TCA/19/Suppl.1  
14 October  2022 
(22-7752) Page: 1/4 
Committee on Trade in Civil Aircraft  Original:  English  
 
  
COMMUNICATION FROM BRAZIL TO THE COMMITTEE ON TRADE IN CIVIL AIRCRAFT  
SUBMISSION OF RELEVANT INFORMATION FOR ACCESSION OF BRAZIL TO THE  
AGREEMENT ON TRADE IN CIVIL AIRCRAFT  
Supplement  
The following communication, dated and received on 13 October 2022, is being circulated at the 
request of the delegation of Brazil.  
 
_______________  
 
 
I would like to inform this Committee that I have received instructions from my government to 
submit relevant information on Brazil's applicatio n for accession to the WTO Agreement on Trade in 
Civil Aircraft.  
Please find attached Brazil 's submission with further clarifications and additional information on how 
it will implement the commitments provided in the Agreement on Trade in Civil Aircraft in the event 
of its accession.  
I would be grateful if you circulate this communication to the Members and Observers of the 
Committee on Trade in Civil Aircraft.  
Please accept the assurances of my highest consideration.  
Yours sincerely,  
Permanent Representative of Brazil to the World Trade Organization  
 
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  TCA/19/Suppl.1  
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  Brazil submitted its application for accession to the Agreement on Trade in Civil Aircraft, hereinafter 
referred to as "the Agreement ", to the Committee on Trade in Civil Aircraft on 14  June 2022 
(document TCA/19), together with its proposed tariff commitments (document TCA/19/Add.1). At 
this point, Brazil welcomes the opportunity to present relevant additional information on the 
implementation of the commitments provided in the Agr eement.  
 
After the Committee on Trade in Civil Aircraft agrees to the terms of the accession of Brazil according 
to the Guidance Note on the Implementation of Article  9.1.3 of the Agreement, Brazilian Government 
will submit the instrument of accession of t he Agreement to the Brazilian National Congress for 
deliberation. Once approved in the Congress, Brazil will be able to deposit the instrument of 
accession with the Director -General of the WTO. As a general rule, international trade agreements, 
after appro val by the National Congress and ratification/accession at the international level, are 
incorporated into the Brazilian legal system, in Portuguese language, as legislation at the same 
hierar chical status as ordinary laws.  
 
For the sake of clarity and tran sparency, Brazil has divided this document in topics, in line with the 
obligations set out in Articles  2 to 7 of the Agreement. Each topic details the implementation of the 
obligations of the respective Article.  
  TCA/19/Suppl.1  
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  Customs duties and other charges  
Brazil 's proposed tariff commitments under the obligations of Article  2.1 of the Agreement were 
submitted to the Committee on Trade in Civil Aircraft on June 14, 2022 (document TCA/19/Add.1). 
Once the discussions relating to Brazil 's tariff commitments are conclud ed within the Committee and 
the list of tariff lines reflecting these obligations is settled, Brazil would be ready to incorporate in 
due course the duty -free treatment to the referred products in its GATT Schedule.  
As already mentioned, as soon as Brazil 's accession procedures within the WTO are completed, the 
Agreement will undergo internal procedures for its internalization and entry into force in Brazil. It is 
important to point out, nevertheless, that - irrespective of the internalization of the Agreem ent - 
Brazil already applies duty -free treatment to all the products listed in Brazil 's proposed tariff 
commitments, when for use in civil aircraft. As a Member of MERCOSUR, Brazil is bound by 
MERCOSUR 's Tariff Regulation for Aeronautical Products. Under t his regulation, the listed tariff lines 
receive duty free treatment on imports. Only a very reduced number of tariff lines covered by the 
Agreement are not in the scope of Mercosur 's Tariff Regulation for Aeronautical Products. These tariff 
lines either ha ve 0% Common External Tariff (CET) or Brazil unilaterally has reduced their custom 
duties to 0% (Resoluções GECEX ns. 306 and 310/2022).  
Concerning the obligations under Article  2.1.2, Brazil 's current legislation already grants duty -free 
treatment to pro ducts used for repairing aircrafts.  
Regarding the commitments of Article  2.2 of the Agreement, Brazil already has an end -use system 
of customs administration that provides duty -free treatment comparable to the treatment provided 
by other Signatories and th at is not and impediment to trade  nor inconsistent with applicable 
provisions of the GATT and under other multilateral agreements negotiated under the auspices of 
the GATT . 
Technical barriers to trade  
Concerning the obligations under Article  3, regarding T echnical Barriers to Trade (TBT), Brazil 
participates actively in the discussions of the TBT Committee in the WTO and does not adopt any 
policy contrary to the TBT Agreement.  
The civil aviation regulatory authority in Brazil is the National Civil Aviation  Agency (ANAC), created 
by Law 11,182, on September  27th, 2005. ANAC is responsible for the regulation and control of civil 
aviation activities and airport and aeronautics infrastructure. ANAC also presides the Brazillian 
delegation in the International Ci vil Aviation Organization (ICAO), the specialized agency of the 
United Nations Organization for the promotion of safe and ordered development of international civil 
aviation.  
Government -directed procurement, mandatory sub -contracts and inducements  
Brazil 's procurement practices , guidelines and procedures  are already in line  with the requirements 
of the Agreement . They ensure that non -discriminatory standards  are applied in relation to firms of 
ATCA Signatories and that business opportunities are provided on  a competitive basis.  As a general 
principle, several provisions of the Public Procurement Law - Law 14,133/2021 - prohibit different 
treatment between national and foreign suppliers. As the current law already promotes this 
alignment, operational changes provided by the Secretariat of Management of the Ministry of 
Economy through Normative Instruction No. 10, of February 2020 ensured that even foreign 
companies not established in Brazil could access procurement opportunities.  
Trade restrictions  
Brazil does not apply quantitative restrictions or import licensing requirements to restrict imports of 
civil aircraft in a manner inconsistent with applicable provisions of the GATT and under other 
multilateral agreements negotiated under the auspices of the GATT . Similarly, there are no 
quantitative restrictions or export licensing requirements aimed at restricting, for commercial or 
competitive reasons, exports of civil aircraft to other Signatories in a manner inconsistent with 
applicable provisions of the GATT and under other multilateral agreements negotiated under the 
auspices of the GATT . TCA/19/Suppl.1  
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  Government support, export credits, and aircraft marketing  
In 2007, Brazil became a Participant to the "Sector Understanding on Export Credits for Civil Aircraft " 
(ASU), which is an annex to the Arrangement of Officially Supported Export Credits of the 
Organization for Cooperation and Economic Development (OECD). Therefore, the Brazilian official 
export credit support programs strictly follow the ASU guidelines, mean ing that they do not provide 
officially supported export credits in more favourable terms and conditions than those set out on the 
ASU.  
It should be noted that the Brazilian government provides three different official export credit 
support schemes for aircraft sales: 1) official export credit insurance (SCE), backed by a public 
guarantee fund; 2) direct export financing by the National Ba nk of Economic Development (BNDES -
Exim credit lines); and 3) interest rate support by the National Treasury, through a program called 
"Proex -Equalização ". These three schemes can be combined, so that, for example, a single 
transaction can be supported by a  loan provided by the BNDES with risk coverage by the SCE and 
interest support by the National Treasury. In every case, though, the Brazilian government makes 
sure that the final terms and conditions of the loan, including interest and premium rates, repay ment 
term and risk mitigants, are strictly in line with the ASU provisions, and submits a form with the 
details of the supported transaction to all Participants to the ASU, with a copy to its Secretariat.  
Finally, it should be highlighted that the ASU prov isions are legally binding for the three export credit 
support schemes. In this sense, the Resolution of the Foreign Trade Council (Camex) no. 15/2011 
establishes that "Brazilian official support for civil aircraft exports, either through direct financing or 
refinancing, credit insurance, interest rate support, or any combination of these modalities, shall 
follow the terms, conditions and procedures set out in the new ASU of the OECD ". Moreover, the 
Resolution of the National Monetary Council no. 4.897/2021 , which sets the conditions for the 
interest rate support provided by the National Treasury, explicitly states that "in the case of export 
financing for civil aircrafts and related parts, components and services, interest rate support shall 
be set accordin g to the particular features of each transaction, following the terms, conditions and 
procedures set out on the Aircraft Sector Understanding, whenever applicable. " 
Regional and local governments  
According to the Brazilian constitution, the President of th e Republic has the exclusive power to 
conclude international treaties, ad referendum of the National Congress. Additionally, as previously 
mentioned, the publication of the legislation with the terms of the Agreement by the Federal 
Government in Brazil aft er the international ratification or accession means this Agreement is a 
binding legal instrument in the country.  
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