LONDON: Britain is planning to boost up its economy by including the concept of ‘Freeports’ or free trade zones in its trade policy. The government is planning to establish 10 freeports at spots in sea, air and rail ports and Rishi Sunak, Chief Secretary to the Treasury, foresees that the move will “unleash” the potential of UK’s historic ports and boost and regenerate communities across the UK.
Freeports are areas where imported goods can be held or processed free of customs duties before being exported again. They can also be used to import raw materials and make finished goods for export.
In freeports, imported goods can be processed without being held for custom duties. Raw materials can also be imported while finished goods can be exported hassle free. With the freeports in place, imported goods won’t attract tarrifs until they leave the decided spot and enter the domestic market. Further no duty is payable if goods are re-exported.
“They will attract new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country,” said Sunak in a statement.
The UK government is also considering implementing tax measures which would boost investment in infrastructure and construction in freeports.