G/SCM/N/401/BRA  
 
1 September  2023 
(23-5878) Page: 1/11 
Committee on Subsides and  
Countervailing Measures  Original: English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF  
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
BRAZIL 
The following communication, dated and received on 21 August 2023 , is being circulated at the 
request of the delegation of Brazil.  
 
_______________  
 
 
The following notification constitutes Brazil's subsidies notification for the fiscal years 2021 and 
2022.1 
This notification does not prejudge the nature or legal status of the programmes herein under 
GATT  1994 and Articles 1 and 2 of the Agreement on Subsidies and Countervailing Measures (ASCM). 
Data may reflect approximations, estimates or preliminary info rmation. Technical or legal 
inaccuracies may have been inadvertently introduced in the text in the attempt to make the 
description of the programmes sufficiently illustrative, but also straightforward and concise. For 
transparency purposes, Brazil may have  included certain programmes that arguably are not specific 
within the meaning of the ASCM and/or are not covered by that Agreement.  
Table of Contents  
1   INDUSTRIAL INCENTIVES  ................................ ................................ ...........................  2 
1.1   Capacity Building and Competitiveness Enhancement in Information and 
Communication Technology  ................................ ................................ ................................ .. 2 
1.2   Productive Development Policy  ................................ ................................ ......................  3 
1.3   Rota 2030 Programme – Mobility and Logistics  ................................ ................................  4 
1.4   Reporto - Tax Regime to Encourage Modernization and Expansion of Port Structure  .............  5 
2   REGIONAL INCENTIVES ................................ ................................ ...............................  6 
2.1   Amazon Development Authority and Northeast Region Development Authority  ....................  6 
2.2   Regional Development and Promotion of R&D and Technological Innovation Programme  ...... 8 
3   FISHERIES INCENTIVES  ................................ ................................ ..............................  9 
3.1   Diesel Oil Price Equalization Scheme  ................................ ................................ ..............  9 
3.2   Programme for Vessel Fleet Enlargement and Modernization  ................................ ...........  10 
  
 
1 The ministries and agencies referred  to in this notification were those in place during the period of the 
notification. After January 2023 there has been a reformulation of the government structure in Brazil which is 
not reflected in this notification.  G/SCM/N/401/BRA  
 
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  1  INDUSTRIAL INCENTIVES  
1.1  Capac ity Building and Competitiveness Enhancement in Information and 
Communication Technology  
1. Title of the subsidy programme  
Capacity building and competitiveness enhancement in Information and Communication Technology 
and related fields.  
2. Period covered by the notification  
From January 2021 to December 2022. 
3. Policy objective and/or purpose  of the subsidy  
To encourage manufacturers of information and communication technology goods to invest in 
research and development activities (R&D), create new products and improve the country's 
competitiveness.  
4. Background  and authority  for the subsidy  
Law 8 .248/91, as amended by Law 10.176/01, by Law 11 .077/04, by Law 13 .674/18 and by 
Law 13.969/19.  
Within their respective area s of responsibility, the Ministry of Economy and the Ministry of Science, 
Technology and Innovation manage the provision of incentives – such as financial credit proportional 
to the investment in R&D carried out by the company – and monitor companies ' investment in 
research, development and innovation activities.  
5. Form of  the subsidy  
Qualifying companies may be granted an amount of financial credits calculated on determined 
investments made in research, development, and innovation activities. To qualify for t his 
programme, companies must invest at least 4% of their turnover from product sales (after deduction 
of other indirect taxes) in research, development and innovation activities.  
6. To whom and how the subsidy is provided  
To manufacturers of information and communication technology goods, through  financial credits 
provided by the Federal Government.  
7. Total amount  of the subsidy*  
Fiscal Year 2021: R$ 6,652.55 million;  
Fiscal Year 2022: R$ 7,480.93 million.  
*Estimated value.  
8. Duration  of the subsidy  
The programme  will be phased out by 2029.  
9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
N.A. G/SCM/N/401/BRA  
 
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  1.2  Productive Development Policy  
1. Title of the subsidy p rogramme  
Productive Development Policy  
2. Period covered by the notification  
From January 2021 to December 2022. 
3. Policy objective and/or purpose  of the subsidy  
Support for shipbuilding, vessels maintenance and aircraft maintenance industries.  
4. Background  and authority  for the subsidy  
Law 8.032/90, art. 2º, II, "j"; Law 8.402/92, art. 1., IV; Law 9.4 32/97, art. 11; Law 11.774/08, 
art. 15; MP 2.158 -35/01, art. 14, VI and § 1; Law 10.865/04, art. 8, § 12, I, VI and VII, art. 28, 
IV and X.  
The Ministry of Economy is responsible for the inspection of the tax incentives and the Ministry of 
Defense is respo nsible for the Brazilian Special Register (REB).  
5. Form of  the subsidy  
a. Exemption of tax levied on the importation of parts and components intended for repair, 
overhaul and maintenance of vessels and aircraft. Exemption of Import Tax – II – and on 
Tax on Industrialized Products – IPI – levied on the importation of parts and co mponents 
intended for employment in the construction, conservation, modernization, conversion or 
repair of vessels registered in the REB.  
b. Exemption of the contribution for the PIS/Pasep and Cofins on the revenue obtained by 
Brazilian shipyards in the activ ities of construction, conservation, modernization, 
conversion or repair of vessels pre -registered or registered in the REB. Reduction to zero 
of the rates of contribution to the contribution for the PIS/Pasep and Cofins levied on the 
gross revenue from sa les in the domestic market or the importation of materials and 
equipment, parts and components, employed in the construction, maintenance, 
modernization and conversion of vessels registered or pre -registered in the REB.  
Reduction to zero of the contributio n for the PIS/Pasep and Cofins tax rates on the sale or 
importation of aircraft classified under heading 88.02 of Tipi, its parts, tools, components, 
supplies, hydraulic fluids, paints, anti -corrosives, lubricants, equipment, services and raw 
materials to be used in the maintenance, conservation, modernization, repair, overhaul, 
conversion and industrialization of aircraft, their engines, parts, components, tools and 
equipment.  
6. To whom and how the subsidy is provided  
Exemptions of II and IPI indicated in item 5 (a) may be directed to national shipyards, airlines and 
aeronautical maintenance enterprises.  
Exemption and reduction of indirect taxes referring to the contribution for the PIS/Pasep and Cofins 
mentioned in 5(b) may be granted to shipyards that carry out activities of building, conservation, 
modernization, conversion or repair of vessels registered in the REB.  
The reduction to zero of the contribution for the PIS/Pasep and Cofins rates mentioned in item 5 (b) 
applies to acquisitions and imports of the aforementioned goods . G/SCM/N/401/BRA  
 
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  7. Total amount  of the subsidy * 
Fiscal Year 2021: R$ 4 ,839.35 million;  
Fiscal Year 2022: R$ 5 ,445.06 million.  
*Estimated values.  
8. Duration  of the subsidy  
There is no pre -established time limit for the programme's termination.  
9. Statistical  data permitting an assessment of the t rade effects  of the subsidy  
N.A. 
1.3  Rota 2030 Programme – Mobility and Logistics  
1. Title of the subsidy programme  
Rota 2030 Programme - Mobility and Logistics.  
2. Period covered by the notification  
From January 2021 to Decemb er 2022. 
3. Policy objective and/or purpose  of the subsidy  
To foster technological development of the domestic automotive industry, through  energy efficiency 
and environmental sustainability, by creating incentives for R&D activities.  
4. Background and authority  for the subsidy  
Law 13 .755/18.  
The Ministry of Economy is responsible for formulating, managing and monitoring the Rota  2030 
Programme. Some responsibilities are shared with other Ministries and federal agencies, such as the 
Ministry of Science, Technology and Innovations, the National Institute of Metrology, Quality and 
Technology - INMETRO, the Brazilian Institute of Environment and Renewable Natural Resources - 
IBAMA, among others.  
5. Form of the subsidy  
Fiscal incentives based on a formula regard ing the volume of R&D expenditures.  
6. To whom and how the subsidy is provided  
The subsidy is directed to companies that manufacture vehicles and their parts and pieces and is 
granted through  a reduction in the calculation basis of the Corporate Income Tax (I RPJ) and the 
Social Contribution on Net Profit (CSLL).  
7. Total amount  of the subsidy * 
Fiscal Year 2021: R$ 127 .01 million;  
Fiscal Year 2022: R$ 140 .44 million.  
*Estimated values.  G/SCM/N/401/BRA  
 
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  8. Duration  of the subsidy  
From December 2018 to December 2023.  
9. Statistical data p ermitting an assessment of the t rade effects  of the subsidy  
N.A. 
1.4  Reporto - Tax Regime to Encourage Modernization and Expansion of Port Structure  
1. Title of the subsidy p rogramme  
Reporto.  
2. Period covered by the notification  
Reporto expired on December 31st, 2020. However, on January 1st, 2022, Reporto was reinstated . 
The new deadline for this regime is December 31, 2023.  
3. Policy objective and/or purpose  of the subsidy  
Modernization and expansion of port structure.  
4. Background and authority  for the subsidy  
Law 1 1.033/04, arts. 13 to 15 and Decree 6.582/08.  
 
The Ministry of Economy is responsible for the inspection of the tax incentives.  
5. Form of the subsidy  
Suspension and subsequent exemption of II, IPI and the contribution for the PIS/Pasep and Cofins  
on imports, and of IPI and the contribution for the PIS/Pasep and Cofins on domestic purchases of 
machinery, equipment, spare parts and other goods imported by Reporto beneficiaries and destined 
to their fixed assets for exclusive use in carrying out  the following services: loading, unloading, 
storage and handling of goods and products; supplementary operational support systems; 
environmental protection; security systems and monitoring of the flow of people, goods, products, 
vehicles and vessels; dredging;  and training of workers, including the implementation of Professional  
Training Centers.  
6. To whom and how the subsidy is provided  
Beneficiaries of Reporto are the port operator, the port concessionaire, the tenant of a public port 
facility and the company a uthorized to operate a mixed or exclusive private port facility, including 
those operating with offshore vessels, railroad concessionaries, dredging companies, secondary zone 
customs office and Professional Training Centers.  
7. Total amount  of the subsidy * 
Fiscal Year 2021: None; 
Fiscal Year 2022: R$ 266 .80 million.  
*Estimated values.  
8. Duration  of the subsidy  
From January 1st, 2022, to December 31st, 2023  G/SCM/N/401/BRA  
 
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  9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
N.A. 
 
2  REGIONAL INCENTIVES  
2.1  Amazon Development Authority and Northeast Region Development Authority  
1. Title of the subsidy programme  
Amazon Development Authority (SUDAM) and Northeast Region Development Authority (SUDENE).  
2. Period covered by the notification  
From January 2021 to December 2022. 
3. Policy objective and/or purpose  of the subsidy  
SUDAM and SUDENE programmes provide assistance to the economically disadvantaged Amazon 
and Northeast regions (this latter includes the Northern areas  of the States of Espírito Santo and 
Minas Gerais), through  income tax reductions.  
The purpose of SUDAM and SUDENE is to reduce economic and social imbalances between the 
Brazilian regions by means of compensatory mechanisms for the sustainable development and 
competitive integration in the national economy o f the North and Northeast Regions.2 
The area covered by SUDAM is denominated "Amaz ônia Legal ", or the Amazon Region, 
encompassing the States of Acre, Amapá , Amazonas, Mato Grosso, Pará, Rondônia, Roraima, 
Tocantins, and part of the State of Maranhão. The Amazon Region is an area of continental 
dimensions covering 5,046,143 square kilometers and corresponding to 59% of Brazil's territory and 
approximately 70%  of the so -called Pan -Amazon or Continental Amazon, which has a population of 
approximately 22 million inhabitants heavily concentrated in urban areas and some of it scattered 
widely across a vast rural area.  
4. Background  and authority  for the subsidy  
SUDAM was established by Law 5174/66. SUDENE was established by Law 3692/59. Provisional  
Measures 2156 -5 and 2157 -5, of August 2001, extinguished both authorities and the programmes 
they administered. The same Provisional Measures replaced those authorities by " Agência do 
Desenvolvimento da Amazônia" (ADA) and "Agência do Desenvolvimento do Nordeste" (ADENE). On 
3 January 2007, ADA and ADENE were extinguished by Supplementary Laws 124/07 and 125/07, 
respectively, being replaced by SUDAM and SUDENE. The changes in troduced by Supplementary 
Laws 124/07 and 125/07 relate mainly to the legal structure and legal nature of those authorities.  
Both programmes are under the responsibility of SUDAM and SUDENE, as established by 
Supplementary Law 124/07 and Supplementary Law 125/07. Law 9 .532/97 regulates the tax 
 
2 The Constitution of Brazil, in its ar ticle 3, item III of Title I, regarding the Fundamental Principles,  
considers that "the fundamental objectives of the Federative Republic of Brazil are to eradicate poverty and  
substandard living conditions and to reduce social and regional inequalities". In Section IV (article 43,  
paragraph 2, item III) of Chapter VII, Title III, which refers to the Organization of the State considers that "the  
regional incentives shall include, among others, as prescribed by law, exemptions, reductions or temporary  
deferm ent of federal taxes owed by individuals or by legal entities". In article 151, item I, Section II of Title VI,  
regarding Taxation and Budget considers that "it is forbidden for the Union: to institute a tax which is not  
uniform  throughout  the entire natio nal territory  (...), it being  allowed  to grant  tax incentives  for the purposes  
of promoting the balanced social and economic development of the various regions of the country". In 
article  Â 165, paragraphs 6 and 7, Section Â II of Chapter II, Public Finances, of the previous Title, considers 
that "the  budget bill shall be accompanied by a regionalized statement on the effect on revenues and 
expenses, deriving  from exemptions, forgiveness,  remissions,  subsidies  and benefits  of a financial,  tributary  
and credit  nature  (Â§Â 6). The budget set forth (...) in consistence with the pluriannual plan, shall include the 
functions of  reducing  interregional inequalities, according  to population criteria (Â§  7)". G/SCM/N/401/BRA  
 
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  exemptions and reductions. Provisional Measure 2199/01, as amended by Law 11 .196/05 and by 
Law 13 .799/19, is the most recent regulation on the matter.  
5. Form of the subsidy  
Income tax reductions.3 
6. To whom and how the s ubsidy is provided  
The program is directed to industrial and agricultural enterprises with undertakings in the Amazon 
Region, the Northeast Region and the Northern region of the States of Espírito Santo and Minas 
Gerais.  
The incentives administered by SUDA M and SUDENE are directed to the legal entities that apply for 
the implementation, modernization, expansion, or diversification of enterprises, registered and 
approved until 12/31/2023, with a 75% (seventy -five percent) reduction or exemption of the 
Corpor ate Income Tax (IRPJ), including non -refundable additionals, for a period of 10 (ten) years, 
as well as the reduction of the reinvestment of 30% of the IRPJ, through  a deposit made on the 
same date as the collection of the IRPJ, at Banco do Nordeste S.A. a nd Banco Amazônia S.A. 
branches.  
These resources may be used by companies operating in the regions of operation of SUDAM and 
SUDENE for modernization, implementation, expansion and diversification of their production lines.  
Exclusively for the right to exe mption from the IRPJ, the activities of the enterprise shall be limited 
to the manufacturing of machines, equipment, instruments, and devices, based on digital 
technology, in the context of the Federal Government's digital inclusion program.  
The production  unit that is the object of the incentive must be located and operating in the SUDAM 
or SUDENE area. The activities of the enterprise object of the incentive must belong to the sectors 
of the economy considered as priorities for regional development, as de fined in specific legislation.  
The legal entity that owns the enterprise must opt for taxation based on the actual  profit.  
7. Total amount  of the subsidy * 
SUDAM:  
Fiscal Year 2021: R$ 4 ,993.49 million;  
Fiscal Year 2022: R$ 5 ,615.29 million.  
SUDENE:  
Fiscal Year  2021: R$ 7 ,054.77 million;  
Fiscal Year 2022: R$ 7 ,933.24 million.  
*Estimated values  
8. Duration  of the subsidy  
Companies are allowed to submit projects until 31 December 2023. The income tax reduction is 
terminated after 10 years from the date on which the i ndustry started its operation.  
9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
N.A. 
 
3 Companies which submitted the project until 14 November 1997 and which were granted income tax  
exemption  will be entitled  to such exemption until  the date specified in the  act of concession.  G/SCM/N/401/BRA  
 
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  2.2  Regional Development and Promotion of R&D and Technological Innovation 
Programme  
1. Title of the subsidy programme  
Regional Development and Promotion of Research and Development and Technological Innovation 
Programme.  
2. Period covered by the notification  
From January 2021 to December 2022. 
3. Policy objective and/or purpose  
To reduce economic and social imbalances between Brazilian regions by means of compensatory 
mechanisms for the development of the North, Northeast and Midwest regions and to promote 
investment in research, development and technological innovation in the North, Northeast and 
Midwest regions. For the purpo se of the programme, the Midwest region does not comprise the 
Federal District.  
4. Background  and authority  for the subsidy  
Law 9.826/1999, amended by Law 12.973/2014 and by Law 14.076/20, and Law 9.440/97, 
amended by Laws 12.407/11 and 13.755/2018.  
The Minis try of Economy is responsible for determining the requirements for the submission and 
approval of projects and for the evaluation, approval and monitoring of the programme. The Ministry 
of Science, Technology and Innovation is responsible for verifying the  proof of investment in research 
and development and technological innovation in the regions covered by the programme.  
5. Form of the subsidy  
Tax reduction.  
6. To whom and how the subsidy is provided  
Under Law 9.826/99, industrial enterprises in the North, North east and Midwest regions are entitled 
to a reduction of 32% of IPI levied on sales of products classified under codes 8702 to 8704 of the 
Table of Incidence of IPI. The reduction may be applied on products produced in the domestic market 
or directly import ed. 
 
Under Law 9.440/97, industrial enterprises in the North, Northeast and Midwest regions are entitled 
to IPI reduction. Companies shall invest, at least, 10% of the value corresponding to IPI reduction 
in research and development and technological innov ation in the regions covered by the programme.  
7. Total amount  of the subsidy * 
Fiscal Year 2021: R$ 4 ,618.98 million;  
Fiscal Year 2022: R$ 5 ,107.52 million.  
*Estimated values  
8. Duration  of the subsidy  
Expiration is scheduled for December 2025.  
9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
N.A. G/SCM/N/401/BRA  
 
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  3  FISHERIES INCENTIVES  
3.1  Diesel Oil Price Equalization Scheme  
1. Title of the subsidy programme  
Programme for Economic Subvention to the Price of Diesel Oil Used by Fishing Vessels . 
2. Period covered by the notification  
From January 2021 to December 2022. 
3. Policy objective and/or purpose  of the subsidy  
The main objective of the programme is to equalize the domestic price of maritime diesel paid by 
fishing companies or fishermen with the  international market price.  
4. Background  and authority  for the subsidy  
The programme was established by Law No. 9.445/97 and regulated by Decree No. 7 .077/10. 
Law 13.844/19  establishes that the Ministry of Agriculture, Livestock and Food Supply is responsib le 
for operationalizing the concession of the subvention, which, according to Decree 10.253/20, is 
accomplished by its Secretariat of Aquaculture and Fisheries .4 
In order to qualify for the equalization scheme, the fishing companies or fishermen must comply 
with administrative procedures set by regulation of the Ministry of Agriculture, Livestock and Food 
Supply, which take into account vessel control and other administrative issues.  
5. Form of the subsidy  
Reimbursement of the difference between the price  of maritime diesel in Brazil and that of 
international markets. This equalization payment, however, is limited to 25% of the price of maritime 
diesel at the refinery level.  
6. To whom and how the subsidy is provided  
Recipients enrolled in the Diesel Oil Pric e Subsidy Program for National Fishing Vessels are ship 
owners  or lessees of fishing vessels, Brazilian citizens or legal Brazilian entities.  
 
In order to enrol in the Program and receive the benefit, fishing vessels must be registered within 
the General F isheries Registry (RGP) and the monitoring systems, including the registries at the On-
board  Maps and the National Program for Tracking Fishing Vessels by Satellite (PREPS).  
 
The Economic Subsidy Program grants two types of benefits: the federative state t ax exemption, 
which grants tax exemption from the Tax on Circulation of Goods and Services (ICMS) within the 
27 Brazilian states and the Federal District, where the enrolled recipient resides; and the Federal 
Subsidy, which will be equivalent to the percen tage of the billing price of diesel oil at the refinery, 
without the incidence of ICMS, limited to the specific annual budget allocations. The value of the 
economic subsidy will be up to twenty -five percent of the diesel oil billing at the refinery, exclud ing 
ICMS.  
7. Total amount  of the subsidy  
Fiscal Year 2021: R$ 123,403.75;  
Fiscal Year 2022: R$ 317,499.78.  
 
4 Provisional Presidential Decree (MP) No. 1.154/2023 establishes that the Ministry of Fisheries and 
Aquaculture  is now responsible for operationalizing the concession of this subvention, w hich, according to 
Decree No. 11.352/2023, is accomplished by its National Secretary of Industrial Fisheries.  G/SCM/N/401/BRA  
 
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  8. Duration  of the subsidy  
Not defined.  
9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
N.A. 
3.2  Programme for Vessel Fleet Enlargement and Modernization  
1. Title of the subsidy programme  
National Programme for Financing the Enlargement and Modernization of the National Fishing Fleet  – 
PROFROTA Pesqueira.  
2. Period covered by the notification  
From January 2021 to December 2022. 
3. Policy objective and/or purpose  of the subsidy  
Construction, acquisition and improvements of fishing vessels in order to enhance the ocean fishing 
fleet, taking into consideration environmental criteria of sustainability (including management of 
fishing activit ies). 
Replacement of coastal and continental fleet fishing vessels with the objective of renewing them, 
taking into consideration environmental criteria of sustainability (including management of fishing 
effort).  
Modernization, conversion, equipping and ad aptation of fishing vessels to enhance the management 
control on fishing activities, taking into consideration environmental criteria of sustainability.  
4. Background  and authority  for the subsidy  
The programme was established by Law No. 10.849/04 , modified b y Law 12.712/2012  and regulated 
by Decree No. 5.474/05 and Decree No. 6.746/09.  
The Ministry of Agriculture, Livestock and Food Supply, through its Secretariat of Aquaculture and 
Fisheries, is responsible for the administration of the programme. In order t o participate in this 
Programme, the recipients must comply with administrative procedures set by regulation of the 
Ministry of Agriculture, Livestock and Food Supply. This Ministry conducts the technical assessment 
of the projects.  
The program me is financ ed with resources from the Merchant Marine Fund - FMM and the 
Constitutional Funds for Financing the North - FNO and the Northeast - FNE. The FMM is subordinated 
to the Ministry of Infrastructure, the FNO to the Banco da Amazônia and the FNE is linked to B anco 
do Nordeste.  
5. Form of the subsidy  
A "non -default" bonus ("paid -on time" instalment  performance bonus) calculated on the interest due 
of the financed amount, taking into consideration environmental, social and targeted species 
stimulus issues.  
This performance bonus may be granted to the loan taker, in a non -cumulative way, to be calcula ted 
only on the interest amount of the loan. It is only granted when the instalment  of the loan is paid 
on time and taking into consideration sustainability criteria and improvements in the working 
conditions for the workers in the vessel.  
The bonuses can be of 5%, 20% and 30%.  G/SCM/N/401/BRA  
 
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  6. To whom and how the subsidy is provided  
Recipients are fishing vessel owners or charters (natural or legal persons); professional fishermen 
and fishing industries; industrial fishing companies (natural or legal persons and cooperativ es 
dedicated to fishing activities).  
The bonus may be  granted only when the instalment  of the loan is paid on time and sustainability 
criteria and improvements in the working conditions for the workers in the vessel are met. In 
operational terms, it genera tes a discount in the interest payment to be made on that instalment.  
7. Total amount  of the subsidy  
Fiscal Year 2021: R$ 0.00;  
Fiscal Year 2022: R$ 0.00.  
8. Duration  of the subsidy  
Not defined.  
9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
N.A. 
 
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