Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the requirement that freeport operators meet obligations under the OECD Code of Conduct for Clean Free Trade Zones and the anti-illicit trade and security measures therein, what plans he has to ensure that (a) those operators are able to do so when the Freeport starts operating, (b) those operators continue to do so once the Freeport starts operating, (c) he is aware of any change in the effectiveness with which such responsibilities are discharged; how he plans to resource his approach to those issues; and if he will make a statement.

The UK plays a key role in tackling cross-border illegal activity and this is not going to change. Freeports are commonly used across the globe, and we have learned from these examples to build upon our current expertise.

Freeports will have to adhere to the OECD Code of Conduct for clean Free Trade Zones and must maintain the current obligations on Freeports set out in the UK’s Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

Freeport customs sites will be authorised by the UK Government and must meet robust security requirements to mitigate risks. These bodies will be able to withhold or withdraw authorisation if individual sites have not met the required standards. HMRC and Border Force will continue to conduct compliance checks on goods within the Freeport customs site.

Each Freeport Governance Body will need to maintain a record of all the businesses operating, or applying to operate, within the tax site. This record will need to be readily accessible by HMRC, the NCA, and Border Force operatives. It will also need to be kept up to date and contain information about the beneficial owner of the business.

It will also need to actively manage security risks across physical, personnel, and cyber domains, and work with MHCLG, HMRC, Border Force, the NCA, and Home Office to conduct an annual audit of the security measures in place and any breaches.