Being in the Manaus Free Trade Zone – which was created in 1957 – can mean significant exemptions, such as the Industrialized Products Tax (IPI), which is always advantageous for companies. However, there is not only the bonus, but also the burden of having a factory in the region, which is distant from the most populous states and, consequently, consumes most of the products produced in the ZFM.
The Manaus Free Trade Zone was created in 1957 with the aim of promoting the development of the region through industrialization and job creation. However, some difficulties have become evident in recent times. João Domingos, partner at BDO responsible for the Manaus branch, highlights the logistical difficulties faced by companies in the region.
Most people do not imagine all the logistics involved in transporting the goods produced in Manaus. Road and ferry transportation takes an average of 12 days to reach São Paulo before being distributed to other states.
Domingos explains that the lack of a broader road network and the high cost of air transportation make ferry and truck transport the most sought after, despite the logistics being much more time-consuming. "These high transportation costs cause many companies to reevaluate the establishment of new businesses, as they practically negate some of the tax benefits," he/she/they highlights.
Despite all these difficulties, the revenue of companies in the Manaus Industrial Hub has been growing over the past few years, except for 2023 when it was practically stable. The generation of direct jobs reaches 112,000, a number that also increases year by year. "It is an undeniable contribution to the country's economy. Therefore, investing in infrastructure and new transportation modes so that the ZFM continues to grow," he emphasizes.
