Free trade zones at U. S. ports

Title

Language

English

Source

The American Chamber of Commerce Journal Volume XVIII (No. 11) November 1938

Year

1938

Rights

In Copyright - Educational Use Permitted

Fulltext

November, 1938 Free Trade Zones at U. S. Ports A year ago President Quezon named a temporary committee to study and report on the subject of a free zone at Manila for ocean-borne goods, and got from the committee counsel to the effect that Manila’s current port facilities suffice for the time being, while a free trade zone might become advisable after the Islands are separated from the United States. American goods now come into the Islands free of duty, of course, and in general, conditioned for use. Foreign goods enjoy bonded warehouse facilities and also come in completely conditioned for use, as a general rule. The extent to which Manila may be put to use as a transit point for warehousing goods ultimately intended in part for im portation into the Islands and in part for other mar kets nearby is problematical. There seemed to be some indication that if a free trade zone were created, some manufacture from raw products of the Commonwealth might be undertaken at it, and in some cases these products would be utilized together with imported products, and the manufactures thus turned out would pay the Philippine duties on their foreign-materials content if imported into the Philip-, pine market. The committee, with Ramon J. Fernan dez its chairman, advised that an ample site for a future possible free trade zone be reclaimed by the Common wealth in the course of its reclamation work on the bay shore north of the Pasig river. Naturally, the commit tee was very conservative, and from the first meeting it was clear that maintenance of the most favorable trade relations with the United States was paramount in mem bers’ views to any other desideratum. At that time, a year ago, the zone at New York was . very new and Mobile’s in Alabama had not been opened. Data available to' the committee were largely provided by one member, J. Bartlett Richards, the American trade commissioner; all very helpful, at the same time Com missioner Richards was most conservative as to any pos sible good such a zone might do Manila for the Islands. His views have not changed since, but further informa tion on other zones is now accessible and seems worthy to be laid before our readers. It derives from state ments made recently to a meeting at San Francisco of the Pacific Coast Association of Port Authorities, by Thomas E. Lyons, executive secretary of the ForeignTrade Zones Board. Only data from American ports will be used. .Vea; York.—The first American zone was estab lished in this city, and began functioning, it is believed, late last year, the authorizing act of congress dating in 1935. In April this year goods at the New York zone inventoried $764,781, and additional goods weighing 512 tons and worth $258,716 were handled during the month, the customs collections on goods imported through the zone being $12,000 for the month. By June 30 the inven tory was $1,800,000 and goods received and delivered by the zone during the month inventoried $694,744. Tonnage had gone up from 512 in April to 4,461 in June, when the customs revenue collect at the zone was $19,000. Secretary Lyons says that if this keeps up the New York zone’s facilities must soon be greatly en larged. On a typical day, 214 workers were employed. During the month, 62 lighters and 8 ships called at the zone. Canned Argentine beef received at the zone in heavy wood cases were unpacked, relabeled as buyers wanted So readily may anyone on beholding this quiet rural scene conjure up thoughts of COMPLACENCY, calm tranquility and all kindred reflections. Freed from all worries of business transac tions for one fleeting moment because of this re versing entry on a refreshing item—the busy desk man may breathe deeply—relax and be alive again to the beauties of the outside world. In short, that repose which is to the businessman the greatest of all blessings . . . and the rarest. Just is it so—when MARITIMA moves into your ken and acquaintance—will you experience a soothing satisfaction for the SERVICE it ren ders. Thus, at your disposal are all the facilities for both rest and P^y—whichever you want, whenever you want it. And ever at your service is a courteous staff—at table, a cuisine that makes each meal a treat to anticipate. SPEED is a by-word you may presume to get. Available with thirteen well-equipped ships for passage and freight connecting thirty-one ports of call south of Manila, Maritima agents are ever ready to serve YOU. Just say MARITIMA— and leave the rest to MARITIMA. For full information apply: 109 Juan Luna Tel. 4-98-24—4-98-11 (gARITIMA LV RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 44 THE AMERICAN CHAMBER OF COMMERCE JOURNAL November. 19 38 The Philippine Guaranty Company, Inc. (Established in 1917) SURETY BONDS— We execute Bonds of various kinds, especially CUSTOMS BONDS, FIRE ARMS BONDS, INTERNAL REV ENUE BONDS, PUBLIC WORKS BONDS for Contractors, COURT BONDS for Executors, Administrators and Receivers and BAIL BONDS in criminal cases. FIRE INSURANCE— In the Philippine Islands LOANS— Secured by first mortgage on improved properties in the City of Manila on the monthly amortization plan. Phone 2-24-31 Second Floor INSULAR LIFE BLDG. P. 0. Box 128 MANILA them to be for the trade, and packed in cartons. Duty being paid, this beef, sold at the zone and through its facilities, was imported into the United States. Bales of cotton and jute rugs also found the zone a haven of convenience, and one rug importer moved his main of fice to the zone and kept only a small sales office in the city. Rugs are examined by buyers at the zone, duty paid only on such lots as are sold. Another importer was saved from being whipsawed, by use of the zone. He had cod livei’ oil, supposedly, which goes into the United States free of duty, but the agriculture department makes careful inspections and slaps on heavy penalties if the oil is not up to U. S. specifications. This saved the would-be importer excessive fines, and gave him evidence on which to recover from sellers who had misnamed the oil. It is interesting to the Philippines to learn that Bra zil nuts are discharged and ripened at the zone, losing moisture in the process and saving importers about $3.65 a ton in duty on that account An American importer and an American bottler employing American labor ex clusively are handling South African brandy at the zone, the bottler having opened a works there. The brandv arrives 114 proof, is processed down to 86 proof and duty paid on the lower figure (duty being on a minimum of 100 proof). Secretary Lyons foresees vast expan sion of this sort of trade, with wholesale supplies of .liquors of all sorts in casks warehoused at the zone. Su matran leaf tobacco is handled similarly, storage con ditions being ideal and duty falling only as importations are effected, a duty of $1.50 a lb., and a material item per bale. Mobile.—Secretary Lyons does not take into account all circumstances leading to revival of waterborne com merce at Mobile, one factor being the Wages & Hours bill, another a reshuffling in the steel industry that .favors revival of Alabama’s iron-and-steel industrial facilities. Mobile’s zone was opened July 21, preceded by a stimulus to her port business because of the facts brought out in the required preliminary study and re port requisite for approval of a zone project. Water borne tonnage at Mobile upped 35% in 1937 over 1936, its value 60/?. Industries have been attracted to Mo bile, Secretary Lyons says, because of the zone. It is too early of course for proofs that the Mobile zone will actually be successful and contributory to the port’s pros perity. About this time next year we will try to get the latest information on these zones from New York, Mobile, and also San Francisco should the zone there then be open, in order to keep our readers abreast of the movement at American ports. Data from the European ports would be superfluous, zones and free cities being an old story there. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL

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