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FOREIGN TRADE ZONES
THE FREE PORT OF HANGO, FINLAND
[From James R. Wilkinson, American consul, Helsingiors, Finland}
No free port functioning in Finland.—A free port was established in
Hango in 1921, but it was taken over by the Government before it
was quite completed and is now operated as an ordinary port. A
summary of the history of the Hango free port is embodied in the fol-
lowing paragraphs.
Free port agitation due to future Russian trade.—During 1920 certain
Finnish business men were seized with the notion that great trade
expansion was impending in Russia and that the most natural trade
route between Petrogad and the western world would be the railroad
line between that city and Hango Finland. Accordingly, the idea of
a free port in the latter city was conceived and was agitated until the
Finnish Government passed a law giving the necessary powers for
the establishment of free ports.
THE FREE PORT LAW
Law passed. —There being no law in Finland providing for free zone
or free port activities, it was of course necessary to pass one. Accord:
ingly, a law providing for free ports was enacted on March 31, 1921
The main provisions of the law are as follows:
Free ports may be established in appropriate places—The law pro-
vides that free ports and free warehouses may be established in any
appropriate place in the country under certain conditions duly set forth.
Free port defined. —A free port is defined as a zone in which goods
may be cleared, warehoused, repacked, manufactured, and otherwise
handled without regular customs procedure. A free warehouse is
defined as a place in which goods may be handled as in the case of 8
free port.
State and Finnish citizens have right to establish.—Section 2 of the
law provides that the right to establish and operate a free port if
vested in the State, which may delegate its right to municipalities;
corporations, and cooperative societies the boards of directors of which
are Finnish citizens. A proper application must be submitted to the
Government and the opinion of the community concerned must be
heard.
Status of free port with regard to ordinary trade.—To all intents and
purposes goods going to or coming from the free port have the same
status as goods exported from or imported into Finland.
State to provide regulations for free ports. —Section 4 of the law gives
the Government the right to promulgate the regulations necessary
for operating free ports. These regulations may pertain to custom®
procedure, tariffs, safety, and other matters. It also provides that
tariffs shall be no higher than what the upkeep, expansion, and 2
moderate profit necessitates.