Hainan 101: FTP and Special Customs Unpacked | Why is it so efficient?

After our first episode, you now know what the Hainan Free Trade Port (FTP) and special customs operations are. Great! But what exactly makes these customs operations "special"? Let us explain.

Starting Dec. 18, 2025, Hainan's customs system will operate under a "first line" and a "second line."

The first line connects the Hainan FTP with the rest of the world. Here, customs will implement a series of measures that make entry and exit highly free and convenient. Once goods enter Hainan through the first line, they can move freely across the entire island.

The second line separates Hainan from the rest of the Chinese mainland. It provides efficient control and precise regulation for goods heading into the mainland. This adds an additional layer of security that matches the high level of openness found in the first line. But "control" does not mean "barrier." Logistics and smart systems ensure speed and transparency, and policies such as tax exemptions for value-added processing on the island mean that businesses can still gain significant advantages even if their final market is not Hainan itself.

Join us for Episode 2 as we explore the ports, technologies, and systems that power special customs operations. We will speak with experts and see how these policies and logistical frameworks are preparing Hainan for its next step toward becoming a model of openness to the world.