The Manaus free-trade zone (Zone Franca de Manaus – ZFM) was created in 1967 to attractindustry and commerce to the Amazon region.Foreign goods imported to the ZFM are freeof customs duty and IPI, provided they are consumed or manufactured within the zone orare exported abroad. Sales or transfers of these goods to other parts of Brazil require payment of the previously exempted taxes. Foreign controlled subsidiaries may establish assembly operations and enjoy the same benefits as local companies. Sales from other parts of Brazil to the Manaus free-trade zone are also entitled to certain tax benefits. Some of these fiscal benefits also apply to the Western Amazon region, which covers the states of Acre, Amazonas, Rondônia and Roraima.
There are other free-trade zones (FTZs) that have been created with the aim of promoting the development of the border regions in the Northof the country. These FTZs are demarcated areas where Import Duty and IPI levied on imports of goods for consumption, re-exportation,processing of fish, mineral resources, agricultural and forestry raw materials which will be used in agriculture and fish farming activities, tourist facilities and ship construction and repair, are suspended. The first FTZ outside of Manaus was created in Tabatinga (Amazonas province) in1989. FTZs have also been created in Boa Vista(Roraima), Macapá and Santana (Amapá) and Guajará-Mirim (Rondônia).