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China: Aircraft repair industry booms in Hainan FTP thanks to favorable policies

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Shotlist Haikou City, Hainan Province, south China - Recent 1. Sign showing one-stop maintenance base 2. Various of aircraft under maintenance; workers working 3. SOUNDBITE (Chinese) Huang Tingting, director, Haikou Meilan Airport Customs (starting with shot 2/ending with shot 4): "Duty-free aviation materials and the ability to refuel with bonded fuel save approximately 10 percent to 15 percent in capital costs, giving operators a price advantage in the international market. We are currently providing 24-hour customs clearance service to ensure seamless operations." 4. Various of aircraft components; workers working 5. SOUNDBITE (Chinese) Long Wentao, director, Comprehensive Management and Enterprise Development Department, Haikou Airport Aircraft Maintenance Engineering Co., Ltd. (starting with shot 4/ending with shot 6): "Currently, we're implementing a zero-tariff positive list for raw materials and auxiliary materials. Previously, items included on this positive list qualified for duty-free treatment. After the anticipated launch of the island-wide special customs operations, we will shift to a negative list management system, which means all raw and auxiliary materials not on the list will be eligible for duty-free status. This change will significantly expand the scope of duty-free materials." 6. Various of aircrafts under maintenance 7. Aerial shot of one-stop maintenance base Storyline The aircraft repair and maintenance industry is experiencing rapid growth, driven by a series of favorable policies at the Hainan Free Trade Port (FTP) in south China's Hainan Province. This growth is particularly evident at a one-stop aircraft maintenance base within the FTP, where rows of aircraft are lined up for inspection and repair, allowing cross-border maintenance operations to proceed efficiently. Since commencing operations in 2022, this maintenance base has serviced over 2,400 aircraft, completed full-body painting for over 280 aircraft, and repaired about 60,000 aircraft components by the end of October this year, catering to nearly 50 domestic and international airlines. Under the Hainan FTP's supportive regulations, aircraft entering the region for maintenance are exempt from security deposits, and imported parts used for repair benefit from zero tariffs. The policy support is expected to expand further with the official launch of island-wide special customs operations on December 18. "Duty-free aviation materials and the ability to refuel with bonded fuel save approximately 10 percent to 15 percent in capital costs, giving operators a price advantage in the international market. We are currently providing 24-hour customs clearance service to ensure seamless operations," said Huang Tingting, director of Haikou Meilan Airport Customs. Previously, aircraft maintenance materials had to be ordered before shipment. Now, they are pre-stocked in a dedicated materials supermarket, enabling payment after use, a change that cuts average parts waiting time by two to three months. "Currently, we're implementing a zero-tariff positive list for raw materials and auxiliary materials. Previously, items included on this positive list qualified for duty-free treatment. After the anticipated launch of the island-wide special customs operations, we will shift to a negative list management system, which means all raw and auxiliary materials not on the list will be eligible for duty-free status. This change will significantly expand the scope of duty-free materials," said Long Wentao, director of the Comprehensive Management and Enterprise Development Department at Haikou Airport Aircraft Maintenance Engineering Co., Ltd. [Restrictions: No access Chinese mainland]

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