Hainan Free Trade Port Reports Surge in Zero-Tariff Imports After Customs Overhaul

China's Hainan Free Trade Port (FTP) has experienced a significant increase in zero-tariff imports following the launch of island-wide special customs operations in December 2025, according to local authorities. Between December 18, 2025 and May 31, 2026, zero-tariff imports surged 120 percent year on year, reaching nearly 2.65 billion yuan (about 388 million U.S. dollars).

During the same period, Hainan's goods trade import and export volume totaled 173.98 billion yuan (approximately 25.7 billion U.S. dollars), representing a 54.6 percent increase compared to the previous year. The growth has been driven by the streamlined customs procedures and expanded duty-free shopping options across the island.

The customs operations, which began on December 18, 2025, have accelerated the FTP's development, with increased activity at ports and duty-free shops. One notable example includes the import of a brand new A321neo aircraft under the zero-tariff policy, the first such import after the launch of independent customs operations, as seen at Haikou's Meilan International Airport in May 2026.

Port infrastructure has also been upgraded, with aerial photos from June 2026 showing busy container terminals at Haikou Port and views of Qinglan Port in Wenchang, one of eight ports directly opened to overseas markets under the FTP framework. Duty-free shops in Haikou have reported increased customer interest in imported household chemicals and skin care products.

The strong performance of the FTP underscores its growing role in China's broader economic strategy, positioning Hainan as a key hub for international trade and commerce in the region.