Rebeca Duran

Rebeca Duran

Staff Writer
The Brazil Business

Updated

Free Trade Zones in Brazil

Rebeca Duran

Rebeca Duran

Staff Writer
The Brazil Business

Updated

The Manaus Free Trade Zone is the best known in Brazil, but this doesn't mean there aren't other zones in the country. Find out about other Brazilian free trade zones in this article.

In the last few years, the Brazilian government created free trade zones in the north region of Brazil. The zones were created in order to promote the development of these sparsely populated and remote areas, by creating special regimes to import and export activities.

The zones are monitored and controlled by the Federal Revenue Secretariat, and administrated by the Superintendência da Zona Franca de Manaus (most known as SUFRAMA, which is the Superintendence of the Manaus Free Trade Zone).

Free Trade Zones of Brasiléia and of Cruzeiro do Sul

The ALCB and ALCCS are, respectively, the Free Trade Zones of Brasiléia and the Free Trade Zone of Cruzeiro do Sul. Both of them are comprised in the Brazilian State of Acre. The first one is located in a continuous area of 20 km² that includes the urban perimeter of the Brasiléia and Epitaciolândia municipalities. The second is composed by the municipality of Cruzeiro do Sul together with other areas comprised in a continuous area of 20 km².

Benefits: Tax Suspension and Exemption

The foreign goods that entered the Free Trade Zones of Brasiléia and Cruzeiro do Sul have the import tax, II, and the tax over industrialized products, IPI, suspended. The suspension can be converted to an exemption if the goods were designated to:

  • Internal consumption and purchase in the ALCB and ALCCS.
  • Processing of fished, livestock, mineral resources and raw materials of forest or agriculture origin inside the territories comprised in the free trade zone.
  • Agriculture and livestock activities and fish farming.
  • Implementation and operation of tourism and any type of service.
  • Storage to the commercialization in the external market.
  • Products of industrialization inside the ALCB and ALCCS territories.
  • Luggage accompanied by travelers, respecting the limits fixed by the Federal Revenue Secretariat.

The other foreign goods, including those used as parts or inputs of manufactured goods in ALCB and ALCCS, have the tax suspension mentioned above, but will be subject to taxation at the moment of their entrance in the Brazilian territory.

Free Trade Zones of Bonfim and of Boa Vista

The ALCB and ALCBV are, respectively, the Free Trade Zones of Bonfim and the Free Trade Zone of Boa Vista. Both of them are comprised in the Brazilian Stateof Roraima and have as purposepromote the development of border regions of the extreme North of Brazil andincrease the bilateral relations of Brazil with their neighboring countries.

Benefits: Tax Suspension and Exemption

The foreign goods that entered the Free Trade Zones of Bonfim and Boa Vista have the II and IPI suspended. The suspension can be converted to exemption if the goods were designated to:

  • internal consumption and purchase in the ALCB and ALCBV
  • processing of fished, livestock, mineral resources and raw materials of forest or agriculture origin inside the territories comprised in the free trade zone
  • agriculture and livestock activities and fish farming
  • implantation and operation of tourism and any type of service
  • storage to the commercialization in the external market.

The other foreign goods, including those used as parts or inputs of manufactured goods in ALCB and ALCBV have the tax suspension mentioned above, but will be subject to taxation at the moment of their entrance in the Brazilian territory.

Free Trade Zone of Guajará-Mirim

The ALCGM is the Free Trade Zones of Guajará-Mirim, comprised in the Brazilian State of Rondônia.ALCGM is located in the right bank of the river Marmoré in a continuous area of 82.5 km² involving the urban perimeter of Guajará-Mirim municipality.The free trade zone was created in order to promote the development of border regions in the extreme northwest of Rondônia and to increase the bilateral relations of Brazil with their neighboring countries.

Benefits: Tax Suspension and Exemption

The foreign goods that entered the Free Trade Zone of Guajará-Mirim have the II and IPI taxes suspended. The suspension can be converted to exemption if the goods were designated to:

  • internal consumption and purchase in the ALCGM
  • processing of fished, livestock, mineral resources and raw materials of forest or agriculture origin inside the territories comprised in the free trade zone
  • agriculture and livestock activities and fin fish farming
  • implantation and operation of tourism and any type of service
  • storage to the commercialization in the external market
  • activities of shipbuilding and ship-repair
  • luggage accompanied by travelers, respecting the limits fixed by the Federal Revenue Secretariat.

The other foreign goods, including those used as parts or inputs of manufactured goods in ALCGM, have the tax suspension mentioned above but will be subject to taxation at the moment of their entrance in the Brazilian territory.

Free Trade Zoneof Tabatinga

The ALCT is the Free Trade Zone of Tabatinga, comprised in the Brazilian State of Amazonas. ALCT is located in the left bank of the river Solimões in a continuous area of 20 km² involving the urban perimeter of Tabatinga municipality.The free trade zone was created in order to promote the development of border regions in the extreme northwest of Amazonas and to increase the bilateral relations of Brazil with their neighboring countries.

Benefits: Tax Suspension and Exemption

The foreign goods that entered the Free Trade Zone of Tabatinga have the II and IPI suspended. The suspension can be converted to exemption if the goods were designated to:

  • internal consumption and purchase in the ALCT
  • processing of fished, livestock, mineral resources and raw materials of forest or agriculture origin inside the territories comprised in the free trade zone
  • agriculture and livestock activities and fin fish farming
  • implantation and operation of tourism and any type of service
  • storage to the commercialization in the external market
  • activities of ship-building and ship-repair
  • products industrialization inside the ALCT territory
  • storage to re-exportation.

The other foreign goods, including those used as parts or inputs of manufactured goods in ALCT have the tax suspension mentioned above, but will be subject to taxation at the moment of their entrance in the Brazilian territory.

Free Trade Zoneof Macapá and Santana

The ALCMS is the Free Trade Zone of Macapá and Santana, comprised in the Brazilian State of Amapá. ALCMS is located in the área of the Macapá municipality and the area of the Santana municipality. The free trade zone was created in order to promote the development of Amapá and to increase the bilateral relations of Brazil with their neighboring countries.

Benefits: Tax Suspension and Exemption

The foreign goods that entered the Free Trade Zone of Macapá and Santana have the II and IPI suspended. The suspension can be converted to exemption if the goods were designated to:

  • internal consumption and purchase in the ALCMS
  • processing of fished, livestock, mineral resources and raw materials of forest or agriculture origin inside the territories comprised in the free trade zone
  • agriculture and livestock activities and fin fish farming
  • implantation and operation of tourism and any type of service
  • exportation r re-exportation to the external market.

The other foreign goods, including those used as parts or inputs of manufactured goods in ALCMS, have the tax suspension mentioned above but will be subject to taxation at the moment of their entrance in the Brazilian territory.