Hainan FTP zero-tariff policy for vehicles and yachts Q&A
Update time：2021-1-14 16:00:14 source：Tannet Views：658
To boost the high-quality development of the Hainan Free Trade Port, an announcement about Hainan’s zero-tariff policy for vehicles and yachts has been made, with a list of 100 commodities including passenger cars, trailers, aircraft, hot-air balloons, airships, yachts, sailing boats, and more. The announcement was made on Dec. 25 and remains effective until the operation of the island-wide customs clearance.
The preferential policy will significantly lower the cost of purchase and operation of the commodities on the list. When importing yachts in the Chinese Mainland, about 38% of the customs duty and import VAT (Value Added Tax) is due, while importing a 10 million CNY (about 1.53*million*USD) yacht in Hainan saves nearly 3.8 million CNY (about 58,200 USD) in tariffs.
(Visun Royal Yacht Club)
Q&A on the zero-tariff policy for vehicles and yachts
Q1: What is the zero-tariff policy?
A1: It refers to the preferential tax policies for enterprises stating that the customs duty, import VAT (Value Added Tax), and excise tax will be exempt for vehicles and yachts imported for use in the transportation or tourism industry.
Q2: Who can enjoy the zero-tariff policy?
A2: Enterprises registered in the Hainan Free Trade Port as independent legal entities in the transportation (in case of airlines, their main operating base has to be in Hainan) or tourism industry.
Q3: When importing listed vehicles and yachts, what conditions must be met to enjoy the zero-tariff policy?
A3: The listed vehicles and yachts shall be registered and naturalized in the Hainan Free Trade Port.
(1) Aircraft and vessels shall operate on domestic and international routes departing from or stopping in the Hainan Free Trade Port.
(2) Yachts shall operate within Hainan Province.
(3) Vehicles can operate within Hainan Island or travel to and from the Chinese Mainland transporting passengers or goods. For transportation to and from the Chinese Mainland, at least one of the departure or destination points shall be within the Hainan Free Trade Port. For vehicles traveling to and from the Chinese Mainland, the duration of their stay in the Chinese Mainland is unlimited if their stopover points and driving routes are fixed and return is made immediately after loading or unloading passengers or goods. Otherwise, their total length of stay in the Chinese Mainland shall not exceed 120 days per year.
Q4: Are there any other provisions?
A4: Zero-tariff vehicles and yachts are prohibited from being transferred within or leaving the island. In case of a real necessity for transfer due to bankruptcy or other reasons, approval must be obtained from customs and domestic VAT and excise tax must be paid. For vehicles and yachts being transferred to enterprises unqualified to enjoy the policy, tariffs shall be paid according to current regulations.
Contact
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tanne’s website www.tannet-group.net, or calling our hotline at 86-898-6532 9504, or emailing to hntannet@163.com . Our experienced consultants will be glad to assist and advice on how to approach your particular challenge.