Thames Freeport - Britain's Trading Future

[ 5 ] them to benefit and contribute to one freeport in their region; and to ensure businesses looking to invest in Freeports have increased options available to help them secure an optimal location that works for them. Typically, a freeport focused around a sea port will be demarcated with an Outer Boundary containing: • A primary customs site around the sea port, which is not necessarily within the tax site, so businesses inside benefit from the customs measures, but not tax measures • Additional underdeveloped land separate from the primary customs site where businesses in both sites will benefit from the tax measures • An additional customs subzone, which is also part of a tax site, so that businesses inside benefit from both the customs measures and the tax measures • A nearby factory site, which is an additional customs subzone but is not covered by the tax site, so businesses inside benefit from customs measures but do not benefit from tax measures • A distant factory, which is outside the Outer Boundary, so cannot be a customs subzone or part of a tax site without a special economic case for inclusion. Customs Businesses operating within freeport customs sites will receive tariff benefits, including duty deferral while the goods remain on site, and duty inversion if the finished goods exiting the freeport attract a lower tariff than their component parts. Subject to the UK’s trade agreements, businesses may also be able to take advantage of customs duty exemption on goods that are imported into a freeport, processed into finished goods and subsequently re-exported. They will also be able to suspend import VAT on goods entering the freeport. In addition, businesses operating in freeports will be authorised to use simplified import procedures. This model expands on existing customs facilitations and procedures available to business. Contribution to decarbonisation and environmental impact A prominent theme of the consultation response was that freeports have great potential to contribute towards the Government’s decarbonisation agenda and net zero ambition. The Government is supporting the testing of new technologies including emerging green technologies, as part of measures to create hotbeds for innovation. In addition, there remain opportunities for freeports to align with wider decarbonisation interventions, including the £160 million Green Energy Fund announced in October 2020 to upgrade ports and infrastructure as part of plans to make the UK a world leader in offshore wind and green energy. Freeport operators are responsible for: • Making sure that carbon impacts of on-land freight distribution are minimised • Making sure that vessels using the port operate in a low-carbon manner (e.g. reducing use of fossil fuels) • Ensuring any construction work is sustainable or low-carbon • Increasing use of low-carbon power within the freeport • If applicable, promoting the use of technologies such as carbon capture and storage, and low- carbon hydrogen. In conclusion The Government is committed to creating, supporting and extending the awesome power of opportunity to all four nations in the UK, and freeports are part of the answer. Freeports will make it easier for those with the ambition and appetite to take risks and be bold, to do what they do best and create jobs, growth and solutions for the future. The freeport model — sea port example DP World London Gateway primed for freeport business Distant factory Up to 45 km Underdeveloped site Nearby factory Primary customs site, e.g. the port Underdeveloped customs site Road The sea Up to 45 km Existing site Customs site Tax site Outer boundary Customs and tax site boundaries not to scale