Feasibility modelling, filing support, and annual review for the route by which goods processed in Hainan can enter the mainland free of import duty.
What this covers
- A value-added model built on the actual bill of materials, before a site or a supply chain is committed
- A check that the entity and the products fall within the route's conditions as currently published
- The customs filing for the route coordinated with the declaration enterprise
- A calculation file kept for each shipment, so the rate can be reproduced on request
- Evidence for Hainan-origin inputs where they are counted towards the added value
- An annual review of the rate against the year's actual materials and prices
Our services
A calculation, not an impressionThe rate is arithmetic on the entity's actual bill of materials and prices.
Goods produced by an encouraged-industry enterprise in Hainan can enter the mainland across the second line free of import duty where they contain no imported materials, or where the processing in Hainan has added at least 30% of value. Import value-added tax and consumption tax remain payable in the ordinary way, so the route reduces duty, not every tax.
Duty, not every taxImport value-added tax and consumption tax remain payable on goods entering the mainland.
The calculation is arithmetic on the entity's own numbers: the domestic sale price less the imported and the domestically purchased materials, divided by the total of those materials. Whether an operation reaches 30% is therefore a question about the real production process and the real prices, and it is worth modelling before the site and the suppliers are fixed rather than after.
Modelled before the site is fixedWhether an operation can reach the threshold shapes where it should be built and what it should buy.
Closure changed the position in ways that matter for planning, and the published rules are the reference for each — what inputs count, how related entities' stages are treated, and which conditions have been removed. We apply them as currently published and do not rely on a summary.
Reviewed every yearPrices and materials move, so the rate is recalculated against what actually happened.
The exemption is not claimed once. Prices and materials move, so the rate is recalculated against what actually happened, and the file that shows how it was reached is kept for the entity. We run the model, the filing coordination, and the annual review; the declarations are filed by a registered customs declaration enterprise.
Why choose HainanInc?
Rate modelled on the real bill of materials before commitments are made
Duty and the taxes that remain payable stated separately
Calculation file and annual review kept for every shipment
Related insights
Processing Value-Added After Island-Wide Closure: What Changed and What Still Has to Be Proved
The route that lets goods processed in Hainan enter the mainland free of import duty became useful to more businesses at closure. It did not become easier to claim without evidence.
Zero-Tariff Goods Are Free Until They Leave: Costing the Second Line
Since closure on 18 December 2025, roughly 74% of tariff lines enter Hainan duty-free. The number that decides whether that helps a given business is not 74% — it is 30%.
After Closure, Hainan Is an Expansion Base for Businesses That Change Things
Island-wide closure reorganised what Hainan is good for. It rewards transformation on the island and is largely neutral towards businesses that simply pass through it.
All Customs and Zero-Tariff Compliance services
- Zero-Tariff Eligibility and Account Setup
- Processing Value-Added Duty Exemption
- Zero-Tariff Equipment, Vehicles and Yachts
- Second-Line Movement and Mainland Sales
Our services
Our practice areas cover the whole life of a presence in Hainan — from the market-entry assessment made before anything is filed, through formation, tax incentives, customs and zero-tariff compliance, and annual compliance, to the work permits, outbound investment, and deregistration around it. One engagement model means a single accountable team across all of them.
