Ruta Internacional, Km. 11 Monday Tel. +595 61 580-260 sac@zfg.com.py ; mohamad@zfg.com.py Ciudad del Este, Paraguay September, 2.016
W HAT I S A F REE Z ONE ? It's a recognized worldwide economic regime and used for the development of a country, the Free Zone it's a defined part of national territory, where does not apply the common customs legislation. The Free Zone is a good tool used by various corporations around the world to facilitate the production and the logistics with destination to exports, and optimize financial resources for any kind of international business. Within this restricted area of Condominium of Sheds of the Free Zone the procedures are faster, the payment of taxes is more simplified, to facilitate, promote and to strengthen the commercial activities, industrial and of the services, mainly for export. There are no restrictions of economic character, such as import quotas, previous licenses or others. Bureaucracy is minimal for installation and operation of a company, and the introduction of machines, products and raw material, from anywhere in the world or even of the Country. There are more than 500 Free Zones around the world. Worldwide success examples are: Colón - Panama, Manaus - Brazil, Tanges - Morocco, Iquique - Chile, Florida - Uruguay, JAFZA - Dubai and many others. 2
T HE Z ONA F RANCA G LOBAL O F P ARAGUAY S.A. The Zona Franca Global is a Condominium of Sheds where can develop any activity commercial, industrial or services in the Normal Regime, as well as in the Maquila Regime, or even in the Free Zone Regime. In Paraguay the free zones are ruled by law 523/95, and various regulations and normative. The private company Zona Franca Global of Paraguay S.A. won a public bidding in the year 2.002, and signed with the Paraguayan Government the Concession Agreement and its additives, to promote, develop and explore a Free Zone in Ciudad del Este by the year 2.032, renewable until 2.062. Since then, the Zona Franca Global strives to provide adequate physical spaces for activity and for people, with a good environment for commercial business, industrials and services, with the advantage of the location very close of large consumer centers. The Zona Franca Global is a real case of success, of the project that started from scratch until to be consecrated as one of the mark of the new industrialization in the country. 3
Front view in July 2.016 4
B RIEF H ISTORY 1995 - Its approved the law 523/95, that creates and authorizes the free zone regime. 2002 - Zona Franca Global wins public bidding, and signed the Concession Agreement with the Government of Paraguay. 2003 - Start of operations on land of 50.000 m2. 2005 - The Government of Paraguay and Zona Franca Global extend the Concession Agreement, to change to a bigger land. 2007 - The ZFG moves and starts working with new infrastructure on land of 400.000 m2 on the route international. 2010 - Installs Fujikura of Paraguay, the first multinational export industry of Paraguay autoparts, to attend "just in time" for Wolkswagen of Brazil (cities of Taubaté, São Carlos, São Bernardo do Campo e Curitiba). Winning paradigms, it’s considered the cornerstone for the beginning of the automotive industry in Paraguay. 2012 - Fujikura inaugurated the second factory in Zona Franca Global, and has 900 employees. 2014 - Start the operation of factories EMDEP (control panels) and ABBA expands its factory (residential sofas). - Industry Ministry allows Maquila's Regime within the Zona Franca (tax regime of maquila). 2015 - The factory AMERICA 1500 (Deliz Jeans), makes the first export under the Maquila's Regime, from the ZFG. - Signed the Mutual Understanding Agreement between the (SUFRAMA) Manaus Free Zones and Zona Franca Global. - Fujikura expands its factories to attend Renault of Brazil (city of São José dos Pinhais). - It settles the ZM factories (hydro pumps) and Itidai (injected pieces of the aluminum). - The UIP - Unión Industrial of Paraguay it settles in the ZFG, providing excellent service to the members of Alto Paraná. 2016 - It settles the Koumei factories (luminaires), Bancor (cables), Cia de Cosmeticos Essencia de la Naturaleza, Seven Seas - Ministry of Finance allows Manufacture of Clothes by the Free Zone Regime. - The ZFG, signs agreement with the SNPP - National Professional Promotion Service, to train workers for the industries interested in setting up in Alto Paraná. 5
D EFINITION O F B USINESS : The Zona Franca Global is an integral center for production, logistics, services and business. O UR V ISION : Promote the ZFG worldwide, and capture the companies with target on the neighboring markets, makes ZFG one of the companies of great strategic importance for the Paraguay. O UR M ISSION : � Provide adequate infrastructure, equipment and technology, services and the facilities necessary for the proper development of the work of our customers and employees. � Generate conditions and a business environment conducive to good development of our customer's works, and explore new opportunities. � Support with information and managements to easy installation of the companies. � Work by legality and transparency of transactions. � Create formal work opportunities in a good environment, with improve for quality of life and contribute to the good economic and social development of the population. 6
A DVANTAGES T HE I NSTALLING I N C IUDAD D EL E STE - P ARAGUAY : 1. Availability of executives and professionals with experience in international business. 2. Paraguay is a "Country Youth". Availability of young labor hand, with quality and without work vices, largely with secondary education, of easy training (Strategic Asset). 3. Relative availability of electromechanical engineers. 4. Lower implications of indirect costs on the social charges, even if the minimum salary is higher. 5. Within a radius of 30 km we have 3 international airports: Minga Guazú - Paraguay, Foz do Iguaçu - Brazil and Puerto Iguazú - Argentina. 6. The ZFG it's in a geographical area regarded as the Commercial Capital of South America, which in itself, for many activities is already a competitive and comparative advantage. 7. This location offers the possibility of serving a potential market of 60 million people, in a travel circle of 2 hours by flight or 24 hours by highways (Brazil, Argentina, Uruguay, Bolivia), beyond the waterways of the Paraná and Paraguay rivers and the Itaipu Lake. 8. Access to an annual GDP(PIB) of U$3,0 TRI, Mercosul (Brazil, Argentina, Bolivia, Uruguay, Venezuela). 9. Pleasant climate, stable geology. There are no major natural disasters. 10 . Excellent road logistics of round trip to any part of Brazil, by the wide availability of carriers and trucks (Strategic Asset). 11 . Relative multimodal logistic Paraná River, Paraguay River, Basin of the Rio da Prata - Atlantic. 12 . Varied ethnic populations, estimates more than 50 ethnic group in Ciudad del Este (languages). 7
M AIN D ISTANCES : Airports in a radius of 30 km: Guaraní International Airport - Paraguay 14 km Foz do Iguaçu International Airport – Brazil 32 km Puerto Iguazú International Airport – Argentina 38 km Ports: Port of Presidente Franco, on the Paraná River 25 km Several ports around Asunción, on the Paraguay River 360 km Port of Paranaguá, access to Atlantic – Brazil 780 km Main Consumers centers: Curitiba, Campo Grande, Londrina – Brazil 600 - 800 km São Paulo, Rio de Janeiro, Porto Alegre, Belo Horizonte, Florianópolis – Brazil 1.000 - 1.200 km Santa Cruz de la Sierra – Bolívia, Buenos Aires – Argentina, Montevideo – Uruguay 900 - 1.000 km Iquique, Santiago – Chile 1.800 km 8
C OMPETITIVE A ND C OMPARATIVE A DVANTAGES O F Z ONA F RANCA G LOBAL 1. Neighbor of a large consumer market, Brazil and Argentina. 2. Within the Park of Zona Franca Global, there is a complete administration of customs, DNA, which makes agile all the customs procedures of transit, introduction, import and export. 3. Partners and Users of ZFG, which providing full service of import and export orders, warehousing and logistics of products, follow-up in government offices. 4. Availability of real estate infrastructure for all activities. Available buildings with build quality, water network for consumption, water network to combat fire, electrical network of the park in medium and low voltage, communication, paving, parking. 5. Partners and Users of ZFG, dedicated to construction activity on measure to rent (Build to Suit). 6. High availability of electric power with quality at a competitive cost. The Zona Franca Global has a exclusive feeder of 6MVA from the k-14 substation. 7. An high-voltage grid 220KV cuts through the park of Zona Franca Global (future own substation). 8. Low operation costs to manufacture and to sell to Paraguay customers or to neighbors countries. 9. No loss of origin of the products introduced into the free zone (law.523/95, Art.20 and Decree No. 7068/2006). 10. High capacity and reliability, at a reasonable cost, of the consultants associated on the accounting areas, legal, tax, environmental, for assistance in the investment projects. 11. For the year 2.018, a modern office building for professionals and service companies. 12. Is simplified contracts and procedures (not bureaucratic). Is quick to start operations. 13. Commercial Point well-known in the Corporate world, like all Ciudad del Este. 14. Environmental license previously analyzed for almost all type of non-polluting activity. 9
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