Freeports?

Today I was asked a very good question – is a Freeport free?  The answer is yes and no.

Freeports are areas where special customs rules apply.

Generally goods may be held in a Freeport without the payment of import duty or tax such as VAT.  This is the only respect in which they are free.

The companies within the Freeport will charge for storage, processing and documentation.  So no they are not ‘free’.

Equally they are not free of rules or regulations and these rules and regulations can be very different in different Freeports and amongst other things they govern how goods can be removed from the Freeport, what can happen to them while they are there, and what duties and taxes will be levied if they are eventually imported into the host country.

Free ports in Switzerland are said to house some of the biggest art collections in the world.   Stored without import duty or tax until a collector, having viewed the item in storage, chooses to buy and import it. 

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