One Year of Zero-Tariff Policy for Medicines and Medical Devices in Hainan Free Trade Port

Policy Overview and Implementation

On January 4, 2025, Haikou Customs reported that the zero-tariff policy for medicines and medical devices in the Hainan Free Trade Port has been operating smoothly for one full year since its first clearance at the end of 2023. The policy exempts import tariffs, import VAT, and consumption tax on eligible medicines and medical devices imported by registered independent legal entities in the Boao Lecheng International Medical Tourism Pilot Zone, including certified medical institutions, higher medical education institutions, and medical research institutes. Cumulative import value has reached approximately RMB 460 million, with tax exemptions totaling about RMB 62 million. Source: Hainan Daily (January 4, 2025)

Key Benefits and Real-World Impact

The policy has delivered substantial financial relief to medical institutions and patients. According to Feng Jialong, relevant responsible person at Hainan Boao Super Hospital, the zero-tariff measure provides significant cost savings on drugs and devices, directly reducing patient expenses while greatly improving institutional cash flow and operational efficiency. This financial breathing room enables institutions to focus more resources on clinical services and advanced treatments.

Customs Support and Optimization Efforts

To ensure effective implementation, Haikou Customs has taken proactive steps:

• Conducted in-depth site visits and surveys to identify pain points and bottlenecks faced by different types of beneficiary entities.
• Optimized clearance procedures to streamline processing.
• Developed targeted solutions to address specific challenges encountered by enterprises.

These efforts have helped ensure that policy benefits reach intended recipients accurately and efficiently.

Future Outlook

Haikou Customs plans to continue improving regulatory services and guidance, encouraging enterprises to fully utilize the zero-tariff policy. The goal is to further amplify the policy’s positive effects, supporting the Boao Lecheng Pilot Zone in becoming a global hub for high-quality medical resources aggregation and advanced medical innovation. Source: Haikou Customs official statement (January 4, 2025)

The one-year milestone demonstrates the policy’s early success in lowering healthcare costs, enhancing institutional capabilities, and contributing to Hainan’s ambition to build an international medical services platform. Ongoing optimization and enterprise engagement will be key to sustaining and expanding these benefits.