Manaus Free Zone

Manaus Free Zone: Business and
Investment Opportunities in the
Amazon
SEPTEMBER
2009
BRAZILIAN AMAZON
covers over 59% of the country
5,030 million Km2
23 596 million
23,596
illi iinhabitants
h bit t
20,000 Km of waterways
Equivalent to 80% of the Amazon total area
1/5 of the primary green
forests of the world
Tropical humid climate = 26ºC to 36ºC
Mineral Resources:
Petroleum
Petroleum,
Gas, Bauxite,
Cassiterite,
Niobium,
and others
LOCATION IN RELATION TO THE MARKETS
Capital
Road route
Sea route
Fluvial route
Sea and Air route
Air route
NORTH
AMERICA
T k
Tokyo
ATLANTIC
OCEAN
Los Angeles
ASIA
Hong Kong
EUROPE
Miami
Taipei
T i
Taiwan
CENTRAL
AMERICA
PANAMA
CANAL
AFRICA
Caracas
Manaus
Belém
Porto
Velho
PACIFIC
OCEAN
São Paulo
LATIN AMERICA AND
CARIBBEAN POPULATION:
POPULATION
574 million inhabitants
CREATION OF THE MANAUS
FREE TRADE ZONE
(Law no. 3.173/1957 amended by article 1st. of Decree-Law no. 288/1967)
“The Manaus Free Trade Zone is a free import and export trade area
where special fiscal incentives apply, set up with the objective of
creating
g in the Amazon Region
g
an industrial, commercial and
agricultural center under economic conditions that allow its
development, given local factors and the great distance separating it
from its markets”.
SUFRAMA - THE GOVERNING BODY
OF THE MANAUS FREE TRADE ZONE
SUFRAMA is a Public Administration agency affiliated to the
Ministry of Development, Industry and Foreign Trade (MDIC).
It manages and controls the fiscal incentives granted to the
companies established in the Manaus Free Trade Zone,
besides promoting development strategies for Western
Amazon. It thus has the role of an investment promoting
agency for the area.
AREA OF THE MODEL – WESTERN AMAZON
AND AMAPÁ
GUIANA
VENEZUELA
Boa Vista
SURINAME
Bonfim
COLÔMBIA
RORAIMA
EQUADOR
AMAPÁ
Macapá-Santana
Manaus
Tabatinga
AMAZONAS
PERU
Cruzeiro
do Sul
Porto Velho
ACRE
Rio Branco
BrasiléiaEpitaciolândia
RONDÔNIA
Guajará-Mirim
SUFRAMA
Free Trade Zones and Manaus Free
Trade Zone
BOLÍVIA
BRASIL
FISCAL INCENTIVES
FEDERAL
IMPORT TAX (II) - 88% reduction on the inputs of industrial goods
goods. In the case of
informatic goods, reduction is proportional to the national added value.
TAX ON INDUSTRIAL PRODUCTS (IPI) – Total exemption.
INCOME TAX ((IR)) - 75% reduction on the income tax. Exclusivelyy for
reinvestments. Common to all Legal Amazon Region.
SOCIAL INTEGRATION PROGRAM (PIS) and SOCIAL SECURITY FINANCING
CONTRIBUTION (COFINS) – Zero-rated tariff for incoming goods and interindustry internal sales
sales, and an aliquot of 3,
3 65% (with exceptions) on the finished
goods sales to the rest of the country.
STATE (IN EACH STATE OF THE UNION)
VALUE ADDED TAXES ON SALES AND SERVICES (ICMS) – Incentive credit
from 55% to 100%. In all cases there are some contributions to funds for support
of high education, tourism, R&D and others.
MANAUS INDUSTRIAL DISTRICT
Locational Incentives
PORT AND AIRPORT INFRASTRUCTURE
•
•
•
PUBLICLY OWNED PORT:
- PORT OF MANAUS
Largest floating port in the world
orld
Total area: 94,923 m²
PRIVATE PORTS:
- SUPERTERMINALS
Storage Area: 8,000 m²
- CHIBATÃO
Storage Area: 17,600 m²
- AURORA EADI
Storage Area: 9,000 m²
EDUARDO GOMES
INTERNATIONAL AIRPORT:
- CARGO TERMINAL
Total area: 49,000 m²
Third largest airport in Brazil in terms
of cargo
SUPERTERMINALS
COMPENSATIONS DEMANDED
BY THE MODEL
In order to obtain the approval of industrial projects with annual limits of
import
p
byy the Administration Council ((composed
p
byy 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;
• Reinvestiment of profit in the region;
• Investiment for scientific and technological development.
MANAUS INDUSTRIAL PARK
GOVERNO FEDERAL
SOME OF THE OVER 600 INDUSTRIAL
COMPANIES ESTABLISHED IN MANAUS
SDI
SALES EVOLUTION
IN MILLION
Growth
G
th highlights
hi hli ht
2002 to 2008: In real = 104.54% In dollar = 230.93%
2007 to 2008: In real = 9.29%
In dollar = 17.26%
Real
Dollar
Source: COISE/CGPRO/SAP – SUFRAMA
60
50
54.295
45.663
40
49.440
49.682
40.773
30
30.131
31.972
20
26.545
18.914
10
22.750
25.695
14.190
9.105
2002
10 622
10.622
2003
2004
2005
2006
2007
2008
MAIN SECTORS
TERMOPLÁSTICO
5,53%
MECÂNICO
2,61%
DESCARTÁVEIS
2,46%
RELOJOEIRO
1,01%
OUTROS
2, 81%
METALÚRGICO
6,93%
QUÍMICO
9,91%
BENS DE INFORMÁTICA
13,60%
ELETROELETRÔNICO
29,69% DUAS RODAS
25,45%
Source: COISE/CGPRO/SAP – SUFRAMA
Data from 2008
EMPLOYMENT EVOLUTION
(DIRECT LABOUR FORCE)
500 thousand direct and indirect jobs
Growth highlights
2002 to 2008: 58.93%
Source: AP/CGPRO/COISE/COGEC – SUFRAMA
120.000
100.000
80.000
60.000
40.000
20.000
84.296
93.989
96.119
2005
2006
102.561
101.150
2007
2008
68.652
63 645
63.645
2002
2003
2004
PRODUCTION NATIONALIZATION
Parts, pieces and components
Nationalization
Regionalization
Source: AP/CGPRO/COISE – SUFRAMA
60%
50%
40%
30%
20%
10%
50 37%
50.37%
47.77%
51.96%
50.04%
51 16%
51.16%
48.07%
47.04%
32.38%
27.75%
29.24%
2002
2003
32.33%
31 98%
31.98%
29.49%
25.81%
2004
2005
2006
2007
2008
EXPORTS EVOLUTION
IN MILLION US$
G
Growth
th highlights
hi hli ht
2002 to 2008: 19.17%
2007 to 2008: 14.54%
Source: Sistema Alice / MDIC
2.500
2 000
2.000
2.143
1.500
1.000
1.533
1.299
1.064
1.157
1.107
1.268
2007
2008
500
2002
2003
2004
2005
2006
MAIN EXPORTED PRODUCTS
1º
2º
3º
4º
5º
6º
7º
8º
9º
10º
CELLULAR PHONES
MOTORCYCLES
SOFT DRINKS CONCENTRATES
NON ELECTRIC SHAVERS
TV SETS
DIGITAL SIGNAL RECEIVERS-DECODERS
PHOTOGRAPHIC PAPERS
RAZOR BLADES
CAR AUDIO
60 VOLTS RELAYS
Source: SUFRAMA – MDIC/SISTEMA ALICE
Data from 2008
MAIN EXPORT DESTINATIONS
3th - U.S.A
(127,078)
10,02%
7th - MEXICO
(55,555)
4,38%
8th- PANAMA
8th
(21,438)
4,38
4th - COLOMBIA
(77,898)
6,14%
2nd - VENEZUELA
(181,457)
14,31%
6th ECUADOR
(56,0106)
4,42%
,
5th - PERU
(66,484)
5,24%
9th - PARAGUAY
(19,587)
1,54%
10th-URUGUAY
(17,387)
1,57%
1st - ARGENTINA
(430,907)
33,98%
Source: SUFRAMA – MDIC/SISTEMA ALICE
In million US$
Data from 2008
MAIN IMPORTING COUNTRIES
AMAZONAS – 2008
TOTAL IMPORTED BY AMAZONAS IN 2008: US$ 10.023.631.974
TOP TEN IMPORTING COUNTRIES IN 2008
US$ FOB
CHINA
3.197.968.301
SOUTH KOREA
1.504.736.454
JAPAN
1.404.333.618
UNITED STATES
923 085 590
923.085.590
TAIWAN (FORMOSA)
622.021.966
THAILAND
252.084.464
MEXICO
248.236.654
GERMANY
239.085.203
MALAYSIA
234 527 256
234.527.256
HONG KONG
151.107.508
Source: SISTEMA ALICE/MDIC
MAIN PRODUCTS IMPORTED FROM SOUTH
KOREA BY MANAUS INDUSTRIAL PARK
TOTAL IMPORTED FROM SOUTH KOREA IN 2008: US$ 1.504.736.454
TEN MAIN PRODUCTS
US$
$ FOB
PARTS FOR TV SETS
575.830.832
LIQUID CRYSTAL DEVICES (LCD)
192 114 933
192.114.933
PORTABLE CELLULAR PHONE
176.365.480
CATHODE RAY TUBE FOR TV SETS
98.326.781
HEAD DISC FOR HARD DISC UNIT MOUNTED
79.327.791
DIGITAL MEMORY AND RAM MEMORY
54.759.889
SURFACE MOUNTED MICROPROCESSORS
21.477.456
MONOLITHICS INTEGRATED CIRCUITS
19.912.213
ELECTRIC ACCUMULATORS
17.937.170
ELECTRICAL CONDUCTORS
13.107.743
Source: SISTEMA ALICE/MDIC
CONSOLIDATED INVESTMENTS IN MANAUS
INDUSTRIAL PARK
IN MILLION US$
G o t highlights
Growth
g g ts
2002 to 2008: 278.65%
2007 to 2008: 18.01%
Source: AP/CGPRO/COISE – SUFRAMA
9
8
7
6
5
4
3
2
1
7,910
6,703
5,548
4 565
4,565
3,448
2,759
2 089
2,089
2002
2003
2004
2005
2006
2007
2008
Source: INPE
NINETY-EIGHT PERCENT OF THE
AMAZONAS STATE FOREST
PRESERVED
STRATEGIC PROJECTS
MANAUS INDUSTRIAL POLE SCIENCE,
TECHNOLOGY AND INNOVATION CENTER (CT-PIM)
(
)
AMAZON BIOTECHNOLOGY CENTER ((CBA)
GAS CHEMICAL POLE
REGIONAL POTENTIALITIES
COMPETITIVE INTERNATIONAL INSERTION OF THE MODEL
Mission
Promote the generation,
generation dominion and application of advanced and
innovative scientific and technological knowledge, in association with
local, national and international institutions, thus contributing to the
sustainable economic,
economic environmental and social development of
Occidental Amazon, specially Manaus Industrial Pole.
Objectives
Create and consolidate a Technological Center for MIP, with two
fundamental objectives:
1 – Contribute towards strengthening the Regional C&T&I System
2 – Generate Microsystems competences
Science and Technology
Technolog Cooperation Agrements
AMAZON BIOTECHNOLOGY CENTER
Biodiversity
Biotechnology
Bio-industry
Bio
industry
BIO-INDUSTRIES
Food and
Nourishment
Bio-insecticides
Cosmetics
Enzymes holding
E
h ldi
bio-technological
interest
GAS CHEMICAL POLE
INDUSTRIAL SEGMENTS
Fi l Products
Final
P d t
Foreseen
Investment
(US$)
Annual
Revenue
(USS)
g of
Fractioning
Natural Gas
Ethano and Gas
without Ethano
235 millions
illi
140 millions
illi
Complex of
Ster ne
Steryne
Etilbenzene
Ster ne
Steryne
120 millions
40 millions
illi
700 millions
80 millions
illi
Complex of
Methanol
Methanol
400 millions
400 millions
Complex of
Fertilizers
Uria
300 millions
310 millions
Family of
Products
Estimated Employment (all segments)
Implementation phase
Direct Employment
Indirect Employment
8 000
8,000
2 000
2,000
35 000
35,000
Source: SUFRAMA/UFAM
REGIONAL POTENTIALITIES
PRODUCTS OF AMPLE MARKET
•
•
•
•
•
•
•
•
Manioc Starch
Palm heart from pupunheira
Fish Farming
Guaraná
Tropical Fruits
Sustainable exploitation of wooden
products
E l i lT
Ecological
Tourism
i
Palm oil
INTERNATIONAL INSERTION OF
MANAUS FREE ZONE MODEL
1 Participation in international negotiations;
1.
2. Commercial Promotion of Manaus Free Zone Model
through:
- Commercial Missions and Events such as Seminars,
Seminars
Congresses, Meetings, etc.
- Holding of the Amazon International Fair – AIF and
its promotion by means of Preceding Missions.
AMAZON INTERNATIONAL FAIR
FIAM 2009
25 - 28 November
Studio 5 Convention Center
Manaus – Amazonas – Brazil
Come to Manaus
Amazonas - Brazil
THANK YOU
OLDEMAR IANCK
Superintendente Adjunto de Projetos da
SUFRAMA
[email protected]
((92)) 3321-7096
www.suframa.gov.br