Analysis of the Impact of Hainan's Customs Closure Policy on Merchandise Trade-Taking Cosmetic Products as an Example

Abstract

Hainan's customs policy ("open at the first line, control at the second line, freedom within the island") represents a significant opening-up initiative in China. This paper examines its impact on commodity trade using cosmetics as a case study, focusing on three dimensions: trade patterns, market structure, and corporate strategies. In terms of trade patterns, the policy significantly accelerates customs clearance, while "zero tariffs" reduce trade costs, helping enterprises boost profits. Regarding market structure, foreign companies are establishing bonded warehouses and duty-free stores in Hainan, fostering healthy competition and offering new processing solutions for domestic and international cosmetics firms. Concerning corporate strategies, the policy provides greater flexibility for price adjustments, enabling enterprises to optimize supply chains, increase R&D and design investments, and strategically lower prices to enhance competitiveness. Research indicates that the closed-border policy presents opportunities for the cosmetics market, including simplified trade models and diversified market structures. However, policy uncertainties also carry risks such as intensified competition and increased compliance costs. In response, enterprises must seize opportunities while proactively mitigating risks, while the government should refine institutional frameworks and regulatory systems to jointly advance high-quality development in the cosmetics sector. This paper aims to provide reference for cosmetics enterprises navigating the closed-border policy, clarifying its opportunities and risks to assist businesses in timely adaptation.