In the summer the UK Trade Policy Observatory (UKTPO) said that the benefits of such zones would be minimal because tariffs in the UK are already so low. However, not everyone is so keen on the policy. They also say that companies who operate within the zone see additional benefits due to “agglomeration”, where the clustering of businesses leads to economic advantage.Īdditional incentives such as discounted business rates and reductions in stamp duty can also encourage further investment into the zones.įor the government, the policy is a key part of its “levelling up” agenda, the attempt to rebalance economic equality around the country.Ĭonstruction group Mace says that free ports could help create 150,000 new jobs, while annually contributing £9bn to the UK economy. Under the UK’s proposals, a firm can import goods into a free port without paying tariffs, process them into a final good and then either pay a tariff on goods sold into the domestic market, or export the final goods without paying UK tariffs. What are the economic advantages?Īdvocates of free ports say that the special zones encourage imports because of the reduction in tax-related costs. In such ports, goods can be imported, manufactured, and exported again without facing standard tariffs or requiring normal customs checks.Ĭompanies which operate within free ports do so with the benefit of paying a lower rate of VAT tax and employment tax, as well as relief when it comes to purchasing land. The first of these sites are expected to begin operating in 2021, in the hope of boosting international trade after Brexit.īut what are “free ports” and why is the government so keen to develop them? What are free ports?įree ports are specially designated economic zones where normal tax and customs rules do not apply.Īll forms of port are included under the status – ferry ports, airports, and rail ports. Read the Anglian waterways guide for information on mooring.This morning the Treasury announced that the bidding process for the creation of up to 10 new “free ports” in the UK had opened. Unless they have an exemption, powered craft are restricted to the length between Ballingdon Bridge and Henny Street. Unpowered craft (those that are peddled, rowed or sailed) can travel the whole length of the Stour navigation from Brundon Mill to Cattawade.
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