A Zhejiang-funded enterprise became one of the earliest beneficiaries of island-wide special customs operations at the Hainan Free Trade Port, as a batch of processed goods cleared customs under a key tax incentive policy on Dec 18, 2025.

At midnight, Danzhou Weida Chemical Co Ltd declared a shipment of containerized bulk bag products valued at about 250,000 yuan (about $35,820). The shipment was the first batch of goods to qualify for duty-free treatment under the processing value-added tax exemption policy following the launch of island-wide special customs operations at the Hainan Free Trade Port.

Mei Shanwang, chairman of Weida Chemical and a Zhejiang native, said he felt honored to witness what he described as a historic moment.

The processing value-added tax exemption is a core tax policy of the Hainan Free Trade Port under the framework of "free flow through the first front and efficient control at the second front".

According to the company, it procures about 16,000 metric tons of polypropylene annually in Hainan. With raw material prices at around 6,000 yuan per ton and an import tariff rate of 6.5 percent, the tax exemption reduces costs by about 400 yuan per ton, translating into annual savings of roughly 6 million yuan.

Mei said the company plans to further leverage the policy advantages to expand its business into the Chinese mainland, as Hainan's special customs operations create new momentum for manufacturing and trade-oriented enterprises.