The phrase “free port” means pretty much what I expected:\u00a0 a port where goods can be exchanged, duty-free, then reshipped.\u00a0 As long as the goods stay within the confines of the port, neither their presence – nor transaction of them – leads to taxation.\u00a0 That’s how I understand the premise, anyway.<\/p>\n
Since a government is not receiving taxes, it may not be anxious to inspect the goods arriving in the free port.\u00a0 Inspecting goods is potentially expensive, after all; with no taxes owing, why bother?<\/p>\n
Because of tax-free trade, as well as the privacy a free port might offer, storing goods within the confines of a free port can be attractive.\u00a0 The goods might reside there indefinitely, supposedly awaiting pick-up.\u00a0 Who even owns them might be the sole knowledge of the owner.<\/p>\n
The elegance of the free port construct – where private business contracts might virtually be the only rules – has always appealed to warehousers and owners alike.\u00a0 It’s a phenomenon whose popularity is rising in some locales.<\/p>\n
Sources:<\/p>\n
businessdictionary.com<\/a><\/p>\n www. economist.com<\/a><\/p>\n