Problems relating to Trade and Investment on Brazil
10. Restrictive measures for operations in Free Trade Zones ("FTZs") and Special Economic Zones ("SEZs") |
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Issue |
Issue details |
Requests |
Reference |
| (1) Abrupt Amendment of the Interpretative Ruling for Grant of the Preferential Tax Treatment in FTZ | - The member firm had to change its production process due to the abrupt amendment of the interpretative ruling on PPB (Processo Produtivo Basico = Basic Production Process), which forms the requisite conditions for grant of the preferential tax treatment in the Manaus free trade zone. The member firm was compelled to change its production process. Since 2013, GOB has compelled the incorporation of interactive middleware Dinga on 75% of the television receivers manufactured. |
- It is requested that GOB ensures: -- consistency and stability in the law interpretation, and -- a sufficient moratorium period for adjustment with enterprises in making legislative changes. |
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| (2) Compulsory Acquisition of I/L on Imported Parts into FTZ | - In the Manaus region, GOB dispensed with the import licence (I/L) requirement on finished watches since 1 January 1997, however, requirement of the I/L on individual parts (i.e., speakers, power cords) continued. It is quite complex. | - It is requested that GOB repeals the I/L requirement. | - Customs Regulation - MDIC (Ministerio do Desenvolvimento, Industria e Comercio Exterior) Circulars Nos.12/99 and 9/00 - MDICE "General Foreign Trade System" |
| (3) Inflexible Import Customs Clearance Procedures in FTZ | - In the Manaus FTZ, GOB requires importers to designate destinations for the imported goods upon customs clearance. No change of destinations shall be admitted after the customs clearance is completed. | - It is requested that GOB permits change in destination of the imported goods after the customs clearance. | |
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