Haikou, the capital city of China’s southern island province of Hainan, is preparing for customs clearance operations. The construction of seven ports in the city - with a total investment of over RMB 5.2 billion (USD 0.8 billion) accounting for 27% of the provincial total – will commence by the end of June this year and is expected to be completed by the end of 2023.

China released a master plan for the development of the Hainan Free Trade Port (FTP) in June 2020, aiming to build Hainan Island into a globally influential free trade port by the middle of the century. As part of the master plan, the FTP is set to introduce island-wide customs clearance operations by 2025, which will be a foundation and a milestone for its future development. The province aims to complete all the necessary preparation work for customs clearance operations by the end of 2024.

According to the provincial government, Haikou has 14 projects relating to customs clearance operations, accounting for nearly 26% of the province’s total of 54 projects. With planned total investment of over RMB 8.5 billion (USD 1.3 billion), Haikou’s projects make up about 44% of the total investment across the province.

In addition, the city is strengthening coastal law enforcement, constructing and opening new administrative offices in five coastal areas including Xinhai, Shuishang, Xinbu, Dongying, and Tashi. Sea-going vessels are being inspected to ensure that they are properly registered and carry necessary certification according to the law, and a total of 756 boats have been equipped with China’s Compass (Beidou) satellite navigation system.

Haikou has taken the lead in handling 21 categories of business by taking advantage of the implementation of FTP-related policies, promoting industrial development in duty-free shopping, offshore trade, the Fifth Freedom of the Air, trade balance, and more.