FOREIGN TRADE ZONES
29
for the exclusive use of the monopoly, or for exportation. No opera-
tions were specifically prohibited in the concession or regulations.
Bilbao.—In the free zone of Bilbao the following operations are
permitted:
1. Repacking of merchandise in general.
2. Repacking of bulk articles into smaller units for commercial sale.
3. Mixing.
4. Cleaning and toasting of coffee and cocoa.
5. Shearing or dehairing of skins.
6. Classification of lumber.
7. Washing of wool.
8. Extraction of oil from oilseeds. .
9. Any operation which augments the value of the merchandise deposited
without changing essentially the nature of same.
All operations not listed above are prohibited.
Barcelona —The following operations are permitted in the free
deposit, which consists of two covered warehouses with necessary
equipment:
1. Change of containers of merchandise.
2. Division of merchandise to prepare commercial classes.
3. Mixture of different classes for the same purposes.
4. Shelling and toasting of coffee and cocoa.
5. Cutting of hides.
6. Grinding of wood.
7. Washing of wool.
8. Extraction of oil from copra and oleaginous seeds and its solidification and
hydrogenization.
9. Rendering useless and cutting up of old iron so that duty may be levied
under item 257 of the existing tariff.
10. Rendering useless solid and pneumatic tires and inner tubes, imported or
not in bulk, and cutting them into pieces, so that duties may be assessed under
items 1507 and 1508 of the tariff.
11. Mounting, painting, and upholstery of automobiles and completion of their
squipment.
12. Formation of postal packages and registered packages.
13. Labelling merchandise subject to this requirement when destined for
consumption.
14. All operations which augment the value of the merchandise deposited with-
out varying essentially its nature.
Under the last-named item a large number of operations are per-
mitted. Merchandise entering the free zone, whether it has been
subject to manipulation or not, may be disposed of on leaving it either
by importation into the country through the customhouse at Barcelona
or through another customhouse, by sending to another free deposit,
by exportation abroad, or for the supplying of vessels in accordance
with Royal Order No. 13 of the Ministry of Finance dated December
29, 1926.
In the free deposit merchandise enjoys absolute exemption not only
from customs duties but also from all classes of taxes so long as it 1s