Free port of Vladivostok

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Free port of Vladivostok

In December 2014 in address to the Federal Assembly, Russian President Vladimir Putin has offered to provide a free port of Vladivostok.

Free port – a defined area, which has the right to duty-free import and export of goods. Free Port is excluded from the customs territory of a State.

The regime that is comparable to a free port, operates in most international airports with the zone duty free.

Free Port Vladivostok – not a new phenomenon. City has had the status of a city in the period from 1861 to 1909.

Free port of Vladivostok
Free port of Vladivostok

What does it mean “free port“?

In practice, the implementation of the mechanism of a free port in Vladivostok means the following:

– provide significant benefits to investors who will implement the projects under the free port. In particular, the introduction of the single tax in the entire 3-10%;

– reduce the cost of ship calls;

– introduction of simplified procedure for obtaining visas for foreigners for up to eight days. This measure, on the one hand, will promote the growth of the tourist flow, on the other hand, would increase the interest of foreign investors in the region.

The path to a free port is open
The path to a free port is open
The Law on Free Port of Vladivostok

The Law on Free Port of Vladivostok will cover not only Vladivostok, but also in a number of municipalities of Primorsky Krai.

It is assumed that residents of the area will be ports, airports, companies working in the tourism industry. In addition, the number of residents can enter and other enterprises under certain conditions.

The status of “free port” Vladivostok will be assigned for a period of 70 years.

Free Port: world practice

In Russia, at the moment there are no areas with regime of “free port” in the classic sense. In the world, this practice is quite common. The mechanism of “free port” is particularly popular in China.

In particular, Shenzhen in just 20 years thanks to this turned into a metropolis with a population of about 15 million people.

Hong Kong and Singapore also developed rapidly thanks to a similar legislative initiatives.

The history of a free port in Vladivostok

And finally, a few words about the role of “free port” for Vladivostok. This status of the city had from 1861 to 1909. As a result, in the early 20th century, just think, Vladivostok was the largest port in the world in terms of cargo turnover!

The city rushed to foreigners: because of them in Vladivostok was built first in the world, think again on this fact, a modern shopping center. This is the current GUM Vladivostok.

As written by historians in those days in Vladivostok «every American thing  s three times cheaper than in America».

In fact, a free port turn an ordinary military post to the city of Vladivostok.

So history repeats itself: the free port of Vladivostok comes back!