Mapping and costing the flows of goods and products from Hainan into the mainland across the second line, and the declarations that go with them.
What this covers
- A map of every flow of goods and products the entity expects to send across the second line
- The tax treatment of each flow — zero-tariff goods, processed products, and goods that never qualified
- Classification and valuation reviewed before the first declaration
- The declaration process agreed with the declaration enterprise, so the entity knows what is filed and when
- The effect on pricing for mainland customers worked out before a price list is issued
- Records kept so each movement can be traced to its inputs
Our services
A deferral, not a forgivenessZero-tariff goods that cross the second line carry the tax the entry relief set aside.
The relief for goods entering Hainan is settled again when they leave it for the rest of China. Zero-tariff goods that cross the second line carry import duty, import value-added tax, and consumption tax calculated on the imported materials; the relief was a deferral for them, not a forgiveness.
Three flows, three costsZero-tariff goods, processed products, and non-qualifying goods are taxed differently and priced separately.
Processed products are the exception worth modelling. Where Hainan adds at least 30% of value, import duty is exempt on entry into the mainland, while import value-added tax and consumption tax remain payable. A business selling into the mainland therefore has three kinds of flow to cost, and they should not be priced as one.
A shorter form, the same amountClassification and valuation still decide what is owed.
Closure also simplified the declaration itself, but a shorter form does not change what is owed. Classification and valuation still decide the amount, and they are worth settling before the first shipment.
Prices that include the second lineThe cost is in the price list before the first mainland sale.
We map the flows, cost each, and agree the declaration process with the declaration enterprise that files, then keep the records that tie each movement to its inputs. The result is a price list and a cash-flow plan that already contain the second-line cost.
Why choose HainanInc?
Every flow across the second line mapped and costed
Declaration process agreed with the enterprise that files
Mainland pricing set with the second-line cost already in 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.
