Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-04-07
Wheels of Government
Wheels Of Government
Free Port Business Spurred
BY Foreign 7rode Zones Board
By Jock Jones'

lars. But, unlike most, he hopes
to see the dollars go to others
as a boon to foreign trade.
Mr.. Marrone, as executive di-
rector, supervises the Foreign
Trade Zones Board. This is one
of those Government agencies
which, though a shade below
cabinet level, plays an impor-
tant role in developing policy
and carrying out administrative
duties in these days of complex
government
The creation, last December,
of the job Mr.. Marrone fills is
indicative of the adminiStra-
tons emphasis on the develop
ment of foreign trade.
The boards work gets valua-
BILE dollars into the hands of
foreign observation-disclosures that
can be re-spent to buy Ameri-
can-made products. The last
fiscal year saw $146 million
change hands.
The trade that comes under
the boards scrutiny differs from
regular foreign commerce. The
trade flows through five "free
ports" -where goods can be
landed, stored, processed, re-
shipped and even manufactured
without payment of customs
duties or going into bonded ware
houses.
Cuts Red Tape and Costs
In other words, the operation
is designed to cut red tape and
expense, and facilitate the
movement of goods in inter-
national trade.
It is Mr.. Marrone'S job to spur
expansion of that business in
the existing trade zones. and,
if feasible, to help set up others.
The free port" concept is not
new to world commerce, but it
is comparatively young in United
States commercial history. Sim
play stated, the foreign trade
zones are ports within ports
areas set up at major seaports
where goods can be landed with
out going through customs reg
ulations.
The ports where such zones
operate now are New York. New
Orleans, San Francisco, Seattle,
Wash, and Los Angeles. Until
last year, there was a sixth
an inland zone at San Antonio's
airport in Texas. But the inter-
est and the trade weren't great
enough to support it.
Mr.. Marrone said the San An
tonic experience does not pre-
clude the establishment of in
land foreign-trade zones. if the
trade is great enough to sup
port them.
Great Lakes Possibility.
Some shipping experts expect
that freSh-water ports on the
Great Lakes will qualify for for
eign-trade zones if and when the
st. Lawrence Seaway opens that
area to larger ocean-going YES
sells. Toledo and Detroit business
interests have expressed interest
in the past in setting up foreign
trade zones at those ports.
Baltimore and Norfolk. Va,
have been deemed ideal for for
eign-trade zones, because the
general cargoes which come into
those ports are adapted to use
of such zones.
1.-THE future is unlimited" Mr..
Marrone said.
Across Mr.. Marrone's desk in
the Commerce Building, and that
of Thomas E. Lyons. the boards
executive secretary, come COM
plants and inquiries about the
port operations
One such inquiry last week was
from a Dutch trader, who wanted
to know if he could borrow the
necessary dollars in England to
pay storage and handling fees
at a trade zone here.
The answer was that that
would be up to the banks in
England-but the board sug-
geSted that it might be simpler
to go ahead and ship the goods,
then get a loan from an Ameri-
can bank on the freight receipts
"a common practice.
Varied Products Handled
These ports within ports han
die everything from Madagascar
beeSwax to Afghanistan pistachio
nuts. Their advantages to men
here and abroad who deal in in
ternational trade are numerous.
For one thing. goods that en-
ter the zones are free from Gus
toms duties. Such duty is not
paid unless the goods are later
shipped into commercial chan
nels in the United States-some-
times in a form different from
the one in which they entered
the zone.
Thus a shipper can send bulk
materials to one of the zones and
repackage it after it arrives, and
have all the time he wants. There
is no limit on storage of goods in
a foreign-trade zone; there il
a limit in a bonded warehouse.
This last is of particular
advantage to those who want
to ship liquor here for aging.
1t can be stored indefinitely in
the zones and the customs duties
don't have to be paid until it
is shipped in as the bottled
product.
And by going through the
foreign-trade zones, foreign mer-
chants don't have to wait until
they have a definite order be-
fore shipping goods to the
United States. It can be done
on a consignment basis. Most
of the goods brought in this way
is on display in the zones, and
is sold at auction. either to