Foreign trade zones (or free ports)

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Monograph

Identifikator:: 1801857903

URN:: urn:nbn:de:zbw-retromon-199077

Document type:: Monograph

Title:: Foreign trade zones (or free ports)

Place of publication:: Washington

Publisher:: United States Government Printing Off.

Year of publication:: 1929

Scope:: IX, 322 S; Ill., graph. Darst

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Part 1. General analysis

Collection:: Economics Books

FOREIGN TRADE ZONES 67 All European countries appear to have recognized that the essential function of the free port is to facilitate transshipment and reconsign- ment trade, and that manufacturing when permitted is a secondary purpose. The operations which are essential to the success of the free zone are those which are necessary to receive, store, and sort goods, and to prepare and repack them for distribution to various markets. The demands of various markets as to kind and grade or quantity of commodities differ, as do also their requirements as to packing. Full cargoes of certain commodities such as rice may be brought into a free port, and there cleaned, graded, and polished. The grades required for the home markets can be brought into customs territory, and the remainder shipped to other markets. The refining of sugar, washing and cleaning of wool, shelling and roasting of coffee, extrac- tion of vegetable oils, tanning of skins, canning of food products, and refining of edible oils are representative of the operations often per- mitted in free ports. At Copenhagen there is a proviso that no diffi- culties shall be offered to the manufacturer or sale of articles destined for export or for the provisioning of vessels. Goods entering customs territory from the free zone are generally subject to duties on the finished products which exceed the duty which would have been assessed on the raw materials. Hence, manu- facturing in the free zone is attractive only when the products are destined mainly for export. In manufactures where the raw materials are obtained wholly or almost wholly from abroad, the free port would offer advantages which might be sufficient to stimulate addi- tional exports in competition with foreign industries and without injury to domestic producers. The matter so greatly concerns the welfare of our industries, however, that it would appear to be advisable to withhold any general authorization for manufacturing in free zones. If, after careful investigation in cooperation with the business in- terests affected, it is found that a particular industry might be estab- lished in the free zones of the United States, under conditions which would avoid injury to establishments located within customs terri- tory, specific authority therefor should be given by Congress. Pend- Ing such investigations and authorizations, it would seem best to limit these activities within the free zone to packing, repacking, changing of containers, cleaning, sorting, grading, mixing and dividing, and similar operations which do not alter the nature of the commodity. 6. EFFECTS OF FREE PORTS OR FOREIGN TRADE ZONES ON MERCHANT MARINE AND SHIPPING IMMEDIATE ETFECTS OF ELIMINATING CUSTOMS FORMALITIES The elimination of customs formalities as applying to especially segregated zones for foreign trade would confer immediate advantages On the vessels engaged in this trade as well as on the cargo. The Immediate advantages to vessels may be briefly stated as follows:

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