A Freeport is a designed geographic area within a country where normal tax and customs rules are suspended or simplified.
In the UK goods can be imported into a freeport without paying customs duty or import VAT, as the area is treated as being outside of the UK customs territory. VAT and duty are only due if the goods leave the Freeport and enter free circulation within the UK.
Businesses operating within a Freeport can benefit from a number of advantages. They are able to import goods without paying duty or VAT, are able to store or process them or re-export them without triggering UK import taxes. Freeports may also offer other incentives such as tax reliefs, simplified customs procedures and support for infrastructure and investment.