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, adopted at the 29th Meeting of the Standing Committee of the Thirteenth 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

Chapter II Trade Liberalization and Facilitation

Chapter III Investment Liberalization and Facilitation

Chapter IV Fiscal and Taxation Systems

Chapter V Eco-environmental Protection

Chapter VI Industrial Development and Talent Support

Chapter VII Comprehensive Measures

Chapter VIII Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted for the purpose of building a high-standard Hainan Free Trade Port with Chinese characteristics to promote the formation of a 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 Hainan, and shall develop free trade port policies and institutions step 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.

The development and administration of the Hainan Free Trade Port shall be 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 by drawing on international experience, focusing on Hainan's strategic 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 trade and investment liberalization and facilitation, supported by the 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 ecological protection 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 Hainan Free Trade Port to coordinate the major policies and issues 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.

The state establishes an administrative system compatible with the development of the Hainan Free Trade Port and develop new regulatory models.

Hainan provincial authorities shall effectively fulfill their responsibilities 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 Trade Port, and shall support Hainan provincial authorities in 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 agencies and 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.

The state advances the reform and innovation of the administrative 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 adapt to developments in international economic and trade rules and the 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 .

The Hainan Free Trade Port regulations shall be submitted to the Standing 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.

Where the Hainan Free Trade Port regulations involve matters that shall be 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 the Hainan Free Trade Port, which features the whole-island special 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 in accordance with the law.

Article 12 The Hainan Free Trade Port shall build port infrastructure to a high standard and strengthen control over the public health and safety, 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 the supervision 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.

The lists mentioned in the preceding paragraph 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. 

Article 14 For goods entering other customs area of China (hereinafter referred to as "China's mainland") from the Hainan Free Trade Port, the relevant 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.

Goods, articles, and means of transport entering the Hainan Free Trade Port from China's mainland shall be managed in accordance with the regulations on domestic shipment.

Specific measures for the movement of goods, articles, and means of transport 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 activities in the Hainan Free Trade Port in accordance with the law. The customs shall conduct efficient supervision and administration with less intervention.

In the Hainan Free Trade Port there shall be no limits on the storage 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 facilitation with simplified process and formalities for the movement of 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 cross-border trade in services and shall implement corresponding systems 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.

The negative list for cross-border trade in services of the Hainan Free 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.