Master Plan for the Construction of Hainan Free Trade Port（VI）
Release time: 2020-07-23 11:25 Source: 投资海南
16. Strengthen guarantee for the utilization of land and sea. In accordance with relevant national provisions, and under the premise of never crossing the red line of ecological protection or breaking key indexes such as permanent basic farmland area, cultivated and forest land area, total scale of construction land as well as ensuring the quality of land will not be undermined, Hainan is authorized to approve the layout adjustment of cultivated land, permanent basic farmland, forestland and construction land, and incorporate the approvals in the spatial planning process at provincial, city and county levels. Actively foster the integrated and coordinated development of urban, rural and reclamation areas, promote new models for construction land in small towns, and push forward the capitalization of agricultural reclamation land. Establish intensive development and conservation system for land resources, evaluation criteria and policy system for revitalizing and disposal of existing construction land stock. Leverage on and advocate the experience from the three pilot rural land reforms in Wenchang county and support the entire Hainan island to undertake in-depth rural land reforms. Guarantee to meet the sea utilization demand for national key projects according to laws.
17. Prepare for the initiation of independent customs operations throughout Hainan island. Issue the catalogue for import taxation, list of restricted items for import, list of prohibited items for import, list of restricted items for export, list of prohibited items for export, administrative measures for means of transport, standardized paperwork for customs clearance with mainland customs, operating procedure for customs clearance with mainland customs and operating procedure for export clearance. Open more ports and build facilities necessary for independent customs operations throughout Hainan island.
18. Launch independent customs operations throughout Hainan island in due time. Conduct overall assessments in due time on the preparatory work for the initiation of independent customs operations for Hainan island to identify and block any safety loophole before year 2025. Launch independent customs operations only after all preparations are done. The Yangpu Bonded Port Area, Haikou Comprehensive Bonded Zone along with other Special Customs Supervision Zones will no longer be reserved. Relevant supervision plans will be rolled out by related departments respectively. While independent customs territory will cover the whole island of Hainan, the current value-added tax, consumption tax, vehicle purchase tax, urban maintenance, construction tax, education surcharges among other taxes and charges will be streamlined based on laws, and related work for charging and collecting sales tax in retail sale of goods and services will be started.
(II) Key tasks to be completed before 2035. Further optimize and improve opening-up policies and relevant systems to realize facilitation of free trade, free investment, free flow of cross-border capitals, free flow of persons, free transportation and free flow of data in a safe and ordered manner and promote the construction of a high-level free trade port.
1. Facilitate free trade. Further innovation will be made in customs’ supervision system, and non-tariff measures for trade will be prepared in align with the concept of overall national security. Furthermore, trade management rules will be formulated to allow free, safe and convenient flow of goods, thus facilitating free flow of overseas goods in Hainan Free Trade Port. establish and improve relevant rules on cross-border payment business and create satisfactory payment service market environment. Finally, the efficiency of cross-border payment service will be improved to promote the facilitation of free cross-border trade in service in accordance with law.
2. Facilitate free investment. Investment access in all aspects will be opened up except for the fields whose market access is subject to state administration such as the fields involving national security, social stability, red line of ecological protection and major public interest. With regard to fields where compulsory criteria exit, a combined investment system consisting of “criteria + commitment will be adopted. Market entities may carry out investment and operation after making a commitment on complying with relevant requirements.
3. Facilitate free flow of cross-border capital. Certain qualified non-financial enterprises will be allowed to incur foreign debts based on actual financing needs, thus realizing the total availability of exchange of foreign debts of non-financial enterprises in Hainan Free Trade Port.
4. Facilitate free flow of persons. Restrictions on free flow of persons will be further relaxed. More relaxed entry policy and more convenient work visa policy will be implemented for business people so as to further improve the residence system.
5. Realize free and convenient transport. A special ship registration and censorship regulation will be adopted. Restrictions will be further relaxed for airspace control and air route and traffic right. Domestic and foreign airlines will be encouraged to increase transport capacity input and add routes and flights. The license will be issued for international routes and flights to Hainan as a priority when auditing the international route business license of foreign airlines based on the bilateral air transportation agreement.
6. Realize secure and orderly data flow. Invent new system design of data exit security and explore more convenient personal information security exit assessment methods. Carry out institutional matchup of personal information entry and explore to add institutional arrangement for cross-border flow of regional international data to improve the convenience of data transmission. Take the initiative to participate in international rule making on cross-border data flow and establish standards and regulations for data right authentication, data transaction, data security and blockchain finance.
7. Further promote the reform of taxation system. Enterprise registered in Hainan Free Trade Port and substantially running (except industries on the negative list) are entitled to a reduced corporate tax rate of 15%. As for individuals who have lived in Hainan Free Trade Port for 183 days full within the first tax year, the personal income tax of their comprehensive incomes and business incomes obtained within the range of Hainan Free Trade Port will be collected at a progressive tax rate in excess of specific amount, and the rate will be classified into three grades: 3%, 10% and 15%. Expand the administration authority of Hainan local taxation. Enterprise income tax and individual income tax will serve as shared incomes between the Central Government and the local government. Sales tax and other domestic taxes will serve as revenues of the local government. Authorize Hainan to independently reduce, exempt and postpone the imposition of tax beyond government funds of an eco-compensation nature and to independently establish revenues from administrative and institutional fees relating to enterprises. The revenues from administrative and institutional fees on a Central Government level will be implemented according to the uniform regulations of the Central Government. The central financial support policies will be adjusted with the changes of the tax system and be reinforced. Researches will be carried out further to improve the framework of subsidy policies to provide reference for China to formulate international rules on subsidy.