, April 4 (Zhongxin Finance Zuo Yuqing) On the evening of March 1, #Hainan launched preparations for the island-wide customs closure operation#rushed to the top of Weibo's hot search. Some experts believe that this is to build Hainan into "Hong Kong + Florida".

What does it mean that the Hainan Free Trade Port will start preparations for the island-wide customs closure? And what impact will it have on us?

What is a "closure"?

On March 3, the first press conference of "The Booming Time - Hainan's Progress in Comprehensively Deepening Reform and Opening Up in the Five Years" mentioned that Hainan will fully launch preparations for the island-wide customs closure operation.

"Customs closure" is a customs term, that is, the whole island of Hainan becomes a "domestic and extra-customs" area, and Hainan Island can enjoy preferential policies such as zero tariff.

Sang Baichuan, dean of the Institute of International Economics of the University of International Business and Economics, told Zhongxin Finance and Economics that the customs closure operation is mainly carried out in the dividing line between Hainan and other regions in China, according to the management model of "the first line is released and the second line is controlled".

Data map: Hainan Yangpu International Container Terminal. Photo by Zhang Yuehe

According to the WeChat public account of "Hainan Free Trade Port", "first line" refers to the national border, that is, from abroad to within the free trade zone (port); "Second line" refers to the spatial dividing line of the free trade zone (port), that is, the dividing line between the free trade zone (port) and other areas in the territory.

According to international experience, the core of a mature free trade port is "first-line liberalization", that is, the free trade zone (port) and overseas to achieve the free flow of goods, funds and personnel and other elements without customs supervision. "Second-line control" means that goods entering and exiting other areas of the country from the free trade zone (port) are included in the integration of customs clearance throughout the country, and routine supervision is implemented, corresponding taxes are collected, and trade statistics are included.

"To put it simply, foreign goods can enter Hainan relatively freely, but from Hainan to other areas in the territory, they must be managed in accordance with the same customs management system as other regions in the country." Sang Baichuan said.

What preparations do I need to make for the closure of Hainan?

Sang Baichuan pointed out that the operation of customs closure requires both the support of hardware infrastructure and the guarantee of the system, which means that a lot of preliminary preparations must be done.

"For example, in the construction of the 'second-tier' customs, it is necessary to increase investment so that the customs management of goods and services entering Hainan can keep up with other areas in the territory." In addition, the scale of personnel, goods, and services will also increase, so the requirements for transportation, telecommunications, catering, hotels, logistics, etc. have increased significantly. Whether Hainan has such a reception capacity and bearing capacity requires investment in infrastructure construction. ”

Aerial photograph of Hainan Boao Lecheng International Medical Tourism Pilot Zone. Photo by Luo Yunfei

At the same time, Hainan Customs Closure also puts forward requirements for software. "For example, relevant policies, regulations and management mechanisms, as well as the quality of personnel, need to be further improved, and compatible with highly free convenience rules in order to meet the requirements of the development of free trade ports." Sang Baichuan said.

According to Wang Bin, spokesperson of the Hainan Provincial Party Committee of the Communist Party of China, member of the Standing Committee of the Provincial Party Committee and director of the Propaganda Department of the Provincial Party Committee, at a press conference on March 3, at present, Hainan has fully launched preparations for the operation of the island-wide customs closure, mainly including 29 work tasks, 64 construction projects (port construction, customs inspection equipment, etc.) and 31 pressure test items.

What are the benefits of Hainan's customs closure?

For the impact of Hainan's customs closure, Sang Baichuan believes that Hainan's import and export trade and investment will usher in benefits.

"When the duty-free on outlying islands is transformed into a landing duty-free, whether overseas personnel enter Hainan or personnel from other regions in Hainan enter Hainan, they can enjoy the duty-free treatment of imported goods in Hainan, so that the scale of imports will increase significantly; At the same time, the entry of commodities from other regions in Hainan into Hainan is regarded as export, and the scale of Hainan's exports may also increase, so the customs closure will have a stimulating effect on the entire import and export trade. He said.

Sanya International Duty Free City attracts many customers to shop. Photo by Luo Yunfei

Sang Baichuan said that because the landing tax exemption policy will attract a large number of tourists and settlers, local catering, hotel, tourism and other industries will be promoted, and supporting financial services will also be developed, "such as trade settlement, currency exchange, etc." ”

In addition, the full implementation of the negative list system for market access will also enable investors to seek more development opportunities in the Hainan market. "This will have a huge driving effect on green industries, food processing, and related business services." Sang Baichuan said.

Will Hainan become "Hong Kong" or "Jeju Island"?

Some believe that the closure will make Hainan the next Hong Kong or Jeju Island. So, will Hainan become a copy of them?

"The Hainan Free Trade Port should have its own characteristics, it is neither Hong Kong, nor Florida, nor Jeju Island, it is a free trade port with Chinese characteristics." Sang Baichuan said.

Data map: Aerial photograph of Hainan Yangpu International Container Terminal. Photo by Luo Yunfei

He believes that compared with other free trade ports, Hainan's own industrialization advantages are not obvious, and the port resources and geographical location are not as good as some other large ports in China; However, at the same time, Hainan has a relatively large area, a relatively long coastline, and a relatively developed marine economy, which has its own unique advantages, so it should combine its own resource advantages and conditions to determine its own industrial positioning and development direction.

"Hainan should develop a free trade port with service trade as the main body." He said that Hainan has broad development space in cross-border delivery, overseas consumption and data trade.

What does the Hainan closure mean for ordinary people?

For the closure of Hainan, some netizens are curious about its impact on ordinary people, and some netizens are worried about whether it will cause inconvenience in entering and leaving Hainan, and what will be the actual situation?

Sang Baichuan said that if the duty-free policy can be implemented after the closure, and duty-free imported goods can be obtained by living in Hainan, it will be a huge attraction for tourists.

Infographic: Haikou Meilan Airport, passengers are going through the procedures. Photo by Luo Yunfei

In terms of the convenience of entering and exiting Hainan, Sang Baichuan said that after the customs closure operation, going to Hainan from other areas in the territory means customs clearance, but there will not be much difference in the flow of people. "The key management is to protect tourists from the perspective of system design and ensure the free and convenient flow of people going to Hainan."

In addition, after the implementation of the "inside and outside the customs" management model, if the inspection of Hainan personnel entering other areas of the territory is increased, the speed of release will be slowed down, which will also have an impact. "This is also an important part of risk testing, and it is necessary to minimize or even eliminate the inconvenience of personnel movement." He said. (End)