Hainan Free Trade Port (FTP) will officially launch island-wide independent customs operations on December 18, to promote trade and help Hainan participate more in the international arena.
The move was approved by the Communist Party Central Committee and announced by the country's top economic planner on Wednesday in Beijing.
Under the initiative, more foreign goods heading for Hainan will become tariff-free.
"The proportion of tariff lines with zero-tariff products entering Hainan FTP through the 'first line' will increase from 21 percent to 74 percent. These imported goods can circulate among eligible entities within Hainan without incurring import taxes, and those that achieve a 30 percent value-added through processing may enter the mainland free from tariffs," Wang Changlin, deputy head of the National Development and Reform Commission, told a press conference.
"First line" goods have Hainan as their destination, while "second line" goods are transshipped to the rest of the country.
Vice Minister of Finance Liao Min added that the number of duty-free items in Hainan will increase from about 1,900 to around 6,600, marking a significant boost in openness.
Authorities will also relax trade management measures, introduce more convenient passage measures, and establish a more efficient and precise supervision mode.
"On December 18, 1978, the third plenary session of the 11th Communist Party of China Central Committee started the great journey of reform, opening up, and socialist modernisation," Wang said.
"Launching the independent customs operation of the free trade port on December 18 carries significant symbolic meaning, demonstrating to the world China's unwavering determination and confidence in expanding high-standard opening up.
"We will take a targeted regulatory approach of low-intervention and high-efficiency for zero-tariff and relaxed management goods, ensuring smooth implementation of the opening-up policies." (Xinhua and agencies)