BRAZIL APPROVED A DECREE TO MODERNIZE FREE TRADE ZONES IN THE COUNTRY

The new legal framework for free trade zones in Brazil, which was sanctioned in July last year to modernize the system across the country, was promulgated last Wednesday (1st) by the Presidency of the Republic through Decree No. 11,088/2022. The new legislation’s amendments are now on their way to being effectively implemented, which will bring more advantages for the ZPE Ceará, Brazil’s first Export Processing Zone. Among the novelties provided for in the new legal framework is the end of the export commitment, allowing the sale of all output to the domestic market, provided that it is subject to taxation that characterizes equal treatment with domestic production. Another example is the permission for companies to work with fiscal benefits inside the free trade zone limits, as long as their operations contribute to industrialization or generate export-bound products. According to Eduardo Neves, president of ZPE Ceará, the new legal framework brings greater flexibility, which is extremely important to attract new business to the Free Trade Zone facilities in Ceará.

Source: Datamar News