45 
exports” would be eliminated. If the same liberality be accorded as is 
found in the free ports of Spain and Italy, the importer would be free to 
store goods, both free and dutiable, in the warehouses of the port, 
and to reship them, either in the condition in which received, or after 
manipulations which do not alter the nature of the product. He 
would be able to conduct such operations as repacking, sorting, filling 
into containers, grading, shelling and roasting of coffee, shearing and 
tanning of skins and hides, washing and scouring of wool, and 
assembling of machinery and motor cars. Privileges similar to the 
above would permit the unrestricted development of transshipment 
and consignment trade, which is the true function of the free port. 
They would open up new opportunities to the importer and exporter, 
enabling them to engage in international trade to an extent which 
heretofore has been regarded as impracticable. 
The provisions respecting manipulation in bonded warehouses, 
contained in section 562 of the tariff act of 1922, are as follows: 
Manipulation in warehouse.—Unless by special authority of the Secretary of 
the Treasury, no merchandise shall be withdrawn from bonded warehouse in 
less quantity than an entire bale, cask, box or other package; or, if in bulk, in 
the entire quantity imported or in a quantity not less than 1 ton weight. 
All merchandise so withdrawn shall be withdrawn in the original package in 
which imported unless, upon the application of the importer, it appears to the 
collector that it is necessary to the safety or preservation of the merchandise 
to repack, or transfer the same: Provided, That upon permission therefor being 
granted by the Secretary of the Treasury, and under customs supervision, at the 
expense of the proprieter, merchandise may be cleaned, sorted, repacked, or 
otherwise changed in condition, but not manufactured, in bonded warehouses 
established for that purpose, and be withdrawn therefrom for exportation, 
without payment of duties, or for consumption, upon payment of the duties 
accruing thereon, in its condition at the time of withdrawal from the ware- 
house. The scouring or carbonizing of wool shall not be considered a process 
of manufacture within the provisions of this section. 
It will be observed that none of the operations which have been 
found to be of such benefit to international trade at European free 
ports are permitted in our bonded customs warehouses. Goods 
can not be imported in large lots, and thereafter repacked, filled into 
containers, sorted, graded or otherwise prepared to meet the re- 
quirements of various markets. They can be withdrawn only in 
their original Packages except where cleaning, sorting, and repacking 
is necessary to the safety or preservation of the merchandise. In 
the customs area, these Precautions are no doubt absolutely neces- 
sary, but it is clear that they serve to discourage reexport trade. 
Only where there is freedom to store goods in any quantity and to 
Te€Xport in any quantity is it possible to attain the greatest success 
0 trade of the nature which has built the greatness of London, 
Antwerp, Amsterdam, and Hamburg. Nor is the simple privilege 
of withdrawal in any desired quantity sufficient. There must like- 
FOREIGN TRADE ZONES