Free Economic Zone of Manaus
Encyclopedia
The Free Economic Zone of Manaus (Portuguese
: Zona Franca de Manaus - ZFN) is located in the city of Manaus
, the capital of the State of Amazonas, Northern Brazil. The initial idea, a Free Trade Port
in Manaus, came from Deputy Francisco Pereira da Silva and was subsequently formalized by Law No. 3.173 on June 6, 1957. The project was approved by the National Congress on October 23, 1951 under No. 1.310 and regulated by Decree No. 47.757 on February 2, 1960. It was then amended by rapporteur Maurcio Jopper, engineer, who by agreement with the original author, justified the creation of a Free Trade Zone
instead of a Free Trade Port.
For the first ten years the ZFM (Manaus Free Trade Zone) was located in a warehouse rented from Manaus Harbour, in the Port of Manaus, and relied on federal funds. It was perhaps due to this lack of its own resources that there was little credibility in the project.
On February 28, 1967, President Castello Branco signed Decree-Law No. 288, whose draft accompanied the Exposition of Motives. Decree-Law No. 288 amended the provisions of Law No. 3.173/57 and redefined the Manaus Free Trade Zone in more concrete terms. The new Decree-Law stipulated that the Manaus Free Trade Zone would have a radius of 10,000 km (6,213 mi) with an industrial centre
as well as an agricultural center and that these would be given the economic means to allow for regional development in order to lift the Amazon out of the economic isolation that it had fallen into at that time. Decree No. 61.244 of August 28, 1967 created the Manaus Free Trade Zone Superintendence, SUFRAMA, an autarchy with its own legal status and assets and having financial and administrative autonomy.
Tax
incentive
s and the subsequent complementary legislation created comparative advantage
s in the region
with respect to other parts of the country and as a result the Manaus Free Trade Zone attracted new investment
to the area. These incentives constituted tax exemptions administered federally by SUFRAMA and SUDAM.
Portuguese language
Portuguese is a Romance language that arose in the medieval Kingdom of Galicia, nowadays Galicia and Northern Portugal. The southern part of the Kingdom of Galicia became independent as the County of Portugal in 1095...
: Zona Franca de Manaus - ZFN) is located in the city of Manaus
Manaus
Manaus is a city in Brazil, the capital of the state of Amazonas. It is situated at the confluence of the Negro and Solimões rivers. It is the most populous city of Amazonas, according to the statistics of Brazilian Institute of Geography and Statistics, and is a popular ecotourist destination....
, the capital of the State of Amazonas, Northern Brazil. The initial idea, a Free Trade Port
Free port
A free port or free zone , sometimes also called a bonded area is a port, port area or other area with relaxed jurisdiction with respect to the country of location...
in Manaus, came from Deputy Francisco Pereira da Silva and was subsequently formalized by Law No. 3.173 on June 6, 1957. The project was approved by the National Congress on October 23, 1951 under No. 1.310 and regulated by Decree No. 47.757 on February 2, 1960. It was then amended by rapporteur Maurcio Jopper, engineer, who by agreement with the original author, justified the creation of a Free Trade Zone
Free economic zone
Many countries have, or have had at some time, designated areas where companies are taxed very lightly or not at all to encourage development or for some other reason...
instead of a Free Trade Port.
For the first ten years the ZFM (Manaus Free Trade Zone) was located in a warehouse rented from Manaus Harbour, in the Port of Manaus, and relied on federal funds. It was perhaps due to this lack of its own resources that there was little credibility in the project.
On February 28, 1967, President Castello Branco signed Decree-Law No. 288, whose draft accompanied the Exposition of Motives. Decree-Law No. 288 amended the provisions of Law No. 3.173/57 and redefined the Manaus Free Trade Zone in more concrete terms. The new Decree-Law stipulated that the Manaus Free Trade Zone would have a radius of 10,000 km (6,213 mi) with an industrial centre
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
as well as an agricultural center and that these would be given the economic means to allow for regional development in order to lift the Amazon out of the economic isolation that it had fallen into at that time. Decree No. 61.244 of August 28, 1967 created the Manaus Free Trade Zone Superintendence, SUFRAMA, an autarchy with its own legal status and assets and having financial and administrative autonomy.
Tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
incentive
Incentive
In economics and sociology, an incentive is any factor that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives. It is an expectation that encourages people to behave in a certain way...
s and the subsequent complementary legislation created comparative advantage
Advantage
Advantage may refer to:*In military terms, advantage is the superiority in elevation which one side enjoys over the opposing element...
s in the region
Region
Region is most commonly found as a term used in terrestrial and astrophysics sciences also an area, notably among the different sub-disciplines of geography, studied by regional geographers. Regions consist of subregions that contain clusters of like areas that are distinctive by their uniformity...
with respect to other parts of the country and as a result the Manaus Free Trade Zone attracted new investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
to the area. These incentives constituted tax exemptions administered federally by SUFRAMA and SUDAM.