I. What is Bonded Maintenance?

Bonded maintenance refers to a business model where enterprises transport goods with component damage, functional failure, quality defects, or other issues from overseas into China under bonded status for inspection and repair, subsequently re-exporting them after completion. Compared with traditional maintenance models, its core advantage lies in equipment entering and exiting the country without requiring tariff deposits, significantly reducing capital occupation.

Maintenance outside special customs supervision areas takes this further by situating repair facilities and equipment outside these designated zones, allowing enterprises to conduct business within their own factory premises. This not only reduces operational costs but also facilitates the formation of industrial clusters.

II. Policy Benefits: Three Core Advantages

1. Duty-Free Import of Maintenance Components and Parts

Under the Hainan Free Trade Port's "zero-tariff" policy, enterprises can import components, tools, and equipment needed for maintenance with exemption from import duties. This policy directly reduces material costs for maintenance operations, enabling international clients to access high-quality repair services at more competitive prices.

2. Elimination of Tariff Deposit Requirements, Releasing Financial Pressure

In the traditional model, overseas equipment entering China for maintenance required a tariff deposit equivalent to a certain percentage of the equipment's value, resulting in significant capital occupation over extended periods. Under the bonded maintenance model, equipment enters Hainan under bonded status without requiring such deposits, substantially alleviating clients' financial burden.

3. 15% Corporate Income Tax Preference, Optimizing Project Returns

As an enterprise registered in the Hainan Free Trade Port, Hainan Longpan benefits from the universal policy of a reduced 15% corporate income tax rate. This policy advantage ultimately translates into more competitive service pricing, allowing international clients to share in the development opportunities presented by the Free Trade Port.

III. Full Operational Process: Four Steps to Complete Bonded Maintenance

Step One: Project Approval and Qualification Registration

Enterprises must submit applications to the competent commerce authorities at the city or county level. After preliminary review, provincial-level assessment, and comprehensive evaluation by the provincial government, they may obtain bonded maintenance pilot qualification. Hainan Longpan was officially approved on August 24, 2025, becoming the first enterprise in Hainan Province to receive bonded maintenance pilot qualification outside special customs supervision areas.

Step Two: Establishment of Electronic Ledger

Following approval, enterprises establish electronic ledgers for bonded maintenance with customs authorities. Haikou Customs implements a "one enterprise, one ledger" intelligent supervision model, achieving an organic integration of automated system control and convenient enterprise declaration.

Step Three: Equipment Import Declaration

When overseas equipment arrives in Hainan, enterprises conduct customs declaration through China's international trade "single window." Unlike the traditional model, bonded maintenance declarations do not require obtaining import licenses in advance. Enterprises simply select the appropriate cargo attribute code during declaration, eliminating the entire "application-approval-verification" process.

Step Four: Re-export Upon Completion of Maintenance

After maintenance and testing are completed, equipment is re-exported within the prescribed time limit. Customs verifies and cancels the ledger entries, completing the business cycle.

IV. Hainan Longpan: Fulfilling Industry Responsibility Through Professional Excellence

Leveraging the benefits of bonded maintenance policies, rapid response capabilities, and a professional engineering team, Hainan Longpan consistently provides reliable generator repair and maintenance services to global clients. The company is actively advancing its development strategy centered on "Buy Global, Repair Global, Sell Global, Invest Global," expanding into equipment remanufacturing based on its bonded maintenance foundation. Through professional inspection, repair, and upgrading, the company restores used equipment to performance levels approaching those of new units, offering clients more environmentally sustainable solutions.

As the first bonded maintenance pilot enterprise outside special customs supervision areas in Hainan Province, Hainan Longpan remains committed to transforming policy advantages into tangible service value through professional expertise and rigorous standards, helping clients reduce operational costs and enhance equipment efficiency. We deeply understand that behind the stable operation of every generator lies our clients' production continuity and business performance.

Looking ahead, Hainan Longpan will continue to deepen its presence in the energy power system service sector, driven by technological innovation and supported by policy advantages, providing global clients with increasingly efficient and reliable equipment operation and maintenance solutions.