Teesport Granted Freeport Status

Teesport Freeport Status – March 2021

Highway Logistics is delighted at the news that Teesport has been granted Freeport status. As a Teesside based employer this news comes at a great time when expansion and further support to our  local economy is at the forefront of our growth strategy. 

In early 2019, the Mayor submitted a policy paper to Government championing a Freeport in Tees Valley, building on the recommendations of a 2016 policy paper by now Chancellor of the Exchequer Rishi Sunak MP, forming part of a campaign which launched in 2018 and was backed by more than 50 leading employers in the area. The paper found a Freeport on the River Tees could create up to 32,000 jobs and add £2billion to the regional economy.

What is a Freeport?

Freeports are secure customs zones located at ports where business can be carried out inside a country’s land border, but where different customs rules apply. They can reduce administrative burdens and tariff controls, provide relief from duties and import taxes, and ease tax and planning regulations. While located geographically within a country, they essentially exist outside its borders for tax purposes.

The Benefits Of A Freeport

Companies operating within free ports can benefit from deferring the payment of taxes until their products are moved elsewhere, or can avoid them altogether if they bring in goods to store or manufacture on site before exporting them again.

Businesses benefit from:

• streamlined planning processes
• a package of tax reliefs to help drive jobs, growth and innovation
• simplified customs procedures and duty suspensions on goods

A Northern Powerhouse

This is particular prevalent in relation to the logistics and supply chain industry we operate in. Highway Logistics is looking forward to helping the NE economy develop into a Northern Powerhouse.

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