China will apply exemptions on import tariffs and value-added tax for eligible drugs and medical devices in the Boao Lecheng International Medical Tourism Pilot Zone in Hainan Province, before the whole island achieves independent customs operations in 2025, according to a circular published on Thursday.

The circular, jointly publicized by the Ministry of Finance and four other departments, made clear that the policy applies to medical institutions, medical education colleges and universities, and pharmaceutical research institutes registered and recognized with independent legal person status in the pilot zone.

The publishing of the document aims to expand the scope of "zero-tariff" goods, strengthen the stress tests and promote the development of the Boao Lecheng pilot zone, in order to support the construction of the Hainan Free Trade Port, the circular said.

Industry observers said that the introduction of the "zero-tariff" policy for drugs and medical devices will help reduce the medical treatment burden on patients, unleash consumption potential with high-quality supply in health-related sectors, and enhance the competitive advantages of the port's characteristic industries.

It will also promote the synchronized development of medical technology, equipment and drugs to align with international advanced standards, and support the pilot zone in transforming into a world-class medical tourism destination and medical technology innovation platform, according to the experts.