Freeport Introduction

Free port refers to all or most of the foreign goods can be tax-free access to the port, designated in a country’s customs territory (that is, “customs”) outside. Also known as free port, free trade zone, foreign trade zone, this port is located outside the customs territory, foreign goods in and out of the port in addition to exemption from customs duties, but also in the port free modification, processing, long-term storage or sales. Subject to the relevant policies and decrees of the host country.

Introduction to Freeport

1. Free ports are divided into fully free ports and limited free ports in accordance with trade controls. The former for all goods import and export are exempt from tax, the latter a small amount of goods imposed a small amount of tariffs and some trade restrictions. Freeport is mainly engaged in entrepot trade. Some free ports and non-free ports are clearly divided, but some are not clearly divided. Some are not in the port area of ​​the free trade zone, in addition to re-export trade, but also engaged in processing, tourism, services and other industries. Opening up a free port can expand entrepot trade and derive various trade costs and expand foreign exchange earnings.

The earliest free port appeared in Europe, the 13th century France has opened Marseilles for free trade zone. In 1547, the Republic of Genoa officially named the southern Gulf of Genoa, the world’s first free port. Later, in order to expand foreign trade, some European countries will gradually open up some port cities free port. So far, the number of free ports has risen to more than 130 in response to global trade and economic development.

Freeport is similar to the bonded area, and its difference lies in the difference in the scope of trade preferences.

Free port distribution

The vast majority of free ports are located in coastal ports and can also be located in inland areas (such as landlocked countries, Switzerland has 20 free ports). Most of them by virtue of its superior geographical location, good ports and advanced transport, loading and unloading equipment to exempt import and export duties and customs supervision of the concessions, as well as carry out cargo storage, grading selection, modification and other business facilities, by attracting foreign cargo ships , Expand the entrepot trade, play the role of commodity distribution center, in order to earn foreign exchange income and the purpose of development.

Freeport classification

According to their degree of restriction, divided into full free port and limited free port. The former is exempt from tariffs on foreign goods, the world is already the same; the latter only a few designated export commodities tariffs or the implementation of different degrees of trade restrictions, other goods can enjoy tax-free treatment, the vast majority of the world’s free port are this Such as Gibraltar, Hamburg, Hong Kong, Singapore, Penang, Djibouti and so on.

According to its size is divided into free port city and free port area. The former includes all areas of the port and the city, which are classified as non-tariff areas. Foreign investors are free to stay and engage in business. All residents and passengers enjoy preferential customs duties such as Singapore and Hong Kong. The latter only includes the port or part of the city where it is located, and does not allow foreigners to stay freely, such as Hamburg, Copenhagen and so on.

The history of free port

Freeport was first produced in Europe, the 13th century, Marseille, France opened up a free trade zone.
In 1547, the Republic of Genoa officially named the first free port in the world of Reynanga, the port of Genoa, as well as Leghoyn in the world. With the development of the world economy and trade, the number of free ports is increasing, the world’s free ports, the district has reached more than 130.

The characteristics of free port

From the regional point of view, the main development goals and functions of free port with the port itself, the role of the distribution center is closely linked, in general, the free port should be in foreign trade cargo throughput, international routes, contact countries and regions, hinterland Export-oriented economy developed port.

From the environmental conditions, the free port not only have a good hard environment, the infrastructure, service facilities, to meet the various requirements of the shipping industry, land set collection and transportation conditions, a high degree of modernization of information, and requires a good The soft environment, there are a series of special policies and measures, and the formation of regulations. To have a high efficiency and good cultural life environment, there should be a variety of tailor-made economy to adapt to the specialized personnel.

It should be pointed out that most of today’s free ports are out of the traditional free port form, its function is not only purely commercial behavior, the scope of operations gradually from the storage and transport of goods, extended to include industry, trade, transportation, finance and tourism and other aspects Of the integrated goals.

Free port allows all or most foreign goods to be exempted from customs clearance. Foreign goods may be stored, packaged, sorted, processed or sold in a free port without payment of duties. Foreign goods are taxed when they enter the country’s customs territory from the free port. When foreign ships enter or leave the port, they still have to comply with policies and regulations on health, immigration and public security in sovereign states.

The current free port is the main function of promoting entrepot trade and for the re-export of goods and simple re-processing (including commodity disassembly, mixing, sorting, repackaging) for re-export services.

Free port and full free port and limited free port points, the former foreign goods are exempt from customs duties, the latter designated a small number of goods or the implementation of different levels of trade control, the other goods duty-free.

Free port range varies, and some free ports, including the port and its urban areas, this complete form of free port, also known as free port city, such as Hong Kong can be called free port city. Free port city is often the port of all areas are turned into non-tariff areas, foreign residents are free to stay and engaged in business, all residents enjoy the tariff concessions. Some free ports include only a part of the port and the city, and do not allow foreigners to stay freely. Such as Copenhagen Freeport and Hamburg Freeport.

The role of free port
The free port plays an important role in the development of an area or even a country’s export-oriented economy. In the general sense, it has the following main functions:

First, to improve the port to the owner, the owner of the attraction, to expand the port throughput, greatly enhance the port transit function.

Second, the development of free port will promote the port to a comprehensive, multi-functional direction, so that the port as an export-oriented economic center. At the same time, to promote the port area of ​​export-oriented economy.

Third, to maximize the flexibility to adapt to the requirements of international trade, trade in all aspects of the economic benefits.

Four is to promote the free port and adjacent areas of employment and the prosperity of the tertiary industry.