The Free Zone (Customs Site No. 2 Freeport East) Designation Order 2026

Published: Wed 9th Sept 26

Designated a new customs free zone at Freeport East and appointed Assan Panel UK Limited as its responsible authority for ten years.

This Order designates a specific area within Freeport East as a customs free zone for a period of 10 years and appoints Assan Panel UK Limited as the responsible authority.

It mandates that the authority maintain secure boundaries, provide facilities for His Majesty's Revenue and Customs (HMRC) at no cost to the government, and keep detailed accounts and records of all activities within the zone.

The Order applies to the designated responsible authority and governs the movement of goods and persons into and out of the specified site, requiring active monitoring to prevent unauthorized activities and ensure compliance with UK customs law.

Arguments For

The order states that the designation is made under the powers conferred by section 100A of the Customs and Excise Management Act 1979.
The document specifies that the responsible authority must maintain record-keeping systems and make them available to HMRC to ensure regulatory oversight.
Proponents within the Treasury framing suggest the order facilitates the operation of free zones by defining physical boundaries and appointing a specific corporate body to oversee compliance.
The order asserts that the responsible authority is required to provide necessary infrastructure and land for goods examination free of expense to the Crown, potentially reducing public administrative costs.

Arguments Against

Legal scholars might note that the designation is time-limited to 10 years, creating potential uncertainty for long-term industrial investment beyond 2036.
Affected parties or critics may argue that the requirement for the responsible authority to provide facilities "free of expense to the Crown" places a significant financial and maintenance burden on the private appointee.
Civil liberties or labor advocates might question the breadth of the authority's responsibility to ensure health and safety and prevent "unauthorised activity," which could lead to variations in enforcement standards between free zones.
Implementation difficulties could arise from the requirement for the authority to monitor and report breaches of Customs obligations by third parties operating within the zone.

Citation and interpretation

-(1) This Order may be cited as the Free Zone (Customs Site No. 2 Freeport East) Designation Order 2026.

(2) In this Order-

(a) a reference to an area 'shown edged and hatched in red' on a map is a reference to the hatched area extending up to the red edging, but not including the red edging itself;
(b) 'Customs obligation' has the same meaning as given in regulation 2(1) of the Customs (Import Duty) (EU Exit) Regulations 2018( b );
(c) 'HMRC' means His Majesty's Revenue and Customs;
(d) 'HMRC officer' means an officer of Revenue and Customs;
(e) 'the Special Procedures Regulations' means the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018( c );
(f) 'unauthorised activity' means an activity specified in regulation 3(2)(b)(v) or 3(2)(c) of the Special Procedures Regulations that is not carried out in accordance with an authorisation or approval under those Regulations.

This section establishes the official name of the Order and provides definitions for key terms used throughout the document.

It clarifies that map references exclude the red border lines and defines 'unauthorised activity' as specific actions taken without proper legal approval under customs regulations.

It also links the term 'Customs obligation' to existing 2018 import duty regulations.

Period of effect of Order

This Order has effect for a period of 10 years beginning with the day after the date on which it is made.

The legal status of the designated free zone is limited to a specific duration.

The designation remains active for exactly ten years, starting the day after the Order was signed on 9 September 2026.

Designation of area as free zone

The area shown edged and hatched in red on the map entitled 'Freeport East - Customs site No. 2' dated 17th February 2026( a ) is designated as a free zone.

This section formally creates the free zone by referencing a specific geographical map.

The land within the red-hatched area on the February 2026 map is legally classified as a customs free zone.

Appointment of responsible authority

The responsible authority for the free zone is Assan Panel UK Limited, incorporated on 16 March 2023 with the Company Number 14735449, whose registered office is C/O Srm, 59 Terrington Hill, Marlow, England, SL7 2RE.

The Order identifies Assan Panel UK Limited as the legal entity in charge of the free zone.

This company is held responsible for meeting the conditions and administrative requirements set out in the subsequent sections of the document.

Conditions imposed on responsible authority

The responsible authority must-

(a) keep separate accounts in respect of its role as responsible authority for the free zone;
(b) maintain a system for the keeping, preserving or updating of records required to be kept, preserved or updated by the responsible authority in accordance with regulation 44 (record keeping) of the Special Procedures Regulations;
(c) make any records for which the responsible authority is responsible, relating to the free zone and the activities carried on in it, available for inspection, access (including electronic) and copying for removal by an HMRC officer, at an office in the free zone or other agreed place;
(d) provide to any person authorised by the Treasury such information in connection with the free zone and the operation of it (which may include copies of the records referred to in paragraphs (b) and (c)) as that person may reasonably require;
(e) ensure that the area referred to in article 3 is enclosed and that entry and exit is permitted only at the points marked as access points on the map;
(f) provide, free of expense to the Crown, such accommodation and facilities including furniture, fittings and equipment as the Commissioners( b ) may reasonably require which must be properly maintained, heated, lighted, ventilated and kept clean by the responsible authority;
(g) provide, free of expense to the Crown, such area of land within the free zone as the Commissioners may reasonably require for the examination of goods and vehicles;
(h) provide and maintain, free of expense to the Crown, any appliances and other facilities which the Commissioners may reasonably require to enable an account to be taken of any goods or make any examination or search;
(i) comply with any requirement imposed by an HMRC officer under regulation 18E(9) (control of other activities in free zones by responsible authority) of the Special Procedures Regulations;
(j) take reasonable steps to ensure that no unauthorised activity is carried out in the free zone;
(k) take reasonable steps to ensure that any goods specified in a notice made under regulation 18C(2) (free zone businesses - conditions) of the Special Procedures Regulations are not brought into the free zone;
(l) take reasonable steps to ensure that no goods leave the free zone otherwise than in circumstances where their removal would be in accordance with provision made by or under the Taxation (Cross-border) Trade Act 2018( a );
(m) take reasonable steps to ensure that persons carrying out any activities in the free zone comply with any Customs obligation related to the free zone;
(n) notify HMRC as soon as reasonably practicable-
(i) of any breach of a Customs obligation by any person in relation to any goods that are or have been in the free zone, or have been declared for a free zone procedure under the Special Procedures Regulations, that it becomes aware of;
(ii) if it fails to comply with any condition or restriction to which its appointment as responsible authority is subject;
(iii) if there is a change in circumstances that is relevant to its appointment as responsible authority;
(o) notify HMRC of any planned construction in the free zone.

This section lists the mandatory operational requirements for Assan Panel UK Limited, including maintaining separate financial accounts and providing HMRC with full access to records and facilities.

The company must secure the site perimeter, restrict access to designated points, and provide land and equipment for customs inspections at its own expense.

Additionally, it must monitor activities to prevent illegal trade, report any breaches of customs rules to the authorities, and provide notice of any new construction within the zone.

Conditions relating to health and safety

Without prejudice to the responsibilities of persons occupying premises within the free zone, the responsible authority must take reasonable steps to ensure that the accommodation, facilities and working conditions within the free zone are safe and without risk to the health and safety of any persons in the free zone.

The responsible authority is legally required to ensure the safety of the working environment and facilities within the free zone.

This duty exists alongside the existing health and safety obligations held by individual businesses or persons occupying premises inside the zone.

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