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Article 1 st “Free trade area of import and export and of special tax incentives,

MANAUS FREE TRADE ZONE-ZFM. DECREE Nº 288, OF FEBRUARY 28, 1967. Article 1 st “Free trade area of import and export and of special tax incentives, established with the purpose of creating inside of the Western Amazon...”. Commerce. Industry. Farming and Agriculture.

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Article 1 st “Free trade area of import and export and of special tax incentives,

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  1. MANAUS FREE TRADE ZONE-ZFM DECREE Nº 288, OF FEBRUARY 28, 1967 Article 1st “Free trade area of import and export and of special tax incentives, established with the purpose of creating inside of the Western Amazon...” Commerce Industry Farming and Agriculture

  2. BRAZILIAN AMAZON represents more than 59% of national territory Mineral Resources: Petroleum Gas Bauxite Cassiterita Nióbio others Equivalent to 80% of the South American Amazon 1/5 of the primary green forests of the world Tropical humid weather = 26ºC a 36ºC 5,03 millions of Km2 21,04 millions of inhabitants 20000 Km of water ways

  3. AREA OF OPERATION DESCENTRALIZED UNITS Free Trade Areas (03) Regional Coordinations (07)

  4. FISCAL INCENTIVES

  5. COMPENSATIONS DEMANDED BY THE MODEL • In order to obtain the approval of industrial projects with annual limits of import by the Administration Council (composed by members of 10 Ministries of the Brazilian Government) the following itens should be observed: • Execution of Basic Productive Process; • Job creation in the area, with the concession of social benefits to the workers; • Complience with demands of product technology incorporation and of compatible production process with the state of art; • Permanent trainning of the workforce in order to obtain growing levels of productivity seeking increasing competitiveness; • Reinvestment of profit in the region; • Investment for scientific and technological development.

  6. MANAUS INDUSTRIAL DISTRICT

  7. MANAUS INDUSTRIAL DISTRICT’S LOCATIONAL INCENTIVES

  8. SOME OF THE OVER 400 MAIN CORPORATIONS STABLISHED IN MANAUS

  9. INVESTMENT BY U.S. COMPANIES PROCOMP AMAZÔNIA INDÚSTRIA ELETRÔNICA LTDA PROSYS IND. E COM. DO AMAZONAS LTDA RECOFARMA INDÚSTRIA DO AMAZONAS LTDA REXAM AMAZÔNIA LTDA RIGESA DA AMAZÔNIA S.A ROYAL MAX DO BRASIL INDÚSTRIA E COMÉRCIO LTDA SAMSUNG SDI BRASIL LTDA SONY BRASIL LTDA. SONY MUSIC ENTERTAINMENT BRASIL INDUSTRIA E COMÉRCIO LTDA SONY PLASTICOS DA AMAZÔNIA LTDA TECAL ALUMÍNIO DA AMAZÔNIA THOMSON MULTIMIDIA LTDA TRIPLE S COSMOPLAST DA AMAZÔNIA LTDA VISTEON AMAZONAS LTDA XEROX COMÉRCIO E INDÚSTRIA LTDA. INVESTMENT US$ 515,879,031

  10. ELECTRONIC PRODUCTS 31,00% OTHERS 6,00% Sales in 2003 METALURGY 6,00% WATCHES 1,00% THERMOPLASTIC PRODUCTS 6,00% TWO WHEELED VEHICLES 15,00% T. I. GOODS 22,00% CHEMICAL PRODUCTS 11,00% Sales US$ 10.5 Billions Work force 64.591 Exports in 2003 totaled US$1.3 Billion MANAUS INDUSTRIAL DISTRICT RESULTS

  11. Direct and Indirect Jobs: 427 thousand MANAUS INDUSTRIAL DISTRICT Labor Evolution Source: SUFRAMA * Data until April

  12. SOCIAL BENEFITS Social benefits awarded to the workers are: • Education; • Transportation; • Meals; • Medical-Hospital Plan; • Dental Plan; • Day care and fun centers; • Social Security.

  13. EXPORTS GROWTH IN US$ MILLIONS Source: SUFRAMA / SISTEMA ALICE * Data until April

  14. MAIN PRODUCTS EXPORTED IN 2003 1 CELLULAR TELEPHONE 2 MOTORCYCLES 3 COLOR TV´s 4 CONCENTRATE FOR SOFT DRINKS 5 KINESCOPE FOR COLORED TV 6 NON ELECTRIC SHAVERS 7 AIR CONDITIONER 8 DIGITAL SIGNAL DECODER 9 RAZOR BLADES 10 PARTS AND ACESSORIES FOR XEROX MACHINES 11 COLORED FILMS

  15. E.U.A. (756,400.) 58,19 % COLÔMBIA (71,500.) 5,50% MÉXICO (61,549.) 4,73 % PERU (34,984.) 2,69% ARGENTINA (116,732.) 8,98 % CHILE (43,208.) 3,32 % MAIN DESTINATION OF EXPORTS IN 2003 US$ MILLIONS

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