Brazil's Inter-Ministerial Decree 34, which allows for a reduction or exemption from taxes for certain tablet computers, was signed on Monday and published in the country's "Official Gazette" on Wednesday, clearing the way for Chinese manufacturer Foxconn to begin production (machine translation) of Apple's iPad, reports Portuguese language newspaper Folha.
Specifically, the decree states that companies investing in the research and development of keyboardless touchscreen tablets weighing less than 750 grams qualify for IPI (Excise Tax), PIS (Social Contribution Tax) and COFINS (Federal Contribution Tax) incentives. Also included under the decree are accessories, cables, power supplies and manuals associated with tablet computers.
In September 2011, it was reported that the Taiwan-based electronics manufacturer's $12 billion deal to build iPads in Brazil was in jeopardy, with one government official saying that Foxconn had been making "crazy demands" for tax breaks.
Production was scheduled to begin in July, but that date was pushed back twice as negotiations reportedly broke down, however it seems the two parties have reached a consensus and Foxconn is expected to ramp up iPad production as soon as possible.
Foxconn's Jundiai, Brazil manufacturing plant
Apple in December launched its popular iPhone 4S model in Brazil as part of the fastest handset rollout in the company's history.
The Cupertino, Calif., company is hoping to penetrate the growing Latin American market, and has reportedly hired former Sony Ericsson U.S. President Anderson Teixeira to head up the region's operations. There are also rumors that Apple is looking to build a flagship Brazilian retail outlet, though no official announcement has been made.
7 Comments
Now they just need to ship some to a small Apple factory in Argentina where they can be packed...
...then Apple can sell the iPhone there again.
An example of how government policies can affect where large multinationals build factories. There's no way this would be in Brazil if it weren't for those tariffs.
juan & evita peron; please call home!
they would have loved a few iphones loaded with tango music.
Never under estimate the ability of a Chinese company to figure out who to "pass the red envelope" to.
A few days ago we had the NYT article about why this stuff is not assembled in the USA. It had a lot of good points that would seem the same for Brazil.