The Brazilian products entering Manaus Free Trade Zone for internal consumption, use, or processing, are exempt from IPI. This exemption also applies to nationalized products when they come from countries with which Brazil has international treaties, agreements, or conventions that ensure equal treatment for national and imported products. The products must be sent, IPI-exempt, to the entrance to Manaus Free Trade Zone, where exemption will become effective. The products that will not benefit from this exemption are: weapons and ammunitions, perfume, tobacco, cars, and liquor.
(Private Letter Ruling 103/08)