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        1. Preferential Taxation Policies
        (1) Infrastructure materials and imported equipment for use at the FTZ shall be exempted from import tariffs and VAT.
        a) Tax exemption on machinery and equipment necessary for on-site production infrastructure projects and infrastructure materials necessary for workshop and warehousing facilities construction.
        b) Tax exemption on machinery, equipment, moulds and spare parts necessary for on-site production.
        c) Tax exemption on a reasonable number of self-use office supplies for companies and administration offices as well as self-use imported machinery and equipment.
        (2) Bonding of imported goods.
        (3) Export tax rebates on domestic goods (from outside the FTZ but within the territory of mainland China) introduced into the FTZ.
        (4) Customs clearance shall be provided for goods exported out of the zone within the territory of mainland China in accordance with the relevant provisions pertaining to goods importation, with relevant taxes being levied according to the type of goods.
        (5) VAT and consumer tax exemptions on commodity trading among enterprises in the FTZ.
        (6) Export duty and VAT exemption on goods exported from the FTZ except for cases otherwise stipulated by the law and regulations.
        (7) Import /export duties exemption on goods circulation within or between special customs supervision areas or between a special customs supervision area and bonded supervision area.
        (8)Additional incentives for SPV leasing companies.
        2. Liberalized Trade Policies
        (1) Goods from outside the borders of mainland China entering or exiting the FTZ shall not be subject to import and export quotas nor certain licensing requirements except for cases otherwise stipulated by the law or other regulations.
        (2) Companies within the FTZ may complete customs clearance and transit procedures at whatever Chinacustoms office is most convenient for their business needs.
        (3) Companies within the FTZ are able to enjoy the privilege of submitting combined declarations.
        (4) Companies have the advantage of an optimized goods transfer system between Haikou FTZ and other special customs supervision areas.
        (5) Goods are managed according to their place of origin.
        (6) Batch access and centralized declaration for goods entering and exiting the FTZ.
        (7) Centralized tax assessment and remittances.
        (8) Customs declarations may be processed after goods enter the FTZ.
        (9) Simplified and paper-free documentation.
        3. Practical Facilitation Policies
        (1) No time limit for bonded storage of goods.
        (2) No requirement for ledger management (such as bank guarantees) for processing trade companies.
        (3) No restriction on goods circulation within the FTZ.
        (4) Goods transportation within the FTZ does not require customs supervision and escorts.
        (5) Simplified recording is provided for goods imported and exported.
        4. Preferential Inspection and Quarantine Policies
        (1) A reasonable number of office supplies and equipment, production moulds and spare parts and construction materials for workshops and warehouses shall be exempt from China Compulsory Product Certificates (CCC).
        (2) Goods entering the FTZ from mainland China and later transported back (in cases which do not require customs clearance procedures) shall not be subjected to inspection.
        (3) For import/export goods which are warehoused in the FTZ for a short duration, only the external packaging shall be quarantined unless there is damage or leakage.
        (4) Goods which arrive from and are later exported to countries outside China will not require inspection and quarantine procedures unless an inspection certificate issued by China inspection and quarantine agencies is required by the countries or regions receiving the goods, or unless otherwise required by law or regulations.
        (5) Inspection and quarantine procedures will not be required for goods circulated between companies within the FTZ.
        (6) Raw materials from outside mainland China to be used in the production and processing of food and agricultural products shall be exempt from organic products certification.
        (7) Products carrying energy efficiency labelling from outside mainland China will not require further verification on entry to the FTZ.
        (8) A variety of exemptions apply to certain materials and goods used in research, development and testing, including some inspections, the CCC and organic product certificates.
        (9) No inspections are required for consumer goods entering from outside mainland China for use by companies within the FTZ, such goods only being subject to verification management.
        (10) Inspections are not required for goods entering from mainland China for processing in the FTZ.
        5. Attractive Foreign Exchange Policy
        No requirement for foreign exchange verification for goods imported/exported, and transactions may be conducted using either foreign currencies or RMB.
        (1) A company within the FTZ may open a foreign exchange account and a special capital account, and foreign exchange earnings may be retained in full.
        (2) Foreign currency transactions resulting from foreign trade by companies within the FTZ shall not require verification procedures.
        (3) Relaxed polices are provided by the Administration of Exchange Control on foreign exchange purchases by companies within the FTZ which have registered capital in RMB.
        (4) Goods sold from the FTZ into mainland China by companies within the FTZ shall be deemed to have been imported, and payment may be received subject to foreign exchange in accordance with the relevant regulations.
        (5) The profits, dividends and bonuses of foreign investors may be remitted abroad.
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