Data indicates Hainan's special customs operations taking hold

Residents and tourists shop at the China Duty Free Group's Haikou International Duty-Free City. [Photo provided to chinadaily.com.cn]

Hainan Free Trade Port has recorded a steady start one month after launching its island-wide special customs operations, provincial officials said on Monday.

At a press briefing, authorities said the Dec 18 rollout had met initial targets, with key policies taking effect and economic activity picking up.

Residents and tourists shop at the China Duty Free Group's Haikou International Duty-Free City. [Photo provided to chinadaily.com.cn]

During the month since its Dec 18 launch, new foreign trade enterprises registered in Hainan exceeded 5,000, driven by the FTP's openness and preferential policies. Customs data shows that 53 zero-tariff transactions were recorded, totaling 753 million yuan ($106 million), a 38.9 percent increase compared to the same period last year. Tariff exemptions reached 109 million yuan, up 194.6 percent.

Residents and tourists shop at the China Duty Free Group's Haikou International Duty-Free City. [Photo provided to chinadaily.com.cn]

Additionally, 214 transactions under the import tariff exemption policy for products with no less than 30 percent added value after processing were completed, valued at 85.87 million yuan, with tariff reductions of 3.32 million yuan, data showed, indicating that key policies are proving effective.

Residents and tourists shop at the China Duty Free Group's Haikou International Duty-Free City. [Photo provided to chinadaily.com.cn]

Cross-border tourism also expanded significantly. Immigration inspection authorities recorded 317,000 entries and exits in the first month, including 87,000 foreign visitors entering under visa-free policies, a 64 percent increase year-on-year. Visa-free arrivals accounted for 93 percent of all international visitors. The main countries of origin included Russia, Malaysia, Indonesia, the Republic of Korea, Kazakhstan, and Singapore, with 81 percent of arrivals for tourism. Business, family visits, and other purposes also rose.

Foreign passengers prepare for entry procedures at Sanya Phoenix International Airport. [Photo by Meng Xushun/for chinadaily.com.cn]

Meanwhile, Hainan's duty-free shopping sector posted strong growth. From Dec 18 to Jan 17, duty-free sales reached 4.86 billion yuan, up 46.8 percent from the previous year. The number of shoppers rose 30.2 percent to 745,000, with 3.49 million items purchased, a 14.6 percent increase. On average, about 24,000 shoppers spent 160 million yuan daily in the island's duty-free stores.

Sanya, for example, recorded duty-free sales of 3.36 billion yuan, up 47.1 percent annually, with average daily sales exceeding 100 million yuan.