Incentives to local Industry and Technology - Inwavetech


PPB “Basic Productive Process

It is important to understand these costs and terms, specific of the national reality and include those numbers in the planning. Here is a simulation of the cost of importing a technology product, origin Asia.

The main obligation, in addition to the local assembly, is to use a minimum percentage of components issued from the domestic industry, on the product total composition.

This percentage is known as the “nationalization index” . The most common Nationalization Index is 80% however depending on the segments and market the index is frequently adjusted by the ministries

The main counterpart is a government IPI reduction of 80% in most cases. Other important benefits are the ability to benefit from the BNDES credit line with reduced rates for both development of the manufacture plant, as for financing products sales (finame).

TI Law (Technology)

A high nationalization index becomes problematic for PPB requirements for technological products since most of the electronic components are not produced in Brazil. Due to this reality a “computer law” was created to allow the inclusion of technological products in PPB with lower proportion of domestic content. Thus the main requirements are:


➠ Electronic board assembly using local labor

➠ Acquisition of the printed circuit board from the domestic market.

➠ Part of the benefit must be reinvested in research and development.

➠ Part of the benefit must be reinvested in research and development.

For computer products of mass consumption and production in the free zone of Manaus differentiated requirements are created based on the market and the availability of components domestically.

The Companies and products benefiting from PPB are listed on the BNDES website below:

The registration is made through the ministries of Science and Technology, Development, Industry and Foreign Trade and Finance.


The R&D consists in a package of minimum requirements the company has to meet in the product development to benefit from tax exemptions as specified by the law.

The R&D means that in addition to the productive process, the company develops and masters the technology it markets.

The counterpart given by the government is a total exemption of the IPI as well as ease of access to BNDES credit line for research and development