Humber Area Now A Freeport
Announced in today’s 2021 Budget the Humber area going to be one of eight new Freeports. This includes the ports of Immingham (ABP and ABLE), Grimsby, Hull and surrounding areas. Additionally the Able port is receiving further funding allowing it to further get the port developed. While the UK has had Free Zones in the past which was aimed at regeneration or to encourage specific business sectors to become established, Freeports exist mainly to appeal to business which import goods, have them undertake some process, then re-exported.
The Freeport allows goods to be imported and exported under an much simplified customs system and allows the deferment of any taxes indefinitely which assists the traders. Traders can work on the goods and re-export them without having the financial burden through having to pay the taxes on arrival or giving financial guarantees. For traders importing large volumes / high volume goods this can have a significant benefit to the trader’s cash flow position. The trader will be able to either complete the customs declarations themselves or use an agent such as AJF.
The Freeport is suppose to become operational sometime in the autumn of 2021. Hopefully this Freeport will be much more successful going forward then the Freezone’s which existed before in between 2006 and 2012.