BRAZIL: THE NEW DESTINATION TO RESHORING

Publicado em 26/06/2020 16h07 Atualizado em 29/11/2021 10h00

Brazilian Export Processing Zones (EPZs) are free trade areas aimed at attracting the implantation of companies engaged in the production of goods and services to be traded worldwide.

Companies located in Brazilian EPZ are able to export tax free, without collecting duties or indirect taxes on previous stages of production or sale.

Some states and municipalities in Brazil also do not charge indirect taxes of companies which are under EPZs on their territories.

Additionally, EPZ Regime provides administrative benefits in export and import operations, with the exemption of licenses or authorizations to import raw material and capital goods. However, these exemptions are not applied at the sanitary, national security, and environmental measures.

 

 

 Legal certainty is also an important attribute to this regime, considering that it is granted for 20 (twenty) years and there can be extensions for equal periods.

In 2021, the Regime was improved to allow that:

          100% of the production of an EPZ industrial company be destined to the domestic market as long as the suspended taxes are paid

             The private sector proposes the creation of an EPZ

             EPZ be stablished in non continuous areas

             Services benefit from the Regime, either by only exporting services or providing services related to the production of goods to be exported.

Brazil currently has 14 EPZs in effective implementation process in 13 Brazilian states:

  

1    North Region: Senador Guiomard (Acre state), Boa Vista (Roraima state), Araguaína (Tocantins state);

2    Northeast Region: Ilhéus (Bahia state), Pecém (Ceará state), Suape (Pernambuco state), Parnaíba (Piauí state), Macaíba (Rio Grande do Norte state);

3    Midwest Region: Cáceres (Mato Grosso state), Bataguassu (Mato Grosso do Sul state); 

4    Southeast Region: Açú (Rio de Janeiro state); Teófilo Otoni (Minas Gerais state), Uberaba (Minas Gerais state),; e

5    South Region: Imbituba (Santa Catarina state).

 

 

 The industrial projects established in Brazilian EPZ must be greenfield investments The start-up of a company operation into ZPE depends on the EPZ administrator acceptance; the approval of industrial projects by the National Council of Export Processing (CZPE); and the previous authorization by Customs and Environmental Brazilian authorities.

For more information on Brazil-s EPZ regime please contact us:

Natasha Miranda

Executive Secretary of the Council for Exporting Processing Zones

Phone: +55 61 2027.7528 or +55 61 2027.7442

seczpe@economia.gov.br



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