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Table 1 Free Port Model Groups

From: Free ports: towards a network of trade gateways

Model Group 1 – Storage Arbitrage
1 Piraeus Model Importing goods that are stored without tax and then re-exported to other cities or taxed as they entered the city in which the free port was part of. Permitted the emergence of the first trade hubs.
Model Group 2 – Transformation Arbitrage
2.1 Delos / Hamburg Model Expansion of model 1 to include some logistics or light manufacturing services. Goods entering the free port could be different than the goods exiting because of some form of transformation is performed.
Model Group 3 – Added Value Arbitrage
3.1 Villefranche Model Included a larger range of services, such as banking, housing and fairs to support commercial activities.
Typical of free cities emerging in the Middle Ages.
3.2 Trieste Model Gateways to custom areas in which goods either enter before being transformed and imported in the domestic area or exit from the domestic custom area through the free port where they are transformed before being exported.
Trieste was a gateway for several continental European countries (some landlocked like Austria).
3.3 Geneva Model Importing goods, storing them and then re-exporting these goods without transformation. Suitable for high value goods that are susceptible to increase in value and subject to a high taxation regime under normal circumstances.
The Geneva free port is used to store high value goods without tax such as art objects, precious metals or wine.
Model Group 4 – Supply Chain Arbitrage
4.1 Hueneme Model Expansion of the Trieste Model in which there is either an entering flow or a separated exiting flow, but without re-exporting flows (goods can however be moved to another free port within the same customs entity). Act as commercial buffers since transformations and supply chain services are provided while goods are inside the free port.
Typical model of American foreign trade zones.
4.2 Barcelona Model Importing goods from foreign trade or from partner free zones either located in the domestic customs area or outside. Customs corridors linking a network of duty free zones. Goods coming from the same customs area are exported and goods coming from external customs areas are imported. Transformation can also take place in the zone.
Barcelona Free Port, servicing free zones in Cataluña and with a customs corridor with Tanger-Med Free Port.
4.3 Kaohsiung Model Goods enter either from the domestic area or from the outside, are then stored and transformed and finally are either imported or re-exported.
Typical of Asian emerging economies and often represented as a free trade zone because it does not allow heavy transformations and other services like in export processing zones.
4.4 Dakar Model Importing and re-exporting goods without transformation. A storage buffer for goods bound for another customs entity. The services provided are directed toward other free zones in landlocked countries.
Dakar free port services landlocked countries such as Mali.
Model Group 5 – Zonal Specialization Arbitrage
5.1 Mauritius Model Similar to model 4.2 except supply chain services are offered in the free port and transformation and IT services offered in a network of free zones in the domestic customs area.
5.2 Dubaï Model Similar to model 4.3, but offering a wider range of services beyond logistics and transformation, such as conference centers, marketing, law and consulting firms which are providing managerial services to supply chains.
Hong Kong, as a free port, serviced a similar function since its foundation in the 19th century.
5.3 Tanger-Med Model Importing, transforming and re-exporting goods with all the supply chain services located in a network of free zones.
Tanger Region has an automotive production zone, an industrial processing zone and an IT zone, including promotional agreements with the free port of Barcelona.
Model Group 6 (Prospective) – Network of Free Ports