free port, port, or section of a port, exempt from customs regulations (see tariff). Goods may be landed at a free port for storage and handling, and they may even be processed into manufactured goods. Duty is charged only if the goods are moved from the free port into the adjacent territory. Free ports originated in the late Middle Ages, when the burdensome tariffs charged by many petty states threatened the reemerging maritime commerce. The high tariffs later levied in the period of mercantilism necessitated additional free ports. In the 19th cent. the danger of smuggling caused the closing of many free ports. In Europe, Copenhagen, Danzig, and Hamburg were free ports until 1939; in East Asia, Hong Kong and Singapore still are. In the United States, bonded warehouses serve some of the functions of the free port, permitting goods to be stored and processed in specially licensed warehouses if a bond exceeding the amount of the customs duties is first posted. In 1934 the Foreign Trade Zones Act authorized the establishment of free ports in the United States, but with a prohibition on manufacturing. The first American free port was opened in New York City in 1937, and others have since been added. Many international airports have free ports.

Area within which goods may be landed, handled, and re-exported freely. The purpose is to remove obstacles to trade and to permit quick turnaround of ships and planes. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to tariffs and customs regulation. Free-trade zones are found around major seaports, international airports, and national frontiers; there are more than 200 such zones in the U.S. alone.

Learn more about free-trade zone with a free trial on Britannica.com.

A free port (porto franco) or free zone (US: Foreign-Trade Zone) is a port or area with relaxed jurisdiction with respect to the country of location. Free economic zones may also be called free ports.

Most commonly a free port is a special customs area with favorable customs regulations (or no customs duties and controls for transshipment). Earlier in history some free ports like Hong Kong enjoyed political autonomy. Many international airports have free ports, though they tend to be called customs areas, customs zones, or international zones.

Free ports and Free Zones by country

Africa

Egypt

• Port Said
• Suez Canal Container Terminal

Morocco

• Tangier Exportation Free Zone

Mauritius

• Port Louis Free Port

Asia

Bahrain

• Manama

Hong Kong, China

• Hong Kong

Iran

• Qeshm
• Chabahar
• Kish
• PSEEZ
• Arvand

Israel

• Eilat

Japan

• Nagasaki
• Niigata

Macao, China

• Macao (Ka-Ho)

Malaysia

• Penang Until 1969

Pakistan

• Gwadar

Philippines

• The former United States Navy base of Subic Bay
• Zamboanga Economic Zone and Freeport
• Clark Air Base and Freeport

Singapore

• Singapore

South Korea

• Incheon
• Busan
• Gwangyang Bay

Taiwan

• Port of Keelung Free Trade Zone
• Port of Taipei Free Trade Zone
• Port of Taichung Free Trade Zone
• Port of Kaohsiung Free Trade Zone
• Taoyuan Air Cargo Park Free Trade Zone

Taiwan FTZs

Turkey

• Mersin

United Arab Emirates

• Fujairah Creative City
• Dubai Internet City
• Dubai Media City
• Dubai Studio City
• International Media and Production Zone
• Dubai Knowledge Village
• Dubai Healthcare City
• Dubai International Financial Center
• DuBiotech
• Dubai Outsource Zone
• Jebel Ali Free Zone
• RAK Media City
• RAK IT Park
• Ras Al Khaimah Free Trade Zone

Europe

Austria

(part of the European Union)

• Linz (port on river Danube)
• Vienna (port on river Danube)

Belarus

• Brest FEZ
• Grodno FEZ

Croatia

• Rijeka, 1723

Denmark

(part of the European Union)

• Freeport of Copenhagen (Københavns Frihavn)

Finland

(part of the European Union)

• Free zone of Lappeenranta (Lappeenrannan Vapaa-alue)
• Freeport of Hanko (Hangon Vapaasatama)

France

(part of the European Union)

• Free Zone of Verdon - Port de Bordeaux (Zone franche du Verdon — Port de Bordeaux)

Germany

(part of the European Union)

• Freeport of Hamburg (Freihafen Hamburg)
• Freeport of Bremen (Freihafen Bremen)
• Freeport of Bremerhaven (Freihafen Bremerhaven)
• Freeport of Emden (Freihafen Emden)
• Freeport of Kiel (Freihafen Kiel)
• Freeport of Cuxhaven (Freihafen Cuxhaven)
• Freeport of Deggendorf (Freihafen Deggendorf)
• Freeport of Duisburg (Freihafen Duisburg)

Georgia

• Ajaria autonomous republic
• Batumi, 1878-1886 (then Russia)

Greece

(part of the European Union)

• Free zone of Piraeus
• Free zone of Thessaloniki
• Free zone of Heraclion

Ireland

(part of the European Union)

• Ringaskiddy Free Port
• Shannon Free Zone

Isle of Man

• Ronaldsway Airport (Ballasala)

Italy

(part of the European Union)

• Livorno, 1675-1860
• Free Zone of Trieste (Porto franco di Trieste)
• Free Zone of Venice (Porto franco di Venezia)

Malta

(part of the European Union)

• Malta Freeport

Latvia

(part of the European Union)

• Free port of Riga
• Free port of Ventspils

Lithuania

(part of the European Union)

• Free Port of Klaipėda

Portugal

(part of the European Union)

• Free Zone of Madeira - Caniçal (Zona franca da Madeira - Caniçal)

Russia

• Nakhodka
• Vladivostok, 1861-1909

Spain

(part of the European Union)

• Free zone of Barcelona (Zona franca de Barcelona)
• Free zone of Cádiz (Zona franca de Cádiz)
• Free zone of Vigo (Zona franca de Vigo)
• Free zone of Las Palmas de Gran Canaria (Zona franca de Las Palmas de Gran Canaria)
• (Ceuta and Melilla are not Free Ports or Free zones because they are parts of Spain, but not part of the European union for customs and excises)

Sweden

(part of the European Union)

• Marstrand, 17th century
• Saint-Barthélemy, 1785-1878

Turkey

• Mersin

Ukraine

• free port and free economic zone Odessa
• 1819-1858
• Trade sea port of Odessa, January 1, 2000 for 25 years

United Kingdom

(part of the European Union)

• Liverpool Free Zone
• Prestwick Airport Free Zone
• Southampton Free Zone
• Tilbury Free Zone
• Port of Sheerness Free Zone
• Humberside Free Zone
• London Docklands

The Americas

Argentina

• Zona Franca La Plata

Bermuda

• Free port of Hamilton Harbour, Hamilton, Bermuda

Brazil

• Zona Franca de Manaus

Chile

• Iquique

Dominican Republic

• Mega Port of Punta Caucedo

http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr115831e.html http://www.port-technology.com/projects/caucedo/

Nicaragua

• Managua Zona Franca (Free Port)

Panama

• Colón

Uruguay

• Carrasco International Airport (Free Port)
• Zona Franca de Montevideo
• Zona Franca Colonia

U.S.

• US Commerce Department (International Trade Administration): List of U.S. Foreign-Trade Zones

Venezuela

• Free port of Isla Margarita (Puerto Libre de Margarita)
• Free zone of the Paraguaná Peninsula (Zona Franca de la Península de Paraguaná)

See also

• Duty free
• Entrepôt

External links

• a list of free ports in the European union (.pdf-file; English)
• The German customs administration about freeports and free zones in Germany (German)
• US Customs: About Foreign-Trade Zones & Contact Info
• US Commerce Department (International Trade Administration): U.S. Foreign-Trade Zones Board