhibitions independently organized or co-sponsored by foreign institutions, the Hainan Provincial Department of Commerce shall be entrusted the administrative licensing of the exhibitions and undertake effective supervision. 

15. Technology import and export activities in the Hainan Free Trade Port does not entail registration as foreign trade operators, hence the qualification scope of technology import and export operators is expanded. 

16. Support Hainan Free Trade Port in establishing an international system of cultural and artwork appraisal, evaluation, arbitration rules and standards. Support Hainan Free Trade Port in building itself into an international auction center for cultural and art products, explore the cancellation of review and approval when establishing an auction enterprise, and build and improve the supervision system during and after the business establishment.  The auction enterprises in  the Hainan Free Trade Port  undertake auction  business of cultural relics according to relevant laws and regulations. 

17. Explore to apply the supervision mode that allows franchisors who are registered in Hainan Free Trade Port and only engage in commercial franchising activities in Hainan Free Trade Port to go into business without commercial franchise filing, and strengthen supervision during and after business activities. 

18. Promote the pilot program on the innovative development of trade in service in the Hainan Free Trade Port, focusing on promoting the reform, opening up, and facilitation measures in the management system, promotion mechanism, development model, and supervision system of service trade.

19. Support Hainan Free Trade Port to actively develop digital trade. Support the construction of a national export base for digital service at Hainan Ecological Software Park and gather innovation resources and enterprises. 

20. Establish a rapid response channel for department-province cooperation on security management of technology import and export to assist the Hainan Free Trade Port in scientific management and control of the import and export of prohibited and restricted technologies to prevent security risks. 

21. Take the lead in standardizing domestic regulations that affect the liberalization and facilitation of trade in service in key areas such as the modern service industry and tourism of the Hainan Free Trade Port. 

22. Support the Hainan Free Trade Port to build the regional international convention and exhibition center. Perform due reponsibilities in organizing the China International Consumer Products Expo and support the Hainan Free Trade Port to hold exhibitions with international influence. 

23. Support the Hainan Free Trade Port to build the national cultural export base and to folster innovation on and develop foreign trade in culture. 

24. Establish the national foreign cultural trade base in the Hainan Free Trade Port to promote the development of key cultural service trade such as animation games, e-sports, film and television production, tourism performing arts, creative design, and copyright transactions. 

25. Carry out investment promotion activities to promote key national cultural export enterprises and key projects with development potential to land in Hainan Free Trade Port. 

26. Encourage Hainan Free Trade Port to innovate the international cooperation model of trade in service. Support the establishment of an international cooperation mechanism for trade in service between Hainan provincial and municipal governments and their foreign counterparts, and support the Hainan Free Trade Port in organizing various international cooperation activities in trade in service. 

27. Promote the publicity of Hainan Free Trade Port's key areas of service trade (such as travelling, transportation, telecommunications, computer and information services, intellectual property, etc.) and related key projects to countries that have signed the memorandum of understanding on service trade cooperation in an appropriate manner; actively support the development needs of Hainan Free Trade Port's service trade during negotiations with foreign parties on signing new international cooperation agreements in service trade. 

28. Further improve the statistical monitoring system of international trade in service, and strengthen the monitoring and analysis of Hainan's cross-border trade in services. 

April 19, 2021