In November, Sanya Bay in Hainan, the southernmost province of the Chinese mainland, looked almost surreal: turquoise waters, palm-fringed marinas and sailboats gliding on the breeze.
But conversation among tourists and yacht owners at the Sanya International Yacht Center these days circles around exactly one date: tomorrow, December 18, when island-wide special customs operations kick in across the Hainan Free Trade Port.
For many locals and visitors, the policy shift is more than a bureaucratic milestone. It marks the start of a new voyage – one charted by zero-tariff rules and streamlined import procedures across China's most ambitious Free Trade Port yet.
Under the expanded customs regime, zero tariffs on imported yachts—a pilot policy for tourism and transport enterprises—will not only continue but expand to cover 74 percent of tariff lines. Companies importing a 10 million yuan ($1.41 million) yacht stand to save roughly 40 percent in tariffs and consumption taxes, savings that could be passed on to customers.
At the same time, import licenses for used mechanical and electrical products under 60 commodity codes will be scrapped, freeing up about 80 percent of items previously restricted. Yacht manufacturers also benefit from import-VAT exemptions on equipment and materials – cutting costs by roughly 20 percent – and an extra 6 percent reduction on domestic sales via processing value-added tariff breaks.
These incentives are already drawing domestic and international yacht makers and repair firms to Sanya. Local authorities are fast-tracking a yacht industry pilot zone that bundles manufacturing, tourism, exhibitions and cultural businesses into one coastal ecosystem.
Visitors now speak of Sanya in the same breath as Miami, Santorini or Barcelona – lifestyle hotspots where ocean culture and high-value industries feed each other. Whether Hainan will secure a spot on that list remains to be seen, but the momentum is undeniable.
Sanya's push mirrors a global trend: as of 2025, more than 130 free trade ports and over 3,900 free trade zones operate worldwide. China's development zones alone represent half of these. Lessons from Singapore, Dubai, Hong Kong and Rotterdam show that building a world-class Free Trade Port can take decades, but the payoff is becoming a regional transport and economic hub.
Tomorrow's launch of island-wide special customs operations is a clear signal: Hainan is setting sail on a new chapter of openness, innovation and growth.
Reference(s):
Hainan after special customs operations: Hainan truly sets sail
cgtn.com
