New law allows private sector to create EPZs

On July 14, Law No. 14184 was sanctioned, which provides for the tax, exchange, and administrative regime of Export Processing Zones (EPZs); the new law revokes the obligation of companies to export 80% of production and encourages medical oxygen production companies to direct all production to the domestic market.

The regulation also authorizes private entities to create EPZs upon government authorization, adapts the internalization rule to the World Trade Organization (WTO) rules, and facilitates the construction of EPZs in areas connected to ports and airports.

EPZs are the global instrument by which countries guarantee that their taxes will not be “exported.” For example, China’s industrial success in recent decades is due to hundreds of EPZs, a model that has been successfully replicated in several countries, such as the United States, Colombia, South Korea, and Uruguay.

In Brazil, the EPZ/CE is in operation in Pecém, and another 13 authorized companies are being implemented: Acre EPZ  (AC); Açú EPZ  (RJ); Araguaina EPZ  (TO); Bataguassu EPZ  (MS) ; Boa Vista EPZ (RR); Caceres EPZ  (MT); Ilheus EPZ  (BA); Imbituba EPZ  (SC); Macaíba EPZ (RN); Parnaíba EPZ (PI); Suape EPZ (PE); Teófilo Otoni EPZ  (MG); and the Uberaba EPZ  (MG).

With the Legal Framework of EPZs, the regime will be modernized and adapted to the current global context of reallocating value-productive chains in the post-pandemic world. The new framework will have two startup dates: concerning most provisions of a tax nature, the validity begins only in January 2022. The other provisions, on the other hand, take effect 90 days after their publication.

Source: Comex do Brasil

To read the full original article, visit the link:

https://www.comexdobrasil.com/novo-marco-legal-permite-creacao-de-zona-de-processamento-de-exportacao-pela-iniciativa-privada/

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