China on Thursday launched island-wide special customs operations in the Hainan Free Trade Port — the world’s largest by area, Xinhua reported. The Hainan customs zone will implement a “two-line” tariff system, which will exempt 74% of goods entering Hainan from abroad (via the “first line”) from import duties, value-added tax, and consumption tax. These goods may circulate freely within the province. However, if shipped to other parts of China (through the “second line”), they will be subject to standard import tariffs and taxes — unless they undergo substantial processing locally, with at least 30% value added in Hainan qualifying them for tariff-free entry into the mainland