Factory Line Shutdown

By Alexsandro Evangelista e Cristiane Rodrigues

What is a Factory Line Shutdown?

A factory line shutdown occurs when a company temporarily halts the production of certain products. This interruption must be communicated in advance to the Department of Economic Development, Science, Technology and Innovation (SEDECTI), at least 30 days before the shutdown, as established by Decree No. 47,727 of July 5, 2023. The shutdown is for a determined period before the project is canceled by Suframa and Sedecti.

What happens if the shutdown is not communicated?

A company that fails to report the shutdown within the established timeframe is subject to fines. According to Article 45 of State Decree No. 47,727/2023, a company that does not communicate the shutdown within the stipulated period is subject to a fine of R$ 20,000.00.

Are there other obligations related to the shutdown?

Yes. Companies with projects approved by the Superintendence of the Manaus Free Trade Zone (SUFRAMA) are also required to notify the agency about the shutdown and perform other related procedures. For any product whose production line has been shut down, the company must provide a justification to SUFRAMA.

Final Considerations

Strict compliance with these procedures is essential to ensure adherence to state and federal regulations. Non-compliance may result in significant penalties and adversely affect the company’s operational planning.