Ministry of Commerce: Exemption from customs duties on aircraft and ships temporarily exported for repair and re transported into Hainan Free Trade Port

Beijing, June 30th (Reporter Sun Hongli) The State Council recently issued the "Several Measures for Pilot Connection with International High Standards and Promoting Institutional Opening in Conditional Free Trade Pilot Zones and Free Trade Ports", taking the lead in pilot connection with relevant international high standard economic and trade rules in Shanghai, Guangdong, Tianjin, Fujian, Beijing and other eligible free trade pilot zones and Hainan Free Trade Port, steadily expanding institutional opening.

At the State Council policy briefing held today (30th), Assistant Minister of Commerce Chen Chunjiang stated that promoting innovative development of goods trade has always been a key focus of institutional innovation in free trade pilot zones and free trade ports. This pilot docking will explore the import management of remanufactured products, duty-free outbound maintenance of ships and aircraft, and other aspects, which will bring tangible benefits to relevant enterprises and consumers.

Chen Chunjiang said that the first advantage is to carry out pilot imports of remanufactured products in key industries. In recent years, the global remanufacturing industry has developed rapidly, and remanufactured products have become popular in the market due to their economy, practicality, and economy. It is necessary to explore new management mechanisms for some imported remanufactured products with mature technology, clear standards, and safety and environmental protection. This pilot project for the import of remanufactured products will clarify that China's measures prohibiting or restricting the import of old products are not applicable to eligible imported remanufactured products. This will promote the import of remanufactured products, meet domestic demand, reduce enterprise costs, and enrich consumer choices. The Ministry of Commerce will work with relevant departments to promptly study the specific pilot product plans proposed by the pilot areas, clarify the product list, applicable specific standards, requirements, conformity assessment procedures, and regulatory measures, and make a decision within 6 months to ensure the implementation and effectiveness as soon as possible.

The second advantage is the exemption of tariffs on aircraft and ships that are temporarily repaired and re transported into Hainan Free Trade Port. According to current regulations, if aircraft, ships, and other means of transportation are transported overseas for repair and have already been reported to the customs at the time of exit and re transported into the country within the time limit specified by the customs, the customs value shall be determined based on the review of overseas repair fees and material costs, and customs duties shall be levied according to regulations. The pilot measures are applicable to aircraft operated by aviation enterprises with Hainan Free Trade Port as their main operating base, as well as ships operated by shipping companies registered at Hainan Free Trade Port with independent legal personality and registered at Hainan Free Trade Port with Hainan Free Trade Port as their port of registry. Temporary outbound repairs and re transportation into Hainan Free Trade Port are exempt from customs duties, regardless of whether they have added value or not. This institutional innovation will be beneficial for reducing the repair costs of relevant aviation companies and shipping companies, and better enjoying the policy dividends of Hainan Free Trade Port.

The third advantage is that goods that are allowed to enter the special customs supervision area of Hainan Free Trade Port for repair from abroad and are re transported out of the country will be exempt from customs duties; If the goods are not transported out of the country and converted into domestic sales, customs duties shall be levied according to regulations. This measure applies to the "first line" import bonded and re transported export duty-free goods currently entering the special customs supervision area of Hainan Free Trade Port for repair, and is adjusted to direct duty-free, breaking through the current bonded policy; At the same time, allowing non re exported goods to be sold domestically will be beneficial for the development of related maintenance industries.