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) Since 5001 (five thousand one) barrels per day, up to 50000 (fifty thousand) barrels 12%(twelve percent) and,c) Since 50001 (fifty thousand one) barrels onwards 14% (fourteen percent).8. INTERNATIONAL WATERWAY “HIDROVÍA PARAGUAY-PARANÁ”MERCOSUR member countries (Argentina, Brazil, Paraguay and Uruguay) and Bolivia have designed anambitious multi-lateral project known as the “Hidrovía Paraguay-Paraná” (hereinafter called the“waterway”), an international waterway seeking rivers Paraguay and Paraná to be permanentlynavigable along 3.500 km from Puerto Cáceres (Brazil) to Puerto Nueva Palmira (Uruguay). Paraguay’sgeographical location, the Waterway, other projects such as the Paraná-Tieté Hidrovia (Paraná-TietéWaterway) in Brazil, the Bioceanic Corridor connecting the Atlantic and Pacific Oceans, will significantlyfacilitate communication between countries of the region and shall turn Paraguay into an importantalternative as center of production, supply and rendering of services within the framework of the RiverIntegration Plan between MERCOSUR member countries and Bolivia9. FREE TRADE ZONESAct 523/1995 that rules free trade zones has the purpose of encouraging investments, employment,exports and international trade. Export transactions in a free trade zone are exempt from all national,departmental and municipal taxes. Significant fiscal incentives are guaranteed to Licensees and Usersto facilitate establishment and operation in free trade zones.Concessions are executed through a joint agreement signed by the Paraguayan Government to buildand operate a specific area as a free-trade zone. Concessions shall be granted for a term of thirty (30)years, unless the licensee applies for a shorter period of time, counted as from the date of the grantingof the agreement. The term may be extended for an equal term in accordance with the Acts ruling freetrade zones at the time of the extension, provided that the licensee has duly met its legal andcontractual obligations.10. MAQUILA OPERATIONSAct 1064/1997 created the framework to facilitate the establishment of assembly plants or maquilafactories that could profit from the country’s lower industrial and labor costs compared to othercountries of the region. The Act provided further incentive to export-oriented investment, and further8Berkemeyer Attorneys and Counselors | Asunción - Paraguay