In a significant move to deepen economic integration between Macao and mainland China, the island of Hengqin in south China’s Guangdong Province has lifted tariffs on most goods imported from the neighboring Macao Special Administrative Region (SAR). The new customs operation, which came into effect at midnight on Friday, allows for tax-free movement of goods from Macao to Hengqin.
The Guangdong-Macao In-depth Cooperation Zone in Hengqin, located in the city of Zhuhai, spans 106 square kilometers and sits strategically between Macao and the Chinese mainland. The tariff exemption is expected to facilitate the flow of goods, personnel, capital, and information between Hengqin and Macao, fostering closer ties and economic collaboration.
“The new policy will effectively facilitate the flow of goods, personnel, capital, and information between Hengqin and Macao, and create valuable new space for Macao’s new industries and business forms,” said Li Weinong, director of the zone’s executive committee.
Under the new mechanism, while goods entering Hengqin from Macao are generally exempt from tariffs, goods moving from Hengqin to the Chinese mainland will be subject to import duties unless they qualify for value-added tax exemptions. Similar tax exemptions apply to luggage and parcels entering Hengqin from Macao, enhancing convenience for travelers and businesses alike.
The policy is seen as a major step in enriching the practice of the “one country, two systems” principle in Macao and accelerating the SAR’s economic diversification. In 2021, China’s central authorities initiated the development of the Guangdong-Macao In-depth Cooperation Zone in Hengqin to create a new growth engine for Macao’s economy.
By the end of 2023, Hengqin had become home to over 11,500 Macao residents working or living on the island, marking an annual increase of more than 70 percent, according to the zone’s statistics bureau. The removal of tariffs is expected to further attract businesses and talent from Macao, promoting sustainable economic growth in the region.
