What’s a Free Port?

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Free ports near ports or airports offer relaxed customs controls and duties, allowing goods to be stored tax-free for reshipment. They are essential for distributing goods and keeping the flow of products consistent, timely, and profitable.

Free ports, also known as free zones or free economic zones, are areas located near ports of call that offer relaxed customs controls and duties. Ports of this type are traditionally found adjacent to dock areas where ships load and unload. Since the advent of air travel, it is also possible to find a free port adjacent to several airports that provide international flight services. When the free port is located near an airport, it is better known as a customs area.

There are a number of basic characteristics that apply to any free port, whether it is situated close to water or close to an airport landing strip. In both cases, the area allows goods destined for reshipment to be received and stored for a short period of time, generally without the need to pay taxes while the goods are in storage. This convenience can be especially useful for importers who need a few days to arrange overland transport from the point at which the goods entered the country to their final destination. In the event that certain documents are archived at the time the goods arrive in the country, the use of the free port also allows the importer to avoid using more expensive storage methods, such as storing them on the ship while the paperwork is processed.

The same basic process can be used when goods are scheduled for export to another port of call. In this scenario, the goods may have been delivered to a port in one country, where they will be transferred to another ship and continue to their final destination. In case the ships are not scheduled to be in the same port on the same day, the goods can be unloaded, stored in the free port area and loaded onto the second ship as soon as they arrive. This allows you to avoid delays in other shipments, as well as allowing for smooth transition of traffic in and out of the port.

Today, you can find at least one free port in virtually every country that receives exports from international locations. While these ports help with storage, they are also often essential components in the process of distributing goods once they reach the correct port of call. Many companies rely heavily on the use of free ports as a way to keep the flow of products from one country to another consistent, timely and profitable for all involved.

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