Circular of the Ministry of Commerce and Other 19 Government Agencies on Measures for Promoting Trade Liberalization and Facilitation in Hainan Free Trade Port

People's Government of Hainan Province:

The construction of a free trade port in Hainan is a major reform and opening-up initiative personally planned, deployed and promoted by General Secretary Xi Jinping. The Central Committee of the Communist Party of China (CPC) has made this strategic decision with an eye on the domestic and international situation, and with in-depth research, overall consideration and scientific planning. The relevant matters are hereby notified as follows upon approval by the State Council in order to thoroughly implement the spirit of General Secretary Xi Jinping's important instructions on the construction of Hainan Free Trade Port, put in place the requirements of the Overall Plan for the Construction of Hainan Free Trade Port, expedite trade liberalization and facilitation in Hainan Free Trade Port, and achieve the development objectives by steps and phases by 2025 with high quality and standards:

I. Trade in Goods

1. The import or export of crude oil and refined oil through the "first line" at Yangpu Bonded Port Area will be first implemented on a pilot basis, and shall not be subject to the enterprise qualification and quantity management, but shall be subject to import or export provisions at the "second line" between Hainan and the mainland. (Responsible authorities: led by the Ministry of Commerce, with participation by the National Development and Reform Commission, the General Administration of Customs, the National Energy Administration, and Hainan Province)

2. The import of sugar through the "first line" at Yangpu Bonded Port Area will be first implemented on a pilot basis, and shall not be subject to the tariff quota, but shall be subject to current provisions at the "second line". The above goods entering Hainan Free Trade Port from abroad shall be reported to the Ministry of Commerce by the Department of Commerce of Hainan Province for the record by the end of the year. (Responsible authorities: led by the Ministry of Commerce, with participation by the National Development and Reform Commission, the General Administration of Customs, and Hainan Province)

3. The power to license bonded refueling for internationally navigating ships within Hainan Province shall be delegated to the People's Government of Hainan Province. Approved bonded fuel refueling enterprises may refuel bonded fuel for internationally navigating ships and domestic ships with both domestic and foreign trade goods on board which transit at Yangpu Port of China in Hainan Province. (Responsible authorities: led by the Ministry of Commerce, with participation by the Ministry of Finance, the Ministry of Transport, and the General Administration of Customs)

4. In areas where the policy of free flow through the "first line" and control at the "second line" are implemented, automatic import license management shall be cancelled for imports at the "first line" in principle, and imports shall be managed by Hainan Free Trade Port on the premise of proper statistical supervision; imports shall be subject to current import provisions at the "second line". (Responsible authorities: led by the Ministry of Commerce, with participation by the General Administration of Customs)

5. In areas where the policy of free flow through the "first line" and control at the "second line" is implemented, import license management shall be cancelled for mechanical and electrical products at the "first line", and the mechanical and electrical products shall be managed by Hainan Free Trade Port on the premise of safety and environmental protection; the mechanical and electrical products shall be subject to current import provisions at the "second line". (Responsible authorities: led by the Ministry of Commerce, with participation by the General Administration of Customs)

6. Hainan Free Trade Port shall be included in the regional scope for the export of used vehicles. (Responsible authority: The Ministry of Commerce)

7. Enterprises in Hainan Free Trade Port are supported in carrying out new offshore international trade and establishing and developing global and regional trade networks, to build Hainan Free Trade Port into a global or regional center for new offshore international trade. (Responsible authorities: led by the Ministry of Commerce, with participation by the State Administration of Foreign Exchange)

8. Hainan Free Trade Port is supported in carrying out the pilot program for examination and approval of qualifications of certification agencies for products, management, and services related to trade in goods. For a certification agency registered in Hainan Free Trade Port, if it applies for engaging in the certification business for certification projects uniformly promoted by the State, the examination and approval service shall be optimized; if it applies for the certification business in other sectors, the notification and commitment system shall be implemented. (Responsible authority: the State Administration for Market Regulation)

9. The relevant authorities shall improve the warning and rapid response ability in supervising and managing the quality, safety, and risk of imports and exports, perfect the supervision over major sensitive imports and exports, establish a network for collecting product harm information involving hospitals, markets, emergence response, fire protection, consumer complaints, and others, and give early warnings for and rapidly dispose of imports with relatively high risks. The customs shall take appropriate conformity assessment methods to assess imports and exports at Hainan Free Trade Port according to the risk level, to facilitate statutory inspection. (Responsible authorities: the Ministry of Commerce, the National Health Commission, the Ministry of Emergency Management, the General Administration of Customs, and the State Administration for Market Regulation are responsible as per the division of duties)

10. The relevant authorities shall strengthen innovation in the customs supervision mode, establish an inter-departmental mutual recognition mechanism for the supervision and assessment of plant nurseries, give priority to the quarantine access to and epidemic supervision of animal and plant germplasm resources in transit bases, and implement the two-level examination and approval mode featuring approval by the General Administration of Customs and authorization by the Haikou Customs District. (Responsible authorities: led by the General Administration of Customs, with participation by the Ministry of Agriculture and Rural Affairs and the National Forestry and Grassland Administration)

11. Hainan Free Trade Port is supported in participating in the formulation of recommended national standards with industry leading effect as well as local standards that meet local natural conditions and customs and group standards that meet market and innovation requirements. (Responsible authority: the State Administration for Market Regulation)

12. A trade friction workstation shall be established in Hainan Free Trade Port to build an industry safety early warning system in line with the open market environment. (Responsible authority: the Ministry of Commerce)

13. In combination with the actual needs of Hainan Free Trade Port, a trade adjustment aid mechanism compatible with the open economy of free trade ports shall be established to improve industry adjustment and competitiveness in Hainan Free Trade Port. (Responsible authorities: led by the Ministry of Commerce, with participation by the Ministry of Finance)

II. Trade in Services

14. Foreign institutions are allowed to independently hold foreign-related economic and technological exhibitions that use no word like "China", “Chinese”, "National", or “State” in the title in Hainan Free Trade Port. The Department of Commerce of Hainan Province is entrusted to implement effective supervision over administrative licensing for foreign-related economic and technological exhibitions independently or jointly held by foreign institutions. (Responsible authorities: led by the Ministry of Commerce, with participation by Hainan Province)

15. The record-filing or registration of foreign trader is not required in the operating activities related to technology import or export in Hainan Free Trade Port, and the scope of qualifications of technology import or export operators shall be expanded. (Responsible authority: The Ministry of Commerce)

16. Hainan Free Trade Port is supported in establishing appraisal, evaluation, and arbitration rules and standards for international cultural artworks. It is also supported in building itself into an international cultural artworks auction center, exploring the cancellation of the approval and licensing for the establishment of auction enterprises, and establishing and improving the pre-event and post-event supervisory system. Auction enterprises in Hainan Free Trade Port carrying out in the auction of cultural relics shall be governed by the relevant laws and regulations. (Responsible authorities: the Ministry of Commerce, the Ministry of Culture and Tourism, and the Ministry of Justice are responsible as per the division of duties)

17. Explore the cancellation of record-filing of franchisees incorporated in Hainan Free Trade Port before engaging in commercial franchise activities only in Hainan Free Trade Port and strengthen pre-event and post-event supervision instead. (Responsible authorities: led by the Ministry of Commerce, with participation by the Ministry of Justice and the State Administration for Market Regulation)

18. A pilot program for the innovative development of trade in services shall be promoted in Hainan Free Trade Port, with focus on the reform, opening-up, and facilitation of the management system, the promotion mechanism, the development mode, the supervisory system, and other aspects of trade in services. (Responsible authority: The Ministry of Commerce)

19. Hainan Free Trade Port is supported in actively developing digital trade. Support the construction of Hainan Resort Software Community as a national digital service export base to attract innovative resources and enterprises. (Responsible authorities: led by the Ministry of Commerce and the Office of the Central Cyberspace Affairs Commission, with participation by the Ministry of Industry and Information Technology)

20. The ministry-province cooperation fast-response channel for technology import and export safety management shall be established to assist Hainan Free Trade Port in scientific management and control of the import and export of prohibited and restricted technologies and to prevent the safety risks. (Responsible authority: the Ministry of Commerce)

21. In key sectors such as the modern service industry and tourism in Hainan Free Trade Port, domestic regulations affecting the liberalization and facilitation of trade in services shall be standardized first. (Responsible authorities: led by the Ministry of Commerce, with participation by the State Administration for Market Regulation, competent departments of service industries, and Hainan Province)

22. Hainan Free Trade Port is supported in building itself into a regional center for international conferences and exhibitions. Ensure the success of the China International Consumer Products Expo and support Hainan to create exhibitions with international influence. (Responsible authorities: Hainan Province and the Ministry of Commerce)

23. Hainan Free Trade Port is supported in building itself into a national cultural export base to develop foreign cultural trade in an innovative manner. (Responsible authorities: led by the Ministry of Commerce, with participation by the Propaganda Department of the Central Committee of the Communist Party of China, the Ministry of Culture and Tourism, and the National Radio and Television Administration)

24. Hainan Free Trade Port shall develop itself into a national foreign cultural trade base to promote the development of trade in major cultural services such as animation games, e-sports, film and television production, tourism performances, creative design, and copyright trading. (Responsible authorities: led by the Ministry of Culture and Tourism, with participation by the Propaganda Department of the Central Committee of the Communist Party of China, the Ministry of Commerce, and the National Radio and Television Administration)

25. Investment promotion activities shall be launched to promote promising and major national enterprises and projects related to cultural export to settle in Hainan Free Trade Port. (Responsible authorities: the Ministry of Commerce, the Propaganda Department of the Central Committee of the Communist Party of China, the Ministry of Culture and Tourism, and the National Radio and Television Administration are responsible as per the division of duties)

26. Hainan Free Trade Port is encouraged to innovate the international cooperation mode of trade in services. Hainan authorities at provincial and municipal levels are supported in establishing an international inter-government cooperation mechanism for trade in services with foreign countries, and Hainan Free Trade Port is supported in hold international cooperation activities for trade in services. (Responsible authority: The Ministry of Commerce)

27. Major sectors (such as travel, transportation, telecommunications, computer and information services, and intellectual property rights) and related major projects of trade in services in Hainan Free Trade Port shall be introduced to countries which have signed with China a cooperation memorandum of understanding on trade in services in an appropriate manner; The development demands for trade in services of Hainan Free Trade Port shall be actively supported when negotiating with foreign parties on new international cooperation agreements on trade in services. (Responsible authority: the Ministry of Commerce)

28. The relevant authorities shall further improve the international statistical monitoring system for trade in services, and strengthen the monitoring and analysis of the operation of cross-border trade in services in Hainan. (Responsible authorities: led by the Ministry of Commerce, with participation by the People's Bank of China, the National Bureau of Statistics, the State Administration of Foreign Exchange, and Hainan Province)

The Ministry of Commerce shall, in concert with the relevant departments, conscientiously implement various tasks and fully support, guide, and assist Hainan Province in carrying out various tasks according to the division of duties under the overall planning of the leading group for promoting comprehensive reform and opening up of Hainan. Hainan Province shall earnestly fulfill its primary responsibilities, refine the breakdown of tasks, implement them properly level by level, expedite trade liberalization and facilitation, strictly abide by the requirements of the Party Central Committee for ecological and environmental protection, and effectively prevent and control risks, to promote the constant achievement of new results in the construction of Hainan Free Trade Port. Where the above measures involve any adjustments to current laws or administrative regulations, the prescribed procedures shall be followed.

Ministry of Commerce

Propaganda Department of the Central Committee of the Communist Party of China

Office of the Central Cyberspace Affairs Commission

National Development and Reform Commission

Ministry of Industry and Information Technology

Ministry of Justice

Ministry of Finance

Ministry of Transport

Ministry of Agriculture and Rural Affairs

Ministry of Culture and Tourism

National Health Commission

Ministry of Emergency Management

The People's Bank of China

General Administration of Customs

State Administration for Market Regulation

National Radio and Television Administration

National Bureau of Statistics

National Energy Administration

National Forestry and Grassland Administration

State Administration of Foreign Exchange

April 19, 2021

(All information in the documents are authentic in Chinese and their English versions are provided for reference only. In case of any discrepancy, the Chinese versions shall prevail.)