G/SCM/N/284/BRA  
 
28 April 2017  
(17-2336) Page: 1/13 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF THE G ATT 1994  
AND ARTICLE 25 OF TH E AGREEMENT ON SUBSI DIES 
AND COUNTERVAILING M EASURES  
The following communication, dated 20 April 2017, is being circulated at the request of the 
Delegation o f Brazil.  
 
_______________  
 
 
The following notification constitutes Brazil's subsidies notification for the fiscal years of 2013 and 
2014.  
 
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 information. 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 
information purposes, Brazil has included certain programmes which arguably are not specific 
within the meaning of the Agreement.  G/SCM/N/284/B RA 
 
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1  INDUSTRIAL INCENTIVE S 
1.1  Support Program for the Development of the Pharmaceutical Productive Chain 
(PROFARMA Innovation – small and medium -sized companies)  
 
1. Title of the programme  
 
Support Programme for the Development of the Pharmaceutical Productive Chain (Profarma 
Innovation - small and medium -sized companies).  
 
2. Period covered by the notification  
 
From April 2013 to December 2014.  
 
3. Policy objective and/or purpose  
 
PROFARMA Innovation aims at supporting projects which contribute to foster an innovative 
environment in Brazi l's health industry. PROFARMA Innovation supports R&D efforts made in Brazil 
by the pharmaceutical and medical devices companies with special conditions for small and 
medium companies.  
 
4. Legislation and authority  
 
The Brazilian Development Bank (BNDES) i s responsible for the administration of the programme. 
During the period covered by this notification, the programme was operated in accordance with 
BNDES' Resolution 2487/2013, updated by BNDES' Resolution 2696/2014.  
 
5. Form of subsidy  
 
Long-term direct loans, with minimum value of R$ 1 million and maturity up to 12 years. 
Maximum participation rate of 80%. Interest rate was TJLP (Long Term Interest Rates - 7,5% per 
annum, as of June 2016) plus 1% (BNDES' remuneration), with exemption of risk spread.  
 
6. To whom and how the subsidy is provided  
 
Pharmaceutical / biotechnological products' and medical devices' suppliers, all of them small or 
medium -sized companies.  
 
7. Total amount  
 
Fiscal Year 2013 - Profarma Innovation - small and medium -sized companies: R $ 27,726,315  
Fiscal Year 2014 - Profarma Innovation - small and medium -sized companies: R$ 1,910,313  
 
8. Duration  
 
According to Resolution Number 2487/2013, as amended, the key financial conditions of BNDES' 
support for Health Industry Innovation are valid  until April 2017.  
 
9. Trade effects  
 
N.A. 
 
1.2  Capacity Building and Competitiveness Enhancement in Information Technology  
1. Title of the programme  
 
Capacity building and competitiveness enhancement in Information Technology and related fields.  
 
 G/SCM/N/284/B RA 
 
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  2. Period c overed by the notification  
 
From January 2013 to December 2014.  
 
3. Policy objective and/or purpose  
 
To encourage manufacturers of information technology goods to invest in research and 
development activities, create new products and improve the country's competitiveness.  
 
4. Legislation and authority  
 
Law 8248/91, as amended by Law 10.1076/01 and, also, by Law 11077/04.  
Within their respective area of responsibility, the Ministry of Development, Industry and Foreign 
Trade and the Ministry of Science and Te chnology manage the provision of benefits such as partial 
tax exemption and the follow up of the counterparts offered, such as research and execution of 
development programmes.  
 
5. Form of subsidy  
 
Exemption or reduction of the Indirect Tax on Industrializ ed Products (IPI) for information 
technology goods.  
 
Reduction of IPI for raw materials, intermediate goods and material from used packages. To 
qualify for this programme, companies must invest at least 5% of their turnover from product 
sales (after deduct ion of other indirect taxes) and the value of the acquisition of the products 
benefited by the programme, in research and development activities.  
 
6. To whom and how the subsidy is provided  
 
Industrial enterprises, through tax credits provided by the Feder al Government at the amount of 
due deductive taxes.  
 
Research Institutes, Centers and Laboratories, through financial support from industrial enterprises 
which choose to outsource the execution of research projects.  
 
7. Total amount  
 
Fiscal Year 2013 R$ 4, 934.90 million.  
Fiscal Year 2014 R$ 5,207.25 million (estimated).  
 
8. Duration  
 
The programme will be phased out by 2029.  
 
9. Trade effects  
 
N.A. 
 
1.3  Productive Development Policy  
1. Title of Programme  
 
Productive Development Policy  
 
2. Period covered by the notification  
 
From January 2013 to December 2014.  
 G/SCM/N/284/B RA 
 
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  3. Policy objective and/or purpose  
 
Support for shipbuilding industry and aircraft maintenance  
 
4. Legislation and authority  
 
Law 8.032/90, art. 2º, II, "j"; Law 8.402/92, art. 1.º, IV; Law 9.493/97, arts.  10 and 11; Law 
11.774/08, art. 15; MP 2.158 -35/01, art. 14, VI and § 1º; Law 10.865/04, art. 8º, § 12, I, VI and 
VII, art. 28, IV and X.  
 
The Ministry of Finance is responsible for the inspection of the tax incentives and the Ministry of 
Defense is respon sible for the Brazilian Especial Register (REB).  
 
5. Form of 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 IPI 
levied on t he importation of parts and components intended for employment in the 
construction, conservation, modernization, conversion or repair of vessels registered in 
the REB, provided that they are carried out in Brazilian shipyards.  
b. Exemption of PIS/Cofins on th e revenue obtained by Brazilian shipyards in the activities 
of construction, conservation, modernization, conversion or repair of vessels pre -
registered or registered in the Brazilian Special Registry (REB). Reduction to zero of the 
rates of contribution t o PIS / PASEP and COFINS levied on the gross revenue from sales 
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 pr e-registered in the REB. Reduction to zero of the PIS / PASEP 
and COFINS tax rates on the sale or import of aircrafts classified under heading 88.02 of 
Tipi, its parts, tools, components, supplies, hydraulic fluids, paints, anticorrosives, 
lubricants, equi pment, 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 of item 5 (a) benefit national shipyards, airlines and aeronautical 
maintenance enterprises.  
 
The exemption and reduction of indirect taxes PIS and COFINS mentioned in 5(b) is granted to 
shipyards that execute the activities of bu ilding, conservation, modernization, conversion or repair 
of vessels registered in the Brazilian Especial Register (REB).  
 
The reduction to zero of the PIS and Cofins rates of item 5 (b) is objective and applies to 
acquisitions and imports of the goods men tioned, regardless of the beneficiary  
 
7. Total amount  
 
Fiscal Year 2013: R$ 1,126,658 million.  
Fiscal Year 2014: R$ 1,226,045 million (estimated).  
 
8. Duration  
 
There is no pre -established time limit for its termination.  
 
9. Trade effects  
 
N.A. 
 G/SCM/N/284/B RA 
 
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  1.4  REPORTO - Tax Regime to Encourage Modernization and Expansion of Port Structure  
1. Title of Programme  
 
Reoporto  
 
2. Period covered by the notification  
 
From January 2013 to December 2014.  
 
3. Policy objective and/or purpose  
 
Modernization and expansion of port stru cture 
 
4. Legislation and authority  
 
Law 11.033/04, art. 13 to 15 and Decree 6.582/08  
The Ministry of Finance is responsible for the inspection of the tax incentives.  
 
5. Form of subsidy  
 
Suspension and subsequent exemption of II, IPI, PIS and Cofins on im ports, and of IPI, PIS 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 the execution of the 
following services: loading, unloadi ng, 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 authorized 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  
 
Fiscal Year 2013: R$ 269,182 million.  
Fiscal  Year 2014: R$ 255,282 million (estimated).  
 
8. Duration  
 
Until 31 December 2020.  
 
9. Trade effects  
 
N.A. G/SCM/N/284/B RA 
 
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2  REGIONAL INCENTIVES  
2.1  Amazon Development Authority and Northeast Region Development Authority  
"Superintendência para o Desenvolvimento da Amazônia" (SUDAM), the Amazon Region 
Development Authority, was established by Law 5174, dated 27 October  1966. "Superintendência 
para o Desenvolvimento do Nordeste" (SUDENE), the Northeast Region Development Authority, 
was established by Law 3692, dated 15 December 1 959. 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 Dese nvolvimento do Nordeste" (ADENE). On 3 January 2007, ADA and 
ADENE were extinguished by Supplementary Laws 124/2007 and 125/2007, respectively, being 
replaced by SUDAM and SUDENE. The changes introduced by Supplementary Laws 124/2007 and 
125/2007 relate ma inly to the legal structure and legal nature of those authorities.  
 
1. Title of programme1 
 
SUDAM and SUDENE programmes provide assistance to the economically disadvantaged Amazon 
and Northeast regions by means of income tax reductions.  
 
2. Period covered by the notification  
 
From January 2013 to December 2014.  
 
3. Policy objective and/or purpose  
 
To reduce economic and social imbalances between the Brazilian regions by means of 
compensatory mechanisms for the development of the North and Northeast Regions.  
 
The area covered by SUDAM is denominated "Legal Amazonia", 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 contine ntal 
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 
scattered widely across a vast rural area. The jurisdiction of SUDENE encompasses the states of 
Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas, Sergipe, Bahia and Maranhão, 
in addition to the north of State of Espírito Santo and an area of the state of Minas Gerais included 
in the so -called "polígono das secas" (drought area in Northeastern Brazil).  
 
4. Legislation and authority  
 
Both programmes are under the responsibility of SUDAM and SUDENE, as established by 
Suppleme ntary Law 124/2007 and Supplementary Law 125/2007. Law 9532/97 regulates the tax 
exemptions and reductions. Provisional Measure 2199/01, as amended by Law 11196/2005, is the 
most recent regulation on the matter.  
 
                                                
1 The Constitution of Brazil, in its article 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 
substanda rd 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 ot hers, as prescribed by law, exemptions, reductions or temporary 
deferment 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 Unio n: to institute a tax which is not 
uniform throughout the entire national 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 articl e 
165, paragraphs 6 and 7, Section  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, rem issions, subsidies and benefits of a financial, tributary and credit nature (§ 
6). The budget set forth (...) in consistence with the pluriannual plan, shall include the functions of reducing 
interregional inequalities, according to population criteria (§ 7)". G/SCM/N/284/B RA 
 
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  5. Form of subsidy  
 
Income tax exemptions a nd reductions.2 
6. To whom and how the subsidy is provided  
 
Beneficiaries are industrial and agricultural enterprises with undertakings in the Amazon or 
Northeast Regions.  
 
7. Total amount  
 
 2013 - R$ million  2014 - R$ million*  
Sudam  1,811.15  1,922.50  
Sudene 2,671.95  2.831.58  
Total 4,483.10  4,754.08  
* estimated values.  
 
8. Duration  
 
Companies are allowed to submit projects until 31 December 2018. The income tax reduction 
benefit is terminated after 10 years from the date that industry starts its operati on. 
 
9. Trade effects  
 
N.A. 
 
2.2  Investment Funds for the Amazon, the Northeast Regions and the State of Espírito 
Santo (Finam/Finor/Funres)  
1. Title of programme  
 
"Fundo de Investimento da Amazônia" (Amazon Investment Fund - FINAM), "Fundo de 
Investimento do Nordeste" (Northeast Region Investment Fund - FINOR) and "Fundo de 
Recuperação Econômica do Estado do Espírito Santo" (Fund for the Economic Recovery of the 
State of the Espirito Santo - FUNRES).  
 
2. Period covered by the notification  
 
From January 2013 t o December 2014.  
 
3. Policy objective and/or purpose  
 
Reduce economic and social imbalances between the Brazilian regions by means of compensatory 
mechanisms for the development of the North (Amazon) and Northeast regions and for the state of 
Espírito Sant o. 
 
4. Legislation and authority  
 
FINOR and FINAM previously administered by SUDAM and SUDENE are now under the 
responsibility of the Ministry of National Integration (MI). Banco da Amazônia S.A. (BASA), and 
Banco do Nordeste do Brasil S.A. (BNB) are respe ctively the financial agents of the Funds. FUNRES 
is administered by Grupo de Recuperação Econômica do Estado do Espírito Santo (GERES), and 
Banco de Desenvolvimento do Espírito Santo S.A. is the financial agent of this fund.  
The Secretariat of Federal Rev enue of Brazil and the National Treasury Secretariat of the Ministry 
of Finance are charged with the funding mechanisms of resources to FINAM, FINOR and FUNRES.  
 
The main legislation is the following: Law 8167, of 16 January 1991; Law 9532, of 
10 December  1997, Law 9808, of 20 July 1999 and Decree -law 880, of 18 September 1969.  
 
                                                
2 Companies which submitted the project until 14 November 1997 and which were granted income tax 
exemption will be entitled to such benefit until the date specified in the act of concession.  G/SCM/N/284/B RA 
 
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  5. Form of subsidy  
 
Risk capital investments through primary subscription of debentures convertible into stock, at a 
ratio of 70% in convertible debentures and 30% in non -convertibl e debentures. In 2000, 
Provisional Measure 2058 extinguished the non -convertible debentures. The FINAM / FINOR / 
FUNRES tax incentives programs, regulated by Law 8167 of January 16 1991, Law 9532, 
10 December 1997, and Law No. 9808 of 20 July 1999, allowed  investors deduction of 18% until 
2003, 12% from 2004 to 2008 and 9% from 2009 to 2013 of its income tax to be invested in the 
Amazon region and the Northeast. As to Espírito Santo State, the applicable percentages are 25% 
by 2003, 17% from 2004 to 2008 an d 9% from 2009 to 2013. Tax incentives are channeled 
through the Amazon Investment Fund (FINAM), the Northeast Investment Fund (FINOR), or the 
Fund for the Fund for Rehabilitation of the State of Espírito Santo (FUNRES) for investment in 
projects by compan ies located in those regions which can generate jobs and incomes and promote 
development.  
 
6. To whom and how the subsidy is provided  
 
The beneficiaries are legal persons that implement a project considered to be relevant to the 
region. The project, in ord er to be implemented with FINAM, FINOR or FUNRES financial 
assistance, should involve activities that foster regional or local development.  
 
7. Total amount  
 
FINOR/FINAM/FUNRES Fiscal benefits (R$ million)  
 
Fiscal Year  FINAM  FINOR  FUNRES  
2013  0,405  89,004  0 
2014  0,432  94,736  0 
Source: Ministry of Finance.  
 
8. Duration  
 
Expiration is scheduled for December 2018 (Law 12,715/12).  
FUNRES was extinguished on the 15th of October, 2014, by Directive No 363 of 14 October 2014  
 
9. Trade effects  
 
N.A. 
 
2.3  Regional De velopment and Promotion of R&D and Technological Innovation 
Programme  
1. Title of programme  
 
Regional Development and Promotion of Research and Development and Technological Innovation 
Programme.  
 
2. Period covered by the notification  
 
From January 2013 to  December 2014.  
 
3. Policy objective and/or purpose  
 
Reduce economic and social imbalances between Brazilian regions by means of compensatory 
mechanisms for the development of the North, Northeast and Midwest. Regions and promote 
investment in research, de velopment and technological innovation in the North, Northeast and 
Midwest regions. For the purpose of the programme the Midwest region does not comprise Federal 
District.  
 G/SCM/N/284/B RA 
 
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  4. Legislation and authority  
 
Law 9.826/1999 amended by Law 12.218/2010.  
The Minist ry of Development, Industry and Foreign Trade and the Ministry of Finance are 
responsible for determining the requirements for the submission of project's application and 
approval. The Ministry of Development, Industry and Foreign Trade is responsible for the 
evaluation, approval and monitoring the programme. The Ministry of Science and Technology 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  subsidy  
 
Reduction of 32% of IPI levied on sales of products classified in codes 8702 a 8704 of the Table of 
Incidence of IPI. The reduction is applied on products produced in the domestic market or directly 
imported by the beneficiaries.  
The beneficiarie s shall invest, at least, 10% of the value corresponding to IPI reduction in research 
and development and technological innovation in the regions covered by the programme.  
 
6. To whom and how the subsidy is provided  
 
Beneficiaries are industrial enterprise s installed in the areas covered by SUDAM, SUDENE and in 
the Midwest region. Beneficiaries shall invest, at least, 10% of the value corresponding to IPI 
reduction in research and development and technological innovation in the regions covered by the 
progra mme. Project submitted by beneficiaries shall be approved by the Ministry of Development, 
Industry and Trade Foreign.  
 
7. Total amount (R$ million)  
 
Fiscal Year 2013: R$ 1,654.04  
Fiscal Year 2014: R$ 2,100.61  
 
8. Duration  
 
Expiration is scheduled for Dece mber 2015 (Law 12.218/2010).  
 
9. Trade effects  
 
N.A. G/SCM/N/284/B RA 
 
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3  NATURAL RUBBER INCEN TIVES  
Natural Rubber Price Equalization Scheme  
 
1. Title of programme  
 
Agricultural Products' Sale Option Private Premium (PEPRO).  
 
2. Period covered by the notification  
 
From Janua ry 2013 to December 2014  
 
3. Policy objective and/or purpose  
 
This program guarantees minimum price to the farmer/cooperative of natural rubber and other 
agricultural products, without requiring the purchase of the product by the government, by paying 
the difference between the minimum price and the market price.  
 
4. Legislation and authority  
 
The program was established by Decree -Law nº 79 (19 December 1966) and by Law 8.171 
(17 January 1991). The subsidy is authorized by the Ministry of Agriculture, Lives tock and Food 
Supply (MAPA) and the operator body is the National Food Supply Company (CONAB).  
 
5. Form of subsidy  
 
Direct payments to farmers/cooperatives that acquired the right to the subsidy through auctions. 
The auctions for natural rubber during the covered period were announced by "Avisos CONAB" 
Nrs. 191/14, 224/14, 236/14 and 247/14 (from October/2014 to December/2014).  
 
6. To whom and how the subsidy is provided  
 
CONAB announces the online auctions on its website ("Avisos CONAB"). Each "Aviso CONAB " 
informs the maximum quantity of product and the maximum value per quantity (called premium) 
available for the program and the date of the auction. The interested farmers/cooperatives apply 
for their desired quantities for the initial (maximum) premium. I f the total application exceeds the 
total quantity available, another auction is carried out thereafter, but offering a lower premium. 
The final premium is defined when the quantity applied is the same or less the maximum quantity 
announced.  
 
7. Total amou nt 
 
Calendar Year 2013: zero  
Calendar Year 2014: R$ 3.0 million  
 
8. Duration  
 
Not defined.  
 
9. Trade effects  
 
N.A. G/SCM/N/284/B RA 
 
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4  FISHERIES INCENTIVES  
4.1  Diesel Oil Price Equalization Scheme  
1. Title of programme  
 
Programme for Economic Subvention to the Price of Diesel O il Used by Fishing Vessels.  
 
2. Period covered by the notification  
 
From January 2013 to December 2014  
 
3. Policy objective and/or purpose  
 
The main objective of the program is to equalize the price of maritime diesel paid by fishing 
companies or fishermen  to its price in the international market.  
 
4. Legislation and authority  
 
The program was established by Law nº 9.445, of 14 March 1997 and, regulated by 
Decree  nº7.077, of 26 January 2010. In order to benefit from this equalization scheme the fishing 
comp anies or fishermen must comply with administrative procedures set by regulation by the 
Ministry of Fisheries and Aquaculture, which take into account vessel control and other 
administrative issues. The Ministry of Fisheries and Aquaculture is responsible f or the 
administration of the program.  
 
5. Form of subsidy  
 
This equalization encompasses the reimbursement of the difference between the price of maritime 
diesel in Brazil and international markets. However, this equalization payment is limited to 25% of 
the price of maritime diesel at the refinery level.  
 
6. To whom and how the subsidy is provided  
 
Recipients: Fishing vessel owners or charters (natural or legal persons); professional fishermen 
and fishing industries. In operational terms, the beneficiaries  pay the regular national price of 
maritime diesel (with the tax exemption of the ICMS). Subsequently, the Ministry of Fisheries and 
Aquaculture will reimburse to the beneficiary the difference between the price paid and the 
international market price, up to the limit of 25% of the maritime diesel price at the refinery level. 
At the end of each fiscal year, a public regulation issued by the Ministry of Fisheries and 
Aquaculture establishes the beneficiaries (company, cooperative, association or fishermen), by 
state level (regional) and the maximum amount of the reimbursement that will be available for the 
following year for each of those beneficiaries.  
 
7. Total amount  
 
Fiscal Year 2013: R$ 6.14 million  
Fiscal Year 2014: R$ 5.77 million  
 
8. Duration  
 
Not def ined. 
 G/SCM/N/284/B RA 
 
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  9. Trade effects  
 
N.A. 
 
4.2  Programme For Vessel Fleet Enlargement And Modernization  
1. Title of programme  
 
National Programme for Financing the Enlargement and Modernization of National Fishing Fleet – 
PROFROTA Pesqueira.  
 
2. Period covered by the noti fication  
 
From January 2013 to December 2014.  
 
3. Policy objective and/or purpose  
 
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 effort).  
 
Replacement of coastal and continental fleet fishing vessels with the objective to renew them, 
taking into consideration environmental criteria of sustainability (including management of fishing 
effort).  
 
Moderni zation, conversion, equipping and adaptation of fishing vessels, to enhance the 
management control on fishing effort, taking into consideration environmental criteria of 
sustainability.  
 
4. Legislation and authority  
 
The program was established by Law nº 1 0.948, of 23 May 2004 and regulated by 
Decree  no. 5.474, of 22 June 2005 and by Decree no. 6.746, of 22 January 2009.  
The Ministry of Fisheries and Aquaculture is responsible for the administration of the program.  
In order to benefit from this Programme th e beneficiaries must comply with administrative 
procedures set by regulation by the Ministry of Fisheries and Aquaculture.  
 
5. Form of subsidy  
 
A "non -default" bonus ("paid -on time" installment performance bonus) calculated on the interest 
due of the finan ced amount, taking into consideration environmental, social and targeted species 
stimulus issues.  
 
This performance bonus can be granted to the loan taker, in a non -cumulative way, to be 
calculated only on the interest amount of the loan. It is only grante d when the installment 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%.  
 
6. To whom and how the subsidy is pr ovided  
 
Recipients: Fishing vessel owners or charters (natural or legal persons); professional fishermen 
and fishing industries.  
 
Recipients: Industrial fishing companies (natural or legal persons and cooperatives dedicated to 
fishing activities).  
 
The bo nus is granted only when the installment 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 generates a discount in the interest payment to be m ade on that installment.  
 G/SCM/N/284/B RA 
 
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  7. Total amount  
 
Fiscal Year 2013:  R$ 0.00.  
Fiscal Year 2014:  R$ 0.00.  
 
The Program was non -operational during the period of notification. There is no scheduled date for 
reactivation of the program.  
 
8. Duration  
 
Not defined  
 
9. Trade effects  
 
N.A. 
 
__________