For foreign investors holding stable access to raw materials—such as high-quality blueberries from South America or premium fish stocks from Southeast Asia—the Hainan Free Trade Port (FTP) offers a revolutionary gateway into the China Mainland market.
As the most ambitious "Open Door" project in China’s history, Hainan provides a unique regulatory framework that allows foreign enterprises to bypass traditional tariff barriers while building a premium "Made in China" brand.
The "Golden Rule": The 30% Value-Added Processing Policy
The most critical incentive for foreign manufacturers is the Value-added Processing (VAP) Policy.
How it Works:
If you import raw materials from overseas into Hainan’s designated industrial parks (like the Yangpu Economic Development Zone), perform "substantial processing," and increase the value of the product by 30% or more, the finished product can be sold to Mainland China exempt from import tariffs.
Case Studies for Foreign Investors:
1. Premium Blueberries: From Raw Fruit to Superfood Brands
The Workflow: Import frozen or fresh blueberries (Tariff: ~12-30% depending on origin) into Hainan.
Processing: Convert them into high-end blueberry jam, dried snacks, or nutraceutical powder.
The Advantage: Since the processing labor, packaging, and technology easily exceed the 30% value-added threshold, you can ship these products to Tier-1 cities like Shanghai or Beijing with zero tariffs.
Legal Tip: At, we assist clients in filing the "VAP Certification" with Hainan Customs to ensure your processing formula meets the strict 30% calculation requirements.
2. Canned Fish & Seafood: Premium Canned Goods
The Workflow: Import raw tuna or salmon from international waters into Hainan.
Processing: Canning, specialized smoking, or sous-vide preparation using proprietary seasonings.
The Advantage: Seafood import duties in China can be high. By utilizing Hainan’s bonded status, your capital isn't tied up in "Import VAT" and duties until the final product enters the Mainland.
Key Benefits for Foreign-Invested Enterprises (FIEs)
1. The "15% + 15%" Tax Incentive
Hainan offers a globally competitive tax regime that rivals Singapore and Hong Kong:
Corporate Income Tax (CIT): Capped at 15% for "encouraged" industries (including advanced food processing).
Individual Income Tax (IIT): Capped at 15% for high-end and urgently needed talent. This is vital for foreign firms bringing in expert food scientists or plant managers.
2. Zero Tariffs on Equipment
Foreign investors can import production lines, specialized blueberry sorting machines, or canning automation equipment duty-free for their own use in Hainan.
3. Simplified Brand Registration
By processing in Hainan, your brand carries the "Hainan, China" origin label. This allows you to leverage the sophisticated logistics of the "Master Plan" while positioning your brand as an "International Standard, Local Origin" product, which is highly trusted by Chinese middle-class consumers.
Legal Roadmap: How to Utilize the Policy Safely
Starting a food processing venture in a foreign jurisdiction involves complex compliance layers. To successfully navigate the Hainan FTP, foreign investors should follow these steps:
Step 1: Corporate Structuring
Establish a Wholly Foreign-Owned Enterprise (WFOE) in Hainan. Choosing the right "Industrial Park" is essential, as VAP policies are currently prioritized in specific zones like Yangpu or Haikou Integrated Free Trade Zone.
Step 2: Intellectual Property (IP) Protection
Before importing your proprietary blueberry processing technology or fish-canning recipes, you must register your trademarks and patents within China.
Consultfor a comprehensive IP audit to prevent "trademark squatting" before your brand hits the Mainland shelves.
Step 3: Customs and VAP Filing
Customs authorities require a detailed breakdown of costs (labor, raw materials, utility, overhead) to verify the 30% value-added claim.
Step 4: Food Safety & Labeling Compliance
Selling to Mainland China requires strict adherence to GB Standards (Guobiao). Your packaging must comply with Chinese labeling laws regarding nutrition facts and origin.
Why You Need Professional Legal Counsel
The Hainan FTP is a rapidly evolving legal landscape. While the opportunities are immense, the administrative requirements for duty exemptions and "Zero-Tariff" lists require precise legal documentation.
At , we specialize in:
FIE Registration: Seamlessly setting up your Hainan-based manufacturing entity.
Compliance Consulting: Navigating China’s food safety regulations and Customs VAP filings.
Contract Law: Drafting distribution agreements for your entry into the Mainland market.
Ready to capture the China market through the Hainan gateway? Visittoday for a consultation on your Hainan investment strategy.
SEO Keywords: Hainan Free Trade Port lawyer, China food processing law, 30% value-added processing Hainan, foreign investment China, blueberry import China, duty-free manufacturing Hainan.
inquiry@hirelawfirm.cn
