FOREIGN TRADE ZONES
25
be devoted wholly to export trade. Goods entering customs terri-
tory from the free zone would be subject to duty on the value of the
finished products, and this alone would discourage general manufac-
turing operations in the free zone. Simplification of the drawback
procedure would seem to be a possible solution of the problem, and
it would keep the free zone wholly available for the instrumentalities
of commerce and shipping, which are its true functions.
4. PRINCIPAL FEATURES OF EUROPEAN FREE PORTS
OPERATIONS PERMITTED AND PROHIBITED IN FREE PORTS OF EUROPE
The data made available in connection with this investigation show
that there is wide divergence in the nature and extent of the privileges
accorded to commerce and shipping within the free ports of Europe.
Obviously, the purpose in view is to accord the greatest freedom to
shipping and to secure the greatest development of international trade
which proper regard to the protection of home industries will permit.
In this connection it is interesting to note the privileges accorded and
the restrictions imposed at the various free ports of Europe.
Copenhagen.—The Copenhagen free port law of March 31, 1891,
authorized the construction of a free port ‘for commercial and indus-
trial purposes.” Under the terms of the charter of the Copenhagen
Free Port Joint Stock Co., the company must permit merchandise
deposited in open or inclosed spaces within the free port leased out to
private parties and which it was impossible to receive in the ware-
houses of the company, to be prepared or manipulated in any manner
that the proprietors or their representatives see fit. Every person has
a right upon payment of stipulated sums due and by observing the
regulations in force to make use of the installations of the free port.
In accordance with law there can not be installed within the territory
of the free port, without the previous consent of the legislative power,
factories for the manufacture of artificial fertilizer, or margarine, or
book binding or printing industries for books, newspapers or music.
The consent of the Secretary of the Interior is necessary for the estab-
lishment of any other industry, as well as for retail stores within the
territory of the free port. The Secretary shall not, however, oppose
any difficulties whenever ‘the articles manufactured or sold are for
export or for provisioning of vessels. Special care is taken to prevent
the consumption of dutiable articles within the free port unless such
duties have been paid.
Foreign merchandise which leaves the free port and enters into
Danish customs territory must submit to the rules as.to the tariff
schedules then in force. The port duties assessed against vessels in
the customs port are not collected in the free zone on articles trans-
shipped and re-exported, but articles leaving the free port for entry
into Danish customs territory pay to the tariff board a tax equal to the
