How much huge profit is hidden in Hainan's import agency business?

When the tax-free policies of Hainan Free Trade Port were going viral on WeChat Moments, Mr. Zhang was sending a batch of Australian milk powder into the bonded warehouse through an import agency, saving 23% of the tariffs; while Ms. Li's cross-border e-commerce platform was delivering Japanese cosmetics directly to consumers' hands with the help of agency services, shortening the logistics delivery time by 5 days. It is not only a paradise for tourism but also a golden track for the import business. But how exactly can one master these rules? This article will unveil the practical strategies for Hainan's import agency business.

The "zero-tariff" list of Hainan Free Trade Port has already covered 168 items such as production equipment and means of transportation, and it will undergo a comprehensive upgrade after the whole island is closed off in 2025. Take the agency import of baby and maternity products as an example:

• Tariff Reduction: The comprehensive tax rate of some products has dropped by 40%.
• Customs Clearance Facilitation: The number of customs declaration documents has been streamlined from 11 to 3.
• Logistics Advantage: A 72-hour global air transit hub.

The inventory turnover rate of European red wine of a client of an agency company has been doubled through the bonded stocking model. This is the power of the policy leverage.

Professional agency institutions are like the "Swiss Army Knife" for the import business. Service providers such as Zhongshitong offer more than just customs clearance:

• Qualification Handling on Behalf: The cycle of 3C certification/food filing has been shortened by 60%.
• Tax Optimization: Reasonably utilize the policy of "tariff exemption for value-added through processing".
• Risk Control: Issue early warnings about the latest list of detained goods by the US FDA.

Ms. Li once had her goods returned due to not being aware of the additive standards for Japanese food. After entrusting a professional agency, similar problems never occurred again.

Seeing their peers making a fortune every day, many entrepreneurs are prone to fall into these traps:

• Misinterpreting the Scope of "Tax-free": Tax-free Shopping upon Departure from the Island ≠ Cross-border Bonded.
• Underestimating Label Rectification: Imported prepackaged foods require Chinese labels.
• Underestimating Cold Chain Costs: The storage fee at -18°C is three times that of normal temperature.

When Mr. Zhang was acting as an agent for Thai durians, the whole container of goods was detained at the port for 15 days because he didn't apply for the quarantine permit in advance, resulting in a loss of over 100,000 yuan.

According to the data of Haikou Customs, the import of medical devices in Hainan increased by 217% in 2023. These tracks are worth paying attention to:

• Medical Aesthetic Products: The quarterly import volume of Korean hydrogel injections has increased by 90% on a month-on-month basis.
• Pet Food: The customs clearance time for Canadian freeze-dried food has been compressed to 48 hours.
• Smart Home: German bathroom accessories enjoy an 8% VAT reduction.

An agency institution revealed that helping clients to set up in Hainan now is like seizing the warehousing resources in Hong Kong ten years ago.

If you are still hesitating after reading these cases, you might as well do three things first:

• Calculate the comparison of the dutiable price of the target products.
• Attend the policy briefing in Haikou Comprehensive Bonded Zone.
• Request the compliance assessment report from professional agencies.

When others are still studying the policies, the doers have already built their warehouses in the free trade port. When are you going to hop on this express train? Welcome to share your experience in the import business in the comment section.