EXPORTING MADE EASY
A Free Trade Zone (FTZ), also known as a Freeport or Foreign-Trade Zone, is a designated area within a country where goods can be imported, stored, manufactured, and re-exported without being subject to the usual customs regulations, duties, or taxes until they enter the domestic market. These zones are designed to boost trade, attract investment, and promote economic activity by offering various incentives to businesses, such as tax breaks or simplified customs procedures.
Key Features of Free Trade Zones:
•Customs Relief: Goods can be brought into the zone without customs duties and taxes being paid, as long as they are exported out of the zone or further processed and re-exported.
•Tax Incentives: Often, companies operating in FTZs receive tax reductions or exemptions, including on business rates or employment taxes.
•Simplified Regulations: FTZs typically offer streamlined customs procedures, which can reduce the time and cost associated with international trade.
•Job Creation: FTZs aim to stimulate economic growth and create jobs by attracting businesses involved in manufacturing, logistics, and trade.
Examples of Free Trade Zones in the UK:
In 2021, the UK government announced the creation of Freeports, which are essentially free trade zones designed to stimulate post-Brexit economic growth. As of now, several areas in the UK have been designated as Freeports:
1.Humber Freeport:
•Located around the Humber Estuary, this Freeport covers areas including Hull and Grimsby, with a focus on renewable energy, manufacturing, and logistics.
2.Teesside Freeport:
•Situated in the North East of England, Teesside Freeport is one of the largest free trade zones in the UK. It aims to focus on sectors such as advanced manufacturing, green energy, and chemicals.
3.Liverpool City Region Freeport:
•Encompasses key sites like the Port of Liverpool, including areas in Wirral and St Helens. It is expected to boost logistics, automotive, and clean energy sectors.
4.Solent Freeport:
•Located around the ports of Southampton, Portsmouth, and the Isle of Wight, the Solent Freeport focuses on maritime, logistics, and advanced manufacturing industries.
5.East Midlands Freeport:
•Centred around East Midlands Airport and nearby sites, this Freeport is set to support manufacturing, distribution, and advanced logistics, taking advantage of the area’s strategic location.
6.Thames Freeport:
•Covering the ports of London Gateway and Tilbury, Thames Freeport focuses on logistics, warehousing, and manufacturing with close proximity to London and the southeast of England.
7.Plymouth and South Devon Freeport:
•Focuses on sectors like marine manufacturing and advanced engineering, including the defense and aerospace industries.
These Freeports are intended to drive regional economic growth, create jobs, and foster innovation in key industries such as green technology, manufacturing, and logistics.