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Foxconn Planning to Start iPad Production Soon

The Brazilian government has recently passed tax reductions or exemptions bills regarding tablet production and this will enable Apple manufacturing partner Foxconn to begin iPad production in the country.

The Inter-Ministerial Decree 34 of Brazil was signed on Monday and published in the country’s ‘Official Gazette’ on Wednesday, opening the doors for Chinese manufacturer Faxconn to start production of Apple’s iPad, according to Portuguese language newspaper Folha. The decree will allow the exemptions or reduction from taxes for particular tablet computers.

From Folha:

“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 of Apple’s iPad.

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.”


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According to decree, the companies involve in investing in the research and development of keyboard-less touchscreen tablets with weight no more than 750 grams will qualify for IPI (Excise Tax), PIS (Social Contribution Tax) and COFINS (Federal Contribution Tax) incentives. The decree also included the accessories like cables, power supplies, and manuals associated with tablet computers.

Back in September 2011, a report came that the Taiwan-based electronics manufacturer’s $12 billion deal to produce iPads in Brazil was in danger, with government official saying that Foxconn had been making odd demands for tax breaks.

Previously, the production was scheduled to start in July, but the date was extended twice as negotiations reportedly failed. Now it looks like that the two parties have reached to a point and Foxconn is now assumed to start iPad production in the country at the earliest possible opportunity.

Being the fastest handset rollout in the Apple’s history, the company launched its latest iPhone 4S in Brazil in December.

Apple is, however, aiming to enter into the potential Latin American market. The company has reportedly hired former Sony Ericsson US President Anderson Teixeira to watch out the region’s operations. Some rumors also floating around suggesting that the Cupertino-based firm is aiming to create a flagship Brazilian retail outlet, though no official words on this yet.

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