On June 1, the first tariff exemption under the Hainan Free Trade Port (FTP)’s import tariff exemption policy for products with no less than 30% added value after processing in the specialty vehicle sector was officially granted.

Hezhili (Hainan) Automobile Co., Ltd. imported vehicles and converted them into ambulances, achieving a value-added rate of over 30%. The vehicles were then sold to Guangdong via Hainan’s “second-line” ports, with import tariffs completely exempted. This represented the first successful application of a core Hainan FTP policy in the automotive manufacturing sector.

The first batch of pilot enterprises includes three companies that specialize in producing high-value specialty vehicles, including ambulances, fire trucks, and recreational vehicles (RVs).

The Hezhili-branded ambulance in this initial case completed essential steps in Hainan, such as product design, vehicle conversion, testing, and certification. It complied with national standards, gained market access qualifications, and met the value-added requirements specified by the policy.

By leveraging the Hainan FTP’s value-added processing policy, companies can significantly cut production and financing expenses. This enables them to allocate more resources to R&D in areas such as smart technologies, new energy solutions, and lightweight vehicle design, thereby speeding up their transition to higher-end products.