The Committee for Economic Development, Industry and Commerce approved on Wednesday (5) Bill of Law 4705/09, which authorizes the Executive branch to establish an export processing zone (EPZ) in the city of Tabatinga, Amazonas.

For the rappourteur, deputy Silas Brasileiro (PMDB-MG), once socioeconomic indicators in the Northern Region are the lowest in the country, nothing is more natural than prioritizing the installation of EPZs in that location.

According to Law 11.508/08, which establishes the tax, exchange and administration system of export processing zones, they must fulfill the purpose of reducing regional disparities, as well as promoting technology diffusion.

Encouraging development
"The EPZs can be an important tool to foster development, especially in regions with great economic potential, but need encouragement to perform it", says Brasileiro.

Data show that there were 3 000 export processing zones in the world in 2002. In China, these zones would employ over 30 million people. It is believed that, according the senator, these export processing zones constitute the main responsible factor for average growth above 10% annually presented by the Chinese economy over the past 15 years.

Benefits
Under Brazilian law, companies located in EPZs have to suspend federal taxes on raw materials, intermediate products and packaging materials. The benefits, however, are granted solely to produce goods for export.

These enterprises are also entitled to the license or authorization exemption of federal agencies, except the sanitary, interests of national security and environmental protection controls.

The law prohibits the production of weapons or explosives of any kind, except with the prior approval of the Army Command. The production of radioactive material also requires prior authorization of the National Commission of Nuclear Energy (CNEN).

Proceduring
The project will be further reviewed by committees on Finance and Taxation, Constitution and Justice, and Citizenship.

Report - Maria Neves
Edition - Newton Araújo
Translation - Grupo Solución-SP Language/Suzana Pinheiro Lara