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1/ Since the UK is apparently getting some now, a thread on what free ports are.
In the simplest possible terms, Free Ports are designated areas around a commercial port into which imports can enter without paying tariffs until and unless they move deeper into the country.
In the simplest possible terms, Free Ports are designated areas around a commercial port into which imports can enter without paying tariffs until and unless they move deeper into the country.
2/ Let's say the UK decided to turn the entire seaside part of Dover into a Free Port.
Goods entering the UK via Dover but remaining under (Southeast) of the purple line wouldn't pay tariffs. Effectively the UK's customs border would move from the dock to the purple dotted line.
Goods entering the UK via Dover but remaining under (Southeast) of the purple line wouldn't pay tariffs. Effectively the UK's customs border would move from the dock to the purple dotted line.
3/ "What's the point?"
The advantage of a Free Port is factories and warehouses located inside it don't have to undergo customs or pay tariffs on their inputs.
It pushes back a country's customs borders to the point where they only start once your stuff leaves the Port area.
The advantage of a Free Port is factories and warehouses located inside it don't have to undergo customs or pay tariffs on their inputs.
It pushes back a country's customs borders to the point where they only start once your stuff leaves the Port area.
4/ "How does that help?"
Well, let's say you build a car factory inside a Free Port.
Normally, you'd have to fill out forms & pay a tariff on the steel and components you ship in to make your vehicle, but inside a Free Port the steel and parts can come in tariff free.
Well, let's say you build a car factory inside a Free Port.
Normally, you'd have to fill out forms & pay a tariff on the steel and components you ship in to make your vehicle, but inside a Free Port the steel and parts can come in tariff free.
5/ "So does a Free Port help avoid the border friction you nerds keep warning us about from No-Deal?"
Only if you happen to be living in one (you probably won't).
Goods existing a Free Port into the rest of the country still have to pay tariffs & go through normal customs.
Only if you happen to be living in one (you probably won't).
Goods existing a Free Port into the rest of the country still have to pay tariffs & go through normal customs.
6/ "Do Free Ports fix the Northern Ireland border?"
No, if anything they may make it worse.
If say, Belfast is a Free Port, then not only will goods crossing from NI into RoI still need to be checked (and vice versa) but so will any goods existing Belfast into the UK (inc NI).
No, if anything they may make it worse.
If say, Belfast is a Free Port, then not only will goods crossing from NI into RoI still need to be checked (and vice versa) but so will any goods existing Belfast into the UK (inc NI).
7/ I'm not a Customs Guy(tm), so I would encourage you to follow those who know more and can correct me like @AnnaJerzewska and @RobHardyFR8.
I believe @SamuelMarcLowe has also done a lot of thinking on this, but then I assume he's done a lot of thinking on everything.
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I believe @SamuelMarcLowe has also done a lot of thinking on this, but then I assume he's done a lot of thinking on everything.
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