Brazil Assembly Powers Hikvision Local Expansion

By Robert Wren Gordon, Published on Jul 15, 2020

Hikvision has grown considerably in Brazil ever since the 2017 opening of an assembly operation in a free-trade zone in the middle of the Brazilian Amazon.

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Hikivision is the only foreign video surveillance manufacturer with such an operation inside of a Brazil, giving them an important advantage against high import tariffs. Moreover, Hikvision has used this as part of a broader strategy to expand in Brazil.

In this report we discuss:

  • Hikvision's history in Brazil;
  • the Manaus free trade zone;
  • Hikvision assembly in Manaus; and
  • the growth of Hikvision in Brazil.

Hikvision ** ******

** *** ******* ****** in ***** ******* *** the ******-******* ****** ** the ******** ***** *** U.S., ****** *** **** been ** ********* ******** to *********. ** ****, Hikvision's ******* *******,** *********, **** ** **** himself ******* **** ********* **** a ********* ********:

*** **** ** ** have ****** ** *** third ******, **** ******** China *** *** ****** States.

** ****, ********* *** already **** ******* ** Brazil *** ******* *****. According ** ******* ** the ***** ** *ã* Paulo, *********'* ***** ****** in ******, ********* ** Brasil ***é**** ** ************ de *******ç* ****., *** formed ** ******** ****.

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*** ********* ****** ******* is ********** ** *ã* Paulo, ******'* ******* ****, where********* *** ********** ** office ***** ****.********* ** ********, ****** ** ********* primarily ******* ** *****, marketing,*********, *** ********* ******* work *****.

******

******, *** ******* ** Brazil's ******** *****, **** at *** ***** ** one ** *** *******'* most ****** *******. ** promote *********** ** *** landlocked *****,* **** ***** **** now ******** ****** *** Free ******** **** ** Manaus *** ******* ** the ****'*.

*** ****** **** ***** Zone (****), ***** ** regulated ** ******-*** **. 288/1967, *** ********* ** a **** ****** *** export ***** **** **** special *** **********. ** was *** ** **** the ****** ** ******** an **********, ********** *** agricultural ****** ** *** hinterland ** *** ****** Region, ***** ***** ** equipped **** ******** ********** that ***** ****** *** region ** ** ******** and *********.

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***** *** *** ********* operating ** *** ****-***** zone *** ****-***** ************* brands **** **********, *****, **, *********, Samsung, ****, *** ******.

Advantages ** ******

*** **** ********* ** onshoring ********, * ******* sometimes ******** ** ******* as***********çã*, ** "***************," ** avoiding ******'* *********** **** import *******.

******, *** ***** ***** government ********** ****. ** a**** ******** ***** ********** document, ********* ***é ****** is ***** ********** **** the *** ********* ******* by ********* ********* ** the ****** ** ****** 57%.

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** ********* ****the *** ********* ** ********, ***** ** ** ******* **%, which shows the weight of the II [Import Tax] of 19%, the IPI [Industrialized Product Tax] of 31%, the ICMS [Tax on Operations Related to the Circulation of Goods and on the Delivery of Interstate and Inter-Municipal Transport Services and Communication] of 30%, the IR [Income Tax] 11% and the advantages of the PIS [Social Integration Programs Tax] and COFINS [Contribution for the Financing of Social Security] 9%... [emphasis added].

IPVM Image**** ***** **** ********* lawyer******* ****, * ******* ****** *'******** ************ ****** ** *** Customs *** ********** ** the********* *** ***********, *** ********* **** situation ** * ***-*** for ******, ** *** foreign ******* **** ***** taxes/tariffs, *** ****** ******** the ******* ** *** creation ** * ****** region ********* ** ********** away **** *** ******* domestic *******.

Assembly **. *******

********** ***** ******** **** 2017***** ** ********* ****** an ******** **** ** Manaus.

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**** ****** ***** ***** articles**** ****** *** **** 12 ****** ***** ** the ******** ** * factory.

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**** *** ******* ** use ******** **** ********* to *********'* ****** ********, as ** ** ******* how **** ** *** lower-level ***********, ** *************, is **** ** ****** or ** ************ **************** *** ****** **** Hikvision ** ******* ********** to ****** **** *** country ****** ** *** Manaus ********.

Manaus ********

***** *********'* ****** ******** in ****** **** **** to ****, ********* *** not ***** ******** ** Brazil ***** *** ****** quarter ** ****.

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** ***** **** ********* **** Brazilian *************** ********,Á***** ** *****, ********* ******'* ******** development ********, ********* *** logic ****** *********'* ****** operations.

** ******, ** **** a ****** **** ******** impacts *** ********: *** high *****. *** ***** market ** **** ********* to ****** ***, ******* of ****, "***************" ** * ********* for *** *************. ** have ***** ********** **** manages ** ****** ******** with ***** ***** ** order ** ********* ***************.

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*** ******* ** *** 2,000-square-meter (~**,*** **. **.) assembly ********** ******** **** in ****** *********** ** *** ********* government ** *** ****.********* ** ********, ***** *** ********* around ** ********* (****** all ** **** *** Brazilian) **** *** ****** such ** * ********* inspector, ********** *********, ******* inspector, **** ******, ** & ***** **********, ***** apprentice,********** ********, ******* *******, ******** key *******, ******* *******, purchasing *********, **********, ********* specialist, *****, ****** ***** analyst, ****** ***** *********, production **** ******, ****** logistics *******, ******** *** production *** ********* ******* analyst, ************** **********, ************** auxiliary, *** *******, ******* control ******, ************* **********, production ******, ********* *******, production ********, *** ************* analyst.

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********* ** ***** **** ****** **** the ***** ** ********, ********* ****** ****** a ***% ****** ********* through ******* *, ****, on *** **** (*** on ********** ******* ** the *********** ** ***** and ** *** ******** of ********** *** *****-********* Transport ******** *** *************) as ** ******* ** "television ****** *** *** in ******-******* **" *** "digital ********/********** ** ***** and ***** ******* *** security ******."

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** ******* ****,********* ***** ***** ********* to ****** *** ********* of *** ****** ******** plant.***** ***** ************ ***** ***** ** responsible *** "*********, ***********, inventory, *******, *** ******** the ******** *******."***** **** ************ *** ***** ***** be ******** * ****** phase ** ***********, **** planned ********** ** *** 2,000-square-meter *****.

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********* ** ******* **** *******, *** ********* ************ authority **** ******** *** Manaus ****-***** ****, ***** April **** *** ********* in *** ****, ********* Brazil ********* ****** ** 88% ********* ** *** Brazilian **, ** ****** Tax, ** ****** ******** into ******, **** *** following ****** ****** *** for *** **** ***** years.

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** ***** *****, ********* Brazil ** **** ** import **** ****** **** $19 ******* ** ****** this ****, $** ******* next ****, *** $** million ** ****, *** with ** **% ********* in ****** ***.

********* ******* ****** ******* Fiel ********* ** **** that, ****** ** *** U.S., ***** ** ** government **** ** ****** that ********* *** "**** in ******" *****, **** products ******** ** *** free-trade **** *** ** legally ******* ** "**** in ******." ** **** confirmed **** ***** *** no ************ ** ******* products ******** ** *** free-trade **** ** *** wider ********* ******** ******.

***** ** ** *** on ******* ** ****** and **** ******** ** applied ** * *********** when * ***** ** located ** *** ****. Besides *** *** ******** for *** *********** ** goods ******* *** ******, a ******* ******* ** the **** *** *** no *** [************** ******* Tax] *** * ******* PIS [****** *********** ******** Tax]/COFINS [************ *** *** Financing ** ****** ********] in *** **** ** the ************** ******* ** the ******** ******. ****, in *** **** ** Hikvision, ***** *** *********** tax ******** *** *** business ******** *** ***** are ** ************ **** selling ******** ******** ** the **** ***** **** in *** ***** ********* domestic ******.

Business *********

**** ******** *** ****** of *****-***** *** ******* on******* *****, ***** *******'***** ****** **** ****** marketplace, *** ***** **** Hikvision ****** * ******* advantage.

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** *** ***** *****, the********* ********** **% ******* **** the ******************* *********** * ******** ** the ***** ** ****************,*****, **************.

**** **** ***** *** wide ******* ** ********* solutions ********* ** ******** Livre, ** ******** ** a ******** **** ** Axis, *****, *** ****** solutions.

Competitive *********

***** **** *** ****** to ****** *********** ************ of *********'* ******** ****** share, *********'* ********** ** having * ******* ******** in ****** *** ***** it ** **** **** competitors, **** ** **** have ******* ********** ********** in ****** (*********, * ***** ***, has **** ************* ***** throughout *** *******).

Building ***********

*** ******* ** *********'* Manaus ******* ******** ***** before**ã* *****'***** ** *** *** in *** ****** ** 2017.

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**.*.-****** ************** * ****** **** of *** ********* ******* of*** **********, **. ***** ** currently *** ******** ** São ***** [*****], ****** previously ****** ** *** Mayor ** *ã* ***** [city] *** ** ***** touted ** ********** ********* ** ******'* 2022 ************ ********.

** **** ****, **. Doria ******* *********'* ****** headquarters ** ********, *****, meeting **** ********* ******* manager ** ******** *** walking **** **** *** encounter **** * ******** of *,*** ******* *** a************** ****** ** $* million.

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** ******* ****,********* ********** *** ******** of *,*** ******* *** a *****, ****** ** *** 333,600 ($***,*** ** *** time), ** *ã* *****'* City ******* **** *******.

****-***** ***** ******* ** Hikvision ********** ** ********* and Á***** ** *****.

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********* *** ********* ** cultivate * ****** ************ with **. *****. ** December ****, ******** ***** announced *********** ** * ********* counter ***** ** *** Brazilian ******** ******** *** ***** ** São ***** *** *** at ***** *******.

Growing ********

***** *** ******* ** Hikvision's ***** ******** *** Mr. *****'* **** ** China, *********'* ******** ** Brazil, ********** ** *ã* Paulo, *** *****, ********* the********* **** *** ** 2017 ** ***** *********** from****É ****************.

**** **** ************ ****the ******* ********** *** ********* *** *ã* ***** *********** ** * ******** **** ***** ** ******* *** *******. The bet is simple: urban violence will oblige Brazilian government officials to invest in cameras, and Hikvision wants to be the principal supplier [emphasis added].

** ****,********* ****** * *****-**** deal ** ********* *** solutions **** *** ***** Corinthians******* ** *ã* *****, home ** ***********,******'* **** ******** ****** club.*******-******** ***** ********:

** **** ** *** three-year ****, ********* **** provide *** **,***-**** ******* with * ******** ******** combining * ****** ** products, **** ** *** AI-powered ****** *********** *******, and ****-******* ******* **** deliver ****** *** ****-******* images ** ****** ******** darkness, *** ********* ****** Plate *********** *******, ********* Pano-Vu ******* **** ***º panoramic ****, ** **** as ****** ******* *********, among ******. ** ** official ******* ** ******** technology, ********* ** **** responsible *** *** *********** and ********* ** *** Arena ***********’ ******** ******.

**** ********, ********* *** found * ********* ****** for *** ***** ****** technology ** ***** ** the ******* *****-** ********. Hikvision ***** ******* **** recently **** ********* ********** Brazil ** ****** **** as********, ****í*** (********* ******í*** ************* *******, **** *******, *** ********* ****),*****á,******á, ****ã* *****.

Business *******

****** ** ******* **** as *** *.*. ********, ********* ****** ** not ****** ***** *** its ***** ******** ********** to ** ******* *** has **** **** ** secure ****-********** *************** (*.*.***** ***********,****í*** ************* *******) ***** ******** ************* with ***** ********** ******** (e.g. **ã* *****), * feat **** *** ******* has ********* ** ******* elsewhere ** ***** *******.

******* ****** ******* **** also ********* **** ******* government-related/SOE ***************, **** ** those ********* *********, *** example, **** "***** ******* requirements." ** *********, ** "tropcalizing" ********, ********* ****** might ** **** ** participate ** ***** ***************. [The **** ******** **** IPVM *** **** ** find *********** ***** ********* ************** *****ó*****, *********, ***** **** *********-******* gas ******** *** ********* DVRs.]

***********, *** *********** ******* model **** ********* *** used ** ***** *** Brazilian ****** ** *** without *** *******.

** ** ***** ** IPVM, ***** ******* ************** expert********* ********* ******* **** Correa** ************* ** *ã* ********** **** *** ******** used ** ********* ** expand *** ****** ***** is *** *********** ** the **** ********* ** Brazil.

** * ****, ***** enters **** ******* ******* price *************; *******, ******* discussing *** ********* ******** of ********** ** *** purchasing ******. **** *********** a ************ ** ************* and ********** ********** ****, depending **** *** *************, may ** *******.

Hikvision: ** *******

**** ***** **** * representative *********, *********'* ********* ** firm; *******, ******* *** unable ** ******* ******* to ****'* ********* ***** Hikvision ******'* **********.

**** **** ******* *** to**** **** *******, *********'* ****** ************** and ** ********, *** politely ******** ** *******.

Comments (1)

*** **** ** * very ******** *** ********* report *** **** ***** Hik *** ****** ****** Tax ******* *** ***** capitalism ** **** ****...

**** ************* *** ***** cheaper/chinese ******* *** *** have ******* *** ****** in *** **** * years.

** **** * *** market, ****** *******, ******* dragged **** ** ***** and ***********. ***** ** a *** ** ****** opportunity ****, *** **** need ** ** **** patient.

****** **** *** ***'* see **** *********** ** Endusers *** ****** ***** much ***** ********, ***, if *** ***** ******** is ****, ****** ** is * *** ******* with * **** ** dept, ** **** ***** big ********.

** *** ********** ********...****, the ******* **** ** all...

********* ******* ******!

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