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market. The policy for the sector is based on three development fronts: (i) hardware, seekingtechnological innovation; (ii) software, and (iii) the microelectronics sector.The past history of changes in the information technology policy relates directly to the preoccupationwith providing support to the industry established in the Country and the requirement of creating anattractive climate for foreign capital, culminating in the approval of Law 8,248, of 23 October 1991(Information Technology Act), concerning information technology tax incentives.The Information Technology Tax Incentives Policy, in particular for the development of hardware isprovided for in the Information Technology Act, and in the legislation concerning the Manaus FreeTrade Zone (Law 8,387/91 and Decree Law 288/67), which have undergone various alterations overthe years (latest alterations: Laws 11,452/2007 and 11,482/2007, the latter amended by ProvisionalMeasures 451 of 2008 and 528 of 2011; Law 11,945/2009; Law 12,469/2011; Law 12,507/2011). As ageneral rule, information technology goods and services produced in the Country are benefited withthe gradual reduction of the IPI (Excise Tax) due up to December 2019, when the benefit will beextinguished, in accordance with the table below and their fiscal classification:Reduction of IPI dueDate100% 12.15.2010 to 12.31.201490% 01.01 a 12.31.201570% 01.01.2016 a 12.31.2019For information technology and automation goods produced in the Mid-West Region and in theregions of influence of ADA – Agência de Desenvolvimento da Amazônia (Amazon DevelopmentAgency) and ADENE – Agência de Desenvolvimento do Nordeste (Northeast Development Agency),there is an IPI reduction, as shown in the table below (art. 3 of Law 11,077/04):Reduction of IPI dueDate95% 01.01.04 to 12.31.201490% 01.01 to 12.31.201585% 01.01.16 a 12.31.2019The maintenance and use of IPI credit relating to raw materials, intermediary products and packagingmaterial employed in the industrialization of goods that enjoy the benefit is guaranteed.The above percentages do not apply to portable microcomputers and to small-capacity digital57