China has introduced a new policy allowing eligible medical and research institutions in the Hainan Free Trade Port (HFTP) to import certain drugs and medical devices free from import duties and VAT, enhancing access to advanced healthcare resources within the region.
Key Provisions of the "Zero Import Tax" Policy
Eligibility for Tax Exemption
Recognised medical institutions, tertiary medical schools, and healthcare research institutions with legal person status and registered in the Bo’ao HOPE City of China’s HFTP are eligible for import duty and VAT exemptions on qualified drugs and medical devices.
Definition of Qualified Drugs and Medical Devices
Qualified imports include drugs and medical devices that have already been approved for registration in China.
The policy also covers imported drugs (excluding vaccines) and medical devices that are not yet registered in China but have been authorised for use in HOPE City by the Hainan government.
Usage Restrictions
Drugs and medical devices imported under China’s tax-free policy by medical schools and research institutions must be used exclusively within HOPE City.
In cases where a transfer of these tax-exempt items is necessary due to specific circumstances, institutions must report the transfer to Hainan’s drug supervision and health authorities and pay the applicable import duties and VAT.
Prohibition on Individual Transfers
Tax-free imported drugs and medical devices cannot be transferred to individuals. However, they may be sold to patients who physically visit medical institutions within HOPE City and receive prescriptions from registered doctors.
Patients must use these items within HOPE City and are not permitted to resell, take, or ship them outside of HOPE City.
This policy aims to make advanced healthcare treatments more accessible within China’s HFTP, fostering a specialised medical ecosystem in HOPE City and supporting medical research and innovation across China.
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