Post-Brexit, international trade with the United Kingdom has undergone significant changes. However, this new landscape has also opened up fresh opportunities for Italian businesses thanks to the introduction of special economic zones, known as Freeports.
For export managers, entrepreneurs, customs agents, and companies trading with the UK, understanding the fiscal and logistical benefits of these areas can mean the difference between struggling with Brexit-related challenges and turning them into strategic growth levers.
What Freeports Are and How They Work
I Freeports are special economic zones located within the UK that operate under a preferential customs and tax regime. Strategically placed near seaports and airports, these zones were created by the UK government to boost the country’s competitiveness as a global logistics hub post-Brexit.
In practice, goods can enter a Freeport, be processed, transformed, stored, or re-exported without immediately incurring customs duties or VAT. Taxes are only applied if and when the goods leave the zone and are placed on the UK market.
This setup offers flexibility, efficiency, and significant economic advantages for businesses that import and export goods through the UK.
Special Economic Zones: Business Advantages
The introduction of Freeports is a strategic opportunity for companies trading with the UK. Key benefits include:
- Faster customs clearance thanks to reduced bureaucracy
- Lower exposure to duties and VAT during goods transit
- Easier access to tax incentives and local funding for investments within the zones
- A regulated yet flexible environmentdesigned to attract capital and optimize supply chains
I Freeports are ideal for assembly operations, repackaging, light processing, or inventory management while awaiting customs clearance.
Tax Benefits and Duty Reductions
Among the main advantages of Freeports are tax exemptions on corporation tax, customs duties, and VAT for goods that are imported and re-exported. In many cases, businesses also benefit from incentives for acquiring capital goods or hiring staff within the designated areas.
For an Italian export manager or company trading with the UK, this translates into higher profit margins, more competitive pricing, and lower capital tied up in customs.
Logistics Benefits: Simplified Storage and Shipping
From a logistics standpoint, Freeports feature modern infrastructure connected to major transportation hubs. Companies that establish a presence or bonded warehouse within these zones can optimize storage, speed up inbound and outbound flows, and maintain centralized inventory control.
In this context, smart delivery tools like Hubrise’s SEND2U play a crucial role.
How to Access Freeports in the UK
The UK government has designated several Freeport areas across the country, including Thames, Liverpool City Region, Teesside, and East Midlands. Each Freeport has unique characteristics, industry partners, and logistics specializations.
To benefit, companies can:
- Establish an operational base (e.g., warehouse, consolidation hub, light manufacturing facility) within a Freeport zone
- Obtain customs authorization to operate as a bonded entity within the zone
- Register with UK authorities, following simplified procedures for foreign businesses
- Partner with local logistics providers to manage outsourced operations (e.g., fulfillment, repackaging, last-mile delivery)
In this framework, with Hubrise is a strategic partner for Italian companies looking to enter the UK market via Freeports. Thanks to its expertise in logistics and its collaboration with European operators like Hermes Fulfilment, Hubrise can orchestrate complex international supply chains while maintaining a local presence in Italy and providing a single point of contact for the export manager.