On December 18, 2025, Hainan officially implemented its customs closure, with a series of supporting documents, including the “Notice on Taxation Policies for Goods Entering and Exiting the ‘First Line’ and ‘Second Line’ in the Hainan Free Trade Port and Their Circulation Within the Island,” simultaneously taking effect. These documents clarified core rules such as the prohibited and restricted import/export lists and the catalog of taxed imported goods.
This significant measure has drawn widespread attention, with the distinction between the concepts of “border closure” and “island sealing” becoming the focal point for the public. Clarifying the differences between the two is key to understanding the essence of the policy.
The clear distinction is that sealing off customs does not equate to island sealing. Mainland residents do not require additional documents to enter or exit, and items sent to the mainland are not considered cross-border express deliveries. The essence is to establish a special customs-regulated zone, implementing the policy of “opening the first line, controlling the second line, and granting freedom within the island.” This is not “island sealing” but rather a higher-level opening-up.
From the historical context of China’s opening-up, the full island closure of Hainan is far from an isolated policy move but a significant milestone in the upgrading of our country’s opening-up strategy.
With core policies such as zero tariffs and tax exemptions for processing value-added goods, coupled with the established petrochemical industrial cluster in Yangpu valued at hundreds of billions, the island-wide customs closure in Hainan brings multiple benefits to the chemical new materials industry, including cost reduction and market expansion. It also drives the industry toward greener and more high-end transformation.
Post time: Dec-19-2025