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f) PIS (Contribution to the Social Integration Program) and COFINS (Contribution for Funding of SocialWelfare Programs): the rates imposed on sales revenue from goods intended for consumption orindustrialization in the Manaus Free Trade Zone – ZFM, by a corporate entity established outside theZFM are reduced to zero, barring the exceptions set forth in Law 10,996/04.Law 11,196/05 brought the reduction to zero of the PIS and COFINS rates imposed on sales made byproducers, manufacturers or importers established outside of the ZFM, of products subject todifferentiated taxation designed for consumption or industrialization in ZFM (art. 65).The law also instituted tax substitution on the resale of products within the ZFM.The suspension of PIS and COFINS was also introduced on imports, by establishment located in theZFM, of goods intended for industrialization, such as raw material, intermediary products and packingmaterial, as well as new machines, apparatus, instruments and equipment for incorporation into thefixed assets of the importer corporate entity (art. 50 of Law 11,196 and paragraph 1 of art. 14 of Law10,865/04).A considerable number of foreign capital companies are established in the ZFM, on account of thenumerous incentives granted and the absence of restrictions on foreign capital (except for thoseindicated in this study). There are also other incentives, such as the exemption of IPTU (MunicipalProperty Tax), some financial credits and similar incentives, which vary in accordance with the venueof the company's registered office, industrial production sector and other items.13.2. Export Processing Zones (ZPE)ZPE zones are free trade zones designed to encourage the establishment of companies that producegoods for export. They are considered "primary" zones for customs control purposes.ZPE zones receive tax, foreign exchange and administrative benefits, with terms of up to 20 years (art.8, main section and respective paragraphs, of Law 11,508/07).Generally speaking, from a tax perspective, companies authorized to operate within a ZPE enjoy thesuspension of duties and contributions levied on imports and domestic purchases of goods andservices.There are no restrictions on foreign capital, or foreign exchange or customs barriers in the ZPE.There are, however, some limitations: prohibition of the establishment, in an ZPE, of companieswhose projects evidence the simple transfer of industrial plants already established in the Country (art.82