Analysis: Thoughts on the Development of Yacht Free Travel in the Shenzhen Special Economic Zone
- Archie Kwong
- 41 minutes ago
- 16 min read
The integrated development of the Guangdong-Hong-Kong-Macao Greater Bay Area (GBA) has been continuously enhanced and deepened in recent years. The scope for economic cooperation in the GBA is vast and diverse, and personnel exchanges among the three regions have become more frequent. As a high-end, fashionable, and high-value-added industry, the yacht industry integrates functions and industries such as navigation, sports, entertainment, leisure, and services, playing a unique role in promoting exchange, cooperation, and industrial upgrading within the GBA integration.
As an important coastal city in the GBA and a special economic zone of China, Shenzhen is striving towards the goal of becoming a global maritime center city. The Shenzhen Special Economic Zone has always attached great importance to the development of the yacht industry, and its industry and services started relatively early compared to other provinces and cities in China. As early as 2009, the Shenzhen Municipal Government issued the "Several Policy Measures on Accelerating the Development of the Cruise and Yacht Industry" to guide and support the industry's development. Under the current trend of GBA integration and accelerated Shenzhen-Hong Kong fusion, effectively advancing the development of the yacht industry and the "Free Travel" model in the Shenzhen Special Economic Zone requires innovative thinking and effective countermeasures.
I. The Pilot Implementation of Yacht Free Travel in the Shenzhen Special Economic Zone
The policy basis for Shenzhen's Yacht Free Travel primarily originates from the 2015 Guangdong Free Trade Zone plan. The actual pilot implementation began after several ministries, including the Ministry of Transport, jointly issued a document on June 30, 2017, agreeing in principle to Guangdong Province's "Implementation Plan for Yacht Free Travel between Guangdong, Hong Kong, and Macao in the China (Guangdong) Pilot Free Trade Zone." The pilot officially started on July 1, 2017. During the pilot process, the issue of tax and fee guarantees has consistently hindered the progress of GBA Yacht Free Travel. In March 2022, the State Council adjusted regulations specifically to provide innovative space for resolving the tax and fee guarantee issue for Shenzhen's Yacht Free Travel. The main process of the pilot implementation is as follows:
📅 Policy Timeline: Seven Years of Regulatory Evolution (2015-2022)
April 2015: The State Council issued the "Overall Plan for the China (Guangdong) Pilot Free Trade Zone," which explicitly proposed "formulating convenient measures for yacht entry and exit between Guangdong and Hong Kong, and Guangdong and Macao."
October 2015: To implement the State Council's plan, Guangdong Province released the "Implementation Plan for Yacht Free Travel between Guangdong, Hong Kong, and Macao in the Guangdong Pilot Free Trade Zone (Draft for Comments)" to solicit opinions from relevant units.
June 2017: The Ministry of Transport, Ministry of Public Security, General Administration of Customs, and General Administration of Quality Supervision, Inspection and Quarantine agreed in principle to Guangdong's plan. The long-awaited Yacht Free Travel officially set sail on July 1, 2017.
February 2019: The State Council issued the "Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area," which explicitly proposed building a "Leisure Bay." It once again called for exploring and simplifying entry and exit procedures for cruise ships, yachts, and their passengers. It urged the promotion of effective implementation of Yacht Free Travel, accelerating the improvement of hardware and software facilities, and jointly developing high-end tourism projects. It also proposed exploring the construction of an international yacht tourism free port in suitable areas.
January 2022: The National Development and Reform Commission and the Ministry of Commerce's "Opinions on Several Special Measures to Relax Market Access in Building Shenzhen into a Pilot Demonstration Area for Socialism with Chinese Characteristics" proposed optimizing the market access environment for the cruise and yacht industry. It supported Shenzhen in optimizing cruise routes in the GBA, expanding open water areas for yacht free travel, and streamlining approvals for entry and exit terminals. It also proposed piloting mutual recognition of yacht operator certificates between Shenzhen and Hong Kong and implementing a guarantee-free policy for inbound yachts under the free travel scheme. It actively supported qualified cruise companies registered in Qianhai, Shenzhen, to apply for outbound tourism business (excluding Taiwan). It also explored establishing a yacht type-inspection system to simplify the inspection of imported yachts. For new yachts that pass type inspection or imported yachts with certificates from recognized institutions, they can apply for or renew their seaworthiness certificates according to ship inspection management procedures. It supported qualified Guangdong-Hong Kong-Macao yachts to enjoy "one-time approval, multiple entries and exits" and allowed for the issuance of regular entry/exit permits valid for up to six months.
March 2022: The State Council issued the "Reply of the State Council on Agreeing to Temporarily Adjust the Implementation of Relevant Administrative Regulations in Shenzhen City." From that day until December 31, 2025, the relevant provisions of four administrative regulations were temporarily adjusted in Shenzhen, implementing a guarantee-free policy for yacht free travel within the city.
Summary: From the launch of the Guangdong Free Trade Zone plan in 2015 to the official pilot of GBA Yacht Free Travel on July 1, 2017, Shenzhen's Yacht Free Travel has been continuously exploring and advancing. In March 2022, the State Council specifically adjusted regulations for Shenzhen's yacht free travel, making the policy relatively more complete. However, can the current plan, even with the State Council's adjustments, efficiently promote yacht free travel? Further systematic thinking and innovation are still needed.
II. Interpretation of the Latest Policies for Shenzhen's Yacht Free Travel
On March 17, 2022, the State Council issued the "Reply of the State Council on Agreeing to Temporarily Adjust the Implementation of Relevant Administrative Regulations in Shenzhen City" (Guo Han [2022] No. 15, hereinafter referred to as the "Reply").
First guarantee-free policy for yacht free travel in China
The "Reply" and its annexes state that, in accordance with the "Implementation Plan for the Comprehensive Reform Pilot of Building Shenzhen into a Pilot Demonstration Area for Socialism with Chinese Characteristics (2020-2025)," the relevant provisions of four administrative regulations will be temporarily adjusted in Shenzhen from that day until December 31, 2025. These include the "Regulations of the People's Republic of China on Customs Affairs Guarantee," "Regulations of the People's Republic of China on Import and Export Duties," "Regulations of the People's Republic of China on Ship Registration," and "Regulations on the Prevention and Control of Geological Disasters." Among them, those involving yacht free travel and the shipping service industry mainly include:
Temporarily adjusting the application of Article 5, Paragraph 1, Item 2 of the "Regulations of the People's Republic of China on Customs Affairs Guarantee" and Article 42 of the "Regulations of the People's Republic of China on Import and Export Duties," to implement a guarantee-free policy for yacht free travel within Shenzhen.
Temporarily adjusting the application of Article 2, Paragraph 1, Item 2 of the "Regulations of the People's Republic of China on Ship Registration," allowing enterprises legally established in Shenzhen to register their ships for international shipping in Shenzhen, with no restrictions on the proportion of foreign investment in the enterprise.
Interpretation 1: The Main Significance of the Regulatory Adjustment for Shenzhen's Yacht Free Travel
This State Council adjustment provides a strong policy guarantee for reducing the customs clearance costs of inbound and outbound yachts in the Shenzhen Pilot Demonstration Area, improving clearance efficiency, and promoting the rapid development of the yacht industry in the GBA. After the implementation of the adjustment, government departments such as maritime affairs, customs, border inspection, and transportation in Shenzhen have done a great deal of work to actively promote and implement the relevant policies of national ministries and local governments, providing support for Shenzhen's yacht free travel.
Overall, this adjustment has two positive implications: First, the cost of yacht free travel is significantly reduced. Before the adjustment, yachts from Hong Kong and Macao, as "temporarily imported/exported goods," could temporarily be exempt from taxes, but the yacht owner or their entrusted service company had to provide a guarantee to the customs at the port of entry. This involved paying a high security deposit (similar to the yacht's dutiable tax), purchasing relevant insurance, or using other guarantee methods recognized by customs. After the adjustment, they are exempt from providing a guarantee to customs, thus saving customs clearance costs for yacht free travel in Shenzhen, which is undoubtedly a major benefit for yacht companies. Second, the customs clearance time and procedures are more convenient. The adjustment saves or eliminates the time, process, and procedures for applying for yacht entry guarantees, greatly improving the efficiency of yacht entry clearance.
Interpretation 2: The Impact of the Regulatory Adjustment on the Expansion of Shenzhen's Yacht Free Travel Services
Concurrent with the guarantee-free policy for yacht entry is the adjustment regarding the foreign investment ratio for international ship registration. After the "Reply" was issued, enterprises legally established in Shenzhen are allowed to register their ships for international shipping in Shenzhen, with no restrictions on the proportion of foreign investment.
Viewed solely from the perspective of unrestricted foreign investment in international ship registration, this policy breakthrough is not substantial, as most major free trade zones in China have already relaxed foreign investment ratios in their international ship registration policies. However, when combined with the guarantee-free policy for yacht free travel, how to integrate yacht free travel with foreign-owned yacht registration services seems to offer some innovative space for expanding high-end international shipping services under Shenzhen's yacht free travel scheme. From a certain perspective, the Shenzhen Special Economic Zone can pilot this first, attracting more foreign yacht owners to establish corresponding subsidiaries and handle ship registration within the territory, thereby attracting more foreign investment into Shenzhen's shipping industry and developing shipping services. However, the effective implementation of such combined services depends on the strength of more detailed supporting policies. Essentially, yacht free travel and ship registration are not directly related, but the combination of the two policies may provide new industry opportunities and open up new development space.
III. Thoughts on the Future Development of Yacht Free Travel in the Shenzhen Special Economic Zone
The GBA Yacht Free Travel model, from its pilot phase to the regulatory adjustments in Shenzhen, has now entered a critical period of innovative development. The Shenzhen Special Economic Zone's pilot has achieved a major breakthrough at the "point" level. How can it do better and faster at the "surface" level? The following key issues are worth considering and innovating on.
1. Accelerate the Innovation of Regulatory Concepts
Yachts have different attributes, such as being goods and means of transport. When navigating on water and entering/exiting a territory, they primarily exhibit the attribute of a means of transport; when being traded, they primarily exhibit the attribute of goods. For a long time, the entry and exit of yachts have been managed as goods, which is why customs required Hong Kong and Macao yacht owners to provide tariff guarantees for yacht free travel. The State Council's adjustment for Shenzhen is essentially a pilot relaxation of the supervision of yachts as goods upon entry and exit. There is still room for innovation in regulatory concepts. Theoretically, if yachts are supervised as means of transport upon entry and exit, there would be no issue of guarantee fees. Only when a yacht needs to be traded within the territory does its attribute as goods become apparent, and it can be freely traded after the trader pays the relevant tariffs.
Why can yachts be supervised as means of transport upon entry? The possibility of a Hong Kong or Macao yacht evading tariffs by being sold after entering the mainland without a guarantee is very low. As long as relevant departments supervise the actual owner of the yacht after entry, tax-evading sales are difficult to occur. First, Hong Kong and Macao yachts entering mainland waters are already registered in Hong Kong or Macao, and relevant documents are submitted to the joint inspection unit for verification during entry procedures, making the information relatively transparent. Second, under current regulations, Hong Kong and Macao yachts can stay in the mainland for no more than 30 days, with a maximum of two extensions, totaling no more than 90 days. The process requires frequent extension applications, incurring time and economic costs. It is recommended that regulatory authorities explore a "one-time approval, multiple entries and exits" model, establish information files and a "blacklist/whitelist" system for yachts and their owners, and track and evaluate the status of foreign yachts during their stay in domestic waters to make yacht free travel more convenient. Third, even if a Hong Kong or Macao yacht is to be traded in the mainland, the mainland buyer needs to complete relevant ship registration procedures and submit the ship's original documents, sales contract, etc., to maritime and other relevant departments. Customs can obtain the yacht's original information from the maritime department, and with smooth information flow, the possibility of buyers and sellers evading tariffs is extremely low. Fourth, by increasing technological investment in the safety supervision of yacht entry and exit, improving informatization levels, and achieving intelligent monitoring, various risks can be controlled, and full-process monitoring of entry and exit can be achieved.
2. Enrich Yacht Service Types
Objectively speaking, the current GBA Yacht Free Travel mainly provides new activity areas for yachts from Hong Kong and Macao. The yacht industry in Hong Kong and Macao is very mature, with abundant supporting industry services and resources. The mainland still has significant room for development in the yacht industry and related services. Compared to Hong Kong and Macao, Shenzhen has ample yacht berths and lower economic costs, which creates opportunities for Hong Kong and Macao yachts to sail and berth in Shenzhen. For example, the berthing fees at Shenzhen's marinas are about 30% lower than in Hong Kong, and yacht maintenance and labor costs are about half. However, due to the current lack of unique commercial yacht service types and insufficient supporting services and entertainment facilities in Shenzhen, yacht free travel is currently dominated by business entertainment, and the appeal of "self-driving" tourism is greatly diminished. Therefore, it is recommended to accelerate the enrichment of yacht service types. First, enhance supporting yacht services and the development of tourism project resources, and explore tourism service resources for Hong Kong and Macao yachts in the GBA from multiple perspectives. Second, Shenzhen should leverage its role as a pilot demonstration area to expand supporting services such as shopping, high-end hotels, leisure and entertainment, yacht exhibitions, and yacht maintenance on the basis of the GBA Yacht Free Travel model, preparing Shenzhen to enhance its value-added yacht services.
3. Coordinate Yacht Industry Development
The GBA Yacht Free Travel is essentially an exploration of a new government regulatory model under the "One Country, Two Systems" framework and a pioneering example of deep cooperation among Guangdong, Hong Kong, and Macao. While the current GBA Yacht Free Travel aims to solve the problem of shared water space for yacht navigation, it is more important and meaningful to promote the integrated development of the GBA yacht industry. Under the trend of GBA integration, the coordinated development and integrated planning of the yacht industry should take the lead. It is necessary to accelerate the formulation of an integrated development plan for the GBA yacht industry with a grand vision of "large region, large industry, large service, large platform, large market." This will provide a planning blueprint and development path for the development of yacht manufacturing, yacht leisure tourism, yacht exhibitions and expos, and related derivative services in the GBA, creating bases and service centers for yacht design and manufacturing, yacht leisure tourism, international yacht expo and trading, and high-end international yacht services.
4. Expand the Yacht Free Travel Market.
The author believes that as a special economic zone and a pilot demonstration area, it is very necessary for Shenzhen to leverage its pioneering mechanisms and functions to promote the sustainable development of yacht free travel. From a sustainable development perspective, Shenzhen's yacht free travel can be carried out in phases and advanced steadily, i.e., pilot the GBA Yacht Free Travel first, then promote other international yacht free travel. The current GBA Yacht Free Travel is the first step. By allowing yachts from Hong Kong and Macao to travel freely in Shenzhen waters, corresponding experience in regulatory models, industrial plans, and high-end services can be accumulated, achieving the development of yacht free travel among the three regions. Subsequently, based on the rich experience accumulated, the Shenzhen Special Economic Zone can continue to pilot and, according to development needs and specific situations, gradu
ally explore yacht free travel projects for Taiwan Province of China and foreign-flagged yachts in the future, providing a demonstration for other regions in the country. That is, after the GBA Yacht Free Travel has matured and formed a regular mechanism, and relevant conditions are met, explore various international yacht free travel models to Shenzhen. Shenzhen can leverage its function as a pilot demonstration area to pilot various projects for international yachts, such as navigation, tourism, and supporting services, creating opportunities and accumulating experience for the sustainable development of China's future high-end yacht industry.
5. Cultivate High-End Yacht Services.
The current focus of yacht free travel is on solving the convenience of "travel." How to develop the high-end services behind yacht free travel also needs to be highly valued by government departments and the industry. Yacht berthing only brings partial revenue from berthing fees; it is more meaningful to enhance the value-added services of yacht free travel. The general idea is: innovate "Free Travel +" high-end services and provide corresponding supporting service guarantees. First, actively innovate "Free Travel +" service models. For example, promote service innovations such as "Free Travel + Registration + Financing," "Free Travel + Registration + Management," "Free Travel + Registration + Trading," and "Free Travel + Registration + Others." Second, provide supporting guarantees for the above service innovations. For example, the State Council's adjustment to the ship registration regulations in Shenzhen this March allows enterprises legally established in Shenzhen to register their ships for international shipping in Shenzhen, with no restrictions on the proportion of foreign investment. How to combine yacht free travel with registration under this adjustment still requires clarification of the quality, specifications, and relevant procedures for the registered yachts. For another example, if a yacht needs to be traded within the territory after free travel, supporting tax payment measures need to be in place, especially bonded measures before the transaction. Shenzhen's corresponding comprehensive bonded zones need to be equipped with sufficient bonded yacht storage sites and services to provide guarantee services for the convenience of domestic yacht trading.
6. Introduce Yacht Management Regulations.
In summary, the innovation of the regulatory concept for yacht free travel needs legal guarantees. It is recommended to introduce special international yacht safety management regulations to escort yacht free travel. Hong Kong and Macao are free ports, where commercial cargo ships, cruise ships, and yachts can enter and exit freely. For mainland China, international yachts are still a relatively new thing, and how to regulate them is still worth exploring. Essentially, international yachts have multiple attributes. For example, when navigating on water and entering/exiting a territory, they primarily exhibit the attribute of a means of transport; in the trading process, they primarily exhibit the attribute of goods; when berthed at a marina, they also exhibit the attribute of entertainment facilities to a certain extent. Simply regulating them according to the mainland's current regulations for goods or ships will inevitably have inconveniences or unsuitable aspects. It is very necessary and significant to introduce special yacht safety management regulations. For the entry and exit of yachts from Hong Kong, Macao, and other foreign territories, the most effective method is to introduce special foreign yacht safety management regulations. For Hong Kong and Macao yachts, more convenient measures can be considered to promote the rapid development of GBA Yacht Free Travel and accumulate management experience for the future development of the international yacht industry and services in mainland China.
Author Profiles
Zeng Zhuoxian (Captain Joe Tsang): Male, from Hong Kong, China. Graduate of Plymouth University, UK. British Merchant Marine Captain with over forty years of experience in the maritime industry. Former positions include Principal Marine Officer at the Hong Kong Marine Department and Marine Consultant at the Airport Authority Hong Kong.
Chen Jihong: Male, from Huanggang, Hubei. Full-time distinguished professor and doctoral supervisor at Shenzhen University; Dean of the Shenzhen International Maritime Research Institute; Editor-in-Chief of the international ocean journal Ocean & Coastal Management; consultant for World Bank port projects; member of the China Association for Science and Technology's UN Consultative Committee on Transportation and Sustainable Infrastructure; expert on the expert committee of the Shenzhen Global Ocean Center City Promotion Association.
Yang Dong: Male, from Guiyang, Guizhou. Associate Professor and Deputy Head of the Department of Logistics and Maritime Studies at The Hong Kong Polytechnic University, doctoral supervisor. Deputy Director of the Shipping Research Centre at PolyU, Director of the MSc in International Shipping and Transport Logistics program, member of the Port Operations Advisory Committee to the Director of Marine Department of Hong Kong, and a council member of the International Association of Maritime Economists (IAME).
Wei Kui: Male, from Wuhu, Anhui. Second-level principal staff member at the Shenzhen Maritime Safety Administration, engaged in maritime administrative management for over ten years. Long-term commitment to cruise and yacht management work, involving administrative licensing matters such as approval for international voyage ships entering and leaving ports, and yacht club filings.
This translation was prepared by the Greater Bay Area Yacht and Cruise Industry Association (GBAYCIA) to facilitate international understanding of yacht policy developments in the region. For more information about maritime policy and industry developments in the GBA, visit www.gbaycia.org.
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