FOREIGN TRADE ZONES 
47 
they include the encouragement of facilities and service for reaching 
these markets on a favorable basis. These advantages, however, are 
contingent upon the proper location and development of the free 
port, which subject is considered elsewhere in this report. 
Where a substantial export business exists, consisting essentially of 
foreign products, repacked or filled into containers, or otherwise 
manipulated within authorized limits, the exporter will be able to 
conduct this business in the free zone without the inconvenience 
which now surrounds such operations. In case manufacturing be 
allowed, companies using mainly foreign raw materials and having a 
large export trade in the finished products, could advantageously 
establish a branch plant in the free zone especially to meet the export 
demand. The benefits in this case would consist either in the 
avoidance of the expense and inconvenience incident to the bonded 
manufacturing warehouse, or the loss and delay incident to securing 
the authorized drawback of 99 per cent of the duties paid. 
TRANSSHIPMENT AND CONSIGNMENT TRADE 
For the purpose of this report the word ““reconsignment’” means 
the distribution of goods billed to an agent, jobber, or wholesale 
dealer in a free port through subsequent consignment to subagents 
or buyers, either domestic or foreign. The goods may come into the 
free port temporarily or they may be stored in the warehouses awaiting 
demand. In all cases the ultimate destination is not disclosed on the 
original packages. The term “transshipment” is used to mean the 
transfer of goods from one ship to another or to car. Tt may or may 
not involve the depositing of goods in a warehouse or transit shed 
pending such reshipment. In this character of trade the ultimate 
destination of the goods is known. 
Since the free port is especially designed to stimulate consignment 
and transshipment trade, the results accomplished in the free ports 
of Europe should be useful in reaching conclusions regarding the 
probable developments in this country, having in mind, of course, the 
differences in physical, commercial, and economic conditions. 
At Copenhagen the merchant or manufacturer desirous of shipping 
goods through the free port may either arrange with one of the steam- 
ship companies to have his goods shipped to the port of destination 
on through bill of lading, or shipped to the free port on option bill 
of lading, deferring settlement of the final destination of the goods 
until after their arrival ; or the exporter may forward his goods direct 
to the free port for storing in the company’s warehouses and from there 
have them transshipped to other ports or directed into Denmark. 
Transit goods are warehoused by the Free Ports Co. free of charge 
for about two weeks. Tt is necessary for those wishing to forward 
goods for storing in the free port for later transshipment to have a 
representative in Copenhagen or to employ a local firm of forwarding