Following the first major delivery of a Sanlorenzo SX76 into Hainan in February 2022, under the recently deployed Hainan Free Trade Port Scheme, we are pleased to confirm the second order of an SX76. The yacht is due to arrive in Sanya this summer, taking advantage of this attractive scheme that exempts imported yachts from the 38% import and duty tax that is currently applicable in the rest of Mainland China.
Initially announced in 2017, Hainan has originally declared the Hainan Pilot Free Trade Zone (FTZ), then renamed Free Trade Port (FTP) starting in June 2022. New and friendly regulations for international businesses were announced, driving the global tourism industry towards Hainan as part of China’s growth master plan for the region. This plan will be fully deployed and operational by 2035, with the end goal of establishing Hainan as a global trading reference by 2050.
This announcement has been instrumental for the yachting industry over the past 1.5 years and represents significant future positive development with 12 yachts already sold by Simpson Marine into Hainan under this scheme since mid-2020. Simpson Marine is also the first company to deliver the FTP’s first yacht – a Lagoon 46 – to benefit from this new policy. The heavy-duty import taxes on foreign yachts at 38% have now been reduced to zero and that is a tremendous ownership incentive for our Chinese buyers. The yachts are now delivered to Hainan tax-free with no other duty charges applicable.
The FTP also works for visiting yachts allowing them to visit Hainan for 183 days tax-free and exempts them from paying high ticket bonds to the immigration department as was previously required.
There has been, however, a tedious registration procedure to undertake to register yachts. In the early stages, this took up to three months, requiring several steps and a substantial number of documents to be provided. That is where our on-ground expertise and the Simpson Marine team’s experience were instrumental for success.
Currently, yachts and boats fall under the category of Duty-Free Vehicles and by the end of March 2022, there have been 42 yachts imported under the FTP ranging between 6 and 24 metres.
After another government announcement in March 2022, further registration simplifications are now expected to apply from July 2022 and Simpson Marine will continue to arrange all these procedures on behalf of our clients to make their yacht purchase and delivery into Sanya, Hainan, a smooth and professionally handled operation.
If you would like to benefit from the yacht-friendly and tax-attractive import regulations in China, please contact our team on the ground at email@example.com and we will be happy to explain the process and help you find your perfect yacht.