For example: After Hainan implements closed customs clearance, assembling imported ClubCar golf carts in Hainan can reduce costs by leveraging the free trade port’s core policies of zero tariffs and tariff exemption for processing and value-added.
1.Tax Incentives for Imported Components
Core components of imported ClubCar golf carts (such as motors, batteries, frames, etc.) can enjoy the zero-tariff policy, exempt from import duties, value-added tax (VAT), and consumption tax. This directly reduces the raw material costs in the assembly process, lowering the overall vehicle assembly cost by approximately 18% to 20%.
2.Tariff Exemption Policy for Processing and Value-Added
If the assembled golf carts are sold to mainland China, as long as the processing and value-added portion in Hainan reaches or exceeds 30%, import duties will be exempted, and only VAT and consumption tax need to be paid. For example, if imported components cost 1 million yuan and the assembled vehicle’s value reaches over 1.3 million yuan, this preference can be enjoyed.
3.Enterprise Qualifications and Supervision Requirements
Enterprises must be registered in Hainan with independent legal person status. If the assembled vehicles are used for tourism or transportation, they can apply for eligibility to enjoy “zero-tariff” imports of whole vehicles/components.
The “zero-tariff” components used for assembly are subject to a 3-year customs supervision period, after which they can be disposed of freely. If the vehicles are improperly diverted for other purposes in violation of regulations, the overdue taxes must be paid and penalties incurred.
4.Circulation Rules Within Hainan Island and Mainland China
Assembled golf carts can circulate freely within Hainan Island without the need to pay supplementary taxes.
