Wednesday, December 5, 2012

A Freeport is a tax and corruption free haven for investment

Comment from a reader on the post: What Does Freeport Really Mean in Subic?:
When the US Navy left, Subic was established as a freeport, similar to Hong Kong, Panama and many other freeport or special economic zones around the world. This usually means that goods can be brought in duty free as long as they remain inside the freeport or they are shipped back out the freeport. This allows companies, like Fedex, to tranship packages - bring them in fast with no customs, etc., reload them to another plane and get them out fast. It also allows companies to bring in raw materials duty free, hire local people to make things, and then export those finished products duty free. That is the idea behind a freeport. Freeports or special economic zones offer low or no taxes and are designed to be enclaves of good business practices and honest governance. That is what they are supposed to be. Bringing in vehicles duty free for your personal use, shipping in grocery items and liquor duty free for Manila tourists to buy, etc. All these other variations are perversions of the duty free model that have turned Subic into a corrupt and bankrupt freeport.

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