Translator：Zhang Xiaotong

The "Law of the People's Republic of China on Hainan Free Trade Port" was promulgated and implemented on June 10, 2021. This law clearly outlines the policy orientation and institutional construction for building the Hainan Free Trade Port, making basic provisions around the liberalization and facilitation of trade and investment. The plan of Hainan Free Trade Port’s “closure” has now been put on the agenda. At that time, significant changes will occur in the systems related to the circulation of goods and tax collection between overseas and the Hainan Free Trade Port, as well as between the mainland and the Hainan Free Trade Port. Enterprises will face various customs clearance risks, requiring urgent attention.

On the afternoon of October 13, 2023, Sun Guodong, Director and Senior Partner of Shanghai Landing (Shenzhen) Law Offices, was invited by the China Council for the Promotion of International Trade (CCPIT) Legal Affairs Department and the CCPIT Hainan Provincial Committee to serve as the expert lecturer for the online training session on "Foreign Trade Compliance and Legal Risk Prevention in the New Situation." Sun Guodong focused on the theme of "Customs Clearance Risks for Import and Export Goods after the Closure of Hainan Free Trade Port," delivering a brilliant course based on his professional experience and research results.

At the beginning of the lecture, Sun provided an exposition on the legal status of Hainan Free Trade Port after the “closure”. He pointed out that, in terms of openness, the overall openness of Hainan Free Trade Port after the “closure” is greater than that of comprehensive bonded zones and less than that of independent customs zones.

Regarding the overall changes in port settings and cargo supervision after the “closure” of Hainan Free Trade Port, Sun stated: After the “closure”, in terms of port settings, Hainan Free Trade Port will have ports for both overseas and the mainland. In terms of cargo supervision, there will be a relaxation in the management of goods circulation between overseas and a strengthening of the management of goods circulation with the mainland.

Subsequently, Sun provided a detailed introduction to the specific policies for goods clearance between Hainan Free Trade Port and overseas, and between Hainan Free Trade Port and the mainland, after the “closure”. Overall, a "liberal on the first line, strict on the second line" policy will be adopted, making differential treatments on issues related to cargo supervision and taxation between overseas and the mainland.

In the final part of the lecture, Sun focused on illustrating the potential cargo clearance risks that enterprises may face after the “closure” of Hainan Free Trade Port. He presented 11 clearance risks, including risks related to inaccurate declaration, customs price inquiries, product classification inquiries, origin inquiries, customs detention, identification of solid waste, tariff arrears, product inspections, trade control, product access, and intellectual property infringement. Through actual cases, he highlighted the issues and indicated the three essential elements for effective risk prevention: advance planning, truthful declaration, and active cooperation.

Sun Guodong, based on legal provisions and relying on vivid case examples, provided an insightful interpretation of the policies and regulations related to cargo clearance in Hainan Free Trade Port, analyzed clearance risks, indicated preventive factors, and concluded the lecture successfully.