MANAUS FREE TRADE ZONE-ZFM
DECREE Nº 288, OF
FEBRUARY 28, 1967
Industry
Article 1st
“Free trade area of
import and export and of
special tax incentives,
established with the purpose
of creating inside of the
Western Amazon...”
Farming and Agriculture
Commerce
BRAZILIAN AMAZON
represents more than 59% of national territory
Mineral Resources:
Equivalent to 80% of the
Petroleum
5,03 millions of Km2
South American Amazon
Gas
21,04 millions of inhabitants
1/5 of the primary green
Bauxite
20000 Km of water ways
forests of the world
Cassiterita
Nióbio
Tropical humid weather = 26ºC a 36ºC
others
AREA OF OPERATION
DESCENTRALIZED UNITS
Free Trade Areas (03)
Regional Coordinations (07)
FISCAL INCENTIVES
FEDERAL GOVERNMENT INCENTIVES:
I.I. (Import Impost) – Reduction up to 88% on raw
materials destined to industrialization
I.P.I. (Impost on Industrialized Goods) – Exempt
I. R. (Income Impost) – Reduction of 75% of taxes on
income and additionals non refundable, calculated
based on the profit until 2013
PIS/COFINS (Social Integration Program/Contribution
for Social Security Financing) – Exemption on internal
operations of the Manaus Free Trade Zone
STATE GOVERNMENT INCENTIVE:
I.C.M.S. (Sales Impost) – Restitution: varying from 55%
to 100%
COMPENSATIONS DEMANDED BY
THE MODEL
In order to obtain the approval of industrial projects with annual
limits of import by the Administration Council (composed by
members of 10 Ministries of the Brazilian Government) the following
itens should be observed:
Execution of Basic Productive Process;
Job creation in the area, with the concession of social benefits
to the workers;
Complience
with
demands
of
product
technology
incorporation and of compatible production process with the
state of art;
Permanent trainning of the workforce in order to obtain
growing
levels
of
productivity
seeking
increasing
competitiveness;
Reinvestment of profit in the region;
Investment for scientific and technological development.
MANAUS
INDUSTRIAL
DISTRICT
MANAUS INDUSTRIAL DISTRICT’S LOCATIONAL INCENTIVES
SOME OF THE OVER 400 MAIN CORPORATIONS
STABLISHED IN MANAUS
INVESTMENT BY U.S. COMPANIES
AVX COMPONENTES DA AMAZÔNIA LTDA
BAHIA SOUTH INDÚSTRIA DA AMAZÔNIA LTDA.
PROCOMP AMAZÔNIA INDÚSTRIA ELETRÔNICA LTDA
PROSYS IND. E COM. DO AMAZONAS LTDA
RECOFARMA INDÚSTRIA DO AMAZONAS LTDA
BRASPOR MADEIRA LTDA
REXAM AMAZÔNIA LTDA
CLIMAZON INDUSTRIAL LTDA.
RIGESA DA AMAZÔNIA S.A
COMPANHIA BRASILEIRA DE BEBIDAS
ROYAL MAX DO BRASIL INDÚSTRIA E COMÉRCIO LTDA
SAMSUNG SDI BRASIL LTDA
CROWN TAMPAS DA AMAZÔNIA S.A
SONY BRASIL LTDA.
D.D. WILLIAMSON DA AMAZÔNIA LTDA
SONY MUSIC ENTERTAINMENT BRASIL INDUSTRIA E
COMÉRCIO LTDA
ENVISION INDUSTRIA DE PRODUTOS ELETRÔNICOS LTDA
FBL EQUIPAMENTOS E ACESSORIOS PARA ESCRITÓRIO LTDA
HARLEY-DAVIDSON DO BRASIL LTDA.
SONY PLASTICOS DA AMAZÔNIA LTDA
TECAL ALUMÍNIO DA AMAZÔNIA
THOMSON MULTIMIDIA LTDA
TRIPLE S COSMOPLAST DA AMAZÔNIA LTDA
INTESYS-METAGAL DA AMAZÔNIA IND. E COM. LTDA
INVENSYS APPLIANCE CONTROLS DA AMAZ. LTDA
VISTEON AMAZONAS LTDA
XEROX COMÉRCIO E INDÚSTRIA LTDA.
JAPANCOLOR DA AMAZÔNIA INDUSTRIA E COMÉRCIO LTDA
KODAK DA AMAZÔNIA IND. E COM. LTDA
MIKROTONER QUÍMICA DA AMAZÔNIA LTDA
MOLEX BRASIL LTDA.
NIDALA DA AMAZÔNIA LTDA
PC MICRO INDÚSTRIA E COMÉRCIO LTDA
PROCOMP AMAZÔNIA INDÚSTRIA E ELETRÔNICA LTDA
INVESTMENT
US$ 515,879,031
MANAUS INDUSTRIAL DISTRICT
RESULTS
ELECTRONIC
PRODUCTS
31,00%
WATCHES
1,00%
TWO WHEELED
VEHICLES
15,00%
CHEMICAL
PRODUCTS
11,00%
OTHERS
6,00%
Sales in 2003
METALURGY
6,00%
THERMOPLASTIC
PRODUCTS
6,00%
T. I. GOODS
22,00%
Sales
US$ 10.5 Billions
Work force
64.591
Exports in 2003 totaled US$1.3 Billion
MANAUS INDUSTRIAL DISTRICT
Labor Evolution
80.000
70.000
60.000
50.000
43.095
48.879
54.759
57.812
2001
2002
64.591
71.262
40.000
30.000
20.000
10.000
1999
Source: SUFRAMA
* Data until April
2000
2003
2004*
SOCIAL BENEFITS
Social benefits awarded to the workers are:
• Education;
• Transportation;
• Meals;
• Medical-Hospital Plan;
• Dental Plan;
• Day care and fun centers;
• Social Security.
EXPORTS GROWTH
IN US$ MILLIONS
1.300
1.400
1.064
1.200
1.000
773
851
800
600
430
275
400
200
1999
Source: SUFRAMA / SISTEMA ALICE
* Data until April
2000
2001
2002
2003
2004*
MAIN PRODUCTS EXPORTED IN 2003
1 CELLULAR TELEPHONE
2 MOTORCYCLES
3 COLOR TV´s
4 CONCENTRATE FOR SOFT DRINKS
5 KINESCOPE FOR COLORED TV
6 NON ELECTRIC SHAVERS
7 AIR CONDITIONER
8 DIGITAL SIGNAL DECODER
9 RAZOR BLADES
10 PARTS AND ACESSORIES FOR XEROX MACHINES
11 COLORED FILMS
MAIN DESTINATION OF EXPORTS IN 2003
US$ MILLIONS
E.U.A.
(756,400.)
58,19 %
COLÔMBIA
(71,500.)
5,50%
MÉXICO
(61,549.)
4,73 %
PERU
(34,984.)
2,69%
ARGENTINA
CHILE
(43,208.)
3,32 %
(116,732.)
8,98 %