Glossary
What is a freeport?
A freeport is a designated zone, usually built around a port or airport, where goods can be imported, stored, manufactured and re-exported under special customs and tax rules. Duty is suspended while the goods remain inside the site. |
How do UK freeports work?
- Customs sites where duty and import VAT are suspended while goods stay inside
- Duty falls due only when goods enter the UK market — and never if they are re-exported
- Duty inversion, where a finished product carries a lower rate than its components
- Tax sites layering reliefs on business rates, stamp duty and employer contributions
Freeport or customs warehouse?
A customs warehouse suspends duty on goods stored at one approved premises. A freeport is a geographic zone that can host many operators, permits manufacturing, and adds tax reliefs on top of the customs benefit. The customs mechanics overlap; the scope and the incentives do not.
What operators need in place
Authorisation, a guarantee, and inventory records accounting for every movement in and out. HMRC audits the records rather than the perimeter — the site boundary is a legal one, and goods that cannot be traced across it create a duty debt.
iCustoms reconciles freeport movements against declarations, so the duty position holds at audit. |
