What is a free port?

A free port is usually a port or port area that is not under the jurisdiction of any national customs. Foreign goods can enter and leave the port duty-free, and can be processed, stored, traded, loaded and unloaded and repackaged there. However, foreign ships must abide by health and immigration laws and regulations.

The scope of a free port is limited to a specific area of the port, and some of them extend to the adjacent area of the port, which is generally called a free zone. The purpose of establishing free zones in some countries is to develop transit trade, attract foreign ships or goods to transit, and obtain freight, stacking and processing fees.

At present, the famous free ports are Beirut (Lebanon), Tangier (Morocco), Ceuta (Spain), almeria (Spain), Aden (South Yemen), Djibouti (Djibouti), Malacca (Malaysia), Singapore (Singapore), Goa (India), Hong Kong and Macao, and Heiglan Island in the North Sea. Georgetown (Cayman Islands) in the Caribbean, Panama City and Cologne at both ends of the Panama Canal, Monrovia (Liberia) in West Africa, Niagara Falls on the west bank of Niagara Falls with the largest water volume in the world (USA), Saint Catherine (Canada) on the east bank, etc.

Republic of Singapore

It is generally believed that free ports exist only in developing countries. In fact, the most developed capitalist countries in the world also have free ports, but with different names. Since the 1960s, Britain, France, Belgium, the Netherlands, Denmark and other countries have set up "special zones" and stipulated preferential treatment measures to use foreign capital to develop industry and commerce in underdeveloped areas of China. The underdeveloped border areas such as Alsace in the northeast of France and the north and south of the Netherlands have all implemented liberalization policies. The United States has established dozens of "free trade zones" near ports, airports, stations and freight yards. This kind of free port is mainly used as a transshipment station to temporarily store imported goods for sale; In addition, foreign businessmen are allowed to process, assemble, label and sort in this area.