According to the Overall Plan for the Construction of Hainan Free Trade Port, Hainan Free Trade Port aims to establish a special customs supervision area for island wide customs operation, implement a liberalization and facilitation system arrangement for goods trade with the basic feature of "zero tariffs", and implement a policy system with the basic features of "opening up the first line", "controlling the second line", and freedom within the island ". The operation of closing off the entire island is a landmark project in the construction of Hainan Free Trade Port. In the current complex and severe international economic environment, it demonstrates China's firm determination to actively expand high-level opening up to the outside world and promote the development of global trade and investment cooperation. A free trade zone (port) established within a country (region) is an important component of the international free trade system. The design of the Hainan Free Trade Port system fully draws on the management experience of international mature free trade zones (ports) such as Singapore and Dubai. The establishment of a special regional customs supervision system for the Hainan Free Trade Port, which operates as a closed island, is similar to most international free trade zones (ports) in terms of tariff policies. However, it should be pointed out that Hainan Free Trade Port is not a separate tariff zone, which is the biggest difference between it and free trade ports such as Singapore established based on separate tariff zones. One of the specific manifestations is the need to establish a "second line" between Hainan Free Trade Port and the mainland. An important innovation in the construction of Hainan Free Trade Port is to create an open form that includes cities, rural areas, and permanent residents, covering a wider range of fields such as international trade, investment, finance, transportation, personnel exchanges, and data flow. The task of managing the "second line" is even more complex and arduous. As a relatively independent geographical unit, Hainan Island's island features provide natural physical isolation conditions for implementing bonded policies and customs supervision, becoming a unique advantage for Hainan's island wide customs operation and building a high-level free trade port covering a vast area of the island. As the world's largest free trade port, managing the "second line" well under the high-level opening conditions of the "first line" will become an important contribution to the construction of Hainan Free Trade Port in the theoretical, regulatory, and practical fields of the world free trade area (port). In December of this year, Hainan Free Trade Port will enter a closed operation, marking a new height of China's high-level opening-up to the outside world. In the future, the construction of Hainan Free Trade Port with high standards requires grasping the following key tasks. Firstly, continuously increase the institutional openness of the modern service industry. Expanding the opening up of modern service industry is a key strategy for Hainan Free Trade Port to enhance its pillar industry's global influence, and it is also a necessary measure to accelerate the cultivation of new international competitive advantages in service trade. In order to support the docking of Hainan Free Trade Port with international high standard economic and trade rules, and to carry out pilot measures for service industry access opening and service trade liberalization, the country has successively released the negative list for foreign investment access and the negative list for cross-border service trade in Hainan Free Trade Port. Hainan's degree of openness is at the leading level in the country. After the closure operation, continuously optimizing the negative list management will become an important symbol for the free trade port system to move from initial formation to maturity. Suggest benchmarking international high standard economic and trade agreements, gradually reducing the negative lists for investment access and service trade access, and promoting the integration of the negative lists for investment access, service trade, and market access. In addition, we need to increase reform efforts in the "post border" institutional opening-up areas involving intellectual property, competition policy, environmental standards, and so on. Comprehensively clean up and adjust the market access rules that have been issued and implemented, effectively solve the problem of "no admission for business" in service trade, improve the policy transparency of relevant licenses, qualifications, and technical standards, and reduce the application time and cost of business licenses and qualifications. Secondly, gradually improve the level of liberalization in the "front line" of opening up. In order to achieve higher levels of liberalization of goods trade while retaining tariffs and non-tariff measures on some imported goods, and to ensure overall stability of the local and domestic markets in Hainan, it is necessary to scientifically deploy and gradually optimize the policies of "frontline" liberalization. After the closure of Hainan Free Trade Port, the scope of "zero tariff" goods will be expanded from 1900 tax items to about 6600 tax items, which means that the imported goods included in the tax catalog and special management measures list will be reduced to less than 26%, and the level of trade liberalization will be raised to a new height. It is suggested to gradually compress and optimize the two categories of catalogs in stages by benchmarking the rules of international high-level free trade agreements and the successful experience accumulated by China in the field of signing free trade agreements. Thirdly, we will continue to strengthen the innovation of "second-line" regulatory policies. After the closure of Hainan Free Trade Port, it is necessary to prevent a large number of "zero tariff" imported goods from flowing into the mainland and impacting the market, while ensuring smooth flow of goods and personnel between the mainland and Hainan, and closer and more convenient economic ties. Coordinating the relationship between the two is an important principle for achieving high-level opening up of the "first line" and efficient management of the "second line". The customs department has made corresponding preparations to cope with the complex situation, and formulated efficient supervision plans based on the classification of goods and credit ratings of business entities, as well as the use of smart supervision such as big data and blockchain. With the continuous improvement of the level of "frontline" opening up and the continuous expansion of the flow of goods and personnel between Hainan Free Trade Port and the mainland, it is recommended to strengthen regulatory policy innovation in the following areas and further improve the level of customs clearance facilitation. One is to draw on the origin management regulations of the Regional Comprehensive Economic Partnership Agreement and implement a system of enterprise self declaration of origin management for Hainan goods entering the mainland after leaving the island, in order to reduce the declaration time and cost of duty-free policies for self-produced or processed value-added products with a value of more than 30%; Secondly, we will strengthen policy support and guarantee for efficient supervision of "second tier" ports, and include Hainan Free Trade Port in the scope of integrated reform of mainland customs supervision and clearance, endowing it with the same bonded transit function as the comprehensive bonded zone. This is not only beneficial for extending the "second-line" port function of Hainan's local goods leaving the island to the mainland customs supervision zone, avoiding the pressure of centralized declaration of goods leaving the island, but also for strengthening the construction of cross island bonded channels between Hainan and port areas such as Zhanjiang in Guangdong, providing convenient channels for goods entering and leaving the island. Fourthly, we will solidly promote the reform of the supporting tax system. Zero tariff, low tax rate, and simplified tax system "is one of the core policies in the free trade port system, which has attracted the attention of enterprises and all sectors of society. It plays an important role in improving and enhancing investor expectations, and enhancing the attractiveness to domestic and foreign enterprises and high-end talents. It is suggested to further accelerate the optimization pace of the "zero tariff" policy, gradually expand the benefits of the income tax policy, clarify the timetable for tax consolidation and implementation of sales tax based on research and pilot projects, and guide market expectations to continue to improve. Zhao Jinping, Vice President of the China Association for Trade in Services and former Minister and Researcher of the Department of Foreign Economic Research at the Development Research Center of the State Council