You can hear the word “free port” in shipping and international trading. Here we are going to explain about free port and valuable details about free port.
What is a free port?
Free port is an area inside the country. Usually, a freeport is Located around the port or airport. That area is out of the customs rule and regulations of the country. And it is legally free from customs taxes/duties under specific rules and regulations. Then it is able to bring cargo to a free port, allows to store and process. After that can import or re-export without normal behavior of customs taxes. The Freeport concept is introduced to encourage foreign trade.
In the Free port activities such as manufacturing, value additions for logistics,
Why free port?
The main purpose of the free trade zone is a removing trade disturbance of high taxes/duties and complex customs regulations. But the free port is applied specific rules and conditions.
Ability to manufacture, value addition, and also store goods freely
Importance and Advantages of the free port to the country
- Country’s foreign exchange to the country
- Encourage foreign trade for manufacturers, exporters, importers, freight forwarders, transshipment, multi-country consolidation, value addition
- Encourage local businesses such as manufacturing, value addition, and export
- Provide facilities for new business ideas and innovative technology
- Ultimately world economy the trading increase
- Reduce total cost reduction in the business while world trade
- Creating new job opportunities at free trade zones
Other names for free port
- Freezone
- Free trade zone
- Foreign trade zone
- Export processing zone
- Duty-free export processing zone
- Industrial free zones
- Special economic zones
- Export free zones
- Investment promotion zones
- Free export zones
Examples of Free trade zones in the world
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