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Practical Implementation

Mastering the 30% Rule

Achieve Zero Tariffs when entering Mainland China by adding ≥30% value in Hainan. Use the tools below to calculate your qualification and ROI.

Value-Added Simulator

Experiment with your supply chain cost structure.

Value-Added Percentage
0%
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Total Base Cost (A+B): $0
Hainan Value Add: $0

Industry-Specific ROI

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Pharma

Import APIs (6.5% tariff) → Formulate in Boao Zone. High margins (45%+) ensure easy 30% rule qualification.

🔋

EV Components

Refine Nickel/Cobalt (13% tariff) for battery supply chain security. Refining value typically adds 40-50%.

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Luxury Fashion

Semi-finished imports (20% tariff) → Monogramming & assembly in Hainan. Captures domestic demand duty-free.

Cash Flow ROI (5 Year Forecast)

Cumulative benefit for a typical $100M throughput facility.

Risk Distribution

Balancing operational feasibility with geopolitical stability.

Operational Roadmap

1

Feasibility (M1-M3)

Audit materials BOM, identify >8% tariff products, and consult Haikou Customs.

2

Pilot Phase (M6-M12)

Setup WFOE, process test batches ($100K-500K), and validate cycle times.

3

Scaling (Year 2-3)

Full throughput ramp-up, local supplier integration, and regional hub expansion.

Strategic Blueprint for Hainan FTP Implementation. 2026 Strategy Guide.