Businesses operating within Freeport customs sites will receive tariff benefits, including duty deferral while the goods remain on site, and duty inversion if the finished goods exiting the Freeport attract a lower tariff than their component parts. Subject to the UK’s trade agreements, businesses may also be able to take advantage of customs duty exemption on goods that are imported into a Freeport, processed into finished goods and subsequently re-exported. They will also be able to suspend import VAT on goods entering the Freeport. In addition, businesses operating in Freeports will be authorised to use simplified import procedures. This model expands on existing customs facilitations and procedures available to business.

In summary:

  • There will be simplified declaration procedures for goods entering a Freeport
  • Non-controlled goods will be declared via entry in commercial records
  • Controlled and excisable goods will need to complete a simplified frontier declaration
  • Import or export declarations will be required for goods leaving a Freeport
  • Excise duties, duty and import VAT will be suspended when the goods enter a Freeport and payable when they leave
  • Goods can be bought and sold in a Freeport provided both parties have the same customs authorisation