FOREIGN TRADE ZONES 
the time of entry, liquidation of the duty is suspended pending the 
furnishing of a complete account of items liable to duty. If neither 
equipment has been purchased nor repairs made to a vessel while at 
a foreign port, an affidavit to that effect is required. If sufficient 
evidence is produced to show that due to stress of weather or other 
casualty encountered in the regular course of the voyage the vessel 
was compelled to put into a foreign port for repairs or equipment or 
secure such repairs or equipment at the foreign port of destination 
in order to enable it to return in safety to its American port of desti- 
nation, duties may be remitted or refunded upon application to the 
Secretary of the Treasury. 
No license or enrollment and license, or renewal of either, will be 
issued to any such vessel until the collector is satisfied that all the 
equipment and repairs made within the year immediately preceding 
application for such documents have been duly accounted for and 
the duties paid thereon. 
The Canal Zone is not “foreign territory” within the meaning of 
section 466 of the tariff act of 1922, and repairs made therein on a 
vessel of the United States are not dutiable. 
5. EFFECTS OF FREE PORTS OR FOREIGN TRADE ZONES ON 
COMMERCE AND MANUFACTURING 
EFFECT OF THE FREE PORT ON THE IMPORTER 
Countries having free trade have no occasion for foreign trade zones, 
and in countries with limited customs tariffs, such as England, Bel- 
gium, and the Netherlands, the procedure is not so burdensome as 
to encourage the establishment of specially segregated zones. There 
are all degrees of customs duties on imports, ranging from those in 
countries with comparatively limited tariffs to those in countries 
with high tariffs. The establishment of foreign trade zones was 
found to be desirable in Sweden, where the customs duties are on 
about the same level as in Norway, Finland, Germany, and France, 
considerably lower than those in Spain and the United States, but 
higher than those in Denmark, the Netherlands, Switzerland. and 
Great Britain. 
The free port is concerned chiefly with foreign goods which are to 
be reshipped to other foreign destinations, although some of these 
imports may eventually be entered for consumption. The formalities 
with their attendant delay to the importer of merchandise would be 
eliminated within the free zone, and the importer would be able to 
secure possession of his goods upon proper proof of ownership. 
Assuming the establishment of free ports in the United States and 
the same freedom which attends the movement and handling of 
cargo in free ports abroad, practically all of the formalities mentioned 
above under the head of “Procedure with respect to imports and re-