After months of deliberation and speculation the UK and Scottish governments have finally announced Scotland’s two successful green freeport bidders.
Port of Cromarty Firth and the Firth of Forth were chosen from among five candidates.
Special tax status can be awarded to businesses within the 45km (28 miles) outer boundary of the new freeports, although this may be waived in exceptional circumstances.
Read more: What is a green freeport?
There will be a number of designated sites qualifying for tax relief.
Anyone within the freeport areas can apply, provided they can demonstrate robust security standards and the impact their business has on the renewables sector.
What’s in it for your business?
- The ability to import and store goods without paying duties or completing full customs declarations.
- If these goods are re-exported, there is no requirement to pay duties.
- Scottish green freeports and their cousins south of the border are all interlinked, so goods can be moved between them by declaration of conduct, while maintaining their tax status.
Six ways your business can benefit from new green freeport status
- Open lines of communication as soon as possible and keep them open. Contacting the green freeport authorisation holder should be your first move.
- Check the geographical parameters – is your business within the catchment area of 45km?
- Does your business meet the requirements for tax site status? You must be linked to the renewables sector, or in some way be involved in the drive towards achieving the Scottish Government’s target of net-zero emissions by 2045. You will also need to demonstrate that all IT systems, safety and security are of a sufficiently high standard.
- Did you know that green freeports are inventory linked? This means you need to have access to a compliant system to operate under the terms of the green freeport agreement.
- Safety and security are major components of a successful green freeport. Can your company meet the required standards? Companies with Authorised Economic Operator (AEO) status should readily meet these. AEO status is an internationally recognised quality mark that shows your business’s role in the international supply chain is secure and has controls that meet Authorised Economic Operator benchmark criteria. It would be worth applying for AEO status if your business does not already have it.
- Register your interest in becoming a special tax site via the online form whenever this becomes available.
Stuart Wood is an account manager with Bethan Customs Consultancy, based in Oldmeldrum, Aberdeenshire. The firm specialises in customs and supply chain support and training.