In early July, Qilu Pharmaceutical (Hainan) Co., Ltd. completed the application and filing of a drug. The chairman of the company, Liu Wenmin, introduced that "if the audit is successfully passed, this will be our third product that can enjoy the 'processing value-added over 30% tariff free' policy." The 'processing value-added over 30% tariff free' policy is making more and more enterprises in Hainan Free Trade Port reduce costs and increase efficiency. The Overall Plan for the Construction of Hainan Free Trade Port clearly stipulates the establishment of a "second line" between Hainan Free Trade Port and other areas within the customs territory of the People's Republic of China (hereinafter referred to as the "mainland"). When goods enter the mainland from Hainan Free Trade Port, relevant procedures should be handled according to import regulations, and tariffs and import taxes should be levied in accordance with regulations. For goods produced by encouraged industrial enterprises that do not include imported materials or have imported materials processed at Hainan Free Trade Port with a value-added of more than 30% (inclusive), they will be exempt from import tariffs and subject to import value-added tax and consumption tax in accordance with regulations when entering the mainland through the "second line". This policy, which has attracted the attention of business entities, has quickly landed in Hainan, which was born and prospered due to the reform and opening up. Qilu Pharmaceutical (Hainan) Co., Ltd. is the first pilot enterprise in the pharmaceutical industry in Hainan. At that time, Liu Wenmin and his colleagues selected "Oxaliplatin Injection" to try to apply for filing. "The key components of this drug need to be imported from overseas, with high tariffs, and the application of policies can effectively reduce costs." During the filing stage, there was no precedent outside the customs special supervision zone, and the Haikou High tech Zone Management Committee provided full guidance throughout the process; The ERP (Enterprise Resource Planning) system is not compatible, and functional departments come to assist with the renovation; The customs declaration process was not smooth, and Haikou Customs took the initiative to simplify procedures... One by one, the bottlenecks and pain points were resolved through communication and coordination. Last June, a research team in Hainan Province found that when entering drug information at Qilu Pharmaceutical (Hainan) Co., Ltd., multiple parameters such as length, width, height, gross weight, and net weight need to be filled in, which is time-consuming and laborious. On that day, functional departments such as enterprises and customs gathered together for face-to-face communication and reduced the form by nearly half. The program is getting smoother and smoother now The declaration in July this year made Liu Wenmin feel much easier. "The benefits of the policy are visible and tangible. Last year, the company's tariff costs alone were reduced by hundreds of thousands of yuan." In July 2021, the "processing value-added tax exemption of over 30%" policy was first implemented in the Yangpu Bonded Port Area of Hainan. In December 2022, the scope of application was expanded to eligible parks outside the Yangpu Bonded Port Area. In March this year, "no key parks, no customs advanced certification enterprises"... In just a few years, the reform has gone from point to surface, the policy has been promoted step by step, and the pilot projects have been amplified layer by layer. As of the end of June this year, 27 enterprises in Hainan have carried out value-added processing business, with a domestic sales value of 5.25 billion yuan and a tariff reduction of 430 million yuan. Not long ago, Liu Wenmin learned that the policy approval authority has been officially delegated to Hainan. "Previously, it required approval from relevant departments, but now it is the Hainan Provincial Government's approval and filing with departments, making the application process simpler and the review time shorter." "Accelerating the construction of Hainan Free Trade Port" was officially included in the Decision of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, and the policy of "processing value-added exceeding 30% without tariffs" has ushered in a new opportunity for further deepening and expansion. Liu Liwu, Director of the Department of Industry and Information Technology of Hainan Province, introduced that Hainan is carrying out the "Strengthening Precise Investment Promotion, Deepening the Application of Processing Value added Domestic Sales Duty free Policy" campaign. From October 2023 to present, the province has added 74 pilot enterprises for application, and the cumulative number of pilot enterprises for application has reached 112. (New Society)