Order of the President of the People's Republic of China
No. 85
The Law of the People’s Republic of China on the Hainan Free Trade Port,
National People’s Congress of the People’s Republic of China on June
10, 2021, is hereby promulgated, and shall go into effect as of the date
of promulgation.
Xi Jinping
President of the People’s Republic of China
June 10, 2021
Law of the People's Republic of China on the Hainan Free Trade Port
(Adopted at the 29th Meeting of the Standing Committee of the Thirteenth National People's Congress on June 10, 2021)
Contents
Chapter I
General Provisions
Article 1
This Law is enacted for the purpose of building a high-standard Hainan Free
new model for reform and opening up at a higher level, establish new
systems for the open economy, and promote the smooth, healthy and
sustainable development of the socialist market economy.
Article 2
The state establishes the Hainan Free Trade Port on the whole island of
by step and in stages to realize liberalization and facilitation of
trade, investment, cross-border capital flows, personnel entry and exit,
and transport to and from the free trade port, and to ensure the safe
and orderly flow of data.
bound by this Law. In the absence of any provisions in this Law, the
provisions of other relevant laws and regulations shall apply.
Article 3
The Hainan Free Trade Port shall be developed with Chinese characteristics
status and giving full play to Hainan’s strengths. In the course reform
and innovation shall be encouraged and risk prevention strengthened. The
new philosophy of innovative, coordinated, green, open and shared
development shall be applied, a holistic approach to national security
adopted, high-quality development adhered to, and the people’s place at
the core upheld. This will be done to achieve economic prosperity,
improve social etiquette and civility, maintain an eco-friendly living
environment and see that the people lead a happy life.
Article 4
The Hainan Free Trade Port shall be developed with a focus on promoting
free, orderly, safe and convenient flow of different production factors
across the border and a modern industrial system, and guaranteed by a
special taxation arrangement, an efficient social governance system and a
sound legal system, with continuous improvements made to ensure a
law-based, international-oriented and convenient business environment
and a fair, integrated and efficient market.
Article 5
The strictest systems for eco-environmental protection shall be implemented
in the Hainan Free Trade Port with priority given to ecologicalprotection and in pursuit of green development.Better systems and
mechanisms for ecological conservation shall be developed and a national
pilot zone for ecological conservation shall be established in the
Hainan Free Trade Port.
Article 6
The state establishes a leadership mechanism for the development of the
concerning its development. The departments in charge of development and
reform, finance, commerce, financial regulation, customs and taxation
under the State Council and other State Council departments shall guide
and promote the development of the Hainan Free Trade Port in accordance
with their respective duties and responsibilities.
development of the Hainan Free Trade Port and develop new regulatory
models.
and strengthen their leadership and organization, to promote the
development of the Hainan Free Trade Port with all their strength.
Article 7
The state supports the establishment and development of the Hainan Free
exercising the decision-making power over carrying out reform in
accordance with the requirements of the Central Government and the
provisions of laws. The State Council and its relevant departments
shall, in timely manner, authorize or entrust the people’s government of
Hainan Province and its relevant departments to exercise relevant
administrative powers in accordance with the practical needs for the
develop of the Hainan Free Trade Port.
Article 8
The Hainan Free Trade Port shall establish a comprehensive, scientific, and
effective governance system, promote the reform of government agenciesand the transformation of their functions, standardize government
services, strengthen the mechanisms for preventing and resolving social
conflicts, and develop a smarter social governance system based on
collaboration, participation, and common interests.
divisions in the Hainan Free Trade Port by optimizing the layout and
structure of the administrative divisions.
Article 9
The state supports the Hainan Free Trade Port in taking the initiative to
trends in global economic governance reform, and in carrying out
international exchanges and cooperation.
Article 10
The Hainan Provincial People’s Congress and its Standing Committee may, in
accordance with this Law, formulate regulations on trade, investment,
and related administrative activities (hereinafter referred to as the
Hainan Free Trade Port regulations) in light of the actual conditions
and needs of the Hainan Free Trade Port and under the provisions of the
Constitution and the basic principles of laws and administrative
regulations, and shall implement these regulations within the Hainan
Free Trade Port .
Committee of the National People’s Congress and the State Council for
the record. Explanations shall be given for the circumstances and
reasons justifying any deviation in the Hainan Free Trade Port
regulations from the provisions of laws or administrative regulations.
governed by laws of the National People’s Congress and its Standing
Committee or by administrative regulations of the State Council in
accordance with the law, the said regulations shall be submitted to the
Standing Committee of the National People’s Congress or the State
Council for approval before entering into force.
Chapter II
Trade Liberalization and Facilitation
Article 11
The state establishes a customs supervision system for the special zone of
customs operations in Hainan Island. A secure and convenient management
system for trade in goods that allows free entry and exit of goods shall
be established, and the administrative measures for trade in services
shall be optimized, to realize trade liberalization and facilitation on
the basis of effective regulation/supervision in accordance with the law
(qianyi).
Article 12
The Hainan Free Trade Port shall build port infrastructure to a high
bio-safety, food safety, and commodity quality and safety at the ports.
Article 13
Goods and articles may enter or exit freely between areas outside the borders
of China’s mainland and the Hainan Free Trade Port under thesupervision of the customs in accordance with the law, except those on
the lists of goods and articles prohibited or restricted for import or
export in the Hainan Free Trade Port.
department in charge of commerce under the State Council in conjunction
with other relevant State Council departments and the Hainan provincial
authorities.
Article 14
For goods entering other customs area of China (hereinafter referred to as
formalities shall be handled in accordance with import regulations in
principle. Articles entering China’s mainland from the Hainan Free Trade
Port shall be subject to supervision and management in accordance with
relevant regulations. Simplified import administration shall be applied
to the means of transport from the Hainan Free Trade Port to China’s
mainland.
from China’s mainland shall be managed in accordance with the
regulations on domestic shipment.
between the Hainan Free Trade Port and China's mainland shall be
formulated by the relevant departments under the State Council in
conjunction with the Hainan provincial authorities.
Article 15
All market entities are free to engage in trade in goods and related
customs shall conduct efficient supervision and administration with
less intervention.
period for import and export goods and the places of storage may be
freely chosen, provided that the requirements for environmental
protection and production safety are met.
Article 16
The Hainan Free Trade Port shall implement policies on customs clearance
goods. Except for goods subject to inspection and quarantine or license
management in accordance with the law, the customs shall release goods
entering the Hainan Free Trade Port in accordance with relevant
regulations, so as to facilitate customs clearance for market entities.
Article 17
The Hainan Free Trade Port shall implement a system of negative list for
for payments and capital transfers. Cross-border trade in services
outside the scope of the negative list shall be managed according to the
principle of equal treatment for domestic and cross-border trade in
services.
Trade Port shall be made by the department in charge of commerce under
the State Council in conjunction with other relevant State Council
departments and the Hainan provincial authorities.
Chapter III
Investment Liberalization and Facilitation
Article 18
The Hainan Free Trade Port shall implement investment liberalization and
requirements for investment, improving the system for investment
promotion and protection, strengthening protection of property rights,
ensuring fair competition, and fostering an open, transparent and
predictable investment environment.
for those sectors subject to approval by the state involving national
security, social stability, redlines for ecological protection, and
major public interests, etc.
Article 19
The Hainan Free Trade Port shall implement an administration system of
investment. The negative lists for foreign investment access exclusively
applicable to the Hainan Free Trade Port shall be made by the relevant
departments under the State Council in conjunction with the Hainan
provincial authorities, and be issued upon the approval of the State
Council.
Article 20
The state relaxes regulation of market access in the Hainan Free Trade
market access in the Hainan Free Trade Port shall be determined by the
relevant departments under the State Council in conjunction with the
Hainan provincial authorities.
focusing on process supervision and management and gradually implement a
system of market access upon commitment. The specific measures thereof
shall be formulated by Hainan provincial authorities in conjunction with
relevant departments under the State Council.
Article 21
The Hainan Free Trade Port shall, in accordance with the principles of
efficiency, and improve government services; establish systems
facilitating the establishment, operation, and withdrawal of market
entities; and optimize bankruptcy procedures. The specific measures
thereof shall be formulated by the Hainan Provincial People’s Congress
and its Standing Committee.
Article 22
The state protects the investment, earnings and other legitimate rights and
interests of natural persons, legal persons, and unincorporatedorganizations in the Hainan Free Trade Port in accordance with the law,
and strengthen the protection of small and medium-sized investors.
Article 23
The state protects the intellectual property rights of natural persons,
Port in accordance with the law, and shall facilitate intellectual
property rights creation and application as well as enhance relevant
management and service capabilities, shall establish sound mechanisms
such as supervision through classified credit management and sanctions
for dishonesty in the field of intellectual property rights, and shall
punish infringement of intellectual property right in strict accordance
with the law.
Article 24
A unified, open, competitive and orderly market system shall be
shall be protected through enhancing the fundamental position of the
policies on competition, implementing a review system for fair
competition, and strengthening and improving law enforcement in
anti-monopoly and anti-unfair competition.
treatment in accordance with the law in terms of obtaining access
licensing, business operations, access to factors of production,
standard-setting, preferential policies, etc. The specific measures
thereof shall be formulated by the Hainan Provincial People’s Congress
and its Standing Committee.
Chapter IV
Fiscal and Taxation Systems
Article 25
During the establishment and development stage of the Hainan Free Trade Port,
Hainan Free Trade Port according to its actual situation and the changes
in its taxation system. The Hainan provincial authorities are
encouraged to issue local government bonds to finance project
development in the Hainan Free Trade Port within the quota approved by
the State Council. Hainan provincial authorities shall set up a
government-guided investment fund for the development of the Hainan Free
Trade Port, which is operated in a market-oriented manner.
Article 26
The Hainan Free Trade Port may independently decide to reduce or exempt the
payments to government-managed funds, or defer the collection of suchpayments in accordance with development needs, except for those related
to an ecological compensation.
Article 27
A taxation system that meets local needs shall be established for the
reform and under the principles of a simple and reasonable tax
structure, full optimization of all elements, significant reduction of
tax burden, clear revenue attribution, and balancing of revenue and
expenditure.
as the value-added tax, consumption tax, vehicle purchase tax, urban
maintenance and construction tax, and education surcharge shall be
consolidated, and sales tax shall be levied on goods and services for
retails. After island-wide special customs operations are implemented,
the taxation system shall be further simplified.
other relevant State Council departments and the Hainan provincial
authorities, shall formulate a specific plan for the simplification of
the taxation system in time.
Article 28
After island-wide special customs operations are implemented and the taxation
system is simplified, the Hainan Free Trade Port shall implementcatalogue management with respect to import dutiable products. No import
duties shall be levied on products outside the catalogue entering the
Hainan Free Trade Port. The catalogue of import dutiable products shall
be produced by the department of finance under the State Council in
conjunction with other relevant State Council departments and the Hainan
provincial authorities.
import consumption tax on certain imported goods shall be exempted.
Article 29
Import duties shall be levied on goods entering China's mainland from the
shall be exempted for goods produced by the enterprises in encouraged
industries if such goods do not incorporate imported materials and parts
or if they incorporate imported materials and parts but are processed
in the Hainan Free Trade Port and their value increases by a specific
percentage as a result. The specific measures thereof shall be
formulated by the relevant departments under the State Council in
conjunction with the Hainan provincial authorities.
Hainan Free Trade Port from China's mainland shall be rebated in
accordance with the relevant regulations of the State Council.
that are purchased and taken delivery of by tourists when departing from
the island in accordance with relevant regulations. After island-wide
special customs operations are implemented and the taxation system is
simplified, the tax administration measures for goods moving between the
Hainan Free Trade Port and China's mainland shall be formulated by the
relevant departments under the State Council in conjunction with the
Hainan provincial authorities.
Article 30
Preferential enterprise income tax treatment shall be granted to eligible
tax preference shall be given to eligible individuals in the Hainan Free
Trade Port.
Article 31
A sound, efficient and unified system for tax collection and
Hainan Free Trade Port, which provides effective, informatized,
international-standard-meeting, and easy-to-access services. The Hainan
Free Trade Port shall actively participate in international cooperation
in the area of tax collection and administration, improve the standard
for and efficiency of tax collection and administration as well as
related services, and protect the legitimate rights and interests of
taxpayers.
Chapter V
Eco-environmental Protection
Article 32
Improvements shall be made to the eco-environmental assessment and monitoring system of the Hainan Free Trade Port and an eco-environmental access list be
Improvements shall be made to the property rights system for natural
resources and the system of paid use of natural resources of the Hainan
Free Trade Port to promote economical and efficient resource use.
Article 33
The establishment of spacial planning system for the Hainan Free Trade Port
shall be accelerated, under which tailored regulatory and controlmeasures for different uses of natural ecological space shall be
adopted, redlines for ecological conservation be strictly observed, a
system of protected natural areas mainly consisting of national parks be
formed, and green urbanization and the development of a beautiful
countryside be promoted.
protected, and sound interregional mechanisms for ecosystem protection
and restoration and for pollution prevention and control based on
land-marine coordination shall be established.
Article 34
The Hainan Free Trade Port shall adopt a stricter environmental-safety-related entry management system, strengthen inspection and quarantine capacity building, prevent the invasion of alien species, and prohibit the import of solid waste from abroad. The Hainan Free Trade Port shall improve its capacity for the treatment and disposal of hazardous waste such as medical waste, enhance its capacity for emergency preparedness and response to eco-environmental emergencies, and strengthen ecological risk prevention and control.
Article 35
A sustainable market-oriented compensation mechanism for ecological
will be led by the government with the participation of enterprises and
all other sectors of society. A mechanism for realizing the value of
ecosystem products shall also be established to encourage the use of
market mechanisms to promote eco-environmental protection and achieve
sustainable development.
Article 36
The Hainan Free Trade Port shall implement an accountability system and an
targets. The rule shall be adopted that failing to achieve environmental
protection targets shall be considered the failure of the annual
assessment when the local people’s governments at or above the county
level conduct such assessments on their departments responsible for
environmental supervision and administration and the leaders of these
departments, as well as on the people’s governments at the next lower
level and their leaders.
approvals of environmental impact assessment documents for projects with
an increase in total emissions of major pollutants in these areas shall
be suspended for one year. The principal leaders of the local people’s
government responsible for these failures and of the departments in
charge of environmental supervision and administration shall not be
promoted to higher positions or transferred to important posts within
one year, and shall be given sanctions in accordance with the law.
Article 37
The Hainan Free Trade Port shall implement a lifelong accountability system
for eco-environmental damage. Where serious eco-environmental damage iscaused due to disregard of the requirements for scientific development,
the principal leaders, the persons directly in charge, and the other
persons directly responsible of the local people’s governments and their
relevant departments shall be strictly held accountable.
Chapter VI
Industrial Development and Talent Support
Article 38
The state supports the Hainan Free Trade Port in establishing an open,
developing important industries such as tourism and other modern service
industries, high-tech industries, and efficient tropical agriculture.
Article 39
The Hainan Free Trade Port shall build itself into an international tourism
and consumption center, deeply integrate tourism with culture, sports,healthcare, elderly care, and other industries, to foster new forms and
models of tourism.
Article 40
The Hainan Free Trade Port shall deepen the opening up of its modern
into an international shipping hub, promote the integrated development
of ports, industries and cities, improve the marine service
infrastructure, and build an internationally competitive marine service
system.
science, engineering, agriculture and medical science in the Hainan Free
Trade Port.
Article 41
The state supports the Hainan Free Trade Port in the development of major
management system for scientific and technological innovations and
international scientific and technological cooperation mechanisms, which
are in line with the laws of scientific research.
Article 42
A data flow management system shall be established in the Hainan Free
and convenient flow of data, to protect the data-related rights and
interests of individuals and organizations in accordance with the law,
to open up communication resources and communication services in an
orderly manner, to expand opening up in the field of data, and to
promote the development of the data-based digital economy.
Article 43
The Hainan Free Trade Port shall adopt a highly free, convenient and open
transport policy, as well as a more open shipping system and ship
management system. The Yangpu China ship registry port shall be built in
the Hainan Free Trade Port where a special ship registration system
shall be implemented. Airspace control and air route restrictions shall
be relaxed in the Hainan Free Trade Port and the allocation of traffic
rights resources shall be optimized to improve transportation
facilitation and services.
Article 44
The Hainan Free Trade Port shall deepen the reform of its talent
personnel training, and establishing scientific and reasonable
mechanisms introducing, identifying and employing talents, as well as
ensuring their benefits and welfare.
Article 45
An efficient and convenient exit and entry administration system shall be
entry policy in a wider range, extending the duration of visa-free stay,
optimizing exit and entry inspection, and facilitating exit and entry
customs clearance.
Article 46
More open policies for talents and their temporary stay and residence shall
policy for temporary exit and entry, implementation of a policy for
facilitated work visa application, application of the negative list
administration system for foreigners’ work permits, and further
improvement of the stay and residence system.
Article 47
The Hainan Free Trade Port shall relax restrictions on overseas personnel
accreditation list system for overseas professional credentials.
Chapter VII
Comprehensive Measures
Article 48
The State Council may, according to the development needs of the Hainan
conversion of agricultural land into land used for construction purposes
and the expropriation of land to the people’s government of Hainan
province, as well as the power to examine and approve the adjustment to
the layout of cultivated land, permanent basic farmland, forest land,
and land for construction purposes in the entire province under the
conditions prescribed by the state and under the premise of never
breaking the important indicators specified in spacial planning of
Hainan Province, such as the redlines for ecological protection, the
area of permanent basic farmland, the amount of cultivated land and
forest land, the total amount of land for construction purposes, and
ensuring no degradation of the quality of the said land.
development of urban areas, rural areas and reclamation areas, introduce
a new model of land for construction purposes in small towns, and
promote the capitalization of reclaimed agricultural land.
project development shall be guaranteed in accordance with the law.
Article 49
In the course of the development of the Hainan Free Trade Port, cultivated
land shall be effectively protected, land administration shall bestrengthened, and an intensive and economical land use system and the
evaluation standards thereof as well as a system for using the stock
land for construction purposes shall be established. Idle land shall be
made full use of. Where the right to use a particular lot of land is
obtained through transfer and the land is under development, if the
project has not been completed over one year after the completion date
agreed upon in the assignment contract, an idle land fee shall be
collected each year at a certain proportion of the present value of the
land assigned before the completion of the project. The specific
measures thereof shall be formulated by Hainan provincial authorities.
Article 50
The Hainan Free Trade Port shall maintain that the financial sector serves
take the lead in implementing policies to open up the financial sector.
A cross-border capital flow management system shall be established in
the Hainan Free Trade Port that adapts to the needs of high-level trade
and investment liberalization and facilitation, capital accounts shall
be opened up by stages, full currency convertibility for foreign debts
of non-financial companies shall be implemented step by step, and
facilitation of cross-border trade settlement shall be promoted, for the
furtherance of the free and convenient flow of funds between the Hainan
Free Trade Port and the overseas in an orderly manner.
Article 52
The approved financial institutions in the Hainan Free Trade Port may
specific areas.
Article 53
The Hainan Free Trade Port shall strengthen the development and application
honesty and punish dishonesty.
Article 54
The state supports the exploration of judicial reform compatible with the
commercial dispute resolution mechanisms shall be established, a
centralized trial mechanism for international commercial disputes shall
be improved, and resolution of disputes through arbitration, mediation,
and other non-litigation means shall be encouraged.
Article 55
A risk alert, prevention and control system shall be established in the
other customs surveillance zones, preventing and combating smuggling
and exercising follow-up supervision in accordance with the law. The
coast guards shall be responsible for investigating and dealing with
smuggling at sea. The people’s government of Hainan Province shall be
responsible for the overall anti-smuggling work within the province,
strengthening the control over non-customs areas, and establishing a
joint mechanism against smuggling with other regions. People, goods,
articles and means of transport that move between areas outside the
borders of China’s mainland and the Hainan Free Trade Port and between
the Hainan Free Trade Port and China’s mainland shall all enter or exit
from the port.
the Hainan Free Trade Port in accordance with the law, and security
reviews shall be conducted on foreign investments that affect or may
affect China’s national security.
people and public health in the Hainan Free Trade Port shall be
maintained through the establishment of a sound financial risk
prevention and control system, the implementation of a hierarchical
cybersecurity protection system, and the establishment of a risk
prevention and control system for the movement of people, a monitoring
and alert mechanism for infectious diseases and public health
emergencies, and a mechanism for prevention, control, and treatment in
case of an outbreak.
Chapter VIII
Supplementary Provisions
Article 56
After this Law goes into effect and before island-wide special customs
Council and its relevant departments and the Hainan provincial
authorities may formulate specific transitional measures with regard to
the matters provided for herein to advance the development of the Hainan
Free Trade Port in accordance with the principles prescribed in this
Law and in accordance with their respective duties and responsibilities.