Haikou FTZ  was  set  up  with  the  approval of  the  State  Council  on  December 22, 2008 ,  just  after  the  State  Council’s  approval  for  establishment  of  Yangpu  Bonded  Harbor.   Haikou FTZ  is  another  special  economic  zone of  Hainan  Province  which  enjoys  the  highest  level  of  opening  up,  the  most preferential  policies, the  most  complete  functions,  and  the  most convenient  procedures  that customs supervises.   The  functions  of  Haikou  FTZ  include  storage  logistics, foreign  trade,  international  procurement,  distribution  and delivery,  international  transfer ,  after-sale  service,  goods  exhibition,  export  processing, research  and  development, manufacturing, harbor  work,  and etc.  

Haikou FTZ, sited at Laocheng Economic Development Zone of Hainan Province,  is  located  at  the  pearl  Delta  Economic  Belt,  in  the  Economic  Circle of the North Gulf, and is close to the frontier of ASEAN Free Trade Area.   This  area  lies  in  the  traffic  line  of the  Maritime Economic Corridor of Indian Ocean and Pacific Ocean, and links Taiwan,  Hong Kong and Southeast Asia, with tremendous geographical advantages.  

With the concept of International Tourism Island, Hainan attracted 47 million domestic and foreign tourists in 2014.   In  China  government’s  latest  strategic  initiative  of  “One  Belt  and  One  Road”,  Hainan  is  the  vanguard  and  main  force  for  the  “21st  Century  Maritime  Silk  Road”.   This  will  provide  Haikou  FTZ  with  a  new  opportunity  for  further  development.  

Below are the major preferential policies of Haikou FTZ enjoyed by HPB:

An exhibitor can display imported goods (e.g., precious diamonds and other expensive jewellery)  at  our  exhibition  center  located  within  Haikou FTZ  without  paying  any  import-related  tax  until  the  goods  are  sold  to  the  China  market.  If  an  exhibitor  intends  to  display  imported  products  at  our  physical  stores  outside  the  bonded  area,  such  display  will  require  an approval  from  the  customs  authority  of  Haikou FTZ, as  well  as a  security  deposit  to  secure  the  taxes.

Imported goods, if unsold, can be returned to offshore suppliers without going through China’s customs clearance formalities, only subject to filing-for-record requirements.

For domestic suppliers, goods sold by them to us are eligible for export tax refund upon crossing the boundary of Haikou FTZ from domestic market.

Loose diamonds imported by us under general trade can be shipped to Haikou FTZ directly,  without  making  a  detour  to  Shanghai  for  customs  inspection  (though  the  customs  clearance  documentation  should  be  processed  by  the  customs  authority  in  charge  of  Shanghai  Diamond  Exchange  (SDE Customs)).   The  customs  authority  of  Haikou  FTZ has been  authorized  to  inspect said  imports  on  behalf  of  SDE  Customs.

Goods traded within Haikou FTZ are exempt from value-added tax and consumption tax.

The following imported goods for our self-use are exempt from taxes: equipment, machinery, warehouse  facilities,  tools, etc., and  reasonable  amount  of  office supply.