Learn What Your Company Can Benefit From Hainan Free Trade Port Law
2021-06-17
On June 10, 2021, the law of the People’s Republic of China on Hainan Free Trade Port (Hainan Free Trade Port Law) was passed, with a total of eight chapters and 57 articles, which came into force on the date of promulgation. The law introduced can provide a solid legal guarantee for the future development of the Hainan Free Trade Port and further demonstrate China’s determination to expand its’ opening-up. As separate legislation for a region from the national level is relatively rare in China, this fully shows the particularity and importance of the Hainan Free Trade Port Law.
What are the highlights of the Hainan Free Trade Port Law?
Hainan has greater autonomy in reform and opening up.
Hainan was given a certain degree of legislative autonomy.
Highlight the freedom and convenience of trade and investment.
Tax rebate for mainland goods entering Hainan free trade port.
Strengthen the protection of the ecological environment.
Establish a risk warning, and prevention and control system.
What is the impact of the Hainan Free Trade Port Law on overseas enterprises?
Regarding trade liberalization, goods other than those listed in Hainan’s prohibited and restricted import catalog can enter and leave Hainan freely.
In terms of service trade, cross-border service trade other than the negative list shall be managed according to the principle of consistency between domestic and foreign investment.
In terms of investment, fully implement the minimalist investment approval system, a more simplified negative list of foreign investment, and a more simplified special list of market access.
The tax system ideal for constructing the Hainan Free Trade Port should be carried out following a simple tax system, zero-tariff, and a low tax rate. Take zero-tariff as an example. Except for the list of taxes, all goods entering Hainan are free of taxation.
