New Export Devices In Brazil

Prof. Denis Borges Barbosa, JSDM

Proposed in 1988, under a statute which was never actually implemented, the idea of Export Processing Zones (ZEP in the Portuguese acronym) just received a new opportunity in Brazil through a new Federal Law (Lei nº 11.508, of July 20, 2007). Heavily vetoed by the President, the bill expressed the regional interests of some legislators and shall probably offer some competitive advantages to foreign investors seeking export platforms in Latin America.

As originally conceived, the ZPE would create a special environment protected against the complex exchange and tax rules then prevailing in Brazil. Those barriers were in due time removed from the overall economy and the new edition of ZPEs would not therefore enjoy from such a competitive advantage as they were to be in 1988. In fact, the vetoed portion of the new bill assures that only a marginal distinction would benefit the firms operating from ZPE. A new Executive-introduced provisional measure (or immediately-enforced Congress bill)...