WT/TPR/M/358/Add.1  
2 November 2017  
(17-5965) Page: 1/269 
Trade Policy Review Body  
17 and  19 July 2017  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
BRAZIL 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Juan Carlos González (Colombia)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Brazil .1 
 
 
Organe d'examen des politiques commerciales  
17 et 19 juillet 2017  
EXAMEN DES POLITIQUE S COMMERCIALES  
BRÉSIL 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E.  M. Juan Carlos González (Colombie)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  le Brésil .1 
 
 
Órgano de Examen de las Políticas Comerciales  
17 y 19 de julio de 2017  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
BRASIL 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Juan Carlos González (Colombia)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales d e los Miembros de la OMC,  así como las respues tas facilitadas por  el 
Brasil .1 
  
                                                
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/358/Add.1  
 
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  CONTENTS  
ARGENTINA  ................................ ................................ ................................ ......................  3 
AUSTRALIA  ................................ ................................ ................................ ......................  5 
CANADA  ................................ ................................ ................................ .........................  19 
CHILE  ................................ ................................ ................................ .............................  43 
CHINA  ................................ ................................ ................................ ............................  56 
COLOMBIA  ................................ ................................ ................................ .....................  91 
DOMINICAN REPUBLIC  ................................ ................................ ................................  100  
ECUADOR  ................................ ................................ ................................ .....................  105  
EL SALVADOR  ................................ ................................ ................................ ...............  110  
EUROPEAN UNION  ................................ ................................ ................................ ....... 114  
HONG KONG, CHINA  ................................ ................................ ................................ ..... 135  
INDIA  ................................ ................................ ................................ ..........................  140  
INDONESIA  ................................ ................................ ................................ ..................  152  
JAPAN  ................................ ................................ ................................ ..........................  156  
REPUBLIC OF KOREA  ................................ ................................ ................................ .... 162  
MALAYSIA  ................................ ................................ ................................ ....................  164  
MEXICO  ................................ ................................ ................................ ........................  166  
NEW  ZEALAND  ................................ ................................ ................................ .............  182  
NORWAY  ................................ ................................ ................................ ......................  192  
PARAGUAY  ................................ ................................ ................................ ...................  194  
PERU  ................................ ................................ ................................ ............................  196  
RUSSIAN FEDERATION  ................................ ................................ ................................ . 197  
SINGAPORE  ................................ ................................ ................................ ..................  208  
SWITZERLAND  ................................ ................................ ................................ .............  211  
CHINESE TAIPEI  ................................ ................................ ................................ ..........  217  
THAILAND  ................................ ................................ ................................ ....................  221  
TURKEY  ................................ ................................ ................................ ........................  226  
UKRAINE  ................................ ................................ ................................ ......................  230  
UNITED STATES  ................................ ................................ ................................ ...........  247  
  WT/TPR/M/358/Add.1  
 
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  ARGENTINA  
Report WT/TPR/S/358  
1. En el párrafo 2.3 se indica que durante el período objeto de examen se produjo una 
mejora en el acceso de la IED a determinados servicios de salud. ¿Podría comentar 
Brasil cuáles fueron las políticas implementadas que llevaron a dicha mejora en el 
acces o de la IED?  
In 2015, Law Nº 13.097 (Chapter XVII) altered Law Nº 8,080/1990, allowing direct or indirect 
participation of foreign capital in health care in Brazil, in the following cases: I) donations of 
international bodies linked to the United Nations,  of technical cooperation and funding 
organizations; II) legal entities intended to open, operate and exploit: general hospitals, including 
philanthropic, specialized hospitals, polyclinics, general clinics and specialized clinics; and actions 
and research es related to family planning; III) nonprofit health services maintained by companies, 
for providing health care services to their employees and dependents, at no cost to the social 
security; and IV) other cases that may be regulated under specific legisla tion. 
The new legislation also added Article 53 -A to Law Nº 8,080/1990 allowing foreign investments in 
activities that support health care, such as laboratories of human genetics, production and supply 
of pharmaceutical and other products for the health se ctor, and laboratories for clinic analysis and 
imaging diagnosis.  
Therefore, all health care services are open to foreign investment, except for specific cases in 
which all trading is prohibited, for both national and foreign investors, such as the prohibi tion of 
commercial activity of blood and blood products, organs, tissues and cells and the prohibition of 
the export of blood and blood products.  
2. El párrafo 2.3 señala que Brasil ha utilizado un nuevo modelo de acuerdo sobre 
inversiones, basado en las d irectrices de la UNCTAD y la OCDE. ¿Podría señalar cuáles 
son los principales elementos distintivos de dichos acuerdos?  
The CFIA is not like traditional BITs, as it seeks to meet investor needs in a concrete, pragmatic 
and proactive manner, while at the s ame time, respecting the development strategy and the 
regulatory rights of host countries. While BITs focus on promotion and protection, the CFIA focuses 
on facilitation, institutional governance and prevention of disputes.  
The CFIA is based on three pill ars: a) risk mitigation/ framework for the treatment of investors and 
their investments; b) institutional governance; and c) agendas for cooperation and investment 
facilitation.  
First, the CFIA provides a set of measures that reduce the investor's exposure  to risk/ establish a 
framework for the treatment of investors and their investments. It establishes guarantees of 
non-discrimination (national treatment and most favored nation treatment), transparency clauses 
and specific conditions for cases of direct e xpropriation, compensation in case of conflicts and 
guarantees for international transfers.  
Second, the CFIA proposes the establishment of focal points or "ombudsmen" in each Party and 
the creation of a Joint Committee. These instances can be considered th e institutional core of the 
Agreement, as they contribute to the fulfillment of the commitments made and to strengthen the 
dialogue between the Parties with regard to investments and appropriate assistance to investors.  
Third, the CFIA provides for the es tablishment of investment facilitation and cooperation agendas 
in areas that may improve the investment environment. Such agendas may vary depending on the 
possibilities and challenges of the bilateral investment relationship.  
3. En el párrafo 2.10 se menc iona que existe la posibilidad de que el sector privado 
participe en la formulación de la política comercial por medio del Consejo Consultivo del 
Sector Privado de la Cámara de Comercio Exterior (CAMEX). ¿Podría Brasil explicar de 
qué forma y qué tipo de p articipación tiene el sector privado en la formulación de la 
política comercial?  WT/TPR/M/358/Add.1  
 
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  According to the rules of procedure of CAMEX, the private sector may participate in trade policy 
formulation through the CAMEX Private Sector Advisory Council (CONEX). CONEX is composed of 
the Minister of State for Foreign Affairs (MRE), the Minister of State for Industry, Foreign Trade 
and Services (MDIC) and up to twenty representatives of the private sector, appointed by means 
of a CAMEX resolution, with personal and non -transferable terms of two years. CONEX is 
responsible for advising CAMEX, through the preparation and submission of studies and sectoral 
proposals for the improvement of foreign trade policy.  
4. En el párrafo 2.11 se señala que la Confederación Nacional de I ndustria (CNI) puso en 
marcha un programa de prioridades para promover la integración de las empresas 
brasileñas en el mercado mundial. ¿Podría comentar cuáles son las prioridades 
identificadas para promover la integración de las empresas en el mercado mun dial?  
The CNI releases annually its "International Agenda of Industry". The latest edition (April 2017) 
lists 86 priority actions, of which 55 aim at improving Brazil´s national trade policy and 31 are 
related to internationalization support. Some of the highlights among these priorities are the 
conclusion of the ongoing negotiations with Mexico and the European Union; the negotiation of 
new double taxation agreements; improved trade facilitation measures; increasing attention to 
trade remedies; and better  logistics infrastructure. The document can be found online at the 
following address: http://www.portaldaindustria.com.br/publicacoes/2017/4/agenda -internacional -
da-industria/.  
5. El párrafo 2.32 indica que Brasil continúa siendo beneficiario de los esquem as del 
Sistema Generalizado de Preferencias (SGP) de Australia, Belarús, Estados Unidos, 
Japón, Kazajstán, Noruega, Nueva Zelandia, Rusia y Suiza. ¿En qué medida Brasil evalúa 
que se ha beneficiado de dichos esquemas preferenciales?  
As a developing countr y with a diversified but uneven economy, Brazil greatly values the benefits 
of the Generalized System of Preferences schemes enforced by Australia, Belarus, Japan, 
Kazakhstan, Norway, New Zealand, Russia, the United States of America and Switzerland. The G SP 
preferences constitute an useful tool to encourage Brazilian companies, especially micro, small and 
medium sized enterprises, to overcome the challenges of accessing foreign markets, particularly in 
distant countries. Considering the varying levels of u se of GSP preferences, the Brazilian 
Government is currently revising each of the GSP schemes above, in order to better inform 
Brazilian exporters – as well as importers of Brazilian goods in partner countries – about the 
opportunities in place.  
  WT/TPR/M/358/Add.1  
 
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  AUSTRALIA  
Report by the Secretariat (WT/TPR/S/358)  
1 Economic Environment  
1.2 Recent economic developments  
1.2.4 Labour market policies  
Page 17, paragraphs 1.16 and 1.17  
The Report notes several specific labour market reforms that have been implemented or  are under 
consideration which, if implemented, would be beneficial for the Brazilian economy 's 
competitiveness and, over time, reduce costs, complexities and labour -related litigation. They 
could also improve conditions for workers by bringing more into t he formal workforce.  
In Australia 's view, continuing the labour market reform process to reduce rigidities or outdated 
practices will be especially important to specific sectors of the traded economy, such as mining 
where modern, safe and productive operations depend on more flexible and efficient labour 
practices (some of which are inconsistent with Brazil 's current laws).  
Question 1  
In undertaking labour market reforms, how will Brazil ensure sufficient flexibility to enable better 
workforce plannin g in key sectors of the economy, such as mining?  
The objective of the proposed labor market reforms is to have a positive impact on all sectors of 
the Brazilian economy.  
Report by the Secretariat (WT/TPR/S/358)  
2 Trade and Investment Regimes  
2.4 Trade Laws and Regulations  
2.4.1 Regulatory framework and reform  
Page 28, paragraphs 2.14 and 2.15  
In Australia 's experience, the regulatory burden in Brazil continues to impede activities by 
businesses which conduct trade with and invest in Brazil. The 'ease of  doing business ' index in 
Brazil remains very low – due to the difficult, overly -complex and time -consuming taxation and 
regulatory systems. The questions below relate to specific concerns raised by Australian business 
interests in Brazil and are examples of the systemic problems encountered in the Brazilian 
economy.  
Question 2  
How will Brazil reform its taxation and regulatory systems to ease the burden on businesses?  
Brazil is carrying out studies for the simplification of  its tax and regulatory systems . As a first 
result, a bill has been drafted to create a new social contribution tax aimed at replace two federal 
taxes (PIS and COFINS) that are, at federal level, the most challenging regarding compliance and 
enforcement. This new tax will be in full com pliance with OECD guidelines. The bill has not yet 
been introduced for consideration at the Brazilian Congress.  
Question 3  
When will Brazil adopt the practice of permitting digital signatures and stamps on import/export 
documentation, thereby improving eff iciency?  
All customs declarations, as well as any supporting documents thereof, can already be submitted 
electronically, as provided for in the article 20 of the Customs Code (Decree No. 6759/2009).  
The Integrated System of Statistics on Trade (SICOMEX), which was established by Decree 
660/1992, and its Single Window of Foreign Trade ( http://portal.siscomex.gov.br/ ), were set as 
the tool for attaching documents electronically. The tool was launched in 2014 and  has been fully 
operational since 2016. With this tool, all documents related to foreign trade operations can be 
submitted electronically.  WT/TPR/M/358/Add.1  
 
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  Question 4  
What measures does Brazil intend to implement to improve the tax refund and tax transfer 
systems when prod ucts are transferred across State borders in Brazil, with a view to eventual 
re-export (e.g. to other countries in Latin America)?  
The export and re -export of goods are exempted of taxes in general. According to Article 
155.2.X.a of the Brazilian Federal Constitution, exports and re -exports are also exempted from the 
ICMS, the main state level tax, which is normally levied on transferences across state borders in 
Brazil.  
Report by the Secretariat (WT/TPR/S/358)  
3 Trade Policies And Practices By Measure  
3.2 Measures Affecting Production and Trade  
Australia has concerns about Brazil 's reliance on local content schemes and the extent to which 
these schemes are consistent with its WTO obligations.  The Secretariat 's report notes that a 
number of schemes have b een extended or made permanent, for example:  
Page 48, paragraph 3.30 – previous trade policy review descriptions of the import tariff 
concessions  for capital goods and IT and telecommunications equipment referred links to the level 
of domestic equipment content;  
Page 124, paragraph 4.93 - lists a range of industrial support programs with local content 
requirements.  
Page 128, paragraph 4.101 – auto industry support programs linked to domestic content.  
Question 5  
We recognise that Brazil has been asked about some of these schemes in the past. Nonetheless, 
could Brazil give a description of key programs? Further, could Brazil outline how each is 
consistent with Brazil 's WTO obligations?  
With reference to paragraph 3.30 of the Secretariat Report, the Ex -tarifário mechanism allows for 
an amendment of the tariff schedule that applies to all imports. It is a unilateral, 
non-discriminatory and horizon tal duty liberalization for industrial goods. It favours foreign 
companies from any country producing advanced equipment, machinery and technology.  
On paragraphs 4.93 and 4.101, most benefits provided under "Plano Brasil Maior" have expired or 
are schedul ed to expire by 31st December 2017, including the INOVAR -Auto programme. 
Moreover, Brazil considers that support under these programmes is not contingent on the use of 
domestic over imported goods, but rather on production steps requirements consistent wit h WTO 
law. 
Report by the Secretariat (WT/TPR/S/358)  
3 Trade Policies And Practices By Measure3.2 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
Page 73, paragraph 3.134  
The report states that Brazil's approach to granting equivalence remains based on the acceptance 
of test results, without explicit recognition of foreign technical regulations. During the review 
period, Brazil notified to the WTO four plurilateral agreements on TBT matters concluded with 
other Membe rs, including three new mutual recognition agreements (MRAs) on accreditation. 
Through INMETRO, Brazil is a party to some 120 TBT -related technical cooperation instruments, of 
which  89 (including 19 in the field of accreditation) are currently in force. IN METRO also represents 
Brazil at the Inter -American Accreditation Cooperation, the International Accreditation Forum, the  
International Laboratory Accreditation Cooperation, the International Bureau of Weights and  
Measures, the International Organization of  Legal Metrology, and in relevant initiatives within  
MERCOSUR, LAIA, and the Organization of American States.  WT/TPR/M/358/Add.1  
 
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  Question 6  
Does Brazil require a mutual recognition agreement (MRA) to accept conformity assessment 
results from foreign conformity assessment bod ies?  
INMETRO 's Ordinance 118/2015, "General requirements for product certification: activities 
performed by product certification bodies (OCP) accredited by IAF MLA member", is available at 
http://www.inmetro.gov.br/legislacao/rtac/pdf/RTAC002226.pdf, is the reference for this subject.  
Conformity assessment activities, carried out by an entity accredited by a member of the IAF 
(International Accreditation Forum) MLA (Multilateral Recognition Arrangement), may be accepted, 
provided that all the conditions b elow are observed:  
(a)  the body shall have an MoU with a Brazilian product certification body (OCP) accredited by 
INMETRO / CGCRE;  
(b)  the body shall be accredited according to the same international rules adopted by INMETRO, 
i.e., accredited by a IAF ML A signatory member, for the same scope or equivalent;  
(c)  the activities carried out by the OCP must be equivalent to those regulated by INMETRO; 
and  
(d)  there is no restriction on the part of the regulatory authority of the object submitted for 
certifi cation.  
Each MoU will be subject to verification in periodic evaluations of accreditation, held by 
CGCRE/INMETRO, and must include, at least, the conditions below:  
(a)  the parties shall agree to keep the signatories informed about any change in their 
accreditation situation in the country of origin;  
(b)  the parties must agree on what documents related to the certification process, issued in any 
language other than English or Spanish, shall be accompanied by a sworn translation into 
the Portuguese language ; 
(c)  the parties shall explicitly indicate the activities that are covered by the MoU, as for 
example, audit, testing plan, testing reports, audit report evaluation.  
The entity legally established in Brazil and accredited by CGCRE/INMETRO will be responsible for 
the evaluation and the issuing of the certificate of conformity with Brazilian regulations, taking all 
responsibility for activities carried out abroad and other responsibilities related from such issuing, 
as if the activities were conducte d by entity itself.  
Foreign entities accredited by CGCRE/INMETRO for a particular scope may lead certification 
processes under the scope of that specific conformity assessment requirements (RAC) for the 
object, as long as they are legally established in Br azil. In this case, the entire certification process 
documentation should be available in Brazil and in Portuguese language, observed the exceptions 
provided for in 6.2.1.2 and the note of the subitem 6.2.3.2.  
The term "foreign entity legally established i n Brazil, accredited by CGCRE/INMETRO for a 
particular scope", is to be understood as one that has people with technical expertise, assigned in 
Brazil, has the physical structure in national territory, demonstrates ease of access to the 
certification proce ss and meets the legal requirements of documentation required by Brazil for the 
establishment of a company, such as Cadastro Nacional de Pessoa Jurídica (CNPJ) and social 
contract.  
Question 7  
Can Brazil negotiate MRAs with economies that are not part of MERCOSUR? If not, what steps is 
Brazil taking to ensure it can accept the conformity assessment results of other Members with 
equivalent procedures?  
Brazil can negotiate MRAs with any economy b ut even within MERCOSUR the following applies:  WT/TPR/M/358/Add.1  
 
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  (1) As far as accreditation is concerned, Brazil 's INMETRO is member of the Mutual Lateral 
Agreements established by the two international accreditation forums: IAF (International 
Accreditation Forum) and ILAC (In ternational Laboratory Accreditation Cooperation), which 
means that both accreditations are recognized;  
(2) The acceptance of results of the mandatory conformity assessment procedures also requires 
that the certification agencies in the two countries involved sign a mutual recognition 
agreement between them. They have to be accredited by their respective accreditation 
bodies, signatories of the IAF MRA, and use laboratories accredited by entities which are 
signatories of the ILAC MRA. Under the private MRA sign ed by both certification enetities, 
the entity established in Brazil can then analyze the conformity assessment procedures and 
their results as applied to a particular product by the foreign certification agency and issue a 
new certificate, which, in its t urn, will be accepted.  
Report by the Secretariat (WT/TPR/S/358)  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1 Overview  
Page 85, Paragraph 3.187  
The report states that the body of legislation that has not been notified to the TRIPS Council 
includes the laws on: integrated circuit topographies; collective management of copyright 
(amendment); access to and benefit sharing of genetic resources and associated traditional 
knowled ge; and principles, guarantees, rights and obligations for the use of Internet in Brazil.  
Question 8  
Is the above mentioned legislation available online? Are translations available?  
A new notification updating the previous one is under consideration by th e Brazilian government.  
Page 85, Paragraph 3.188  
The report states that process for domestic ratification of the Madrid Protocol is under way.  
Question 9  
Can Brazil provide further information on expected timeframes for domestic ratification of the 
Madrid Protocol?  
The Madrid Agreement on Trademarks, managed by WIPO, was sent to the Brazilian Congress for 
ratification on June 21st, 2017.  
Report by the Secretariat (WT/TPR/S/358)  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.2 Industrial Property  
Page 88, Paragraph 3.193  
The report states that the average processing time for patents is estimated at 11 years.  
Question 10  
Can Brazil provide further information on what is being done to reduce this average processing 
time?  
Brazil is working to improve this situation. Since 2016, 150 new patent examiners were hired by 
INPI, in order to reduce the processing time for patents. Productivity is also increasing due to the 
simplification of technical procedures for exams and the implementation of home office, 
conditioned to a higher production from the examiners. In the patent area, decisions increased by WT/TPR/M/358/Add.1  
 
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  88% last May compared to Ap ril figures. In the accumulated first five months of this year, there 
were 22,134 decisions, a number higher than the total recorded for the entire years 2014 
(22,336 decisions) and 2015 (15,842 decisions). In comparison , between May 2017 and with 
May 2016 the increase was 138%.  
Report by the Secretariat (WT/TPR/S/358)  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.3 Copyright  
Page 89, Paragraph 3.200  
The report states that Bra zil adopted a civil rights framework for the Internet, which foresees the 
elaboration of specific legislation regulating the liability for damages resulting from content 
managed by third parties.  
Question 11  
Can Brazil provide further information on any elements of the foreseen legislation?  
The article 19 of the Civil Rights Framework for the Internet refers to damages resulting from 
content managed by third parties.  
The general rule inscribed in the article  ensures the freedom of expression and prevents 
censorship by exempting the Internet Service Provider from civil responsibilities. Such 
responsibility, however, can be invoked when the Internet Provider fails to take steps to make 
unavailable content that has been declared unlawful, after a specific court order. Paragraph 2 
determines the implementation of the provisions above with a specific legal provision regarding 
copyright infringement, which must respect the freedom of speech and the art. 5° of the Br azilian 
Federal Constitution.  
The regulation of the Internet civil rights framework is still under discussion within the government 
and with civil society. A number of public hearings were held to debate with and receive 
contributions from the civil societ y regarding the new legal provisions, but at this stage there is no 
specific copyright proposal under the framework. Until specific provisions are developed and 
enacted into law, the Copyright law remains in force for digital content, although it does not 
address directly the issue of ISPs ' liability.  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.3 Border Measures  
Page 96, Paragraph 4.19  
The report states that 'Brazil's food aid abroad incre ased considerably from 47,284 tonnes in the 
period 2008 -10 to 230,816 tonnes in the period 2012 -14, of which 83.3% was rice ' then reducing 
drastically in 2016 with rice comprising the majority of aid given.  
Question 12  
Recalling the Ministerial Decision on  Export Competition made at Nairobi which states that 
international food aid is 'not linked to the market development objectives of donor Members ', can 
Brazil explain the broad fluctuations in food aid between 2008 -12 and the reasons for rice being 
the mai n commodity provided as food aid?  
Currently, the Brazilian Government provides food aid through the World Food Program (WFP) of 
the United Nations, focusing on Emergency Operations and Protracted Relief and Recovery 
Operations, which target victims of socio-environmental disasters and vulnerable groups to 
guarantee their food and nutritional security. Rice is the main commodity provided because it is a 
staple food in all the recipient countries.  WT/TPR/M/358/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.4 Domestic support  
4.1.4.1 Agricultural/rural credit  
Page 96, Paragraph 4.21   
The report states that Domestic support to agricultural producers remains at a low level compared 
with OECD countries.19 According to the OECD, Brazil's total support estimate (TSE) to agriculture 
averaged 0.35% of GDP in 2012 -15 (0.55% in 2008 -10), well below the OECD average of 0.7% 
(Table 4.2).Support to farmers as measured by the producer support equivalent (PSE) was 3.2 % 
of gross farm receipts in the period, below the OECD average of 17.6%. Support peaked in 2014 
and fell in  2015 as both market price support (MPS) and payments based on input use (credit and 
insurance  subsidies) declined. The MPS reduction was due to the minimum guaranteed prices 
increasing at a  slower pace than inflation, and the depreciation  of the R$ relative to the US$. 
According to the  OECD, while weak infrastructure is still a significant bottleneck for agricultural 
development,  financing of general services (GSSE) to agriculture constituted less than 20% of 
total support to  the agricultural sector in 2013 -15 and over time this share t ended to decline 
considerably. However, 93% of PSE is given through support based on commodity output or on 
input use,  particularly through credit subsidies, debt rescheduling, and rural insurance; MPS was 
relatively  low in 2015 (Table 4.3, Section 4.2.4.1.2). According to the OECD, an important part of 
support to  producers continues to be provided through measures that d istort farm prices and 
current costs  (e.g. MPS, concessional credit, and crop insurance subsidies) although the aggregate 
level of that  type of support is moderate and varies across commodities.  
Question 13  
Is Brazil proposing to reduce some of the above -listed support measures and undertake the 
reforms necessary to further liberalise its agriculture sector and allow market pressures to more 
fully determine the nature of its agricultural trade?  
As stated by the OECD, the domestic support to agricultural pr oducers remains at a low level 
compared with OECD countries, and the level of support of the last years Brazil has been reduced 
even more because of budget restrictions. Currently, Brazil does not intent to reform its 
agricultural policy.  
Page 102, Paragra ph 4.33  
The report states that according to the OECD, whereas the agricultural credit system is intended to 
address failures in financial markets, it also creates risks (default) for government and producers,  
particularly since the macroeconomic situation  has deteriorated (Section 1.2.1).The higher  
availability of funds for loans is potentially creating excess supply. Most of this credit is  
concentrated on subsidizing short -term borrowing such as working capital and commercialization  
loans that further distort markets. A reform of the concessional credit system could consider a  
gradual downsizing of concessional loans for working capital to commercial producers, simplifying  
regulations and procedures, and re -focusing to support on -farm investments that e xplicitly  
incorporate technological innovations and advanced farm management and environmental  
practices.  
Question 14  
The OECD highlights the risks associated with the agricultural credit system, including that it is 
potentially creating excess supply. Is Brazil considering reforming the concessional credit system 
to reduce these risks?  
Brazil considers "the higher availability of funds for loans" alone is not capable to create excess 
supply, because funds are not allocated for any specific product and othe r factors must be present 
to induce this outcome. In the early 1990s, when agricultural credit was the main policy 
instrument for the sector, problems surfaced during the hyperinflation period (before Plano Real, in 
1995). Nonetheless, even in face of the economic crisis of last couple of years there is no risk of a 
significant default: the agricultural sector remains robust and the default rates are low. In the 
short term, there is no plan to change the current credit policy.  WT/TPR/M/358/Add.1  
 
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  Report by the Secretariat (WT/ TPR/S/358)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.4 Domestic support  
4.1.4.1 Agriculture/rural credit  
4.1.4.1.1 Minimum Price Guarantee  
Page 103, Paragraph 4.34 and Table 4.6  
The report states that Brazil implements several  price support mechanisms listing the Agricultural 
Products' Sale Option Private Premium (PEPRO) and Premium for Product Outflow (PEP).  
Question 15  
What change in local conditions triggered Brazil 's announcement of the re -commencement of PEP 
and PEPRO support for wheat and corn after an apparent pause in its use?  
The domestic price for both products has fallen below the minimum price established by the 
government. Nonetheless, the level of support for both products will be surely well below Brazil 's 
AMS. 
Question 16  
What steps has Brazil put in place to ensure exports of wheat do not receive any form of export 
subsidy from either the PEP/PEPRO agricultural subsidy programmes?  
PEPRO or PEP payments are made upon receipt of internal commercialization or export 
registration/declaration. Both programs are not contingent  on exports. As the support is based on 
the difference of the minimum price and the domestic price (and not the international market 
price), it is clear the programs are not export programs.   
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.1 Main features  
Page 130 -131, paragraph 4.110 -4.112  
The report states that the services sector continues to be the  main contributor to Brazil's gross 
value added and job creation, but suffers from structural weaknesses and subpar international 
performance. Also low services performance acts as a constraint to the dynamism of the whole 
Brazilian economy.  
Question 17  
Does Brazil have plans to undertake a programme of structural reforms in its services sector and 
further open the market to foreign competition to boost its domestic economy and export 
competitiveness?  
Brazil is implementing several structural reforms that  will have significant across -the-board impact 
in the economy. The Brazilian Government is establishing conditions for sustainable economic 
growth and to attract foreign investment. Such conditions are based on regulatory transparency, 
boosting productivit y gains in the production of goods and the provision of services, and the 
simplification of bureaucratic procedures.   
The proposed reforms cover a wide range of economic areas, including taxation, which will have a 
huge impact on the productivity of th e services sector. In July 2017 , Congress has passed a bill 
reforming the Labour Code and making labour legislation more flexible.  
Measures currently being considered for enactment include reducing the number of procedures 
necessary to register property; ii)  centralizing the process for obtaining a construction license in a 
"one-stop shop," to save time and reduce the number of procedures; and iii) making judicial and 
extrajudicial restructuring processes of companies more flexible to increase their efficienc y. WT/TPR/M/358/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.3 Financial services  
4.4.3.1 Banking and finance  
Page 133 -134, paragraph 4.119  
The report states that although the Central Bank has enjoyed administrative autonomy sin ce the 
mid-1990s, it is one of the few remaining major central banks in the world that is not independent 
under the law. The report also states that legislation allowing for more autonomy would possibly 
be considered from when the economy stabilizes in 201 8 or 2019.  
Question 18  
Could Brazil confirm whether plans are being progressed to give the Central Bank more autonomy 
and, if so, what changes are being considered and what impact will they have on the financial 
sector?  
The Central Bank of Brazil has already a "de facto" technical and operational autonomy, which 
includes the use of monetary policy and other instruments as it sees fit to meet the inflation 
target. The Central Bank of Brazil has full autonomy to meet its mission in ensuring the stability  of 
the currency 's purchasing power and a solid and efficient financial system. In this sense, the 
Central Bank of Brazil has already a full set of tools to monitor, supervise and regulate the 
financial sector, in line with international best practices. A formal autonomy defined by law is 
desirable and there are some studies about it, but there is no deadline for any implementation.  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.3 Financial services  
4.4.3.1 Banking and  finance  
Page 134, paragraph 4.121  
The report details a number of restrictions on foreign banks: direct branching by foreign banks is 
not allowed – they are only allowed to establish subsidiaries; those directly responsible for the 
administration of the fi nancial institutions must be Brazilian residents; there are numerous 
authorisations required for foreign institutions; and cross -border supply of banking services is not 
permitted.  
Question 19  
Does Brazil have plans to ease the restrictions on foreign bank s to increase competition and 
reform the regulatory framework of the Brazilian banking sector?  
The BCB considers that the evaluation of any plans to reduce restrictions on foreign banks that 
derive from constitutional provisions can only be addressed by h igher levels of the Brazilian 
Government.  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.4 Telecommunications  
Page 140, paragraph 4.143  
The report states that the telecommunications market remains fully open to competi tion and that 
the State maintains a strategic stake in domestic company, Oi, through BNDES and the pension of 
state-owned enterprises.  
Question 20  
How does Brazil ensure that state ownership of telecommunications providers does not influence 
regulatory activity in this sector?  WT/TPR/M/358/Add.1  
 
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  In the specific case mentioned in the report, the Brazilian State does not have direct control over 
the company, but holds a 5.73% stake of its voting capital. The Brazilian regulatory legislation 
establishes a series of measures a nd a system of checks and balances to prevent any possible 
governmental influence on the regulatory activity. Examples of such mechanisms include 
administrative independence, lack of hierarchical subordination, financial autonomy, and collective 
compositio n of its Board of Directors. Also, the law sets forth that state -owned companies shall 
abide by the same rules and obligations applicable to private companies.  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.4 Telecommu nications  
Page 141, paragraph 4.145  
The report states that ANATEL is responsible for policy implementation, licence regulation, 
overseeing incumbents ' operations, managing the electromagnetic spectrum, certifying 
telecommunications equipment, and protectin g consumers ' right.  
Question 21  
Does ANATEL regulate access to wholesale services other than interconnection or is this done by 
other Government agencies? What processes are in place for determining which wholesale 
telecommunications services should be reg ulated, and how are these regulated? ) 
ANATEL is responsible for regulating the telecommunication market - wholesale and retail. 
Regulations are usually horizontal, with the same rules applying to all agents in the market. If 
market failures are identified, the enactment of "asymmetric" regulat ions is possible for related 
wholesale markets, where market players are deemed relevant, because they have significant 
market power. In this case, they may be required to abide by specific regulation.  
Thus, the interconnection market is not necessarily t he only one to be asymmetrically regulated: if 
there is no market failure, it can even be unregulated. The list of these markets is periodically 
updated based on the most recent sectoral status, ac cording to ANATEL Resolution Nº  600/2012. 
In the same resol ution, the current markets subject to asymmetric regulation are listed, as well as 
the asymmetric regulatory measures applicable on a case -by-case basis. The resolution can be 
found at: http://www.anatel.gov.br/legislacao/resolucoes/34 -2012/425 -resolucao -600. 
Question 22  
What regulatory requirements are there in Brazil to ensure telecommunication major suppliers 
provide access to essential facilities? How are the terms and conditions of this access determined?  
The sharing of infrastructure is established by article 146 of  the General Law of 
Telecommunications (LGT -Law 9.472/1997). ANATEL has a series of rules to regulate the terms of 
this sharing, such as Resolution 410 (General Interconnection Regulation), Resolution 590 
(Regulation and Industrial Exploitation of Dedicate d Lines), Resolution 438 (Remuneration 
Regulation for the Use of Mobile Networks), Resolution 588 (Regulation of Remuneration for the 
Use of Fixed Networks). In addition, the General Plan for Competition Goals (PGMC, Resolution 
600/2012) disciplines wholes ale markets subject to asymmetric regulation, providers with 
Significant Market Power and their remedies. The PGMC created the SNOA – System for Trading 
Wholesale Deals, which serves as a trading platform for regulated wholesale inputs. LGT and the 
resolut ions mentioned can be found at :  
http://www.planalto.gov .br/ccivil_03/leis/L9472.htm ;  
http://www.anatel.gov.br/legislacao/resolucoes/20 -2005/167 -resolucao -410; 
http://www.anatel.gov.br/legislacao/resolucoes/34 -2012/332 -resolucao -590;  
http://www.anatel.gov.br/legislacao/resolucoes/21 -2006/92 -resolucao -438; 
http://www.anatel.gov.br/legislacao/resolucoes/2012/374 -resolucao -588. WT/TPR/M/358/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.4 Telecommunications  
Page 142, paragraph 4.149  
The report states that the 2010 National Broadband Plan  (PNBL) operated from 12 July 2011 to 31 
December 2016  and was aimed at boosting access to broadband services across the country and 
bridging the digital divide.  
Question 23  
Why did PNBL end? Did it fulfil its aim of boosting access to broadband services and bridging the 
digital divide?  
The PNBL was not terminated; rather, a specific part of the programme, the REPNBL -Redes, was 
concluded in  December 2016. The PNBL is still in force. The significant expansion of 4G coverage 
from 469 cities in 2015 to 2,654 cities in June 2017, reaching 173,6 million people (84,2% of the 
population in the country), is one of its main results.  
Question 24  
What is Brazil 's position on universal access to high speed broadband?  
According to Brazilian law, only landline telephone is considered universal service, and the 
operators (concessionaires) must fulfill this objective. However, this legal framework dates from  
1997 and, considering the changes in the telecommunication sector since the 1990s and the 
growing demand for data connections, in May 2016 the Government launched the "Smart Brazil" 
Program (Brasil Inteligente, Presidential Decree 8776/2016), which provid es guidelines for the 
universal access to the internet in the country. ANATEL is working according to such guidelines to 
reflect the centrality of broadband to public policies.  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Servic es 
4.4.4 Telecommunications  
Page 141 -142, paragraph 4.147  
The report states the Federal Government was considering reforms to the telecommunications 
legislation, which was designed for the privatization period and is thought to have held the 
industry back from further expansion.  
Question 25  
Could Brazil provide an update on the possibility of reforms to the telecommunications legislation, 
including what changes are being considered and their expected impact on the telecommunications 
sector?  
The General Law of Telecommunications (LGT/1997) is currently under review at the National 
Congress. The main changes which are being discussed relate to amendments in the current 
landline telephone services concessions and to authorizations for the use of  radio frequencies and 
the exploitation of satellites.  
Regarding landline telephone services concessions, the objective of the proposal under discussion 
is to liberalize the market, directing resources to projects aimed at boosting access to broadband, 
in line with the guidelines of focusing public policies on broadband.  
In the case of radio frequency use and satellite exploitation authorizations, the core discussion 
concerns the renewal procedure, so as to allow more than one renewal without the need for  a new 
tender, provided that the public interest is served. The complete proposal of law (PLC 79/2016) 
can be found at https://www25.senado.leg.br/web/atividade/materias/ -/materia/127688 . WT/TPR/M/358/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.4 Telecommunications  
Page 142, paragraph 4.148  
The report states ANATEL is empowered to apply a cap to interconnection prices charged by all 
operators deemed to have significant market power, however no such cap has been set so far.  
Quest ion 26  
Could Brazil explain the reason a cap has not been set by ANATEL? Is it because ANATEL does not 
believe any operator has 'significant market power '? Alternatively, does ANATEL believe that even 
where an operator has significant market power, that it  has not resulted in abuse of power or anti -
competitive outcomes?  
The implementation of such cap was introduced by Resolutions 576/2011 and 588/2012. In 2014, 
those tariffs were made cost -oriented by Resolution 639/2014, which established a glide path from  
a top -down approach to a bottom -up one, through the Long -Run Incremental Cost (LRIC). In this 
context, f or the period 2016 -2019, Act Nº  6.210/2014 established cap values for the tariffs of 
fixed net work interconnection and Act Nº  6.211/2014 established re ference values for mobile 
interconnection. Such Acts can be found at:  
http://www.anatel.gov.br/legislacao/resolucoes/2011/69 -resolucao -576;  
http://www.anatel.gov.br/legislacao /resolucoes/34 -2012/374 -resolucao -588;  
http://www.anatel.gov.br/legislacao/resolucoes/2014/781 -resolucao -639; 
http://www.anatel.gov.br/Portal/verificaDocumentos/documento.asp?numeroPublicacao=313867&
assuntoPublicacao= null&caminhoRel=null&filtro=1&documentoPath=313867.pdf ; 
http://www.anatel.gov.br/Portal/verificaDocumentos/documento.asp?numeroPublicacao=313867&
assuntoPublicacao=null&caminhoRel=nul l&filtro=1&documentoPath=313867.pdf . 
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.4 Telecommunications  
Page 143, paragraph 4.152 -4.153  
The report states that during the review period, local content requirements were  applied under the 
2012 National Broadband Programme Special Taxation Regime (REPNBL) and to the auctioning of 
radio spectrum frequencies in 2014 and, to a seemingly lesser extent, in 2015. The report further 
states that the authorities indicated that loca l suppliers had difficulty in meeting these 
requirements for the radio spectrum frequencies and it is unlikely that they would be used in the 
future. In addition, the REPNBL resulted in total foregone tax revenue estimated at R$750 million 
(about US$232 mi llion).  
Question 27  
Could Brazil explain how the above measures were consistent with the WTO TRIMS Agreement? 
Given the costs of the programmes and the difficulties of local suppliers in meeting the 
requirements, will Brazil reconsider the use of such meas ures in the future? Has Brazil assessed 
the impact on the competitiveness and efficiency on the telecommunications sector from these 
preferential measures?  
The requirements mentioned in the Secretariat Report are not contingent upon the use of domestic 
over imported goods, and as such they do not involve any local content requirement. The 
requirement to produce locally aims at ensuring the local development of technological capabilities 
required to develop such a strategic sector.  
Brazil legislation does  not favor specific industries nor creates investment barriers or market 
access limitations, but foster local scientific and technological development. The National 
Broadband Program and the auctions of radio spectrum did not discriminate any investment or  WT/TPR/M/358/Add.1  
 
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  bidder on basis of the origin of capital, hence no preference is granted. The procedures allow firms 
to develop technology locally without forcing them to choose suppliers in a non -cost effective way.  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Poli cies by Sector  
4.4 Services  
4.4.5 Transport  
Page 147, paragraph 4.167  
The report states that between 2011 and 2014, a series of infrastructure investment projects were 
approved as part of the second phase of the Growth Acceleration Programme. These project s 
included the expansion of transport capacity via the extension of highways, roads, and railways, as 
well as the construction of new ports and airports while improving existing ones. However, the 
report also notes that the implementation of these projects  has not been very time -effective and 
results remain so far limited.  
Question 28  
Given that improving the quality and capacity of transport infrastructure is crucial to growing 
economic activity and trade, could Brazil provide an update on its infrastruct ure program, including 
openness to foreign investment.  
By the end of last year, 43.3% of the resources of the Growth Acceleration Program (PAC) for the 
period 2015 - 2018 had been spent by the Ministry of Planning. In June 2016, R$ 364.6 billion 
were inves ted, an amount that increased to R $ 449.8 billion in December 2016, resulting in 
several construction works throughout the country.  
Investments on logistics infrastructure covered 3,293 kilometers of highways, as well as the 
paving and construction of new roads, totaling 5,157 kilometers, benefiting the five regions of the 
country. Railways now have 3,457 kilometers of new structures.  
As for the airports, investments enabled the completion of the infrastructure of the new airport of 
Vitória da Conquista (BA); of the baggage transport system of Tom Jobim International Airport 
(RJ); the expansion and reform of the São Luís Airport (MA); the modernization of the Passenger 
Terminal at Santos Dumont Airport (RJ); the reform of the runways of Rio Branco Airport (AC) and 
Confins Airport (MG).  
In Brazilian ports, partnerships with the private sector were directed to dredging works, land and 
sea accesses and docks. In addition, the resources made possible the efficient management of the 
services of inspection, security and logistic intelligence.  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.5.1 Air transpor t 
4.4.5.1.1 Airlines services  
Pages 148, paragraph 4.171  
The report states that an increase of foreign capital participation in Brazilian air carriers remains 
under discussion. The report outlines various restrictions including that concessions for the 
provision of domestic scheduled air transport services are granted only to Brazilian legal persons 
with headquarters in Brazil, managed exclusively by Brazilians, and in which four fifths of voting 
rights are in Brazilian hands.  
Question 29  
Question 29: Can Brazil provide an update on possible reforms to allow greater foreign capital 
participation in Brazilian air carriers? Is consideration being given to relaxing the other various 
restrictions on air carriers in Brazil?  WT/TPR/M/358/Add.1  
 
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  in April 2017, a bill (PL 7425/2017) w as sent to Congress to eliminate all restrictions for foreign 
investment on Brazilian air carriers. Therefore, Brazilian air transport companies could hold up to 
100% of foreign capital. PL 7425/2017 is under discussion at the National Congress and is 
currently subject to the deliberation of the Chamber of Deputies (the Lower House).  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.5.1 Air transport  
4.4.5.1.1 Airlines services  
Pages 149, paragraph 4.173  
The report raises concerns about the allocation of airport slots, particularly through grandfathering 
and not allowing the commercial exchange of slots. Furthermore, according to IATA, the 2014 
regulation differs significantly from the Worldwide Slot Guide lines (WSG) (the accepted global 
standard for the policies, principles, and procedures of airport slot management), and the industry 
continues to advocate for amendments.  
Question 30  
In response to concerns raised by the IATA and industry, is Brazil revie wing existing arrangements 
and considering further reforms?  
ANAC is satisfied with the results achieved so far with the new regulation.  
The following positive elements can be highlighted:  
- operations are closer to the allocated slot;  
- airlines started to check & control their operations, trying to respect the allocated slot;  
- ANAC eliminated slot reservations (allocated slots that the airlines didn´t really mean to 
operate);  
- more priority accorded to flights to Brazil;  
- changes by carriers to adjust their on going schedules with the reality of their operations;  
- equipment upgrading;  
- better planning by carriers according to the allocated slots  
- better airport performance .  
ANAC has never amended Regulation 338, but operations are being aligned as much as possibl e to 
the international standards (WSG).  
The main goal of Resolution 338 is to improve efficiency in slot allocation, whilst maintaining good 
operations within coordinated airports – especially where infrastructure requires improvement. 
Regularity and On T ime Performance (OTP) is important and ANAC is carefully studying the WSG 
solution regarding misuse.  
Report by the Secretariat (WT/TPR/S/358)  
4 Trade Policies by Sector  
4.4 Services  
4.4.6 Distribution and e -commerce  
Pages 156 -157, paragraph 4.202 -4.204  
The report states that Brazil is the only Latin American country in the top -10 worldwide ranking for 
retail e -commerce, and one of the fastest growing among these main markets. Brazil has no de 
minimis rule whereby goods below a certain value are exempt fr om customs duties and taxes. 
Virtually all international e -purchases are subject to a 60% flat/single equalization tax on the 
purchase price covering/compensating customs duty and other internal taxes/charges on imports. 
Further it notes, a Simplified Taxa tion Regime applies to goods not exceeding US$3,000.  WT/TPR/M/358/Add.1  
 
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  Question 31  
Can Brazil explain the rationale for applying a 60 per cent flat equalisation tax on the purchase 
price of all international e -purchases? In addition, how is this figure calculated, i.e. what 
proportion is internal taxes/charges versus customs duty compens ation? Does this tax put foreign 
goods and services providers at a disadvantage to similar providers within Brazil? Can Brazil 
explain how the simplified taxation regime then works for goods not exceeding US$3,000?  
In addition to the regular system of tax ation, based on MERCOSUR Common External Tariff, 
optionally, the imports through postal or courier services valued up to US$ 3,000 can be levied at 
a flat rate of 60%. This tariff replaces all federal taxes normally levied on regular imports, and the 
taxab le base is the customs value of the goods (CIF bases) regardless of the tariff classification of 
the goods (they don 't need to be classified according to the MERCOSUR Common External Tariff).  
What is at issue is not the application of a specific fixed rate  for international purchases, but the 
existence of a simplified non -obligatory regime available for the taxpayer for the calculation of the 
tax due when goods are imported.  
The taxpayer can always choose the standard regime of taxation for the import of g oods, where 
import tax rates will change according to the product being imported, as per the general rule. In 
practice, this 60% rate is usually lower than the sum of all other taxes due individually as 
calculated according to the rules of the standard reg ime of taxation. Therefore it is not accurate to 
state that foreign imported goods are in a disadvantaged position compared to Brazilian goods. In 
the case where the tax due resulting from the 60% rate is higher the taxpayer can choose the 
standard regime of taxation for tax to be calculated.  
There is no other simplified taxation regime whose limit would be US$ 3000, but only regime 
(named "Regime de Tributação Simplificada - RTS" or Simplified Taxation Regime), which has the 
abovementioned limit for eligib ility.  
Report by Brazil (WT/TPR/G/358)  
4 Trade Institutional and Regulatory Framework  
4.2 Sectoral Issues  
4.2.8 Telecommunications  
Page 33, paragraph 4.97  
The report states that the "Antenna Law" seeks to reduce instances of mobile -network base 
stations i n urban areas by making a requirement for operators to share infrastructure and excess 
capacity.  
Question 32  
How common has facility sharing between mobile operators become in Brazil since the introduction 
of this law?  
The "Antenna Law" establishes the general rules for the installation and sharing of 
telecommunications infrastructure. The sharing of infrastructure is mandatory when there is 
capacity in excess, unless such excess is justified by a technical reason. The conditions for this 
waiver on shari ng are being analyzed by ANATEL. It is not possible yet to measure the effects of 
said Law regarding this specific issue.  
It is also important to note that the "Antenna Law" focuses on the sharing of passive 
infrastructure. With regard to active sharing (R AN Sharing, for example), there is no general 
obligation for the operators (except for certain specific obligations imposed in some radiofrequency 
biddings). Even without this obligation, however, the active network sharing, via RAN Sharing, has 
grown amon g Brazilian operators.  
  WT/TPR/M/358/Add.1  
 
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  CANADA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
II TRADE AND INVESTMENT REGIMES  
Regional and preferential trade agreements (RTAs and PTAs)   
Page 33 (table 2.2)  
The Secretariat report provides information on Brazil 's regional and preferential trade agreements, 
as well as details on MERCOSUR 's active and potential negotiations.  
Question:  
1. Can Brazil share its intentions on submitting to the WTO outstanding notifications of its free 
trade agreements, including those c oncluded as a member of LAIA and MERCOSUR?  
The assertion that most RTAs signed by Brazil have not been notified to the WTO is incorrect. The 
Montevideo Treaty of 1980 of the Latin American Integration Agreement (LAIA) was duly notified 
to the GATT under the Enabling Clause, on July 1st 1982, as document L/5342.  Brazil and other 
LAIA members notified to the GATT, and subsequently to the WTO Committee on Trade and 
Development, all regional or subregional trade agreements concluded under the umbrella of the 
Montevideo Treaty. Biennial reports, submitted until 2011, were replaced by annual reports from 
2012 onwards, in full compliance with the Provisional Transparency Mechanism for RTAs. The list 
of all agreements under the umbrella of LAIA notified to the WTO  can be found in document 
WT/COMTD/W/217.  
MERCOSUR  
Page 36 (paragraph 2.27)  
In July 2015, Decision CMC 26/15 authorized Brazil to maintain a basic list of national exceptions 
to the CET within its WTO bound rates; it can also request temporary reduction of  the CET and 
import capital goods and informatics and telecommunication Goods with tariffs lower than those of 
the CET (Section 3.1.3.1). There are also exceptions to the CET for toys, dairy products and 
peaches. The sugar and automotive sectors are the on ly exclusions to the free movement of goods 
within MERCOSUR, and there is no schedule for the inclusion of sugar in MERCOSUR's free trade 
regime.  
1. Could Brazil specify its full and precise list of exceptions to the MERCOSUR CET?  What, if 
any, exceptions exi st for products other than toys, dairy products and peaches?  
The full and precise list of exceptions to the MERCOSUR CET can be found at: 
http://www.mdic.gov.br/images/REPOSITORIO/secex/deint/cgam/tec/TEC_2017/maio -letec.xlsx.  
2. For all exceptions (includin g toys, dairy products and peaches, others), can Brazil outline 
the nature of the exception (e.g., a higher or lower tariff rate, quotas, etc.)?  
The nature of the exceptions can be found on column "C" of the file available for download at: 
http://www.mdic. gov.br/images/REPOSITORIO/secex/deint/cgam/tec/TEC_2017/maio -letec.xlsx.  
3. Can Brazil indicate whether any of these exceptions have changed from its last TPR?  
Yes. According to Decision 58/10, adopted by the Common Market Council, each Member State 
can chan ge up to 20% of its own list of exceptions to the MERCOSUR CET every six months.  WT/TPR/M/358/Add.1  
 
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  Page 37 (paragraph 2.28)  
It is noted that MERCOSUR is working towards the implementation of measures that would result 
in the unification of the customs systems of its Member States.  
1. Can Brazil provide more details on this initiative, including its status vis -à-vis its various 
implementation phases?  
2. Would the end goal of such measures result in all goods imported into MERCOSUR facing a 
single border tariff (with a single set of customs procedures), and following that, full, 
customs -free movement within all MERCOSUR Member States?  
Mercosur has set a w orking group with a view to discussing measures aimed at the commercial 
and economic enhancement of the bloc – Fortalecimento do Mercosul Comercial e Econômico. The 
working group has identified some 80 intra -bloc measures that could be revised in order to unify 
procedures and eliminate non -tariff measures among members. The unification of the customs 
systems is still under discussion.  
Page 37 (paragraph 2.29)  
The Secretariat Report notes that negotiations on a comprehensive free trade agreement between 
MERC OSUR and the European Union, a priority for Brazil, progressed and are to be completed by 
2018. In May 2016, Brazilian and EU representatives exchanged offers in goods, services, 
government procurement, and investment. In 2016, there was an exchange of off ers related to the 
expansion of the existing MERCOSUR –India agreement. In 2016, MERCOSUR and the European 
Free Trade Association (EFTA) completed a free trade agreement scoping exercise to identify 
negotiation issues and in early 2017 announced the intenti on to launch negotiations on a 
comprehensive free trade agreement. Since the last TPR, MERCOSUR has held discussions with 
Canada and Japan with a view to exploring the possibility of negotiating free trade agreements. As 
at early March 2017, MERCOSUR and K orea (Rep. of) had concluded their exploratory process in 
this area and Brazil was holding internal consultations to examine the possibilities of a trade 
agreement with this trading partner. Brazil also attaches high priority to trade negotiations 
between MERCOSUR and Mexico.  
Question:  
1. Could Brazil indicate if MERCOSUR intends to include environment provisions in current or 
pending FTA negotiations with these partners?  
Mercosur is open to discuss the inclusion of any subject on a free trade agreement ne gotiation, 
without prejudging the scope of the provisions to be finally agreed. A chapter on Sustainable 
Development is currently under discussion both in the Mercosur -EU and the Mercosur -EFTA 
negotiations.  
III TRADE POLICIES AND PRACTICES BY MEASURE  
Custo ms procedures, valuation, and requirements  
Page 42 (paragraph 3.8)  
In 2014, Brazil established an authorized economic operator (AEO) programme, which replaced 
the pre -existing "blue line" express clearance facility. Depending on the type of AEO certificati on, 
participants' benefits may include, among other issues, special customs regimes and/or zones.  
Question:  
1. Could Brazil please provide details on the special customs regimes that are applied to 
certified authorized economic operators?  WT/TPR/M/358/Add.1  
 
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  There is no spec ific customs regime for AEO companies, in fact, AEO companies are exempted to 
fulfill common requirements, such as digital fiscal bookkeeping, to be eligible for some customs 
regimes.  
Applied MFN tariff  
Page 46 (paragraph 3.28)  
In line with MERCOSUR rules,  Brazil maintains a range of temporary, individual derogations from 
the Common External Tariff. Three MERCOSUR mechanisms allowing for such derogations have a 
longstanding implementation record in Brazil: the basic list of national exemptions, the quotas f or 
lower tariffs, and the Ex Tarifário mechanism  
Questions:  
1. Could Brazil please explain the criteria it follows to determine its derogations from the 
Common External Tariff as well as the process that it follows to implement them?  
Derogations are decid ed at CAMEX, a collegial body comprised of multiple agencies of the Brazilian 
administration that are responsible for foreign trade. The process that it follows to implement them 
depends on the mechanism allowing for such derogations. Further information a nd applicable 
legislation can be found at:http://www.camex.itamaraty.gov.br/tarifa -externa -comum -
tec/alteracoes -temporarias/lista -de-excecoes -a-tarifa-externa -comum (basic list of national 
exemptions), http://www.camex.itamaraty.gov.br/ultimas -noticias/2 -uncategorised/25 -ex-
tarifarios -para-bk-e-bit (Ex Tarifário mechanism ), and 
http://www.camex.itamaraty.gov.br/ultimas -noticias/2 -uncategorised/24 -resolucao -gmc-n-08-08-
casos -de-desabastecimento (quotas for lower tariffs).  
2. How far in advance from the effective date are these tariffs published?  
It depends on the mechanism allowing for such derogations. Further information and applicable 
legislation can be found at:  http://www.camex.itamaraty.gov.br/tarifa -externa -comum -
tec/alteracoes -temporarias/lista -de-excecoes -a-tarifa-externa -comum (basic list of national 
exemptions) and http://www.camex.itamaraty.gov.br/ultimas -noticias/2 -uncategorised/25 -ex-
tarifarios -para-bk-e-bit and http://www.camex.itamaraty.gov.br/ultimas -noticias/2 -
uncategorised/24 -resolucao -gmc-n-08-08-casos -de-desabastecimento (quotas for lower tariffs).  
3. Are derogations negotiated among MERCOSUR members? Or are they simply 
communicated to other members?  
Derogations are not negotiated among MERCOSUR members. Subject to MERCOSUR's rules and  
regulations, each member has the right to decide unilaterally the corresponding list of products.  
Page 48 (paragraph 3.29)  
To mitigate any difficulties stemming from the entry into force of the CET, MERCOSUR members 
may individually apply different (higher or lower) tariff rates on up to 100 lines. Modifications to 
the so -called basic list of national exemptions may not exceed 20% of all listed lines within a 
six-month period. As at end -February 2017, Brazil's derogations under that mechanism concern ed 
99 NCM lines. The deadline for the elimination of Brazil's basic list of national exemptions has been 
extended until 31 December 2021 . 
Questions:  
1. Could Brazil please explain how it manages different tariff rates related to intra -
MERCOSUR trade?  
According to guidelines approved by the Common Market Council, MERCOSUR Common External 
Tariff (CET) can vary from 0% to 20%, based on the product category and whether or not there is 
regional production. The rate of 0%, for example, is an exception reserved f or some goods from 
specific sectors, such as seeds, breeding animals, oil, fertilizers, medication for HIV/AIDS, cancer, WT/TPR/M/358/Add.1  
 
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  hepatitis C, transplants, capital goods, IT and telecommunications goods, in case they are not 
produced inside MERCOSUR.  
The extension of the deadline for the elimination of Brazil's basic list of national exceptions to the 
CET derives from Decision n. 26/2015, adopted by MERCOSUR Common Market Council, in 
July, 2015, which allowed Brazil to extend its list up to 31 December 2021. In the same year, the 
Brazilian Foreign Trade Chamber (CAMEX) extended the Brazilian list of exceptions until that date. 
In accordance with MERCOSUR's rules, Brazil has the right to keep up to one hundred products in 
its permanent list of exceptions. The composit ion of the list is based on the same criteria adopted 
in order to stablish the guidelines for the CET: product category, and whether or not there is 
regional production.  
2. Does Brazil apply tariffs on goods originating from non -MERCOSUR members that have 
previously been imported into another MERCOSUR member and duties paid to this other 
MERCOSUR member?  
Mercosur is implementing a free movement treatment in order to avoid imposing tariffs on goods 
originating from non -MERCOSUR members that have previously b een imported into another 
MERCOSUR member. Notwithstanding, this implementation is progressive and does not cover yet 
all tariff lines . 
3. What, if any, tariffs would Brazil apply to such goods in cases where Brazil applies a tariff 
different from the Comm on External Tariff?  
If a situation described in the previous question occurs and Brazil applies a tariff different from the 
Common External Tariff, only this exception tariff rate (and of course, internal taxes) apply.  
Page 48 (paragraph 3.29)  
According to  the Secretariat 's Report, Brazil is authorized to maintain a number of different 
exceptions to MERCOSUR 's Common External Tariff (CET). The report also notes that "the deadline 
for the elimination of Brazil's basic list of national exemptions has been ext ended until 31 
December 2021. " 
Question:  
1. Can Brazil explain what steps it will undertake to fulfill the requirement to eliminate its 
basic list of national exemptions by the end of 2021?  
The extension of the deadline for the elimination of Brazil's basic list of national exemptions to the 
CET derives from Decision n. 26/2015, adopted by MERCOSUR Common Market Council, in 
July, 2015, which allowed Brazil to extend its list up to 31 December  2021. Further decisions will 
be considered in due time.  
Page 48 (paragraph 3.31)  
As a means of addressing shortages within the common market, MERCOSUR members may 
individually apply tariff quotas (with an in -quota rate of 2% or, e xceptionally, zero) on up  to 
45 tariff lines at a time for up to 24 months (renewable for up to 12 additional months). The 
quantitative restriction, in -quota rate, and duration of application are determined by MERCOSUR's 
Commerce Commission after consultation with all member state s. 
Questions:  
1. Could Brazil please provide details on the consultations with other member states that the 
MERCOSUR 's Commerce Commission goes through to determine quota, in -quota rates and 
duration of proposed TRQs?  
For complete details on how to presen t applications for tariff quotas, procedures, consultations, 
relevant information, renewal process and the most recent lists of products that are subject to WT/TPR/M/358/Add.1  
 
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  individual tariff quotas and those still under analysis, please see 
http://www.sain.fazenda.gov.br/ assuntos/integracao -regional -e-comercio -exterior/gtar.  
2. Is the member requesting the TRQ required to provide information in support of its 
request? If so, what information is required to assess its request?  
Yes. The member requesting the TRQ is required to provide comprehensive information regarding 
the product, local and regional production, foreign trade statistics and any other relevant 
information supporting the claim. The full list can be found on Annex I of CAMEX Resolution 42/11, 
available at http: //www.sain.fazenda.gov.br/assuntos/integracao -regional -e-comercio -
exterior/gtar/arquivos/anexo -i-resolucao -camex -42-2011.  
3. Once established, is the allocation of the quota the responsibility of the requesting 
member? What allocation mechanism is normally  used by Brazil?  
After the establishment of the quota, it will be up to the Brazilian government to arrange its 
allocation. Initially, the quota will be granted by CAMEX Resolution. Subsequently, DECEX (Foreign 
Trade Department) will establish the distribution criteria for the quota, always seeking to achieve 
the purpose of that concession. The distribution of the quota will be effected by SECEX (Foreign 
Trade Secretariat) Ordinance.  
4. Where does Brazil publish information regarding these TRQs?  
The Annex III of SECEX Ordinance Nº. 23/2011 presents the products, respective quotas and 
distribution criteria of quotas granted by CAMEX Resolution. The link to access the SECEX 
Ordinance No. 23/2011 is: http://portal.siscomex.gov.br/legislacao/biblioteca -de-
arquivos/secex/portaria -no-23-de-14-de-julho-de-2011.  
5. Are there TRQs included in Brazil 's tariff schedule?  
The current quotas are listed in Annex III of the Ordinance SECEX Nº 23/2011. Link to access the 
SECEX Ordinance No. 23/2011 is:  http://portal.s iscomex.gov.br/legislacao/biblioteca -de-
arquivos/secex/portaria -no-23-de-14-de-julho-de-2011.  
Preferences  
Page 49 (paragraph 3.34)  
The WTO process of certifying Brazil's bound tariff schedule in order to incorporate the changes 
resulting from the introduction of HS versions 2007, 2012 and 2017 has not yet been completed. 
Applied rates on some 134 tariff lines (up from 120 in 2012) exceed, sometimes partially (due to 
differences in aggregation levels), Brazil's bindings.  
1. Could Brazil please mention which tariff lines have tariffs that exceed its bound rates?  
The tariff rates applied by Brazil, as authorized by the MERCOSUR instruments, do not exceed the 
maximum World Trade Organization (WTO) bound tariffs.  
2. Why does Brazil apply tariffs above its WTO bound rates?  
Since bound rates of Mercosur members are different, it is possible to find some CET rates above 
Brazilian bound rates. In such cases, the Brazilian bound rates are applied. Therefore, as stated 
above, the tariff rates applied by Brazil do no t in any case exceed the maximum WTO bound 
tariffs.  
3. Is there an estimated time to complete the certification process for HS 2007?  
At this moment, there is no estimated time to complete the certification process for HS 2007.  WT/TPR/M/358/Add.1  
 
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  Other charges affecting imports  
Page 50 (paragraph 3.37)  
Brazil's internal taxation regime remains overly complex, including in the treatment of imported 
goods and services.  
1.  Does Brazil have plans to reduce the number and diversity of fees and charges, and simplify 
its taxation reg ime regarding the treatment of imported goods and services?  
We understand that all fees and charges currently applied are commensurate with the cost of 
services rendered and as such there is no plan to reduce them. All the information on fees is 
already a vailable on the Single Window web page. In the context of the new Single Window 
Programme, one feature being developed is the possibility to offer a single point of payment of all 
fees and charges related to the importation of goods .  
Regarding taxation, t he simplification of the system and of some taxes has been studied. A bill, not 
yet submitted to Congress, has been drafted to create a new tax (social contribution) to replace 
the PIS and COFINS federal taexes. This new tax will be fully compliant with OE CD guidelines.  
Furthermore, in the context of the Single Window Programme, one of the initiatives, already in 
development, is to offer an online tool that will be a single point of payment of all fees and charges 
regarding the importation of goods.  
Import  prohibitions, restrictions, and licensing  
Page 53 (Table 3.6)  
Table 3.6 lists products subject to import prohibitions, including those related to endangered 
animals and plants, hazardous waste and ozone -depleting substances.  
Question:  
1. Could Brazil provide information on the government entities responsible for developing, 
implementing and enforcing environment -related import prohibitions?   
The entity involved is Brazilian Institute of Environment and Renewable Resources (Instituto 
Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis – IBAMA), agency related to the 
Ministry of Environment (Ministério do Meio Ambiente – MMA).  
Page 53 (paragraph 3.47)  
In general, Brazil maintains import prohibitions on health and moral grounds, and to comply wi th 
international conventions to which it is a party. Table 3.6, Import Prohibitions 2017, lists wines as 
prohibited products if transported in containers of more than 5 litres in accordance with Article 26 
of Law No. 7,678 of 8 November 1988.  
Question:  
1. Could Brazil please provide further details on the justification for this import prohibition?  
The national legislation on wine containers reproduces the one contained in article 8.1 of Mercosur 
Resolution 45/1996, which determines that, within the Mercosu r Members, the maximum capacity 
of the containers is 5 liters. The aim, according to this Resolution, is to preserve the identity of the 
wine products of each Member.  
Imported products receive the same treatment as national products. The objective is to av oid 
fraud, guarantee quality and consumer protection.  WT/TPR/M/358/Add.1  
 
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  Page 54 (paragraph 3.51)  
The Secretariat Report indicates that from 2013 -16, the main additions to the list of imports 
subject to non -automatic licensing included endangered species (some 200 tariff lin es) and several 
manufactured goods (i.e. automotive parts).  
Questions:  
1. Could Brazil provide information on the government entities responsible for granting and 
processing licenses for imports of endangered species?  
2. What are the criteria used to determi ne if a species is endangered? Which government 
entity determines these criteria?  
The entity responsible for the licensing is Brazilian Institute of Environment and Renewable 
Resources (Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováve is – IBAMA), 
agency linked to the Ministry of Environment (Ministério do Meio Ambiente – MMA).  
IBAMA established procedures through a specif system for the evaluation and issuance of 
Export/Import Licenses based on the Convention on International Trade in  Endangered Species of 
Wild Fauna and Flora. The Cites and Non -Cites Licensing System (Siscites) consists of two 
modules: one external and one internal. Using the external module the user will request the 
license. The internal module is of IBAMA's exclusiv e access for analysis of the requests and 
issuance of the licenses.  
The Institute Chico Mendes (Instituto Chico Mendes – ICMBio), also under the Ministry of 
Environment, is responsible for conducting the assessment of the risk of extinction of Brazilian 
fauna and for identifying and locating the main threats, important areas for the maintenance of the 
species and compatibility with anthropic activities.  
This evaluation supports the review by the MMA of the National Official List of Endangered Species, 
which is based on the Convention on International Trade in Endangered Species of Wild Fauna and 
Flora, also known as the Washington Convention (Cites) and i ts Appendices. It is a cyclical 
process, with revaluations every five years, since knowledge about a particular species and its 
conservation situation change over time. In 2014 the Chico Mendes Institute closed the first 
evaluation cycle, in which 12,254 taxa of the Brazilian fauna were evaluated. In 2016, the process 
entered its second evaluation cycle.  
Anti-dumping, countervailing, and safeguard measures  
Page 55 (paragraph 3.55)  
It is noted that new procedures for anti -dumping measures came into force in October 2013, 
including the introduction of mandatory preliminary determinations; refinements to the definition 
of domestic industry; reduction of the domestic industry representa tiveness threshold; and, the 
introduction of retroactive application of anti -dumping duties.  
Questions:  
1. Could Brazil please indicate how many retroactive anti -dumping duties were applied during 
the review period?  
So far there has been only one case of r etroactive collection of definitive anti -dumping duties 
(certain nylon yarns from Chinese Taipei, the People's Republic of China and the Republic of 
Korea).  
2. Could Brazil please elaborate on what factors are considered when deciding whether to 
impose ret roactive anti -dumping duties?  WT/TPR/M/358/Add.1  
 
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  According to Article 85 of Decree No. 8,058, of 2013, retroactive collection of the anti -dumping 
duty, as a rule, may occur only in cases of positive final determination of material injury to the 
domestic industry.  
However, a s provided for in sole paragraph of the aforementioned Article, when a final affirmative 
determination of threat of material injury to the domestic market is made, the retroactive 
application of anti -dumping duties shall only be allowed where the effect of  the dumped imports 
would, in the absence of the provisional measures, have led to a determination of material injury 
to the domestic industry.  
Besides that, as provided for in Article 89 of Decree No. 8,058, of 2013, a definitive anti -dumping 
duty may onl y be collected on dumped imports whose known date of shipping is up to ninety (90) 
days prior to the application of the provisional measures. For this, it is necessary the existence of a 
history of dumping, of injury to the domestic industry, and of a caus al link between the dumped 
imports and the alleged injury or that the importer was, or should have been, aware that the 
producer or exporter practices dumping and that such dumping would cause injury, and the injury 
is caused by massive dumped imports of a  product in a relatively short time which in light of the 
timing and the volume of the dumped imports and other circumstances is likely to seriously 
undermine the remedial effect of the definitive anti -dumping duty to be applied.  
Export prohibitions, restr ictions, and licensing  
Page 58 (paragraph 3.69)  
The Report notes that Brazil maintains export prohibitions for environmental protection reasons, 
and in compliance with international agreements and United Nations resolutions. The list of export 
prohibitions  includes raw leather of amphibians and reptiles, as well as certain organic chemicals 
(if exported to non -signatories of the Montreal Protocol). Exports of wood in the rough (HS 4403) 
are suspended, unless approved by the Brazilian Institute of the Enviro nment and Renewable 
Natural Resources (IBAMA).  
Question:  
1. Could Brazil provide information on the government entities responsible for implementing 
and enforcing these environment -related export prohibitions?   
The entity responsible is Brazilian Institu te of the Environment and Renewable Natural Resources 
(Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis – IBAMA), agency 
linked to the Ministry of Environment (Ministério do Meio Ambiente – MMA) (Law nº 7.735, of 
1989).  
Page 58 (pa ragraph 3.70)  
The Report notes that export authorization or licensing requirements remain in place for a 
relatively large number of products, mainly for safety, health, security, environmental, or native 
fauna protection reasons. Prior authorization is req uired for each export shipment, but the 
authorities note that forthcoming changes in the context of Brazil's Single Window Programme 
(Section 3.1.1) would relax this requirement, once SISCOMEX is redesigned for differential 
treatment of export licences and  authorizations.  
Question:  
1. Could Brazil elaborate on how its Single Window Programme will relax export authorization 
and/or licensing requirements for environmental or native fauna protection reasons? Will 
this have implications for Brazil's compliance wi th international agreements and United 
Nations resolutions as referred to in paragraph 3.69?  
There will not be any relaxation either on export authorization or on licensing requirements that 
will impact on the environmental or native fauna protection. All international agreements and 
treaties will be fulfilled in good faith.  WT/TPR/M/358/Add.1  
 
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  Export support and promotion  
Page 59 (paragraph 3.74)  
It is noted that the National Export Plan was introduced in 2015 as part of a range of programmes 
intended to increase exports and boost the competitiveness of export -oriented companies. It is 
stated that the plan includes actions on export finance and guarantees; and tax regimes and 
facilities for export support.  
Question:  
1. Could Brazil please elaborate on any new export support instruments introduced in the 
National Export Plan? In particular, could Brazil please indicate if any support measures 
based on export performance are included?  
The National Export Plan encompass a set of policies focused on trade facilitation, trade prom otion 
and trade intelligence aiming at encouraging Brazilian companies to participate more actively in 
international trade. It does not encompass any export support measures within the meaning of the 
SCM Agreement  
Incentives  
Page 66 -67 (paragraphs 3.104 -3.117) 
It is noted that incentives and support programmes (excluding foregone revenue) provided by 
Brazil 's federal government increased from R$51.6 million in 2013 to R$163.2 million in 2016. It is 
further noted that Brazil maintains incentives and programm es administered at both the federal 
and sub -federal levels, and that most state and municipal governments offer incentives to 
businesses independently of the federal programmes in place.  
The Report notes that Brazil 's 2014 notification to the WTO Committee  on Subsidies and 
Countervailing Measures notified 11 federal subsidy programmes, which are the same as at the 
time of Brazil 's previous notification. Canada further notes that Brazil 's most recent notification to 
the WTO Committee on Subsidies and Counter vailing Measures in April 2017 (G/SCM/N/284/BRA) 
only notifies 10 programmes.  
Questions:  
1. Given the substantial increase in incentives and support programmes provided by the 
federal government since 2013, can Brazil confirm whether all programmes have bee n 
notified, as required under Article 25 of the Agreement on Subsidies and Countervailing 
Measures?  
Yes. All subsidies in accordance with Article 25 of the ASCM have been notified.  
2. Can Brazil please indicate whether it intends to notify sub -federal program mes? 
There are no sub -federal programs that need notification under Article 25 of the ASCM.  
Free-trade zones  
Page 68 (paragraph 3.115)  
The Report notes that as of March 2017, some 459 companies were residing in the Manaus Free 
Trade Zone (ZFM), and the other FTZs had a total of 82 resident companies. Eligibility for 
establishment in the ZFM is conditional on observing PPB criteria (Section 3.3.3.1); a number of 
environmental and social requirements also apply.  WT/TPR/M/358/Add.1  
 
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  Question:  
1. Could Brazil provide information on the environmental requirements that apply to be 
eligible to establish in the ZFM?  
According to the Resolution n° 203/December 2012 from the Administrative Board Council of the 
Superintendence of Manaus Free Trade Zone (CAS), it is required for a company , before 
establishing a project in the ZFM, an environmental permission granted by IPAAM (Institute of 
Environmental Protection of Amazonas), with the company fulfilling all the necessary requirements 
for acquiring this environmental licence. Additionally,  the CAS Resolution n° 38 from May, 2017, 
stablish that SUFRAMA, in the moment of registering a company in ZFM, must make a public 
consultation on environmental notices and embargoes that the company may have taken by 
IBAMA, the Brazilian Institute of Envi ronment and Renewable Natural Resources, which is a federal 
agency linked to the Ministry of Environment of Brazil, in order to certify that the company has a 
safe history in their relation with the environment. Besides, It is a common practice for the 
companies in ZFM to adopt the ISO 14000 certification, despite not being mandatory.  
2. Could Brazil provide information on the government entities responsible for developing 
these environmental criteria?  
All the general requirements for establishing a project  in ZFM are developed by the Administrative 
Board Council of SUFRAMA (CAS), in compliance with the Decree -Law n° 288/1967 that created 
ZFM, but the specific criteria for the mandatory environment licence are developed by IPAAM, the 
Institute of Environment al Protection of Amazonas is a governmental agency that is responsible for 
the monitoring and surveillance of the environmental policy in the Amazonas state. The inquiry on 
notices and embargoes regarding the environmental laws are developed with IBAMA, wh ich is the 
Brazilian Institute of the Environment and Renewable Natural Resources, federal agency directly 
linked to the Ministry of Environment of Brazil, responsible for implementing and supporting 
activities to preserve and conserve the natural patrimon y by monitoring and controlling the use of 
the natural resources in Brazil.  
Page 69 (paragraph 3.119)  
There are no restrictions on shipments from the free trade zones (FTZs) to the rest of Brazil: 
importers may supply foreign goods from their stock in the FTZs to other parts of the country, 
without any quantitative limits. Goods imported into Brazil from the FTZs are subject to all import 
duties and taxes normally assessed, with the exception of duties on inputs, which are reduced by 
up to 88%.  
Question:  
1. Could Brazil please clarify if inputs imported directly from third countries also have their 
duties reduced? Or is this benefit only for inputs imported through the FTZs?  
Standards and other technical requirements  
Page 73 (paragraph 3.135)  
The report not es that, in the case of technical regulations, a period of 6 months is typically allowed 
between the publication of a measure and its entry into force. Ministries and agencies with 
authority to elaborate and issue technical regulations may do so ex officio , except in exceptional 
cases.  
Questions:  
1. Could Brazil elaborate on the circumstances under which the concept "exceptional cases " is 
applied?  
Public consultation is a formal mechanism for information disclosure and social insertion in policy 
matters of general interest, providing greater transparency and legitimacy to the regulatory 
process. Currently, public consultation is well established as a common practice among many WT/TPR/M/358/Add.1  
 
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  regulatory agencies, as recommended in the Good Regulatory Practices Guidelines (Brazilian 
Regulatory Committee/Conmetro, available at 
http://www.inmetro.gov.br/qualidade/pdf/guia_portugues.pdf), in the Regulatory Directives of  
Inmetro (Portaria Inmetro 252/2015, available at 
http://www.inmetro.gov.br/legislacao/rtac/pdf/RTAC002260.pdf) and in the internal procedure of 
development and improvement of regulatory measures (NIE -Dconf -002/2017).  
In exceptional cases, depending on the  urgency for intervention of the regulatory authority, some 
normative acts are published directly in the Official Journal without public consultation or with a 
consultation period of less than 60 days. In general, these acts consist of minor changes or 
additions to existing regulations, not imposing completely new regulations or restrictive 
obligations. In some cases, there are textual corrections, such as typing and spelling mistakes, 
incorrect references to standards, or extensions of the period of adjust ment to existing 
regulations. There are a few other cases that require an immediate public response due to risks 
related to safety and health of consumers, such as acts banning or recalling products. Similar 
arguments apply to the period of entry into forc e of a regulation.  
2. Could Brazil provides examples of "exceptional cases "? 
Public consultation was not applied in the improvement of regulation of a few products, for 
example (i) cradles, since an additional safety requirement was needed due to the ident ification of 
imminent risk of choking with the mattress, and (ii) toys, since an additional requirement for laser 
power was needed due to the identification of imminent risk of eye injury.  
Sanitary and phytosanitary requirements  
Page 78 (paragraph 3.156)  
The Report notes that establishments that produce, import, or export fertilizers, as well as the 
products themselves, must be registered with MAPA. The Ministry also maintains a register of 
pesticides (AGROFIT), which incorporates relevant information from  the Ministries of Health and 
Environment.  
Question:  
1. What is the role of the Ministry of Environment in regards to the registration of pesticides?  
The Ministry of the Environment, through the Brazilian Institute of the Environment and Renewable 
Resourc es, participates in the evaluation of pesticides and similar products with the objective of 
evaluating potential impact to the environment as well as evaluating each registration on the basis 
of na environmental risk assessment.  
Government Procurement  
Page 82 (paragraph 3.174)  
The Secretariat Report notes that "Brazil is neither a party nor an observer to the WTO Plurilateral 
Agreement on Government Procurement (GPA). The Agreement on Economic and Trade Expansion 
between Brazil and Peru, signed in April 2016, contains a chapter on government procurement. 
Brazil is involved in ongoing negotiations on a MERCOSUR Public Procurement Protocol, as well as 
in FTA negotiations between MERCOSUR and the EU that also include a chapter on public 
procurement. " 
Questio n: 
1. Is Brazil considering aligning its public procurement chapters under negotiations with 
MERCOSUR and the EU to the WTO -GPA? 
The public procurement chapter under negotiation between MERCOSUR and the EU contains some 
articles and principles in line with  the WTO -GPA. This does not mean that Brazil or its MERCOSUR 
partners are aligning to the WTO -GPA the public procurement chapter under negotiation with the WT/TPR/M/358/Add.1  
 
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  EU and eventually with other countries or blocs. Brazil and its MERCOSUR partners are not 
members of  the WTO -GPA. 
Pages 83 -84 (paragraph 3.181)  
The Secretariat Report notes that "As a general rule, national products are those produced in 
accordance with a PPB (Section 3.3.1.1) or with rules of origin established by the Federal 
Government, which must fol low MERCOSUR minimum standards. National services are those 
supplied inside the Brazilian territory, under conditions to be determined by the Government. 
According to the authorities, the suppliers' origin is not among the criteria for preference eligibili ty. 
The preference margin is calculated on the basis of the lowest -price offer among those ineligible 
for preferential treatment. "  
Questions:   
1. Does Brazil have an exhaustive list of national services and respective corresponding 
criteria for preference el igibility?  
There is not an exhaustive list of national services.  
The criteria for preference eligibility defined by the Law are:  
I – the impact on employment and national Income;  
II – the impact on tax revenue;  
III - the impact on technological innovat ion and development;  
IV – the impact on additional costs of products and services;  
V – an analysis of outcomes, in case of review.  
2. If yes, where can one find them?  
Article 3 - Law 8.666 of 1993, available at: http://www.planalto.gov.br/ccivil_03/leis/L8656.htm . 
Intellectual property rights  
Page 88 (paragraph 3.190)  
Industrial property contracts need to be registered at INPI in order to have effect for third parties, 
enable the remittance of royalties and licence fees, and qualify for income tax deductions. During 
the period under review, Brazil has taken steps to streamline the submission and examination of 
applications for various forms of industrial property protection, including patents and trademarks. 
Procedural innovations included: the implementation of a system for simplified electronic filing and 
WIPO's Industrial Property Automation System (trademark applications); fast -track examination 
initiatives (e.g. for "Green Patents", and applications by mi cro-enterprises and the disabled); 
publication of examination guidelines (patents and trademarks); and a productivity incentive 
programme for examiners.  
Question:  
1. For procedural innovations such as "Green Patents " and the productivity incentive programme 
for examiners, would Brazil provide further information on the impact these efforts have had 
on the INPI 's granting of intelle ctual property rights thus far?  
The Green Patents pilot program started on 17 April 2012 and it s third phase ended on 
16 April 2016. After four years in the pilot scheme, the Green Patents priority examination became 
a permanent service of INPI, since December 6, 2016, due to the good results achieved. 
Considering the 480 applications during the pilot program, 325 wer e considered elig ible, with 
112 applications deferred and 115 rejected until September 2016. The maximum time for these 
decisions was about two years.  
Concerning the productivity incentive, there was a simplification of technical procedures of exams, 
and the implementation  of home office, conditioned to a higher production of the examiners. WT/TPR/M/358/Add.1  
 
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  Additionally, since 2016, 150 new examiners of patents were hired by INPI, in order to reduce the 
processing time for patents.  
In the patent area, decisions increased by 88% in last May compared to April. In the accumulated 
first five months of this year, there were 22,134 decisions, a number higher than the total 
recorded for the entire year 2014 (22,336 decisions) and 2015 (15,842 decisions). In comparison 
between May 2017 and with May 2016, the increase was 138%.  
Page 88 (paragraph 3.192)  
Since 2012, INPI been participating in PROSUR, a project focused on cooperation among industrial 
property offices in several Latin American countries. PROSUR aims at: (i) establishing a forum for 
dialogue between offices; (ii) creating a common portal in order to offer a set of services for the 
participating countries, such as centralized search in interconnected databases; (iii) database 
interconnection; and (iv) collaborative examination of patent app lications. Negotiations on the 
terms of a PPH among PROSUR participants are ongoing, and the launching of a pilot project is 
expected to take place in 2017.  
Question:  
1. Would Brazil share best practices on strategies to improve the effectiveness of intell ectual 
 property office s in the Latin American region?  
PROSUR is a system based on the equality of rights and obligations between the parties and in the 
decision -making by consensus. In this sense, all members are available to share their experiences 
and b est practices in order to improve the effectiveness of intellectual property offices in the Latin 
American region.  
Page 89 (paragraph 3.198)  
The protection granted to copyrighted works is independent of registration. However, right holders 
may register the ir works at accredited institutions, such as the Brazilian National Library; the 
School of Music or the School of Fine Arts of the Federal University of Rio de Janeiro; the Council of 
Architecture and Urbanism; or INPI (software). Being of declaratory natu re, the registration does 
not confer a right but provides a presumption of authorship, which may be helpful in judicial 
procedures.  
Questions:  
1. Would Brazil please clarify the registration process? More specifically, is the registration of 
copyright wi th one of the listed accredited institutions treated equally when compared to 
another of the listed accredited institutions?  
Registration of copyrighted materials depends on the nature of each intellectual work. For 
instance, literary works may be registe red at the Brazilian National Library, whereas artistic works 
may be registered at the School of Fine Arts. Thus, the procedures vary according to the 
accredited institution. Each institution has its own rules and fees. As registration is not obligatory, 
all these accredited institutions have the same validity.  
2. Is the above list a comprehensive list of all the accredited institutions?  
The above list is not comprehensive of all the accredited institutions. The list is provided by the old 
Copyright Act of Brazil (Law n. 5.988, from 1973). At that time, audiovisual works were registered 
at the National Institute for the Cinema, which was replaced by the Brazilian Film Agency 
(ANCINE).  
Page 89 (paragraph 3.199)  
The Copyright Law does not contain provisions wi th respect to the international exhaustion of 
rights; decisions are taken on a case -by-case basis. In the context of this Review, the authorities 
noted that jurisprudence on the subject is not presently available, since there is no final decision WT/TPR/M/358/Add.1  
 
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  by higher  courts on the issue. Under Brazilian law, copyright holders may initiate procedures for 
the prosecution of importers of pirated goods.  
Questions:  
1. Would Brazil please clarify how exhaustion is incorporated into the scope of copyright 
protection? What is the state of the law currently, and what factors or criteria do the 
courts consider in each case?  
2. Given the prohibition of parallel imports, can Brazil confirm that international exhaustion, 
with the exception of copyright protections, does not extend t o other IPR covered by the 
Industrial Property Law?  
Exhaustion is understood as a doctrine and may be applied by the courts. Nevertheless, the 
Copyright Act of Brazil does not have any specific provision regarding exhaustion and there is no 
case law availa ble on the subject so far.  
Page 89 (paragraph 3.201)  
During the review period, Brazil updated its legislation on the collective management of copyright 
and related rights, and created a Permanent Commission for the Improvement of Collective 
Management (CPA GC). Brazil also adopted a civil rights framework for the Internet, which foresees 
the elaboration of specific legislation regulating the liability for damages resulting from content 
managed by third parties  
Questions:  
1. What was the reason for the estab lishment of the commission? What is the mandate of the 
Permanent Commission for the Improvement of Collective Management, how does it work, and 
what, if any, improvements have been observed in respect of collective management as a result of 
the Commission?  
Some years ago, authors and performers were complaining about the lack of transparency and 
accountability in the collective management of copyright and related rights. In the music sector, 
there was a monopoly without any state supervision. In this contex t, right holders and users 
brought many complaints to the courts, which had negative impacts to the system due to the 
excessive quantity of lawsuits. Then, the government started to discuss a Copyright Reform 
focused on collective management. The result wa s the approval of the Law n. 12.853 in 2013. At 
that occasion, many right holders asked for a space to discuss issues and challenges related to the 
collective management in Brazil. The Permanent Commission aims to provide a multilateral forum 
of discussion  to different stakeholders, including government officers, copyright owners and users. 
The Commission is responsible for analyzing outcomes reached by collective management 
organizations as well as discussing international standards in order to improve the  collective 
management in Brazil. The Commission may give opinions and recommendations to the Ministry of 
Culture on measures regarding Collective Management Organizations (CMOs) and it can suggest 
the production of reports and studies. The members periodi cally meet in Brasília. The Commission 
participates actively during the most important debates concerning the collective management of 
copyright and related rights. The members are responsible for providing technical information to 
the Department of Intell ectual Rights in decision -making and discussion of draft bills. Since its 
origins, the Commission has been leading several discussions on important topics in the field of 
copyright and related rights. These topics included the implementation of the process  of 
authorization of CMOs to collect and distribute royalties related to the digital environment and the 
complementary decree on the general process of authorization. Recently, the Commission has 
been discussing the interface between sound systems and coll ective management.  
2. Can Brazil please provide information about any work that has been or is being done on the 
elaboration of legislation regulating the liability for damages resulting from content managed by 
third parties? Is there currently any liabili ty resulting from content managed by third parties? How 
would the new legislation change things?  WT/TPR/M/358/Add.1  
 
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  Articles 18 to 21 of the Civil Rights Framework for the Internet deal with the liability of Internet 
service providers (ISPs) for third parties ' infringing content. The general rule is that the Internet 
service provider will not be deemed liable for user -generated content. Nevertheless, according to 
article 19, infringements regarding copyright and related rights must be subject to new legal 
provisions. Therefore, the government of Brazil must discuss a new legislation concerning liability 
of ISPs in copyright infringements committed by third parties. The rules of the current Copyright 
Act must be applied until there is a specific regulation. The C opyright Act does not have any 
specific provisions on ISPs ' liability. However, judicial authorities may order the suspension of the 
transmission or the communication the public of infringing content. The new legislation would 
establish specific rules on I SPs' liability. However, Brazil has not discussed a particular proposal 
yet. In 2015, the government organized a series of meetings with different stakeholders to discuss 
issues regarding copyright protection in the digital environment, but there was not a ny specific 
proposal on ISPs ' liability.  
During the period under review, Brazil introduced penalty provisions for infractions in the collective 
management of copyright and related rights, and in the benefit sharing of genetic resources and 
associated tradi tional knowledge. Other civil and criminal penalty provisions in Brazil's legislation 
for violations of industrial property, copyright and related rights remained unchanged. Criminal 
penalties are stipulated for infringements related to all categories of I PRs, except protected plant 
varieties.  
Question:  
1. Can Brazil please describe the new penalties that were introduced during the period under 
review?  
Regarding the collective management of copyright and related rights, Brazil 's new legislation (Law 
n. 12. 853, from 2013) introduced some obligations to Collective Management Organizations 
(CMOs). Most of them are related to standards concerning accountability and transparency. CMOs 
are now subject to a process of authorization to collect and distribute copyri ght royalties. They 
must send documents to the Ministry of Culture, which is responsible for granting the 
authorization. The penalty for non -compliance with the rules established by the law, in this case, is 
the refusal of the authorization. In general, CM Os must provide accountability and transparency 
for right holders and users under the terms of the law and the succeeding regulations. In this 
sense, their members may make a complaint to the Ministry of Culture in the case of 
non-compliance of CMOs with t hese rules. In addition, their leaders have a type of secondary 
liability for misuse or default of the obligations undertaken by CMOs relative to their members.  
IV TRADE POLICIES BY SECTOR  
Page 91 (paragraph 4.2)  
Brazil remains a major player in the global  trade of certain agricultural commodities... Although it 
continues to provide a low and decreasing level of support to its agricultural producers compared 
with other countries, Brazil maintains several domestic support measures… A state trading 
company re mains involved in the operation of some agricultural policy measures (e.g. storage and 
minimum price guarantees).  
Question:  
1. Could Brazil please provide details on how the state trading company operates the 
minimum guarantee price? Does the company purc hase from growers at such minimum 
price?  
CONAB is the operator of the PGPM (see Section 4.1.4.1.1. for details). Yes, as the operator of the 
PGPM, CONAB purchases products at minimum price from farmers, but it also acquires products 
under market conditions for domestic food aid purposes to supply some social programs  
Page 92 (paragraph 4.3)  
A 2016 More Productive Brazil initiative is aimed at implementing lean manufacturing principles to 
raise productivity levels. Production step -related local con tent requirements tied to domestic WT/TPR/M/358/Add.1  
 
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  support measures continue to shield domestic producers from foreign competition. 
Industry -specific incentives for some sectors, including automotive (INOVAR -Auto, until 2017), 
information technology, aeronautics, fertiliz ers and pharmaceuticals, were continued.  
Question:  
1. Could Brazil please provide further details on its support measures requiring local content? 
Are these applied to specific sectors or are they broadly applied?  
Brazil reiterates that its policies aime d at industrial production in the country comply with the 
Agreements and the rules of the WTO. Also, it should be noted that the instruments vary across 
the industrial base.  
Agricultural/rural credit  
Page 102 (paragraph 4.31 ) 
The Secretariat report mentions that the agricultural credit resources available to commercial 
farmers under the Agricultural and Livestock plans increased by 20% between 2014/2015 and 
2015/16. The report also states that of these resources only 20% (2015/ 16) and 18.1% (2016/17) 
were used for investment loans and the remaining were directed to working capital and marketing 
loans.  
Questions:  
1. What accounts for the 20% increase of agricultural credit resources between 2014/2015 
and 2015/16?  
The increase is t he result of government 's estimate of the demand of credit and the cost of 
production of the crop -year. 
2. What portion of the agricultural credit resources for commercial farms is used to finance 
working capital?  
In 2016, the portion was 58,4%.  
The secretar iat report mentions that the allocation (availability) of credit resources for investment 
by commercial farmers decreased by 13.3% in 2015/16 and 11% in  2016/17 to reflect 
developments in demand, but strongly increased for working capital and marketing loa ns, 
following the increase in compulsory resources from LCAs ( Letras de Crédito do Agronegóci) .  
Question:  
1. Could Brazil explain this shift in demand from credit resources for investment to working 
capital and marketing loans?  
This shift was driven by the reduction of the government budget available to equalization of the 
interest rate for part of the investment credit. Most part of working capital and marketing loans 
does not require the equalization of the interest rate by the government . 
The Secretariat report states that according to the OECD 's Agricultural Policy Monitoring and 
Evaluation 2016 , "the higher availability of funds for loans is potentially creating excess supply. 
Most of this credit is concentrated on subsidizing short -term borrowing such a s working capital and 
commercialization loans that further distort markets. A reform of the concessional credit system 
could consider a gradual downsizing of concessional loans for working capital to commercial 
producers, simplifying regulations and proced ures, and re -focusing to support on -farm investments 
that explicitly incorporate technological innovations and advanced farm management and 
environmental practices. " WT/TPR/M/358/Add.1  
 
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  Questions:   
1. Could Brazil explain how it plans to address this potential excess of supply of funds which 
distorts markets?  
Brazil considers "the higher availability of funds for loans " alone is not capable to create excess 
supply as it has been provided, because the f unds are not allocated for any specific product and 
other factors must be present to this end.  
2. Does Brazil plan to reform the concessional credit to support on -farm investments that 
explicitly incorporate technological innovations and advanced farm managem ent and 
environmental practices?  
The concessional credit to support on -farm investments is clearly is prompting the increase of the 
productivity of the sector. Furthermore, there are programs of concessional credit that are 
explicitly related to innovation  and/or environmental practices (see Table 4.4). PRONAMP, ABC 
Program, MODERAGRO, PRODECOOP, INOVAGRO and Prorenova Rural are examples of programs 
for these purposes.  
Upstream – Exploration and production (E&P) arrangements  
Page 112 (paragraph 4.51)  
It is stated that the production -sharing regime is aimed at lowering the exploration risk, 
maximizing the government take from oil production, and achieving a more equal distribution of its 
proceeds among Brazilians; revenue from production -sharing contracts is to finance education, 
poverty reduction, and environmental initiatives.  
Question:  
1.  Could Brazil elaborate on the types of environmental initiatives that are funded?  
Initially, a clarification must be made in relation to the objectives of the production sh aring 
regime. Such regime is applicable to the area of the Pre -Salt polygon, where it is understood that 
there is low geological risk and high productivity. The purpose of this regime is not to reduce the 
risk of exploration. The Social Fund, created by La w nº 12.351 of December 22 of 2010, has not 
yet been implemented by the government, which is why there is also no Deliberative Council of 
this Fund. When implemented, a process that should be headed by the Ministry of Finance, the 
allocation of resources f or the programs and projects defined as priorities under the scope of the 
Multi-Year Plan will take place. Therefore, the environmental initiatives to be financed by the Social 
Fund have not yet been defined.  
Initially, it should be noted that the purpose of the production sharing regime, as applied to the 
pre-salt area, is not to minimize exploitation risks, since the pre -salt is known for its low geological 
risk and high productivity. The Social Fund, created by Law 12,351 (December 22, 2010), has not 
yet been implemented. Once implemented, it will be governed by a special council led by the 
Ministry of Finance which will decide upon the allocation of resources for programs and projects 
defined as priorities under the scope of a Multi -Year Plan. Therefore,  the environmental initiatives 
to be financed by the Social Fund have not yet been defined.  
Manufacturing  
Pages 123 -125 (paragraphs 4.88, 4.92 and 4.93)  
On pages 123 and 124, the Secretariat Report discusses the Plano Brasil Maior (2011 -14), noting 
that th is plan aims at stimulating industrial production and technological development through 
financial and fiscal tools or incentives. According to a 2015 OECD paper entitled "State -Owned 
Enterprises in the Development Process", some Brazilian companies with ex port potential are said 
to have been singled -out by BNDES as "national champions" to be supported, including for 
instance Petrobras (oil), Vale (mining) and Embraer (airplanes).  WT/TPR/M/358/Add.1  
 
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  Questions: ( BNDES , MPDG, MDIC, DCCOM -MRE)  
1. How did and does Brazil take account of "national champions" in formulating its industrial 
policies?  
2. Can Brazil provide details on how Brazil, including BNDES, takes into account "national  
champions " in the decision -making process preceding the award of incentives, including 
financing?  
Brazil has a wide variety of competitive enterprises. Many of these companies are clients of 
BNDES, which applies a market -based approach for the provision of loans. B NDES did not provide 
any specific support for these companies, and applied the same decision -making process in all 
cases. Every company legally incorporated in Brazil that had a viable investment plan and a 
satisfactory credit rating was eligible for BNDES ' loans in equal conditions, irrespective of being 
labeled as a national champion.  
In 2016 BNDES offered support for over one hundred thousand companies. Brazil has a wide 
variety of competitive enterprises. Many of these companies are clients of BNDES, wh ich applies a 
market -based approach for the provision of loans. BNDES did not provide any specific support for 
these companies, and applied the same decision -making process in all cases. Every company 
legally incorporated in Brazil that had a viable invest ment plan and a satisfactory credit rating was 
eligible for BNDES' loans in equal conditions, regardless of being labeled as a national champion or 
the origin of its capital.  
Other Activities  
Page 129 (paragraph 4.108)  
It is noted an aeronautics industry -specific tax incentive under the RETAERO scheme remained in 
place during the review period. An Aerospace Investment Fund in Equities was also established in 
2014 to invest in the aeronautics industry 's supply chain.  
Questions:  
1. Can Brazil please provide information on the five companies and projects for which 
investments have been disbursed under the Aerospace Investment Fund in Equities?  
DDF 
Information on companies and projects for which investments have been disbursed under the 
Aerospace Investment Fun d in Equities can be found at the Fund 's website 
(http://www.fundoaeroespacial.com.br/), as well as on the website of the Comissão do Mercado de 
Valores Mobiliários (CVM), Brazil 's Securities and Exchange Commission 
(http:/ /sistemas.cvm.gov.br/?fundosreg ).  
2. Can Brazil please indicate whether it intends to notify tax incentives provided to the 
aeronautics industry under the RETAERO scheme?  
Brazil is still considering whether to notify the tax incentives provided under the RETAERO scheme, 
considering its l ack or minimal use by companies.  
Pages 129 -130 (paragraphs 4.107 and 4.108)  
The Secretariat Report discussed industry -specific support to certain sectors, including the 
aerospace industry. The report specifically mentions the RETAERO scheme and the 2014 v enture 
capital fund for the aerospace industry. However, Canada understands that in May 2013, the 
Brazilian government launched Inova Aero Defesa to support research and development in the 
aerospace and defense sectors. Under Inova Aero Defesa, business pl ans are classified on the 
basis of a number of criteria, including export potential and local content.  WT/TPR/M/358/Add.1  
 
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  Question:  
1. Could Brazil explain how export potential and local content are taken into account in the 
decision -making preceding the award of the incen tive? 
Inova Aerodefesa was a governmental program aimed at fostering technological developments in 
the Brazilian aerospace defense and security sector, with a focus in developing technological 
capabilities in certain pre -selected themes.  
 Applications for the program were evaluated by a technical committee composed by 
representatives of the governamental entities (BNDES, FINEP, MoD and Brazilian Space Agency) 
considering a number of criteria such as degree of innovation, the degree of local technological 
development and technical and commercial feasibility. Accordingly, even though the program was 
aimed at supplying solutions for domestic defense needs, export potential was only considered as 
evidence of commercial feasibility.  
Page 149 (paragraph 4.175)  
The Secretariat Report notes that Brazil maintains 102 bilateral ASAs, including open skies 
agreements with more than 49 countries.  
Question:  
1. If all Open Skies partners are grouped together, what percentage of Brazil 's overall 
international passenger traffic do they represent?  
Considering Brazil 's 2016 overall international passenger traffic (21,181,633 passengers), all Open 
Skies partners grouped together (including USA) represent 31.42% of that traffic. Since the 
agreement with the US government still needs to be ratified, all Open Skies partners grouped 
together (excluding USA) represent 18.08% of Brazil 's 2016 overall international passenger traffic.  
Page 152 (paragraph 4.184) and Page 155 (paragraph 4.199)  
In para graph 4.184, the Secretariat Report notes that ANTAQ is responsible for regulating and 
supervising, inter alia, private terminals. In paragraph 4.199, the report notes that private 
terminals are not subject to price controls.  
Question  
1. Could Brazil please e xplain ANTAQs regulatory and supervisory role vis -à-vis private 
terminals; is it limited to safety and security matters?  
ANTAQ's regulatory and supervisory role vis -à-vis private terminals is not limited to safety and 
security matters, since the Agency al so regulates economic issues related to the operation of such 
terminals. Before an authorization is granted, ANTAQ evaluates the characteristics of the project 
(engineering data, load handling, location, etc.). After the authorization is granted, ANTAQ see ks 
to ensure the execution of the contract, with emphasis on the efficiency of the services rendered, 
the mediation of conflicts, and to avoid the infringement of laws regulating economic activities.  
Page 153 (paragraph 4.189)  
The Additional Freight Charge  for the Renovation of the Merchant Navy (AFRMM), a federal tax 
levied on maritime freight, continues to be applied on the combined cost of freight and insurance 
at rates of 25% for long -distance navigation (international routes) by Brazilian and foreign s hips, 
10% for cabotage navigation, and 40% for inland waterway transportation of liquid bulk cargos in 
Brazil's north and north -east regions.  
Questions  
1. In addition to the AFRMM, does Brazil impose any port handling charges?  If so, can Brazil 
provide detail s on these charges?  WT/TPR/M/358/Add.1  
 
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  The port service takers shall pay a public fee, previously approved by ANTAQ. The purpose of this 
fee is to fund the administration of the port and paying for expenses with the operations and the 
maintenance of the port infrastructure.  
2. Could Brazil explain how the AFRMM and any additional charges are proportionate to the 
approximate cost of services rendered?  
DNS 
The AFRMM is still levied on maritime freight, which is a payment for port -to-port transportation 
and includes port handling c osts. The fees of the AFRMM are applied on a non -discriminatory basis 
regarding the flag of the vessel. The rate of the AFRMM considers the infrastructure needed for 
handling domestic or international cargo and takes into account the economic conditions an d 
market structure of the different sectors.  
Page 153 (paragraph 4.190)  
The Secretariat Report mentions that Merchant Marine Fund (FMM) finances the development of 
the Brazilian merchant fleet and shipyard industry through administered interest rate loans.  
Question  
1. Could Brazil provide some examples of conditions placed on the loans given to Brazilian 
domestic shipping companies and local shipbuilders through the Merchant Marine Fund 
(FMM)?  
One example of condition placed on the loans given through the Merc hant Marine Fund (FMM) 
refers to the use of such resources. According to Law Nº 10.893/2004, the FMM shall be used, 
inter alia, to the construction of a vessel in a Brazilian shipyard or the repair of a Brazilian flag 
vessel in a Brazilian shipyard.  
Page 1 55 (paragraph 4.197)  
According to the Secretariat Report, a new Port Law, which regulates direct and indirect public use 
of ports and their installations along with activities deployed by port agents, was enacted in 2013 
to raise competitiveness, increase competition, and promote the development of the sector. The 
main changes under the new Law included the centralization of port planning at SEP, the release of 
private terminals for the handling of third -party cargos and the transformation of the CAPs from 
deliberative to consultative bodies.  
Question  
1. Could Brazil clarify what the "consultative " functions of the Port Authority Councils (CAP) 
are under the new law; specifically, what does that entail and what influence do they have 
(if any) on the strategic p lanning for the national port system?  
The "consultative " functions of the Port Authority Councils (CAP) are established on article 36, 
paragraph 1, of the Decree No. 8.033/2013. According to such provision, the Councils can suggest, 
inter alia, amendments to port operation regulations, amendments to the port development plan, 
actions to promote the rationalization of the use of port facilities, measures to promote the 
industrial and commercial activities of the port, measures to stimulate competitiveness an d other 
measures and actions of interest to the port. The Councils no longer make decisions on the 
strategic planning for the national port system. Such authority is now assigned to the Ministry of 
Transports, Ports and Civil Aviation.  
Page 157 (paragraph 4.204)  
Brazil has no de minimis rule whereby goods below a certain value are exempt from customs 
duties and taxes. Virtually all international e -purchases are subject to a 60% flat/single 
equalization tax on the purchase price covering/compensating customs  duty and other internal 
taxes/charges on imports. Certain medicines (upon submission of specific documentation) and WT/TPR/M/358/Add.1  
 
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  printed books or periodicals are the only exceptions to these tax requirements. An exemption 
(excluding the ICMS tax) for packages valued a t US$50 or less applies only to remittances issued 
by an person to another person for personal use or gifts of lower value but not for commercial 
operations. A Simplified Taxation Regime applies to goods not exceeding US$3,000.  
Questions  
1. Could Brazil prov ide information on the 60% tax levied on e -purchases, including the 
procedures used to determine how the tax is applied?  
In addition to the regular system of taxation, based on MERCOSUR Common External Tariff, 
optionally the imports through postal or cour ier services can be levied at a flat rate of 60%. This 
tariff replaces all federal taxes normally levied on regular imports, and the taxable base is the 
customs value of the goods (CIF bases) regardless of the tariff classification of the goods (they 
don't need to be classified).  
2. How does Brazil distinguish between goods purchased electronically and goods purchased 
through other means (e.g. over the telephone)?  
There is no distinction between imported goods regarding the way they were purchased.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPOR T 
General Economic Environment  
Government Procurement  
Page 11 (paragraph 2.2.4)  
The report notes that "Brazil has a decentralized procurement system. Federal, State and 
Municipal authorities can make public purchases, in accordance with the Bidding Law (Law 8.666 
of 1993), which provides for 5 types of bid proceedings that can be used by agencies and public 
entities: open tendering; price consultation; invitation; contest; and public auction. According to 
the general Law, public entities cannot establish differential treatment between Brazilian and 
foreign companies. For procurement of common goods and services, reverse auction ("Pregão") 
has been consolidated as the most popular modality, performed mostly by electronic means, 
having enhanced the efficiency and transparency of Brazil's procurement system. "  
Question  
1. Are guidelines available to help provide foreign -based bidders with advice on the use of the 
5 types of bid proceedings that can be used by agen cies and public entities? If yes, can 
Brazil pr ovide the links to access them?  
Legislation and guidelines are available at 
www.comprasgovernamentais.gov.br/index.php/legislacao and guidebooks are available in 
http://www.comprasgovernamentais.gov.br/index.p hp/publicacoes2 (both in Portuguese) . 
TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK  
Technical regulations and standards  
Page 20 (paragraph 4.7)  
The report notes that Brazil has "bilateral cooperation initiatives on technical regulations " with a 
number of li sted countries.  
Questions  
1. Could Brazil provide more information on its bilateral cooperation initiatives on technical 
regulations? Are the details, such as terms of references, of these initiatives available to 
other WTO Members? Could Brazil share the goa ls and specific results of these initiatives?  WT/TPR/M/358/Add.1  
 
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  The bilateral cooperation initiatives on technical regulations led by INMETRO with foreign 
counterparts usually involve exchange of information, training and best practices. Taking the 
format of Memoranda of U nderstanding, the terms of reference of these initiatives are built on the 
common goals of (i) building consumer product inform ation exchange mechanisms; 
(ii) strengthening communication on consumer products safety laws, regulations and policies; 
(iii) exchanging information in the field of conformity assessment, consumer safety, market 
surveillance and accreditation and hold relevant events, such as workshops, seminars etc.; 
(iv) exchanging experts, officials and professionals to carry out specific prog rams of mutual 
cooperation. These initiatives have been very successful in terms of benchmarking processes and 
exchanging knowledge on good regulatory practices . 
2. How do these bilateral initiatives work with Brazil 's regulatory harmonization efforts with 
other MERCOSUR members?  
None of the bilateral cooperation initiatives led by INMETRO involve harmonization of technical 
regulations with countries outside Mercosur, so there is no particular impact on this activity. Our 
cooperation instruments serve the pur pose of improving regulatory practices though exchange of 
information and best practices.  
Trade Facilitation  
Page 20 (paragraph 4.9)  
Regarding the "Programa portal Único de Comércio Esterior ", the report states that the initiative 
aims at streamlining all import, export and transit routines.  
Question   
1. Are there plans to also streamline and integrate all regulations applying to foreign direct 
investment into the tool?  
There is no relation between FDI and the Program insofar as the latter is related to a single 
window type system.  
Intellectual property  
Page 25 (paragraph 4.40)  
New PPH pilot programs are being negotiated. Together with PPH pilot programs, actions on patent 
priority exams were in place in 2016. The first one consists of transforming the Gree n Patents pilot 
program into a definitive service offered by INPI, making it possible to prioritize patent 
requirements regarding the environment and green technologies. The second action is a pilot 
project that allows small businesses, the financial resou rces of which are generally reduced, to 
have their patent requirements prioritized.  
Questions  
1. Regarding the second action, would Brazil please elaborate on what it would mean to have 
the patent requirements of these small businesses prioritised? Specifical ly, could Brazil 
provide examples of "requirements" and better define "prioritised"?  
The "MPE" Patents Pilot Project is a priority examination modality. Patent applications eligible to 
participate are those whose applicant is a Micro Enterprise (ME) or a S mall Business (EPP), as 
defined in art. 3 of Complementary Law No. 123, of 12/14/2006.  They are prioritized as they have 
a different waiting queue of other kind of applications, which renders shorter the period of time to 
be examined.  
Phase I of the Proje ct began on February 23, 2016 and was closed one year later. INPI established 
phase II of the Project through INPI Resolution No. 181 of Febr uary 21, 2017, published in 
RPI 2408, on March 1, 2017. The resolution presented some modifications for this phase of the 
"MPE" Patent Pilot Project, highlighting:  WT/TPR/M/358/Add.1  
 
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  - Application exclusively by electronic form;  
- Exclusion of patent applications examined by technical divisions with a high number of priority 
examination requirements in relation to their decisions, in particular Mechanical Engineering;  
- Participation of up to 150 patent applications.  
Renewable Energy  
Page 28 (paragraph 4.66)  
The Report indicates that only 30% of Brazil's hydroelectric potential has been exploited. The 
potential for increased production o f this renewable and affordable energy source is an integral 
part of the country's long -term strategy for the sector.  
Question  
1. Could Brazil elaborate on its plans to increase production of hydroelectric power?  
By the end of 2016, Brazil had 96.9 GW of hydraulic power in operation, corresponding to 65% of 
the total installed capacity. For the next ten years, it is expected that about 15 GW will start 
operating, with more than 70% already contracted. Thus, by the end of 2026, the installed 
capacity should reach close to 112 GW, including large and small hydroelectric plants.  
The Brazilian hydroelectric potential technically exploitable is of about 260 GW. However, in 
consideration of social -environmental issues, the implementation of new hydroelectric plants has 
been analyzed taking into consideration the possibility of direct interference (overlap) of each new 
installation with legally protected areas. Thereby, hydroelectric projects may eventually be 
classified as projects with interference in conservation units (UC), indigenous lands (TI) and 
'quilombola' lands (TQ). This classification allows the elaboration of scenarios with different 
environmental complexity levels, which result in different values of hydroel ectric potential to be 
exploited in the future.  
In a conservative scenario, there is the perspective that about 38 GW can be expanded from 2027 
to 2050, being 1/3 of small plants. In this context, the installed hydraulic capacity would reach 
150 GW by 2050 . 
Page 29 (paragraph 4.67)  
The Report indicates that Brazil also considers bioenergy, including biofuels, an indispensable tool 
for the expansion and diversification of the energy matrix. Nowadays, biomass electricity – 
generated mostly from sugarcane proc essing plants – accounts for about 8.8% of Brazil's total 
electricity energy supply. By 2024, biomass, wind and solar generation are expected to supply 
20.7% of the country's electricity energy needs. In the transportation sector, the use of ethanol 
and bi odiesel plays a key role in the pursuit of sustainable development, climate change mitigation 
and energy security. The Brazilian case shows that the long term and large scale sustainable 
production and use of biofuels are possible, and Brazil continues to work towards the creation of 
an international market for biofuels.  
Question  
1. Could Brazil elaborate on what it means when it indicates that it "continues to work 
towards the creation of an international market for biofuels "? 
In many countries, the developm ent of biofuels and bioenergy in general will be key to achieve the 
environmental goals established under the Paris Agreement. When implemented properly, 
bioenergy can contribute positively to reinforce the pillars of sustainable development, be they 
econo mic, social, or environmental.  
Brazil believes that advances in the use of renewable energy can be accelerated by cooperation 
and exchange of experiences and has firmly acted towards the development of clean and WT/TPR/M/358/Add.1  
 
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  renewable energy internationally. At the mul tilateral level, Brazil contributes to various initiatives 
and organizations, such as the UN initiative "Sustainable Energy for All" (SE4ALL), the Clean 
Energy Ministerial (CEM), the Global Bioenergy Partnership (GBEP) - which Brazil co -chairs, along 
with Italy -, the G20 Energy Sustainability Working Group (ESWG) and, more recently, the 
Biofuture Platform.  
Brazil has also developed bilateral and trilateral cooperation projects with developed and 
developing countries in various fields. Every year, technical  delegations visits from third countries 
are received in Brazil with the goal, for example, to disseminate the Brazilian experience in 
bioenergy. The expertise of Brazilian companies in the field of bioenergy is valued and sought 
abroad in many countries. This is why Brazil reaffirms its strong commitment in working towards 
the dissemination of the sustainable production and use of biofuels.  
Page 29 (paragraph 2.15)  
A working group, coordinated by Casa Civil and composed of public servants with previous 
experience in regulatory impact assessments (RIAs) from all federal regulatory agencies, was 
created to elaborate a decree introducing the general standards for RIAs at federal level.  
Questions  
1. Is the decree referenced above available publicly?  
No, the draft decree is not available publicly yet.  
2. Are considerations with regards to the impact of regulations on foreign direct investment 
included in the RIAs?  
The impact of regulations, both domestically and internationally, will be addressed in the RIA 
Guidelines that will be also issued.  
  WT/TPR/M/358/Add.1  
 
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  CHILE  
Informe: WT/TPR/S/358 - Brasil (informe de Secretaría)  
2.6 Régimen de inversión extranjera  
Párrafo 2.33, pág. 45  
"El Brasil mantiene su apertura y fomenta la inversión extranjera directa (IED), que está presente 
en toda su economía a pesar de las limitaciones a la propiedad extranjera que afectan a 
determinados sectores. Pese a que en 2015 las entradas de IED disminuyeron debido a la recesión 
económica y la agitación política, las enormes oportunidades de mercado que encierra el Brasil han 
preservado su posición como el destino más atractivo para las inversiones en América Latina y el 
Caribe, acumulando el 42% del monto total recibido por la región. Aunque se hayan realizado 
algunas mejoras, parece ser que la reali zación de proyectos de inversión en el Brasil sigue 
resultando gravosa, burocrática y costosa, debido a la rigidez de las condiciones para poder abrir o 
cerrar un negocio, la gran cantidad de trámites necesarios y su elevado costo. La carga tributaria y 
la rigidez del mercado laboral también siguen constituyendo un problema. " 
Pregunta : El párrafo indicado señala que Brasil mantiene su apertura y fomenta la inversión 
extranjera directa (IED) a pesar de las limitaciones a la propiedad extranjera que afectan a  
determinados sectores. Al respecto, Chile agradecería informar cuáles son los sectores 
"determinados " que se ven afectados por limitaciones a la propiedad extranjera y cuáles son las 
restricciones a la propiedad extranjera que aplican a dichos sectores.  
Foreign capital may freely enter Brazil and is not subject to prior approval by the government and 
there are no conditions in respect of the total amount of investment that can be made in Brazil, 
with a small number of exceptions, such as:  
Prohibitions (st ate monopoly):  
 Activities involving nuclear energy;  
 Certain postal activities and telegraph services.  
Restrictions: In the following sectors, foreign capital may be subject to limitations or may require 
previous authorization from public authorities:  
 Acqu isition or rental of rural property.  The Acquisition or rental of rural property may 
require authorization. For national security reasons, limitations are applied to the acquisition of 
property alongside border areas;  
 Financial institutions.  Restrictions are also applied to the participation of foreign capital in 
financial institutions, although these restrictions are very often waived in light of 
considerations regarding the national interest. There are many foreign banks operating in 
Brazil .  
 Air transportation companies.  The operation of passenger air transportation services is 
subject to concession – under current legislation a concession contract can only be awarded to 
Brazilian -registered companies in which at least 80% of the voting cap ital is in the hands of 
Brazilians. Moreover, entry of foreign capital is capped at 20% of ordinary shares in the 
company.  
 Media (including television networks, magazines, newspapers and radio 
broadcasting stations).  The legislation stipulates that at leas t 70% of the total capital of 
media companies must be owned directly or indirectly by Brazilians born in Brazil or 
naturalized for more than ten years.  WT/TPR/M/358/Add.1  
 
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  3.1.6 Medidas antidumping, compensatorias y de salvaguardia  
Párrafo 3.53, págs. 66 -67 
"El marco instituc ional del Brasil por el que se rigen las medidas comerciales correctivas no sufrió 
cambios durante el período objeto de examen. La SECEX (del Ministerio de Desarrollo, Industria y 
Comercio Exterior), por conducto de su Departamento de Defensa Comercial (DE COM), se sigue 
ocupando de realizar las investigaciones en materia de derechos antidumping, compensatorios o 
de salvaguardia (esto es, de la recopilación y el análisis de los datos correspondientes). El proceso 
de adopción de decisiones sobre la aplicación  y modificación de las medidas comerciales 
especiales, así como sobre la situación del mercado de la economía exportadora, siguen siendo 
competencia del Consejo de Ministros de la Cámara de Comercio Exterior (CAMEX), que toma en 
consideración las recomenda ciones del DECOM. La CAMEX puede imponer derechos provisionales 
sobre las importaciones a partir de la fecha de su determinación preliminar. El Grupo Técnico de 
Evaluación del Interés Público (GTIP), establecido por la CAMEX en 2012, sigue encargándose de 
examinar las solicitudes de suspensión o modificación de las medidas provisionales o definitivas 
por motivos de interés público. En 2015 el plazo de los exámenes realizados por el GTIP se amplió 
de cuatro a seis meses (renovable una sola vez por un plazo i déntico). " 
Pregunta : Con respecto a la mención de que CAMEX estableció en 2012 el Grupo Técnico de 
Evaluación del Interés Público (GTIP) el cual se encarga "de examinar las solicitudes de suspensión 
o modificación de las medidas provisionales o definitivas  por motivos de interés público ", Chile 
agradecería a Brasil proveer mayor información sobre el funcionamiento del GTIP, en especial 
respecto a cómo éste toma la decisión de iniciar una revisión, además de las consideraciones 
especiales que toma en cuenta en sus recomendaciones o decisiones.  
Las solicitudes de suspender o modificar medidas deben presentarse a la Secretaría de Asuntos 
Internacionales del Ministerio de Hacienda, que actúa como secretaría del y debe basarse en 
elementos de hecho y de derecho.  Además, cualquier miembro del GTIP u otros órganos de la 
administración federal puede solicitar al GTIP una evaluación de cualesquiera medidas definitivas o 
investigaciones en curso. El GTIP dispone de seis meses para presentar sus conclusiones a la 
CAMEX , plazo que puede prorrogarse por otros seis meses solo una vez, consignando en sus actas 
el fundamento y los motivos de su recomendación. Esta sigue para la consideración de la CAMEX, 
a cual pude aceptar o no la conclusión del GTIP aprobando o no aproband o la suspensión o 
modificación indicada.  
Para las recomendaciones o decisiones de interés público, sea por el GTIP, sea por la CAMEX, son 
consideradas: como línea general una evaluación de costo -beneficio previsto en el art. 3º, del 
Anexo la Resolución CAMEX nº 29, de 7 de abril de  2017, "Para fi nes de esta resolución, está 
presente el interés público, cuando el impacto de la imposición de la medida de defensa comercial 
sobre los agentes económicos como un todo se demostrar potencialmente más dañoso se 
comparado a los efectos positivos de la aplic ación de la medida ". El párrafo 1 del mismo art. 3, 
indica elementos propios a ser considerados en el análisis, entre otros: " El impacto en la cadena 
downstream y upstream, la disponibilidad de productos substitutos en orígenes no afectadas por la 
medida de defensa comercial, la estructura del mercado y la competición, y la adecuación a las 
políticas públicas vigentes.  
Párrafo 3.58, pág.68  
"El Brasil ha presentado regularmente informes semestrales sobre las medidas antidumping y 
compensatorias a los comit és competentes de la OMC. Pese a la tendencia descendente de las 
investigaciones iniciadas durante el período objeto de examen, la incidencia de las medidas 
comerciales correctivas del Brasil, sobre todo de las medidas antidumping, casi se duplicó (cuadro 
3.7). A finales de diciembre de 2016 había 161 medidas antidumping definitivas (incluidos seis 
compromisos en materia de precios) en vigor en el país, frente a 87 medidas (incluidos cinco 
compromisos en materia de precios) en 2012. Durante este período, el  Brasil inició cuatro 
investigaciones en materia de derechos compensatorios, una de las cuales (importaciones de 
película de PET procedentes de la India) dio lugar a la imposición de derechos definitivos. No se 
iniciaron investigaciones en materia de salva guardias y no se impusieron medidas de salvaguardia 
en el Brasil entre enero de 2013 y enero de 2016. A finales de 2016, 44 medidas comerciales 
correctivas llevaban más de cinco años en vigor en el Brasil. Según las autoridades, la proporción WT/TPR/M/358/Add.1  
 
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  de las import aciones totales de mercancías del Brasil afectadas por medidas comerciales 
correctivas fue del 0,76% en 2013, el 0,79% en 2014, el 0,93% en 2015 y el 1,06% en 2016. "  
Pregunta : Con respecto a la duplicación de las incidencias de las medidas comerciales cor rectivas, 
Chile agradecería a Brasil indicar si ha considerado revisar su normativa respecto de las revisiones 
de sus medidas antidumping.  
The antidumping legislation has already been revised with the advent of Decree 8,058 of 2013 and 
all the regulations that detail the respective procedures. The increase in the stock of trade 
measures in force in Brazil, however, is not related to procedure s adopted in sunset reviews. 
Instead, it should be noticed that there was an increase in the demand for new trade remedy 
investigations among Brazilian domestic producers in the period of 2011 -2013, which explains why 
the stock at the end of 2016 is substa ntially higher than in 2012.  
It should be noticed that the new Antidumping Regulations establish more detailed rules regarding 
reviews, which has enhanced the transparency and predictability of the investigations. In this 
sense, the burden of proof on pet itioners willing to get the extension of duties, especially in sunset 
reviews, is higher now compared to the former regulations.  
3.3.4 Política de competencia y controles de precios  
3.3.4.1 Política de competencia  
Párrafo 3.161, pág. 95  
"De conformidad c on el principio del efecto, común a muchas jurisdicciones, el régimen de 
competencia del Brasil no se aplica a las prácticas anticompetitivas orientadas a la exportación 
(incluidos los cárteles) que no tienen ningún efecto en el mercado interno; tampoco se  aplica a la 
concesión de ayudas públicas o de un trato fiscal preferencial por el Gobierno Federal y los 
gobiernos subfederales. El CADE y los organismos reguladores especializados del Brasil tienen 
competencias complementarias en sectores regulados; el C ADE la tiene en asuntos relacionados 
con la competencia, mientras que los organismos reguladores especializados se ocupan de dictar 
resoluciones basadas en la normativa correspondiente. Entre 2013 y 2016 el CADE celebró 
acuerdos de cooperación técnica con el Organismo Cinematográfico Nacional (ANCINE), la ANVISA 
y la Agencia Nacional de Petróleo, Gas Natural y Biocombustibles (ANP). El CADE no ha establecido 
un mecanismo permanente para controlar los acuerdos de pago para evitar o demorar la entrada 
de prod uctos competidores al mercado (pay for delay). "  
Preguntas : Con respecto a la mención de que "el régimen de competencia del Brasil no se aplica 
a las prácticas anticompetitivas orientadas a la exportación (incluidos los cárteles) que no tienen 
ningún efect o en el mercado interno ", Chile agradecería a Brasil aclarar si es que la exclusión de 
dichas prácticas se establece de manera explícita en la normativa o es una no -aplicación de facto.  
Adicionalmente el párrafo menciona que, además de las prácticas mencionadas, se excluyen del 
régimen de competencia las concesiones "de ayudas públicas o de un trato fiscal preferencial por 
el Gobierno Federal y los gobiernos subfederales ." En este context o, Chile agradecería aclara si el 
CADE tendría la facultad de recomendar alguna fórmula de concesiones o de trato fiscal, la cual 
tome en cuenta consideraciones de competencia.  
De acuerdo con el Artículo 2 de la ley brasileña de competencia, Ley 12.529/20 11, la normativa se 
aplica a las prácticas ocurridas en territorio nacional o en parte del territorio nacional o aún que 
hayan producido efectos en él o que puedan producir efectos en él. La exclusión de la jurisdicción 
del CADE de las prácticas anticompet itivas orientadas a la exportación que no tienen ningún efecto 
en el mercado interno se establece, por lo tanto, de manera explícita en la legislación brasileña.  
El CADE no tiene la facultad de recomendar fórmulas relativas a la competencia cuanto a las 
concesiones o al trato fiscal.  WT/TPR/M/358/Add.1  
 
- 46 - 
 
  3.3.6 Contratación pública  
Párrafo 3.174, pág. 99  
"El Brasil no es parte ni observador en el Acuerdo plurilateral sobre Contratación Pública de la OMC 
(ACP). El Acuerdo de Expansión Económica y Comercial entre el Brasil y el Pe rú, firmado en abril 
de 2016, contiene un capítulo dedicado a la contratación pública. El Brasil participa en las 
negociaciones en curso sobre el Protocolo de Contrataciones Públicas del MERCOSUR, así como en 
las negociaciones de un acuerdo de libre comerc io entre el MERCOSUR y la UE, que también 
incluyen un capítulo sobre la contratación pública. " 
Pregunta: Respecto al Acuerdo de Expansión Económica y Comercial firmado entre Brasil y Perú, 
Chile agradecería a Brasil indicar cuales son las características d el Capítulo sobre Compras Públicas 
del mencionado acuerdo.  
Public procurement commitments in the agreement are based in principles such as transparency, 
non-discrimination and market access.  
Párrafo 3.175, pág. 99  
"El sistema descentralizado del Brasil consta de jurisdicciones independientes de contratación 
pública, a todos los niveles de gobierno, que comparten un conjunto de normas comunes dictadas 
por el Gobierno Federal. Los elementos comunes se definen principalmente en la Ley de 
Licitaciones, de 19 93, e incluyen disposiciones en materia de transparencia, métodos de 
contratación, exenciones y recursos de apelación. Las normas comunes también se aplican a las 
empresas controladas por el Estado (públicas o mixtas) en todos los niveles de gobierno, exce pto 
a aquellas que están sujetas a regímenes específicos de contratación establecidos por las 
autoridades en la jurisdicción de constitución correspondiente. En el nivel federal, sigue en vigor 
un régimen de contratación pública específico para PETROBRAS, establecido mediante un decreto 
presidencial. En 2016 se adoptaron una serie de normas y directrices uniformes para las 
operaciones de contratación pública realizadas por empresas con participación pública a todos los 
niveles de gobierno, como parte de una  iniciativa más amplia cuyo objetivo era reforzar la 
gobernanza de esas empresas. PETROBRAS deberá adaptarse a este nuevo marco antes del 30 de 
junio de 2018 ." 
Pregunta : Con respecto a compras gubernamentales , en su legislación Brasil consagra medidas 
comp ensatorias especiales denominados Offset. Al respecto, Chile agradecería a Brasil indicar con 
qué frecuencia se utilizan las mencionadas medidas, sus montos, o umbrales si es que existen, y 
en qué sectores económicos se aplican.  
Like the majority of WTO´s  members, Brazil usually uses offsets for defense and national interest 
purposes.  
Párrafo 3.177, pág. 99  
"La legislación del  Brasil prevé el uso de seis métodos de contratación: licitación pública 
(concorrência); consulta de precios (tomada de preços); invitación (convite); concurso (concurso); 
subasta pública (leilão); y subasta inversa (pregão). En general, los métodos de con tratación 
admisibles y las aprobaciones exigidas dependen del valor y la naturaleza del objeto que se licita. 
La subasta inversa, ya sea electrónica o in situ, es el procedimiento principal de adjudicación de 
contratos de bienes y servicios comunes. Más de l 99% de las subastas inversas del período 
2013-2016 se llevaron a cabo electrónicamente. " 
Pregunta : Con respecto a los métodos de contratación mencionados, Chile agradecería a Brasil 
indicar si alguno de ellos son excepcionales a la licitación pública.  
All methods mentioned are competitive. None of those methods is an exemption to the tendering 
process.  WT/TPR/M/358/Add.1  
 
- 47 - 
 
  Párrafo 3.179 y 3.180, pág. 100  
"La política de contratación pública del Brasil se sigue centrando en conseguir la oferta más 
ventajosa, garantizar la i gualdad ante la ley y promover el desarrollo nacional sostenible. En la 
adjudicación de contratos podrá darse preferencia a los bienes y servicios: i) producidos en el 
Brasil; ii) producidos o suministrados por empresas brasileñas; y iii) producidos o sumi nistrados 
por empresas que inviertan en desarrollo tecnológico en el Brasil. El trato preferencial puede 
traducirse en contingentes, márgenes de preferencia y procedimientos de licitación totalmente 
circunscritos a las pequeñas empresas radicadas en el Bra sil. Existen disposiciones específicas que 
regulan las preferencias aplicables a las microempresas y pequeñas empresas (mypes), así como a 
los bienes y servicios producidos en el país de conformidad con las normas técnicas brasileñas. 
Según las autoridades , las jurisdicciones subfederales no pueden establecer disposiciones 
adicionales en materia de trato preferencial.  
"Las disposiciones federales relativas al trato diferenciado simplificado otorgado a las mypes se 
aplican a todos los niveles de la administr ación pública, a menos que las leyes subfederales o la 
reglamentación específica de una empresa u entidad prevean condiciones más favorables. 
Concretamente, la entidad contratante debe reservar la licitación de contratos por valor de hasta 
80.000 reales a las mypes, puede exigir que cuando se contraten obras y servicios las actividades 
de subcontratación se confíen a mypes, y debe establecer cupos de hasta el 25% para estas 
empresas en la adquisición de bienes de carácter fraccionable. " 
Pregunta : Teniendo presente las preferencias destacadas en los párrafos, que Brasil otorga a sus 
proveedores, bienes y servicios nacionales, Chile agradecería a Brasil indicar de qué forma ello se 
condice con la aplicación y respecto del Principio de Trato Nacional en sus acuerdos de 
contrataciones públicas.  
With the exception of specific provisions applied to small and micro enterprises due to the entry 
into force of bilateral commitments on public procurement, should there be any preference 
margins in force, Brazi l will not apply them against its counterparts ' goods and services and 
counterparts ' suppliers offering such goods and services in covered public procurement.  
Párrafos 3.181 y 3.183, págs. 100 -101 
"La Comisión Interministerial de Contratación Pública (CI -CP) sigue a cargo de la formulación de 
propuestas que detallen los criterios de admisibilidad y los márgenes de preferencia recomendados 
para determinados tipos de bienes y servicios producidos en el país. Estas propuestas deben 
aprobarse mediante un decret o presidencial. En su análisis, la CI -CP debe tener en cuenta diversos 
factores, como la generación de puestos de trabajo e ingresos, el efecto en la renta fiscal, y el 
desarrollo y la innovación tecnológicos realizados en el Brasil; los márgenes de prefer encia pueden 
ascender al 25% como máximo. Como regla general, se consideran productos nacionales los 
producidos de acuerdo con los criterios del Proceso Productivo Básico (PPB) (sección 3.3.1.1) o con 
las normas de origen establecidas por el Gobierno Feder al, que deben cumplir las normas mínimas 
del MERCOSUR. Los servicios nacionales son aquellos que se prestan en el territorio del Brasil, en 
las condiciones que determine el Gobierno. Según las autoridades, el origen de los proveedores no 
se halla entre los  criterios que se han de cumplir para beneficiarse de las preferencias. El margen 
de preferencia se calcula tomando como base la oferta de menor precio entre todas las que no son 
acreedoras a un trato preferencial.  
(…) 
Además de aplicar los márgenes de pre ferencia establecidos, las entidades contratantes pueden 
restringir determinadas licitaciones de contratación a los bienes y servicios desarrollados en el 
Brasil y producidos de acuerdo con el PPB. Esas restricciones se pueden aplicar a los contratos 
cuyo objeto sea la aplicación, el mantenimiento y el desarrollo de sistemas de información y 
comunicaciones considerados estratégicos por el Gobierno. Actualmente, estas medidas pueden 
utilizarse en los procedimientos de licitación en el marco del Plan Nacional  de Banda Ancha 
(PNBL) " 
Pregunta : Con respecto a al Proceso Productivo Básico (PPB), Chile agradecería indicar cuales son 
los criterios que establece el mencionado proceso para determinar si el producto es originario de WT/TPR/M/358/Add.1  
 
- 48 - 
 
  Brasil, junto con aclarar si la apli cación del PPB se podría entender cómo una regla de origen no 
preferencial en las contrataciones públicas, de la forma que señala el Acuerdo de Reglas de Origen 
OMC.  
Since there are no preference margins in force, PPB -based rules of origin do not apply to  public 
procurement.  
Párrafo 3.186, pág. 102  
"Los datos recopilados por las autoridades federales no incluyen el gasto público realizado a nivel 
de los estados y las municipalidades, debido al carácter descentralizado del sistema de 
contratación pública de l Brasil. La OCDE estima que el gasto total en concepto de contratación 
pública equivalió al 8,2% del PIB del Brasil en 2014, con un gasto del Gobierno Federal, los 
gobiernos de los estados y los gobiernos locales equivalente al 1,8%, el 2,8% y el 3,6% del  PIB 
respectivamente " 
Pregunta : Chile agradecería a Brasil indicar si existe alguna estimación del gasto en compras 
gubernamentales cómo % del PIB de Brasil, referido a nivel estadual y municipal.  
Brazil does not have an official estimation, but some independent studies2 estimate that 
government procurement expenditure at the sub -federal level is close to 6% of Brazilian GDP.  
3.3.7 Derechos de propiedad intelectual  
3.3.7.1 Panorama general  
Párrafo 3.187, pág. 102  
"La legislación brasileña abarca todos  los principales aspectos contenidos en el Acuerdo sobre los 
ADPIC. En algunos ámbitos, incluido el derecho de autor, el Brasil otorga derechos que exceden los 
períodos mínimos estipulados en dicho Acuerdo. Durante el período objeto de examen se han 
introd ucido diversos cambios legislativos que afectan a la protección de la propiedad intelectual 
(cuadro 3.22). Las respuestas del Brasil a la lista de cuestiones relativas a la observancia datan del 
año 2000, y su legislación fue examinada por el Consejo de lo s ADPIC en 2001.El Brasil no ha 
presentado actualizaciones de sus notificaciones en relación con las modificaciones introducidas en 
su legislación desde 2001. La legislación que no se ha notificado al Consejo de los ADPIC 
comprende leyes relativas a las ma terias siguientes: topografías de circuitos integrados; gestión 
colectiva del derecho de autor (modificación); acceso a los recursos genéticos y los conocimientos 
tradicionales asociados y participación en los beneficios que se derivan de estos; y principi os, 
garantías, derechos y obligaciones en relación con el uso de Internet en el Brasil. " 
Pregunta : Teniendo presente que Brasil es signatario del Protocolo de Nagoya, Chile agradecería 
a Brasil indicar cómo ha incorporado dicho Protocolo en el ámbito de la  propiedad intelectual, en 
especial lo que dice relación con la divulgación de origen.  
 Brasil todavía no ha ratificado el Protocolo de Nagoya, y por eso, no le ha incorporado en el 
ámbito de la propiedad intelectual.  
Párrafo 3.188, págs. 102 -103 
"A enero  de 2017, el Brasil era parte en 14 de los 26 tratados administrados por la Organización 
Mundial de la Propiedad Intelectual (OMPI); asimismo, había ratificado el Tratado de Marrakech 
para las personas con discapacidad visual en diciembre de 2015. Según la s autoridades, está en 
curso el proceso de ratificación nacional del Protocolo de Madrid. " 
Pregunta : Respecto a la mención de que Brasil se encuentra en proceso de ratificación del 
Protocolo de Madrid, Chile agradecería aclarar en qué etapa específicamente  se encuentra el 
proceso de ratificación a ese tratado.  
                                                
2 Further information can be found in the study "Measuring the Brazilian Government procurement 
market" written by Cássio Garcia Ribeiro and Edmundo Inácio Júnior, available at: 
http://www.esaf.fazenda.gov.br/assuntos/biblioteca/cadernos -de-financas -publica s. WT/TPR/M/358/Add.1  
 
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  The instrument of ratification of Brazil to the Protocol Relating to the Madrid Agreement 
Concerning the International Registration of Marks was submitted to the National Congress on 
June 21st, 2017. In order to comply with the requirements of the Protocol  and to improve the 
timeliness of applications for registration, INPI has increased the number of trademark examiners 
from 51 to 151, including newly hired examiners in January and April 2017, almost reaching a 
threefold growth in comparison with 2013 figu res. Additionally, INPI has developed a number of 
systems in order to streamline its internal processes, eliminate unnecessary bureaucracy and 
increase the productivity of examiners.  
Cuadro 3.22, págs. 103-105: Legislación nacional  sobre derechos de propi edad 
intelectual, 2017  
Preguntas : Con respecto a la información sobre patentes indicada en el cuadro (pág. 103), Chile 
agradecería a Brasil indicar mayor información sobre la aprobación previa de ANVISA contemplada 
en la legislación N° 10.196/2001. En particular ¿qué requisitos verifica AN VISA? En el caso que la 
solicitud cumpla con los requisitos de novedad, nivel inventivo y aplicación industrial pero ANVISA 
no entregue una aprobación previa, ¿qué ocurre con la solicitud de patente?  
La Portaría Conjunta ANVISA/INPI N. 001/2017 reglamenta  el art. 229 -C de la Ley nº. 9279/1996. 
De acuerdo con dicha Ordenanza, ANVISA debe examinar el riesgo a la salud en solicitudes de 
patente (es decir, verificar si hay sustancias proscritas en su ámbito). Este examen encuentra su 
fundamento en Art. 27.2 de  los ADPIC. ANVISA también podrá ofrecer consideraciones 
preliminares sobre el cumplimiento de los demás requisitos de patentabilidad, aunque tales 
consideraciones no sean vinculantes para INPI. Es importante resaltar que ANVISA no negará su 
anuencia a una  solicitud de patente por el incumplimiento de los demás requisitos de 
patentabilidad.  
Con respecto a la información sobre indicaciones geográficas indicada en el cuadro (pág. 104), 
Chile agradecería a Brasil indicar si la instrucción normativa N°25/2013 c ontempla las solicitudes 
de indicaciones geográficas extranjeras.  
In Brazil, geographical indications are divided as indication of source or a denomination of origin. 
Both are defined in the Industrial Property Law (Law nº 9.279/1996), under Articles 177 a nd 178. 
The protection of a GI in Brazil requires that a registration procedure be followed in the National 
Institute of Industrial Property (INPI). The conditions for registration of geographical indications in 
INPI are established in its Normative Instru ction n° 25/2013. As required by Article 4 of the TRIPS 
Agreement, GI protection is available for both national and foreign applicants.  
Con respecto a la información sobre exclusiones y limitaciones de derecho de autor y derechos 
conexos (pág.104), Chile a gradecería a Brasil indicar si existen criterios normativos o decisiones 
judiciales o administrativas que permitan determinar cuándo una reproducción es considerada 
temporal.  
According to the law, the reproduction of a work may be considered "temporary " when it has the 
sole purpose of making the work perceptible in an electronic mean (article 30 of the Copyright 
Act). There is no leading case on the subject.  
En relación la protección contemplada para la información no divulgada, de 10 o 5 años según 
corresponda (pág. 105), Chile agradecería a Brasil indicar qué facultades entrega al titular de la 
información no divulgada, junto con aclarar si la ANVISA puede e stablecer excepciones a dichas 
facultades.  
La Ley nº 10.603/2002, que dispone sobre la protección de información no divulgada sometida 
para aprobación de la comercialización de productos, no es aplicable a la información relacionada a 
los productos farmac éuticos para uso humano, que tiene su propio sistema de protección basado 
en el Art. 195, XIV, de la Ley nº 9.279/1996. El Art. 195 de la Ley nº 9.279/1996 prevé las 
conductas calificadas como competencia desleal.  
Adicionalmente, en relación con los proced imientos contemplados por la ley N° 9.279 /1996, 
cuando estos afectan a la información no divulgada, Chile agradecería indicar si dichos 
procedimientos contemplan decisiones de autoridades administrativas, o las medidas deben ser 
siempre señaladas por una autoridad judicial.  WT/TPR/M/358/Add.1  
 
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  Para fármacos, la ANVISA mantiene procedimientos administrativos de protección de información 
confidencial. Para una respuesta más concreta, sería importante saber cuál es el procedimiento al 
que se hace referencia en la pregunta.  
3.3.7.2 Propiedad industrial  
Párrafo 3.190, pág. 105 -106 
"Para que puedan surtir efecto frente a terceros, permitir la transferencia de regalías y derechos 
de licencia, y optar a deducciones del impuesto sobre la renta, los contratos relativos a la 
propiedad i ndustrial deben registrarse en el INPI. Durante el período objeto de examen, el Brasil 
ha tomado medidas para agilizar la presentación y el examen de las solicitudes de diversas formas 
de protección de la propiedad industrial, entre ellas las patentes y la s marcas de fábrica o de 
comercio. Entre las innovaciones de procedimiento cabe mencionar: la implantación de un sistema 
para la presentación electrónica simplificada y del Sistema de Automatización de la Propiedad 
Industrial de la OMPI (para las solicitud es de marcas de fábrica o de comercio); iniciativas para el 
examen acelerado (por ejemplo, para las "Patentes Verdes" y para las solicitudes de las 
microempresas y las personas discapacitadas); la publicación de directrices para el examen (de las 
patentes y las marcas de fábrica o de comercio); y un programa de incentivos para la 
productividad dirigido a los examinadores. " 
Preguntas : Con respecto a la  implantación de un sistema para la presentación electrónica 
simplificada, Chile agradecería a Brasil indica r mayor información sobre el sistema de 
simplificación mencionado, en especial en comparación a la presentación presencial (no 
electrónica).  
En 2015, INPI ha implementado el nuevo sistema de depósito de patente vía web realizado a 
través del sistema de pe tición electrónica, que no tiene necesidad de token (firma electrónica), ni 
de descarga de programa, diferente de la forma de presentación electrónica anterior. El sistema 
cuenta con una interfaz gráfica más amigable, siendo más fácil de usar. También diri ge al usuario 
en el llenado de los formularios y en la presentación de documentos, por ejemplo, indicando ya en 
el momento del depósito cuáles de ellos son obligatorios.  
Además de ser más rápido, el pedido electrónico funciona todos los días, puede ser hecho desde 
cualquier lugar y cuenta con descuento en las tasas de los servicios en relación a la opción no 
electrónica.  
En relación al programa de incentivos para los examinadores mencionados, Chile agradecería 
indicar qué tipo de incentivos monetarios se  establecieron para los examinadores.  
No fueran ofrecidos beneficios monetarios, pero la posibilidad de home office (trabajo remoto) 
para aquellos examinadores de mayor productividad.  
Con respecto a los procedimientos acelerados para las "Patentes Verdes ", Chile agradecería indicar 
en qué consiste el examen acelerado de patentes; quién y cómo se determinan las causales que 
dan pie a su aplicación, junto con aclarar si estas iniciativas se han puesto en práctica y si existe 
una evaluación de ellas.  
El prog rama Patentes Verdes contempla tecnologías para energía alternativa, transporte, 
conservación de energía, gestión de residuos y agricultura. Pueden participar las solicitudes de 
patente que no hayan pasado por un examen técnico y que tengan un máximo de 
15 reivindicaciones (tres de ellas independientes).  
El programa piloto Patentes Verdes tuvo su inicio el 17 de abril de 2012 y su tercera fase finalizó el 
16 de abril de 2016. Después de cuatro años en la modalidad de programa piloto, el examen 
prioritario " Patentes Verdes" pasó a ser un servicio permanente del INPI, desde el 6 de diciembre 
de 2016, debido a los buenos resultados alcanzados. De los 480 pedidos que ingresaron durante la 
vigencia del programa piloto, 325 fueron considerados aptos, siendo 112 so licitudes deferidas y 
115 rechazadas, hasta septiembre de 2016. El tiempo máximo de esas decisiones fue de cerca de 
dos años.  WT/TPR/M/358/Add.1  
 
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  Párrafo 3.194, pág. 106  
"Las decisiones del INPI pueden ser impugnadas por el solicitante o por un tercero mediante 
procedimientos  administrativos o judiciales. El solicitante debe iniciar los procedimientos 
administrativos en un plazo de 60 días después de la publicación de la decisión del examinador; 
los procedimientos que se inician de oficio o a instancia de terceros interesados deben empezar en 
el plazo de seis meses contados a partir del otorgamiento de la patente. Los procedimientos 
judiciales para casos de anulación pueden iniciarse en cualquier momento, de oficio o a instancia 
de terceros interesados. Durante el período exami nado, la mayoría de las impugnaciones de las 
decisiones del INPI se refirieron a patentes, modelos de utilidad y marcas de fábrica o de 
comercio. " 
Pregunta:  Con respecto a los procedimientos judiciales para los casos de anulación, Chile 
agradecería a Brasil indicar el plazo para recurrir de nulidad de un derecho de propiedad industrial 
ante los tribunales de justicia, junto con aclarar si puede iniciarse en cu alquier tiempo mientras el 
derecho esté vigente. En el caso que así fuera, con respecto a las marcas ¿ello significaría que 
también puede solicitarse la nulidad durante su período de renovación?  
As provided in paragraph 3.194 of the Secretariat's report, judicial procedures for nullification may 
be initiated ex officio or by interested third parties at any time.  
Según la Ley de Propiedad Industrial (ley nº 9.279/96), hay plazos distintos para los 
procedimientos judiciales para los casos de anulación de los  diferentes activos de la propiedad 
industrial, por ejemplo:  
En el caso de patentes  
Art. 56 - La acción de nulidad podrá ser propuesta a cualquier tiempo de la vigencia de la patente, 
por el INPI o por cualquier persona con legítimo interés.  
§ 1º - La nuli dad de la patente podrá ser argüida, a cualquier tiempo, como materia de defensa.  
§ 2º - El juez podrá, preventiva o incidentalmente, determinar la suspensión de los efectos de la 
patente, atendidos los requisitos procesuales propios.  
Art. 57 - La acción d e nulidad de patente será enjuiciada en el foro de la Justicia Federal y el INPI, 
cuando no sea el autor, intenvendrá en lo hecho.  
§ 1º - El plazo para respuesta del titular de la patente será de 60 (sesenta) días.  
§ 2º - Transitada en juzgado la decisión de acción de nulidad, el INPI publicará anotación, para 
conocimiento de terceros.  
En el caso de marcas:  
Art. 174 - Prescribe en 5 (cinco) años la acción para declarar la nulidad del registro, contados de la 
fecha de su concesión.  
Art. 175 - La acción de nulidad del registro será enjuiciada en el foro de la justicia federal y el 
INPI, cuando no sea autor, intervendrá en lo hecho.  
§ 1º - El plazo para respuesta del reo titular del registro será de 60 (sesenta) días.  
§ 2º - Transitada en juzgado la decisión de la acción de nulidad, el INPI publicará anotación, para 
conocimiento de terceros.  
Para más informaciones, ver ley Nº 9.279/96, disponible en 
http://www.wipo.int/wipolex/en/details.jsp?id= 515.  
Párrafo 3.199, págs. 107 -108 
"La Ley de Derecho de Autor no contiene disposiciones con respecto al agotamiento internacional 
de los derechos; las decisiones son adoptadas estudiando cada caso por separado. En el contexto 
del presente examen, las auto ridades observaron que actualmente no existe jurisprudencia sobre WT/TPR/M/358/Add.1  
 
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  el tema, ya que los tribunales superiores no han emitido una decisión definitiva sobre la cuestión. 
En virtud de la legislación brasileña, los titulares del derecho de autor pueden entablar 
procedimientos penales contra los importadores de mercancías pirata. " 
Pregunta : Con respecto a lo mencionado en el párrafo, Chile agradecería a Brasil indicar cuales 
han sido los criterios aplicados por la autoridad para decidir sobre el agotamiento internacional del 
derecho de autor.  
As mentioned in paragraph 3.199, a jurisprudence on the subject is not presently available, since 
there is no final decision by the higher courts on the issue.  
The principle of international exhaustion is contained in art. 6 of TRIPS, a treaty ratified by Brazil. 
If domestic products are subject to nati onal exhaustion, the imported product must be subject to 
the principle of international exhaustion, under equal conditions. That is, there is the possibility of 
legal importation of a protected product since it has been introduced in the market of any coun try, 
with the consent of the holder.  
The national exhaustion in Brazil is in art. 43, IV and international exhaustion, is provided in art. 
188, II, of Law no. 9,279, dated May 14, 1996. In relation to Copyright, the Law 9.610/98 has no 
specific provision.  The art. 29 deals with the author's exclusivity in the use of his work, and the 
owner does not control the later uses of the work after his first act of disposition, with the 
exception of the right of disqualification contained in item VI of art. 29.  
There are proposals to modify Law 9.610 / 98 to clarify the international exhaustion of the 
patrimonial right of distribution with the first sale, excluding the leasing of audiovisual works and 
computer programs, to legalize sebum and works loans by libraries .  
In a recent court decision (Tj -Sp Apelação 2014.0000493555), either the product is classified as 
an artistic work or is classified as an industrial design, the principle of exhaustion is applicable in 
both cases, to prevent the right holder from limitin g the movement of exhibition of goods created 
by it after its insertion in the market.  
Párrafo 3.200, pág. 108  
"Durante el período objeto de examen, el Brasil actualizó su legislación en materia de gestión 
colectiva del derecho de autor y derechos conexos y creó la Comisión Permanente para la Mejora 
de la Gestión Colectiva (CPAGC). Este país también adoptó un marco de derechos civiles para 
Internet, que prevé la elaboración de leyes específicas para regular la responsabilidad por daños y 
perjuicios que se d erive del contenido gestionado por terceros ". 
Pregunta : respecto a la elaboración de leyes específicas para la regulación de la responsabilidad 
por daños y perjuicios que se derive del contenido gestionado por terceros, Chile agradecería 
mayor información sobre el desarrollo actual en la elaboración de las leyes mencionadas, junto con 
indicar si existen lineamientos ya adoptados para generar dicha legislación. Con respecto al ámbito 
de aplicación de dicha legislación, Chile agradecería aclara si esta inclui rá a los proveedores de 
servicios de internet.  
Articles 18 to 21 of the Civil Rights Framework for the Internet deal with the liability of Internet 
Service Providers (ISPs) for third parties ' infringing content.  The general rule is that the Internet 
Service Provider will not be deemed liable for user -generated content. Nevertheless, according to 
article 19, infringements regarding copyright and related rights must be subject to new legal 
provisions. Therefore, th e government of Brazil must discuss a new legislation concerning liability 
of ISPs resulting from copyright infringements committed by third parties. The rules of the current 
Copyright Act must be applied until there is a specific regulation. The Copyright  Act does not have 
any specific provisions on ISPs ' liability. However, judicial authorities may order the suspension of 
the transmission or the communication the public of the infringing content. The new legislation 
would establish specific rules on ISPs ' liability. Nevertheless, Brazil has not discussed a particular 
proposal yet. In 2015, the government organized a series of meetings with different stakeholders 
to discuss issues regarding copyright protection in the digital environment, but it was not rai sed 
any specific proposal on ISPs ' liability.  WT/TPR/M/358/Add.1  
 
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  4.4.4 Telecomunicaciones  
Políticas e instituciones  
Párrafo 4.145, pág. 168  
"El Ministerio de Ciencia, Tecnología, Innovación y Comunicaciones, a través de la Secretaría de 
Telecomunicaciones, sigue siendo el órgano responsable de la formulación de políticas y la 
planificación del sector, así como de la emisión por radio y televisión. La Agencia Nacional de 
Telecomunicaciones (ANATEL), organismo regulador del sector con independencia administrativa y 
autonomía financiera, se ocupa de la aplicación de las políticas, la regulación de licencias, el 
control del funcionamiento de las empresas ya establecidas, la gestión del espectro 
electromagnético, la certificación del equipo de telecomunicaciones y la protección d e los derechos 
del consumidor. Tiene además autoridad legal para revisar y controlar los precios al por menor de 
los servicios de telefonía fija prestados por las compañías concesionarias en el marco del régimen 
de servicios públicos, así como para aprobar  las fusiones del sector desde una perspectiva 
reguladora, mientras que las cuestiones de competencia propiamente dichas las analiza el CADE 
(organismo encargado de la competencia). " 
Pregunta : Con respecto a la aseveración de que Brasil tiene la autoridad para controlar los 
precios al por menor de los servicios de telefonía fija prestados por las compañías concesionarias, 
Chile agradecería a Brasil indicar cuales son los criterios utilizados par a determinar la fijación de 
precios, junto con aclarar si dichos criterios se aplican de igual manera para proveedores 
nacionales y extranjeros.  
 ANATEL has the prerogative to determine the tariffs only for the basic plan of the concessionaires 
of the lan dline telephone service under the concession regime. The price -adjustment formula 
considers the inflation index of the sector, possible productivity gains of the concessionaire and the 
traffic volume in the previous period, and is set in detail in the conc ession contracts signed with 
competent public authority. For other providers of landline telephones and telecommunication 
services, operating under the authorization regime, the setting of the prices stems from an 
exclusively internal decision. There is no  distinction between national and foreign companies. The 
only difference is due to the regime under which the service is provided.  
Interconexión  
Párrafo 4.148, pág. 169  
"La interconexión de redes en condiciones de no discriminación y a tarifas razonables es 
obligatoria para la prestación de servicios de telecomunicaciones públicos. Se prohíben las 
subvenciones cruzadas, los descuentos discriminatorios, los comportamientos abusivos y demás 
prácticas anticompetitivas. La ANATEL establece los precios de las i nterconexiones para los 
servicios de telecomunicaciones prestados según el régimen de servicios públicos, mientras que en 
el caso del régimen de servicios privados las tarifas de interconexión se negocian libremente, 
aunque están sujetas al control de la A NATEL. Los precios de interconexión de las entidades de 
servicios públicos (las que operan mediante una concesión pública y no las de propiedad estatal) 
deben basarse en los costos y calcularse mediante metodologías basadas en el costo. La ANATEL 
puede apl icar un límite a los precios de interconexión impuestos por todas las empresas que tienen 
un poder de mercado significativo, aunque hasta el momento no se ha establecido tal restricción. " 
Pregunta : en relación a la autoridad de la ANATEL para establecer un  límite a los precios de 
interconexión impuestos por empresas que tiene un poder de mercado significativo, Chile 
agradecería a Brasil indicar los criterios utilizados para definir cuando una compañía tiene "poder 
de mercado significativo ", junto con consultar si podría indicar un ejemplo.  
The definition of an entity as having significant market power , that is , having the power to 
significantly influence market conditions, results from a multicriteria analysis of the relevant 
markets. Specifically, th e current methodology considers the following aspects of a company: 
market share, capacity to exploit economies of scale and of scope, control over infrastructure 
when a mirror infrastructure is not economically viable, concomitant action in the wholesale and 
retail markets.  WT/TPR/M/358/Add.1  
 
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  Resolution Nº 600/2014 and its annexes provide details of the methodology and implementation of 
such analysis process. In addition, the current complete list of groups having SMP are mentioned 
in Acts Nº. 6.617/2012, Nº. 6.619/2012, Nº.  6.620/2012, Nº. 6.621/2012 and Nº  6.622/2012. As 
an example, Act Nº. 6.621/2012 considers the Claro, Oi, TIM and Telefônica groups as holders of 
SMP, within the mobile call termination market, because they operate throughout the whole 
country [http://www.anatel.gov.br/legislacao/resoluco es/34 -2012/425 -resolucao -600; 
http://www.anatel.gov.br/Portal/verificaDocumentos/documento.asp?numeroPublicacao=287792&
assuntoPublicacao=null&caminhoRel=null&filtro=1&documentoPath=287792.pdf  (Act 
No. 6.621/2012)] . 
Párrafo 4.153, pág. 171  
"Durante el período objeto de examen, se aplica ron las prescripciones en materia de contenido 
nacional, además de las previstas en los incentivos del REPNBL, a la subasta de frecuencias del 
espectro radioeléctrico de 2014 y, al parecer en menor medida, a la de 2015. Las autoridades 
señalaron que los pr oveedores nacionales tenían dificultades para cumplir estas prescripciones y 
era poco probable que se utilizaran en el futuro. La ANATEL aplicó las prescripciones en materia de 
contenido nacional utilizadas en una subasta de 2012 a una subasta de espectro de la banda de 
700 MHz celebrada en 2014. Conforme a estas prescripciones, se exigía a los operadores de 
servicios inalámbricos garantizar que el 50% de la infraestructura instalada para proveer el 
servicio con licencia, incluidos los programas informático s, cumpliera los requisitos del PPB 
(secciones 4.3.4 y 4.3.6), así como utilizar un porcentaje mínimo de tecnología desarrollada en el 
Brasil. En noviembre de 2015, la subasta de espectro de las bandas de 1,8, 1,9 y 2,5 GHz 
organizada por la ANATEL tenía c omo objetivo aumentar el grado de competencia y atraer a 
operadores más pequeños, y no incluía prescripciones ex ante en materia de contenido nacional, si 
bien, en caso de pujas equivalentes, las normas de subasta establecían una preferencia por la 
oferta que utilizara servicios, equipos o materiales producidos en el Brasil, incluidos aquellos con 
tecnología nacional. " 
Pregunta : Con respecto al porcentaje  mínimo de tecnología brasileña que debe estar presente en 
la infraestructura instalada por proveedores de telecomunicaciones, Chile agradecería a Brasil 
indicar cuales son las razones para fijar dicha provisión mínima de tecnología nacional.  
Such measures aimed to foster indigenous scientific and technological development. The National 
Broadband Program and the auctions of radio spectrum did not discriminate any investment or 
bidder on basis of the origin of capital, hence no preference was granted. The procedures allowed 
firms to develop technology locally without forcing them to choose suppliers in a no n-cost effective 
way. 
4.4.5.2.2 Servicios portuarios  
Marco normativo y operativo  
Párrafo 4.197, págs. 184 -185  
"Durante el período objeto de examen se introdujeron cambios en el marco normativo que rige los 
servicios portuarios. En 2013 se promulgó una nue va Ley de Puertos, que regula el uso público 
directo e indirecto de los puertos y sus instalaciones, junto con las actividades llevadas a cabo por 
los agentes portuarios, cuya finalidad es aumentar la competitividad, intensificar la competencia y 
promover el desarrollo del sector. Entre los principales cambios recogidos en la nueva Ley cabe 
citar la centralización de la planificación portuaria en la SEP, la autorización a las terminales 
privadas de manipular cargas de terceros y la transformación de los con sejos de la autoridad 
portuaria de órganos deliberantes en órganos consultivos. También se introducen cambios 
normativos en otras esferas, como el arbitraje de los conflictos en el sector portuario, las normas y 
procedimientos para recomponer el equilibrio  económico y financiero en los contratos de 
otorgamiento firmados, la prórroga de los plazos de validez de los contratos de otorgamiento y el 
flete de buques por compañías navieras brasileñas para prestar servicios de apoyo portuario, de 
apoyo marítimo, de  cabotaje y de navegación de altura. El marco normativo sigue permitiendo el 
arrendamiento de zonas e instalaciones portuarias públicas al sector privado, incluidas las 
empresas extranjeras. Muchas de las actividades que se realizan en los puertos públicos  están a 
cargo de empresas privadas nacionales y extranjeras en virtud de contratos de arrendamiento, 
que tienen una duración inicial de 25 años, renovable por otros 25 años. Las empresas que WT/TPR/M/358/Add.1  
 
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  prestan servicios portuarios auxiliares deben estar constituidas  en el Brasil, pero pueden tener 
participación de capital extranjero y recibir trato nacional. El Régimen Especial de Tributación para 
la Modernización y Expansión de los Puertos (REPORTO) sigue previendo la exención del IPI, las 
contribuciones COFINS y PI S y el derecho de importación para la maquinaria y el equipo utilizados 
para la modernización y ampliación de los puertos (cuadro A3.2) " 
Pregunta : Con respecto a la mención de la introducción de cambios normativos al arbitraje de 
conflictos en el sector po rtuario, Chile agradecería a Brasil mencionar cuales son las principales 
modificaciones realizados a la política de arbitraje de conflictos en el sector portuario.  
Decree Nº 8.033/2013 gives ANTAQ the authority to settle disputes, in the administrative sphere, 
between those who operate in the port and the port's administration, as well as to rule on appeals 
filed by those who operate in the port. ANTAQ's decisions can be subm itted to the Judiciary.  
Párrafo 5.9, pág. 39  
"El Gobierno también seguirá apoyando la agricultura familiar por medio de compras públicas, que, 
según lo previsto, totalizarán 806,6 millones de dólares EE.UU. de aquí a 2019. Con ese fin, el 
Gobierno está ref orzando las modalidades de compra institucional del PPA, que permite que las 
entidades públicas compren alimentos a los pequeños agricultores directamente a través del 
programa. " 
Pregunta : Chile agradecería a Brasil aclarar en qué consiste el programa de a yuda a la agricultura 
familiar a través de las compras públicas, junto con indicar cuales son los principales productos 
involucrados y si existen umbrales, contingentes o cuotas para utilizar la preferencia que consagra 
el programa.  
The Food Purchase Prog ramme (PAA), established by article 19 of the Act nº 10.696/2003,  is a 
federal policy that supports the commercialization of food products from family farms by the 
purchase of Brazil 's Government directly from producers. The limit of the government purchas e is 
up to R$ 8.000,00 per farmer annually. The main products involved are rice, cashew nuts, Brazil 
nuts, cassava flour, beans, corn, sorghum, wheat, whole milk powder and wheat flour. Through 
that Program, the Brazilian government seeks to enhance the av ailability of food to the people 
most in need and to boost the sustainable production of family farms.  
  WT/TPR/M/358/Add.1  
 
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  CHINA  
Part I. Questions based on Report by the Secretariat  
Summary , para 5  
Brazil remains open to and encourages inward FDI, which is prevalent across the economy. There 
are several sector -specific foreign ownership prohibitions (certain postal services, and nuclear 
energy) or limitations (e.g. air transport, financial institutio ns, health services, rural land 
acquisition, broadcasting and publishing media, fishing, mining, and hydrocarbons exploration). 
During the review period, certain healthcare services were further opened to FDI. In addition, a 
new model of investment agreeme nts, built upon UNCTAD and OECD guidelines, was used to 
negotiate and sign a series of bilateral investment, promotion and protection treaties whose 
ratification is under way.  
Question 1:  Is there any plan for Brazil to further loosen its foreign investme nt limitations to 
financial institutions, healthcare services, publishing and broadcasting media? If any, please 
provide further explanation.  
FDI restrictions in specific sectors are defined by law. Congress has the mandate to approve 
further changes.  
Market access conditions and FDI restrictions in financial activities remain unchanged. Foreign 
banks are allowed to establish only subsidiaries; those directly responsible for the administration 
of the financial institutions must be Brazilian residents. Dire ct branching by foreign banks is not 
allowed. The establishment of new subsidiaries of foreign financial institutions and the increase in 
participation of foreign individuals or legal entities in the equity of national financial institutions 
remain subject  to authorization by Presidential Decree, once the prudential and regulatory 
requirements are assessed by the Central Bank of Brazil. Those requirements are 
non-discriminatory. Residency requirements also apply to foreigners seating on the boards of such 
institutions.  
In the healthcare services sector, Law 13.097 of 2015 altered Law 8,080/1990, allowing the direct 
or indirect participation of foreign capital in health assistance in Brazil, in the following cases: 
(i) donations of international bodies linked  to the United Nations, of technical cooperation and 
funding organizations; (ii) legal entities intended to install, operate and exploit: general hospitals, 
including philanthropic, specialized hospitals, polyclinics, general clinics and specialized clinic s; and 
actions and researches related to family planning; (iii) health services maintained, non for profit, 
by companies, for healthcare services for their employees and dependents, at no cost to the social 
security; and (iv) other cases that may be regula ted under specific legislation.  
In the media sector, including television networks, magazines, newspapers and radio broadcasting 
stations, legislation stipulates that at least 70% of the total capital of media companies must be 
owned directly or indirectl y by Brazilians born in Brazil or naturalized for more than ten years. This 
restriction does not apply to cable TV and news services delivered through Internet.  
Question 2: Certain healthcare services were further opened to FDI. What sectors are included i n 
certain healthcare services? Is traditional Chinese Medicine one of the sectors?   
The new legislation also added the Article 53 -A to the Law 8,080/1990 allowing foreign 
investments in activities that support health assistance, such as laboratories of hum an genetics, 
production and supply of pharmaceutical and other products for health sector, and laboratories for 
clinic analysis and diagnostic imaging. Therefore, all healthcare services are open to foreign 
investments, except in specific cases in which al l commercialization is prohibited, for both national 
and foreign investors, such as the prohibition of commercial activity of blood and blood products, 
organs, tissues and cells and the prohibition of the export of blood and blood products.   
FDI in Brasil doesn't required prior official authorization and it occurs in a non -discriminatory basis. 
Legal restrictions regarding foreign capital participation or control apply in some specific sectors. 
On healthcare services, Article 142 of Federal Law 13.097/ 2015 , please refer to question  1. WT/TPR/M/358/Add.1  
 
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  Summary, para 27  
The domestic aviation market remains highly concentrated and domestic public air transport 
services (cabotage) reserved for Brazilian legal persons. The main commercial airports remain 
state owned and operated  by a public enterprise. In maritime transport, the national flag fleet 
remains concentrated and dominated by vessels of the state company PETROBRAS.  
Question 3:  Are there any access restrictions to foreign investment in civil aviation services such 
as air  transportation, general aviation, airport management, air traffic control, aircraft 
maintenance, air -ground service, aviation fuel, and computer reservation system? If any, please 
list and describe in details.  
The limit of 20% of voting capital to foreig n investments applies to regular and non -scheduled 
public air transport, including passenger and cargo transport companies, air taxi companies and 
specialized air services companies (aerial photography, aerial photogrammetry, aerial 
cinematography, aerial topography; prospecting, exploration or detection of elements over the soil 
or subsoil, the sea, the undersea platform, water surface and its depths; aerial advertising of any 
kind; promotion or protection of agriculture in general; sanitation, research or  technical or 
scientific experimentation; teaching and training of flight personnel; artificial make of rains or 
weather modification; and any paid modality other than public transport) . 
Question 4:  Is there any plan for Brazil to further open its transpor tation services and grant 
foreign investment the access to domestic air and sea transportation market in the form of joint 
venture or sole proprietorship? If any, please describe in details.  
Regarding the air transportation market, the Presidency sent to C ongress, in April 2017, bill PL 
7425/2017, which eliminates all restrictions for foreign investment on Brazilian air carriers. 
Therefore, Brazilian air transport companies could hold up to 100% foreign capital. PL 7425/2017 
is still under consideration by the Legislative branch – currently, at the Chamber of Deputies (the 
Lower House).  
No restrictions apply to foreign capital in the domestic market for sea transportation, either 
through joint ventures or individual enterprises. Maritime companies have to be  established under 
Brazilian law and have its headquarters and administration in Brazil.  
Summary , para 29  
Regarding professional services, bilateral arrangements were signed in 2014 (architects and urban 
planners, Portugal), 2015 (engineers) and, 2016 (ar chitects and urban planners, France). A 2013 
More Doctors Programme has allowed foreign doctors to work in Brazil without meeting the 
standard working requirements.  
Question 5:  Please introduce the specific policies for movement of natural people regarding  
professional services  in the bilateral arrangements signed by Brazil?  
The bilateral arrangements mentioned are not related to the movement of natural persons in itself, 
but to the recognition of qualifications between the respective professional associations of 
architects and engineers in Brazil and Portugal.  
The program More Doctors allows foreign doctors to be hired directly by the Brazilian government 
to work exclusively within the Public Healthcare System (SUS). The program is applied under 
governmental authority to meet the public policy objective of enhancing access to medical care in 
poor areas and isolated regions of Brazil.  
Question 6:  What are the minimum restrictions (requirements) in  2013 More Doctors Programme 
for foreign doctors to wo rk in Brazil? Does the requirements in the More Doctors Programme  apply 
to Traditional Chinese Medicine practitioners or will the requirements possibly apply to such 
practitioners in the future?  
The requirements for participation in the More Doctors Progra mme are (i) a valid medical degree 
from a Brazilian university or from a foreign university, provided it has been validated by the WT/TPR/M/358/Add.1  
 
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  Ministry of Education, according to the procedures established by the Law Number 9.394, which is 
known as the Law on the Guid elines and Basis of National Education ("LDB")3; (ii) registry at one 
of the Regional Medicine Councils of Brazil (CRM); (iii) license for the practice of medicine abroad, 
which must be proved by means of a document issued within two (2) years prior to the  date of 
publication of the call notice, issued by the competent authorities of the country in which the 
doctor is qualified to practice; (iv) certificates of clean criminal record issued by the competent 
Brazilian authorities if the practicioner is a nati onal, and, in the case of foreigners, if he/she 
resides in Brazil; (v) knowledge of Portuguese; (vi) the country of qualification for professional 
medical practice of the doctor must present a density of physicians equal to or greater than 
1.8/1000, accord ing to the World Health Organization (WHO) data, to be verified by the Ministry of 
Health of Brazil. Foreign doctors who are in Brazil as refugees, under the terms of Law 
9.474/1997, are dismissed from this requirement. The program represents an effort to expand the 
access to healthcare in underserved regions of Brazil; therefore, the focus is in the field of family 
and primary care, but there are no hindrances in the participation of Traditional Chinese Medicine 
practitioners with a medical degree who are able to fulfill the mentioned requirements.  
Page 17, para 1.15  
It is reported that with its multiplicity of taxes, tax regimes, and sub -national jurisdictions, the 
Brazilian tax system remains overly complex, burdensome and unpredictable (notably with respect 
to the settlement of tax credits and the legality of tax concessions granted). Consequently, Brazil 
ranked 181st out of 190 economies on the ease of paying taxes in the 2017 World Bank Doing 
Business  survey, with an estimated tax compliance time of  2,038hours (85 days). According to the 
authorities, reforming the tax system is one of the Brazilian Government's priorities; the reform 
process is expected to begin in 2017.  
Question 7:  Please explain the possible taxes and tax barriers foreign investmen t may encounter 
in Brazil. Could you please provide a detailed list? Please introduce what tax reform measures will 
Brazil take to improve its business environment?  
The simplification of the tax system and of some taxes has been studied. As a first result , there is 
already a draft bill to create a new tax (social contribution) replacing the two federal taxes (PIS 
and COFINS) that are, at the federal level, the most complex ones to comply with and to enforce. 
This new tax will be fully compliant with OECD g uidelines. The aforementioned bill has not yet 
been introduced for consideration of the National Congress.  
Question 8:  Please specify the detailed contents of the tax reform in 2017, especially the tax 
reforms related to natural resources such as land, min ing, oil and gas.  
Please refer to the reply to question 7.  
Page 25, para 2.3 & page 110, para 4.47 & page 112, para 4.52  
Brazil remains open to and encourages inward foreign direct investment (FDI) which is prevalent 
across the economy despite foreign owne rship prohibitions (certain postal services and nuclear 
energy) or limitations in certain sectors (e.g. air transport, financial institutions, health services, 
rural land acquisition, broadcasting and publishing media, fishing, mining and hydrocarbons 
exploration).  
Under the Constitution, Brazil's hydropower sources and mineral resources (including oil and gas), 
whether in the subsoil, the continental shelf, or in the exclusive economic zone, are the exclusive 
property of the State. The sector remains domin ated by state companies (Sections4.4.3 and 4.4.4)  
Local-content commitments have been among the selection criteria in all concession rounds carried 
out since the 7th Bidding Round in 2005. On 14 December 2016, the Government cancelled local 
content requir ements for fields subject to the 4th Bidding Round of Areas with Marginal 
Accumulations scheduled for 2017. A new Local Content Policy is under discussion (see below). 
                                                
3 Law No. 9.394/1996 establishes that undergraduate and postgraduate diplomas awarded by foreign 
universities must be revalidated by Brazilian public universities that have a similar course and equivalent field 
of study. This provision is complemented b y the principle of university autonomy guaranteed by article 207 of 
the Federal Constitution.  WT/TPR/M/358/Add.1  
 
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  Concessionaries that fail to meet their local -content commitments are subject to fines, which vary 
according to the shortfall. Between 2011 and 2016, the ANP levied 110 fines totaling R$570million, 
of which 62% (R$353.4 million) were applied only to PETROBRAS.  
Question 9:  Brazil takes such measures as ownership restriction, local content and  state 
corporation dominance in mining, oil, and gas investment. Please explain the considerations 
behind these measures? Please explain the consistency of these measures with WTO rules as well 
as the commitment made by Brazil in the WTO. Please indicate w hether these measures affect 
foreign investment in mining, oil, and gas or not? Does Brazil have any plan to relax foreign 
investment restrictions in such sectors?  
All applied measures are mandated under the Brazilian Constitution and/or Brazilian legislat ion. 
They are consistent with WTO rules as well as with commitments made by Brazil in the WTO. 
Brazil is one of the main recipients of FDI worldwide and the measures in effect do not negatively 
impact investments. Potential future changes in foreign invest ment rules will be made in 
accordance with decisions made by the Brazilian Government, in consultation with interested 
sector of Brazilian society.  
Historically, the Brazilian Government has aimed at boosting technological development, 
innovation and produ ction of the Brazilian industry, in order to promote development of its 
economy. It does not discriminate between foreign and domestic investments. The broad, 
horizontal objectives pursued by Brazil, both in goods and in services, include increasing energy  
efficiency and diminishing the environmental impact of the economy as a whole, expanding and 
modernizing infrastructure, promoting consumer protection, supporting small and medium -sized 
enterprises and reducing socio -economic and regional disparities.  
There are, however, a few limitations on foreign investment, related to national security and the 
protection of the national interest. A few examples of such limitations are: (i) activities involving 
the use of nuclear energy; (ii) certain postal activities a nd telegraph services; (iii) acquisition of 
property alongside border areas; and (iv) entry of foreign capital is capped at 20% of ordinary 
shares in Brazilian air transportation companies. It is important to note that a number of such 
limitations are bein g reviewed by the government, in the context of a wide range of economic 
reforms.  
Page 40, para 2.40  
To address key shortcomings in traditional BITs' legal loopholes, a new model of investment 
agreements, the Cooperation and Facilitation Investment Agreem ent (CFIA) built upon CAMEX, 
UNCTAD and OECD guidelines and based on risk mitigation, institutional governance and thematic 
agendas, was developed and used as from 16 July 2013.  
Question 10:  Compared with the traditional BITs, how does CFIA work as a new m odel of 
investment agreement and what legal loopholes can be corrected or fixed by CFIA?  
The traditional model of investment agreement, establishing strong protection clauses for foreign 
investors and allowing them to initiate international arbitration aga inst the host state without prior 
recourse to the local judiciary, has had negative effects on host countries. Among several other 
criticisms, their provisions were excessively burdensome for capital -importing states, particularly 
when the specific needs o f developing countries are considered. Many clauses have been 
interpreted in a way that limits or prevents states' right to regulate, restricting the implementation 
of legitimate public policies.  
Indirect expropriation clauses, for example, have allowed fo reign investors to challenge legitimate 
public policies aimed at protecting the environment or human health before arbitral tribunals.  
Many of the investor –state arbitration cases known to date have had major political repercussions 
in the countries invol ved. Investment tribunals have awarded large amounts of compensation and 
are often perceived as favouring individual business interests over social and public considerations 
of the host state.  WT/TPR/M/358/Add.1  
 
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  With a focus on the dispute settlement mechanism and with a str ucture that stimulates challenges 
to domestic regulations that somehow affect investments, BITs have created an adversarial 
dynamic, which does not contribute to create a good business environment nor long -term 
investor –state relations. Despite often havin g the name "Agreements for the Promotion and 
Protection of Investments," these traditional texts do not have an actual promotion concern,[8] 
but almost exclusively the protection one, and their effectiveness in promoting investments has 
not been confirmed,  after all these years, by any available data.  
Developing and developed countries alike have started to think of reforming the international 
investment agreements regime and to promote changes in their investment treaty models, 
including clauses aimed at c larifying and delimiting states' obligations toward investors and limiting 
the possibilities of initiating arbitration. Even so, many concepts used for that purpose maintain 
large room for interpretation by arbitrators and do not solve the problem.  
Brazil' s response to the criticisms of the current regime was to move away from the adversarial 
approach and to adopt a cooperative approach, focusing on the elements of mutual benefit to 
investors and states. It sought to avoid the problems of traditional agreem ents and look for a 
model that really aimed at promoting investment, and not just protecting it.  
With that in mind, a governmental team led by the Ministries of Finance (MF), Foreign Relations 
(MRE) and Industry and Foreign Trade (MDIC), in consultations w ith other institutions and private 
sector coalitions, developed the CFIA model. The creation of this model also took into account 
debates and studies of international organizations and economic forums such as the Organisation 
for Economic Co -operation and Development (OECD), the United Nations Conference on Trade and 
Development (UNCTAD), the International Institute for Sustainable Development (IISD) and the 
G20, besides valuable benchmarks on the theme and country examples.  
The premise of the CFIAs is the long-term perspective that states need to cooperate and maintain 
fluent and organized dialogue with investors to foster sustained investments. It is a new concept of 
agreement focused on stimulating and supporting mutual investments (adopting the concept o f 
investment facilitation), aiming at boosting reciprocal investment flows and opening new and 
sustainable integration activities between the states. The model is therefore in line with the 
development agendas at the G20 and other international forums, esp ecially with the more recent 
discussions on investment facilitation —which have benefited a lot from the Brazilian model 
agreement as an example —as it fosters the improvement of investment conditions to amplify 
business opportunities and stimulate private s ector investments.  
The CFIA model is composed of four main substantive parts, discussed in detail as follows.  
(a)  Scope of the agreement and definition  
The definition of investment plays an essential role, since the CFIAs cover only FDI, which is the 
kind of investment seen as able to play a more decisive role in the development of the states. 
Portfolio investments are explicitly excluded from the scope of the CFIAs, since they encompass 
essentially short -term and speculative investment.  
(b) Regulatory measures and risk mitigation  
The national treatment and most -favoured -nation (MFN) treatment clauses establish that foreign 
investors must be treated no less favourably than domestic investors or investors from third 
parties. A few existing exceptions are preserved, such as the prohibition of investments in border 
regions. The model does not limit new public policy measures, if they are not discriminatory. There 
also are articles on transparency, on the freedom of investment -related transfers, and an articl e 
about expropriation, which determines that direct expropriations are not allowed, unless they are 
made in the public interest, in a non -discriminatory way, in accordance with due process of law 
and on payment of effective compensation. The expropriation article does not cover indirect 
expropriation.  
An important innovation in relation to other investment agreement models is the introduction of 
clauses on corporate social responsibility based on the OECD Guidelines for Multinational 
Enterprises,[10] provis ions against corruption and, in the most recent negotiations, specific WT/TPR/M/358/Add.1  
 
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  exceptions for the protection of human, animal and plant life. This is in line with Brazil's wish that 
investments be socially responsible and contribute to sustainable development.  
(c) Institutional governance and dispute prevention and settlement  
Under the CFIAs, each partner state must create a centralized mechanism (Ombudsman or Focal 
Point) to receive investors' queries and demands. The Ombudsman analyzes the demands and 
questions p osed and, coordinating with the governmental entities related to the issue through 
expedited proceedings, provides the investor with an answer or solution. The objective is that 
foreign investors have at their disposal effective means to overcome hardships  and challenges 
faced to make and maintain the investment and to foster a good business environment. Brazil's 
Ombudsman was established within the Chamber of Foreign Trade (CAMEX), an inter -ministerial 
body responsible for formulating, adopting and coordin ating trade and investment policies.  
The CFIAs also innovate through the constitution of a Joint Committee for state –state cooperation 
and dispute prevention. The dispute prevention component works through a mechanism in which 
representatives of the invest ors and governments involved can share their views on the issue 
raised by the investors and look for a solution on a common ground.  
If the parties fail to find a common ground, the states involved can initiate international arbitration 
as a last resort. Th e CFIAs do not provide for investor –state arbitration. The main purpose of the 
state–state arbitration is to determine whether the host state violated any of the disciplines of the 
agreement and, if so, recommend that the state adjust or eliminate its nonc onforming measure.  
(d) Agenda for Further Investment Cooperation and Facilitation  
The cooperation aspect of the Joint Committee's attributions is exercised especially through the 
development of the Agenda for Further Cooperation and Facilitation, which can  include themes 
such as business visa facilitation, exchange of legislation information and logistics. These topics 
move forward depending on the common interest of the partner states. Therefore, the agenda is 
intended to be a living document, which can be  adapted to each case, including topics of mutual 
interest.  
In short, excessive litigation resulting from BITs affects the business environment and the effort to 
attract investments to developing countries, as well as the regulatory capacity of the State t o 
pursue legitimate policy interests of the population in areas such as health, environment and 
public safety. Therefore, dispute prevention and investment facilitation become a preferred and 
superior choice, both in attraction and in the maintenance of th e investment.  
The main resistances regarded provisions on Investor -State Dispute Settlement (ISDS), that were 
considered discriminatory against national investors, and the indirect expropriation clause, that 
was seen as a possible hindrance on the adoptio n of public policies.  
By focusing in facilitating investment, improving institutional governance, improving government 
relations with the private sector and in preventing disputes, the CFIA presents an innovative 
alternative to traditional investment agree ments and its legal loopholes.  
Question 11: Does Brazil plan to encourage the application of CFIA to all its investment partner 
countries?  
Yes. The CIFA is the current model of investment agreement that Brazil adopts in its international 
negotiations.  
Page 45, para 3.1.3.1  
The simple average applied MFN tariff declined slightly from 11.7% in 2012 to 11.6% in 2017.  
Question 12:  We note that the simple average applied MFN tariff of Brazil declined slightly in the 
past five years. Is there any plan to further lower the MFN tariff?  
There is no overall plan to lower the MFN tariff.  WT/TPR/M/358/Add.1  
 
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  Page 50, para 3.1.4  
Brazil's internal taxation regime remains overly complex, including in the treatment of imported 
goods and services....In addition, their application typically vari es depending on the product type, 
the competent sub -federal authority, and the importer's tax regime status.  
Question 13: Brazil's import taxation regime remains overly complex with poor transparency. Is 
there any plan to integrate and optimize Brazil's ta xation regime? If yes, please specify.  
Brazil does not agree with the assertion that its import taxation is not transparent. The 
simplification of the tax system and of some taxes has been studied. As a first result, there is 
already a draft of a bill to create a new tax (social contribution) to replace two federal taxes (PIS 
and COFINS) that are, at federal level, the most complicated ones to comply with and to be 
enforced. This new tax will be fully compliant with OECD guidelines. The aforementioned bill  has 
not yet been introduced for consideration of the National Congress.  
Page 54, para 3.52 & page 58, para 3.70  
According to the authorities, the purpose of non -automatic licensing is to prevent environmental 
damage and harm to human, plant or animal heal th 
Export authorization or licensing requirements remain in place for a relatively large number of 
products, mainly for safety, health, security, environmental, or native fauna protection reasons.  
Question 14:  Please provide specific measures and related p rocedures of the non -automatic 
licensing which are used to prevent environmental damage.  
Question 15:  Please provide the specific export authorization or licensing measures taken by 
Brazil for environmental reasons.  
Page 55, para 3.53  
The Technical Group for Public Interest Assessment (GTIP), established by CAMEX in 2012, 
remains in charge of examining requests to suspend or modify provisional or definitive measures 
for reasons of public interest.  
Question 16: Please introduce the procedures of Public Inte rest Assessment as well as the main 
factors and the main economic indicators to be considered in the assessment.  
Regarding procedures, any claim to suspend or modify antidumping or countervailing measures 
under a public interest claim shall be submitted to  the Secretariat for International Affairs (SAIN), 
of the Ministry of Finance, which works as a secretariat of the GTIP.  
Any company, member of the GTIP, other public offices or CAMEX by itself can file a case for trade 
remedies measure evaluation within t he GTIP's secretariat – SAIN –, based on factual and legal 
elements. If the request fulfils all the technical requirements and is accepted, the process of public 
interest is officially opened and follows an autonomous path to the one of trade remedies to w hich 
it is linked.  
GTIP has 6 months – which can be expanded to more 6 months – to present its solid and 
motivated conclusions before CAMEX, which will be able to have its ultimate decision through a 
public resolution accepting or not accepting the results  of the public interest assessment by GTIP.  
As for the main factors and main economic indicators to be considered, the guideline is based on a 
cost-benefit approach as follows: Accordingly to art. 3, of the Annex of the CAMEX Resolution 
n° 29, of 7/2017, " Public Interest is identified when the impact of a trade remedies measure over 
the economic agents as a whole demonstrates to be potentially more harmful if compared to the 
positive effects of the application of the measure".  
Specifically, paragraph 1 ind icates some factors and economic indicators that might be considered, 
amongst others: "the impact on the downstream and upstream chain, the availability of substitute WT/TPR/M/358/Add.1  
 
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  products in non -affected origins by the trade remedies measures, the market structure and  the 
competition, and the adequacy to the current public policies".  
Question 17:  Please introduce what kind of factors or economic indicators will make GTIP 
suspend or modify the measures? Are there any objective criteria?  
Factors and economic indicators c onsidered by GTIP are listed in the answer to question 16 and 
they include technical and policy criteria.  
Question 18: Footnote 73 mentioned that since its crea tion, the GTIP has initiated 
15 examinations of AD measures, of which 3 resulted in suspension, 1 in a partial suspension and 
1 still going. Please elaborate on GTIPs examinations of 15 cases.  
The grounds on which AD measures were suspended from 2013 to 2016 were mostly related to 
the end production by domestic industry; ;the need to preserve price s tability within the domestic 
market, whether to the involved chains of production or to the final consumers, was also a factor.  
Page 78, para 3.160  
In 2016, CADE strengthened merger notification criteria with the establishment of notification 
requirements for associative contracts.  
Question 19:  Please explain the concept of associative contracts and introduce the main content 
of notification criteria for associative contracts.  
(CADE)  
According to CADE's Resolution 17/2016, associative contracts are agreemen ts held for at least 
two years that establish businesses' joint effort regarding their economic activities. Associative 
contracts have necessarily to: (i) involve parties that are competitors in the relevant market 
related to the contract itself and (ii) f oresee that the parties share the risks and the results from 
the economic activity. After the adoption of the Resolution 17/2016, associative contracts have to 
be notified and analyzed following the same procedures (thresholds, market share, etc.) than 
actual mergers and acquisitions.  
Page 79, para 3.162  
Compulsory licensing of intellectual property rights is explicitly mentioned among the possible 
remedies for conditional clearance of mergers and the possible penalties for anti -competitive 
conduct.  
Questio n 20：Please introduce the relevant legislation, guidelines and cases of compulsory 
licensing of intellectual property rights in the remedies for mergers.  
The Industrial Property Act (Law 9.279/2016) states that a patent may be "licensed on a 
compulsory bas is" if the right holder "exercises his rights (…) in an abusive manner, or by means 
thereof engages in abuse of economic power, proven pursuant to law in an administrative or 
judicial decision" (Art. 68). Brazil's competition authority (Cade) adjudicates o n whether a merger 
will hurt competition based on the guidelines laid out by law 12.529/2011, which in its Article  61, 
par. 2, item V lists compulsory licensing of intellectual property rights as one of the possible 
remedies for a situation of excessive market concentration.  
page 82, para 3.173  
3.173. According to the authorities, since 2013 there has been no privatiz ation activity, and no 
new SOEs have been created. In 2016, Brazil amended the legal status of enterprises with public 
participation at any level of government, with a view to strengthening their governance and 
transparency, including in procurement operat ions. All such enterprises are required to comply 
with a set of mechanisms for internal control, transparency, and long -term strategic planning.  WT/TPR/M/358/Add.1  
 
- 64 - 
 
  Question 21:  In 2016, Brazil amended the legal status of enterprises with public participation at 
any level of government, with a view to strengthening their governance and transparency, 
including in procurement operations. Please specify how has the legal status of enterprises with 
public participation at any level of government changed since the amendment in 2016 ? What 
measures have the Brazilian government taken or will take to ensure the governance and 
transparency of SOEs?  
In 2016, the Brazilian Federal Government privatized Eletrobras' subsidiary, CELG D. Other 
companies are being considered for privatization this year.  
Law 13.303/2016 establishes the Legal Status of State Companies organized in two thematic axes: 
corporate governance and bidding rules and contracts. This general discipline is applicable to all 
Brazilian state -owned companies at all levels (fed eral, state and municipal) , including  subsidiaries, 
dependent companies and public service providers.  
On governance, the main highlights of Law 13303/2016 refer to the structure of control and the 
professionalization of management. With regard to control, the Law strengthened the powers of 
the supervisory bodies, expanded active transparency on the Internet, created two channels of 
spontaneous denunciation, instituted annual training, established three internal "lines of defense", 
created an Audit Committee  with members independent from the the Board of Directors. On 
management, the Law defines more rigid criteria for appointment of managers, imputes 
responsibility to the authorities that do not respect these criteria, establishes an Eligibility 
Committee,  imposes the definition of business goals linked to long -term strategic planning, limits 
spending in advertising and sponsorship and requires full transparency for the implementation of 
public policies.  
Decree 8.945/16 clarifies and reaffirms the need for ac countability within state companies and 
imposes the segregation of functions. The aim is to give greater transparency to the 
decision -making process and ensure the accuracy of the controls.  
To guarantee the governance and transparency of Brazilian state-owned enterprises, in 2007 the 
Brazilian Federal Government created the Inter -ministerial Commission on Corporate Governance 
and Administration of Corporate Partnerships - CGPAR. The purpose of this Committee is to deal 
with issues related to corpora te governance in federal state -owned enterprises and to the 
management of corporate equity in the Union. Its main objective is to improve government action 
in its shareholder role by encouraging the adoption of modern management practices Corporate 
Governa nce and ensuring more transparency in the relationship with state -owned companies, as 
well as establishing strategic guidelines for the performance of federal state -owned companies and 
the administration councils representing the Union.  
Following the promu lgation of Law 13303/2016 and Decree 8.945/2016, CGPAR has focused its 
work on new Resolutions aimed at implementing the rules of governance and transparency set 
forth in the new legislation.  
The Secretariat for Coordination and Governance of State -Owned C ompanies developed a series of 
educational materials aiming to SOE's, such as the Standard Statuts Model, Manual of the Board of 
Directors, Practical Guide of the Board of Directors, SOE's Magazine and Guide of Questions and 
Answers related to the new legi slation.  
Page 82, para 3.174  
Brazil is neither a party nor an observer to the WTO Plurilateral Agreement on Government 
Procurement (GPA). The Agreement on Economic and Trade Expansion between Brazil and Peru, 
signed in April 2016, contains a chapter on gov ernment procurement. Brazil is involved in ongoing 
negotiations on a MERCOSUR Public Procurement Protocol, as well as in FTA negotiations between 
MERCOSUR and the EU that also include a chapter on public procurement.  
Question 22:  Does Brazil intend to join  the WTO Plurilateral Agreement on Government 
Procurement (GPA)?  WT/TPR/M/358/Add.1  
 
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  Brazil has engaged in bilateral or regional initiatives related to public procurement commitments 
based on the WTO GPA principles  
Question 23:  What contents are mainly covered in the chapter of government procurement in the 
Economic and Trade Agreements signed by Brazil and those in the process of negotiating? Is 
market access involved?  
Public procurement commitments in the agreements signed or under negotiation are based in 
principles such as  transparency, non -discrimination and market access.  Preserving public policy 
space in key sectors, such as small enterprises, health and innovation is a central concern.  
Page 82, para 3.175  
Brazil's decentralized system comprises independent procurement j urisdictions at all levels of 
government that share a common set of rules established by the Federal Government. Common 
elements are mainly set out in the Tendering Law of 1993, and include provisions on transparency, 
procurement methods, exemptions, and a ppeals. The common rules also apply to state -controlled 
enterprises (public enterprises and mixed companies) and at all levels of government, except 
those subject to specific procurement regimes established by the authorities in the respective 
jurisdiction  of incorporation. At the federal level, a company -specific procurement regime, 
established by presidential decree, remains in place for PETROBRAS. In 2016, a set of uniform 
rules and guidelines were adopted for procurement operations by enterprises with p ublic 
participation at any level of government, as part of a broader initiative to strengthen their 
governance. PETROBRAS must adapt to the new framework by 30 June 2018.  
Question 24: Please introduce the basic contents of the set of uniform rules and guid elines 
adopted for the procurement operations by state -owned enterprises with public participation at 
any level of government since 2016. What are the differences between this set of rules and the 
previous common rules?  
Unlike previous legislation, the new  Law prescribes a specific system of public tenders and 
contracts, which excludes the traditional bidding regimes of the Public Administration, based on 
Law n. 8666/1993, Law no. 10520/2002 (trading modality) and Law no. 12462/2012 (Differential 
Contractin g Regime - RDC).  
The trading session, as regulated by Law 10,520/2002, will be preferentially adopted in public 
companies and mixed -capital companies for the acquisition of common goods and services.  
State companies will no longer use the tendering procedu res provided for in Law 8.666/93 
(invitation, competition, price -making, tendering and auctioning), but rather the procedures 
provided for in Law 13303, and for the acquisition of Goods and services, they should 
preferentially adopt the floor.  
Other import ant aspects of tenders and contracts provided for in Law 13303 are:  
Specific hypotheses of bidding waived (Article 28, §3), dispensable (Article 29) and unenforceable 
(Article 30);  
Principles to be observed (article 31);  
- Budget with a price estimate as a rule should be confidential (article 34);  
- Deadlines for disclosure of the public notice according to the criterion of judgment employed 
(article 39);  melhor tirar pois não faz sentidoModes of open dispute, with the possibility of 
bidding, or closed, withou t bids (article 52);  
- adjudication criteria: lower price, higher discount, better combination of technique and price, 
better technique, better artistic content, greater price offer, greater economic return and 
better allocation of alienated goods (article 5 4); 
- Negotiation with the first party to obtain more favorable conditions, and may be extended to WT/TPR/M/358/Add.1  
 
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  other bidders when the price of the first place, even after negotiation, remain above the 
estimated budget (article 57);  
- Single appeal phase, as a rule (articl e 59);  
- Duration of contracts of five years as a rule, certain exceptions allowed (article 71);  
- Changes in contracts only by agreement between the parties: no unilateral amendment by 
the state company (article 72);  
- the contractor may but is not obliged to a ccept changes in quantitative terms, as a rule, up 
to 25% for additions or deletions (article 81);  
- Schemes for integrated or semi -integrated contracting (Article 42).  
Page 83, para 3.176  
The obligation to tender may be waived under various provisions for exemption (dispensa de 
licitao) or non -applicability (inexigibilidade). State -controlled companies at any level of 
government are subject to specific waiver provisions, which were redefined in 2016.  
Question 25:  Under what circumstances will the obligation  to tender be waived for exemptions 
and non -applicability respectively?  
Articles 24 and 25 of Law 8666 of 1993 establish the circumstances under which the obligation to 
tender may be exempted or non -applicable, respectively. As detailed information can be extensive, 
consultation to the Law 8666/93 text is available at: 
http://www.planalto.gov.br/ccivil_03/leis/L8656.htm.  
Question 26:  State -controlled companies at any level of government are subject to specific 
waiver provisions, which were redefined in 2016 . What waiver conditions are included in the 
specific waiver provisions applicable to the procurement for state -controlled companies?  
Under the new legislation, state -owned companies are exempted from bidding on contracts with 
third parties for the direct sale, supply or exercise of products, services or works specifically 
related to their respective corporate objects and in cases where the choice of the commercial 
partner is associated with its particular characteristics, linked to defined and specific bus iness 
opportunities, justified the infeasibility of competitive procedure.  
In addition, as example, it is not necessary to bid for:  
- works and engineering services up to R$ 100,000.00;  
- other services and purchases of up to R$ 50,000.00 and for disposals.  
All exceptions provided for exemption from bidding are in Law 13303/2016, Articles 28, 29 and 30.  
Page 83, para 3.178  
Participating in electronic procurement proceedings requires a digital certificate compliant with the 
ICP-Brazil. To take part in national t endering, foreign suppliers must be legally established in 
Brazil. In the case of international tendering, foreign companies must have legal representation in 
Brazil or be associated with a Brazilian firm. International tendering is mainly used for 
procure ment contracts funded by international institutions or cooperation agencies, and follows the 
rules of the financing institution.  
Question 27:  Are foreign branches and offices legally established in Brazil eligible to participate in 
Brazil's national tender ing? Will there be any restrictions or barriers?  
Yes, foreign branches or offices (of foreign companies) established in accordance with national 
legislation are considered Brazilian companies.  WT/TPR/M/358/Add.1  
 
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  Page 83, para 3.179  
In the awarding of contracts, preference m ay be given to goods and services: (i) produced in 
Brazil; (ii) produced or supplied by Brazilian companies; or (iii) produced or supplied by companies 
that invest in technology development in Brazil. The preferential treatment may include quotas, 
preferen ce margins, and tendering procedures completely restricted to small enterprises based in 
Brazil. Specific provisions regulate the preferences applicable to micro and small enterprises 
(MSEs), and to goods and services produced domestically in accordance wi th Brazilian technical 
standards.  
Question 28:  Can a foreign enterprise legally set up in Brazil be entitled to the same preference 
in tendering for goods and services as the Brazilian local enterprises?  
Yes, all companies established in accordance with n ational legislation are considered Brazilian 
companies.  
Question 29:  What are the preferential measures in Brazilian government procurement to support 
medium, small and micro enterprises?  
MPDG/SEAIN  
A 10% preference to cover a better proposal made by a non -small and micro enterprise is 
applicable in favour of small and micro enterprises in Brazil.  
Page 84, para 3.182  
All but two of these decrees expired on 31 December 2016; one remained partially in force until 30 
March 2017 and one was in force until 30 Ju ne 2017.  
Question 30: When Brazil imports toys, computers and other products from other countries 
outside the MERCOSUR, a 10% additional tax will be levied apart from tariff. We learned that the 
17 relevant decrees will expire successively before June 30th, 2017. Could Brail please indicate 
whether the relevant decrees will be canceled as scheduled and similar new decrees will be 
introduced?  
Those preferential margins put into force in Brazil were temporary, product -specific and based on 
prior studies and a ssessments. As of today, there are no preferential margins in force and there 
are no other preferential margins decrees currently under study.  
Page 103, table 4.6  
Products benefited by PGPM in the 2014/15 were cotton, corn, orange and edible beans.  
Questio n 31:  Please provide the variety -specific quantity, amount, specific operation procedures 
and measures for the above agricultural products benefited by PGPM from 2014 to 2016.  
Among the products mentioned, per notification of 2015/2016 (that is about to be  sent to the 
WTO), only coffee received support, not under PGPM. The amount of support, at US$13 .4 million, 
is related to the Brazilian Coffee Fund – FUNCAFE credit. All other products mentioned did not 
receive any product -specific support.  
Page 106, para 4.38 
Support for family farming remains an important component of agricultural policy, which in this 
area is administered by the SEAD and the MDSA (Section 4.2.2); it is key in fighting poverty and 
plays a strategic role in controlling prices and the food supply. Programmes to promote family 
farming and improve farmer incomes remain unchanged during the review period (Table4.8). They 
include: preferential credit lines (PRONAF), rural extension (ATER), preferential rules in public 
procurement (PAA, PNAE), ru ral insurance (PROAGRO MAIS), price guarantees and debt 
rescheduling (Table4.6, Sections 4.2.4.1 and 4.2.4.2). Access of family farmers to the biodiesel 
market continues to be promoted under the Social Fuel Seal initiative (Section 4.4.3.3.2). Between WT/TPR/M/358/Add.1  
 
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  2012/13 and 2016/17, total budgetary outlays for family farming under these programmes rose 
from R$22.3 billion to R$35.3 billion of which PRONAF spending accounted for 80.7% and 84.9% 
respectively (Table 4.8).  
Question 32: What is the average land management scale in farming for these small -scale 
producers in Brazil?  
According to the last Agriculture and Livestock Census of Brazil, the average size of a family farm 
is estimated in 23,47 hectares.  
Question 33: What is the current quantity of small -scale produce rs? What is the proportion of 
small -scale producers among all agricultural producers?  
According to the last Agriculture and Livestock Census of Brazil, family farms represents 84,4% of 
the total establishments and 74,4% of the employment in rural areas. Th e total quantity of family 
farmers is estimated to be more than 12 million individuals.  
Question 34: We note that in the last Secretariat Report Table 4.6 provided the data for the 
Budget allocated to family farming programmes and measures during the harve st year 2012/13, 
while in this report, Table 4.8 provide the same information for the harvest year 2012/13 but with 
obviously different data. Could Brazil explain which harvest years does Table 4.8 refer to?  
Table 4.8 refers to the Budget allocated to fami ly farming programmes and measures in the 
harvest year 2016/17.  
Page 110, para 4.2.3  
Question 35: The Secretariat Report discusses the Brazils policies in the oil sector with a specific 
section. We are pleased to note that, new local -content policy was app lied to Brazilian 
government's recent tendering of oil and gas exploration (the 14th round exclusive right tendering 
and the third contract tendering of production sharing) , which substantially lowered the 
requirement for localization proportion. We have also learnt that Brazilian government is 
formulating new regulations to fix this new policy in the form of statute. Please describe the 
concrete contents of the new regulations that the Brazilian government will possibly introduce. Are 
the new regulations in compliance with Brazils commitments made to WTO Agreement, especially 
the commitment to Agreement on Trade -Related Investment Measures and General Agreement on 
Trade in Services?  
The new regulations are still under discussion and the Brazilian Governmen t works to guarantee 
compliance with the commitments mentioned in Question 35. Brazil considers compliance a 
requisite to attract foreign direct investments (FDI) for this industry. The new regulations will be in 
compliance with Brazil's commitments under the WTO.  
Page 132, para 4.114  
In MERCOSUR, Brazil undertook specific commitments on trade in services that went significantly 
beyond the commitments under the GATS. These commitments covered new sectors (computer, 
R&D, telecommunication, audiovisual, educ ational, environmental, and maritime transport 
services)  
Question 36:  Please provide the schedule of Specific Commitments on Environmental Services in 
the following three free trade agreements: MERCOSUR, the Mercosur -Chile Agreement and the 
Agreement on Ec onomic and Trade Expansion between Brazil and Peru.  
Considering that the current TPR relates to Brazilian commercial policy and acknowledging that all 
agreements mentioned in the above question use the UN Central Product Classification List (CPC) 
as refere nce, the specific commitments of Brazil are as follows:  
• MERCOSUR Montevideo Protocol on Trade in Services:  WT/TPR/M/358/Add.1  
 
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  Decisão CMC 21/09. After the Seventh Round of negotiations of Specific Commitments in Services, 
Brazil presented the following commitments in envi ronmental services:  
(i) Sewage services (CPC 9401); (ii) Refuse disposal services (CPC 9402); (iii) Sanitation and 
similar services (CPC 9403); (iv) Cleaning services of exhaust gases (CPC 9404); (v) Noise 
abatement services (CPC 9405); (vi) Nature and landsc ape protection services (CPC 9406); 
(vii) Other environmental protection services.  
• MERCOSUR -Chile Agreement  
(i) Refuse disposal services (CPC 9402); (ii) Cleaning services of exhaust gases (CPC 9404); 
(iii) Noise abatement services (CPC 9405).  
• Agreement on Economic and Trade Expansion between Brazil and Peru  
(i) Sewage services (CPC 9401); (ii) Refuse disposal services (CPC 9402); (iii) Sanitation and 
similar services (CPC 9403); (iv) Cleaning services of exhaust gases (CPC 9404); (v) Noise 
abatement services  (CPC 9405); (vi) Nature and landscape protection services (CPC 9406).  
It is important to note that the concession of services related to the environment shall be done 
exclusively at the Municipal level of Public Administration, and must follow the rules established by 
the legislation in force, regarding public companies, public service concessions and biddings.  
Additional d ata can be found at: Mercosul and Mercosul -Chile 
http://www.mdic.gov.br/index.php/comercio -exterior/negociacoes -internacionais/217 -
negociacoes -internacionais -de-servicos/1944 -ni-acordos -internacionais . 
Agreement on Econom ic and Trade Expansion between Brazil and Peru: 
http://www.acuerdoscomerciales.gob.pe/images/stories/brasil/AnexoI_BRASIL_Lista_de_Compro
misos_Especificos_Espanol.pdf . 
Question 37:  Please provide information on whether Brazil has set an independent chapter on 
environment in the FTA / RTA or BIT which ha s been signed and implemented. If there is such a 
chapter, please provide the English version of it.  
Brazil does not have an independent chapter on environment in any FTA/RTA or BIT. Nonetheless, 
the Cooperation and Facilitation Investment Agreement (CFIA)  model does provide for an article of 
Corporate and Social Responsibility, where environment issues are addressed. Please find below a 
version of this article, which is present in all of the CFIAs signed by Brazil:  
Corporate Social Responsibility  
1. Invest ors and their investment shall strive to achieve the highest possible level of contribution 
to the sustainable development of the Host Party and the local community, through the adoption 
of a high degree of socially responsible practices, based on the volu ntary principles and standards 
set out in this Article.  
2. The investors and their investment shall endeavour to comply with the following voluntary 
principles and standards for a responsible business conduct and consistent with the laws adopted 
by the Ho st Party receiving the investment:  
(a)  Stimulate the economic, social and environmental progress, aiming at achieving sustainable 
development;  
(b)  Respect the human rights of those involved in the companies' activities, consistent with the 
international obligations and commitments of the Host Party;  
(c)  Encourage the strengthening of local capacities building through close cooperation with the 
local community;  WT/TPR/M/358/Add.1  
 
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  (d)  Encourage the development of human capital, especially by creating employment 
opportuniti es and facilitating access of workers to professional training;  
(e)  Refrain from seeking or accepting exemptions that are not established in the legislation of 
the Host Party, relating to environment, health, security, work or financial incentives, or 
other issues;  
(f)  Support and maintain good corporate governance principles, and develop and apply good 
practices of corporate governance;  
(g)  Develop and apply effective self -regulatory practices and management systems that foster a 
relationship of mutual trust between the companies and the society in which the operations 
are conducted;  
(h)  Promote the knowledge of workers of the corporate policy, through appropriate 
dissemination of this policy, including programs for professional training;  
(i)  Refrain f rom discriminatory or disciplinary action against the employees who submit grave 
reports to the board or, whenever appropriate, to the competent public authorities, about 
practices that violate the law or violate the standards of corporate governance that the 
company is subject to;  
(j)  Encourage, whenever possible, the business associates, including service providers and 
outsources, to apply the principles of business conduct consistent with the principles 
provided in this Article; and  
(k)  Respect local political activities and processes.  
Page 132, para 4.116  
Brazil remains the largest financial services market in Latin America. During the review period, its 
financial system (SFN) remained sound amidst the recession and low credit growth. The 
contribution of financial and insurance services to gross value added  rose between 2012 and2016, 
from 6.4% to 8.3% (Table 1.1); in 2014, the sector employed 1.2% (1.1% in 2012) of the labour 
force, suggesting a rise in labour productivity. The sector's assets peaked in 2012 and then 
dropped by 25.4% as of 2015, followed by a rise of 26.3% in 2016 (Table 4.11). In 2016, banks 
accounted for 59.4% of the system's assets, whereas insurance companies accounted for 1.3%, 
compared to 60.5% and 1.5% in 2012, respectively; investment and pension funds held 26.4% 
and 11.1% of the asse ts. Within services, financial services constitute the largest recipient of 
foreign capital and the sector where most mergers and acquisitions take place. According to the 
IMF, there seems to be scope for making SFN even more robust by enhancing the financ ial safety 
net as well as ensuring continued vigilance and close monitoring of the health of the corporate 
sector and its links to the banking sector.  
Question 38:  What are the main access and regulatory requirements for foreign financial 
institutions in B razil? Will it follow the principle of national treatment?  
The Banking Law, with the wording of Law 7730/1989, establishes that the Central Bank of Brazil 
(BCB) has exclusive competence to, among others, authorize financial institutions to:  
 operate in the country;  
 establish or transfer their headquarters or offices abroad;  
 be transformed, merged or incorporated; and  
 transfer their equity control.  
With the enactment of the current Brazilian Constitution, of 1988, the inflow of foreign capital to 
the Brazilian Financial System (SFN) was subjected to the provisions in the Act of Transitory 
Provisions of the Constitution (article 52, line I and II). Th is rule prevents the establishment, in the 
country, of new branches of foreign financial institutions and the increase in participation of foreign 
individuals or legal entities in the equity of national financial institutions. However, the same 
constitutio nal provision provides for exceptions in case of authorizations resulting from WT/TPR/M/358/Add.1  
 
- 71 - 
 
  international agreements, reciprocity, or of national interest. The manifestation of such interest 
takes the form of a presidential decree.  
BCB must submit, for presidential app roval, the applications of foreign banks for a license to 
establish or to participate in the capital of financial institutions. With the exception of the above -
mentioned presidential decree, all other procedures for licensing a foreign financial institutio n to 
establish in Brazil are identical to the ones applicable to the licensing of a Brazilian financial 
institution. Once a foreign financial institution is established in Brazil, national treatment applies.  
Resolution CMN 4122, of 2012, defines the requi rements and procedures for the licensing 
authorization, change of control, structural changes and corporate reorganizations, and the 
procedures required to obtain the approval for such operations are listed in Circular 3,649/2013.  
Circular 3317, of March 2 9, 2006, in addition to the provisions of Circular 3,649/2013, establishes 
procedures to be followed in order to request participation or increase of foreign ownership of 
financial institutions and other institutions licensed to operate by the BCB, as well  as for opening 
branches of financial institutions that are domiciled abroad.  
For prudential reasons, the BCB only admits subsidiaries of foreign financial institutions.  
Brazilian licensing procedures are in line with the Core Principles for Effective Bank ing Supervision 
issued by the Basle Committee on Banking Supervision. It is important to remark that all foreign 
financial institutions that want to establish in Brazil and fulfil the prudential requirements are 
operating in Brazil.  
The above -mentioned reg ulations and the licensing procedures summary are available at the BCB's 
website ( http://www.bcb.gov.br/en/#!/n/LICENSINGPROC ). 
Decree -Law 73/1966 establishes jurisdiction of SUSEP for contro lling and supervising the 
insurance, open private pension, capitalization and reinsurance markets (with the exception of 
health insurance, jurisdiction of ANS)  
In general, to provide insurance in Brazil, any company should be incorporated as a domestic 
corporation and, therefore, it is required to be incorporated under Brazilian law and treated as 
national.  
Brazilian licensing procedures for the insurance market largely observe the Insurance Core 
Principles issued by the International Association of Insuran ce Supervisors - IAIS. 
page 145, para 4.161  
Investment barriers seem to make market entry a challenge. Foreign ownership in "free to air" 
television broadcasting is limited to 30%, and 80% of the programming aired on "free to air 
channels" must be Brazilian. In the subscription television market, including satellite and cable 
television, content quotas require every channel to air at least three and a half hours per week of 
Brazilian programming during prime time, thereby creating enormous demand fo r independently 
produced national content to be acquired or coproduced by channels in order to fulfil the quotas. 
One third of all channels included in any television package must be Brazilian. Subscription 
television programmers are also subject to the 11 % CONDECINE levy on remittances, which can 
be waived if an amount equal to at least 3% of remittances is invested in local productions.  
Question 39: Please provide the legal basis including the name of laws and related provisions 
regarding such concrete ba rriers as Brazil's restrictions to foreign investment on public TV stations, 
the requirements for the Brazilian programming and for the number of Brazilian channels in the 
television services.  
According to Article 222 of the Brazilian Federal Constitution,  the ownership of media companies 
(including broadcasting and of sound and images, as well as news outlets) is exclusive of Brazilians 
citizens born in the country or having obtained the nationality for more than ten years, or legal 
entities established un der Brazilian law and having their headquarters in Brazil. In any case, at 
least seventy percent (70%) of the total capital and voting capital of press, broadcasting and WT/TPR/M/358/Add.1  
 
- 72 - 
 
  "sound and images" companies must belong, directly or indirectly, to Brazilian citizen s born in the 
country or having obtained the nationality for more than 10 years. Management and program 
content is mandatorily incumbent to them. Editorial responsibility and selection and direction of 
programs are exclusively reserved to Brazilian citizen s born in the country or having obtained the 
nationality for more than 10 years in any media.  
Law No. 12.284/2011 regulates the quota rules for programming and the number of Brazilian 
channels in the television services. The main requirements established are: (i) in the channels of 
qualified space, at least 3h30 (three hours and thirty minutes) a week of the content transmitted 
in prime time must be Brazilian, and half must be produced by independent Brazilian producers 
(Article 16); (ii) in all packages o ffered to the subscriber, of every 3 (three) qualified space 
channels in the package, at least 1 (one) shall be qualified Brazilian  space channel (Art. 17); 
(iii) companies can only offer channels that contain advertising of services and products in the 
Portuguese language, subtitled in Portuguese or in any way directed to the Brazilian public, which 
have been produced by a national advertisement agency.  
Page 146, para 4.163  
A fixed tax on each foreign film released in theatres, on foreign home entertainmen t products, and 
on foreign programming for broadcast television is levied; the taxes seem significantly higher than 
the corresponding taxes levied on domestic productions. Remittances to foreign producers of 
audiovisual works are subject to a 25% income wi thholding tax; the producer can elect to invest 
70% of this tax in local independent productions. In addition, local distributors of foreign films are 
subject to a levy of 11% of remittances to the foreign producer; the authorities indicated that the 
same rules apply to local films. This levy, a component of the CONDECINE (Contribution to the 
Development of a National Film Industry), is waived if the producer agrees to invest 3% of the 
remittance in local independent productions same as for subscription TV programming. The 
CONDECINE levy is also assessed on foreign video and audio advertising.  
Question 40:  Please provide the legal basis including name of laws and related provisions for 
Brazil to levy taxes on foreign movies, foreign home entertainment produc ts and foreign 
programming for broadcast television  with rates higher than those for domestic productions in 
Brazil.  
The value of CONDECINE shall be reduced to (i) twenty percent, in the case of cinematographic or 
non-advertising audiovisual work; (ii) 20% (twenty percent) in the case of (a) audiovisual works 
for public exhibition that are operated with up to six (6) copies, (b) cinematographic and video 
works intended for image and sound broadcasting services that were produced more than twenty 
years pr ior to the registration of the contract in the Nationa l Film Agency (ANCINE), and 
(c) cinematographic works intended for sound and image broadcasting services and electronic 
mass subscription services, when they have been previously explored in cinema thea tres with a 
limit of up to six (6) copies or in case they have been exhibited at festivals or public exhibitions, 
with prior permission of ANCINE; and (iv) 10% (ten percent), in the case of Brazilian advertising 
carried out by a micro or small business, ac cording to the definitions of art. 3 of Complementary 
Law no. 123/2006.  
Question 41:  Please provide the legal basis including name of laws and related provisions for 
Brazil to establish, manage and use CONDECINE(Contribution to the Development of a Nation al 
Film Industry).  
The Contribution to the Development of a National Film Industry (CONDECINE) is the subject of 
Chapter VI of Provisory Measure Nº 2.228 -1/2001, which establishes the general principles of the 
National Film Policy, including the creation o f the National Film Agency (ANCINE) and the directives 
for the funding of the Brazilian film industry.  
Page 146, para 4.164  
All films and television shows must be printed locally, as importation of colour prints for the 
theatrical and television markets i s prohibited; audiovisual content distributed in six copies or less 
do not need to be printed locally. Domestic film quotas also exist for theatrical screening and home 
video distribution.  WT/TPR/M/358/Add.1  
 
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  Question 42:  Please provide the legal basis including name of laws and related provisions for 
Brazil's ban on the importation of films, television shows and color prints.  
According to article 24 of Provisional Measure 2228 -1/2001 the technical services of copying and 
reproduction of matrices of cinematographic and video -phonographic works that are destined for 
commercial exploitation in the Brazilian market must be performed in laboratories installed in the 
country. The compulsory copying in the country can be waived up to the limit of 6 (six) copies.  
Page 151, para 4.179  
The institutional framework governing airports and auxiliary services remains unchanged...  
Question 43:  Please introduce the collection standard, the management and use of the Brazilian 
National Civil Aviation fund.  
The National Civil Aviation Fund (FNAC)  is regulated by Decree no. 8.024/2013 and is currently 
financed through the revenues from airport concession fees, part of the international boarding fees 
and financial investments. The Fund is administered by SAC/MTPA and is used to foster the civil 
aviation sector through the financing of initiatives, such as: studies, plans and projects for the 
development of the civil aviation sector; investments in airport and civil aeronautics infrastructure; 
capacity building programs; programs for the improvement o f airport management; programs and 
investments in civil aviation security; programs and investments to avoid acts of unlawful 
interference in the civil aviation sector; etc.  
Page 151, para 4.180  
Upgrading infrastructure remains critical for improving inter national competitiveness.  
Question 44:  Please introduce the Brazils airport management system and the funding sources 
for airport construction. In addition, is there any subsidy policy or program introduced by the 
Brazilian government for airport operation s? If any, please introduce.  
Airport management is subject to public concessions, whose terms vary for different airports. More 
recently, airport concessions allowed full participation of private capital, whether national or 
foreign.  
Public funds are avail able for the construction and repair of airports. For instance, the construction 
of the new airport in Vitória da Conquista (in the state of Bahia) and the expansion of the airport 
of São Luís (in the state of Maranhão) were public funded. A third lane for  the airport of Curitiba 
(in the state of Paraná) is part of the Growth Acceleration Programme (PAC) budget.  
Page 160, para 4.214  
Under MERCOSUR Decision No. 25/2003, a regulatory framework allows for granting temporary 
work permits to service providers in  member countries. During the review period, some Brazilian 
professional associations issued regulations for granting temporary licences, for instance, for 
architectural, urban planning, engineering, geology and agronomy professionals. However, 
applicants must have a temporary work contract and a resident visa, either permanent or 
temporary, enabling them to apply for a temporary professional licence.  
Question 45:  Please introduce the specific procedures of applying for temporary work permits? Is 
there a ti me limit for the temporary period? What is the difference between a temporary work 
permit and a long -term one?  
Temporary work contracts must be submitted to the Ministry of Labor and Employment for 
approval. Such contracts must be celebrated between two ju ridical persons, one established in 
Brazil and the other abroad. The natural person must be originally employed by the foreign 
enterprise, which, in some cases, will be responsible for the payment of the worker. Temporary 
work contracts can have different periods, from months to years, depending on the nature of the 
service to be provided or the employment relationship established. After the contract is approved, 
the natural person is entitled to be granted a work visa.  WT/TPR/M/358/Add.1  
 
- 74 - 
 
  Question 46:  Please introduce the rel evant policies and procedures for foreigners to apply for 
work permits in the area of natural person movement.  
Temporary work contracts must be authorized by the Ministry of Labor and Employment. Brazilian 
Companies must submit an application in order to hire a worker from abroad. The worker must 
have professional bonds with a juridical person abroad, which is resp onsible for the contact with 
the Brazilian employer. The Brazilian firm must express the reasons for contracting a foreigner. A 
specific ratio of one third of nationals and foreigners within the firm must be maintained, and the 
foreign workers shall not co mprise more the one third of the total payroll of the company.  
Part II. Questions based on Report by the Government of Brazil  
Page 5, para 2.8  
Regarding foreign trade, after an increase in 2013, it declined at an annual average rate of -8.5% 
in exports an d -16.9% in imports.  
Question 47:  Which products are subject to the import decline? Which countries and regions are 
affected? What is the main reason?  
Considering the average rate for the period for 2013 /2016, the decline in imports concerns all 
groups of  products: capital goods ( -12,2%), consumer goods ( -9,7%), intermediate  goods (8,2%), 
and fuels and lubricants ( -18,8%).  
All world regions were affected by the decline in imports: Asia (-10,2%); Europe ( -9,8%); 
North  America ( -7,7%), South America ( -10,8%) , Africa ( -19,0%) , Middle East ( -14,6%), 
Central  America and Caribbean ( -18,2%), e Oceania ( -9,8%).  
The main reasons for this performance were the slowdown in the world economy and in the 
domestic market.  
Page 6, para 2.12  
The Government is developing part nerships and new instruments for international cooperation, in 
order to encourage joint research, development and innovation (RD&I) between Brazilian and 
foreign companies. The Ministry of Industry, Foreign Trade and Services launched four calls for 
propos als for joint RD&I projects between Brazilian and foreign companies, in partnership with the 
Governments of Israel, France, Germany and the United Kingdom.  
Question 48: Are there any relevant policies or guiding principles for the above -mentioned 
cooperati on? Is there any access threshold?  
Question 49:  What areas are the current RD & I focusing on? How is the effect?  
Page 6, para 2.12  
In addition, the Government is developing partnerships and new instruments for international 
cooperation, in order to encour age joint research, development and innovation (RD&I) between 
Brazilian and foreign companies.  
Question 50 ：In terms of mining investment and policy research, what measures has Brazil taken 
to develop international partnership and what achievements have bee n made?  
Page 11, para 2.44  
According to the general Law, public entities cannot establish differential treatment between 
Brazilian and foreign companies.  
Question 51:  In Brazil's government procurement, there are quite some measures giving priority 
to Braz ilian products, which obviously against the general law that public entities cannot establish 
differential treatment between Brazilian and foreign companies. Please give further explanation.  WT/TPR/M/358/Add.1  
 
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  Brazil does not agree with the assertion by China and notes that it is not a signatory of the 
Government Procurement Agreement of the WTO.  
Page 11, para 2.2.6  
Question 52:  Brazil is the second Latin American country that signed currency exchange 
agreement with China. As both China and Brazil enjoy adequate foreign rese rves with capital 
control on the two currencies, the China -Brazil Currency Exchange Agreement not only 
demonstrates the cooperation mechanism of the two countries under the BRIC framework, but also 
sets an example for the developing countries to carry out financial cooperation and change the old 
international financial order. Will Brazil consider settling in RMB in the trade between China and 
Brazil to facilitate the trade intercourse between the two countries?  
Central Bank of Brazil has been negotiating Lo cal Currency Payments Systems (SML) with several 
countries and aims to expand this process, including evaluating a multilateral mechanism. The 
partnership between Brazil and China is an important one and has been intensified through a close 
dialogue and tr ade. Given the already important relationship between the two countries, Brazil 
welcomes the opportunity to discuss with China possible alternatives and mechanism to settle 
payments in local currencies, through an SML or another feasible mechanism in SML f ramework 
basis.  
Page 14, para 2.66  
Brazil understands that social housing plays a central role in promoting sustainable urban 
development and economic development, in accordance with the principles emanating from the 
New Urban Agenda recently approved in Q uito. The Brazilian Government is focusing its efforts on 
improving quality and expanding the number of homes offered, as well as increasing the efficiency 
of the system.  
Question 53:  Please briefly describe the principle, in the New Urban Agenda, regardin g social 
housing and how the Brazilian government accommodates the increasing demand for housing.  
The concept of adequate housing is considered a right that covers: accessibility; legal security of 
tenure; habitability; affordability; cultural adequacy; lo cation; availability of services, materials, 
facilities and infrastructure; safe spaces; employment and education in an average city's standard 
are principles present in the New Urban Agenda and guaranteed in all guidelines and norms of the 
Ministry of Cit ies' programs. Through the National Cities' Council, this right to adequate housing is 
spread to all instances of popular participation and decision making, and has also been seen as an 
objective to be pursued by subnational policies. Beyond that, the Nati onal Housing Secretariat 
(SNH) has been monitoring the quality and the social effectiveness of its policies through 
interinstitutional cooperation.  
The National Housing Plan guidelines, published in 2009 and now in revision, are in line with the 
directives of the specific legislation and agreements that veto any kind of discrimination and that 
promote human rights, as well as the fight against inequal ities. The My House My Life Program 
(Programa Minha Casa Minha Vida – PMCMV), the Slum Upgrading Program (PAC -UAP) and the 
Reform Card Program are three important instruments aimed to respond to the Brazilian housing 
issues of mass -scale production and ina dequate housing qualification.  
The PMCMV was created in 2009 with the intents of filling the gap in the housing provision for low -
income households, boosting the economy and fighting the country's housing deficit. Coordinated 
by the National Housing Secretariat of the Ministry of Cities (SNH/MCidades), this program is 
highlighted among the social policies of the Brazilian government. Up to June 2017, the PMCMV 
had an investment of more than 353 billion Reais, with more than 3.4 million housing units 
delivered and more than 3.8 million housing units contracted.  
The Slum Upgrading Program (PAC -UAP), created in 2007, addresses the issues of precarious 
settlements and favelas, seeking to keep families in their place of residence, urbanizing areas and 
providing infrastructure, as well as providing social housing through the linked PMCMV. This 
Program focuses not only on the quantitative housing deficit - building new housing units through 
linked PMCMV operations, but also on the qualitative intervention of t he settlements, executing WT/TPR/M/358/Add.1  
 
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  actions of housing improvements, land regularization, environmental recovery, among others. 
PAC-UAP has already benefited more than 330 thousand families.  
The Reform Card Program was launched in 2016 and aims to improve the living  conditions of low -
income families by means of an economic subsidy for the acquisition of construction materials, for 
the renovation, expansion or completion of housing units for low -income families, including the 
service of technical assistance of profess ionals of the area of civil construction. This Program is in 
the initial phase of operation.  
Despite the current efforts of the Brazilian Government to meet the existing demand for housing, it 
is known that this need constantly varies. Therefore, aiming t o adequately plan and allocate 
available resources, the National Housing Secretariat in addition to revising housing programs, 
undertakes studies by means of technical cooperation with academic institutions, amongst which 
we can highlight the studies of fu ture demand for housing. These studies measure, from the 
population projection, not only the total amount of housing required, but also clippings related to 
gender, income, territorial cut, among others. The latest survey on future demand for housing was 
published in 2009 and covered the periods between 2003 and 2023. Currently, this research is 
under review and will focus on a new period, from 2010 to 2040, the results are expected to be 
disclosed in October 2017.  
Page 14, para 3.2  
The period 2015 -2016 was  characterized by significant surpluses in goods trade: US$19.7billion 
and US$47.7 billion, respectively.  
Question 54: What is the reason for the significantly increased trade surplus in 2016?  What are 
the main export products that contribute to the surplu s? What is the distribution of the export 
destinations and the export proportion they account for?  
Detailed information can be found at the following address: 
http://www.mdic.gov.br/index.php/comercio -exterior/estatisticas -de-comercio -exterior.  
Page 14, p ara 3.4  
Raw materials and intermediate products had a share of 57% of total imports in the 2013 -2016 
period.......Pharmaceutical goods, auto -parts, oil, fertilizers, automobiles and electronic goods 
were the main products imported by Brazil  
Question 55: What are the main trade restrictive measures taken by Brazil in import?  
Are there any trade restrictive measures for the main import products? If any, please specify.  
Brazil does not understand what China means by trade restrictive measures. Brazil only ado pts 
measures that are authorized by the WTO or are in accordance with its preferential trade 
agreements.  
Page 15, para 3.8  
Most of the cases dealt with issues that are at the core of the Multilateral Trading System, such as: 
granting of subsidies both to i ndustrial (Canada Aircraft) and agricultural goods (EU Sugar and US 
Upland Cotton) and the application of trade restrictive measures by developed countries (US - 
Orange Juice), the protection of the environment (Brazil Tires) and public health (EU Medicine s in 
Transit) . 
Question 56: Please introduce Brazils experience in dealing with the dispute of Tire Case initiated 
by the European Union in the WTO?  
Brazil understands that WTO agreements preserve a member right to adopt measures necessary 
to protect the e nvironment and other legitimate objective as long as those measures are not 
applied in a non -discriminatory and non -arbitrary measures nor amount to a disguised restriction 
to trade. In Brazil – Retreaded tyres, the European Union challenged Brazil´s ban o n the WT/TPR/M/358/Add.1  
 
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  importation of retreated tires. Brazil successfully demonstrate that the ban was justified under 
Article XX(b) of the GATT as it was necessary to protect human life and health. As tires can be 
retreaded only once, the importation of retreated tires a ccelerates the accumulation of solid 
residues. This increases Brazil´s environmental burden – since there are no viable ways to dispose 
of used tires -, and results in serious risk to public health, given that the accumulation of used 
tires increases the r isk of proliferation of diseases, such as dengue fever.  
Question 57: Would Brazil introduce the specific practices of using trade measures to protect 
Brazil's environment while complying with WTO rules.  
As explained in the reply to question 56, Brazil und erstand that WTO agreements preserve a 
member´s right to adopt measures necessary to protect the environment and other legitimate 
objective as long as those measures are not applied in a non -discriminatory and non -arbitrary 
measures nor amount to a disguis ed restriction to trade.  
Page 18, para 3.33  
MERCOSUR and extra -regional agreements.  
Question 58:  We note that, besides MERCOSUR, Brazil has also entered into free trade 
agreement with such countries and regions as India, South Africa and European Union. Wi ll Brazil 
consider a joint feasibility study in order to initiate free trade zone negotiation with China?  
According to MERCOSUR Decision Nº 32 (29th June 2000), MERCOSUR members are committed to 
negotiate as a bloc any agreement of commercial nature. Consi dering that Mercosur is already 
engaged in multiple trade negotiations, the bloc's overloaded agenda would discourage taking up 
additional initiatives at this juncture.  
Page 22, para 4.21  
Since May 2012, with the entry into force of the Brazilian competit ion law Law No.12,529/11 , the 
Brazilian Competition Policy System SBDC went through significant changes. These changes 
resulted in a unified approach to competition policy, bringing together the investigatory and 
decision -making powers of competition enfo rcement and leading to increasing efficiencies. They 
also allowed the Brazilian antitrust authority, the Administrative Council for Economic Defense 
CADE, to focus more on relevant precedent, predictability and legal certainty, and granted it the 
tools and  framework to reflect carefully on competition cases and provide coherent consistent and 
robust legal precedent in Brazil.  
Question 59:  Please briefly introduce the institutional structure of Brazils competition 
enforcement authority  
The Administrative Cou ncil for Economic Defense - CADE is the body from the Executive branch of 
the Brazilian government, reporting to the Ministry of Justice, responsible for investigating and 
deciding, ultimately, on competition issues. The authority has jurisdiction over the  national 
territory and performs its legal functions given by the Law 12,529/2011, which entered into force 
in May 2012. According to the Law, CADE is responsible for the instruction of administrative 
proceedings related to violations against the economic order, as well as for the pre -merger review. 
The authority is composed by: (i) the Administrative Tribunal, (ii) the General Superintendence, 
and (iii) the Department of Economic Studies. The General Superintendence is mostly responsible 
for investigating and instructing proceedings in order to rebuke anticompetitive conducts and to 
develop the merger control. The Department of Economic Studies is responsible for improving 
economic analyses and providing greater security on the effects of CADE's decisions i n the market. 
And, the Administrative Tribunal judges all anticompetitive conducts and complex mergers, issuing 
the authority's final decision.  
Page 23, para 4.24  
Moreover, all citizens have online access to the public versions of CADE's files and documents.  
Question 60:  Please introduce the scope and form of files and documents  disclosed by CADE.  WT/TPR/M/358/Add.1  
 
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  CADE discloses all information that is not confidential nor has a legal restriction, such as 
documents resulting from a leniency agreement or personal inf ormation. In order to ensure public 
access to the authority's proceedings, CADE's website provides a search tool that allows any user 
to the available public information -- http://en.cade.gov.br/case_search.  
Page 27, para 4.27  
International cooperation is also an important feature of competition law and policy in Brazil. CADE 
has cooperated with several foreign jurisdictions in the resolution of anticompetitive cases, 
assessment of mergers and a close dialogue in order to make their work converge for the pu rpose 
of more effective competition enforcement. In addition, the Brazilian competition authority is part 
of relevant international competition fora, such as the ICN, OECD and UNCTAD, with an actively 
and fruitful participation, which contributes for the d evelopment of the best practices within the 
international competition community.  
Question 61:  Please introduce the cooperation between CADE and other jurisdictions in the 
investigation on merger and acquisition cases?  
CADE has been experiencing a continuou s employment of international cooperation in the 
coordination with other competition authorities on matters of competition enforcement and policy, 
especially concerning merger control. The international cooperation generally occurs by means of 
the exchange  of non -confidential information and public documents.  
In the cases involving the exchange of confidential information, in order to overcome the barriers 
that may hinder investigations, CADE is engaged in using formal instruments of cooperation, 
according  to its legal provisions, such as waivers from the merger parties. In 2016, CADE 
cooperated with 11 foreign competition authorities on 27 merger cases.  
Page 23, para 4.29  
Although the number of measures in force has increased since 2012, the number of mea sures 
applied each year constantly and significantly decreased during the period under review.  
Question 62:  What is the average number of trade remedy measures applied every year since 
2012?  
In 2012, 18 definitive measures were applied. In the following two years, 43 and 42 measures 
were applied, and since then this index has been falling. In 2015, 36 measures were applied and in 
2016, 29 measures. Thus, in the period between 2012 and 2016, an  average of 33.6 trade defense 
measures were applied annually.  
Page 24, para 4.34  
In order to make investigations more transparent and to facilitate the submission and the access 
to the case files of an investigation by all interested parties, Brazil imple mented the DECOM Digital 
System (DDS), through SECEX Ordinance No. 58, of 2015.  
Question 63:  Please briefly introduce how stakeholders submit and obtain related files by using 
DDS?  
In accordance with SECEX Ordinance No. 58, dated July 29th, 2015, intereste d parties shall 
participate in trade remedies investigations necessarily through Decom Digital System (DDS), 
where they can either submit and obtain files related to the investigation. The address of DDS is 
http://decomdigital.mdic.gov.br .  
In this context, all the documents submitted by the interested parties, including the answer to the 
questionnaires, must necessarily be filed through the DDS.  For this purpose, it is mandatory for 
the interested party or th eir legal representatives to acquire a digital certificate issued under the 
Brazilian Public Key Infrastructure (ICP -Brazil) in order to consult or comment on the case file. To 
acquire the digital certificate, the representative of the interested party mus t follow the guidelines WT/TPR/M/358/Add.1  
 
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  established by the Instituto Nacional de Tecnologia da Informação - ITI (National Institute of 
Information Technology) at the website http://www.iti.gov.br . 
Page 35, para 5.10  
Strengthening and supporting the multilateral trading system will remain a priority. Brazil will 
continue to play an active role in the WTO and will contribute to counter anti -trade movements 
and protectionist pressures.  
Question 64: How will Brazil strengthen and support t he development of multilateral trade 
system in terms of trade and investment of resources?  
Brazil will continue to participate actively in the the three pillars of the WTO: monitoring, dispute 
settlement and negotiations. Brazil is currently engaged in the  negotiations leading to the Buenos 
Aires Ministerial Declaration and is participating in discussions of both the Doha agenda and the so 
called "new issues".  
Part III. Other questions  
Question 65: What requirements must be met by foreigners to obtain certi fied public accountant 
(CPA) license of Brazil? Are there any limitations to the scope of business for foreigners who have 
obtained the license? If any, please list and specify. How many foreign CPAs are there in Brazil at 
the moment?  
The concession of a p rofessional license by the Regional Accounting Councils (CRCs) to persons 
who have obtained their diplomas abroad is subject to the validation of the diploma by a Brazilian 
federal university, as determined by the Ministry of Education. Moreover, candidate s must pass a 
proficiency exam in Portuguese by The Federal Accounting Council - CFC (Article 32 of CFC 
Resolution No. 1494/15).  
Once the professional registration has been obtained, under the conditions set out in the previous 
paragraph, there is no limit ation to the scope of business of the registered accountants.  
There is no statistical publication of how many professionals registered in Brazil who have obtained 
a diploma abroad.  
The table below shows the total of accounting professionals registered at the CFC since 2013. 
Please note that we do not have information on the number of foreign accountants registered in 
Brazil. In the process of obtaining registration, they are submitted to a Proficiency Exam in 
Accounting. As described above, in order to tak e the exam, foreigners must revalidate their 
diploma at a Brazilian public university.  
2013  2014  2015  2016  
493.952  508.661  532.065  536.240  
Question 66: What requirements must be met by foreigners to be partners (shareholders) of 
accounting firms in Brazil? Are there any limits to the shareholding ratio or the proportion of 
partners? If any, what is the ratio or proportion? At present, how many foreign partners 
(shareholders) are there in the accounting firms in Brazil?  
In order to become a shareholde r or a partner of an accounting firm in Brazil, the foreign 
accountant must be registered in a Regional Accounting Council (CRC), under the conditions set 
out in the answer to question 65. Therefore, there is no possibility for foreigners without a CRC 
registration to participate in any accounting firm, in light of the legislation that regulates the 
accounting profession in the country. (Law No. 9295/1946).  
Question 67: What accounting codes should be followed in formulating financial statements when 
foreig n enterprises issue securities in the capital market of Brazil? What are the requirements for 
the auditors? Can foreign accounting firms serve as the auditors for foreign enterprises to issue 
securities in Brazil? Is approval by or registration in related supervising authorities needed?  WT/TPR/M/358/Add.1  
 
- 80 - 
 
  Brazil is a full member of the IFRS Foundation and adopts IFRS standards, which are mandatory 
with no exception. In order to issue securities in the Brazilian capital market, foreign companies 
must prepare their financial st atements in Portuguese, according to the International Financial 
Reporting Standard (IFRS), issued by the International Accounting Standard Board (IASB), or 
based on the Brazilian Accounting Standards issued by the Federal Accounting Council (CFC) and 
the Securities and Exchange Commission (CVM), which are already converging to the international 
standard referred to. These financial statements, even if they have been audited by companies in 
the country of origin, must be submitted to review by a Brazilian a udit firm registered with the 
Regional Accounting Council (CRC) and the CVM. Therefore, the issuance of securities in Brazil is 
subject to mandatory registration with the CVM and so must auditors for the auditing of securities 
issued in the Brazilian marke t. 
Auditors must be registered with the Securities and Exchange Commission of Brasil (CVM) and 
follow the rules issued by IBRACON and the CVM for the auditing of publicly -held companies.  
Foreign accounting firms cannot serve as the auditors for foreign en terprises to issue securities in 
Brazil. The issuance of securities in Brazil is subject to mandatory registration with the CVM and so 
must auditors for the auditing of securities issued in the Brazilian market.  
Issuance of securities and auditors must be registered with the CVM and Mode 3 requirements 
apply, regardless of approval by or registration in related supervising authorities, which can be 
seen as a plus.  
Question 68:  According to No.1356 Decree from the Ministry of Finance of Brazil, the customs 
authorities commenced to practice the new customs provisions from May, 2013. To improve good 
clearance efficiency and streamline import procedures, importers can take goods without 
presenting bills of lading. So once the ship owners collude with importers t o make the goods 
declared and enter the green channel, the importers can take away goods without the settlement 
of exchange, which causes considerable losses to the exporting enterprises and the exporters 
banks. Is there any plan for Brazil to introduce re levant policies to avoid the occurrence of the 
above case? If any, please describe.  
We believe there is a misunderstanding on this issue. The bill of lading is an obligatory support 
document for customs clearance, as provided for in the Article 553 of the Customs Code (Decree 
No. 6,759 of 5 February 2009) and in the Article 18 of the Normative Instruction No. 680/2006. 
Furthermore, the Normative Instruction No. 1,356/2013 established the possibility of electronic 
submission of the bill of leading for custom s clearance, instead of paper documentation, 
consequently, the importer does not need to produce it to customs authority. However, the cargo 
depositary (terminals and customs bonded warehouses) are supposed to require the presentation 
of the original bill of lading as condition to release the goods.  
Question 69:  Based on the localization proportion, Brazil levies different tax rates on the products 
produced locally in Brazil by foreign enterprise and levies full import tax rate for products whose 
localization proportion fails to reach a certain threshold. Is ther e any plan for Brazil to adjust or 
cancel the proportion? If any, please describe.  
Brazil levies import taxes on foreign products on non -discriminatory basis in accordance with the 
most favoured nation principle.  
Question 70:  On November 21, 2016, Brazil l aunched investigation on the countervailing of hot -
rolled steel flat products originated from China, which was the first time for Brazil to launch a 
countervailing investigation against China. Prior to this, Brazil initiated anti -dumping investigation 
on the same product on July 20, 2016. China has the following three major concerns  
Firstly, the Brazilian investigation authorities filed the case without adequate supporting evidence 
from the applicant. The applicant of the case failed to submit, in accordanc e with the 
countervailing law of Brazil and Agreement on Subsidies and Countervailing Measures  of WTO, 
adequate and accurate proof to prove the existence of the subsidies and benefits received by the 
Chinese companies in the application letter. Some items the application letter accused of had been 
terminated before the submission of the application. Many items accused of by the applicant do 
not constitute subsidy at all.  WT/TPR/M/358/Add.1  
 
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  Secondly, it lacks legal basis to require the Chinese government to answer the accusati on items 
not used by the responding companies. In accordance with the provisions of the countervailing 
laws of Brazil and Agreement on Subsidies and Countervailing Measures  of WTO, CGMC, when 
calculating the subsidy margin, should target the investigation at every indictable subsidy item and 
calculate the subsidy margin based on the investigation results.  
Thirdly, there are procedural problems. The Brazilian investigation authorities informed the 
Chinese government of the receipt of adequate proof for the f iling of the case and invited the 
Chinese government for negotiation 5 days before the authorities received the documents of sworn 
translation. Up to now, the applicant has only provided a small part of the sworn translation of the 
Chinese original documen ts attached to the application letter.  
Please respond or explain the above -mentioned concerns from China.  
The Brazilian investigative authority values transparency in the conduct of its investigations, and 
all its acts and recommendations are made in co mpliance with the regulations and agreements 
reached within the framework of the WTO.  
In this regard, the petition was analyzed according to the requirements established in the SCM 
Agreement and was considered adequately documented based on the elements o f proof, which at 
that time fulfilled the language requirements provided for in Brazilian law. In this regard, it should 
be emphasized that according to article 18 of Law No. 12.995, of 2014, documents produced in the 
official languages of the World Trad e Organization (WTO) may be incorporated into the 
investigation files. The opportunity for consultations also fulfilled the legal requirements.  
In addition, DECOM, the investigative authority, points out that the investigation is being 
conducted strictly in observance of the SCM Agreement and t he Brazilian Regulation 
(Decree  1,751, of 1995). In compliance with Article 12 of the SCM Agreement, all interested 
parties and the Chinese Government were notified of the information required and are being given 
full opportunity to present all evidence which they consider relevant in respect of the investigation 
in question, given that it is still in progress . 
FOLLOW -UP QUESTIONS  
Part I. Questions based on Report by the Secretariat  
Page 43, para 3.11  
"Airborne exped ited shipments (valued at US$3,000 or less) are declared with an express 
shipment declaration ( Declaração de Importação de Remessas  Expressas  (DIRE)), which must be 
registered in the system for Computerized Control of Expedited Shipments (REMESSA). The cou rier 
company, rather than the importer, is responsible for customs procedures. Commercial imports 
declared with a DIRE are subject to a Simplified Tax Regime ( Regime de Tributação Simplificada ) 
and are taxed at  60% of their customs value, regardless of the  tariff line under which they are 
classified; books, newspapers, and magazines are tax -exempt. " 
Question 1:  Do the express shipments only refer to the airborne expedited shipments?  
Yes. 
Question 2: How are the express shipments classified?  
Express shipme nt means goods designated as such by an expedited shipment provider.  
Question 3:  What's the difference between the express shipment declaration and the simplified 
import declaration mentioned in Paragraph 3.10?  
Basically, the DIRE is submitted by an expedited shipment provider, which has also to submit 
specified information in advance of the arrival of the expedited shipments and to assume liability 
for payment of all customs duties, taxes, fees, and charges for the goods . WT/TPR/M/358/Add.1  
 
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  Question 4: It is stated in the Report that "Commercial imports declared with a DIRE are subject 
to a Simplified Tax Regime ( Regime de Tributação Simplificada ) and are taxed at 60% of their 
customs value, regardless of the tariff line under which they are classified ", and is it neces sary to 
classify the express shipments under such circumstances? How to determine the duty -paid value?  
No. It is determined based on the customs value of the goods.  
Page 45, para 3.26 & Table 3.2 & Chart 3.1  
"The simple average applied MFN tariff declined slightly from 11.7% in 2012 to 11.6% in 2017; for 
dutiable lines, the decline was from 12.7% to 12.6%. Some 7.7% of tariff lines are duty free 
(down from 8% in  2012), the modal rate is 14%, and 4.6% of all lines have rates of over 26% 
(Chart  3.1)." 
Questio n 5: The proportion of Brazilian duty -free tariff lines declined from 8% in 2012 to 7.7%. 
According to Chart 3.1 Frequency distribution of MFN tariff rates, Brazilian duty -free tariff lines still 
account for a small proportion. Does Brazil have any arrange ments for further tariff concession in 
the future? Please specify if any.  
Brazil applies the MERCOSUR Common External Tariff (CET) and maintains a range of temporary, 
individual derogations from the CET, in line with MERCOSUR rules.  
Three MERCOSUR mechanisms allowing for such derogations have a longstanding implementation 
record in Brazil: the basic list of national exemptions, the quotas for lower tariffs, and the Ex 
Tarifário mechanism. The deadline for elimination of these mechanisms has been ext ended until 31 
December 2021 (Common Market Council Decision No. 26/15 of 16 July 2015).  
The Council of Ministers of the Foreign Trade Board (CAMEX), responsible for the implementation 
of changes in the CET, has recently agreed on declining the tariff appl ied for capital goods and 
computing and telecom goods under the scope of the Ex Tarifário mechanism, from 2% to 0%.  
Other specific tariff changes, either permanent or temporary, are constantly being discussed either 
in MERCOSUR or as derogations allowed by  it. 
Page 54, para 3.51  
"At end -2016, imports classifiable under some 137 tariff lines were subject to automatic licensing, 
whereas non -automatic licensing requirements could apply to at least 5,460 tariff lines (more than 
half of Brazil's entire tariff). During 2013 -16, the main additions to the list of imports subject to 
non-automatic licensing included endangered species (some 200 tariff lines) and several 
manufactured goods (i.e. automotive parts). According to the authorities, the implementation of 
the Single Window Programme (Section  3.1.1) would bring about more efficient solutions for the 
enforcement of public policies, thereby significantly reducing the number of import licensing 
requirements. " 
Question 6:  Please clarify the reasons to apply non -automatic licensing for almost half of the 
Brazil's entire tariff.  
The Brazilian government is currently working on the revision of importing procedures in order to 
build a solution that fulfills the needs of information of all agencies involved in foreign t rade. The 
"Portal Único de Comércio Exterior " (the Brazilian Single Window initiative), has as its basic 
premises the revision of the importing process as a whole and the complete integration between 
the new tools and systems among all agencies. The current foreign trade procedural structure 
dates fr om the 90´s, when the Siscomex system was introduced. Since then, with the expressive 
growth of the Brazilian trade flows, new necessities of control arose to fulfill important public 
policies coordinated by several agencies concerning human health, enviro nment, food safety, 
consumer safety etc. At each new control that was established, new procedural steps were 
introduced, not always in a harmonious way.  WT/TPR/M/358/Add.1  
 
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  The new process flow in implementation by the Brazilian Single Project (Portal Único de Comércio 
Exteri or) aims to harmonize these procedures and is expected to be fully operational by the end of 
2018.  
Page 56, para 3.56  
"Under Brazil's legislation, AD and CV investigations may be initiated simultaneously for the same 
product. However, an AD measure and a C V measure cannot be imposed simultaneously on a 
given product for the purpose of neutralizing the same situation of dumping or export subsidy. " 
Question 7:  Concerning the NME issue, is there any plan of amendment concerning calculating 
the normal value by using the Chinese Respondent 's domestic sales price, production cost, or 
constructed value, instead of using "surrogate country" approach , especially from 
December  12th 2016 as per Article 15 of the China 's concession to WTO?  
The Brazilian AD Regulation i s not specific to any country. So, provisions related to NME are not 
supposed to be amended as a result of the expiration of a specific clause. Particularly in the case 
of China, it must be highlighted that its Protocol of Accession to WTO was incorporated  into the 
Brazilian legal framework in 2005. Consequently, the provisions contained in such document shall 
be observed by Brazilian authorities.  
Page 59, para 3.76 & page 60 para 3.77  
"Predominantly export -oriented enterprises (deriving more than 50% of th eir gross sales income 
from abroad) remain eligible for suspension of the PIS, COFINS, and IPI taxes on the purchase of 
inputs, whether local or imported. " 
"A similar eligibility criterion is applied under the Special Regime for the Purchase of Capital Goo ds 
for Exporting Enterprises (RECAP), which suspends the PIS and COFINS on purchases of new 
(unused) capital goods (machines, equipment, and instruments) for incorporation in the 
beneficiary company's fixed assets. Enterprises that, in the calendar year pr eceding application to 
RECAP, made at least 50% of their total gross sales abroad  may benefit from the scheme, 
provided they commit to complying with the minimum export sales threshold for the following two 
calendar years. Start -up companies without the pr edominantly export -oriented status are eligible 
on condition that they reach and maintain that status over three years. Brazilian shipyards are also 
eligible for RECAP benefits, irrespective of their export turnover, and do not need to undertake 
export com mitments. " 
Question 8:  It seems that the above -mentioned measures constitute the export subsidies 
prohibited in the WTO Agreement on Subsidies and Countervailing Measures. Could Brazil please 
provide further explanation?  
The measures are not export subsidies. The "Special regime for the acquisition of capital goods for 
exporting companies" (RECAP) suspends the levy of the PIS/COFINS on new machinery, tools, 
apparatuses, instruments and equipment for incorporation into tang ible fixed assets by 
predominantly exporting companies.  
The purpose of this program is to avoid the structural accumulation of tax credits.  
Brazil has a system of value -added taxation along the production chain, which means that the 
taxes paid in prior s teps of the production chain may be used as credits, which, as a general rule, 
are offset against the debits accumulated in subsequent steps of the production chain.  
Some companies in Brazil tend to structurally accumulate tax credits, since their sales ar e subject 
to low or no taxation at final stages of production. As a result, these "predominantly credit -
accumulating companies " structurally accumulate tax credits and must submit a great number of 
tax reimbursement requests on a regular basis, putting a h eavy burden on them and on the tax 
authorities. All those companies that structurally accumulate credits can apply for an alternative 
method of tax administration, under which taxes are suspended on purchases of inputs and capital 
goods and, in consequence , taxes resulting from sales must be paid in full without the utilization of 
any credits.  WT/TPR/M/358/Add.1  
 
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  "Predominantly exporting companies" are among those taxpayers that naturally tend to 
accumulate credits along the production chain, since taxes are not levied on thei r exports. So, the 
tax suspension under the RECAP regime simply prevents the accumulation of tax credits and the 
administrative burden – for the government and the companies – related to the reimbursement of 
taxes not due in the first place that would be c ollected.  
Page 60, para 3.80 & page 61, para 3.81  
"The Special System of Industrial Depots subject to Standardized Control (RECOF) allows the 
suspension (for one year, extendable once) of import duties and indirect taxes (IPI, PIS, COFINS) 
on imported or l ocal inputs employed in the industrial transformation of products destined for 
export or the domestic market. Domestic sales of any (local or imported) inputs or the final good 
are subject to all applicable duties and taxes. During the period under review,  Brazil relaxed 
several eligibility criteria (paid -in capital, prior accreditation to the "blue line" express clearance 
facility, and annual export volume) and removed the sector -specific and product -specific 
limitations on the scheme's scope. As from 2016 , beneficiaries are no longer required to acquire 
purpose -built control systems because the RFB switched to compliance monitoring through the 
Public System of Digital Bookkeeping (SPED). Under the upgraded RECOF -SPED, beneficiaries 
must: (i) regularly subm it their digital fiscal records (EFD); (ii) export final goods worth at least 
80% of the annual value of imports and not less than US$5  million; and (iii) carry out the 
industrial transformation of at least 80% of the imported goods. As at January 2017, th ere were 
25 companies qualified under RECOF. " 
"Brazil continues to apply the Special Regime for the Information Technology Exportation Platform 
(REPES), targeting companies dedicated exclusively to the development of software and the 
provision of IT servic es. REPES suspends the IPI on imported goods without a domestic equivalent 
(except second -hand ones) for their incorporation as fixed assets, as well as the PIS and COFINS 
on purchases of IT services and new goods. Beneficiaries must export software and IT  services 
worth at least 80% of their annual gross income. " 
Question 9: Does Brazil permit the processing trade outside the export -processing zones? If so, 
could Brazil introduce the relevant policies?  
The establishment of Brazilian export companies is no t restricted to the export -processing zones. 
The regulatory framework to the Brazilian EPZ regime is applied only to the companies established 
in the export -processing zones.  
Page 61, para 3.82  
"The legal and institutional framework for export -processing z ones (EPZs) remains unchanged 
since Brazil's last Review. The National Council of Export Processing Zones (CZPE) remains in 
charge of implementing Brazil's EPZ policy, including authorizing the creation of EPZs and the 
establishment of companies therein. T he operationalization of an EPZ also requires the Brazilian 
customs authority's permission and final approval from the President of the Republic. Approved 
EPZs that fail to start operations within 48 months of their agreed installation timetable may lose 
their right to establish. As of January 2017, Brazil had 25 approved EPZ projects, of which 1 was 
operational and 18 (located in 17 Brazilian states) were in the process of establishment. " 
Question 10:  Please clarify the detailed policies regarding the establishment of companies in the 
export -processing zones(EPZs) and whether the preferential policies provided in the EPZs are 
against the rules stated in the WTO Agreement on Subsidies and Countervailing  Measures.  
The measures comply with the WTO Agreement on Subsidies and Countervailing Measures. The 
legal framework for EPZ in Brazil includes Law No. 11,508 of 20 July 2007, as amended by Law 
No. 11,732 of 30 June 2008, Law No. 12,507 of 11 October 20 11, and Law 12,865 of 
9 October  2013, as well as Decree No. 6,634 of 5 November 2008, Decree No. 6,814 of 
6 April 2009 , Normative Instruction RFB No. 952 of 2 July 2009 , and CZPE Resolutions.  
The National Council of Export Processing Zones (CZPE) oversees the implementation of Brazil's 
EPZ policy and is responsible for granting companies authorization to establish in EPZs. 
Authorizations are valid for until 20 years, renewable for the same numb er of years. Companies WT/TPR/M/358/Add.1  
 
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  that wish to establish in an EPZ must submit an application to the CZPE in accordance with the 
procedures laid out in Decree No. 6,814 of 6 April 2009 and Resolution CZPE No. 5 of 
28 September 2011. Proposals for the creation of an E PZ are to be submitted by state or municipal 
authorities to the CZPE, in accordance with the procedures established in Decree No. 6,814 of 6 
April 2009, and the CZPE Resolution no. 2 of 15 May 2009. Final approval to the EPZ creation rests 
with the Preside nt of the Republic. Permission from the Brazilian Customs Authority is also 
required for the operation of an EPZ. Approved EPZs that fail to start operations within 48 months 
of their agreed installation timetable may lose their right to establish.  
Page 61 , para 3.87  
"Outward payments for the promotion of Brazilian products and services abroad are eligible for a 
reduction of the applicable income tax (IR) to 0% (from the standard 25%). To benefit from the 
reduction, the legal person making the outward payme nt must register  the promotion transaction 
in the Registration System for Promotion Information (SISPROM) prior to remitting the amount 
due. SISPROM registration is declined if the payment beneficiary is based in a jurisdiction that 
taxes income at less th an 20%. During 2013 -16, there were 1,102 registered beneficiaries and 
10,506 promotion transactions. Forgone revenue from the IR reduction was estimated at some 
R$23.9 million in 2013 and projected at R$23.3 million in 2014, R$31.7 million in 2015, and 
R$38.6 million in 2016. " 
Question 11:  It seems that the above -mentioned measures constitute the export subsidies 
prohibited in the Subsidies and Countervailing Measures Agreement. Could Brazil please provide 
further explanation?  
As a rule, Brazil applies wit hholding tax to any payment for services provided by non -residents. 
This measure consists in a reduction to 0% of the withholding tax rate applied on outbound 
payments to some services provided by non -residents, therefore, it does not represent a reduction  
of the tax applied on exported products, nor on the profit that Brazilian exporters may have.  
This measure aims at some services related to the promotion of Brazilian products and tourism in 
Brazil, and the reduction applies only on services related to:  
a. market research;  
b. rent of exhibition stands;  
c. rent of venues for exhibitions and fairs;  
d. promotion and advertising in the venues in letter c.  
Furthermore, there is no export performance criteria, nor nothing related to the use of domestic 
over imported g oods related to the measure, so there is no relation to prohibited subsidies in the 
light of the SCM Agreement.  
Page 64, para 3.95  
While access to export financing is framed by a general list of eligible goods and services, certain 
BNDES -EXIM sub -programme s may target specific products or industries. In addition, for most 
sub-programmes, automatic qualification for financing is conditional on meeting a certain index of 
nationalization (typically 50% -60% in value or weight terms), Basic Productive Process (P PB) 
thresholds (Section  3.3.1.1), or other criteria established by BNDES (Table  A3.1). According to the 
Brazilian authorities, goods and services that do not meet these conditions may also benefit from 
the sub -programmes after receiving a favourable assess ment (non -automatic qualification).  
Question 12:  Could Brazil please provide detailed information on the conditions and requirements 
that should be met in order to benefit from g BNDES -EXIM sub -programs?  
Companies applying for loans of BNDES must:  
i. Be legally incorporated in Brazil and have established operations in Brazil;  
ii. Have a satisfactory credit rating;  
iii. Be compliant with all legal, tax, and social obligations;  
iv. Have no extraordinary restrictions or conditions on record;  WT/TPR/M/358/Add.1  
 
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  v. Present a pro ject plan that is viable; and  
vi. Provide suitable and sufficient collateral to cover the risk of the operation.  
All enterprises shall observe existing legislation for the protection of the environment and the 
conservation and rational use of energy, the e xpenses for which may also be financed by the Bank.  
BNDES -EXIM subprograms provide export finance at conditions compatible with those practised by 
other Export Credit Agencies (ECAs) around the world.  
Question 13:  The automatic qualification is conditional , such as "certain index of nationalization 
(typically 50% -60% in value or weight terms) ". This policy is suspected of violating WTO 's basic 
principle of non -discrimination. Could Brazil please provide further explanation?  
The eligibility or receipt of loans is not affected by the use of domestic or imported goods. Items 
produced in Brazil with a previously known reference of local content are eligible for financing in a 
more automatic way, and products that do not reach such a reference also benefit fro m the 
program subject to a less automatic analysis procedure. Thus, the eligibility for financing under 
BNDES -EXIM is not contingent, either in law or in fact, upon local content requirements.  
Page 65, para 3.100  
"As from 2014, the Brazilian Guarantees Age ncy (ABGF), a public enterprise reporting to the 
Ministry of Planning, Development and Management, provides support in the administration of the 
federal export credit insurance (SCE) scheme backed by the FGE. The ABGF is responsible for the 
structuring, ma nagement and monitoring of SCE operations. The granting of SCE coverage is 
underwritten by the Secretariat for International Affairs (SAIN) of the Ministry of Finance. The FGE 
is financed by resources from the federal budget and by proceeds and financial g ains from the 
fund's own activities and financial operations. According to the authorities, there are no other 
export insurance or guarantee schemes funded by federal resources in Brazil. " 
Question 14:  Is a balance achieved between financial revenues and e xpenditures judging from 
the net profits from the export credit insurance business of Brazilian Guarantees Agency (ABGF) 
during 2014 -2016?  
ABGF is hired by the Federal Government for the structuring, management and monitoring of 
Export Credit Insurance (S CE) operations. The public company does not undertake the risks from 
operations it analyses, since the granting of coverage is underwritten by the Ministry of Finance. 
The SCE support is backed by the Export Guarantee Fund (FGE). Therefore, the balance bet ween 
financial revenues and expenditures of the Export Credit Insurance should be measured from the 
FGE perspective.  
Question 15:  Is there any legal basis for Brazilian Guarantees Agency (ABGF) to provide  relevant 
policy support of export credit insurance to the steel, automobile and electric appliance industries? 
If any, please provide detailed provisions of the laws or regulations.  
The export credit insurance is provided by the Federal Government, represented by the Ministry of 
Finance, which contracts A BGF for the structuring, management and monitoring of SCE operations. 
The export credit insurance (SCE) is backed by the Export Credit Fund (FGE).  
The Export Credit Insurance is regulated by Law No 6,704 o f 26 October 1979 and Decree 
No. 3,937 of 25 September 2001. The Export Credit Fund is regulated by Law No 9,818 of 
23 August 1999. According to these regulations the SCE can cover political, extraordinary and 
commercial risks in transactions above 2 years. Only Small and Medium companies  could have 
their transactions in shorter tenors.  
The product export credit insurance is not sector -limited. In other words, the SCE can be provided 
to any exporter, regardless of its sector. For informational purposes only, SCE/FGE haven't 
provided suppo rt to steel and electric appliance industries. When it comes to the automotive 
sector, coverage was provided to long term transactions to supply city busses systems.  WT/TPR/M/358/Add.1  
 
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  Page 74, para 3.135  
"At the national level, CONMETRO's non -binding Guide on Good Regulato ry Practices continues to 
frame, in principle, the elaboration, dissemination, periodic review, and elimination of technical 
regulations and conformity assessment procedures. Technical regulations may be established 
through laws, decrees, ordinances, norma tive instructions or resolutions, and should be published 
in the Official Journal ." 
Question 16:  Is there any English version of CONMETRO 's non -binding Guide on Good Regulatory 
Practices? Is it available on the Internet? Please kindly provide the website l ink if any.  
http://www.inmetro.gov.br/qualidade/pdf/guia_ingles.pdf . 
Question 17:  What are the differences, relations and/or subordination between the technical 
regulations established in different forms (laws, decrees, ordinances, normative instructions or 
resolution)?  
The national Constitution rests above all laws; laws above decrees. Constitutional amendments 
and laws are discussed and approved by Congress (Chamber of Federal Deputies and then Federal 
Senate, or the two together). Decrees are issued by  the President of the Republic in order to 
ensure the strict application of laws.  It is not usual to have a particular technical regulation 
explicitly mentioned in a law, only that a specific matter will be regulated by a certain federal 
regulatory body.  Decrees, in general, regulate the laws and also determine that the specific matter 
in question will be regulated by the said body.  Ordinances, normative instructions and resolutions, 
once issued by the regulatory body, under its field of competence, and pub lished in the Official 
Journal, become mandatory, having the same status.  
Page 74, para 3.136  
"In general, labelling requirements relate to the products' quality, quantity, composition, 
guarantee, shelf life, origin, and risks to consumer health and safety. " 
Question 18:  What does "risks to consumer health and safety " specifically refer to? Are food 
allergens included?  
Risks to consumer health and safety are usually related to composition aspects that might 
represent risks to specific consumers group s. Food allergens and intolerances warnings are 
examples of this type of labelling requirements.  
Question 19:  Could Brazil please introduce its compulsory or recommended standards or 
requirements of the labels and logos indicating food allergens?  
The requ irements for the labelling of food allergens are set by Resolution RDC 26/2015.  
Page 75, para 3.143  
"As at March 2017, there were 7,815 standards in force in Brazil. Between  January  2013 and 
January  2017, Brazil adopted 2,557 new standards, some 33% of whi ch were adoptions of 
international (ISO/IEC) standards. Similar statistics on technical regulations were not made 
available. Between January 2013 and April 2017, Brazil made 193 regular notifications to the WTO 
Committee on Technical Barriers to Trade, for  the most part under Article 2.9 of the TBT 
Agreement. In only 12 of the notified cases (6.2% of the total), the timeliness of the submission 
allowed for a comment period of 60 days or more, whereas in 21.7% of all cases the comment 
period was less than 45  days. " 
Question 20:  Please provide the ratio between domestic standards and international standards.  
As explained in paragraph 3.143, about a third of the Brazilian voluntary standards, issued by 
ABNT, the only Brazilian National Association of Technical  Standards, are translations of ISO/IEC 
standards . WT/TPR/M/358/Add.1  
 
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  Question 21: Please provide more details on the procedural reporting system.  
Inmetro (National Institute of Metrology, Quality and Technology) is the National Notification 
Authority and the Enquiry Point to the WTO, under the TBT Agreement.  Technical regulations that 
should be notified are identified daily upon their publication in the Official Journal and the 
corresponding notifications are prepared and submitted to WTO.  If any doubt arises during the 
preparation of a notification, the regulatory body is contacted for clarification.  The electronic link to 
the full text in Portuguese is always provided in the notification form.  Most of public consultations, 
more than 60%, allows for comments during 60 days,  as from publication in the Official Journal.  
Page 124, para 4.92  
"Several export incentives are available…Although the Reintegra refund rate was to vary from 
0.1% to 3% of export revenue, with a possible additional credit of 2% subject to certain criteria, 
during the review period, the rate of additional tax refunds was reduced as part of the 
Government's budget -cutting efforts. Its maximum refund rate was reduced temporarily from 3% 
of the export revenue to 1% in March 2015, and 0.1% in 2016; the National Export Plan set the 
rate at 2% in 2017 and 3% in 2018. In order to be eligible, exports must not contain more than 
40% imported content. Exceptions apply to goods deemed high -tech (such as aircraft, electronics 
and pharmaceuticals), which are allo wed a 65% imported -content limit. " 
Question 22:  The above -mentioned export incentives are suspected of constituting the prohibited 
subsidies contingent upon the use of domestic over imported goods in the WTO Agreement on the 
Subsidies and Countervailing me asures. Could Brazil provide further explanation?  
Reintegra provides for a rebate of the indirect taxes levied on the inputs that are consumed in the 
production process of the exported product. Reimbursements under Reintegra are currently 2% of 
the value of the exported product. Brazil has established that, in all sectors, these percentages are 
considerably lower than the tax residue in the supply chain of exported products. As such, 
Reintegra is fully compatible with footnote 1 and Annex I of the SCM Agre ement, given that 
reimbursements are not "in excess of" of accrued taxes. If the majority of the inputs are from 
abroad, the residue to be reimbursed is negligible.  
Page 126, para 4.97  
"Investments now tend to be more focused on sales within Brazil rather than part of a regional 
strategy implemented as a result of high tariff protection on automotive products from outside 
MERCOSUR. Most foreign producers have not integrated their Brazilian plants into global value 
chains. " 
Question 23: The foreign capital i nflow into Brazil 's automotive sector is on the rise, but domestic 
auto manufacturers still have low production efficiency due to the low degree of participation in the 
international division of labor in the industry. Considering the devaluation of Real an d the high 
tariff protection on automotive products, the cost of importing whole automobiles still remains high 
in Brazil. Is there any plan for Brazil to attract foreign capital inflow with preferential investment 
policies , in order to enhance the produc tion efficiency of domestic automobile manufacturing 
industry and satisfy the domestic demands for automobiles? If any, please specify in details.  
Aiming at increasing the competitiveness of the automotive sector and its competitive integration 
to global value chains, Brazil´s Government and private sector are debating the next cycle of 
automotive policy, named as Rota 2030 Mobilidade e Logística. The features of this future Brazilian 
automotive policy are still under discussions.  
Page 157, para 4.204  
Brazil has no de minimis  rule whereby goods below a certain value are exempt from customs 
duties and taxes. Virtually all international e -purchases are subject to a 60% flat/single 
equalization tax on the purchase price covering/compensating customs duty and o ther internal 
taxes/charges on imports. Certain medicines (upon submission of specific documentation) and 
printed books or periodicals are the only exceptions to these tax requirements. An exemption 
(excluding the ICMS tax) for packages valued at US$50 or less applies only to remittances issued WT/TPR/M/358/Add.1  
 
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  by an person to another person for personal use or gifts of lower value but not for commercial 
operations. A Simplified Taxation Regime applies to goods not exceeding US$3,000.  
Question 24: Please clarify the legal b asis of the 60% flat/single equalization tax for the 
e-purchases.  
In addition to the regular system of taxation, based on MERCOSUR Common External Tariff, 
optionally the imports through postal or courier services can be levied at a flat rate of 60%. This 
tariff replaces all federal taxes normally levied on regular imports, and the taxable base is the 
customs value of the goods (CIF bases) regardless of the tariff classification of the goods (they 
don't need to be classified). The legal basis of the regime is the Decree -Law No. 1,804 of 1980 and 
Portaria MF No. 156 of 24 June 1999.  
Page 157, para 4.4.6.2  
"E-commerce… " 
Question 25:  When are the existing tax policies for cross -border e -commerce import formulated 
and implemented? Which factors are mainly consid ered during the formulation and 
implementation? How are the scope of the commodity and import tax rate determined? What are 
the differences compared with the tax policies for general import?  
There is no difference between cross -border e -commerce imports a nd general imports regarding 
tax policies. The goods are subject to the same treatment at customs regardless of the nature of 
the transaction (electronic or otherwise).  
Question 26:  What problems and challenges does the cross -border e -commerce face in terms of 
import tax policies? How does Brazil solve the problems and challenges?  
The main problem related to e -commerce is the huge volume of consignments that need regularly 
and prope rly to be controlled by Customs administration and it has been managed with risk 
management and technology.  
Question 27: Does Brazil supervise the cross -border e commerce platforms? If so, please specify 
the supervisory requirements.  
There is no specific  supervision regarding transaction of goods through electronic platforms. Once 
they arrive at customs, goods purchased through electronic transactions are treated the same way 
as other imports, subject to the same procedures. As regards digital trade of se rvices between 
juridical persons, the parties are required to register their operations in Siscoserv, a computer -
based system in which are registered the sales and purchases of services, intangibles and other 
operations that modify the enterprise´s balance  of assets, made by residents or domiciled in Brazil 
to residents or domiciled abroad. The System was structured in accordance with the concepts 
provided by the General Agreement on Trade in Services (GATS) of the World Trade Organization 
(WTO). It generat es a statistical database of cross -border trade in services for both imports to and 
exports from Brazil.  
Part II. Questions based on Report by the Government of Brazil  
Page 21, para 4.15  
"A new general procedure for exports was developed in 2014 in coopera tion with the private 
sector. In December 2016, the new electronic procedures for export declaration and export cargo 
registration were made available for tests by the private sector. In March 2017, the new export 
process was implemented for the air transp ortation modal, and it is expected that the full 
implementation of the new procedures will occur by the end of 2017. " 
Question 28:  Could Brazil please introduce in detail the newly developed procedure for exports 
including the specific procedures for expor t cargo registration and the implementation of the new 
export process for air transportation modal?  WT/TPR/M/358/Add.1  
 
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  Information is available at the following address: 
http://portal.siscomex.gov.br/informativos/noticias -orgaos/noticias/portal -siscomex/portal -unico -
de-come rcio-exterior -passa -a-valer-para-exportacoes -feitas -nos-modais -maritimo -e-rodoviario  
Part III. Other questions  
Question 29:  It is understood that Brazilian Government promulgated the policy to improve of the 
IPI taxes on industrialized automobile products on September 15, 2011. According to the policy, 
the IPI tax rate levied on imported automobiles (including various types of trucks) or auto 
products manufactured by manufacturers that fail to realize the localization rate of 65% as 
required by Brazilian Go vernment shall be improved by 30%, i.e. from 7% -25% to 37% -55%. As 
a result, the cost of imported automobiles in the Brazilian market increased from 25% to 28%, 
which directly affected the competitiveness of imported automobiles in the Brazilian market. Si nce 
the aforesaid measures are suspected of violating WTO 's basic Principle of National Treatment 
could Brazil please kindly provide further explanations?  
This matter is under WTO dispute settlement procedures. As est ablished in Article 1 of 
Decree  7.819 of 2012, INOVAR - AUTO will expire on December 31, 2017. The features of the 
future Brazilian automotive policy are still under discussion.  
  WT/TPR/M/358/Add.1  
 
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  COLOMBIA  
Informe de la Secretaría WT/TPR/S/358  
2 REGÍMENES DE COMERCIO E INVERSIÓN  
2.1 Marco general constitucional e institucional  
El párrafo 2.7 del informe de la Secretaría señala que... "Con arregl o a lo dispuesto en el 
artículo  62 de la Constitución, el Presidente puede adoptar medidas provisionales sobre cuestiones 
que se consideren especialmente im portantes y urgentes. Las medidas provisionales entran en 
vigor tras su publicación y el Congreso debe analizarlas cuando se promulgan y votarlas en un 
plazo de 60 días, prorrogable una sola vez por otros 60 días; desde el 17 de mayo de 2013 se han 
adoptad o 153 medidas de este tipo. Por lo que respecta a las cuestiones fiscales, las medidas 
provisionales aprobadas antes de que concluya el ejercicio fiscal solo podrán aplicarse al 
presupuesto del año siguiente, excepto en el caso de los derechos de aduana so bre las 
importaciones, los impuestos de exportación, el impuesto sobre los productos industriales, el 
impuesto sobre operaciones financieras, o los impuestos extraordinarios creados en caso de 
guerra"  
1. ¿Dentro de las medidas que el presidente puede aplicar provisionalmente se 
incluye la adopción provisional de acuerdos o tratados internacionales de 
carácter comercial?  
2. En caso afirmativo, ¿en qué casos se ha aplicado?  
En Brasil, conforme a la Constitución Federal, la ejecución de los tratados internacionales y su 
incorporación al ordenamiento jurídico interno derivan de dos expresiones de voluntad: primero, la 
del Presidente de la República que posee la competencia privativa de celebrar esos actos de 
derecho internacional (CF, Artículo 84, VIII); Y segundo, la  del Congreso Nacional, que decide 
definitivamente, mediante decreto legislativo, sobre tratados, acuerdos o actos internacionales 
(CF, art. 49, I). La etapa posterior, también de competencia del Jefe de Estado, es su 
promulgación mediante decreto presiden cial para ejecución en territorio nacional.  
2.2 Estructura de formulación de la política comercial  
2.2.1 Divisiones del poder ejecutivo  
El párrafo 2.9 del informe de la Secretaría señala que... "La Cámara de Comercio Exterior (CAMEX) 
sigue estando a cargo de la formulación, aplicación y coordinación de las políticas y actividades 
relacionadas con el comercio exterior de bienes y servicios, incluido el turismo, con el objetivo de 
promover el comercio exterior, la inversión y la competitividad internacional d el país. Desde 
mediados de 2016, la CAMEX es parte de la Presidencia de la República y su principal órgano 
decisorio es el Consejo de la CAMEX, presidido por el Jefe de Gabinete de la Presidencia de la 
República y compuesto por los Ministros de Relaciones Exteriores, Hacienda, Agricultura, 
Ganadería y Abastecimiento, Industria, Comercio Exterior y Servicios, y Planificación, Desarrollo y 
Gestión, así como por el Secretario Ejecutivo de la Secretaría del Programa de Asociaciones de 
Inversión de la Presidenci a de la República. El 5 de agosto de 2016, la Secretaría Ejecutiva de la 
CAMEX se transfirió del Ministerio de Industria, Comercio Exterior y Servicios al Ministerio de 
Relaciones Exteriores, que representa al Brasil en la OMC y presta asistencia a la CAME X en las 
cuestiones relacionadas con la integración regional y el comercio. Las autoridades han indicado 
que el objetivo de transferir la presidencia del Consejo de la CAMEX a la Presidencia de la 
República es reforzar la coordinación de los órganos públic os encargados de las políticas de 
comercio y de inversión; además, la Secretaría Ejecutiva de la CAMEX se ha integrado en un 
ministerio que desempeña tradicionalmente una función de coordinación y negociación en favor del 
comercio.  
No obstante lo indicado en el párrafo 2.9., particularmente sobre la Presidencia del Consejo de la 
CAMEX,  
3. ¿Puede indicar por favor los motivos de dicho cambio, los cambios en el 
funcionamiento de la Cámara y qué se espera mejorar con la mencionada 
transferencia?  WT/TPR/M/358/Add.1  
 
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  CAMEX was transf erred back to the Ministry of Development, Industry, Trade and Services. It was 
a decision by the President of Brazil.  
4. ¿Puede Brasil suministrar cifras comparativas de la gestión de la CAMEX antes y 
después de la transferencia?  
Information is not availabl e. 
2.5 Acuerdos y arreglos comerciales  
2.5.2.1.1 MERCOSUR  
El párrafo 2.27 del informe de la Secretaría señala que... "El Grupo del Mercado Común (GMC) y el 
Consejo del Mercado Común (CMC) son los principales órganos ejecutivos y decisorios del 
MERCOSUR. La Comisión de Comercio del MERCOSUR se encarga de la aplicación de los 
instrumentos de política comercial común. Los Estados miembros del MERCOSUR comparten un 
arancel externo común (AEC), que entró en vigor el 1º de enero de 1995. Mediante decisiones del 
CMC se han admitido varias excepciones al AEC. Actualmente, todos los Estados miembros del 
MERCOSUR están autorizados a establecer una lista de excepciones, aunque hay disposiciones 
diferentes para cada país. En julio de 2015, mediante la Decisión CMC 26/15  se autorizó al Brasil a 
mantener una lista básica de excepciones nacionales al AEC, dentro de los límites de sus tipos 
consolidados en la OMC; el Brasil también está autorizado a solicitar la reducción temporal del AEC 
e importar bienes de capital y produ ctos de informática y telecomunicaciones con aranceles 
inferiores a los impuestos por el AEC (sección 3.1.3.1). También se prevén excepciones al AEC 
para los juguetes, los productos lácteos y los melocotones. Los sectores del azúcar y del automóvil 
son las  únicas excepciones al libre movimiento de mercancías en el MERCOSUR, y no se ha fijado 
ningún calendario para la inclusión del sector azucarero en el régimen de libre comercio del 
MERCOSUR. El comercio del sector del automóvil entre el Brasil y los miembr os del MERCOSUR se 
sigue rigiendo, en gran medida, por acuerdos bilaterales, que fueron renegociados en el período 
objeto de examen. Durante dicho período, el Brasil renegoció su acuerdo bilateral de libre 
comercio con la Argentina, el Uruguay y México (im puso un contingente arancelario que limitaba la 
entrada en régimen de franquicia de vehículos automóviles hasta 2019) (sección 4.3.5). Según las 
autoridades, existen planes de consolidar ACR paralelos, en los que está prevista la mejora del 
acuerdo vigente  con México y la posible aplicación en 2018 de un ACR entre el MERCOSUR y la 
República Bolivariana de Venezuela (el ACE -69 ya se ha firmado, y el sector del automóvil ya está 
parcialmente cubierto por el ACE -59)." 
5. ¿Puede Brasil, de manera individual, consolidar nuevos ACR en el marco de la 
ALADI? ¿Cuál es el soporte normativo de dicha autorización del Mercosur?   
De acuerdo con la decisión nº 32/00 del Consejo Mercado Común (CMC), Los Estados Partes del 
MERCOSUR debe n de negociar en forma conjunta acuerdos de naturaleza comercial con terceros 
países o agrupaciones de países extrazona en los cuales se otorguen preferencias arancelarias.  
Respecto a los temas no arancelarios, Brasil y los demás Estados Partes del MERCOS UR pueden 
negociar acuerdos regionales de manera individual.  
Una variación a la regla de la Resolución 32/00 está establecida en el ACE 54, negociado 
conjuntamente entre los Estados Partes del MERCOSUR y México, cuyo artículo 2º determina que:  
"1.- Forman parte del presente Acuerdo de Complementación Económica los siguientes Acuerdos:  
"los Acuerdos celebrados o que se celebren por los Estados Unidos Mexicanos con cada uno de los 
Estados Partes del MERCOSUR en el marco del Tratado de Montevideo 1980: ANEXOS I (Estados 
Unidos Mexicanos – República Argentina), II (Estados Unidos Mexicanos – República Federativa del 
Brasil) , III (Estados Unidos Mexicanos – República del Paraguay) y IV (Estados Unidos Mexicanos 
– República Oriental del Uruguay);  
el Acuerdo en el  sector automotor entre el MERCOSUR y los Estados Unidos Mexicanos; y sus 
respectivos Anexos (ANEXO V)  WT/TPR/M/358/Add.1  
 
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  los Acuerdos que se celebren entre el MERCOSUR y los Estados Unidos Mexicanos en el marco del 
presente Acuerdo y del Tratado de Montevideo 1980."  
6. ¿Cómo se aplicarían las disposiciones del ACE -69, frente al vigente ACE -59?  
El ACE 69 (Brasil -Venezuela) y el Protocolo de Adhesión de Venezuela al MERCOSUR hacen 
mención expresa a la preservación de algunos regímenes previstos en el ACE 59, en especial: el 
sector automotor (artículo 4º del ACE 69) y reglas de origen (artículo 3º del ACE 69 y artículo 5º 
del Protocolo de Adhesión).  
El Protocolo de Adhesión de Venezuela está disponible en el siguiente enlace: 
http://www.sice.oas.org/Trad e/MRCSRS/ProtAdhVenezuela_ s.pdf.  
El Acuerdo de Complementación Nº 69 está disponible en el siguiente enlace: 
http://www.aladi.org/biblioteca/publicaciones/aladi/acuerdos/ace/es/ace69/ACE_069.pdf.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.1 Procedimientos y requisitos aduaneros y valoración en aduana  
El párrafo 3.1 del informe de la Secretaría señala que... "Desde 2014 se viene trabajando en la 
agilización de los procedimientos y trámites de comercio exterior en el marco del Programa de 
Ventanilla Única de Comercio Exterior (Programa Portal Único de Comercio Exterior). Este 
programa se centra en la mejora de las intervenciones y los flujos de información entre todos los 
colectivos interesados que participan en la importación, exportación y tránsito de mercancías. A 
menos que gocen de una exención, las importaciones comerciales deben declararse en el Sistema 
Integrado de Comercio Exterior (SISCOMEX), que se está rediseñando para convertirlo en un 
sistema consolidado de ventanilla única para el comercio de mercancías antes de finales de 2018."  
7. ¿Cuáles son las exenciones a declarar en el SISCOMEX?   
En se tratando de importaciones comerciales, exceptuase de declaración en el Siscomex aquellas 
de valor inferior a US$ 500 importados por la administración pública federal, de los estados e de 
las municipalidades y las de bienes importados por misiones diplomáticas y con sulares y de 
organismos internacionales y de sus funcionarios, peritos o técnicos.  
Una lista con todas las situaciones en las cuales se puede utilizar formularios de declaración de 
importación se encuentra en el artículo 4 de la Instrucción Normativa SRF N º 611 de 2006.  
El párrafo 3.2 del informe de la Secretaría indica que... "El acceso al SISCOMEX lo administra la 
Secretaría de Ingresos Federales del Brasil (RFB), que otorga a los usuarios acreditaciones 
(habilitaçoes) de validez ilimitada, gratuitamente.  Dependiendo de su capacidad financiera 
estimada, los solicitantes tienen derecho a uno de los tres tipos de acreditación siguientes: 
urgente (valor c.i.f. de las importaciones con un tope de 50.000 dólares EE.UU. por semestre); 
limitada (valor c.i.f. de l as importaciones con un tope de 150.000 dólares EE.UU. por semestre); o 
ilimitada. Según las autoridades, los topes del valor de transacción en los dos primeros tipos de 
acreditación tienen por objeto mitigar los riesgos. Para poder obtener una acreditació n ilimitada, 
los importadores deben demostrar que su capacidad financiera real es superior a 150.000 dólares 
EE.UU. por semestre. Si se rechaza una solicitud de acreditación o de revisión de la capacidad 
financiera estimada, no se tendrán en cuenta las sol icitudes presentadas en los seis meses 
siguientes al rechazo."  
8. ¿Ha sucedido que empresas soliciten una acreditación ilimitada y la RFB les 
otorgue una acreditación urgente o limitada, aun cuando no haya sido solicitada?  
Sí. Eso puede ocurrir se la empresa  no demostrar capacidad financiera suficiente para una 
habilitación ilimitada o tiene urgencia en la acreditación.  
9. ¿Existe una segunda instancia para las empresas que soliciten una acreditación 
ilimitada y sean objeto de rechazo de la misma?  WT/TPR/M/358/Add.1  
 
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  Sí. Como todas  las demás decisiones administrativas, el rechazo de una solicitación de acreditación 
puede ser revista.  
10. ¿Cuál es el procedimiento para acudir a una segunda instancia y cuál es el 
sustento jurídico?  
Todas las informaciones al respecto están dispuestas en el artículo 19 de la Instrucción Normativa 
RFB Nº 1.603 de 20164 
11. ¿Mientras las empresas acuden a la segunda instancia, hay algún procedimiento 
expedito que ofrezca una solución a las dos partes?  
Todas las informaciones al respecto están dispuestas en el a rtículo 19 de la Instrucción Normativa 
RFB Nº 1.603 de 2016.  
12. ¿El tipo de acreditación está vinculado de alguna manera con la calificación del 
importador para efecto del trámite de las declaraciones de importación en 
canales determinados por el riesgo?  
No. El procedimiento de acreditación tiene dos objetivos principales: posibilitar a un comerciante 
acceder al sistema integrado de comercio exterior (SISCOMEX) a través de una contraseña; y 
evitar la interposición fraudulenta de terceros y el acceso de emp resas falsas en el comercio 
internacional. En principio, este procedimiento debe hacerse una única vez y no tiene relación con 
el trámite de las declaraciones aduaneras. Los canales de verificación dependen siempre de 
evaluación de riesgo . 
El párrafo 3.3 d el informe de la Secretaría señala que... "Después de realizar su primera 
transacción en el marco del SISCOMEX, los importadores quedan inscritos automáticamente en el 
Registro de Exportadores e Importadores (REI), que mantiene la Secretaría de Comercio Ex terior 
(SECEX) en el Ministerio de Industria, Comercio Exterior y Servicios (MDIC). La inscripción en el 
REI es gratuita y su validez es ilimitada, pero puede ser suspendida (por un máximo de dos años) 
o anulada como sanción por la comisión de un fraude de  importación. Las transacciones de 
importación con plazos de pago superiores a los 360 días todavía deben registrarse en el Banco 
Central."  
13. ¿Ante la suspensión o anulación de su inscripción en el REI, y al no tratarse de un 
sistema administrado por la RFB,  existe una segunda instancia para que las 
empresas acudan?  
En Brasil, todas las decisiones de los órganos administrativos pueden ser revistas por el poder 
judiciario.  
14. Cómo se determina la transparencia frente a los procedimientos de la SECEX para 
la susp ensión o anulación de una inscripción en el REI?  
 Los procedimientos relativos al proceso de suspensión siguen la regla general de la ley federal 
n°9.784 de 1999, que garantiza el derecho de defesa y establece plazos para los tramites, visando 
la protecci ón de los derechos de los administrados y al mejor cumplimiento de las finalidades de la 
Administración.  
El párrafo 3.14 del informe de la Secretaría señala que... "Según las autoridades, el tiempo medio 
de despacho de aduana en los puestos aduaneros de to do el país fue de 40,32 horas en 2013, 
39,35 en 2014, 35,29 en 2015 y 34,16 en 2016. Estas estadísticas, además de reflejar unas 
muestras más amplias, difieren de las cifras del Banco Mundial por el tipo de procedimientos de 
despacho que se han tomado en c onsideración."  
15. ¿Bajo qué metodología se establece el tiempo del despacho de aduana en los 
puestos aduaneros de Brasil y que ordenamiento jurídico aplica?  
                                                
4 http://normas.receita.fazenda.gov.br/sijut2consulta/link.action?idAto=70354.  WT/TPR/M/358/Add.1  
 
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  Actualmente todavía se utiliza metodología nacional, que considera el tiempo entre el 
recibimiento de las cargas en local de despacho hasta su levante. Se está arreglando los 
sistemas informáticos de maner a permitir utilizar muy pronto la metodología recomendada 
pela OMA (Time Release Study).  
16. ¿Qué medidas ha adoptado Brasil para mejorar los tiempos en el proceso de 
importación de mercancías?   
En el ámbito del proyecto Portal Único de Comercio Exterior (ventanilla única aduanera) se está 
trabajando en la reingeniería de los procesos de control de la aduana pero también de los demás 
órganos y agencias de gob ierno que actúan sobre el control del comercio exterior. Con la misma 
reingeniería se busca también adecuar los controles a los procesos logísticos, de manera a 
controlar mejor y al mismo tiempo facilitar el comercio. El nuevo proceso de exportación está e n 
implementación desde enero de 2017 y se diseña hora el nuevo proceso de importación para 
implementación en 2018.  
El párrafo 3.18 del informe de la Secretaría señala que... "La proporción de declaraciones de 
importación correspondientes a productos despac hados mediante el método del valor de 
transacción fue del 99,87% en 2013, el 99,89% en 2014, el 99,66% en 2015 y el 99,56% en 
2016. Cuando es necesario, se recurre a métodos alternativos, siguiendo la jerarquía establecida 
en el Acuerdo sobre Valoración en  Aduana. Las autoridades afirman que el Brasil no utiliza precios 
mínimos ni precios de referencia para determinar el valor de aduana de las mercancías 
importadas."  
17. ¿Existe alguna instrucción verbal o escrita al interior de la RFB que sirva de 
instrumento a los inspectores de aduana para comparar los precios de las 
mercancías declaradas con los precios de mercado de mercancías iguales o 
similares?  
La selección para conferencia aduanera de declaraciones de importación es totalmente basada em 
gestión de riesg os. Como regla general, el valor en aduana es un tema que es tratado por medio 
de auditoría posterior al despacho y la selección para auditoría posterior puede resultar también de 
la comparación de los precios declarados con precios de referencia basados e n importaciones de 
mercancías iguales o similares.  
3.1.4 Otras cargas que afectan a las importaciones  
El párrafo 3.37 del informe de la Secretaría señala que... "El régimen tributario interno del Brasil 
sigue siendo excesivamente complejo, en particular por lo que respecta al trato de los bienes y 
servicios importados. Las transacciones internas y transfronterizas están sujetas a varios 
gravámenes federales y subf ederales, como los siguientes: el impuesto sobre los productos 
industriales (IPI); el impuesto sobre la circulación de mercancías y la prestación de servicios 
(ICMS); las contribuciones al Programa de Integración Social (PIS) y a la financiación de la 
seguridad social (COFINS); y el impuesto sobre los servicios (ISS). No es raro que esos impuestos 
sean objeto de acumulación cruzada a efectos de la determinación de la base imponible. Además, 
su aplicación suele variar según el tipo de producto, la autoridad subfederal competente y la 
condición fiscal del importador."  
18. ¿Puede Brasil dar ejemplos claros sobre el cálculo de los impuestos del IPI, del 
ICMS, del PIS, del COFINS y del ISS, y en qué casos aplica a bienes nacionales, y 
en cuales a bienes importados?  
Imports of goods are, in general terms, subject to import tax and internal taxes applied at the 
border (IPI, ICMS, PIS and COFINS). With the exception of the import tax, all other taxes apply 
equally to domestic products. ISS also applies to the import of services.  
Párrafo 3.46 del informe de la Secretaría señala que… "El Gobierno Federal otorga concesiones de 
derechos e impuestos con arreglo a diversas iniciativas encaminadas a promover la inversión y la 
innovación o a lograr objetivos sociales. Las empres as establecidas en zonas de elaboración para 
la exportación (sección 3.2.4.2) y la Zona Franca de Manaos (sección 3.3.1.2) pueden acogerse a 
varias desgravaciones fiscales, por ejemplo para las importaciones de bienes y servicios Las WT/TPR/M/358/Add.1  
 
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  autoridades subfederal es también conceden reducciones sobre los impuestos de su competencia 
(sección 3.3.1). De acuerdo con las estimaciones y proyecciones de la RFB, los ingresos 
sacrificados debido a concesiones arancelarias oscilaron entre 3.400 y 4.900 millones de reales 
durante el período 2013 -2017. Se ha estimado que las pérdidas de ingresos debidas a las 
concesiones del IPI para las importaciones fueron casi igual de cuantiosas (cuadro 3.5)."  
19. ¿Puede Brasil listar la totalidad de las concesiones otorgadas?  
La Secretaria d e Ingresos Públicos Federales de Brasil (RFB) publica en su sitio web5 todas las 
concesiones efectivamente otorgadas o sus proyecciones para los impuestos y contribuciones 
sociales federales.  
3.1.5 Prohibiciones, restricciones y licencias de importación  
El párrafo 3.51 del informe de la Secretaría indica que… "A finales de 2016, las importaciones 
correspondientes a unas 137 líneas arancelarias estaban sujetas a licencias automáticas, mientras 
que las prescripciones en materia de licencias no automáticas se aplicaban a al menos 5.460 líneas 
(más de la mitad del Arancel del Brasil).69 En el período 2013 -2016, las principales adiciones a la 
lista de importaciones sujetas a licencias no automáticas fueron las especies amenazadas (unas 
200 líneas arancelarias) y varios productos manufacturados (por ejemplo, las partes de 
automóviles). Según las autoridades, la aplicación del Progra ma de Ventanilla Única 
(sección  3.1.1) reportará soluciones más eficaces para la ejecución de las políticas públicas, lo que 
permitirá reducir significativamente el número de prescripciones en materia de licencias de 
importación."  
20. ¿Cuál es el criterio que utiliza Brasil para determinar los productos que requieren 
licencia automática o no automática?  
As a general rule, Brazilian imports are exempted from licensing. In those cases, no Import 
License is required. In some cases, however, licensing is required, which may be automatic or 
non-automatic, depending on the product. In order to verify the produc ts that require the import 
license, the information on the precise "Administrative Treatment" of the merchandise can be 
obtained on -line, free of charge, at SISCOMEX.  
The list of goods and operations requiring licenses can be verified at the following link : 
http://www.mdic.gov.br/index.php/comercio -exterior/importacao/tratamento -administrativo -de-
importacao. There is not a unique criteria determing whether licensing is authomatic or not, 
because different rules and regulations govern the work of each agency  which authorizes import, 
export or transit operations.  
21. Teniendo en cuenta el alto número de líneas arancelarias sujetas a licencias no 
automáticas, ¿el gobierno de Brasil tiene planes para revertir tal situación y 
aumentar en número, la concesión automáti ca de licencias de importación?  
The Brazilian government launched a project to review the full scope of its import licensing regime 
in order to streamline it, whenever possible. However, this is a complex and delicate endeavour, 
involving a large number o f accredited agencies, most of which enjoy administrative 
independence. Morever, the desired outcome will lead to changes in procedures, standards and, 
possibly, laws, which depend on congressional approval. The review of the Import Licenses regime 
in Braz il is being coordinated by a Working Group on Trade Regulations established by CAMEX with 
the support of the National Trade Facilitation Committe (CONFAC).  
22. ¿De qué manera el gobierno de Brasil ha pensado simplificar los trámites y 
procedimientos para el es tudio y aprobación de las licencias no automáticas?  
The procedures for licensing already follow clear and transparent rules. Brazil' s commitment to 
tranparency and fair treatment is reflected in Brazil' s notifications at the Import Licensing 
Committee and  in the detailed and consolidated information of all products that require automatic 
                                                
5 https://idg.receita.fazenda.gov.br/dados/receitadata/renuncia -fiscal/demonstrati vos-dos-gastos -
tributarios/bases -efetivas.  WT/TPR/M/358/Add.1  
 
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  and non -automatic licensing through following links: www.mdic.gov.br/index.php/ 
comercioexterior/importacao/tratamento -administrativo -de-importacao and 
www.portalsiscomex. gov.br/. The importer may request licensing through SISCOMEX directly from 
its institution, once registered, or through institutions registered for that end.  
23. ¿En los casos de rechazo o negación de una licencia, el solicitante es informado 
con claridad sob re los motivos de dicho rechazo o negación?  
Yes. Requests of license may be refused if they do not fulfil the requirements of the applicable 
legislation, as in the case of imports which may threaten human or animal health or cause 
environmental risks. Denials can be challenged by the applicant.  
3.1.6 Medidas antidumping, compensatorias y de salvaguardia  
El Párrafo 3.56 del informe de la Secretaría señala que... "Con arreglo a la legislación brasileña, 
pueden iniciarse simultáneamente investigaciones antidu mping y en materia de derechos 
compensatorios para el mismo producto. Sin embargo, no pueden imponerse simultáneamente 
medidas antidumping y compensatorias respecto de un producto determinado con objeto de 
neutralizar la misma situación resultante del dump ing o de la concesión de subvenciones a la 
exportación."  
24. ¿De qué manera el gobierno de Brasil garantiza que los importadores de 
productos sujetos a una medida antidumping, pero originarios de países 
diferentes a los que se aplicó la medida, no se vean afec tados por controles 
excesivos, y que sus mercancías no se envíen al canal rojo de manera 
automática?  
According to the Brazilian regulations, antidumping or countervailing duties shall be collected after 
all requirements for application of duties have been met.  
3.3.2 Normas y otras prescripciones técnicas  
Párrafo 3.143 del informe de la Secretaría señala que… "En marzo de 2017, había 7.815 normas 
en vigor en el Brasil. Entre enero de 2013 y enero de 2017, el Brasil adoptó 2.557 nuevas normas, 
de las cuales, alrededor del 33% eran normas internacionales (ISO/CEI). No se disponía de 
estadísticas similares sobre los reglamentos técnicos. Entre enero de 2013 y abril de 2017,  el 
Brasil presentó 193 notificaciones ordinarias al Comité OTC de la OMC, la mayoría de conformidad 
con el párrafo 9 del artículo 2 del Acuerdo OTC. La fecha de presentación solo permitió disponer de 
un período de 60 días o más para formular observaciones  en 12 de los casos notificados (el 6,2% 
del total), mientras que en el 21,7% de los casos el período fue inferior a 45 días"  
25. ¿Puede Brasil informar a que se debe el bajo número de casos notificados con 
plazo de 60 días o más para observaciones?  
Most notif ied regulations allow for a consultation period between 45 and 60 days. However, a 
slight delay may often occur between the time of publishing the draft regulation in the Official 
Journal, relaying it to the Enquiry Point, notifying to WTO and finally havi ng it uploaded in the WTO 
system. It should be stressed, however, that comments from WTO members have been considered 
by the Brazilian authorities even after the closure of the pre -defined period for receiving them. 
Brazil is constantly working to improve its information system.  
It is also important to note that, in exceptional cases, depending on the urgency for 
intervention of the regulatory authority, some normative acts are published directly in the Official 
Journal without previous public consultation  or with a shorter consultation period. In general, 
however, these acts consist of minor changes or additions to existing regulations, and do not enact 
completely new regulations or restrictive obligations. Some other cases relate to minor textual 
correcti ons, such as typing and spelling mistakes, incorrect references to standards, or extensions 
of the period of adjustment to existing regulations. There are a few other cases that require an 
immediate public response due to risks related to safety and health  of consumers, such as acts 
banning or recalling products. Similar arguments apply to the period of entry into force of a 
regulation.  WT/TPR/M/358/Add.1  
 
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  26. ¿De qué manera Brasil ha considerado aumentar este plazo?  
Brazil is studying the possibility of extending the consultation  period beyond 60 days so that the 
few days use in the notification process does not affect the opportunity for comments.  
3.3.6 Contratación pública  
El párrafo 3.174 del informe de la Secretaría señala que... "El Brasil no es parte ni observador en 
el Acue rdo plurilateral sobre Contratación Pública de la OMC (ACP). El Acuerdo de Expansión 
Económica y Comercial entre el Brasil y el Perú, firmado en abril de 2016, contiene un capítulo 
dedicado a la contratación pública. El Brasil participa en las negociacione s en curso sobre el 
Protocolo de Contrataciones Públicas del MERCOSUR, así como en las negociaciones de un acuerdo 
de libre comercio entre el MERCOSUR y la UE, que también incluyen un capítulo sobre la 
contratación pública."  
27. ¿El gobierno de Brasil tiene pl anes con respecto a ser parte u observador del 
Acuerdo plurilateral sobre Contratación Pública de la OMC (ACP)?  
In this regard, Brazil has engaged in bilateral or regional initiatives related to public procurement 
commitments based on the WTO GPA principl es.  
28. ¿Brasil adelanta otras negociaciones bilaterales o multilaterales en materia de 
contratación pública?  
Yes. Brazil is also involved in bilateral negotiations involving public procurement with Chile, México 
and within Mercosur. Moreover, ongoing negotiations between Mercosur and the European Union, 
as well as between Mercosur and the European Free Trade Agre ement (EFTA) include public 
procurement commitments.  
Brazil is in advanced negotiations with Mexico and Chile. Negotiations with the European Free 
Trade Association (EFTA) are at an initial stage. Brazil expects to begin negotiations with Canada 
and Colom bia in the near future.  
4 POLÍTICAS COMERCIALES, POR SECTORES  
4.3 Manufacturas  
4.3.3 Medidas en frontera  
El párrafo 4.92 del informe de la Secretaría señala que… "Existen distintos incentivos a la 
exportación (por ejemplo el programa de desgravación fiscal , la devolución de los impuestos 
gravados en el marco del Programa de Integración Social (PIS) y la contribución a la financiación 
de la seguridad social (COFINS), la financiación oficial de las exportaciones, el Régimen Especial de 
Adquisición de Bienes d e Capital para Empresas Exportadoras (RECAP)), zonas especiales (por 
ejemplo zonas de elaboración para la exportación) y medidas adoptadas en virtud del Plan 
Nacional de Exportación, de junio de 2015). En el marco del Programa Reintegra se siguen 
efectuand o devoluciones de impuestos complementarias (sección 3.2.4.1).137 Con arreglo a la Ley 
13.043 de 2014, el Programa Reintegra, que se introdujo por primera vez en 2011 como parte del 
Plan Brasil Mayor y que debía expirar a finales de 2013, fue restablecido con carácter permanente. 
Aunque estaba previsto que la tasa de reembolso de Reintegra se situase entre el 0,1% y el 3% de 
los ingresos de exportación, con la posibilidad de obtener un crédito adicional del 2% a condición 
de que se cumplieran determinados c riterios, durante el período objeto de examen, la tasa de 
devolución de impuestos complementaria se redujo debido a los esfuerzos del Gobierno por 
recortar el presupuesto.138 La tasa de devolución máxima descendió temporalmente del 3% de 
los ingresos de ex portación al 1% en marzo de 2015 y al 0,1% en 2016; el Plan Nacional de 
Exportación fijó la tasa en el 2% en 2017 y el 3% en 2018. Para acogerse a la devolución, las 
exportaciones no deben incluir más de un 40% de contenido importado, excepto en el caso de  las 
mercancías consideradas de alta tecnología (como aeronaves, productos electrónicos y productos 
farmacéuticos), cuyo límite de contenido importado es del 65%. En septiembre de 2014 
(Decreto  8.304), se amplió el ámbito de aplicación del Programa Reinteg ra, que abarca entre 
8.620 y 8.630 partidas arancelarias, en su mayor parte manufacturas, para incluir en la lista de los 
productos admisibles, entre otros, el azúcar, el etanol y la celulosa. Conforme al sistema fiscal 
brasileño, las empresas que tienden a acumular sistemáticamente bonificaciones fiscales y no WT/TPR/M/358/Add.1  
 
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  generan suficientes deudas fiscales para compensarlas tienen derecho a que se suspendan algunos 
impuestos indirectos que gravan sus compras de insumos y bienes de capital para evitar esa 
acumulación;  actualmente se está examinando la aplicación de este régimen en el marco del 
mecanismo de solución de diferencias de la OMC (sección 2.5.1). " 
29. ¿Puede Brasil dar detalles sobre el funcionamiento, procedimientos, fundamento 
normativo, y sujeción del Program a Reintegra a la normativa de la OMC?  
Reintegra provides for a rebate of the indirect taxes levied on the inputs that are consumed in the 
production process of the exported product. Reimbursements under Reintegra are currently 2% of 
the value of the expor ted product. Brazil has established that, in all sectors, these percentages are 
considerably lower than the tax residue in the supply chain of exported products. As such, 
Reintegra is fully compatible with footnote 1 and Annex I of the SCM Agreement, given  that 
reimbursements are not "in excess of" of accrued taxes.  
4.3.5 Sector del automóvil  
El párrafo 4.101 del informe de la Secretaría señala que… "El Programa INOVAR -AUTO, 
administrado por el MDIC, concede una reducción de los tipos impositivos del IPI pa ra los 
vehículos automóviles fabricados o importados por las empresas habilitadas155, que adopta las 
siguientes formas: bonificaciones fiscales estimadas respecto del IPI y tipos impositivos reducidos 
del IPI aplicables a la importación de vehículos proced entes de determinados países, así como para 
determinados vehículos de fabricación nacional. La habilitación se otorga, con sujeción a 
determinadas condiciones, a las empresas que fabrican automóviles en el Brasil; las empresas que 
obtienen la aprobación of icial para sus planes de inversión en la producción nacional de los 
productos enumerados en el Decreto del Programa INNOVAR -AUTO (52 líneas arancelarias); y las 
empresas que comercializan automóviles en el Brasil sin realizar actividades de fabricación.156  
Para obtener la habilitación, las empresas deben cumplir ciertos requisitos de eficiencia energética 
y al menos tres de las cuatro condiciones siguientes: llevar a cabo un número mínimo de etapas 
de fabricación en el Brasil, por lo menos en el caso del 80 % de los vehículos producidos; invertir 
un porcentaje mínimo de los ingresos brutos de la empresa en actividades de I+D en el Brasil; 
realizar inversiones en ingeniería, tecnología industrial básica y formación de los proveedores; y 
aplicar el Programa Bra sileño de Etiquetado de Vehículos (PBEV) (Programa de Etiquetagem 
Veicular) a un porcentaje mínimo determinado de la producción de la empresa.157 Estaba previsto 
aumentar esos requisitos progresivamente en el período 2013 -2017 (cuadro 4.10). Las empresas 
que comercian solamente con productos de la industria del automóvil no están sujetas al requisito 
de llevar a cabo un número mínimo de etapas de fabricación en el Brasil; no obstante, para poder 
beneficiarse del programa, deben cumplir las otras tres condic iones."  
30. ¿Cuáles son los planes del gobierno de Brasil en relación con las iniciativas del 
Programa INOVAR -AUTO, una vez se cumpla el calendario del cuadro 4.10?   
As established in Article 1 of Decree 7.819 of 2012, INOVAR - AUTO will expire in 
31 December  2017. The features of the future Brazilian automotive policy are still under 
discussion.  
  WT/TPR/M/358/Add.1  
 
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  DOMINICAN REPUBLIC  
PREGUNTAS  
3. POLÍTICAS Y PRÁCT ICAS COMERCIALES, PO R MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.1 Procedimientos y requisitos aduaneros y valoración en aduana  
Pág. 50  
Párrafo  3.1. Desde  2014 se viene trabajando en la agilización de los procedimientos y trámites de 
comercio exterior en el marco del Programa de Ventanilla Única de Comercio Exterior ( Programa 
Portal Único  de Comercio Exterior ). Este programa se centra en la mejora de las intervenciones y 
los flujos de información entre todos los colectivos interesados que participan en la importación, 
exportación y tránsito de mercancías. A menos que gocen de una exención,  las importaciones 
comerciales deben declararse en el Sistema Integrado de Comercio Exterior (SISCOMEX), que se 
está rediseñando para convertirlo en un sistema consolidado de ventanilla única para el comercio 
de mercancías antes de finales de  2018.  
1. ¿Podría Brasil explicar cuáles son los procedimientos para la implementación y 
rediseño de su Sistema Integrado de Comercio Exterior, con miras a un Sistema 
Consolidado de Ventanilla Única para el Comercio en el año 2018?  
A complete description of the tra nsition to the new single -window system for handling exports and 
imports can be found at the following online address: http://portal.siscomex.gov.br/conheca -o-
portal/programa -portal -unico -de-comercio -exterior.  
El proyecto de desarrollo de la ventanilla única ejecutó el análisis de la situación actual de los 
procesos de comercio exterior para identificación de las oportunidades de mejoría. Este análisis fue 
hecho conjuntamente con cada uno de los más de 20 órgano s involucrados en los procesos de 
comercio exterior, además de la aduana. Después fue propuesto un modelo de flujo futuro para 
esos procesos, con la finalidad de solucionar las principales trabas burocráticas. Ese modelo fue 
sometido a una consulta pública  para solamente entonces se empezar el desarrollo del sistema de 
informática.  
4. POLÍTICAS COMERCI ALES, POR SECTORES  
4.1.4.1 Agricultural/rural credit  
Pág. 98  
Párrafo 4.23 . "Agricultural or rural credit at administered and preferential interest rates remains 
the major policy instrument for the sector; it is provided to both commercial and small -scale family 
farms (Table 4.4)."  
Se nota un aumento considerable en el programa " Tractor Fleet Modernization Incentives 
Programme" en el periodo del 2013 al 2016 pasando de ser 36.7 a 7,103.2 respectivamente, este 
programa incluye mecanización agrícola (compra de tractores, implementos, cosechadoras, 
pulverizadores, autopropulsados, y equipos para la preparación, secado y procesamiento de café).  
2. ¿Cómo se puede explicar el aumento del apoyo económico otorgado mediante este 
programa?  
The reason for this increase is the termination of the Programme for the Sustainability of 
Investment (P SI) in 2015 (see the Table 4.4). Both MODERFROTA and PSI programs allows (or 
allowed, in the case of PSI) the purchase of the same kind of capital goods. When compared to the 
sum of disbursements of both programs, there will be a decrease in these figures.   
Pág. 102  
Párrafo 4.33. "According to the OECD, whereas the agricultural credit system is intended to 
address failures in financial markets, it also creates risks (default) for government and producers, WT/TPR/M/358/Add.1  
 
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  particularly since the macroeconomic situation has deteriorated (Section 1.2.1).30 The higher 
availability of funds for loans is potentially creating excess supply. Most of this credit is 
concentrated on subsidizing short -term borrowing such as working capital and commercialization 
loans that further disto rt markets. A reform of the concessional credit system could consider a 
gradual downsizing of concessional loans for working capital to commercial producers, simplifying 
regulations and procedures, and re -focusing to support on -farm investments that explic itly 
incorporate technological innovations and advanced farm management and environmental 
practices."   
3. ¿Podría el Brasil clarificar si la reforma a la que hacen referencia es un plan a futuro 
que se pretende implementar o si solo se trata de una sugerencia  de la OECD?. De no 
ser algo que se tiene pensado implementar, ¿De qué manera se estaría manejando la 
situación que se genera en razón de los créditos otorgados?  
The reform mentioned is a suggestion from OECD. Brazil considers that "higher availability of  
funds for loans" alone is not capable to create excess supply as it has been provided. Funds are 
not allocated for any specific product and other factors must be present to this end. Since early 
90s, agricultural credit has been the main policy instrument  for the sector. This kind of policy in 
fact was more complex during the years of hyperinflation (before Plano Real, in 1995). 
Nonetheless, even under an economic crisis, there is no risk of significant default. The sector 
remains robust and default rates are currently low. Also, concessional credit to support -farm 
investments is clearly prompting increased productivity in the sector. Furthermore, there are 
programs of concessional credit that are explicitly aimed at innovation and/or environmental 
practic es (see Table 4.4), such as: PRONAMP, ABC Program, MODERAGRO, PRODECOOP, 
INOVAGRO and Prorenova Rural. There is no plan to change the current policy in the short term . 
Pág. 103  
Párrafo 4.34.  "During the review period, Brazil maintained unchanged its 1966 p olicy of 
guaranteed minimum prices (PGPM), an important pillar of its agricultural policy. The basic 
element of this policy remains the regionally -set minimum guaranteed prices which cover a broad 
range of crops from rice, wheat, maize, cotton, and soybean s, to regional crops like cassava, 
beans, açaí, guaraná, and sisal, as well as a few livestock products like cow and goat milk and 
honey (Table 4.6)."  
4. Se puede notar que programas como el "Federal Government Acquisition Programme 
(AGF) ", "Outflow of Product Value (VEP) ", "Public Option Contracts (COV) ", "Private 
Option Risk Premium (PROP) ", no fueron implementados en el año 2016 e incluso 
algunos no fueron implementados en años anteriores. De acuerdo a estas 
informaciones, ¿Se ha evaluado la utilidad de los programas y la necesidad de 
mantenerlos en el tiempo?  
These programmes were not implemented as prices of major commodities remained at relatively 
high levels when compared to minimum prices set by the government. However, such programmes 
remain useful to the sector in periods of lower prices.  
Pág. 12  
Párrafo 22. " El Brasil sigue siendo un interlocutor importante del comercio mundial de 
determinados productos agrícolas. Durante el período objeto de examen, la parte del sector 
agrícola en el valor añadido bruto (5,5% en 2016) se ha mantenido relativamente estable y la 
productividad del trabajo parece haber sido baja, en comparación con el resto de la economía. El 
promedio de los aranceles NMF aplicados a los productos agrícolas (10,2%) no ha variado , y el tipo 
máximo del 55% solo afecta a los cocos desecados. Aunque el nivel de ayuda que proporciona a 
los productores agrícolas sigue siendo bajo y continúa disminuyendo en comparación con otros 
países, el Brasil mantiene varias medidas de ayuda interna , como el tipo de interés administrado y 
las líneas de crédito en condiciones favorables (por ejemplo, con arreglo al principio de 
equiparación), los mecanismos de sostenimiento de los precios y las primas del seguro de las 
cosechas, que recientemente han adquirido una mayor importancia. Se sigue aplicando el requisito 
de mantener una reserva bancaria obligatoria para la financiación de actividades agrícolas. El 
elevado nivel de deuda rural es un reto importante que está siendo abordado. Una empresa WT/TPR/M/358/Add.1  
 
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  comerci al del Estado sigue participando en la aplicación de algunas medidas de política agrícola 
(relativas, por ejemplo, al almacenamiento y a los precios mínimos garantizados)."  
5. ¿La ayuda interna otorgada por el Brasil, es compatible con el Acuerdo sobre 
Agricu ltura?  
Brazilian agricultural domestic support is compatible with rules and commitments made by Brazil 
in the WTO. Furthermore, Brazil is one of the members with the most updated status of 
notifications to the Committee on Agriculture.  
Pág. 12  
Párrafo  24. "Aunque está experimentando una contracción, el sector manufacturero sigue siendo 
extenso (en 2016 representó el 11,7% del valor añadido bruto) y se ha diversificado. Las 
actividades están o bien en auge o bien en dificultades, debido en parte a la esc asa integración en 
la economía mundial (como ocurre con la industria del automóvil, por ejemplo), ya que la 
competitividad del sector se sigue viendo afectada por varios problemas estructurales, como el 
denominado "costo Brasil". La iniciativa "Brasil Más Productivo" de  2016 tiene por objeto aplicar 
principios de manufactura más austeros a fin de elevar los niveles de productividad. El promedio 
de los tipos NMF aplicados a las manufacturas (11,8%) apenas ha variado. Las prendas de vestir, 
los textiles y el material de transporte siguen beneficiándose de la protección arancelaria más 
elevada (35%), que es el principal instrumento de una política claramente orientada a la elusión 
de aranceles para atraer IED. Se ha dado carácter permanente a varios incentivos a la exportación 
y al reembolso de los derechos e impuestos a la exportación en el marco del programa Reintegra, 
que inicialmente debía expirar a finales de  2013. También se sigue otorgando ayuda interna en 
forma de incentivos tributarios y no tributarios,  en particular préstamos en condiciones favorables 
o con tipos de interés administrados, subsidios de alquiler y prórrogas temporales de las 
preferencias en la contratación pública para los proveedores nacionales. Las prescripciones en 
materia de contenido  nacional relacionadas con las etapas del proceso productivo, que están 
vinculadas a las medidas de ayuda interna, siguen protegiendo a los productores nacionales de la 
competencia exterior. Se han mantenido los incentivos para ramas de producción específi cas, 
como el sector del automóvil (Programa INOVAR -Auto, vigente hasta 2017), la tecnología de la 
información, la aeronáutica, los abonos y los productos farmacéuticos. Se han tomado medidas 
para reducir los aranceles aplicados a los automóviles eléctricos  y los propulsados por pilas de 
combustible, mientras que la aplicación del trato de franquicia arancelaria para los automóviles 
procedentes de la Argentina y México ha quedado aplazada hasta 2019."  
6. ¿Es compatible la protección arancelaria del Brasil, espe cíficamente, con el Acuerdo 
sobre Subvenciones y Medidas Compensatorias?  
The Agreement on Subsidies and Countervailing Measures does not impose obligations regarding 
the general level of tariff protection of WTO Members.  
Tariff protection in Brazil is con sistent with its commitments under Article II of GATT1994 and has 
no relation with the application of the Agreement of Subsidies and Countervailing Measures.  
Pág. 39  
Cuadro  2.2. ACR y ACP vigentes del Brasil: principales características, 2017.  
7. ¿Cuál es la razón por la cual la mayoría de los ACR firmador por el Brasil con otros 
socios comerciales, no han sido notificados a la OMC, en cumplimiento a la Decisión 
WT/L/671 del 18 de diciembre del 2006, relativo al Mecanismo de Transparencia 
para los Acuerdos Com erciales Regionales?  
The assertion that most RTAs signed by Brazil have not been notified to the WTO is incorrect. The 
Montevideo Treaty of 1980 of the Latin American Integration Agreement (LAIA) was duly notified 
to the GATT under the Enabling Clause, on July 1st 1982, as doc ument L/5342. Brazil and other 
LAIA members notified to the GATT, and subsequently to the WTO Committee on Trade and 
Development, all regional or subregional trade agreements concluded under the umbrella of the 
Montevideo Treaty. Biennial reports, submitte d until 2011, were replaced by annual reports from WT/TPR/M/358/Add.1  
 
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  2012 onwards, in full compliance with the Provisional Transparency Mechanism for RTAs. The list 
of each and every agreements under the umbrella of LAIA notified to the WTO can be found in 
document WT/COMTD /W/217.  
Pág. 45  
Párrafo 2.34. " Durante el período objeto de examen, la principal legislación que regula la 
inversión extranjera en el Brasil se ha mantenido básicamente inalterada. Las modificaciones 
realizadas en  2014 introdujeron mejoras en cuestiones r elacionadas con los inversores no 
residentes, el capital extranjero en el Brasil y el capital brasileño en el extranjero. Desde las 
enmiendas de  1995 a la Constitución, el capital extranjero y el capital nacional han recibido el 
mismo trato jurídico en igu aldad de circunstancias, y se prohíben todas las formas de 
discriminación no previstas explícitamente en las leyes. Las empresas legalmente registradas 
compiten en condiciones de igualdad al licitar para contratos públicos o al intentar obtener 
incentivos tributarios y no tributarios. Aunque no existen normas que prohíban expresamente las 
absorciones por parte de empresas extranjeras, se requiere una autorización especial para las 
operaciones realizadas a través de la compra de acciones en bolsa."  
8. ¿Cuándo s e señala que se "prohíben todas las formas de discriminación, no previstas 
explícitamente en las leyes ", es decir que está permitida algún tipo de 
discriminación?  
Foreign capital may freely enter Brazil and is not subject to prior approval by the governme nt and 
there are no conditions in respect of the total amount of investment that can be made in Brazil.  
There are a few exceptions set forth in the Constitution and other laws, such as: a) a state 
monopoly for the nuclear energy industry and certain post al and telegraphic services; 
b) limitations or necessity of prior authorization from public authorities for the acquisition or rental 
of rural property along the national border; c) presidential authorization required for opening 
foreign financial instituti ons in Brazil; d) air transport services (20% ownership limitation); e) 
ownership of media companies; f) transportation of national oil.  
Pág. 60  
Párrafo 3.34. "Todavía no se ha ultimado el proceso de la OMC para la certificación de la lista de 
consolidaci ones arancelarias del Brasil con el fin de incorporar los cambios resultantes de la 
introducción de las versiones 2007, 2012 y 2017 del Sistema Armonizado. Los tipos aplicados a 
unas 134 líneas arancelarias (frente a 120 en 2012) superan, a veces parcialme nte (debido a 
diferencias en los niveles de agregación), las consolidaciones del Brasil. Las autoridades han 
indicado que, en todos estos casos, los importadores pueden solicitar la aplicación del tipo 
consolidado."  
9. ¿Podría el Brasil explicar esta confusa situación en torno al arancel consolidado y 
aplicado?  
Brazil is in the process of incorporating changes resulting from the introduction of HS versions 
2007, 2012 and 2017 into its bound tariff schedule. These transpositions currently benefit from a 
'waiver ' under article 9.3 of the Marrakesh Agreement Establishing the WTO. In any case, Brazil is 
committed to abiding by its bound tariff commitments and, in this regard, as indicated in the 
Secretariat report, importers may request the application of the  bound rates.  
Párrafo 3.36. "La mayoría de las listas arancelarias preferenciales aplicadas por el Brasil se han 
establecido en la nomenclatura de la ALADI, con miras a facilitar las negociaciones sucesivas para 
la integración económica regional. El Brasil  no ha publicado tablas de correspondencia oficiales 
entre sus listas preferenciales y su Arancel aplicado, que se adapta periódicamente a la última 
versión de la nomenclatura del SA. La ausencia de una versión común de la nomenclatura impide 
realizar comp araciones significativas entre los diferentes acuerdos preferenciales y entre estos y el 
Arancel NMF aplicado actualmente. Por ese motivo, los comerciantes sufragan cuantiosos costos de 
transacción, ya que tienen que examinar una nomenclatura para comproba r la clasificación 
arancelaria y al menos otra nomenclatura para conocer las preferencias a las que se acogen los 
distintos productos. Según las autoridades, la carga que pesa sobre la mayoría de los WT/TPR/M/358/Add.1  
 
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  importadores es limitada, ya que solo tienen que comprob ar varias nomenclaturas para un número 
reducido de productos. Además, se espera que la expiración de los períodos de transición de varios 
acuerdos en los años venideros reduzca esos costos de transacción."  
10. El hecho de que Brasil utilice la nomenclatura NAL ADISA, genera costos 
transaccionales cuantiosos para los comerciantes ¿En algún momento se publicaran 
tablas de correspondencia oficiales entre las listas preferenciales y el arancel 
aplicado? (MDIC, DACESS -MRE)  
La metodología adoptada por Brasil exige que  el operador de comercio clasifique el producto en la 
nomenclatura nacional para fines de declaración interna y en NALADISA para comprobar la 
adecuación al acuerdo. No se prevé la utilización de correspondencias oficiales.  
Pág. 62  
Párrafo 3.41. " El impuesto sobre la circulación de mercancías y la prestación de servicios (ICMS) 
es un impuesto sobre el valor añadido aplicado a las importaciones, así como a las transacciones 
intraestatales e interestatales relacionadas con mercancías, servicios de trans porte 
intermunicipales e interestatales y servicios de comunicaciones. Están sujetas a este impuesto las 
transacciones de mercancías que entrañan un cambio de propiedad, así como las transferencias 
entre las filiales o sucursales de una empresa, y las impo rtaciones (incluso las que se efectúan 
para uso o consumo propio). Al ser competencia de los estados federados del Brasil, el ICMS se 
rige por 27 regímenes reglamentarios distintos y algunas disciplinas globales establecidas al nivel 
federal. El ICMS aplic ado a las transacciones interestatales se percibe en origen, y una parte de la 
recaudación se transfiere después al estado de destino, lo que da lugar a complicaciones cuando 
dos estados aplican el impuesto a tipos diferentes."  
11. ¿Cuándo dos países aplican i mpuestos a tipos diferentes, se está duplicando el ICMS 
e incrementando el impuesto sobre el valor añadido aplicado a las importaciones?  
El ICMS es un tributo de naturaleza indirecta que recae sobre el consumo, del tipo de impuesto 
sobre el valor añadido (IVA). Como tal, la suma de los valores añadidos es igual al valor final de 
venta del bien, es decir, para mercancías de mismo costo de adquisición o importación, el monto 
final del impuesto pago es igual.  
  WT/TPR/M/358/Add.1  
 
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  ECUADOR  
Informe de la Secretaría de la OMC  
1. De conformidad con la página 53, párrafo 3.17, en relación a la reserva de la inversión del 
orden de aplicación de los métodos previstos en los artículos 5 y 6 del Acuerdo sobre Valoración en 
Aduanas. ¿Podría indicarnos Brasil cómo se activa el procedim iento determinado si el mismo, como 
lo relata el informe de la Secretaría, se aplicaría independientemente de lo que solicite el 
importador?, cuando por el contrario, la nota interpretativa del Acuerdo establece "si el importador 
no pide que se invierta el  orden de los artículos 5 y 6, se seguirá el orden normal". ¿En qué 
circunstancias se sigue el orden normal al que se refiere esa nota interpretativa?  
De conformidad con el establecido en el artículo 83.I del Código Aduanero (Decreto nº 6.759, 
de 2009), l a inversión de los métodos 4 y 5 del Acuerdo de Valor en Aduana por la parte del 
importador es condicionada a la aprobación de las autoridades aduaneras.  
2. De conformidad con la página 61, párrafo 3.37, respecto de los gravámenes federales y sub 
federales . ¿Podría señalarnos Brasil si la acumulación cruzada a efectos de la determinación de la 
base imponible, para los distintos gravámenes, podría afectar a los productos importados 
similares, directamente competidores o sustituibles, en relación a los produc tos de producción 
nacional, en cuanto al principio de trato nacional en materia de impuestos? De ser el caso, ¿qué 
medidas estaría tomando Brasil para que no se afecten las condiciones normales de competencia?  
Los distintos gravámenes que afectan los prod uctos importados igualmente afectan los productos 
nacionales y, aún que puedan tener una base imponible distinta, la carga tributaria aplicable a los 
productos importados es todavía menor que aquella que aplica a los productos nacionales 
similares.  
3. De c onformidad con la página 62, párrafo 3.40: "El impuesto sobre los productos industriales 
(IPI) es un impuesto federal que grava los productos manufacturados nacionales e importados, 
siguiendo el principio del valor añadido. [¼] En principio, se aplican los  mismos tipos a los bienes 
de producción nacional y a los de importación. Sin embargo, algunas reducciones o suspensiones 
del IPI, como las que se aplican a los productos de la industria del automóvil (sección 4.3.5), se 
han otorgado únicamente a productos  originarios de algunos interlocutores comerciales 
preferenciales del Brasil (por ejemplo, el MERCOSUR y México)". Al respecto, podría informarnos 
Brasil ¿cómo se aplicaría el principio de valor añadido en el caso de los productos importados 
similares, com petidores o sustituibles, en relación a los productos de producción nacional, cómo se 
justifica la medida bajo las disposiciones de no discriminación, trato nacional y NMF en el caso de 
las suspensiones otorgadas a los productos originarios únicamente de p aíses del Mercosur y 
México, por tratarse de impuestos y no de derechos de aduana?  
Brazil considers that its measures are fully compatible with its obligations under the WTO 
agreements.  
4. De conformidad con la páginas 76 párrafo 3.91, en relación al prog rama de equiparación de los 
tipos de interés PROEX. ¿Podría indicarnos Brasil a qué tipo de condiciones de igualdad se refiere 
cuando se habla de la compensación parcial del costo de un crédito obtenido de cualquier 
institución financiera? ¿Qué tasa de int erés y de qué país se toma como referencia para esa 
equiparación? ¿Cómo se ajusta la medida de equiparación a los compromisos de Brasil sobre 
subvenciones a la exportación, considerando que algunos créditos pueden estar dirigidos a 
productos o sectores esp ecíficos (párrafo 3.95)?  
The interest rate support of a specific operation under PROEX is calculated by matching the 
Internal Rate of Return - IRR of the importer´s flow to the IRR of the lender´s flow. Regarding the 
financial flow of the importer, the cha rged interest rate is defined aiming to preserve the 
competitiveness of the Brazilian exporter, whereas the interest rate applied to the lender 's 
financial flow represents the financial institution 's opportunity cost regarding the operation.  
When the lender 's reference cost is well known, then the cost informed by the financial institution 
is applied to calculate the amount of support required. When this is not the case, the financial cost 
of the operation is estimated based on market indicators availa ble on Bloomberg. Therefore, the WT/TPR/M/358/Add.1  
 
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  estimated lender 's reference cost will be formed by the funding cost (riskless asset plus a measure 
of the institution 's credit risk) added to a remuneration margin for the credit granted.  
The interest rate of the importer , on the other hand, is based on the Commercial Interest 
Reference Rate – CIRR linked to the maturity of the operation. CIRR are referential international 
interest rates applied by official export credits agencies of member states of the Organisation for 
Economic Co -operation and Development (OECD).  
Worth noting that PROEX does not prioritize specific products or sectors. The program is designed 
to support exporters of goods and services in general; therefore, the legal framework does not 
focus on particular segments. PROEX respects all agreements signed by Brazil regarding officially 
supported exports, for instance, the Sector Understanding on Export Credits for Civil Aircraft – 
ASU, under OCDE, of which Brazil is signatory despite not being a memb er state of the 
Organization.  
5. De conformidad con la página 92, párrafo 3.150, en relación a la conclusión de los procesos de 
análisis de riesgo. ¿Podría indicarnos Brasil si en sus procesos de análisis de riesgo tendría un 
tiempo estimado para la conclu sión de los mismos, qué medidas ha tomado, de ser el caso, para 
evitar que esos análisis se lleven adelante sin demoras indebidas?  
Adicionalmente, ¿podría informarnos Brasil si, una vez concluido un análisis de riesgo, se hayan 
establecido los requisitos de importación y éstos han sido cumplidos por los exportadores, se 
autorizaran inmediatamente las importaciones de los productos sujetos a un análisis de 
riesgo?¿Bajo qué disposiciones de la normativa multilateral se justifica la creación de Grupos de 
Trabajado, para analizar y opinar sobre los aspectos técnicos del establecimiento del sistema 
integrado de medidas para la reducción del riesgo en la importación de bananos para el mercado 
brasileño oriundos del Ecuador" (Ley Nro. 2 de la Secretaría de defensa  Agropecuaria)?  ¿Qué 
función desempeñan esos Grupos de trabajo, cuánto influyen sus análisis y opiniones en el marco 
del acceso al mercado brasileño? ¿En el caso de que su criterio sea determinante para restringir 
una importación, como esta medida se justi fica bajo el artículo XI del GATT de 1994?  
The Plagues Risk Analysis Process (Análise de Risco de Pragas – ARP) in Brasil is regulated by the 
IN 06 of May 16, 2005, of the Ministry of Agriculture, Livestock, and Supply (Ministério da 
Agricultura, Pecuária  e Abastecimento – MAPA), and it can be led directly by the Department of 
Plant Health of the Ministry of Agriculture and by the Collaborator Centers (Centro Colaboradores) 
accredited for this activity. These analyses can take up to 2 to 4 years to be conc luded, depending 
on the complexity of the work. However, it is important to highlight that the Ministry of 
Agriculture´s regulation does not establish a defined deadline for the conclusion of an ARP. After 
the risk analysis´ conclusion, the phytosanitary r equirements are published and then the imports 
are allowed due to the fulfillment of the requirements. According to the Brazilian legislation, which 
follows the CIPV norms, the risk analysis can be reviewed at any time and, for that review, the 
Ministry of  Agriculture can create work groups composed by external specialists. The work of these 
specialists is strictly consultative and the final decision about the phytosanitary requirements is 
taken by the Ministry of Agriculture.  
6. De conformidad con la pági na 93, párrafo 3.153, respecto de la aprobación de los productos y 
etiquetas de cada establecimiento. ¿Podría informarnos Brasil cómo funciona ese procedimiento y 
si existe algún tiempo estimado para la aprobación de esas etiquetas o sellos, una vez que la s 
autoridades competentes del país exportador haya remitido la lista de los establecimientos? 
Adicionalmente, podría indicarnos Brasil bajo qué disposiciones multilaterales se justifica esta 
medida?  
The legislation  was established  by the Decree  N. 9.013,  issued  on the 29th March  2017.  The 
Decree  determines  that every  national  or imported  animal  product,  without  distinction,  must be 
registered  in MAPA.   
During the labeling analysis, MAPA takes into account product ingredients, manufacturing process 
description, product identity, storage conditions, conservation forms and period, and other 
information necessary for food preparation.  
On 18th January 2017, the online system was launched. Since then, all regulated products can be 
automatically registered  by stakeholders. Non regulated products are subject to MAPA approval.  WT/TPR/M/358/Add.1  
 
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  There is not a deadline for this procedure.  
These measures are taken according the Article  2.3 of WTO Agreement on the Application of 
Sanitary and Phytosanitary Measures - SPS Agreement . 
7. De conformidad con la página 130, párrafo 4.41, respecto de los programas de venta 
anticipada. ¿Podría informarnos Brasil qué parámetros o criterios utiliza para determinar los 
precios de los productos que se acogen a esta medida? ¿Qué porcentaje de descuento aplican los 
bancos en sus líneas de crédito para los productores que utilizan la CPR como m edio de garantía? 
¿Qué sucede si al momento de hacer efectiva una CPR los precios de los productos agrícolas están 
por debajo del precio de venta de la cosecha que se vendió anticipadamente, quien asume esa 
diferencia de precio?  
As mentioned in the Report , farmers and cooperatives which sell their products in the futures 
market may access credit lines by discounting a rural promissory note (NPR) or a rural duplicate 
(DR), which allow them to receive proceeds from the sale before the harvest. Up to 7% of 
mandatory resources to finance rural credit may be used by banks to discount NPRs and DRs. So, 
CPR is a private promissory note. As a private financial instrument, the criteria used to determine 
the price of the product covered and the discount rate are up t o the banks and the producers. 
Therefore, probably the price and the interest rate set are the practiced at the free market at the 
moment CPR is issued. If at the due date the prices of agricultural products are below the selling 
price of the crop that was  sold in advance, it supposed the producer assumes that price difference.  
8. De conformidad a la página 153, párrafo 4.101, referente al Programa INOVAR – AUTO ¿Podría 
explicarnos Brasil cómo la inclusión de un número mínimo de etapas de fabricación, como una de 
las condiciones establecidas para que una empresa obtenga la habilitación, se ajusta a los 
compromisos de Brasil en materia de subvenciones a la exportación, considerando que ese número 
mínimo de etapas en la práctica podría incentivar, indirectamen te, criterios de utilización de 
componentes nacionales?  
In Brazil's view, production requirements should not be confused with requirements to use 
domestic over imported goods, this latter being prohibited by WTO. The production steps required 
in order to qualify under the INOVAR -AUTO program do not impose any export requirements or 
conditions.  
PREGUNTAS ADICIONALE S 
Propiedad Intelectual  
La legislación brasileña abarca todos los principales aspectos contendidos en el Acuerdo sobre los 
ADPIC. Durante el periodo objeto de examen se introdujeron diversos cambios legislativos que 
afectan a la protección de la propiedad intelectual. Brasil no ha presentado actualizaciones de sus 
notificaciones en relación con las modificaciones introducidas en su legislación desde el 2001.  
De acuerdo con el párrafo 3.187, ¿Podría Brasil indicarnos los motivos por los que no ha notificado 
al Consejo de los ADPIC las modificaciones introducidas en su legislación?  
Is the above mentioned legislation available online? Are translati ons available?  
A new notification updating the previous one is under consideration by the Brazilian government.  
Brasil cuenta con licencias obligatorias en lo que respecta a las patentes, estas licencia obligatorias 
son otorgadas en situaciones de emergen cia nacional, por interés público, como medida correctiva 
en caso de abuso de derecho o de conducta anticompetitiva.  
De acuerdo con el párrafo 3.196: ¿cómo Brasil aplica esa figura de licencias obligatorias y, 
adicionalmente, podría indicarnos cómo esa med ida es consistente con el acuerdo de los ADPIC?  
The Industrial Property Act (Law 9.279/2016) states that a patent may be "licensed on a 
compulsory basis" if the right holder "exercises his rights (…) in an abusive manner, or by means 
thereof engages in ab use of economic power, proven pursuant to law in an administrative or WT/TPR/M/358/Add.1  
 
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  judicial decision" (Art. 68). Brazil's competition authority (Cade) adjudicates on whether a merger 
will hurt competition based on the guidelines laid out by law 12.529/2011, which in it s Article 61, 
par. 2, item V lists compulsory licensing of intellectual property rights as one of the possible 
remedies for a situation of excessive market concentration.  
Compulsory licensing is expressly permitted under article 31 of the TRIPS agreement.  
Mercancías  
De acuerdo con el párrafo 3.34. Todavía no se ha ultimado el proceso de la OMC para la 
certificación de las listas de consolidación arancelarias del Brasil con el fin de incorporar los 
cambios resultantes de la introducción de las versiones 2007, 2012, y 2017 del sistema 
armonizado.  
Los tipos aplicados a unas 134 líneas arancelarias superan, a veces parcialmente, las 
consolidaciones de Brasil. Las autoridades han indicado que, en todos estos casos, los 
importadores pueden solicitar la aplicación del tipo consolidado. ¿Cuándo se certifica rían las listas 
de consolidación arancelarias de Brasil?  
The tariff rates applied by Brazil, as authorized by the MERCOSUR instruments, do not exceed the 
maximum World Trade Organization (WTO) bound tariffs. Since bound rates of Mercosur members 
are diffe rent, it is possible to find some CET rates above Brazilian bound rates. In such cases, the 
Brazilian bound rates are applied. Therefore, as stated above, the tariff rates applied by Brazil do 
not in any case exceed the maximum WTO bound tariffs.  
At this m oment, there is no estimated time to complete the certification process for HS 2007.  
De acuerdo con el párrafo 3.77. En marzo de 2017, había 359 empresas que reunían a los 
requisitos necesarios para participar en el RECAP. El RECAP es uno de los programas de 
concesiones arancelarias y de derechos de Brasil que ha sido objeto de procedimientos de solución 
de diferencias durante el periodo objeto de examen. ¿En qué consiste y cómo funciona el sistema 
RECAP?  
Brazil has a system of value -added taxation along t he production chain, which means that the 
taxes paid in prior steps of the production chain may be used as credits, which, as a general rule, 
are offset against the debits accumulated in subsequent steps of the production chain.  
Some companies in Brazil te nd to structurally accumulate tax credits since their sales are subject 
to low or no taxation at final stages of production. As a result, these "predominantly credit -
accumulating companies" structurally accumulate tax credits and must submit a great number  of 
tax reimbursement requests on a regular basis, putting a heavy burden on them and on the tax 
authorities. All those companies that structurally accumulate credits can apply for an alternative 
method of tax administration, under which taxes are suspende d on purchases of inputs and capital 
goods and, in consequence, taxes resulting from sales must be paid in full without the utilization of 
any credits.   
Predominantly exporting companies" are among those taxpayers that naturally tend to accumulate 
credits along the production chain, since taxes are not levied on their exports. So, the tax 
suspension under the PEC/RECAP regime simply prevents the accumulation of tax credits and the 
administrative burden – for the government and the companies – related to the  reimbursement of 
taxes not due in the first place that would be collected.  
RECAP does not provide for the suspension or exemption of customs duty.  
Medidas sanitarias y fitosanitarias  
De conformidad con la página 16, párrafo 3.7, a tenor de lo referido por  Brasil acerca de que:  
"(...) ninguna reforma de la agricultura estará completa si no se amplía el acceso a los mercados 
para los productos agrícolas, teniendo incluso en cuenta las repercusiones negativas de los 
obstáculos arancelarios en el comercio. " WT/TPR/M/358/Add.1  
 
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  ¿No resultaría esto contraproducente con los compromisos derivados de los demás acuerdos del 
marco normativo de la OMC? pues la aplicación injustificada o inadecuadamente sustentada de 
medidas bajo Acuerdos relacionados directa o indirectamente con los pro ductos agrícolas podrían 
limitar el acceso al mercado brasileño.  
Brazil actively supports the continuation of the reform process in agriculture, in all the three pillars 
of the Agreement on Agriculture, including market access. Brazil also defends the ade quate 
application of the SPS Agreement and believes this will facilitate and encourage market access in 
agriculture. Together with Argentina, Brazil has tabled a discussion paper proposing that Members 
agree during MC -11 to reinforce elements of the SPS ag reement in the fields of regionalization, 
equivalence, risk analysis, risk communication, control procedures, sanitary inspections and good 
offices.  
De conformidad con la página 24, párrafo 4.20, si bien el principal objetivo de los acuerdos 
comerciales e n el ámbito sanitario y fitosanitario contraídos por Brasil es el de:  
"(…) identificar normas comunes, simplificar los controles a la importación, armonizar las 
prescripciones en materia de certificación y facilitar el comercio bilateral y el ingreso de 
determinados productos ." 
Sería oportuno que Brasil explique con más detalle bajo qué argumentos jurídicos se ha 
sustentado la suspensión de importación de banano ecuatoriano hacia el mercado local, 
considerando que:  
No existe coherencia de la medida aplicada por Brasil al banano de origen ecuatoriano respecto de 
las aseveraciones formuladas en la página y párrafo citados y, además, parecería que, el análisis 
de riesgo realizado por las autoridades brasileñas no estaría siendo debidamente aplicado por 
cuanto la suspensión a la importación de banano ecuatoriano parecería que no se basa en la 
"evaluación de los riesgos" efectuada, contradiciendo los artículos 5.1 y 2.2 del Acuerdo MSF; y,  
Teniendo en cuenta que la medida de certificación prevista en la In strucción Normativa n° 3 de 
Brasil es una alternativa menos restrictiva que la prohibición aplicada en la práctica por las 
autoridades sanitarias brasileñas, y puesto que ésta lograría en principio el nivel adecuado de 
protección buscado por Brasil, se ded uciría que la suspensión a la importación de banano 
procedente de Ecuador sería incompatible con el Artículo 5.6 del Acuerdo MSF, en cuyo contenido 
expresa:  
"(…) los Miembros se asegurarán de que sus MSF no entrañen un grado de restricción al comercio 
mayor del requerido para lograr su nivel adecuado de protección."  
Dado que ya existe un análisis del riesgo de plagas elaborado por Brasil al respecto, la suspensión 
de importación al banano ecuatoriano impuesta por Brasil no puede justificarse como medida 
provisional precautoria al amparo del artículo 5.7 del Acuerdo MSF, puesto que existen hasta el 
momento los "testimonios científicos pertinentes" para poder hacer una "evaluación de riesgo 
apropiada".  
The Brazilian sanitary authorities have submitted to the  Ecuadorian authorities the working group's 
conclusion regarding the mitigation Work Plan for Mycosphaerella fijiensis and the new 
requirements for Ralstonia solanacearum.  
The Brazilian sanitary authorities requested two modifications regarding the risk m itigation Work 
Plan for Mycosphaerella fijiensis.  
Regarding the new requirements for Ralstonia solanacearum, the working group agreed with 
Ecuador's request for modification and a new text proposal for the Normative Instruction 
No. 3/2014 has been submitte d to the Ecuadorian authorities.  
If Ecuadorian sanitary authorities agree with the new text proposal for the referred Normative 
Instruction, Brazil will proceed with the necessary steps to make the adjustments to the Normative 
Instruction No. 3/2014.  
  WT/TPR/M/358/Add.1  
 
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  EL SALVADOR  
Documento WT/TPR/S/358  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1.2 Normas de Origen  
3.19 El Brasil aplica normas de origen con fines no preferenciales.27 Para ser considerados 
originarios, los productos deben haber sido totalmente obte nidos o haber sido objeto de una 
transformación sustancial (a raíz de la cual hayan pasado a clasificarse en una partida arancelaria 
de cuatro dígitos diferente) en el país de origen declarado. La SECEX puede realizar las 
verificaciones del origen no prefe rencial en la etapa de tramitación de la licencia de importación, 
sobre la base de la evaluación del riesgo. En 2015 se modificó el procedimiento de verificación con 
objeto, entre otras cosas, de reducir el plazo para realizar las investigaciones.28 Las de claraciones 
de origen falsas pueden dar lugar al rechazo de una solicitud de licencia de importación y a la 
denegación de licencias de ese tipo para mercancías similares atribuidas al mismo exportador.  
Pregunta: ¿considera Brasil que estas Reglas de Orige n No Preferenciales que tienen vigente 
otorgan un trato especial a economías pequeñas como la salvadoreña?  
Las normas de origen no preferenciales están reguladas en Brasil por la "Lei Nº 12.546", del 
14/12/2011. En las reglas de origen contenidas en esa L ey no está previsto trato especial a 
economías pequeñas.  
Pregunta  ¿Podría confirmar Brasil si exige que todas las mercancías que son importadas a su 
territorio posean una licencia de importación? Si fuese negativa la respuesta ¿cuáles son los 
productos que requieren licencias de importación?  
As a general rule, Brazilia n imports are exempted from licensing. In some cases, however, 
licensing is required, which may be automatic or non -automatic, depending on the product. In 
general, automatic licensing is used for statistical monitoring purposes. In order to verify the 
products for which the import license is required, it is necessary to consult the "Administrative 
Treatment" of the merchandise at the SISCOMEX webpage: http://www.portalsiscomex.gov.br/. 
The list of goods and operations requiring licenses can also be verifie d on MDIC website: 
http://www.mdic.gov.br/index.php/comercio -exterior/importacao/tratamento -administrativo -de-
importacao  
3.1.5 Prohibiciones, restricciones y licencias de importación  
Cuadro 3.6 Prohibiciones de importación, 2017  
Cuadro 3.22 Legislación n acional sobre derechos de propiedad intelectual, 2017  
Pregunta: ¿ Podría Brasil indicar sobre el avance en la implementación de medidas relativas al 
Convenio sobre Diversidad Biológica (CDB) y sobre acciones relativas al Protocolo de Nagoya sobre 
Acceso a l os Recursos Genéticos y Participación Justa y Equitativa en los Beneficios que se deriven 
de su Utilización al Convenio sobre la Diversidad Biológica?  
The implementation measures relating to the Convention on Biological Diversity (CDB) are detailed 
in the  Fifth National Report to the CBD available at https://www.cbd.int/doc/world/br/br -nr-05-
en.pdf https://www.cbd.int/doc/world/br/br -nr-05-en.pdf.  
Currently, Brazil has not ratified The Nagoya Protocol on Access and Benefit -sharing. The Protocol 
has been under analysis for future ratification by the Brazilian National Congress since 2012.It was 
given 'Urgency Request ' priority status for legislative consideration in June 2017. Nevertheless, 
Brazil has a domestic law on Access and Benefit Sharing since 2001. The Provisional Measure 
number 2.186 -16/2001 regulated access to genetic resources and associated traditional 
knowledge, as well as the benefit sh aring and transfer of technology arising from their use.  
In 2015, The Biodiversity Law, (the legislation on access and benefit sharing) entered into force 
and revoked the Provisional Measure. It stimulates research and development from biodiversity. WT/TPR/M/358/Add.1  
 
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  The ne w law simplifies and streamlines processes, defining the criteria for benefit sharing arising 
from economic exploitation of products and reproductive materials derived from access to genetic 
resources and to associated traditional knowledge.  
The Biodiversi ty Law also has created a National Fund for benefit sharing, that will include in its 
Management Committee indigenous peoples, local communities and family farmers. The National 
Authority on Access and Benefit Sharing - The Genetic Heritage Management Coun cil (CGEN) – will 
hold its 11th Ordinary Meeting, since the Biodiversity Law entered into force, in 15 August 2017.  
3.3.2 Normas y otras prescripciones técnicas  
3.134. El enfoque del Brasil para aceptar la equivalencia se sigue basando en la aceptación de los 
resultados de las pruebas, sin un reconocimiento expreso de los reglamentos técnicos extranjeros. 
En el período objeto de examen, el Brasil notificó a la OMC cuatro acuerdos plurilaterales sobre 
OTC concluidos con otros Miembros, entre ellos, tres nuev os acuerdos de reconocimiento mutuo 
(ARM) sobre acreditación.173  
Pregunta : ¿Qué mecanismo de cooperación aplica Brasil para países que deseen entablar 
procesos de equivalencia o acuerdos reconocimiento mutuo, y que plazos conlleva el 
establecimiento de lo s mismos?  
Brazil can negotiate MRAs with any country but it is important to explain that even within 
MERCOSUR the following applies:  
(1) As far as accreditation is concerned, Brazil, through Inmetro, is a member of the Mutual 
Lateral Agreements established by  the two international accreditation forums: IAF 
(International Accreditation Forum) and ILAC (International Laboratory Accreditation 
Cooperation), which means that accreditation equivalence activities of other members are 
recognized.  
(2) The acceptance of res ults of mandatory conformity assessment procedures also demands 
that certification bodies in the two countries sign a mutual recognition agreement between 
them. They have to be accredited by their respective accreditation bodies, signatories of the 
IAF MRA , and make used of laboratories accredited by bodies which are signatories of the 
ILAC MRA. Under the private MRA signed,the certification body established in Brazil can 
analyse the conformity assessment procedures and results as applied to a particular pr oduct 
by the foreign certification body and issue a new certificate, which will be accepted.  
Propiedad Intelectual  
3.188. A enero de 2017, el Brasil era parte en 14 de los 26 tratados administrados por la 
Organización Mundial de la Propiedad Intelectual (OMPI); asimismo, había ratificado el Tratado 
de Marrakech para las personas con discapacidad visual en diciembre de 2015.237 Según las 
autoridades, está en curso el proceso de ratificación nacional del Protocolo de Madrid.  
Pregunta : ¿Podría Brasil confirm ar si posee fechas o una hoja de ruta para el proceso de 
ratificación del Protocolo de Madrid? ¿Cuándo esperan realizar el proceso de ratificación?  
The Madrid Agreement on Trademarks, managed by WIPO was sent to the Brazilian Congress for 
ratification on June 21st.  
3.196. En el caso de las patentes, pueden concederse licencias obligatorias en situaciones de 
emergencia nacional, por interés público243, como medida correctiva en casos de abuso de 
derechos o de conducta anticompetitiva, y cuando no se hayan satisfecho las necesidades del 
mercado. Si se concede una licencia obligatoria por causa de interés público, ello deberá ser con 
fines de utilización pública y no comercial. Se declarará la caducidad de una patente si dos años 
después de la concesión de la  primera licencia obligatoria no se ha corregido una situación de 
abuso o desuso, a menos que haya razones válidas.  
Pregunta : ¿Puede decir Brasil si ha hecho uso de licencias obligatorias; y en caso de haberlo 
hecho, en qué casos?  WT/TPR/M/358/Add.1  
 
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  In 2007, the Brazilian G overnment granted a compulsory licence for public non -commercial 
purposes regarding the relevant Efavirenz 's patents, a life -saving medicine for AIDS patients. To 
date, this has been the single case of a compulsory license being granted in Brazil.  
Document o WT/TPR/G/358 – Informe de Gobierno  
Política de Competencia  
4.22 Between 2013 and 2016, the pre -merger review system was consolidated, engendering 
remarkable improvements in CADE 's6 assessment of mergers. Since then, fast -track cases, which 
correspond to approximately 80% of all merger cases reviewed by CADE, are decided i n up to 
30 days, whereas ordinary cases are reviewed in an average of 60 days, and mergers, which are 
challenged of considered as complex, are analyzed in an average of 200 days.  
Pregunta:  ¿Podría Brasil indicar los supuestos que establece la ley para considerar los casos de 
fusiones "fast-track"?  
De acuerdo con la Resolución nº 2 de 2012, son fusiones fast track a quellas que, en razón de la 
sencillez de la transacción, presentan menos riesgo y por lo tanto pueden ser analizadas en un 
procedimiento sumario. La definición de una transacción como fast track es discrecional, basada en 
criterios resultantes de la experi encia del CADE en el análisis de fusiones y en la identificación de 
aquellas transacciones que presentan menor riesgo. En ese contexto, pueden ser analizadas como 
transacciones sumarias joint ventures, operaciones sustitución de agentes económicos, fusione s 
con baja participación de mercado con superposición horizontal, fusiones con baja participación de 
mercado con integración vertical u otros casos considerados sencillos lo suficiente para no 
demandar un análisis exhaustivo.  
4.22 Furthermore, the decisio n-making process regarding mergers created important institutional 
efficiencies. As the majority of merger cases are concentrated in the General Superintendence, 
CADE 's Administrative Tribunal is able to focus on the challenged and complex merger cases.  
Pregunta:  ¿Podría Brasil indicar cuáles son los criterios para remitir el control de concentraciones 
económicas a la Superintendencia General o al CADE?  
La Superintendencia General del CADE analiza y emite las decisiones cuanto a las fusiones 
sumarias y ordi narias, cerca de 95% de los casos notificados. Los casos declarados complejos son 
analizados por la Superintendencia General que emite un parecer de recomendación (aprobación, 
aprobación con remedios o reprobación de la transacción) al Tribunal Administrat ivo.  
Éste, por su vez, es el órgano adjudicador del CADE, responsable por analizar, juzgar y pronunciar 
la decisión final relativa a los actos de concentración declarados complejos. Hay también la 
previsión del mecanismo de avocación, en el cual un Comisionado,  miembro del Tribunal, puede 
requerir el análisis y la decisión de cualquier caso (sumario u ordinario no complejo) que haya sido 
decidido por la Superintendencia General.  
4.27 International cooperation is also an important feature of competition law and policy in Brazil. 
CADE has cooperated with several foreign jurisdictions in the resolution of anti -competitive cases, 
assessment of mergers and a close dialogue in order to make their work converge for the purpose 
of more effective competition enforcement.   
Pregunta:  ¿Qué formas de cooperación realiza el CADE con otras jurisdicciones para la resolución 
de casos de prácticas anticompetitivas y el control de concentraciones económicas?  
La cooperación internacional desarrollada por el CADE se establece especi almente por medio de 
memorandos de entendimiento, tanto en el nivel bilateral como en el multilateral. El CADE también 
ha adherido al marco para el intercambio de informaciones no confidenciales de los Grupos de 
Trabajo sobre Cartel y sobre Fusiones de la RICE/ICN. Además, hay las solicitudes de cooperación 
para los casos específicos de fusión o de conducta anticompetitiva, cuya iniciativa puede ser del 
CADE o de una autoridad extranjera. En el caso de las solicitudes de cooperación puede haber 
                                                
6 The Administrative Council for Economic Defense (CADE).  WT/TPR/M/358/Add.1  
 
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  intercambio de información confidencial, en caso de renuncia de confidencialidad (waiver) por las 
partes involucradas, o apenas intercambio de información no confidencial, en caso en que no haya 
waiver.  
4.28 Regarding the financial system, according to Law 4. 595/64, art. 18 2°, the competence to 
control the competition aspects, including mergers and unilateral and coordinated anticompetitive 
conducts, is attributed to the Central Bank, which considers in this process, besides the effects in 
market concentration and co mpetition, stability and efficiency aspects intrinsically related to the 
financial sector.  
Pregunta:  ¿Cuál es el motivo por el que el control de prácticas anticompetitivas y concentraciones 
económicas se ha repartido en diferentes instituciones nacionales?  Por ejemplo, para el ámbito 
financiero se ha delegado este control al Banco Central de Brasil.  
Law 4.595, issued in 1964, granted the Banco Central do Brasil (BCB) powers to assess 
competition aspects in financial markets. Law 8.884, issued on June, 11th, of 1994, and Law 
12.529, issued on November, 30th, of 2011, granted Conselho Administrativo de Defesa 
Econômica - CADE, the Brazilian antitrust agency, the necessary powers to regulate competition 
aspects in all segments of the Brazilian economy. Therefore, the present overlap between CADE 
and the BCB in the regulation of competition in financial ma rkets has historical and regulatory 
reasons. Nevertheless, CADE and the BCB have exchanged technical information on the 
assessment of competition issues in financial markets.  
Medidas antidumping, compensatorias y de salvaguardia  
4.29. During the period und er review, Brazil made use of trade remedy mechanisms, such as anti -
dumping and countervailing measures, in conformity with the relevant WTO rules. Although the 
number of measures in force has increased since 2012, the number of measures applied each year 
constantly and significantly decreased during the period under review.  
Pregunta: ¿Podría señalar Brasil la relación entre el incremento de las medidas en vigor, con un 
decrecimiento en la aplicación de estas medidas?  
The increase or decrease in contingen cy measures does not depend solely on the Brazilian 
investigating authority (Departamento de Defesa Comercial – DECOM) to the extent that the 
decision to submit a petition, as a rule, falls on the domestic industry. That said, out of all 
investigations act ually initiated by DECOM , about 42% do not result in the imposition of definitive 
measures.  
Nevertheless, two main causes can be mentioned for the increase in the number of measures in 
force since 2012. Firstly, the international crisis of 2008, which ha s had a substantial impact on 
the volume and patterns of international trade, including the retraction of certain trade flows, the 
decrease of demand and the redirection of production surpluses to potential recipient markets, 
such as Brazil, which, at the time, was still in a good overall economic situation. Another reason 
was the appreciation of the Brazilian currency, which contributed to the increase of Brazilian 
imports, and which, in this context of crisis, resulted in a greater demand for trade defens e 
instruments by the Brazilian private sector. As a result, between 2011 and 2013, there was also an 
increase in the number of investigations initiated and of trade defense measures applied.  
Thus, although there is a downward trend in the number of petitio ns filed and in the number of 
investigations initiated since 2014, the average number of investigations initiated between 2012 
and 2016 has resulted in an increase in the stock of trade defense measures applied.  
A trend of reduction in the demand for trade  defense measures has initiated in 2014, and the 
expectation is that, at the current pace of decline, lower levels of investigation and new trade 
defense measures will be observed in the coming years.  
  WT/TPR/M/358/Add.1  
 
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  EUROPEAN UNION  
WT/TPR/S/358 – WTO Secretariat Report  
2 TRADE AND INVESTMENT REGIME  
2.3 Trade Policy Objectives,  
Paragraph 2.12, page 28  
According to the report, Brazil continued, during the period under review, to focus on 
strengthening regional economic integration through MERCOSUR and LAIA.  
EU question  No 1: Could Brazil please elaborate on its role in the Latin American Integration 
Association (LAIA), and how does this relate to its role in Mercosur?  
MERCOSUR and LAIA are among the most important fora in which Brazil pursues regional 
integration. Braz il is a founding member of both LAIA and MERCOSUR.  
LAIA was established by the 1980 Montevideo Treaty (TM80), which brought an important element 
of flexibility to the legal framework of integration initiatives in the region: the possibility of signing 
agreements between only two or more member countries. The Latin American Free Trade 
Association (LAFTA), which preceded LAIA, required that any trade concession from a member 
country to another would be immediately and automatically extended to the others.  
The flexibility brought about by LAIA resulted in a significant increase in the number of trade 
agreements in Latin America. LAIA has been playing an important role as the main legal 
framework for trade agreements in the region.  
The TM80 comprises the foll owing mechanisms: a Regional Tariff Preference, reciprocally granted 
to each member country; Regional Agreements, in which all members countries participate; and 
Partial Agreements, in which not all members countries participate and whose objective is to 
create the necessary conditions to expand the regional integration process through the gradual 
multilateralization of Partial Agreements among member countries.  
Since the 1990s, Brazil has signed under the legal and institutional umbrella of the TM80 many 
Partial Agreements, including the Economic Complementation Agreement number 18 (ACE 18), 
which contains MERCOSUR´s trade commitments and rules. Due to the LAIA agreements network, 
South America will become a free trade area for Brazil in 2019.  
The TM80 was  notified to the GATT under the "Enabling Clause", allowing the member countries of 
LAIA to establish tariff preferences and commitments on reduction or elimination of non -tariff 
measures without the need to extend these benefits to other GATT members. Thi s gives legal basis 
for trade commitments within the scope of MERCOSUR.  
2.5.2 Regional and preferential trade agreements (RTAs and PTAs)  
Table 2.2 Brazil's RTAs and PTAs in force: main features 2017  
EU question No 2 : With reference to the following Agreeme nts: i) 'MERCOSUR -SACU'; ii) Latin 
American Integration Association (LAIA), iii) MERCOSUR -Chile (ACE -35) and iv) Economic and 
Trade Expansion between Brazil and Peru, could Brazil clarify what "Partial scope agreement" 
means?  
In LAIA, the term "Partial Scope Agreement" refers to an agreement in which not all member 
countries participate. It does not refer to the coverage of the agreement.  
The MERCOSUR -Chile agreement (ACE 35) is a free trade agreement signed under the umbrella  of 
the Montevideo Treaty, which established the Latin American Integration Association (LAIA). Both 
were notified to the WTO pursuant to paragraph 4(a) of the Enabling Clause. The MERCOSUR -Chile 
agreement has 100% of trade liberalization.  WT/TPR/M/358/Add.1  
 
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  The Economic an d Trade Expansion Agreement between Brazil and Peru comprises chapters on 
investments, government procurement and trade in services.  
EU question No 3 : With reference to the agreement MERCOSUR -Chile (ACE -35) and the Economic 
and Trade Expansion between Braz il and Peru, could Brazil clarify why they have not been notified 
to the WTO?  
The Montevideo Treaty -1980, which created the Latin American Integration Association (LAIA), 
was notified pursuant to paragraph 4(a) of the Enabling Clau se (WTO Document L/5342,  
1 July 1982).  
Every year, new notifications disclose full information on the agreements concluded under the 
Treaty of Montevideo. These documents fully comply with sections D to G of the "Transparency 
Mechanism for Regional Trade Agreements", as adopted by the Decision of 14 December 2006. 
The MERCOSUR -Chile (ACE 35) agreement was notified to the WTO through document 
WT/COMTD/11 (8 October 1997), which can be accessed at the following page:  
https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009 -
DP.aspx?la nguage=E&CatalogueIdList=54026&CurrentCatalogueIdIndex=0&FullTextHash=1&HasE
nglishRecord=True&HasFrenchRecord=True&HasSpanishRecord=True  
The Economic and Trade Expansion Agreement between Brazil and Peru has not yet been notified 
because it still does not have a number as a Partial Agreement signed within the framework of 
LAIA. It is important to stress, as mentioned in the Report of the Secretariat, that the Economic 
and Trade Expansion Agreement between Brazil and Peru is not yet in force.  
2.6 Foreign inv estment regime, page 40, par. 2.40  
Reference is done to the new model of investment agreements.  According to the report, the  new 
Brazilian model of investment agreement addresses key shortcoming in traditional approach.  
EU question No 4 : Could Brazil expl ain the objectives behind  its new model of investment 
agreements, built upon UNCTAD and OECD guidelines? In particular, could Brazil indicate how it 
expects these agreements to attract investors, what rights those investors have,  and how these 
agreements w ould be used by an investor in practice, and indicate whether  this approach could 
converge with the new investment policy initiatives put forward by the EU, such as the Multilateral 
Investment Court?  
The Cooperation and Facilitation Investment Agreement (CFIA) is an innovative alternative to 
traditional investment agreements, seeking to overcome its limitations and litigious approach by 
fostering a more dynamic and constructive relationship between the  Parties. Developed on the 
basis of discussions with international organizations, such as UNCTAD and OECD, and of extensive 
consultations with the Brazilian private sector, the CFIA seeks to meet investors´ needs in a 
concrete, pragmatic and proactive mann er, while at the same time respecting the development 
strategy and the regulatory rights of host countries.  
The CFIA establishes a set of measures that reduce the investor's exposure to risk and a 
framework for the treatment of investors and their investm ents. It contains guarantees of non -
discrimination (national treatment and most favored nation treatment), transparency clauses and 
specific conditions for cases of direct expropriation, as well as compensation in case of conflicts 
and guarantees for inter national transfers.  
One of the main pillars of the CFIA is institutional governance. The model proposes the 
establishment of a Focal Point/Ombudsmen in each Party and the creation of a Joint Committee. 
The Focal Point/Ombudsmen acts as a facilitator of th e relationship between the investors and the 
host country governments, promoting interaction with the relevant authorities and providing 
information support. In Brazil, the "Ombudsman for Direct Investment" (OID) was established 
within CAMEX, the Foreign T rade Board, an interministerial body linked to the Office of the 
President of the Republic.  WT/TPR/M/358/Add.1  
 
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  The Joint Committee is composed of government representatives of both Parties and oversees the 
implementation of the Agreement. It is also responsible for the shari ng of information regarding 
investment opportunities, bilateral investment cooperation and facilitation initiatives. Furthermore, 
the Joint Committee acts in the prevention of disputes and encourages the amicable settlement of 
any issues involving bilatera l investment.  
While traditional Bilateral Investment Treaties (BITs) focus on protecting investment through 
mechanisms of Investor -State Dispute Settlement (ISDS), the Brazilian model focuses on dispute 
prevention mechanisms and provide for mandatory and legally binding State -to-State arbitration, 
much like the dispute settlement system in the World Trade Organization. In this sense, the CFIA 
and the European proposal of a Multilateral Investment Court converge in the sense that they 
represent an alternati ve approach to the traditional BIT means for the resolution of disputes. 
Nevertheless, the characteristics of ISDS in the European proposal could prove to be an obstacle 
to its convergence with the CFIA. The core of the Brazilian model is promoting an alte rnative to 
ISDS and indirect expropriation clauses, which were historically considered not only a 
discrimination against national investors, but also a hindrance to the adoption of public policies.  
EU question No 5:  Could Brazil clarify whether the lack of  binding mechanism for dispute 
settlement has a negative impact on the level of protection of Brazilian investors abroad?  
Dispute prevention is a central feature of the CFIA. While traditional BITs focus on promoting 
investment through the right for inves tors to litigate against the host State (ISDS), the Brazilian 
model focuses on dispute prevention mechanisms and provide for mandatory and legally binding 
State -to-State arbitration, much like the dispute settlement system in the World Trade 
Organization. The main purpose of the State -to-State arbitration is to determine whether the host 
state violated any of the disciplines of the agreement and, if so, recommend that the 
nonconforming measure be adjusted or eliminated. Although Brazil is not part of any tr aditional 
BITs, it continues to receive significant amounts of Foreign Direct Investment (FDI). In 2016, for 
instance, Brazil ranked 6th among the largest recipients of FDI in the world.  
EU question No 6:  What powers does an investment ombudsman have at th eir disposal to 
intervene and provide effective remedies in situations where State measures are determined to be 
harmful to an investment?  
The Ombudsman for Direct Investment (ODI) was established by the Decree 8.863/2016. The ODI 
is institutionally locat ed within the Foreign Trade Board (CAMEX), an interministerial body linked to 
the Office of the President of the Republic. The ODI works as a national focal point, as it acts as a 
facilitator of the relationship between the investors and the host country`s  government, both in 
terms of dialogue with the relevant authorities and by providing practical support, with the 
ultimate goal of improving the business environment and attracting and maintaining investments. 
The ODI can (i) propose to the relevant entiti es of the Public Administration improvements in the 
legislation or in the procedures adopted; (ii) request detailed information related to complaints 
received; (iii) seek to resolve, in consultations with the relevant Public Administration institutions, 
queries sent by investors; and (iv) recommend changes in legislation, with a view to the 
continuous improvement of the investment environment.  
2.3 Trade Policy Objectives  
Paragraph 2.12, page  
According to the report, Brazil continues to impose local content  requirements in many sectors.  
EU question No 7 : Could Brazil explain how the current policies whereby local content 
requirements are imposed in sectors like oil and gas and telecommunications as well as other 
production step -related local content requirements are compatible with WTO rules? Has Brazil 
carried out economic studies to analyse the cost effectiveness of such policies? Has Brazil 
considered policy alternatives to achieve their goals of industrial development, production 
diversification, technological upgrading, etc.?  WT/TPR/M/358/Add.1  
 
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  Brazil´s policies conditioning the granting of subsidies on production steps requirements are not 
contingent on the use of domestic over imported goods. As such, they are not related to any "local 
content requirement" inconsi stent with WTO law.  
Brazilian legislation does not favor any specific industries nor create investment barriers or market 
access limitation. It seeks to foster local scientific and technological development. In the 
telecommunication sector, for instance, the National Broadband Program and the auctions of radio 
spectrum did not discriminate any investment or bidder on basis of the origin of capital, hence no 
preference is granted. The procedures allow firms to develop technology locally without forcing 
them to choose suppliers in a non -cost effective way.   
2.6 Foreign Investment Regime  
Paragraph 2.38, page 39  
Brazil states it would like to stimulate Foreign Direct Investment, both inbound and outbound. 
Some EU Member States have been put on a list of countri es that are said to have favourable tax 
regimes (so called grey list). The consequence of it is that companies are being faced with more 
taxes and with more uncertainty with regard to their investments, both in Brazil as in the EU.  
EU question No 8:  Could Brazil indicate how this Normative Instruction is compatible with Brazil's 
wish to stimulate investments?  
Normative Instruction (IN) 1037/2010 is part of a set of legislation to provide for transparency and 
to assure revenue collection. It establishes a l ist of favoured taxation countries and dependencies, 
and privileged fiscal regimes. Basically, it identifies, for taxes purposes, countries and 
dependencies with privileged regimes and privileged regimes granted in given countries. This list 
aims to give t ransparency to Brazilian taxpayers that operations with entities resident therein fall 
within the purview of the Brazilian transfer pricing rules and some other specific provisions. The 
main goal of the aforementioned legislation is to reach a balance betw een promoting a healthy 
business environment and protecting government revenues.  
Paragraph 2.35, page 38  
The report indicates air transport as a restricted sector for foreign investment. In April 2017 the 
President issued an executive order, which lifts all restrictions and allows for 100% foreign 
ownership of Brazilian airlines.  
EU question No 9 : Could Brazil clarify whether there is any plan to liberalise the air traffic 
industry? If this is the case, what concrete actions will be taken?  
The liberaliza tion of the air transport sector in Brazil is under discussion at the National Congress. 
In April 2017, the Presidency sent Congress a bill (PL 7425/2017which eliminates all restrictions 
for foreign investment on Brazilian air carriers. Therefore, Brazilia n air transport companies could 
hold up to 100% foreign capital. PL 7425/2017 is currently subject to the deliberation of the 
Chamber of Deputies (the Lower House).  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1. Measures directly affecting imports  
3.1.1 Customs procedures, valuation, and requirements  
3.1.4 Other charges affecting imports  
Paragraph 3.37, page 50  
The EU shares the Secretariat's report view that Brazil's internal taxation regime remains overly 
complex, including in the treatment of imported goods and services. Brazil introduced a tax reform 
in 2015 (Decree Number 8.512 of 31 August 2015, since revised by decree number 8.9 50 of 
29 December 2016 ) w hich set an IPI tax rate of 25% ad valorem for cane -based spirits (including 
Cachaça, but excluding spirits made from molasses, i.e. most rums). All other spirits are taxed at 
a rate of 30%, which results in imported spirits being subject to the higher tax  rate and thus the 
measure raises concerns as to its compatibility with Article III.2 of the GATT.  WT/TPR/M/358/Add.1  
 
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  EU question No 10 : Would Brazil consider harmonising the tax rates for non -molasses based rum 
and cachaça with the rates for all other spirits, regardless o f their specificities in order to ensure 
compatibility with its WTO commitments?  
There is no ongoing study on this subject. However, it is important to highlight that same rates of 
the IPI apply on domestic or imported spirits, even though the taxable bas e of the domestic spirits 
is higher than that of the imported ones, so Brazil understands that it is fully compliant with WTO 
commitments on this matter.  
Paragraph 3.38, page 50  
According to the report, depending upon their nature, certain transactions (in cluding cross -border 
ones) may also be subject to other charges.  
EU question No  11: Considering that the standard Financial Transactions Tax (IOF)  rate of 0.38% 
is applied to transactions related to imports, and a rate of 0% is applied to transactions related to 
exports, what justifie s this differentiation of rates?  
The IOF applied to transactions related to imports and exports is, respectively, ze ro rated and 
exempted, as established in articles 15 -B.I, and 16.I, of the Decree 6,306 of 2007, therefore, 
there is no actual differentiation of rates.  
Paragraphs 3.40 -3.41, page 51  
The ICMS, a value -added tax levied on imports, intrastate and interstate transactions involving 
merchandise, inter -municipal and interstate transportation services, and communication services, 
is governed by 27 distinct regulatory regimes.  
EU question No 12 : Could Brazil clarify whether it foresees a tax reform at States' level that would 
seek the alignment of the rates for all spirits regardless of their specificities?  
There are some Bills at Brazilian Congress and on -going plans regarding the reform and 
simplification of the IC MS but as this involves the main source of revenue of the 27 federal units it 
is not possible to foresee the time -frame for their conclusion.  
Paragraph 3.44, Page 52  
Reference is done to the PIS and COFINS taxable base.  
EU question No 13 : Could Brazil ple ase give further details on the planned comprehensive reform 
of the PIS/COFINS system? In particular, could Brazil clarify whether it intends to remove the 
ICMS from the taxable base of PIS/COFINS domestic following the 2017 judgement of the 
Supreme Court (RE547.706/DF)?  
Studies have been done in order to simplify the tax system in general and some taxes in 
particular. As a first result, there is already a draft of a bill to create a new tax (social contribution) 
to replace PIS and COFINS. This new tax wil l be fully compliant with OECD guidelines. However, 
the bill has not yet been introduced for consideration of the National Congress.  
As there has not been a definitive decision regarding the taxable base of PIS/COFINS, there is no 
legal basis to remove th e ICMS from it.  
3.1.3 Tariffs  
3.1.3.1 Applied MFN tariff  
Brazil applies the MERCOSUR Common External Tariff (CET) expressed in the Common MERCOSUR 
Nomenclature (NCM).  The list of exceptions to the MERCOSUR CET and other exceptions have  
been extended until 31 December 2021.  WT/TPR/M/358/Add.1  
 
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  EU question No 14 : Could Brazil please explain the list of its derogations to the Mercosur CET and 
the rationale for these derogations? Could Brazil also provide information as to the possible 
removal of such derogati ons?  
According to Decision CMC 26/15 of MERCOSUR, Brazil can maintain a list of exceptions to 
Common External Tariff (CET) of up to 100 tariff lines, and can modify as many as 20% of them 
every six months, until the end of 2021. In addition to this unilateral list of exceptions, a member 
of MERCOSUR can, with approval of all other members of the block: i) decrease the tariff applied 
to products due to supply issues (Resolution GMC 08/08) of up to 45 MERCOSUR tariff lines; ii) 
increase tariffs, within  WTO bound levels, of up to 100 tariff lines, as established in Decision CMC 
27/15. Brazil is also allowed to establish special tariffs for Capital Goods (BK) and for Informatics 
and Telecommunications Goods (BIT) until the end of 2021 (Decision CMC 25/15) . 
The composition of the list is based on the same criteria adopted in order to establish the 
guidelines for the CET: product category, and existence or inexistence of regional production.  
The criteria and the processes to determine derogations from the Co mmon External Tariff (CET) 
vary according to the mechanism. For instance, the quotas for lower tariffs may be established, 
among other reasons, when it is demonstrated the impossibility of normal and fluid supply in the 
region, due to supply and demand imb alances. For that mechanism in particular, it is for the 
MERCOSUR Trade Commission (CCM) to decide on the lifetime of the measure, the rate and the 
corresponding quantitative limit.  
3.1.5 Import prohibitions, restrictions, and licensing  
Paragraph 3.51, pag e 54  
The report mentions that, according to the authorities, the implementation of the Single Window 
Programme would bring about more efficient solutions for the enforcement of public policies, 
thereby significantly reducing the number of import licensing  requirements.  
EU question No 15 : Considering that over half the tariff lines (more than 5,460) are currently 
affected by non -automatic licences, will this new Single Window system also lead to a reduction of 
non-automatic licences? Could Brazil clarify wh en the Single Window will be operational?  
The new Single Window system will be fully operational for export operations by the end of 2017, 
while the import operations will be fully covered by the new system by the end of 2018.  
The system will have functio nalities in order to permit the reduction of the number of non -
automatic licenses.  
3.2 Measures Directly Affecting Exports  
3.2.1 Customs procedures and requirements  
Paragraph 3.62, page 57  
EU question No 16:  Could Brazil give further details on its authorized economic operator (AEO) 
programme, and related upcoming initiatives?  
Brazilian AEO Program is the certification of supply chain operators that represent low risk in their 
operations, both in terms of phy sical security of the cargo as in the performance of fullfilling tax 
and customs requirements.  
The Program is regulated by the RFB Act nº 1.598/2015 and its application is voluntary. Until 
2019, Brazilian AEO Program aims to achieve the target of 50% of ex port and import declarations 
registered by AEO certified companies.  
Types of AEO Program in Brazil  
AEO-Security (AEO -S), certification granted based on security criteria applied to the international 
logistics chain.  WT/TPR/M/358/Add.1  
 
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  AEO- Compliance (AEO -C), certification g ranted based on fulfillment of tax and customs 
obligations, divided into 2 tiers: AEO -C1 and AEO -C2. Operators that choose to apply for AEO -S 
and AEO -C2 are granted the certification AEO -Full (AEO -F). 
AEO-Single Government Status, certification granted by others Government Agencies that sign 
cooperation protocols with RFB to join the AEO Program.  
Operators that may apply for AEO in Brazil  
Operators  AEO-S AEO-C1 AEO-C2 AEO-F 
Brazilian importers  X X X X 
Brazilian exporters  X X X X 
Carriers  X    
Freight forwarders  X    
Customs warehouses  X    
Airport operators  X    
Port operators  X    
Customs brokers   X   
Main Benefits to AEO  
• Recognition by international customs administrations via Mutual Recognition Agreements 
(MRA).  
• Specially appointed AEO Customs Support Officer to establish direct communication channel 
in Customs to answer questions and guarantee AEO's priorities.  
• Expedited clearance at ports of entry and exit.  
• Permission to submit import declaration before the goods arrival.  
• Lower r ate of physical and document controls in import and export operations.  
• Priority on document and physical controls.  
• Possibility of using the Brazilian AEO Program logo.  
• Publishing on the RFB website the names of certified companies and recognition as a safe 
and reliable operator in the international supply chain by Customs Authorities.  
The Brazilian AEO Program's vision is: "By 2019, Brazil will be recognized as one of the world 
leaders in the control and management of the international trade flows due  to its AEO Program."  
3.2.4 Export support and promotion  
Paragraph 3.78, page 60  
In occasion of the previous review in 2013, Brazil declared that REINTEGRA would not be renewed 
and that the measure was not effective anymore. As stated in the Secretariat's  report, despite this 
declaration, in 2014, Brazil reinstated the Special Regime for the Reimbursement of Taxes for 
Exporters (Reintegra) and made it permanent. The number of Reintegra beneficiaries increased 
from 286 in the first quarter of 2012 to 1,409 in the fourth quarter of 2015.  
EU question No 17 : Could Brazil confirm that the Brazilian exporters are not required to show that 
reimbursement received under the Reintegra program corresponds to actual internal taxes paid, 
and that the reimbursement is al so dependent on a minimum local content?  
Reintegra provides for a rebate of the indirect taxes levied on the inputs that are consumed in the 
production process of the exported product. Reimbursements under Reintegra are currently 2% of 
the value of the ex ported product. Brazil has established that, in all sectors, these percentages are 
considerably lower than the tax residue in the supply chain of exported products. As such, 
Reintegra is fully compatible with footnote 1 and Annex I of the SCM Agreement, gi ven that 
reimbursements are not "in excess of" of accrued taxes. The RFB is in charge of all procedures 
required to demonstrate that all requirements of REINTEGRA are met, in line with footnote 1 and 
Annex I of the SCM Agreement.  WT/TPR/M/358/Add.1  
 
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  3.2.4.2 Export -processing zones  
Paragraph 3.82, page 61  
As stated in the report, the legal and institutional framework for export -processing zones (EPZs) 
remains unchanged since Brazil's last review.  
EU question No 18 : Could Brazil please explain the system of Free Trade Zones and specify the 
differences with the Export Processing Zones? Could Brazil also indicate how the system assures 
that the production is those zones do not unfairly compete on the domestic market, with other 
domestic and imported products?  
The Free Trade Zones (FTZs) were created exclusively in the Amazon region, to promote 
development in cities located in the Northern region, the most isolated and less developed area of 
Brazil, where poverty levels are higher than in the rest of the country.  
FTZs' main objecti ves include job creation, ensuring supply of food and industrialized goods to 
remote regions, incentive their integration with neighbouring countries and the rest of Brazil and 
protect the amazon rainforest in the Amazonas state.  
There are federal incentives for production and trade in these special zones, aimed at minimizing 
the effects of their remoteness: most of them do not have a road or railway connecting with the 
other regions of Brazil.  
The main difference between the FTZs  and Export -Processing Zones (EPZs) is that FTZs do not aim 
to promote exports, they were created with the objective of promoting development in poor areas 
in the north of the country and seek a sustainable economy supported by free trade.  
The production in these Free Trade Zones does not compete unfairly with similar products in the 
domestic market of Brazil. When a good leaves the FTZ area into Brazil, it pays all the standard 
Brazilian taxes.  
3.3.1.3 Federal financing facilities  
Paragraph 3.121, page 7 0 
As stated in the report, Brazil's National Development Bank (BNDES) is the main entity providing 
federal financing to entrepreneurs in Brazil and it maintains a number of schemes that facilitate 
access to credit, either directly or through accredited fin ancial institutions.  
EU question No 19 : Could Brazil give an update on the new long term rate (taxa de longo prazo – 
TLP) introduced with "Medida Provisoria No 777/2017" and confirm that it is implemented in the 
new loans?  
The current text of Medida Provisória No 777/2017 establishes that the TLP will be implemented on 
BNDES's new loans starting in January 2018. Currently MP 777/2017 is being debated in the 
Brazilian Congress.  
3.3.3 Sanitary and phytosanitary requirements  
Paragraph 3.145, page 75  
The report gives information on new institutional framework for SPS protection introduced since 
last review and clarifies that ANVISA and Ministry of Agriculture, Livestock and Food Supply of 
Brazil (MAPA) share regulatory and surveillance competences over cer tain vegetable products and 
that pre -marketing regulation and surveillance of in natural food are the remit of MAPA. All EU 
products subject to import licenses with MAPA have to be analysed in both origin and destination 
and all documents, registrations an d licenses are mandatory for each and every shipment.   WT/TPR/M/358/Add.1  
 
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  EU question No 20 : Could Brazil explain in detail what is the rationale for requiring twice the 
analysis of all products falling under MAPA remittance, i.e. both at the origin and at destination? 
Could  Brazil also clarify why registrations and licenses are mandatory for each and every 
shipment?  
The Brazilian  legislation  determines  mandatory  registration  and previous  authorization  for 
importation  depending  on the product  (animal  products,  wines  and beverages,  agrochemicals,  
seeds,  among  others).  
Normative  Instruction  51/2011  determines  all the import  procedures  to be observed,  specifying  
the administrative  procedure  to be followed  for the importation  of the good.   
EU question No 21 : Considering the lengt hy procedures of the on -the-spot audits/inspections 
carried out by MAPA and ANVISA to evaluate the inspection and certification systems in exporting 
countries, could Brazil clarify whether its legislation or administrative procedures (or both) set 
specific  timeframes for carrying out, reporting and concluding the approval process started with 
such evaluations? Is there any fast track for audits/inspections that exceed certain length, or for 
specific products that are lacking in the Brazilian market?  
Portaria  126/2016  establishes  the deadlines  for the implementation,  notification  and conclusion  of 
the proceedings  related  to equivalence  recognition  of sanitary  inspection  systems  of foreign  
countries  and habilitation  of the plants  interested  in exporting  to Brazil.  It states:  
"2.6. The first draft reports  of the foreign  missions  will be prepared  in 60 days after the end of the 
mission  and will be made  available  for comments  to the competent  sanitary  authority  of the 
foreign  country  and for further  recomme ndations  for the same  period.  After the analysis  of the 
comments  and the procedures  adopted  by the foreign  country,  the final report  of the mission  will 
be issued  in 30 days and will be published  by DIPOA  on the website  of the Ministry  of Agriculture".  
Paragraphs 3.147 and 3.150, Page 76  
Reference is made to the notifications mentioned in these paragraphs.  
EU question No 22 : Could Brazil list the SPS measures announced in regular notifications to the 
WTO which were supported by a risk assessment, when the mentioned measures were not based 
on or not fully aligned with the OIE's international standards?  
The regular  notifications  regarding  animal  health  are based  on or aligned  with the OIE's 
international  standards.  
SPS notifications provided by ANVISA are no t accompanied by risk assessment documentation. 
The risk assessment documentation is for internal use and distribution. As part of the programme 
to implement Good Regulatory Practices, ANVISA is planning to publicize the documentation 
related to Regulatory  Impact Analysis for its regulations, which might be provided as an annex to 
notifications in the near future.  
Paragraph 3.149, page 76  
Reference is done to the SPS -related legislative developments and procedural changes in the 
Brazilian System. The EU ack nowledges the efforts made by Brazil to facilitate imports by putting 
in place an electronic system to approve/register labels.  
EU question No 23 : Could Brazil explain why its legislation requires the approval/registration of all 
labels of products of anim al origin imported from countries with an inspection and control system 
considered by Brazil as equivalent to the Brazilian system?  
The Decree  9013/2017  determines  that domestic  or imported  animal  products  shall be registered  
in MAPA,  indicating  its formulation,  the production  method  and the label.  WT/TPR/M/358/Add.1  
 
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  According  to the Decree,  labelling  or label should  be understood  as: "any footnote,  image  and any 
other  descriptive  or graphic  material  displayed  on the package  of the animal  origin  product  aiming  
to its identification . 
Para 3.151, page 76  
EU question No 24 : As part of its efforts to streamline foreign trade procedures and formalities, 
what steps is Brazil taking to identify and eliminate overlapping procedures and administrative 
burdens not necessary to achieving safety and other objectives?  
MAPA and ANVIS A work jointly in national and international technical fora, including Codex 
committees and MERCOSUR working groups. The joint participation is a way of promoting the 
convergence and alignment of understanding of both institutions, within their specific ar eas of 
competence. Technical meetings and the exchange of official information are a routine between 
MAPA and ANVISA, as well as exchange of experiences in developing legislation and targeted 
consultations during the process of elaborating regulations.  
ANVISA is currently working in the rationalization of its regulatory stock, reevaluating benefits and  
impacts of regulations, with the aim of reaching the necessary protection to human health without 
imposing unnecessary obstacles to the development and inno vation in the private sector, as well 
as avoiding duplication of work with other Governmental bodies.  
Paragraph 3.153, footnote 196, page 77  
In footnote 196, it is stated that "the SDA carries out on -site inspections and sends questionnaires 
to the SPS au thorities of the exporting country to evaluate the procedures followed by its 
counterparts; on -site inspections of the exporters' establishments are undertaken at the cost of 
the interested party."  
EU question No 25 : Acknowledging that "on -site inspections " are dependent on the timely 
information provided by the authorities of exporting countries concerning diseases, animals, the 
environment and the interaction among these elements, and that for many y ears there are over 
40 market access applications filed by EU Member States in the Ministry of Agriculture, Livestock 
and Food Supply of Brazil (MAPA), could Brazil indicate how many animal health and food safety 
"on-site inspections" have been carried out in the EU by the DAS/SDA/MAPA and 
DIPOA/SDA/MAPA, respe ctively, per year between 2013 and 2016?  
The Ministry  of Agriculture  launched  the "Plano  Agro Mais",  that includes  an array  of important  
measures  that go from updating  and publishing  regulations  to changes  in the work routine  of the 
Ministry  of Agricultur e. More information  on the measures  adopted  until now can be found  on 
http://www.agricultura.gov.br/agromais/index.html . 
EU question No 26 : If there are expeditious import procedures with or  without audits (e.g. imports 
of low risk products, granting pre -listing to countries that have been exporting to Brazil without 
pre-listing, grouping countries to be audited by Brazil in one go, extending the approval of 
products from other animal species  for countries with systems considered by Brazil as equivalent 
to its own), could Brazil indicate when it will start applying them so as to quickly eliminate the 
backlog of market access applications?  
Portaria  126/2016  determines  the procedures  to recognize  the equivalence  of systems  and the 
approval  of plants  handling  products  of animal  origin.  The legislation  deals with the types  of 
habilitation  and other  criteria  to be observed,  such as equivalence  recognition,  types  of habilitation  
and exemption s, among  others.  The procedures  established  by the Portaria  126/2016  are under  
implementation.  
Paragraph 3.154, page 77  
Reference is done to the Importation Alert Regime (RAI) maintained by Brazil.  WT/TPR/M/358/Add.1  
 
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  EU question No 27 : Could Brazil provide details about st atistics on the operation of the Importation 
Alert Regime (RAI) and the application of the different corrective measures described under this 
point?  
The Internal  Normative  SDA 01/2016establishes  approval  procedures  for importation,  inspection,  
re-inspecti on and special  controls  applicable  to importation  of edible  animal  products  originated  in 
establishments  subject  to the Import  Alert System  (RAI).  The normative  includes  procedures,  
criteria  and measures  to be applied  to specific  cases  according  to the respective  regime.  It includes  
frequency  of sampling  and other  issues.  
3.3.6 Government procurement  
Paragraphs 3.178 and 3.179, page 83  
Foreign companies are disadvantaged by the Brazilian requirements to establish a legal presence 
in Brazil or have legal rep resentation there in order to be able to participate in certain public 
procurement processes. In addition, Federal Law Nº 12.349/2010 grants preferential treatment 
(up to 25% increase in price) for procurement of goods and services from companies with a 
presence in Brazil or that invest in technology development in Brazil.  
EU question No 28 : Does Brazil have plans to review its legislation to also allow foreign firms to 
participate in public procurement tenders at all levels?  
The decrees establishing product specific preference margins seem  to be all expired but one which 
is in force until 30 June 2017.  
Paragraph 3.182, page 84  
The decrees establishing product specific preference margins seem to be all expired but one which 
is inforce until 30 June 2017.  
Pais Tipo Produto  Ano de execução  
Dinamarca  Sistema  Carne suína  2015 
Grécia  Sistema  Lácteos e mel  2015 
Países Baixos  Sistema  Lácteos  2013 
Portugal  Manutenção  Carne suína, lácteos, pescado  2015 
Reino Unido  Sistema  Lácteos  2015 
Suécia  Sistema  Pescados  2016 
EU question No 29:  What are Brazil's plans with regard to the decree expiring on 30 June 2017? Is 
there a plan to introduce other preference margin decrees?  
Brazil's Government procurement requirements are a ligned with Brazil´s international 
commitments, that will also be taken into consideration in any possible review of related laws and 
regulations.  
3.3.7 Intellectual Property Rights  
Paragraph 3.187, page 85  
EU question 30:  Could Brazil clarify which parts of their legislation grant rights that exceed the 
minimum terms laid down in the TRIPS Agreement?  
The following provisions of Brazilian IP law are more beneficiary to intellectual property rights 
holders than the TRIPS Agreement:  
- Trademarks are valid for a (renewable) term of 10 years (instead of the mandatory seven);  
- Copyright is enforceable for a period of 70 years (instead of the mandatory 50) after the year in 
which the author of the work died;  WT/TPR/M/358/Add.1  
 
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  - As TRIPS mandate s, patent terms last for a minimum of 20 years from the date of filing. This 
term can be extended, however, if after ten years there has been no final decision regarding the 
granting of the patent. Since article 40 of the LPI (but not TRIPS) provides for a  minimum period 
of ten years of effective protection, in cases where a patent was granted, say, 13 years after its 
filing it will be valid until the filing's 23rd anniversary.  
Table 3.22, page 88  
Under Brazil's Industrial Property Law, only Geographic Ind ications which are the 'geographical 
name of a country, city, region or locality' (in the Portuguese language) are eligible for registration 
as a GI. As a result, the indication "Scotch Whisky" cannot be registered as a GI because 'Scotch' 
is not a place i n terms of Brazilian law despite clearly being a produce that has a specific 
geographic origin.  
EU question No 31 : Does Brazil plan to amend the Geographical Indications regulation of their 
Industrial Property Law so that Scotch Whisky can be eligible for  registration as a GI?  
This Brazilian regulation on geographical indications is a topic of discussion in the framework of an 
inter-agency committee on Intellectual Property. The Trade Ministry (MDIC), the Ministry of 
Agriculture (MAPA) and the Ministry of  Foreign Affairs (MRE) have been working together with 
other government institutions so that possible amendments of such regulation are constantly on 
the agenda. Brazilian government efforts on this matter aim to modernize its legislation. It does 
not mean , however, that the current regulation violates in any way the TRIPS agreement 
provisions on geographic indications.  
3.3.7.2 Industrial property  
Paragraph 3.191, page 88  
EU question  No 32 : Could Brazil provide information on the numbers of patents processe d so far 
under the PPH with the US and the sectors to which they pertain?  
Until July 2017, INPI received 50 fillings through PPH with the USA. This PPH only covers patents 
related to oil and gas technologies.  
Paragraph 3.192, page 88  
EU question No 33:  Could Brazil explain how the PPH PROSUR will work and provide information on 
the progress made on each of the actions described in sub -paragraphs i, ii, iii and iv, on the 
sectors to be covered in the context of PROSUR and on the timing for launching the pil ot PPH 
among PROSUR members?  
Main features about PROSUR PPH in INPI:  
a) It started on 07/01/2017 and it has a term of one year.  
b)  Patent family applications must have been filed first in one of PROSUR's offices.  
c)  Eligible patent applications are those filed under the Paris Union Convention (CUP) or the 
Patent Cooperation Treaty (PCT).  
d)  Eligible patent applications (invention patent and utility model patent) are those that have 
passed substantive examination.  
e)  Any national or international de cision with a positive result can be used.  
f)  Patent applications of any technical field and filed on any date are eligible.  
For more information about PROSUR PPH in INPI, please access:  http://www.inpi.gov.br/menu -
servicos/patente/projeto -piloto -pph. WT/TPR/M/358/Add.1  
 
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  Regarding the actions described in sub -paragraphs i, ii, iii and iv, since PROSUR was created, 
many activities were developed. As an example, it is possible to have information about 
technologies in the public domain, to search for patents, trademarks and des ign through a 
database and to obtain support in filing an application.  
For more information about PROSUR, please access: www.prosur.org.  
Paragraph 3.195, page 89  
EU question No 34:  Brazilian customs apparently seize ex officio goods embodying IPR for 
problems related to their identification. Could customs authorities also act ex officio in the 
presence of counterfeit and pirated goods protected by IPR?  
Brazilian customs authorities can act on request or ex officio to suspend the release of 
counterfeited and pirated goods as a preparatory measure to seize them, as provided for in articles 
605 and 610 of the Customs Code (Decree No. 6,759 of 5 February 2009).  
Paragraph 3.196, page 89  
EU question No 35:  Could Brazil define what is meant by "for failure to meet the needs of the 
market" in the context of the possible granting of a compulsory licence?   
The granting of a compulsory license follows the procedures established in Articles 68 to 74 of Law 
n° 9.2 79, as well as in Decrees n° 4.830 and 3.201. Article 68, paragraph 1, Subparagraph I and 
II of Law n° 9279 implements Article 5(A) of the Paris Convention (1967), regarding compulsory 
licenses on the ground of failure to work or insufficient working. Arti cle 5A was incorporated to the 
TRIPS Agreement by force of its Article 2.1. To date, no compulsory license in Brazil was granted 
based on Article 68, paragraph 1, Subparagraph II of Law  n° 9.279.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fi sheries  
Paras 4.12, page 94 and 4.1.4 Domestic support, All, pages 96 -98 
Para 4.29 page 101 and para 4.37 page 105  
4.2 Energy  
Para 4.46, page 109  
4.2.3 Hydrocarbons and biofuels  
4.2.3.3 Biofuels  
4.2.3.3.1 Ethanol  
Para 4.64, page 116  
EU question No 36 : Would Brazil describe its future policy approach for support to sugar 
production? Equally would Brazil describe any future prospects for support to the ethanol industry? 
Based on that, could Brazil provide an understanding on how these policies could affec t the 
balance of sugar exported against that sold for ethanol production year and the change over time?   
Regarding the ethanol industry, the Brazilian Intended Nationally Determined Contribution 
presented in the context of UNFCCC COP -21, in Paris, states Brazil's intention to increase the share 
of sustainable biofuels in the Brazilian energy mix to approximately 18% by 2030. This will involve 
expanding biofuel consumption, increasing ethanol supply, including by increasing the share of 
advanced biofuels (s econd generation), and increasing the share of biodiesel in the diesel mix. This 
measure is in line with IPCC's conclusions that global scenarios consistent with a likely chance to 
keep temperature change below 2°C relative to pre -industrial levels are cha racterized by 
sustainable use of bioenergy, among others.  WT/TPR/M/358/Add.1  
 
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  There is no projected impact on sugar production or exports. Brazil has been able to become the 
worlds' larger sugar exporter and the second larger ethanol producer at the same time. 
Productivity ga ins in ethanol production derived from new technologies, innovation and new 
agricultural techniques positively impacts sugar production which can compensate for shifts in 
end-product choices by producers.  
4.3 Manufacturing  
4.3.3 Border measures  
4.3.4 Dome stic support  
4.3.5 Automotive sector  
Pages 124 to 129  
The report states that the IPI tax reduced rate under the INOVAR -Auto scheme remained 
unchanged.  
EU question No 37:  Does Brazil confirm that INOVAR -AUTO will be replaced by the ROTA 2030 
programme fro m 2018? Could Brazil also detail how this will affect the excise duty (IPI) regime, 
with reduced rates, in place under the current programme?  
As established in Article 1 of Decree 7819/2012, INOVAR - AUTO will expire on December 31, 2017. 
The features of th e future Brazilian automotive industrial policy are still under discussion in light of 
the announced objectives of Rota 2030 of fostering energy efficiency, safety and sustainability of 
the automotive sector. The specific details of the ROTA are still bein g defined but will  take into 
consideration Brazil' s commitments under WTO.  
4.4 Services  
4.4.4 Telecommunications  
Domestic support  
Paragraph 4.150, page 142  
Reference is done to the Brazil Smart Programme (Programa Brasil Inteligente) operational since 
May 2016.  
EU question No 38 : Could Brazil clarify whether the special tax regime introduced under the 
national broadband program (REPNBL -Redes) continue under the new Programa Brasil Inteligente 
(PBI), and what are the changes from the previous National Broad band Plan (PNBL)?  
REPNBL -Redes had legal existence independently of the National Broadband Program (PNBL) and 
the Smart Brazil Program (Programa Brasil Inteligente - PBI).  
The REPNBL -Redes is no longer in force. All projects benefiting from the tax reduct ions under this 
regime were completed until December 31st, 2016. The Smart Brazil Program (PBI) was expected 
to be regulated by the former Ministry of Communications, but due to the institutional changes 
which resulted in the creation of the Ministry of Sc ience, Technology, Innovation and 
Communication (MCTIC) and in the review of the policy approach to telecommunications and the 
regulatory environment, the Smart Brazil Program (PBI) is under re -examination. Meanwhile, the 
National Broadband Program remains  in force.  
4.4.5.2 Maritime transport and ports  
4.4.5.2.1 Shipping  
Domestic support  
Paragraph 4.189, page 153  
Domestic support in the form of tax measures remains in place. In particular, the Additional 
Freight Charge for the Renovation of the Merchant Na vy (AFRMM), a federal tax levied on maritime WT/TPR/M/358/Add.1  
 
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  freight, continues to be applied on the combined cost of freight and insurance at rates of 25% for 
long-distance navigation (international routes) by Brazilian and foreign ships, 10% for cabotage 
navigation, and  40% for inland waterway transportation of liquid bulk cargos in Brazil's north and 
north -east regions. Furthermore, the tax does not apply to countries with which Brazil has 
negotiated a specific clause in LAIA Economic Complementary Agreements.  
EU question No 39 : Could Brazil clarify how it ensures that this tax does not lead to discrimination 
of imports? Could Brazil submit further details on the specific clause in LAIA Economic 
Complementary Agreements?  
The AFRMM fees are applied in a non -discrim inatory manner in relation to the flag of the vessel. 
Tariffs are differentiated for long -haul shipping, cabotage and inland waterway transport, taking 
into account the economic situation and the market structure of the different sectors. AFRMM is 
only cha rged on import cargo.  
4.4.8 Professional services,  
Paragraph 4.213, page 159  
The Report mentions that procedures for revalidation of foreign diplomas are complex and time 
consuming. In the secretariat report of the previous TPR, it was mentioned that Braz il intended to 
review revalidation rules of foreign diplomas, titles, and certificates in order to speed up the 
process.  
EU question No 40:  Could Brazil elaborate more on any development or progress made in this 
regard?  
Several Memoranda of Understanding  with the professional organizations of architects of countries 
such as the United States, England, Portugal, Spain, Peru, Mexico, Colombia, China, among others, 
have already been signed or are being negotiated.  
The Memorandum of Understanding is the first step for future Cooperation Agreements, such as 
the CIAM (Mercosul Countries) Agreement and the Cooperation Agreement OA/PT, which are 
already signed. These agreementsfacilitate professional exchange and the rev alidation of diplomas, 
providing benefits related to the facilitation of documentation required for registration, among 
others.  
Recent initiatives by the Ministry of Education should speed up the recognition of degrees by 
Brazilian universities. The Caroli na Bori platform was launched (http://carolinabori.mec.gov.br). It 
provides information to guide and coordinate the revalidation/recognition of foreign diplomas. 
Brazilian universities have a deadline to publish their requirements on the platform and to ru le on 
revalidation processes. The platform will also compile information on the quality of courses of 
foreign universities and register the courses already subject to revalidation, in order to promote 
transparency.  
Moreover, in 2016, Brazil acceded to the  Convention Abolishing the Requirement of Legalization for 
Foreign Public Documents ("Apostille Convention"), which will simplify the revalidation of diplomas 
between Brazil and other signatory countries. The Apostille Convention simplifes procedures and 
reduce the costs of international document processing. It notably eliminates the need for consular 
legalization (also known as "consularization" or "consular seal"), which will be replaced by the 
"Hague Apostille", to be attached to public documents by the competent authorities of the country 
in which it was issued, making it valid in all other State -Parties to the Convention.  
In light of the competences of Brazil's Judiciary Branch to supervise and regulate notarial 
activities, the National Council of Just ice (CNJ) is the Brazilian focal point to address issues related 
to the Apostille Convention. Apostilles do not exempt the applicants from complying with additional 
requirements by the country or institution receiving the document, such as translations.  
EU question No 41:  Does Brazil foresee in the future recognition of European university degrees?  WT/TPR/M/358/Add.1  
 
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  Yes. Several Memoranda of Understanding, with EU countries such as England, Portugal and Spain 
have already been signed or are in progress. The Memorandum of U nderstanding is the first step 
for future Cooperation Agreements, such as the Cooperation Agreement OA/PT, which facilitate 
professional exchange and revalidation of diplomas, providing benefits related to the facilitation of 
documentation required for reg istration, as well as different deadlines for processing. In addition, 
regulations have been updated, including the Haia Apostille Convention, which eliminates the 
requirement of legalization of foreign public documents, in order to speed up and simplify t he 
legalization of documents among the signatory countries.  
Law Nº 9.394, which is known as the Law on the Guidelines and Basis of National Education 
("LDB"), establishes that undergraduate and postgraduate diplomas awarded by foreign 
universities must be revalidated by Brazilian public universities that have a similar course and 
equivalent field of study (Article 48). This provision is complemented by the principle of university 
autonomy guaranteed by article 207 of the Federal Constitution. Therefore, Bra zilian public 
universities are the competent institutions to recognize studies and degrees in the country, based 
on general guidelines provided by the National Education Council (CNE)  
There is no legal provision for automatic revalidation, but there is roo m for the facilitation of the 
revalidation procedures of the diplomas. Nevertheless, nothing prevents the negotiation of 
Memoranda of Understanding between associations of universities in two countries, in order to 
facilitate the process of revalidation of  diplomas. An example is the Agreement between the 
National Association of Directors of Federal Institutions of Higher Education of Brazil (ANDIFES) 
and The Council of Deans of Portuguese Universities (CRUP) to accelerate the process of 
Equivalence, Recogn ition and Revalidation of Undergraduate Diplomas in Architecture and 
Engineering, signed in June 2013.  
WT/TPR/G/358 – WTO Government's Report  
Paragraph 2.46, page 11  
According to the Report, an important feature of the Government procurement system is acc ess to 
information. The EU welcomes increased transparency in government procurement. The EU 
understands that sub -federal entities (at state and at municipal level) do not have  an obligation to 
publish  government procurement notices on the Government procu rement website but can publish 
on that portal if they wish so.  
EU question No 42 : Could Brazil provide an estimation of  the percentage of GP contracts published 
at sub -federal level (state, municipal)?  
The Federal Government does not have an official estimation, but some independent studies 
indicate that Government Procurements at sub federal level account for 6% of Brazilian GDP.  
EU question No 43 : Is Brazil taking steps to increase access to procurement notices at sub -federal 
level (state, municipal level)? If yes, could Brazil describe those steps?  Does Brazil intend to adopt 
similar transparency initiatives, such as the publication through dedicated websites / portals, also 
at sub -federal level?  
The Federal Government is working to involve sub -federal level in the national system. The main 
activities for that purpose are:  
a)  dissemination information on the procurement system through cooperation with sub -federal 
agencies and;  
b)  developing partnerships to ensure that sub -federal level agencies wil l use the federal 
procurement system for acquisitions made with federal budget.  
Paragraph 3.27, p age 18  
In April 2016, Brazil signed an Agreement on Economic and Trade Expansion with Peru. In that 
framework, Brazil has undertaken market access commitments and obligations in relation to 
government procurement with Peru, including a national treatment obligation.  WT/TPR/M/358/Add.1  
 
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  EU question No 44 : How will Brazil reflect in its national legislation that national treatment is 
granted to Peruvian enterprises and goods? For exa mple, for products in the information and 
communication sectors, will Peruvian goods and suppliers also be granted the established 
preference margin for national products and/or eligibility restrictions to goods and services in 
Brazil?  
Upon the entry into  force of its bilateral commitments on public procurement, if there are 
preference margins in force, Brazil will not apply them against Peruvian goods and services and 
Peruvian suppliers offering such goods and services in public procurement covered by the  
agreement.  
4.1.4 Sanitary and phytosanitary issues  
Page 22, paragraph 4.19  
Brazil states that "Brazil is committed to animal and plant health and food safety in accordance 
with the WTO SPS agreement. All measures aiming at protecting human or animal healt h from 
food-borne risks, human health from animal or plant carried diseases and animals and plants from 
pests or diseases are regularly notified to the Committee on Sanitary and Phytosanitary Measures 
– SPS Committee/WTO and made available on the internet. " 
EU question No 45:  Could Brazil list the Requisitos Sanitários para Importação (RIGs) that were 
notified to the WTO, and explain why such RIGs are not systematically notified to the WTO?  
País Tipo Produto  
Dinamarca  Sistema  Carne  suína  
Grécia  Sistema  Lácteos  e mel 
Países  Baixos  Sistema  Lácteos  
Portugal  Manutenção  Carne  suína,  lácteos  e pescado  
Reino  Unido  Sistema  Lácteos  
Suécia  Sistema  Pescados  
Suécia  Sistema  Pescados  
As it can be verified  in the WTO Sanitary  and Phytosanitary  Information  Management  System,  
Brazil  has submitted  a large number  of notifications  in last years.  Furthermore,  Brazil  is constantly  
improving  its notification  system.   
Page 22, paragraph 4.20  
Brazil states that "since the creation of the WTO, Brazil has signed more than thirty bilateral 
agreements on sanitary and phytosanitary matters, based on SPS Agreement principles. The main 
purpose of these agreements is to identify common rules, simplify import controls, harmonize 
certification requirements (…)"  
EU question No 46 : Could Brazil list the products for which it has harmonized certification 
requirements applied for the imports into Brazil of products of animal origin from any country in 
the wor ld, and explain why – on the other hand and usually – exporting countries have to 
negotiate with Brazil, on a case by case basis, the certification requirements?  
4.1.7 Intellectual property  
Paragraph 4.38, page 25  
EU question No 47 : Could Brazil clarify t he measures taken regarding procedures and 
administration which will contribute to "increase the scale of exams"?  
As provided in paragraphs 4.37 and 4.38 of document WT/TPR/G/358, the Brazilian Government 
continues to invest in the improvement of services  delivered by its patent and trademark office, 
the National Institute of Industrial Property (INPI). In order to do so, 210 new patent and 
trademark examiners were hired between May 2016 and April 2017. In the trademark field, INPI 
has increased the number  of examiners from 51 to 151, including newly hired examiners in 
January and April 2017, almost reaching a threefold growth in comparison with 2013 figures. WT/TPR/M/358/Add.1  
 
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  Additionally, the INPI has developed a number of systems in order to streamline its internal 
proces ses, eliminate unnecessary bureaucracy and increase the productivity of examiners.  
In the patent area, decisions increased by 88% in last May compared to April. In the accumulated 
first five months of this year, there were 22,134 decisions, a number higher  than the total 
recorded for the entire year 2014 (22,336 decisions) and 2015 (15,842 decisions). In a 
comparison between May 2017 and with May 2016, the increase was 138%.  
Paragraph 4.41, page 25  
EU question No 48 : Could Brazil list the regional offices i ncluded in the pilot program for patent 
examination and indicate if the regional offices receive patent applications covering all sectors?  
INPI's regional offices used to be just facilitators to receive applications and help the public to 
understand the s ystem of industrial property; they were not responsible for examinations. The 
pilot program changed this situation so that the qualified work force in the regional offices could 
exam patent, trademarks, and other IP applications, independently of the secto r. 
4 Trade Institutional and Regulatory Framework  
4.1.7 Intellectual Property  
Paras 4.36 – 4.42 
Brazil presents the steps taken to reduce pendency times for trade mark registration and granting 
of patents.  
EU question No 49 : Could Brazil explain how exist ing extra -legal regulations and ordinances such 
as the Joint Order between ANVISA and INPI are compatible with WTO TRIPS Agreement, which 
states that "patents shall be available", granted "within a reasonable period of time" and without 
discrimination betw een fields of technology (TRIPS articles 27 and 62.2)?  
In order to comply with provisions of article 229 -C of Law 9279/1996, included in article 1 of Law 
10196/2001, the granting of invention patents under applications related to pharmaceutical 
products and processes depend on prior consent from ANVISA.  
Joint Ordinance 1/2017 indicates that ANVISA's attribution is to analyze whether a a patent 
application presents risk to health, whereas INPI analyzes its patentability requirements.  
Whenever ANVISA provides information on patentability requirements other than  health risks 
related aspects, IINPI will grant to these analyses a treatment similar to the one it confers to 
submissions by any other institution/individual providing data to assist the patentability 
examination ( according to article 31 of the Industria l Property Law, after publication of the 
application and up to the end of the examination, interested parties may submit documents and 
data to assist the examination).  
Even before the new, clearer delimitation of responsibilities described by the Interage ncy 
Ordinance 1/2017, the special procedure for the evaluation of medical and pharmaceutical patents 
was TRIPS -compliant in Brazil's view. The TRIPS agreement states, in its Article 8,1, that Members 
may, in formulating or amending their laws and regulatio ns, adopt measures necessary to protect 
public health and nutrition, and to promote the public interest in sectors of vital importance to 
their socio -economic and technological development, provided that such measures are consistent 
with the provisions of this Agreement.  
4.1.2. Technical regulation and standards  
Page 20  
EU question No 50 : In the light of the good cooperation between Deutsches Normungsinstitut (DIN 
e.V.) and the Associação Brasileira de Normas Téchnicas (ABNT), could Brazil share some specif ics 
about the scope /objective/mission of the Platform" Voluntary Sustainability Standards" between 
INMETRO and ABNT and the MRA with GLOBALGAP?  WT/TPR/M/358/Add.1  
 
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  The key objectives of the Brazilian Platform on Voluntary Sustainability Standards (VSS) include:  
(i) To be a Reference Centre in the country for the discussion on VSS;  
(ii) To map VSS that affect the Brazilian economy, the domestic market and access to foreign 
markets;  
(iii) To be a centre for discussion and promotion of events on the subject;  
(iv) To collect, discuss and prepare studies regarding the impact of VSS on the Brazilian 
economy and exports;  
(v) To develop suggestions for proactive national policies on maximizing the positive economic, 
social, and environmental effects and limit the cost and  problems of VSS;  
(vi) To raise awareness of public and private stake holders affected by VSS in Brazil;  
(vii) To mobilize and gather a considerable number of stakeholders working together on 
initiatives developed through the Platform process;  
(viii) To an alyse and compare national experiences on best practices and suitable proactive 
policies developed by other National Platforms.  
4.2.4 Renewable energy, page 29, par. 4.67  
Brazil states the importance of bioenergy production in Brazil. In this regard, bioma ss electricity, 
the majority of which is produced from sugarcane processing plants, accounts for about 8,8% of 
total energy supply. According to the report, there is evidence that the long term and large scale 
sustainable production and use of biofuels are  possible.  
EU question No 51:  Could Brazil specify whether it applies any sustainability criteria for biomass 
production?  
Over the last decades, Brazil has been able to increase the production of food, feed, energy and 
fiber. The country has a unique combination of availability of land for agriculture expansion not 
occupied with native vegetation; large amount of protected native vegetation; an extremely 
productive agricultural sector; and strong conservation laws based on "control -command" 
enforcement . 
Bioenergy is an important instrument for promoting sustainable development in its three 
dimensions: social, economic and environmental, as it generates jobs and income, promotes rural 
development and reduces greenhouse gas emissions. Brazilian bioenergy policies are consistent 
with these objectives.  
Environmental protection for present and future generations is guaranteed by the Brazilian 
Constitution. Sustainable development, protection of biodiversity, establishment of protected 
areas, environmental dam age recovery and the requirement for environmental impact 
assessments are some of the principles enshrined in our Constitution. Based on these principles, 
Brazil has enacted an environmental legislation that figures among the most advanced and strict of 
the world. The compatibility of social and economic development with environmental quality is the 
main objective of the "National Environmental Policy", enacted by Federal Law 6938/1981.  
The production of ethanol and biodiesel in the country is in full compl iance with the following set of 
policy instruments:  
a) Federal Law n. 6938/1981, which defines the National Environmental Policy tools: the 
environmental zoning, the environmental impact assessment, the environmental licensing 
procedure, the review of pote ntial or effective polluting activities, and the creation of protected 
areas, such as environmental protection areas, areas of relevant economic interest, and extractive 
reserves. The law also established the Environmental National Council (CONAMA) with po wers to 
define rules and criteria for the control and maintenance of environmental quality;  
b) CONAMA Resolution n. 001/1986: defines the need for an Environmental Impact 
Assessment/Environmental Impact Report (EIA/RIMA) prior to licensing of economic acti vities in WT/TPR/M/358/Add.1  
 
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  areas over 1.000 hectares or in areas of less than 1.000 hectares of high environmental 
importance, including environmental protected areas;  
c) CONAMA Resolution No. 237/1997: requires environmental licensing for all non -fossil fuel 
production ac tivities;  
d) Federal Law No. 9985/2000: establishes the National System of Conservation Units (SNUC) 
and requires that economic operators who develop economic activities with high environmental 
impact support the creation and maintenance of Conservation Un its; 
e) Decree No. 4339/2002: enacts the National Biodiversity Policy, with measures to promote 
biodiversity conservation and its sustainable use. The Decree requirements are relevant in the 
context of eventual biodiesel production from native species;  
f) Decree No. 6961/2009: enacts the Sugarcane Agro -ecological Zoning, which provides 
technical guidance for the sustainable expansion of the sugarcane production in Brazil. According 
to the zoning, land with high biodiversity value and high carbon stock, such  as priority areas for 
nature conservation, the Amazon Rainforest, the "Pantanal" wetland, "legal reserves", 
conservation and protected areas are considered "no -go" areas for sugarcane;  
g) Decree No. 7172/2010: enacts the Palm Oil Agro -ecological Zoning, w hich provides technical 
guidance for the sustainable production of palm oil in the Amazon region. According to the zoning, 
land with native vegetation and protected areas (Conservation Units and indigenous land) are 
considered "no -go" areas for palm oil pr oduction;  
h) Federal Law No. 12187 /2009 and Decree n. 7390/2010: enacts the National Policy on 
Climate Change and the voluntary commitment within the United Nations Framework Convention 
on Climate Change (UNFCCC) to reduce national emissions of greenhouse  gases by 36,1% to 
38,9% from the projected emissions in 2020. Mitigation on the energy sector is based on the 
estimates of the Decennial Energy Plan, which forecasts the reduction of emissions in the 
transportation sector by increasing the use of biofuels . The expansion in biofuels production must 
be in accordance with the National Plan to Prevent and Control Deforestation and Wild Fire in the 
Legal Amazon and the National Plan to Prevent and Control Deforestation and Wild Fire in the 
"Cerrado";  
i) Federal  Law No. 12651/2012: enacts the new "Forest Code", which regulates the use of land 
in the country and defines the minimum areas ("Legal Reserves") of native vegetation that must 
be protected by the owner. According to the Code, owners are required to set a side 80% of the 
property area that is located in the Amazon Rainforest, 35% in the "Cerrado" that is within the 
limits of the "Legal Amazon", and 20% in the remaining regions;  
j) São Paulo State Law No. 11241/2002: establishes a sugarcane burning phase -out schedule 
in the State of São Paulo. In 2007, the state government and the private sector signed a Protocol 
to expedite the phase -out to 2014 for the areas that could be mechanized (originally 2021) and 
2017 for areas in which mechanized harvest is not pos sible (originally 2031);  
Brazil is convinced that its set of environmental policies and regulations significantly contributes to 
the goal of promoting the sustainable production and use of biofuels. Moreover, as several studies 
and analyses regarding biofu els production in Brazil point out, the legal framework under which 
the domestic industry operates has provided the country with a source of energy that not only has 
undisputable environmental benefits, but also promotes social and economic development.  
FOLLOW -UP QUESTIONS  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.3 Sanitary and phytosanitary requirements  
Paragraph 3.145, page 75  
Paragraphs 3.147 and 3.150, Page 76  
Reference is done to the notifications mentioned in these paragraphs.  WT/TPR/M/358/Add.1  
 
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  EU question No 22: Could Brazil list the SPS measures announced in regular notifications to the 
WTO which were supported by a risk assessment, when the mentioned measures were not based 
on or not fully aligned with the OIE's international standards?  
The regular notificat ions regarding animal health are based on or aligned with the OIE's 
international standards. SPS notifications provided by ANVISA are not accompanied by risk 
assessment documentation. The risk assessment documentation is for internal use and 
distribution. As part of the programme to implement Good Regulatory Practices, ANVISA is 
planning to publicize the documentation related to Regulatory Impact Analysis for its regulations, 
which might be provided as an annex to notifications in the near future.  
EU follow -up question on question No 22 : Given that in the reply to question No 22 Brazil only 
referred to ANVISA, could Brazil list the instances where SPS measures announced by the 
Ministério da Agricultura, Pecuária e Abastecimento  of Brazil (MAPA) in regular no tifications to the 
WTO have been supported by a "risk assessment" (as defined in Annex A of the WTO SPS 
Agreement)? If no such instances exist, could Brazil clarify when does MAPA intend to publicize its 
risk assessments?  
The regular notifications regardi ng animal health are based on or aligned with the OIE's 
international standards.  
Paragraph 3.153, footnote 196, page 77  
In footnote 196, it is stated that "the SDA carries out on -site inspections and sends questionnaires 
to the SPS authorities of the expo rting country to evaluate the procedures followed by its 
counterparts; on -site inspections of the exporters' establishments are undertaken at the cost of 
the interested party."  
EU question No 25 : Acknowledging that "on -site inspections" are dependent on th e timely 
information provided by the authorities of exporting countries concerning diseases, animals, the 
environment and the interaction among these elements, and that for many years there are over 40 
market access applications filed by EU Member States i n the Ministry of Agriculture, Livestock and 
Food Supply of Brazil (MAPA), could Brazil indicate how many animal health and food safety "on -
site inspections" have been carried out in the EU by the DAS/SDA/MAPA and DIPOA/SDA/MAPA, 
respectively, per year bet ween 2013 and 2016?  
The Ministry of Agriculture launched the "Plano Agro Mais" that includes an array of important 
measures that go from updating and publishing regulations to changes in the work routine of the 
Ministry of Agriculture. More information on  the measures adopted until now can be found on 
http://www.agricultura.gov.br/agromais/index.html.  
EU follow -up question on question No 25 : Given that the mentioned "Plano Agro Mais" of Brazil 
does not include any information about the audits carried out i n countries exporting to Brazil, could 
Brazil indicate how many animal health and food safety on -site audits and inspections have been 
carried out in the EU by MAPA between 2013 and 2016?  
See table below:  
Country  Product  Year 
Denmark  Pork 2015 
Greece  Dairy and honey  2015 
Netherlands  Dairy products  2013 
Portugal  Pork, dairy and fish products  2015 
UK Dairy products  2015 
Sweden  Fish products  2016 
Switzerland  Fish products  2016 
  WT/TPR/M/358/Add.1  
 
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  HONG KONG, CHINA  
Questions  on the Secretariat Report  
A. Trade Policies and  Practices by Measure  
Tax Regime  
WT/TPR/S/358: Page 9 (Para 18), Page 11 (Para 30), Page 17 (Para 1.15)  
1. Future prosperity and sustainable growth depend on the implementation of productivity -
enhancing structural reforms in several areas including revamping the overly complex tax and 
incentives regime and reducing the regulatory burden on businesses. The Brazilian tax system 
remains overly complex, burdensome and unpredictable which continue to discourage 
entrepreneurship.  According to the authorities, reform ing the tax system is one of the Brazilian 
Government's priorities; the reform process is expected to begin in 2017.  
Question: Has the reform on the tax system started? What steps will the Government take to 
simplify the tax system and enhance its transpar ency?  
The Brazilian government is currently studying the simplification of the tax system and of some 
taxes. As a first result, there is already a draft bill to create a new tax (social contribution) to 
replace two federal taxes (PIS and COFINS) that are, at federal level, the most complicated ones 
to comply with and to be enforced. This new tax will be fully compliant with OECD guidelines..  
Export Support and Promotion  
WT/TPR/S/358: Page 59 -66 (Paras 3.74 -3.103)  
2. Brazil maintains a number of programmes inte nded to increase exports and to boost the 
competitiveness of export -oriented companies. In 2015, the Government launched a National 
Export Plan (2015 -18) envisaging a series of actions along five pillars: market access; commercial 
promotion; trade facilita tion; export finance and guarantees; and tax regimes and facilities for 
export support. According to the authorities, the Plan is being reviewed by the current 
administration.  
Question:What are the goals of the five pillars of the National Export Plan? Has  any review been 
conducted to assess the achievements so far?  
We note that the export support schemes (such as suspension of various taxes and import duties 
for export -oriented enterprises, reimbursement of taxes for exporters, support for export 
promotio n activities, export credit and financing schemes) are for Brazilian companies and exports 
only. Please advise if companies with foreign investment are eligible for the schemes and whether 
they are subject to additional requirements.  
The National Export P lan encompass a set of policies focused on trade facilitation, trade promotion 
and trade intelligence, with the aim of encouraging Brazilian companies to participate more 
actively in international trade.  
The plan makes no difference between foreign -owned and domestic -owned companies for those 
purposes.  
Incentives  
WT/TPR/S/358: Pages 66 -67 (Paras 3.108 -109) 
3. According to the National Treasury, federal government expenditure on incentive and support 
programmes amounted to R$163.2 million in 2016, against R$51.6  million in 2013.  WT/TPR/M/358/Add.1  
 
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  A recent study of the fiscal cost of Brazil's industrial policy suggests that Brazi lian industry has 
become increasingly dependent on incentives, rather than improving its international 
competitiveness. It also points out that some of the tax breaks have been put in place to 
compensate for deficiencies in Brazil's complex tax system.  
Question:  The incentive schemes which favour domestic production might have a restrictive impact 
on trade and Brazil 's competitiveness. Are there any plans to review those schemes in order to 
enhance the competitiveness of local industries?  
Brazil 's programmes are aimed at improving technology, workforce capacity and innovation. They 
do not discriminate between domestic and imported products. Brazil 's industrial programmes are 
established after a long procedure of consulting with many stakeholders of the government and 
the private sector. The programmes in place are regularly reviewed and can be modified or 
improved according to specific circumstances  
Promoting trade and enhancing competitiveness is a permanent objective of Brazil´s industrial 
policies . The policy tools to achieve this objective are constantly reviewed in light not only of the 
specific circumstances of each and every case but also taking into considerations Brazil´s 
commitment under international law  
Since 2015 there has been a growing interest by the federal government on monitoring and 
evaluating programs and policies adopted in Brazil. As a result, some of the Brazilian development 
policy tools are being revised. There is also an increased focus on structural reforms to promote 
compet itiveness and contribute to the improvement of the business, attraction of productive 
investments and innovation and productivity.  
B. Trade Policies by Sector  
Services  
WT/TPR/S/358: Page 131 (Paras 4.112)  
4. In order to bolster industrial competitiveness, attrac t foreign investment and participate in 
global value chains, Brazil's economy requires quality services at competitive prices. According to 
the OECD, the areas with the largest potential for regulatory reform include improvements in the 
general business an d trading environment as well as specific policies in transport, telecoms and 
financial services; the OECD Services Trade Restrictiveness Index (STRI) indicates that regulations 
in these areas tend to be more restrictive towards foreign services providers than in its Latin 
American peers.  
A number of initiatives to boost private entry and improve the functioning of core services, many 
of which are under discussion or have been recently launched, were undertaken.  
Question:  Please provide further information  on the initiatives undertaken and launched which can 
help boosting participation of the private sector and lower restrictions towards foreign services 
providers.  
Brazil is implementing several structural reforms, covering areas such as government spending, 
social security, labor legislation, taxation, public -private partnerships, among others, that will have 
a significant across -the-board impact in the economy.  
The Brazilian Government is establishing conditions for sustainable economic growth and to attract 
investment, including by promoting regulatory transparency, improvements in productivity in the 
production of goods and provision of services, the simplificati on of bureaucratic procedures. Recent 
economic indicators are showing that the process of recovery in the Brazilian economy is under 
way. For instance, Brazil has ranked 6th among the largest recipients of foreign direct investment 
(FDI) in 2016.  
A Constitutional Amendment enacted in 2016 sets a cap for public spending. The New Fiscal 
Regime under Constitutional Amendment 95 (EC/95) establishes a period of at least 10 years 
during which federal government annual primary spending cannot increase mor e than the previous WT/TPR/M/358/Add.1  
 
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  year's rate of inflation. The social security reform proposed by the Government seeks to make the 
system sustainable in light of current demographic changes and trends in the Brazilian population, 
which includes setting a minimum age fo r retirement, with the prospect of raising it for future 
generations. Brazilian labour laws are being updated by introducing provisions that are more 
consistent with current practices in the labour market – including more flexible working hours and 
outsour cing. This should enable a large portion of the labour force, currently in the informal 
economy, to enter the formal economy, resulting in higher productivity. The tax reform under 
consideration seeks to reduce the complexity of the tax system, making tax collection more 
efficient and simplifying the process.  
In September 2016, the Brazilian government launched "Projeto Crescer" which changes the 
concession models in Brazil to attract domestic and international private sector enterprises wishing 
to partner up with the government in infrastructure and privatization projects. Established under 
the Investment Partnership Program (PPI), the project will provide more transparent partnership 
contracts and legal assurances. The program will also expedite the admini strative process for 
granting concessions, in an effort to increase cooperation with the private sector. The Council of 
the Investment Partnership Program was created under the Office of the President as an advisory 
agency to establish and oversee the PPI.  As such, the government can ensure that all relevant 
agencies will carry out their tasks expeditiously and that public infrastructure projects are duly 
released.  
Other measures currently being considered include: i) reducing the number of procedures 
neces sary to register property; ii) centralizing the process for obtaining a construction license in a 
"one-stop shop," to save time and reduce the number of procedures; iii) supporting the validity 
and effectiveness of settlements reached by Previous Conciliat ion Committees, so as to reduce the 
burden on Labor Courts; and iv) making judicial and extrajudicial restructuring processes of 
companies more flexible to increase efficiency.  
Telecommunication Services  
WT/TPR/S/358: Page 9 (Para 18) and Page 143 (Para 4.153) 
5. In 2014 and 2015, the National Telecommunications Agency (ANATEL) applied local content 
requirements to the auctioning of radio spectrum frequencies. In the 2014 auction for the 700 MHz 
frequency spectrum, wireless carriers were required to ensure 50%  of the infrastructure installed 
to supply the licensed service met the Basic Productive Process (PPB) requirements, which are 
product -specific criteria stipulating that particular manufacturing process must be carried out in 
Brazil. Carriers were also req uired to use a minimum percentage of technology developed in Brazil. 
In another auction for the 1.8, 1.9 and 2.5 GHz spectrum in 2015, preference was also granted to 
suppliers that utilise services, equipment or materials produced in Brazil, including thos e with 
national technology.  
Question:  Does the ANATEL conduct regular reviews on the local content requirements, or the 
granting of preference to offers which utilise services, equipment or materials produced in Brazil in 
the auctioning of radio spectrum? Would the authorities consult the industry before introducing 
changes in such local content requirements?  
Anatel 's requirements are production -step requirements, not local content requirements. They do 
not discriminate between domestic and imported product s. The technology requirements equally 
do not discriminate between goods and aim at generating a critical mass of technology in Brazil.  
6. In 2014 and 2015, the National Telecommunications Agency (ANATEL) applied local content 
requirements to the auctioning of radio spectrum frequencies. In the 2014 auction for the 700 MHz 
frequency spectrum, wireless carriers were required to ensure 50% of the infrastructure installed 
to supply the licensed service met the Basic Productive Process (PPB) requirements, which a re 
product -specific criteria stipulating that particular manufacturing process must be carried out in 
Brazil. Carriers were also required to use a minimum percentage of technology developed in Brazil. 
In another auction for the 1.8, 1.9 and 2.5 GHz spectru m in 2015, preference was also granted to 
suppliers that utilise services, equipment or materials produced in Brazil, including those with 
national technology.  WT/TPR/M/358/Add.1  
 
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  Anatel 's requirements are production -step requirements which do not discriminate between 
domesti c and imported products. The technology requirements equally do not discriminate 
between goods and aim at generating a critical mass of technology in Brazil. These auctions are 
strategic in fulfilling the governmental role of providing access to information and communication 
to remote areas of Brazil. They are fundamental for the proper execution of the government 's 
constitutional role in these strategic sectors in providing adequate services to the population as a 
whole.  
Audiovisual and Broadcas ting Services  
WT/TPR/S/358: Pages 145-146 (Para 4.161 ) 
7. There are a number of investment barriers to the market of audiovisual and broadcasting 
services. Foreign ownership in "free -to-air" television broadcasting is limited to 30% and 80% of 
the programmes aired on those channels must be Brazilian. For the subscription television market, 
such as satellite and cable television, there are content quotas that require every channel to air 
Brazilian programmes for at least three and a half hours per week during p rime time. Furthermore, 
one third of all channels included in any television package must be Brazilian.  
Question:  Is there any limitation on foreign ownership of the subscription television broadcasting? 
Does the Brazilian Government have any plans to libe ralise and increase the participation of 
foreign investment in both the "free -to-air" and the subscription television markets of broadcasting 
services?  
No. Since the enactment of federal Law nº 12485/2011 there is no limitation on foreign ownership 
on the  subscription television market.  
Air Transport Services  
WT/TPR/S/358: P age 148 (P ara 4.171)  
8. Under the current regulatory regime, concessions for the provision of domestic scheduled air 
transport services are granted only to Brazilian legal persons with headquarters in Brazil, managed  
exclusively by Brazilians, and with four fifths of voting rights in Brazilian hands. The provision of 
domestic public air transport services (cabotage) remains reserved to Brazilian legal  persons. It is 
noted that the Brazilian government is discussing whether an increase of  the percentage of foreign 
investments should be allowed i n Brazilian air carriers.  
Question:  Could t he Brazilian government share with us the latest progress of the  discussion 
regarding increase of foreign investments on Brazilian air carriers? What is the proposed 
percentage of foreign ownership allowed in domestic airlines?  
Bill PL 7425/2017, sent to Congress in April 2017, seeks to eliminate all restrictions for foreign 
investment on Brazilian air carriers. If passed, Brazilian air transport companies will be able to 
hold up to 100% foreign capital. PL 7425/2017 is under discussion at the National Congress and is 
currently subject to the deliberation of the Chambe r of Deputies (the Lower House).  
WT/TPR/S/358: Pages 148 -149 (Paras 4.170 & 4.173)  
9. In 2014, the National Agency for Civil Aviation (ANAC) enacted Resolution No. 338/2014 
which establishes the coordination parameters and rules for the allocation of slots at all airports 
with signs of saturation. Under the r esolution , a company must comply with a minimum of 80% of 
regularity and 75% of punctuality for maintenance of the series of slots, and 50% of new slots 
should be allocated for new entrants. The ANAC is re sponsible for the coordination of slots at four 
airports, the Congonhas Airport – Sao Paulo (SBSP), the Guarulhos Airport (SBGR), the Santos 
Dumon Airport (SBRJ) and Pampulha Airport (SBBH).  
Question:  How effective is the new regulation in optimising the a llocation of airport slots? Are the 
compliance requirements  for the air carriers subject to regular reviews? Has the ANAC received 
any feedback from the industry on the new regulation?  WT/TPR/M/358/Add.1  
 
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  a. How effective is the new regulation in optimizing the allocation of  airport slots?  
ANAC is satisfied with the results achieved so far with the new regulation. The following positive 
elements can be highlighted:  
 - Operations are closer to the allocated slot.  
 - Airlines started to check &  control their operations, trying to respect the allocated slot.  
 - ANAC eliminated slot reservations (allocated slots that the airlines didn´t really mean to 
operate).  
 - more priority accorded to flights to Brazil;  
 - changes by carriers to adjust their ongoing schedules with the reality of their operations.  
 - equipment upgrading  
 - better planning by carriers according to the allocated slots  
 - better airport performance b.  
b. Are the compliance requirements for the air carriers subject to regular revi ews? 
ANAC has never amended Regulation 338 , but operations are being aligned as much as possible to 
the international standards (WSG).  
c. Has the ANAC received any feedback from the industry on the new regulation?  
Yes. As predicted, IATA and the airlines tend to express difficulties with this new Regulation - 
mainly due to the "on schedule/on time" factor. In contrast, airports favour the "on time" 
requirement. Different stakeholders have distinct opinions and interests.  
The main goal of Resolution 338 is to improve efficiency in slot allocation, whilst maintaining good 
operations within coordinated airports – especially where infrastructure requires improvement. 
Regularity and On Time Performance (OTP) is important and ANAC is carefully studying the WSG 
solution regarding misuse.  
  WT/TPR/M/358/Add.1  
 
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  INDIA  
Questions on Secretariat Report (WT/TPR/S/358)  
Page – 42, Paragraph – 3.6 
Question 1 : Could Brazil confirm that the fees of R$185 and additional fees, ranging from 
R$29.50 (first two items) to R$2.95, are fees imposed on imports as understood under Article VIII 
of GATT 1994? Could Brazil provide a justification for the incremental fee for additional fees, 
ranging from R$29.50 ( first two items) to R$2.95?  
Brazil understands this fee to use the Siscomex System as proportionate to the approximate cost 
of service rendered within the purview of Article VIII of GATT 1994. Part of the cost of the service 
is not dependent on the number  of the processed items. Additional items entail higher processing, 
handling and inspection costs.  
Page – 42, Paragraph – 3.8 
Question 2 : How does Brazil define international supply chain participant for the purpose of the 
AEO programme? Could Brazil provi de reasons for limiting participation in the AEO programme to 
international supply chain participants? (MDIC, RFB, DACESS -MRE)  
The main reason for limiting the participants is the available resources for implementing the 
programme.  
Page – 55, Paragraph – 3.53 
Question 3: Can Brazil clarify how the requests for public interest examination are made before 
CAMEX?  
CAMEX has created a Technical Group for Public Interest Assessment (GTIP) according to WTO 
disciplines and established the administrative procedures  to file a case.  
Any claim to suspend or modify an antidumping or countervailing measures based on a public 
interest claim shall be submitted to the Secretariat for International Affairs (SAIN) of the Ministry 
of Finance, which serves asthe secretariat for  the GTIP.  
Any company, member of the GTIP, other public offices or CAMEX itself can file a case for a trade 
remedies measure evaluation, which shall be based on factual and legal elements. If the request 
fulfils all the technical requirements and is accep ted, the process of public interest is officially 
opened.  
GTIP has 6 months – which can be extended for an equal period – to present its conclusions to 
CAMEX, which will take the final decision, accepting or rejecting the assessment made by GTIP.   
Question 4: What are the grounds on which the AD measures were suspended?  
According to art. 3, of the Annex of the CAMEX Resolution n 29/2017, "Public Interest is identified 
when the impact of a trade remedies measure over the economic agents as a whole demonstrat es 
to be potentially more harmful if compared to the positive effects of the application of the 
measure".  
The grounds on which AD measures have been suspended from 2013 to 2016 related in the 
majority of cases to the end production; the need of preserving  price stability in the domestic 
market was also a factor.  
Question 5:  What is implied by Partial suspension of measure?  
Art. 3 of the referred Annex of the CAMEX Resolution n 29/2017 states that "The public interest 
assessment aims to analyze pleas for s uspension or modification of final antidumping and WT/TPR/M/358/Add.1  
 
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  countervailing measures, as well as the non -application of provisional antidumping and 
countervailing measures".  
So, in terms of public interest, the more correct expression would be "modification" – rathe r than 
"partial suspension" of a measure. Modification usually consists of a reduction of the fee or a 
change in its form of charge from specific to ad valorem.  
Page – 56, Paragraph – 3.56 
Question 6 : Could Brazil prove the number of cases, and the produc ts, on which double remedies 
were imposed? Could Brazil also explain the methodology followed by its investigating authority to 
ensure compliance with provisions of Article VI:5 of GATT 1994?  
 Currently there is only one CVD duty in force (PET Film from I ndia) which is also subject to an AD 
duty. However, the application of a double remedy was avoided due to adjustments to the CVD 
duty. The provisions which govern the conduction of antidumping or countervailing investigations 
are provided for in Decree 805 8/2013, and 1751/1995, respectively.   
Page – 59, Paragraph – 3.75-76 
Question 7: What are PIS, COFINS and IPI taxes?  
They are federal tax levied on domestically produced and imported goods.  
PIS and COFINS are federal contributions that apply to gross revenues earned by all types of legal 
entities. The taxable persons are all enterprises that receive revenue from their business activities 
and the taxable base is the taxable legal person's mont hly turnover, which is considered to be all 
income earned by the legal entity, regardless of its name or accounting classification.  
The IPI  tax is federal tax that applies to all national or foreign industrialized (i.e. manufactured) 
products. The IPI tax  rates are product -specific and linked to the price or value of the 
industrialized product on which it is imposed.  It is noteworthy that the IPI tax applies only with 
respect to transactions between industrial establishments or assimilated entities or indi viduals, 
when manufacturing processes take place.  
As a general rule, these three taxes are subject to the non -cumulative regime.  This is a tax 
mechanism through which taxpayers are able to offset debits and credits generated along the 
production chain. In general terms, non -cumulative taxes are imposed along the chain of 
production, generating tax credits on tax obligations on inputs, which may be used to offset other 
debits along the production chain, making them essentially value added taxes (VAT), simila r to 
other VATs adopted by different countries. This system ensures that the entire production chain is 
taxed proportionately, as each company may use what it paid on inputs to offset its tax burden, 
which will apply only to the price difference (added val ue). At the end, the tax will have been 
applied to the added value at each step of production, ensuring that goods are not charged twice.  
Question 8:  How this procedure of suspension of PIS, COFINS and IPI taxes implemented? What 
is the verification mechan ism to ensure that the input taxes suspended are based on actual?  
Tax suspension is an accounting scheme aimed at avoiding the administrative burden of 
reimbursing taxes that were not due. It does not entail the foregoing of tax revenue.  
As explained, Br azil has a system of value -added taxation along the production chain, which 
means that the taxes paid in prior steps of the production chain may be used as credits, which, as 
a general rule, are offset against the debits accumulated in subsequent steps of the production 
chain.  
Some companies in Brazil tend to structurally accumulate tax credits since their sales are subject 
to low or no taxation at final stages of production. As a result, these "predominantly credit -
accumulating companies" structurally accu mulate tax credits and must submit a great number of 
tax reimbursement requests on a regular basis, putting a heavy burden on them and on the tax 
authorities. All those companies that structurally accumulate credits can apply for an alternative WT/TPR/M/358/Add.1  
 
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  method of t ax administration, under which taxes are suspended on purchases of inputs and capital 
goods and, in consequence, taxes resulting from sales must be paid in full without the utilization of 
any credits.   
Predominantly exporting companies" are among those tax payers that naturally tend to accumulate 
credits along the production chain, since taxes are not levied on their exports. So, the tax 
suspension under the PEC/RECAP regime simply prevents the accumulation of tax credits and the 
administrative burden – for the government and the companies – related to the reimbursement of 
taxes not due in the first place that would be collected.  
Question 9:  Whether under the RECAP the customs duty applicable at the time of import of 
capital goods is allowed to be exempted? If it is exempted, does this exemption not amount to an 
export subsidy, as the enterprises that are  eligible under the scheme must export  at least 50% of 
their gross sales abroad?  
RECAP does not provide for the suspension or exemption of customs duty.  
Page – 59, Paragraph – 3.75 
Question 10 : Could Brazil explain how tax suspension operates? What is the difference between 
those who benefit f rom tax suspension schemes and those who do not? Why, in Brazil's view, does 
tax suspension not amount to revenue foregone?  
Please refer to previous answers. In the cases referred by the Secretariat in its report, the tax 
suspension operates as a mechanis m to avoid accumulation of tax credits related to taxes that 
would not be due in the first place. As such there is no revenue that would be foregone trough the 
suspension.  
Page – 59, Paragraph – 3.75 
Question 11 : Can Brazil confirm that if the predominantly export oriented enterprises do not 
export, they will not be eligible for suspension of the PIS, COFINS, and IPI taxes on the purchase 
of inputs?  
For the operation of the tax suspension under PEC/RECAP, please  refer to the answers to 
question  8. 
Question 12 : Can Brazil confirm that it has a reasonable and effective mechanism in place to 
confirm which inputs are consumed in the production of the exported product and in what 
amounts?  
Yes. All the necessary verif ication is based on the accounting records of the companies, during 
regular procedures of post clearance audit.  
Page – 60, Paragraph – 3.78 
Question 13: Can Brazil clarify the operation of Reintegra scheme?  
Reintegra provides for a rebate of the indirect taxes levied on the inputs that are consumed in the 
production process of the exported product. Reimbursements under Reintegra are currently 2% of 
the value of the exported product. Brazil has established that, in all sectors, these percentages are 
conside rably lower than the tax residue in the supply chain of exported products. As such, 
Reintegra is fully compatible with footnote 1 and Annex I of the SCM Agreement, given that 
reimbursements are not "in excess of" of accrued taxes.  
Question 14:  On what basi s the offset of taxes calculated?  
Reimbursements under Reintegra are calculated as a percentage of the value of the exported 
product.  WT/TPR/M/358/Add.1  
 
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  Question 15:  Does this scheme not amount to export subsidy prohibited under the WTO 
Subsidies Agreement as this is linked to export performance?  
Footnote 1 and Annexes I and II of the SCM Agreement allows for exemptions, remissions of 
deferral of prior -stage cumulati ve indirect taxes levied on inputs that are consumed in the 
production of the exported product in amounts that do not exceeds accrued taxes. This is exactly 
the case in relation to REINTEGRA.  
Page – 61, Paragraph – 3.83 
Question 16: What are the fiscal ben efits available to authorized EPZ companies?  
Authorized EPZ companies may purchase local or imported goods and services with the suspension 
of import duties, the IPI, COFINS, PIS and AFRMM. They have a specific system for expediting 
licensing and authoriz ation requirements for imports and exports, except for those related to 
sanitary controls, national security, and environmental protection.  
Question 17: As these benefits are linked with export performance, can these not be termed as 
export subsidies?  
EPZs operate in a similar fashion to a drawback regime in relation to exported products. Therefore, 
they do not entail export performance requirements.  
The taxation for EPZ companies is very similar to a drawback regime in relation to exported 
products, and i s in conformity with the SCM Agreement. For products that are sold in the Brazilian 
domestic market, general taxation norms apply to them in the same manner as to the products 
manufactured by non -EPZ companies.  
Page – 62-63, Paragraph – 3.94-95 
Question 18 : It is stated that resources for BNDES operations come mostly from public funds. 
What are the terms & conditions under which export finance is provided to the industry in general 
and to MSMEs?  
Information on the different modalities of export financing s upport provided by BNDES is available 
at: http://www.bndes.gov.br/wps/portal/site/home/onde -atuamos/exportacao/como -funciona -
apoio -exportacao.  
Question 19: What is the rate of interest at which export finance is provided by BNDES?  
The interest rates charged by BNDES are market based. Ultimately they will depend on multiple 
features of the export transaction, including its type (e.g. supplier or buyer credit), its length, the 
risk involved and the existence of collaterals.  
The interest rate charged on loans channeled through programmes like BNDES -EXIM is the result 
of BNDES's cost of funds plus BNDES's spread, plus risk spread and applicable fees (defined on a 
case-by-case basis). For MSMEs, BNDES's cost of funds on pre -shipment lines includes solely TJ LP, 
which is a long term interest rate set by the National Monetary Council (7,5% p.a. as of 31 
December 2016). MSMEs are charged BNDES's spread, risk spread and applicable fees as normal. 
Pre-shipment lines have a maturity of up to 36 months and Post -shipment lines have a maturity of 
up to 15 years.  
Question 20:  Whether the rate of interest is market driven and comparable to a rate of interest 
chargeable by commercial banks?  
The interest rates charged by BNDES are in line with market terms.  
Question 21:  Whether there is an element of subsidy in the export finance provided by BNDES?  WT/TPR/M/358/Add.1  
 
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  Brazil understands that the export financing support provided by BNDES is in conformity with WTO 
rules, including the SCM Agreement.  
Question 22:  If there is an element of sub sidy, whether it is not an export subsidy prohibited 
under WTO Subsidies Agreement?  
Brazil understands that the export financing support provided by BNDES is in conformity with WTO 
rules, including the SCM Agreement.  
Page – 68-69, Paragraph – 3.114,115,11 6 
Question 23: It has been mentioned that eligibility for establishment in the ZFM is conditional on 
observing PPB criteria (Section 3.3.3.1). What is the eligibility criterion for establishment in the 
ZFM?   
To be established in Manaus Free Trade Zone, the  company needs to meet the criteria required by 
Decree -Law No. 288 of February 28, 1967, as well as being up to the date with the all the 
domestic taxes (Federal, State and Municipal).  
Question 24: Whether doing of exports is one of the eligibility criteria for the units in ZFM?  
No. There are no export performance requirements among the ZFM eligibility criteria.  
Question 25: Whether the federal tax exemptions to units in ZFM are not in the nature of  export 
subsidy?  
Please refer to the answer to question 17. ZFM operates as an EPZ in what regards exports.  
Page – 103, Table 4.6  
Question 26: What are the factors taken into consideration while announcing the minimum 
purchase price of covered products?  
The minimum price is based on the variable cost of production calculated by CONAB, but other 
factors can be considered.   
Question 27: Whether minimum purchase price of an agricultural product is same for all the 
provinces or it varies province to province?  
Most of the products covered by PGPM have different minimum prices for certain regions or States  
Question 28:  Why products other tha n wheat were not benefited by PGPM in 2016?  
The products notified are the products that effectively were supported by PGPM .  
Page – 103, Table 4.6  
Question 29: How the CONAB procured agriculture goods covered under the AGF from farmers?  
 When it is determ ined that market prices are markedly below the minimum price, and there is 
budget available for it, MAPA makes a public announcement at its website and to the press 
indicating in witch state or region the program will operate, the amount of money available  for it, 
and, according to the minimum price established, the maximum estimate quantity to be purchased   
Question 30: How many collection centres for the purpose of procurement operates under the 
AGF programmes?  
There are 205 warehouses enabled to receive  products purchased under AGF program.  
Question 31:  What is the objective of public stocks of agricultural products managed by CONAB?  WT/TPR/M/358/Add.1  
 
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  The public stocks managed by CONAB are the stocks purchased under AGF and COV programs 
(producer support objective) and the stocks acquired under market conditions for domestic food 
aid purposes to supply some social programs .  
Question 32:  How CONAB dispose the public stocks of agriculture goods?  
Most of CONAB's stocks are sold under public auctions. The operations can be  made with no 
specific requirement, or it can be directed to supply specific States or regions the government 
considers are suffering shortages of the product. CONAB can also sell its stock in small quantities 
at wholesale market prices. The program is cal led "Vendas de Balcão", which can be translated as 
"Service Desk".   
Page – 134, Paragraph – 4.121  
Question 33: Brazil is requested to provide details of on what basis the authorization by 
Presidential Decree is granted  
The requests for authorization are ex amined by the Central Bank and then submitted to the 
deliberation of the President of the Republic. If the foreign capital participation is recognized as 
being in the interest of the Brazilian government, the President issues a favorable Presidential 
Decre e. 
To enable the above -mentioned analysis, the applicant must inform:  
a) the percentage of intended foreign capital participation in the domestic financial institution;  
b) the importance of the venture to the Brazilian economy, including how Brazilian rel ations with 
other countries may be improved, mentioning the type of expected contributions towards 
improving the National Financial System, in the form of products or services to be offered, 
including its contribution in terms of new technologies and encou ragement to competition;  
c) description by the legal entity domiciled abroad, as the case may be, of operations intended to 
be carried out in Brazil, including those performed by companies belonging to the same economic 
group;  
d) importance of the ventur e for the purpose of completing activities of the legal entity domiciled 
abroad or those of the economic group to which it belongs to, in supporting investments and other 
operations intended to be carried out in Brazil;  
e) rating of the legal entity domici led abroad as well as of the economic group it belongs to, 
granted by a specialized rating agency;  
f) a list, as the case may be, of financial institutions that are linked, either directly or indirectly, of 
any nature with the legal entity domiciled abroa d;  
g) a list of supervising authorities to which the legal entity domiciled abroad and the financial 
institution to which it has links of any nature, either directly or indirectly, are subordinated, as the 
case may be;  
h) other  information deemed relevant to define the foreign participation as of interest to the 
Brazilian government.  
A summary of the licensing procedures and of the regulations regarding the subject are available 
at BCB's website ( http://www.bcb.gov.br/en/#!/n/LICENSINGPROC ).  
Additionally, it is important to remark that all foreign financial institutions that want to establish in 
Brazil and fulfil the prudential requirements are operating in Brazil . WT/TPR/M/358/Add.1  
 
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  Page – 136, Paragraph – 4.126  
Question 34: Brazil is requested to explain the contents of these information sharing agreements 
and also the informal arrangements with the UK and how these informal arrangements are being 
implemented.  
Complementary Law 10 5/2001, line I, § 4º, art. 2 applies to the negotiation of exchange of 
information agreements with foreign central banks and supervisory authorities in the fields of: (a) 
supervising branches and subsidiaries of foreign financial institutions operating in Brazil and 
branches and subsidiaries of Brazilian financial institutions operating abroad; (b) mutual 
cooperation and information exchange to investigate activities or operations that include 
investment, trading, concealment or transfer of financial assets  and securities related to illegal 
conduct.  
The BCB has concluded 25 Memorandum of Understanding (MoUs) with 29 foreign supervisory 
authorities, from 23 countries plus Europe (MoU with European Central Bank), to allow and 
facilitate the exchange of inform ation on supervised institutions. The MoUs also allow on -site 
examinations of subsidiaries of Brazilian banks abroad, as well as on -site examinations performed 
by foreign Supervisors in subsidiaries of foreign institutions operating in Brazil, among others . 
These agreements follow the guidelines established by the Basel Committee. However, even when 
there is no agreement in force, the BCB seeks to meet, as far as possible under the terms of 
Complementary Law 105/2001, the demands coming from foreign Supervi sors. The MoUs set out 
the conditions under which cooperation between the signatory authorities takes place, comprising, 
in general, the exchange of information on supervisory issues of mutual interest; on -site 
examinations in cross -border establishments; and provisions on information confidentiality.  
In addition to these MoUs, the BCB maintains informal arrangements with other supervisory 
authorities of foreign banks which have a relevant presence in Brazil, and likewise with host 
supervisory authorities o f Brazilian banks abroad, when there is no MoU involved.  
The BCB has signed MoUs with the supervisory authorities of the following countries: South Africa, 
Germany, Argentina, Bahamas, Cayman Islands, China, Chile, Colombia, South Korea, Spain, 
United Sta tes of America (OCC, FDIC, FED, OTS and Department of Financial Services), India, 
Indonesia, Italy, Luxembourg, Mexico, Panama, Portugal, Paraguay, Peru, the United Kingdom, 
Switzerland and Uruguay.  
There is ample evidence that the MoUs are useful: exchan ge of information is carried out more 
often with countries with whom the BCB has an agreement and through them it is able to consult 
fully with foreign supervisors on impeding enforcement actions. The BCB receives dozens of 
information requests every year through the MoU arrangements.  
BCB hosts supervisory colleges for Itaú -Unibanco and Banco do Brasil and participates in colleges 
for Citibank, JP Morgan Chase, Credit Suisse, Deutsche Bank, UBS, GMAC, and Rabobank. The BCB 
also participates in the core col leges and Crises Management Group - Santander with Banco de 
España , having signed a specific MoU - CoAg with this authority establishing policies for 
information sharing related to resolution strategies.  
Page – 138, Paragraph – 4.134  
Question 35: Could Brazil please inform how much is the supervisory fee and the amount of 
increase for various cases?  
The supervisory/enforcement fee in the Brazilian securities market was enacted in 1989 as 
provided for by Law 7.940. Amounts are charged quarterly in January , April, July and October. The 
current amounts to be paid are reflected on Portaria 43/17 on the CVM website: 
(http://www.cvm.gov.br/menu/regulados/taxasmultas/tabelas_taxa.html )  WT/TPR/M/358/Add.1  
 
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  Page – 138, Paragraph – 4.135  
Question 36: Brazil is requested to inform the frequency of exam and whether such exam can be 
taken abroad or not and the costs, if any for undertaking such exam. Brazil is also requested to 
inform on what basis approval is granted from SUSEP.  
frequency of exam : Techn ical exams are offered at least twice a year by the National School of 
Insurance (FUNENSEG)  
whether such exam can be taken abroad or not : the person applying for the exam must be a 
Brazilian citizen or a foreigner with permanent residence in Brazil; exams are in person, not 
offered on -line nor abroad  
the costs, if any : depending on the exam being applied for, from R$365,00 (approx. USD110, for 
Life & Pensions brokers) up to R$1.400,00 (approx. USD420, for "all -line" brokers, 
life+pensions+non -life+capitaliz ation)  
on what basis approval is granted from SUSEP : SUSEP registers brokers as provided in 
Resolution CNSP nº 249/2012, amended by Resolution CNSP nº 252/2012. Those applying for 
registry with SUSEP for the professional activity of insurance brokerage in Brazil must:  
I - be a Brazilian citizen or a foreigner with permanent residence in Brazil;  
II – show proof of fulfillment of military service and electoral obligations, for Brazilians between 
the ages of eighteen and forty -five; 
III – have not been convict ed of the crimes referred to in Sections II, III and IV of Chapter VI of 
Title I; Chapters I, II, III, IV, V, VI and VII of Title II; Chapter VI of Title VI; Chapters I, II, III and 
IV of Title X and Chapter I of Title XI, special part of the Penal Code.  
IV - not have been declared bankrupt;  
V – not hold a position or employment in a legal entity of Public Law;  
VI –have no employment or management relationship with insurance company.  
Technical exams are offered at least twice a year by the National School of Insurance 
(FUNENSEG).The person applying for the exam must be a Brazilian citizen or a foreigner with 
permanent residence in Brazil; exams are in person, not offered on -line nor ab road. Depending on 
the exam being applied for, from R$365,00 (approx. USD110, for Life & Pensions brokers) up to 
R$1.400,00 (approx. USD420, for "all -line" brokers, life+pensions+non -life+capitalization). SUSEP 
registers brokers as provided in Resolution C NSP nº 249/2012, amended by Resolution CNSP nº 
252/2012.  
Page – 141, Paragraph – 4.146  
Question 37: Could Brazil please inform if resale of telecom services is permitted in Brazil or not 
and the requirements for spectrum allocation?  
Both the sale of spec trum and the granting of authorizations to provide telecommunication 
services are provided by ANATEL, the regulatory agency. In cases of control transfers, mergers or 
acquisitions of a company that has a concession for the provision of telecommunications s ervices 
and also for the use of radio frequencies, these authorizations, including those for the use of radio 
frequencies, are transferred to the a new company, with the prior consent  of ANATEL. However, it 
is only not permitted to resell the radio frequen cies from one company to another. The 
authorizations to the use of the spectrum are still in the sole responsibility of ANATEL.  
On spectrum allocation requirements, the planning for the assignment and destination of a radio 
frequency band is based on the i nternational decisions taken at the World Radiocommunication 
Conferences (WRC), which updated the Radio Regulations (RR), Recommendations of the 
International Telecommunications Union (ITU) and of the Inter -American Telecommunication WT/TPR/M/358/Add.1  
 
- 148 - 
 
  Commission (CITEL); on  the innovations produced by the standardizing organisms; and in public 
policies for the telecommunications sector. A biennial Regulatory Agenda and the annual 
Operational are elaborated, according to public policies defined by the Executive and Legislativ e 
Branch.  
Management is carried out with the approval of resolutions that assign, allocate, distribute and 
determine the conditions of use for each radio frequency band, in addition to the Spectrum 
Management regulatory framework. In addition, equipment ce rtification requirements and licensing 
requirements have also been used for spectrum management.  
ANATEL endeavours to be aligned with the ITU recommendations and with the attributions of the 
RR. The public policies for the sector are elaborated by the Mini stry of Science, Technology, 
Innovation and Communications and carried out by ANATEL.  
Page – 143, Paragraph – 4.153  
Question 38: Could Brazil please inform the details of the local content requirements?  
Legal texts on domestic scientific and technological development are Resolution Nº. 655/2016 of 
ANATEL and at Portaria Nº. 950/2006 of the former Ministry of Science and Technology. Both texts 
can be found at http://www.anatel.gov.br/legislacao/resolucoes/2015/830 -resolucao -655. 
Page – 146, Paragraph – 4.162  
Question 39: Brazil is requested to inform about the total subsidy and various incentives provided 
to its audio -visual sector. Are these incentives and sub sidies available to only domestic players or 
to foreign players also?  
The granting of incentives and subsidies is intended for independent Brazilian production, as 
provided for in Law No. 8.313/1991 (Article 25), Law No. 8.685/1993 (articles 1, 1A, 3, 3A)  and in 
Provisional Measure (MP) No. 2.228 -1/2001. In view of the definition of independent Brazilian work 
present in the legislation, foreigners can benefit from subsidies and tax incentives of the Brazilian 
government, provided that the specifications se t forth in items "b" and "c" of section V of MP 
2.228 -1/2001 are observed.  
According to the Provisional Measure, "a cinematographic and audiovisual work of independent 
production is the one whose production company, in which is the majority stake owner of  the 
rights on the work, has no direct or indirect association nor links to companies of sound and image 
broadcasting services or mass communication operators per subscription.  
Items "b" and "c" mentioned above read as follows: a Brazilian cinematographic  or video -
phonographic work must meet one of the following requirements: (b) be performed by a Brazilian 
production company registered with ANCINE, in association with companies from other countries 
with which Brazil maintains a film co -production agreemen t; and (c) be performed under co -
production by a Brazilian production company registered in ANCINE, in association with companies 
from other countries with which Brazil does not maintain a co -production agreement, given that 
ownership of at least 40% (fort y percent) of the copyrights of the work is awarded to a Brazilian 
production company. Moreover, the work must employ at least 2/3 (two thirds) of Brazilian artists 
and technicians or residents in Brazil for more than three (3) years.  
Page – 151, Paragrap h – 4.181  
Question 40: Brazil is requested to inform the amount of ceiling fees for different airport services 
and how these are adjusted annually?  
Ceiling fees for different airport services are set by ANAC Resolution Nº 216, dated January 30th 
2012, available at: http://www.anac.gov.br/assuntos/legislacao/legislacao -
1/resolucoes/resolucoes -2012/resolucao -no-216-de-30-01-2012/@@display -
file/arquivo_norma/RA2012 -0216.pdf.  WT/TPR/M/358/Add.1  
 
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  They are annually adjusted according to a specific formula which takes into accoun t the 
percentage variation of the consumer price index (IPCA). Such formula is described in article 4 of 
ANAC Resolution Nº 350, dated December 19th 2014, available at: 
http://www.anac.gov.br/assuntos/legislacao/legislacao -1/resolucoes/resolucoes -2014/reso lucao-
no-350-de-19-12-2014/@@display -file/arquivo_norma/RA2014 -0350%20 -
%20Compilado%20at%C3%A9%20RA2017 -0432.pdf.  
Page – 151, Paragraph – 4.182  
Question 41: Could Brazil please inform the requirements for obtaining maintenance -shop 
certification and a Cert ification of Approval of the Company?  
ANAC has a list of requirements for the certification of companies providing aircraft maintenance 
services in Brazil. Requirements, which apply identically to domestic and foreign companies, 
include: the manual of the maintenance organization; a declaration of conformity with a brief 
description of how the organization complies to applicable regulations; a quality control manual; 
the detailed list of all articles for which the certificate application is made; an organiz ational chart 
of the maintenance organization with the names and titles of its administrators and supervisors; a 
description of the facilities of the organization. The full list of requirements can be found at RBAC 
no. 145/2014 (Brazilian Regulation of Civ il Aviation no. 145/2014), available at 
http://www.anac.gov.br/assuntos/legislacao/legislacao -1/rbha -e-rbac/rbac/rbac -145-emd-
01/@@display -file/arquivo_norma/RBAC145.pdf.  
Maintenance of Brazilian registered aircraft by domestic companies : 
a) Airlines: in Brazil, airlines are required to be certified by the civil aviation authority, ANAC, 
according to the requirements of RBAC 119 and RBAC 121. During the certification process (or 
afterwards) an airline can request an authorization to perform maintenance, bu t this authorization 
is limited to the maintenance level of line maintenance (as limited by RBAC 43). The requirements 
for this authorization are listed on subpart L of RBAC 121. To provide services above the line 
maintenance level, the company must be cer tified as a maintenance organization, as per 
RBAC  145; 
b) Air Taxi: in Brazil, air taxi companies are required to be certified by ANAC according to the 
requirements of RBAC 119 and RBAC 135. During the certification process (or afterwards) an 
airline can r equest an authorization to perform maintenance, but this authorization is limited to the 
maintenance level of line maintenance (as limited by RBAC 43). The requirements for this 
authorization are listed on subpart J of RBAC 135. To provide services above t he line maintenance 
level, the company must be certified as a maintenance organization, as per RBAC 145;  
c) General Aviation operators: general aviation operators are not allowed to perform maintenance, 
but they can hire licensed mechanics (RBHA 65) to per form maintenance within the limitations 
defined by section 43.3 and 43.7 of RBAC 43.  
d) Maintenance Organizations: in Brazil, maintenance organizations are required to be certified by 
the civil aviation authority, ANAC, according to the requirements of RBA C 145. They must also 
comply with the requirements of RBAC 43, RBAC 120 and RBHA 65. The Supplementary 
Instruction IS 145 -001 provides guidance and details the domestic Maintenance Organization - MO 
certification procedures of ANAC under the Brazilian RBAC  145. And the Supplementary Instruction 
145-002 provides guidance and details the foreign Maintenance Organization - MO certification 
procedures of ANAC under the Brazilian RBAC 145.  
Maintenance of foreign registered aircraft by domestic or foreign compani es: 
Maintenance of foreign registered aircraft must be performed in accordance with its registry 
country authority rules. Foreign companies conducting common carriage between Brazil and other 
countries must also comply with RBAC 129, which requires that ea ch foreign air carrier operating 
in Brazil must ensure that each of its aircrafts is submitted to a Maintenance Program as 
prescribed in Chapter 8 of Annex 6 of Convention on International Civil Aviation, approved by the 
Civil Aviation Authority of the cou ntry of operator and registry of the aircraft.  WT/TPR/M/358/Add.1  
 
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  Page – 153, Paragraph – 4.189  
Question 42: Brazil is requested to inform the name of the countries with which it has negotiated 
a specific clause in LAIA Economic Complementary Agreements. Is Brazil considerin g signing such 
agreements with other countries also?  
Brazil has negotiated such a clause in its agreements with Argentina, Paraguay and Uruguay (ACE -
18), Mexico (ACE -53, ACE -55), Peru (ACE -58), Colombia, Equator and Venezuela (ACE -59), 
Guyana and Saint Kit ts and Nevis (AAP -38), Surinam (AAP -41). This exemption clause applies only 
to products covered by these agreements.  
Page – 156, Paragraph – 4.201  
Question 43: Could Brazil please inform the details of relevant provisions of the competition 
policy and cons umer protection legislation for distribution sector? Is consumer protection available 
for online consumers (domestic as well as foreigners) also?  
Brazilian competition law – Law 12529 – disciplines the country's antitrust policy and enforcement. 
The compet ition law does not foresee specific provisions for a particular sector or market, such as 
the distribution sector. In that sense, a merger and acquisition in the distribution sector will be 
analysed according to the provisions of the law. Similarly, an ant icompetitive conduct in the same 
sector will be investigated according the same procedures than an investigation in any other 
economic market.  
The Consumer Protection Act (Federal Law Nº 8.078/1990) applies to all sectors of the economy, 
including the distribution sector. Decreto Nº 7.962/2013 regulates consumers rights for purchases 
made through electronic mean, granting extensive rights to cons umers.  
Page – 156, Paragraph – 4.4.6.2  
Question 44: Could Brazil please inform the regulatory requirements for source code, localization 
of servers and cross -border data flows?  
No Brazilian legislation prohibits the cross -border exchange of information, including personal 
information. However, Brazilian law also guarantees the following rights for internet users: a) not 
to have the user's private life violated; b) to receive comp ensatory damages in the case of 
violation; c) confidentiality in the flow of communication over the internet, except in the presence 
of a court order; d) confidentiality in the storage of private communication, except in the presence 
of a court order; e) p rohibition that personal information be handed to a third party, including 
information related to internet connections and access to applications, unless freely and explicitly 
authorized by the user, as provided by the law; f) need for express consent (hig hlighted in 
contracts) for the collection, use, storage and handling of personal information; g) to have 
personal information deleted, upon user's request, after the termination of the relationship 
between the parties, except for the cases of mandatory sto rage of information as provided by the 
law; h) to receive clear information about the collection, use, storage and handling of personal 
information, which may only be used for purposes that justify their collection, that are not 
prohibited by law; and that  are specified in service contracts or in terms of use of internet 
applications.   
For more information regarding the regulation of use of the internet in Brazil, please refer to 
Federal Law nº 12965/2014 found at http://www.planalto.gov.br/ccivil_03/_ato20 11-
2014/2014/lei/l12965.htm.  
Brazilian law does not include a general rule which requires private companies to store or process 
data obtained inside Brazil on computer facilities located inside Brazil in the case of purchases by 
made by electronic means. T herefore, Brazilian law does not require the "localization" of servers, 
but it only sets forth, among the guidelines for the federal, state or municipal Government, the 
"stimulation for the setting up of centers of storage, management and spread of data in  Brazil, 
promoting high technical standards, innovation, spread of internet applications, without prejudice 
to openness, neutrality and the participation of all parties involved" (Federal Law nº 12965/2014).  WT/TPR/M/358/Add.1  
 
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  In the case of financial institutions regulatio n requires that scanned documents and copies of 
scanned documents concerning financial transactions shall be stored in Brazil (Resolution 
4.474/2016 of the Nacional Monetary Board -CMN). According to Resolution 4.480/2016 of the 
Nacional Monetary Board -CMN, which regulates the opening and closing of bank accounts by 
electronic means, it is also required that scanned documents and copies of scanned documents be 
stored in Brazil. The purpose of these measures is to prevent that the Central Bank's oversight 
capacity is jeopardized due to procedures or situations related to the storage and process data 
that impede or hinder the appropriate supervision regarding operational risks, timely access to 
data, adherence to standards, integrity and confidentiality of info rmation.  
CMN Resolution 4474/2016 is available at: 
https://www.bcb.gov.br/pre/normativos/busca/downloadNormativo .asp?arquivo=/Lists/Normativo
s/Attachments/50177/Res_4474_v1_O.pdf . 
 CMN Resolution 4480/2016 is available at: 
(https://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativ
os/Attachments/50185/Res_4480_v1_O.pdf . 
Page – 159, Paragraph – 4.211  
Question 45: Could Brazil please inform the requirements for obtaining residency in Brazil?  
The Ministry of Justice in Brazil website contains relevant information (in the form of Q&As) on the 
process of obtaining temporary or permanent residency in Brazil under the link 
http://www.justica.gov.br/central -de-atendimento/estrangeiros/entrada . Temporary  residency is 
linked to activities of a non -permanent nature (related to work, religious mission, research project, 
study) and is granted for two years, renewable on a case -by-case basis. Permanent residency is 
associated to individual subjective situation s such as marriage, stable civil unions or having 
Brazilian children, and can also be granted under bilateral or multilateral agreements .  
Page – 159, Paragraph – 4.4.8  
Question 46: Brazil is requested to inform the process, cost and time taken for revalid ation of 
foreign degrees? It is also requested to inform the frequency, cost and place of exams to be 
undertaken by foreign service suppliers for providing various professional services in Brazil. (MEC, 
DNS-MRE, CAU -BR, CFC)  
Law 9394/1996, which is known a s the Law on the Guidelines and Basis of National Education 
("LDB"), establishes that undergraduate and postgraduate diplomas awarded by foreign 
universities must be recognized by Brazilian public universities that have a similar course and 
equivalent fiel d of study (Article 48). This provision is complemented by the principle of university 
autonomy guaranteed by article 207 of the Federal Constitution. Therefore, Brazilian public 
universities are the competent institutions to recognize studies and degrees in the country, based 
on general guidelines provided by the National Education Council (CNE).  
There is no legal provision for automatic recognition, but there is room for the facilitation of the 
recognition procedures of the diplomas. The negotiation of Me moranda of Understanding between 
associations of universities in two countries is possible, in order to facilitate the process of 
revalidation of diplomas. The Agreement between the National Association of Directors of Federal 
Institutions of Higher Educat ion of Brazil (ANDIFES) and The Council of Deans of Portuguese 
Universities (CRUP) to accelerate the process of Equivalence, Recognition and Revalidation of 
Undergraduate Diplomas in Architecture and Engineering, signed in June 2013, is an example.  
In add ition, recent initiatives by the Ministry of Education should speed up the recognition of 
degrees by Brazilian universities. The Carolina Bori platform was launched 
(http://carolinabori.mec.gov.br). It provides information to guide and coordinate the 
revalidation /recognition of foreign diplomas. Brazilian universities have a deadline to publish their 
requirements on the platform and to judge revalidation processes.  
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  INDONESIA  
Secretariat Report  
SUMMARY  
Page 7, Para 3  
3. Fiscal policy has experienced difficulties responding to the severe economic downturn and public 
expenditure pressures arising from Brazil's demographic dynamics. As a result, the federal 
budget's primary balance registered widening deficits during 2014 -16, interrupting a decade -long 
succession of surpluses. The downward trajectories of gross and net public sector debt were also 
reversed, with respective increases from 51.5% to 69.9% of GDP and from 30.5% to 46.2% of 
GDP between 2013 and 2016. The loss o f investment grade in the last quarter of 2015 did not 
trigger much volatility in public debt management, due to low levels of exposure to foreign 
currencies and overseas investors. The authorities have taken steps towards fiscal consolidation, 
including m easures to improve the management of public finances and state -controlled 
enterprises, and the adoption of a New Fiscal Regime in December 2016. Nevertheless, structural 
deficiencies, such as the complex and burdensome tax system, and federal and sub -federal budget 
rigidities, are yet to be addressed.  
Question:  
1. Could Brazil please explain what the policy measures have been taken to increase the 
economic downturn?  
In order to promote economic recovery after eight consecutive quarters of recession, the Braz ilian 
government adopted in the last year an agenda of structural reforms, focused on fiscal policy 
tightening, promotion of medium and long term debt sustainability, and improvement of regulatory 
and business environments. The following policy measures ar e part of this agenda of structural 
reforms: a constitutional amendment that caps growth in real terms in real public spending for the 
next twenty years, reforms to the pension system and a law that provides more flexibility to labor 
regulations and aims t o reduce labor litigations was recently enacted;, a program of public -private 
partnerships to attract investments in transportation and energy infrastructure, and increase and 
diversification of trade and investments partners.  
Although the bulk of the imp act of those reforms will be felt on the long -term, short -term impacts 
are not neglible and will alter growth perspectives in the near term. Fiscal consolidation derived 
from the spending cap bill and from social security reform is being translated into in creasing 
confidence on the sustainability of the economy, fostering private investment and helping to create 
a favorable environment for lower interest rates. Labor reform immediately increases the flexibility 
of the labor market reducing labor costs and i mproving the overall productivity of the economy. 
Other structural reforms aiming to reduce business costs in Brazil may help to foster investment. 
It is reasonable to believe that those reforms will significantly contribute to restore confidence and 
reduc e uncertainties with favorable effects on the growth outlook for the short and medium terms.  
Although recession played a considerable role in reducing inflation by depressing domestic 
demand, a combination of a tight monetary policy and contractionary fis cal policy managed by the 
Government contributed to an impressive decrease of inflation from a peak of 10,67% in 2015 to 
the current rate of 4,08%, below the central bank's inflation target. In a virtuous cycle, as inflation 
decreased, the central bank was  able to lower the benchmark interest rates of the economy, which 
has been having a very positive effect in the deleveraging of household and corporate debts. Some 
of the indicators of economic activity (such as the IBC -Br of the central bank), shows that the 
Brazilian economy grew in the first quarter of 2017 by 1,1%, marking the beginning of the long 
awaited economic turnaround.  
Page 11, Para 26  
26. Strong market competition continued to lead to further improvements in the quality and tariffs 
of telecommu nication services. During the review period, local content requirements were used for WT/TPR/M/358/Add.1  
 
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  auctioning radio spectrum frequencies. Certain audiovisual and broadcasting services remain, inter 
alia, subject to foreign investment limitations and local content requi rements or preferences.  
Question:  
2. Could Brazil provide a detailed description including the procedure of calculation of the local 
content programs?   
Anatel's requirements applied to the auctioning of radio spectrum are production -step 
requirements, not lo cal content requirements. They do not discriminate between domestic and 
imported products. The technology requirements equally do not discriminate between goods and 
aim at generating a critical mass of technology in Brazil.  
On audiovisual, The granting of  incentives and subsidies is intended for independent Brazilian 
production, as provided for in Law No. 8.313/1991 (Article 25), Law No. 8.685/1993 (articles 1, 
1A, 3, 3A) and in Provisional Measure (MP) No. 2.228 -1/2001. In view of the definition of 
indepe ndent Brazilian work present in the legislation, foreigners can benefit from subsidies and tax 
incentives of the Brazilian government, provided that the specifications set forth in items "b" and 
"c" of section V of MP 2.228 -1/2001 are observed.  
According to the Provisional Measure, "a cinematographic and audiovisual work of independent 
production is the one whose production company, in which is the majority stake owner of the 
rights on the work, has no direct or indirect association nor links to companies of sound and image 
broadcasting services or mass communication operators per subscription.  
Items "b" and "c" mentioned above read as follows: a Brazilian cinematographic or video -
phonographic work must meet one of the following requirements: (b) be perfor med by a Brazilian 
production company registered with ANCINE, in association with companies from other countries 
with which Brazil maintains a film co -production agreement; and (c) be performed under co -
production by a Brazilian production company register ed in ANCINE, in association with companies 
from other countries with which Brazil does not maintain a co -production agreement, given that 
ownership of at least 40% (forty percent) of the copyrights of the work is awarded to a Brazilian 
production company.  Moreover, the work must employ at least 2/3 (two thirds) of Brazilian artists 
and technicians or residents in Brazil for more than three (3) years.  
2 TRADE AND INVESTMENT REGIMES  
2.6 Foreign Investment Regime  
Page 38, Para 35  
2.35. Brazil continues to follow a "negative" list approach in restricting FDI and national interest 
provisions are found in its Constitution. According to the authorities, during the review period, 
95% of FDI applications were approved and rejections were due to non -compliance wit h domestic 
legal requirements. Restrictions on foreign investment affect some activities including nuclear 
power and certain postal services. In 2015, healthcare services were opened to foreign investment 
by allowing the participation of foreign capital co mpanies in supplementary healthcare services 
thus providing new opportunities for companies and investments in the health sector. As of 
January 2017, in an effort to pull the economy out of a two -year recession, the Government was 
to propose legislation to  lift restrictions on foreign ownership of airlines and agricultural land in 
Brazil. Foreigners and foreign -controlled companies and businesses may not own land in specified 
areas within 150 kilometres of Brazil's national borders, directly on its coasts o r in any other 
geographical areas designated and defined as sensitive for national security; foreign -ownership of 
these areas requires authorization from the Brazilian National Security Council, among other 
procedures.  
Questions:   
3. What is the reason of res triction for FDI in several sector?  
FDI restrictions in specific sectors are defined by law. Congress has the mandate to 
approve further changes.  WT/TPR/M/358/Add.1  
 
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  4. Does Brazil plan to open up the restriction for FDI in near future?  
In the healthcare services sector, Law 13.097 of 2015 altered Law 8,080/1990, allowing the direct 
or indirect participation of foreign capital in health assistance in Brazil, in the following cases: 
(i) donations of international bodies linked to the Unite d Nations, of technical cooperation and 
funding organizations; (ii) legal entities intended to install, operate and exploit: general hospitals, 
including philanthropic, specialized hospitals, polyclinics, general clinics and specialized clinics; and 
action s and researches related to family planning; (iii) health services maintained, non for profit, 
by companies, for healthcare services for their employees and dependents, at no cost to the social 
security; and (iv) other cases that may be regulated under spe cific legislation.  
Regarding the air transportation market, the Presidency sent to Congress, in April 2017, bill PL 
7425/2017, which eliminates all restrictions for foreign investment on Brazilian air carriers. 
Therefore, Brazilian air transport companies  could hold up to 100% foreign capital. PL 7425/2017 
is still under consideration by the Legislative branch – currently, at the Chamber of Deputies (the 
Lower House).  
5. Could Brazil list the web links where this negative list information could be found?  
There is no «  negative list  » weblink. FDI restrictions are defined by law.  
6. Please explain details how the specific qualification requirements and examination and 
approval procedures for foreign investors to enter Brazil?  
FDI in Brasil doesn't required prior o fficial authorization and it occurs in a non -discriminatory basis. 
Legal restrictions regarding foreign capital participation or control apply in some specific sectors.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition polic y 
3.3.4.2 Price controls  
Page 80, Para 167  
3.167. The consumer price index (IPCA) used in Brazil's inflation targeting regime contains several 
goods and services whose prices are deemed insensitive to supply and demand fluctuations, 
because they have been determined in a long -established contract or set by a public sector entity 
(include petroleum products). According to the IMF, in 2016 regulated prices had a significant 
weight in the IP CA (some 25% of the basket), and therefore strong direct and second -round (via 
impact on production) effects on inflation.  
Questions:  
7. Please explain why does Brazil applied price controls on petroleum products when the country 
has a good performance of sel f-sufficiency in energy?   
Since 2002, fuel prices have been freely determined in all stages of commercialization, in 
accordance to the objectives of the national energy policy established by Law 9,478 of August 
1997.  
In October 2016, Petrobras announced th at it is current pricing policy for gasoline and diesel oil is 
based on the following principles: (i) international parity price, including costs such as ship freight, 
internal transportation costs and port taxes; (ii) margin to  remunerate risks inherent t o the 
operation; (iii) level of market share; and (iv) prices never below international parity.  
Before then, the pricing policy adopted by Petrobras for gasoline and diesel oil was to readjust 
prices in the medium and long term, with the objective that mom entary fluctuations in the 
international price of these fuels would not be passed on to the domestic market in the short term.  WT/TPR/M/358/Add.1  
 
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  3.3.6 Government procurement  
Page 82, Para 174  
3.174. Brazil is neither a party nor an observer to the WTO Plurilateral Agreement  on Government 
Procurement (GPA). The Agreement on Economic and Trade Expansion between Brazil and Peru, 
signed in April 2016, contains a chapter on government procurement. Brazil is involved in ongoing 
negotiations on a MERCOSUR Public Procurement Protoco l, as well as in FTA negotiations between 
MERCOSUR and the EU that also include a chapter on public procurement.  
Questions  
8. Could Brazil please explains why Brazil not joining the GPA in WTO?  
Brazil is not a member of the GPA, but has engaged in bilateral o r regional initiatives related to 
public procurement commitments based on the WTO GPA principles.  
9. When Brazil will joining the GPA in WTO?  
Please refer to the previous reply.  
10. What is the current policy towards the GPA?  
Please refer to the reply to question  8. 
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing  
4.3.5 Automotive sector  
Page 128, Para 104  
4.104. In June and October 2014, in the context of the WTO Committee on Trade -Related 
Investment Measures, certain Members raised questions on several aspects linke d to local content 
conditions under the INOVAR -AUTO programme. Two dispute settlement cases involving domestic 
support to the automotive industry are under way (Sections 2.5.1, 4.3.4 and 4.3.5).  
Questions:   
Could Brazil provide an update on dispute settlement case regarding the local content issue ? 
This question prejudges the outcome of an ongoing dispute.  
11. What is the Brazil point of view related the local content policies?  
This question prejudges the outcome  of an ongoing dispute.  
12. What is the follow -up actions related to that case?  
This question prejudges the outcome of an ongoing dispute.  
  WT/TPR/M/358/Add.1  
 
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  JAPAN  
Report  by the Secretariat  (WT/TPR/G/358)  
2. TRADE AND INVESTMENT REGIMES  
2.5 Trade Agreements and Arrangements  
2.5.1 WTO  
(Question 1)  
According to the report by the Secretariat, two dispute settlement cases involving domestic 
support measures to the automotive industry, information technology sectors and exporters are 
under way (DS 472/497). Japan considers the Inovar -Auto programme, PAD IS, PATVD and other 
programmes of these sectors are discriminatory and are inconsistant with the WTO Agreements. 
Does the Brazilian Government plan to abolish or amend these programs? If so, please describe 
the schedule?  
All programmes have specific time frames for their duration in their respective legislations. With 
regard to those programs listed in the question, PATVD has already expired and INOVAR -AUTO will 
expire at the end of 2017.  
2.5.2 Regional and preferential t rade agreements (RTAs and PTAs)  
(Question 2 paragraph 2.25)  
According to the paragraph 2.25, during the review period Brazil concluded several RTAs within the 
framework of the Latin American Integration Association (LAIA) and MERCOSUR. Could Brazil 
clarify  whether any RTAs where the partners are excluded from the application of global safeguard 
measures? If any, could Brazil provide the details?  
Brazilian safeguard measures are not applied to Brazil 's Mercosur partners. Furthermore, Article 2 
of Chapter V of the Free Trade Agreement between Mercosur and the State of Israel establishes 
WTO plus rules that might lead to the exclusion of Israeli exports from a global safeguard 
measures in exceptional circumstances. None of Brazil´s other bilateral agreements h as rules 
regarding the exclusion of the signatory parties from the application of global safeguard measures.  
(Question 3 paragraph 2.25)  
Could Brazil clarify whether there have been any cases that exports from Brazil were excluded 
from an application of gl obal safeguard measures pursuant to such provisions under the RTAs ever 
before? If any, could Brazil provide the details?  
As a member of Mercosur, Brazilian exports are excluded from global safeguard measures applied 
by its Mercosur´s partners: Argentina,  Paraguay, Uruguay and, more recently, Venezuela. None of 
these countries has applied global safeguards measures during the review period.  
Regarding other countries, Brazilian exports were normally excluded from the application of a 
global safeguard measur e pursuant to the provisions of article 9.1 of the WTO Safeguard 
Agreement, but not because of provisions under RTAs .  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures directly affecting imports  
3.1.6 Anti -dumping, countervailing, and safeguard measu res 
(Question 4 paragraph 3.58)  
According to the report by the Secretariat, Neither safeguard investigations nor safeguard 
measures were started in Brazil during the period under review. With respect to a bilateral 
safeguard measure which may be provided u nder RTAs, please clarify whether this type of 
safeguard measure has ever been initiated or imposed in the past, not limited to this period of WT/TPR/M/358/Add.1  
 
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  review. If there are any cases, please explain the measures, such as the product scope, the date 
of measure being  taken and the period of the measure.  
Brazil has never initiated or applied bilateral or preferential safeguards to its preferential trading 
partners.  
3.3 Measures Affecting Production and Trade  
3.3.1.3 Federal financing facilities  
(Question 5 paragraph 3 .124)  
The report by the Secretariat mentioned, "According to the authorities, the BNDES reviews the 
eligibility criteria (including any local content/local production requirements) for its schemes and 
adapts them to changing market conditions." How does th e BNDES consider to change the criteria? 
Especially for local content/local production requirements, what kind of market conditions influence 
criteria modification in what way? And let us know the process and the time schedule for reviews.  
BNDES may revie w its operational policy based on an analysis of changing market conditions, e.g. 
technological and environmental requirements, regulatory conditions and private business plans - 
which include technological solutions and the combination between imports and  local production of 
components that investors choose to meet their risk and return strategies. There 's no predefined 
process or time schedule for reviews.  
3.3.7 Intellectual property rights  
(Question 6 paragraph 3.187)  
According to the Joint Ordinance No. 1/2017 issued in 2017, double examinations for 
pharmaceutical patent applications by ANVISA and INPI seem to be dissolved. However, this 
regulation prescribes that when necessary, ANVISA is allowed to provide the INPI with information 
on patentability. Wha t kind of cases will be judged to be this "when necessary"?  
According to the Joint Ordinance N. 01/2017, ANVISA might give a pre -grant opinion about the 
compliance with requirements for patentability, although this opinion is not mandatory to INPI, 
which is free to decide according to its own opinion. ANVISA might give this non -binding opinion 
towards patent applications encompassing pharmaceutical products and processes of interest to 
the drug policies and pharmaceutical assistance of the National Healthc are System (SUS).  
In order to comply with provisions of article 229 -C of Law 9279/1996, included in article 1 of Law 
10196/2001, the granting of invention patents under applications related to pharmaceutical 
products and processes depends on prior consent from ANVISA.  
Joint Ordinance 1/2017 indicates that ANVISA 's attribution is to analyze whether a a patent 
application presents risks to health, whereas INPI analyzes its patentability requirements.  
Whenever ANVISA provides information on patentability requirements other than health risks 
related aspects, IINPI will grant to these analyses a treatment similar to the one it confers to 
submissions by any other institution/individual providing data to as sist the patentability 
examination ( according to article 31 of the Industrial Property Law, after publication of the 
application and up to the end of the examination, interested parties may submit documents and 
data to assist the examination).  
Even befor e the new, clearer delimitation of responsibilities described by the Interagency 
Ordinance 1/2017, the special procedure for the evaluation of medical and pharmaceutical patents 
was TRIPS -compliant in Brazil 's view. The TRIPS agreement states, in its Artic le 8,1, that Members 
may, in formulating or amending their laws and regulations, adopt measures necessary to protect 
public health and nutrition, and to promote the public interest in sectors of vital importance to 
their socio -economic and technological de velopment, provided that such measures are consistent 
with the provisions of this Agreement.  WT/TPR/M/358/Add.1  
 
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  (Question 7 paragraph 3.193)  
We ask that you please provide us with (i) the latest statistic data of examination time of patent 
applications by each technical cate gories and (ii) the state of progress of measures for accelerating 
examination procedure.  
(i) The statistical data of examination time of patent applications currently available at INPI 's 
website are not separated in technical categories, it only provides  the average time of examination 
of all patent applications.   
(ii) Since 2016, 150 new examiners of patents were hired by INPI, in order to reduce the 
processing time for patents. The productivity is also increasing due to the simplification of 
technical p rocedures of exams, and the implementation of home office, conditioned to a higher 
production of the examiners.   
In the patent area, decisions increased by 88% in last May compared to April. In the first five 
months of 2017, there were 22,134 decisions, al most as much as the total recorded for the entire 
year 2014 (22,336 decisions) and higher than 2015 (15,842 decisions). In a comparison between 
May 2017 and May 2016, there was a138% increase in the number of decisions.  
(Question 8 paragraph 3.190)  
With re spect to the Know -how license agreement between foreign company and Brazilian Company 
based on the "Law No. 4.131 of September 3, 1962 (Foreign Capital Law)", we would like to know 
the latest regulations of (i) maximum term of agreement, (ii )restriction o n the ownership of 
technology (requirement of technology transfer), (iii) maximum amount of license fee, and (iv) 
other restrictions, if any.  
On April 11, 2017, Instrução Normativa 70/2017 was enacted, which established the 
administrative procedure for re gistration of licenses and assignments of industrial property rights 
and registration of technology transfer and franchise agreements. According to this regulation, 
INPI registers these documents and analyzes their formal aspects. The duties of regulating and 
controlling the terms of the agreements were transferred to the Central Bank and to the Federal 
Revenue Secretariat.  
(Question 9 paragraph 3.22)  
We understand that Interagency Ordinance #1 was published on April 12, 2017 regarding Article 
229-C of the Patent Law. On the patent applications encompassing pharmaceutical products and 
processes of interest to the drug policies and pharmaceutical assistance of the National Healthcare 
System (SUS), Article 5 of the Ordinance authorizes the ANVISA to issue a te chnical opinion, 
based on patentability requirements, during the patent office's substantive examination. In this 
regard, please elaborate what detailed situations trigger above Article 5. Also, could a technical 
opinion address the existence or lack of pa tentability?  
The "Interagency Ordinance" referred above is Portaria Conjunta ANVISA/INPI nº 001/2017, which 
regulates Article 229 -C of Law nº 9279/1996. According to this Ordinance, ANVISA shall analyze 
health risks in patent applications in the pharmaceu tical field, meaning that ANVISA must verify if 
there is a forbidden substance contained in any application. This exam is in accordance with TRIPS 
(Article 27.2).  
ANVISA might also give a pre -grant opinion about the compliance with other requirements for 
patentability, although this opinion is not mandatory . ANVISA will not deny its consent based on 
the lack of other requirements for patentability.  
This measure aims at reducing the current backlog for patent examining in Brazil. The submission 
of pre -grant opinion during the patent prosecution is a common practice in several countries, and 
in Brazil this activity is carried out in accordance with Article 31 of Law 9279/1999. Opinions may 
be submitted by any stakeholder, in all technological fields. Therap eutic areas considered of 
interest to the drug policies and pharmaceutical assistance of the National Healthcare System 
(SUS) are described in "Portaria MS nº 736/2014" (Health Ministry Ordinance nº 736/2014).  WT/TPR/M/358/Add.1  
 
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  (Question 10 paragraph 3.199)  
According to the  report by the Secretariat, under the Brazilian law, copyright holders may initiate 
procedures for the prosecution of importers of pirated goods. How often do copyright holders 
initiate criminal prosecution in this regards, compared to civil remedies they (may) seek? Please 
provide us with the latest statistic data in this regard.  
Statistics in this regard are not available.  
(Question 11 paragraph 3.189)  
1. According to Article 2 of Interagency Ordinance #1/2017 issued by INPI and ANVISA on April 
13, 2017, INPI will submit ANVISA a list of patent applications being forwarded to the ANVISA with 
the first -track examination decisions, if applicable. Will ANVI SA prioritize analysis of the patent 
application granted for the first -track examination request?  
ANVISA will prioritize analysis of the patent application granted by INPI for the first -track 
examination request.  
2. According to Article 6 of Interagency O rdinance #1/2017, INPI must manifest its opinion with 
technical ground, pointing the reason of disagreement with the technical opinion issued by 
ANVISA. The technical opinion issued by ANVISA would present a special burden on examiner of 
INPI compared with  a usual third party observation. Could Brazil explain the purpose of the 
provision of Article 6?  
According to the Brazilian Federal Constitution and Law No. 9.784/1993, every administrative 
decision must be justified, especially those that grant or limit  rights. INPI must also indicate its 
technical feedback every time that a third party submits an opinion, justifying the decision taken. 
Article 6 is an administrative tool that will help ANVISA to manage a large number of pre -grant 
opinions.  
2. According to Article 6 of Interagency Ordinance #1/2017, INPI must manifest its opinion with 
technical ground, pointing the reason of disagreement with the technical opinion issued by 
ANVISA. The technical opinion issued by ANVISA would present a special burden on e xaminer of 
INPI compared with a usual third party observation. Could Brazil explain the purpose of the 
provision of Article 6?  
The technical opinion issued by ANVISA will not represent a burden to an examiner of INPI beyond 
that deriving from the usual thi rd party observations. According to Article 6, INPI does not have to 
agree with the information provided by ANVISA on patentability issues. INPI can also consider any 
other data provided by any institution/individual to assist the examination. According to  this Joint 
Ordinance, ANVISA 's attribution is to analyze whether a subject matter of a patent application 
represents risk to health, whereas INPI analyzes its patentability requirements.  
(Question 12 paragraph 3.191)  
INPI-JPO Patent Prosecution Highway Pilot Program started on April 1, 2017 under INPI 's Rule 
#184 of March 28, 2017. However, INPI limited the use of the pilot program to patent applications 
related to information technology and mechanical technology. Could Brazil consider to expand the 
subjects of the pilot program to other technologies, such as pharmaceutical, if the number of 
requests to use the pilot program is less than the initial plan.  
INPI-JPO Patent Prosecution Highway (PPH) Pilot Program will end on March 31, 2019; after this 
date, INPI will have the opportunity to evaluate the results of the pilot program and develop 
further actions in the area, which may modify the technologies included in the PPH.   WT/TPR/M/358/Add.1  
 
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  4.Trade Policy by Sector  
4.3 Manufacturing  
4.3.5 Automotive Sector  
(Question 13 pa ragraph 4.103)  
According to the report by the Secretariat, Brazilian government has introduced Inovar -Auto 
Program from 2013 to 2017. This program is scheduled to be end in 2017. How does Brazilian 
government evaluate the policy effect. From 2018, Brazilia n government announced to launch new 
automotive industry policy Route 2030. Please provide the difference of the policies.  In addition, 
please describe the schedule and the process.  
As established in Article 1 of Decree 7819/2012, INOVAR - AUTO will expire  in December 31, 2017. 
The features of the future Brazilian automotive policy are under consideration by the Brazilian 
government.  
4.4 Services  
4.4.3.2 Insurance  
(Question 14 paragraph 4.141)  
According to the report by the Secretariat, the requirements on foreign companies relating to the 
mandatory cession level to local reinsurers and the cap on intra -group cession for companies 
affiliated or belonging to the same financial conglomerate headquarterd abroad will be relaxed. 
Does Brazil have a plan to abolis h these measures in future?  
The requirements have already been relaxed, as stated in paragraph 4.141 and provided in CNSP 
Resolution 168/2007, as amended by Resolution CNSP 322/2015:  
Levels of mandatory placement in local reinsurers (article 15 sole parag raph):  
I - 40%, until 31 December 2016;  
II - 30%, as of 1st January 2017;  
III - 25%, as of 1st January 2018;  
IV - 20%, as of 1st January 2019;  
V - 15%, as of 1st January 2020.  
Cap on intra -group cession (article 14 § 4)  
I - 20%, until 31 December 2016;  
II - 30%, as of 1st January 2017;  
III - 45%, as of 1st January 2018;  
IV - 60%, as of 1st January 2019;  
V - 75%, as of 1st January 2020.  
Further modifications are not under consideration at the moment.  
4.4.6 Distribution  and e -commerce  
(Question 15 paragraph 4.203)  
Does Brazil have any measure in effect which obliges private companies to store or process data 
obtained inside Brazil on computer facilities located inside Brazil? If any, could Brazil describe the 
purpose and  concrete regulations of such measure?  
Brazilian law does not include a general rule which requires private companies to store or process 
data obtained inside Brazil on computer facilities located inside Brazil in the case of purchases 
made by electronic means. Therefore, Brazilian law does not require the "localization" of server. It 
encourages, in guidelines for the federal, state or municipal Government, the "s etting up of 
centers of storage, management and spread of data in Brazil, promoting high techn ical standards, 
innovation, spread of internet applications, without prejudice to openness, neutrality and the 
participation of all parties involved" (Federal Law nº 12965/2014).  WT/TPR/M/358/Add.1  
 
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  Legislation regulating the use of internet in Brazil and the guidelines for Government action can be 
found at the following website: http://www.planalto.gov.br/ccivil_03/_ato2011 -
2014/2014/lei/l12965.htm . 
Regarding Financial Institutions, the CMN Resolution 4474/2016 
(https://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.a sp?arquivo=/Lists/Normativ
os/Attachments/50177/Res_4474_v1_O.pdf) states that "scanned documents and backup copies 
of scanned documents shall be stored in the Country", when dealing with the digitization and 
management of scanned documents relating to oper ations and transactions carried out by financial 
institutions and other institutions authorized to operate by the Central Bank of Brazil.  
In the same line, the CMN Resolution 4480/2016 
(https://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arq uivo=/Lists/Normativ
os/Attachments/50185/Res_4480_v1_O.pdf), which disciplines the opening and closing of deposit 
accounts by electronic means, establishes that financial institutions and other institutions 
authorized to operate by the Central Bank of Braz il must "comply with the provisions of arts. 5 to 8 
of the CMN Resolution 4474 / 2016, in defining procedures and technologies related to the 
storage, maintenance, restoration and access to electronic documents and information used in the 
opening and closi ng of deposit accounts by electronic means" and therefore determines that these 
electronic documents and their backup copies should be stored in the Brazil. The purpose of these 
measures is to prevent jeopardizing the Central Bank 's oversight capacity due to procedures or 
situations related to the storage and process data that impede or hinder the appropriate 
supervision regarding operational risks, timely access to data, adherence to standards, integrity 
and confidentiality of information.  
(Question 16 par agraph4.203 )  
Does Brazil have any measure in effect which restricts cross -border transfer of information 
including personal information? If any, could Brazil describe the purpose and concrete regulations 
of such measure?  
No Brazilian legislation prohibits the cross -border exchange of information, including personal 
information. However, Brazilian law also guarantees the following rights for internet users: a) not 
to have the user 's private life violated; b) to receive compensatory damages in the c ase of 
violation; c) confidentiality in the flow of communication over the internet, except in the presence 
of a court order; d) confidentiality in the storage of private communication, except in the presence 
of a court order; e) prohibition of personal in formation be handed to a third party, including those 
regarding internet connections and access to applications, unless freely and explicitly authorized 
by the user, as provided by the law; f) express consent for the collection, use, storage and 
handling o f personal information. Such clauses shall be highlighted in contracts made on the 
internet; g) to have personal information deleted, upon user 's request, after the termination of the 
relationship between the parties, except for the cases of mandatory stor age of information as 
provided by the law; h) to receive clear information about the collection, use, storage and handling 
of personal information, which may only be used for purposes that justify their collection, that are 
not prohibited by law; and that are specified in service contracts or in terms of use of internet 
applications. For more information regarding the regulation of use of the internet in Brazil, please 
refer to Federal Law nº 12965/2014 found at http://www.planalto.gov.br/ccivil_03/_ato2011 -
2014/2014/lei/l12965.htm.  
Complementary Law 105/2001 (http://www.planalto.gov.br/ccivil_03/leis/LCP/Lcp105.htm), 
determines that financial institutions shall maintain the confidentiality of their active and passive 
transactions. Financial regulators, how ever, can negotiate a Memorandum of Understanding with 
supervisory agencies of other countries in order to share information and carry out joint 
inspections, in accordance with their respective regulatory and supervisory mandates.  
  WT/TPR/M/358/Add.1  
 
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  REPUBLIC OF KOREA  
PART I: Questions Regarding the Secretariat Report   
Page 87 (Table 3.22 National IPR legislation, 2017)  
Subject/Law : Undisclosed information  
Law No. 10,603 (07 December 2002)  
Industrial Property Law No. 9,279 (14 May 1996)  
Coverage : Undisclosed information related to pharmaceutical products for veterinary use,  
fertilizers, pesticides, their components and related products; protection against unfair commercial 
use of undisclosed information.  
Question 1  
According to the provided coverage of the Law, it applie s to the information related to 
pharmaceutical products for veterinary use. Does it imply that the Law is not applicable to the 
information related to pharmaceuticals for human use ?  
The protection against disclosure or any unfair commercial use of undisclosed test or data 
submitted as a condition to approve the marketing of pharmaceutical products for human 
medicinal use is foreseen in Article 195 of the Industrial Property Law (Law n° 9.279/1996).  
Law N. 10.603/2002 is not applicable to the information related to pharmaceuticals for human use, 
which has its own protection system grounded on Article 195, XIV, of Law N. 9.279/1996.  
Page 87 (Table 3.22 National IPR legislation, 2017)  
Subject/Law : Undisclosed information  
Remarks : Law No. 9,279/1 996 protects against unfair commercial use of the information  and 
data presented to the authorities for commercial approval.  
Question 2  
With regard to "the protection against unfair commercial use of the information," does the scope of 
this Law include ca ses falling under the paragraph 3 of Article 39 of WTO TRIPS "a condition of 
approving the marketing of pharmaceutical or of agricultural chemical products which utilize new 
chemical entities"?  
Article 39.3 of the TRIPS Agreement requires an effective pro tection against disclosure or any 
unfair commercial use of undisclosed test or data submitted as a condition approve the marketing 
of pharmaceutical products for human medicinal use. Such protection is granted by Article 195 of 
the Industrial Property Law,  as described above.  
Question 3  
3.1 Is there a data protection (data exclusivity) system in Brazil applicable to the information 
concerning safety or efficacy of the product, which is submitted for the application of marketing 
approval for a new pharmaceut ical?  
If the system exists, we would like to know the legal basis of the system (the name and applicable 
Article of the law), weather the system covers biopharmaceuticals, and how many years of data 
protection is provided  
Law N. 10.603/2002 is applicable  to the information related to pharmaceuticals for veterinarian 
use, inter alia. Data protection is provided from 5 to 10 years, depending on some requirements. WT/TPR/M/358/Add.1  
 
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  The protection of information related to pharmaceuticals for human use is based on Article 195,  
XIV, of Law N. 9.279/1996. This system covers biopharmaceuticals. There 's no reference to the 
time of protection in this law.  
PART III: Other Questions  
Question 1  
If there exists  a drug approval -patent linkage system in Brazil, please inform us of the name and 
article number of the applicable law.  
There is no drug approval -patent linkage system in force in Brazil.  
  WT/TPR/M/358/Add.1  
 
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  MALAYSIA  
SECRETARIAT REPORT  
Summary paragraph no. 21 (page 10)  
Brazil's intellectual property rights (IPR) legislation covers all the major aspects covered by the 
TRIPS Agreement. In some areas, including copyright, rights exceed the minimum terms laid down 
in the Agreement. It continues to struggle with significant b acklogs and delays in the processing of 
applications for IPR protection, which may be hampering technological innovation. Protection was 
further enhanced with the expansion of international commitments, and the introduction of penalty 
provisions for infrac tions in certain areas.  
Question  Appreciate if Brazil could further explain in which areas do the penalty provisions 
enforce in the IPR protection?   
The Industrial Property Law 9279 (14 May 1996), Title V, presents Crimes Against Industrial 
Property, which  encompasses Crimes Against Patents, Industrial Designs, Marks, Geographical 
Indications and other Indications, Crimes committed by means of marks, titles of establishments 
and advertising Signs, and Crimes of Unfair Competition (Available at 
http://www.wi po.int/wipolex/en/details.jsp?id=515).  
Paragraph 2.3 (page 25)  
Brazil remains open to and encourages inward foreign direct investment (FDI) which is prevalent 
across the economy despite foreign ownership prohibitions (certain postal services and nuclear 
energy) or limitations in certain sectors (e.g. air transport, financial institutions, health services, 
rural land acquisition, broadcasting and publishing media, fishing, mining and hydrocarbons 
exploration). During the review period, FDI access to certain healthcare services was improved. 
Legally registered domestic and foreign companies compete on an equal footing when bidding on 
contracts or seeking tax and non -tax incentives. To address the legal loopholes existing in bilateral 
investment protection trea ties, a new model of investment agreements built upon UNCTAD and 
OECD guidelines was used to negotiate and sign a series of treaties whose ratification is under 
way. 
Question  Could Brazil further explain the extent of foreign ownership prohibitions or limi tations in 
services sector?  
Market access conditions and FDI restrictions are as follows: foreign banks are allowed to establish 
only subsidiaries; those directly responsible for the administration of the financial institutions must 
be Brazilian residents. Direct branching by foreign  banks is not allowed. The establishment of new 
subsidiaries of foreign financial institutions and the increase in participation of foreign individuals 
or legal entities in the equity of national financial institutions remain subject to authorization by 
Presidential Decree, once the prudential and regulatory requirements are assessed by the Central 
Bank of Brazil. Those requirements are non -discriminatory. Residency requirements also apply to 
foreigners seating on the boards of such institutions.  
In the hea lthcare services sector, Law 13.097 of 2015 altered Law 8080/1990, allowing the direct 
or indirect participation of foreign capital in health assistance in Brazil, in the following cases: 
(i) donations of international bodies linked to the United Nations, of technical cooperation and 
funding organizations; (ii) legal entities intended to install, operate and exploit: general hospitals, 
including philanthropic, specialized hospitals, polyclinics, general clinics and specialized clinics; and 
actions and resea rches related to family planning; (iii) health services maintained, non for profit, 
by companies, for healthcare services for their employees and dependents, at no cost to the social 
security; and (iv) other cases that may be regulated under specific legis lation.  
The new legislation also added the Article 53 -A to the Law 8080/1990 allowing foreign investments 
in activities that support health assistance, such as laboratories of human genetics, production and 
supply of pharmaceutical and other products for health sector, and laboratories for clinic analysis 
and diagnostic imaging. Therefore, all healthcare services are open to foreign investments, except 
in specific cases in which all commercialization is prohibited, for both national and foreign WT/TPR/M/358/Add.1  
 
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  investors, such as the prohibition of commercial activity of blood and blood products, organs, 
tissues and cells and the prohibition of the export of blood and blood products.   
In the media sector, including television networks, magazines, newspapers and radio broadc asting 
stations, legislation stipulates that at least 70% of the total capital of media companies must be 
owned directly or indirectly by Brazilians born in Brazil or naturalized for more than ten years. This 
restriction does not apply to cable TV and news  services delivered through Internet.  
Regarding the Financial Services Sector, market access conditions and FDI restrictions in financial 
activities remain unchanged: Foreign banks are allowed to establish only subsidiaries; those 
directly responsible for the administration of the financial institutions must be Brazilian residents; 
Direct branching by foreign banks is not allowed; The establishment of new subsidiaries of foreign 
financial institutions and the increase in participation of foreign individuals  or legal entities in the 
equity of national financial institutions remain subject to authorization by Presidential Decree that 
so far has been granted to nearly all applications; The President of the Republic grants 
authorization upon CMN (National Moneta ry Council) recommendation, which is contingent upon 
Central Bank recommendation.  
FDI in Brasil doesn't required prior official authorization and it occurs in a non -discriminatory basis. 
Legal restrictions regarding foreign capital participation or control  apply in some specific sectors.  
Paragraph 3.153 (page 77)  
The prerequisites for the importation of products of animal (including aquatic animal) origin into 
Brazil that include:  recognition of the exporting country's sanitary inspection systems as equival ent 
to Brazil's;  accreditation of the exporting establishments; and  approval of each establishment's 
products and labels. Each shipment to Brazil must be accompanied by a sanitary certificate issued 
by the exporting country's competent authorities, and car ry approved labels or stamps. All imports 
of animal products and their sub -products are physically inspected at the port of entry, with 
samples taken for laboratory testing whenever necessary.  
Concern  To date, Malaysia is still unable to export seafood to Brazil Malaysia's Ministry of Health 
(Food Safety and Quality Division) informed that in order to export, representative from Brazil's 
MAPA will need to inspect the facilities in Malaysia to ensure compliance with Brazilian sanitary 
requirements. While Mal aysia has provided feedback to MAPA's questionnaires back in 2012, 
Malaysia seeks if the process in place could be facilitated by the Government of Brazil to enable 
Malaysia in meeting Brazil's SPS requirements for seafood exports and to proactively recomm end 
the way forward in expediting the process.  
The matte r is still under consideration.  
Ordinance ('Portaria') No. 126, issued on November 11, 2016, sets deadlines for some procedures 
related to recognition of equivalence of sanitary inspection systems of foreign countries and 
habilitation of plants interested in exporting to Brazil. However, there is no deadline for the whole 
equivalence procedure.   
  WT/TPR/M/358/Add.1  
 
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  MEXICO  
PARTE I: PREGUNTAS EN RELACIÓN CON EL INFORME DE LA SECRETARÍA DE LA OMC 
(WT/TPR/S/358 ) 
RESUMEN  
Página 10, (párrafo 15, en relación con el párrafo 3.135)  
El marco jurídico e institucional del Brasil relativo a la aplicación y administración del Acuerdo 
sobre Obstáculos Técnicos al Comercio (Acuerdo OTC) apenas varió durante el período objeto de 
exame n. El enfoque del Brasil para aceptar la equivalencia se sigue basando en la aceptación de 
los resultados de las pruebas, sin un reconocimiento expreso de los reglamentos técnicos 
extranjeros. La mayoría de los reglamentos técnicos del Brasil se establecen  sobre la base de 
normas internacionales o del MERCOSUR; cuando no es así, se establecen de acuerdo con criterios 
basados en resultados. Si se considera que una propuesta de reglamento técnico tiene efectos 
sobre el comercio, se hace llegar a la OMC para q ue los Miembros formulen observaciones al 
respecto; durante el período objeto de examen, la mayoría de las notificaciones de propuestas de 
este tipo se efectuaron menos de 60 días antes de su entrada en vigor.  
1. ¿En qué consisten los criterios basados en res ultados de los reglamentos técnicos de Brasil que 
no derivan de normas internacionales ni del MERCOSUR?  
The definition of reference criteria for a particular technical regulation generally follows 
recommended good regulatory practices, through the adoptio n of, in order of preference, 
international, regional, national and foreign standards, followed by standards of other countries' 
associations. The regulatory authority has, however, the prerogative of defining additional or 
complementary criteria for techn ical characteristics of materials, final products and services, with 
regard to aspects related to security, prevention of deceptive trade practices, protection of human, 
animal and vegetal life and health, and the environment. This usually occurs when, aft er analysis 
of the normative base, no related international or Mercosur standard is identified, or it is 
considered partially or totally inadequate or even it does fulfill the purposes intended by the 
regulatory measure.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES , POR MEDIDAS; 3.1 Medidas que afectan 
directamente a las importaciones; 3.1.4 Otras cargas que afectan a las importaciones:  
Página 61 (párrafo 3.37)  
El régimen tributario interno del Brasil sigue siendo excesivamente complejo, en particular por lo 
que res pecta al trato de los bienes y servicios importados. Las transacciones internas y 
transfronterizas están sujetas a varios gravámenes federales y subfederales, como los siguientes: 
el impuesto sobre los productos industriales (IPI); el impuesto sobre la cir culación de mercancías y 
la prestación de servicios (ICMS); las contribuciones al Programa de Integración Social (PIS) y a la 
financiación de la seguridad social (COFINS); y el impuesto sobre los servicios (ISS). No es raro 
que esos impuestos sean objeto d e acumulación cruzada a efectos de la determinación de la base 
imponible. Además, su aplicación suele variar según el tipo de producto, la autoridad subfederal 
competente y la condición fiscal del importador.  
2. ¿De qué manera se asegura Brasil que sus autori dades locales no contravengan sus 
compromisos en materia de trato nacional con respecto a las mercancías importadas ? 
The Foreign Trade Board (CAMEX) and Casa Civil are the government bodies in charge of 
reviewing any legislative proposals related to trade and are responsable for making sure that any 
legislation in Brazil are consistent with the WTO agreements and other international obligations . 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan 
directamente a las importaciones; 3.1.6  Medidas antidumping, compensatorias y de 
salvaguardia:  
Página 67 (párrafo 3.55)  WT/TPR/M/358/Add.1  
 
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  En virtud del Decreto Nº  8.058, que está en vigor desde octubre de  2013, se introdujeron nuevos 
procedimientos administrativos para la investigación y aplicación de medidas an tidumping.7 
Además, la SECEX promulgó varias órdenes de aplicación en relación con: la presentación de 
documentos al DECOM; las ofertas sobre compromisos en materia de precios; las solicitudes de 
iniciación de una investigación de medidas antidumping; las solicitudes de examen de medidas 
antielusión; las solicitudes de examen por extinción; y la evaluación del ámbito de aplicación.8 Se 
han aclarado algunas definiciones y revisado diversos plazos (generalmente a la baja); entre las 
consiguientes innovaciones  en materia de procedimiento cabe citar las siguientes:  
 la obligatoriedad de las determinaciones preliminares;  
 la recomendación obligatoria de que se imponga el derecho menor a las empresas que 
cooperan plenamente en las investigaciones iniciales;  
 un métod o para determinar el precio de exportación cuando el exportador y el importador son 
partes vinculadas;  
 mejoras en la definición de "rama de producción nacional" (por ejemplo, la posible exclusión 
de las partes vinculadas con productores extranjeros y la su bdivisión geográfica del territorio 
brasileño);  
 establecimiento de un umbral de representatividad de la rama de producción nacional del 25% 
(o inferior cuando esté fragmentada) para la aceptación de las solicitudes de iniciación de una 
investigación antidu mping (anteriormente era del 50%);  
 aclaraciones sobre el cálculo de los márgenes individuales de dumping para los nuevos 
productores/exportadores;  
 aplicación retroactiva de derechos antidumping; y  
 formalización de los procedimientos de investigación in situ. 
3. Al respecto de la recomendación obligatoria de que se imponga el derecho menor a las 
empresas que cooperan plenamente en las investigaciones iniciales, ¿podría Brasil aclarar si lo 
que es obligatorio es emitir la recomendación, o bien, aplicar un derecho inferior al margen a 
quienes cooperen plenamente?  
As provided for in paragraph 1 of Article 78 of Decree No. 8,058, of 2013, in AD investigations 
conducted in Brazil, it is mandatory for the investigating authority to propose the application of the  
lesser duty, except in the cases listed under paragraph 3 of the aforementioned Article, where the 
amount of the anti -dumping duty shall correspond exactly to the margin of dumping (producers or 
exporters whose margin of dumping was calculated on the basi s of the best information available 
or whose anti -dumping duty was imposed pursuant to article 80; in affirmative re -determinations 
and in cases of review by virtue of changes in circumstances, of new producers or exporters; or 
anti-circumvention, provided  the anti -dumping duty in force was imposed on the basis of the 
margin of dumping).  Nevertheless, under special circumstances, the Chamber of Foreign Trade 
(CAMEX) may, for reasons of public interest, diverge from the recommendation of the investigating 
authority (Article 3 of Decree No. 8,058, of 2013).  
4. ¿Podría darse el caso de que se aplique un derecho inferior al margen de dumping a empresas 
que no cooperaron plenamente? En ese sentido, ¿qué sucedería si ninguno de los exportadores 
coopera plenamente? ¿p odría aplicarse un derecho inferior al margen a algunos de ellos? 
¿sobre qué base?  
If such non -cooperation results in the calculation of the dumping margin on the basis of the best 
information available, then, as provided for in subparagraph I of paragraph  3 of Article 78 of 
                                                
7 Documento G/LIC/N/1/BRA/3/Corr.1 de la OMC, de 27 de septiembre de  2013.  
8 Órdenes de la SECEX Nº  34 (10 de septiembre de  2013), Nº  36 (19 de septiembre  de 2013), Nº  41 
(11 de octubre de  2013), Nº  42 (17 de octubre de  2013), Nº  44 (29 de octubre de  2013), y Nº  42 (14 de 
septiembre de  2016), que sustituye a la Orden Nº  37 (18 de septiembre de  2013).  WT/TPR/M/358/Add.1  
 
- 168 - 
 
  Decree No. 8,058, of 2013, the duty to be applied on imports of such companies shall not be the 
lesser duty. However, in exceptional circumstances in which the Chamber of Foreign Trade's 
(CAMEX) decision is based on the public interest analysis established in Article 3 of Decree No 
8058, of 2013, the duty applied to non -cooperating parties may also be lower than the one 
recommended by the investigating authority.  
5. En relación con el método para calcular el precio de exportación cuando el  importador y el 
exportador están vinculados, ¿podría dar una breve explicación sobre en qué consiste?  
As provided for in subparagraphs I and II of Article 21 of Decree No. 8,058, of 2013, in cases 
where it appears that the export price is unreliable due t o an association or relationship or a 
compensatory arrangement between the exporter or the producer and the importer or a third 
party, the export price may be constructed using either the price at which imported products have 
been resold for the first time  to an independent buyer or a reasonable basis, in the case of 
products that are not to be resold to independent buyers, or not to be resold in the same condition 
as when they were imported.  
6. Acerca del cálculo de los márgenes individuales de dumping para n uevos 
productores/exportadores, ¿podría aclarar si es necesario que hayan realizado exportaciones 
por un determinado volumen o valor, para poder calcularles el margen correspondiente? En 
caso de que así sea, ¿podría explicar cómo se determina ese volumen o  valor requerido? En 
caso de que sea obligatorio tener un determinado nivel de exportaciones, ¿qué sucede si el 
nuevo productor/exportador no cumple con ese umbral?  
It is necessary for the calculation of the dumping margin that the producer/exporter has ma de 
exports of substantial quantities of the product subject to the antidumping duty, as provided for in 
Articles 116 and 117 of Decree No. 8,058, of 2013. However, there is no specification in the 
Decree regarding minimum volume or value, which shall be as sessed by the investigating authority 
in a case by case analysis.  
According to Article 116 of Decree No. 8,058, of 2013, in the event of absence of Brazilian imports 
of the applicant's product in an amount sufficient to determine the individual margin of dumping, 
CAMEX may suspend the collection of the anti -dumping duty on imports of the product exported 
by the applicant, which are destined for final consumption in Brazil, within a non -extendable period 
of six (6) months from publication of the CAMEX notic e, and shall require security in the form of a 
cash deposit or bond equal to the amount of the suspended duties to be provided by the importers 
of the product exported by the applicant.  
Nevertheless, if after that period the amount of imports is not suffi cient to determine the margin of 
dumping DECOM shall reject the petition and CAMEX shall order the resumption of the collection of 
the anti -dumping duty and the conversion of the security provided.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.2 Medi das que afectan 
directamente a las exportaciones; 3.2.5 Financiación, seguro y garantías de las 
exportaciones  
7. ¿Podría Brasil indicar cuáles son las razones que considera son la causa del aumento en el 
número de medidas en vigor desde 2012?  
The increase or decrease in contingency measures does not depend solely on DECOM to the extent 
that the decision to submit a petition, as a rule, falls on the domestic industry. Brazil has never 
initiated an antidumping investigation ex officio. That said,  out of all investigations actually 
initiated by the Brazilian investigating authority (Departamento de Defesa Comercial – DECOM), 
about 42% do not result in the imposition of definitive measures.  
Nevertheless, two main causes can be mentioned for the inc rease in the number of measures in 
force since 2012. Firstly, the international crisis of 2008, which has had a substantial impact on 
the volume and patterns of international trade, including the retraction of certain trade flows, the 
decrease of demand an d the redirection of production surpluses to potential recipient markets, 
such as Brazil, which, at the time, was still in a good overall economic situation. Another reason 
was the appreciation of the Brazilian currency, which contributed to the increase o f Brazilian WT/TPR/M/358/Add.1  
 
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  imports, and which, in this context of crisis, resulted in a greater demand for trade defense 
instruments by the Brazilian private sector. As a result, between 2011 and 2013, there was also an 
increase in the number of investigations initiated and of trade defense measures applied.  
Thus, although there is a downward trend in the number of petitions filed and in the number of 
investigations initiated since 2014, the average number of investigations initiated between 2012 
and 2016 has resulted in an increase in the stock of trade defense measures applied.  
A trend of reduction in the demand for trade defense measures has initiated in 2014, and the 
expectation is that, at the current pace of decline, lower levels of investigation and new trade 
defens e measures will be observed in the coming years.  
Página 68 (párrafo 3.58)  
El Brasil ha presentado regularmente informes semestrales sobre las medidas antidumping y 
compensatorias a los comités competentes de la OMC. Pese a la tendencia descendente de las 
investigaciones iniciadas durante el período objeto de examen, la incidencia de las medidas 
comerciales correctivas del Brasil, sobre todo de las medidas antidumping, casi se duplicó 
(cuadro  3.7). A finales de diciembre de  2016 había 161 medidas antidumpin g definitivas (incluidos 
seis compromisos en materia de precios) en vigor en el país, frente a 87 medidas (incluidos cinco 
compromisos en materia de precios) en 2012.9 Durante este período, el Brasil inició cuatro 
investigaciones en materia de derechos com pensatorios, una de las cuales (importaciones de 
película de PET procedentes de la India) dio lugar a la imposición de derechos definitivos.10 No se 
iniciaron investigaciones en materia de salvaguardias y no se impusieron medidas de salvaguardia 
en el Brasi l entre enero de  2013 y enero de  2016. A finales de  2016, 44 medidas comerciales 
correctivas llevaban más de cinco años en vigor en el Brasil. Según las autoridades, la proporción 
de las importaciones totales de mercancías del Brasil afectadas por medidas comerciales 
correctivas  
8. ¿Podría Brasil indicar si realiza o tiene planeado realizar acciones para obtener información 
sobre las ayudas subfederales a la exportación?  
There are no sub -federal programs that need notification under Article 25 of the ASCM.  
Página 75 (párrafo 3.88)  
El Comité de Financiación y Garantía de las Exportaciones (COFIG) de la CAMEX sigue ocupándose 
de establecer los parámetros y condiciones para la prestación de asistencia financiera federal a las 
exportaciones brasileñas; supervisar las operaciones del Programa de Financiación de las 
Exportaciones (PROEX) y el Fondo de Garantía de las Exportaciones (FGE); y orientar la 
participación del Gobierno Federal en el Fondo de Financiación de las Exportaciones (FFEX).11 El 
Banco de Desarrollo d el Brasil (BNDES) sigue administrando varios programas de crédito a la 
exportación financiados con fondos federales en el marco del programa BNDES -EXIM. Por lo 
general, las exportaciones brasileñas reciben financiación federal independientemente de la 
propiedad del exportador. No se disponía de información sobre las ayudas subfederales a la 
exportación.  
Pregunta 9: 
9. ¿Podría Brasil indicar si realiza o tiene planeado realizar acciones para obtener información 
sobre las ayudas subfederales a la exportación? (SAIN -MF, SE -CAMEX, DDF -MRE)  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3.7 Derechos de propiedad 
intelectual; 3.3.7.3 Derecho de autor:  
Página 108 (párrafo 3.200)  
                                                
9 Documentos G/ADP/N/294/BRA y G/ADP/N/237/BRA de la OMC, de 24 de febrero de  2017 y 16 de 
abril de  2013, respectivamente.  
10 Documento G/SCM/N/305/BRA de la OMC, de 31 de agosto de  2016.  
11 Información en línea. Consultada en: http://www.sain.fazenda.gov.br/ assuntos/credito -e-garantia -as-
exportacoes/comite -de-financiamento -e-garantia -das-exportacoes [9 de enero de  2017].  WT/TPR/M/358/Add.1  
 
- 170 - 
 
  Durante el período objeto de examen, el Brasil actualizó su legislación en materia de gestión 
colectiva del derecho de autor y derechos conexos y creó la Comisión Permanente para la Mejora 
de la Gestión Colectiva (CPAGC).12 Este país también adoptó un marco de derechos civiles para 
Internet, que prevé la elaboración de leyes específicas p ara regular la responsabilidad por daños y 
perjuicios que se derive del contenido gestionado por terceros.13 
10. ¿Podría Brasil explicar cómo regula actualmente la responsabilidad por daños y perjuicios que 
se derive del contenido gestionado por terceros en Int ernet?  
Articles 18 to 21 of the Civil Rights Framework for the Internet deal with the liability of Internet 
service providers (ISPs) for third parties' infringing content. The general rule is that the Internet 
service provider will not be deemed liable for user -generated content. Nevertheless, according to 
article 19, infringements regarding copyright and related rights must be subject to new legal 
provisions. Therefore, the government of Brazil must discuss a new legislation concerning liability 
of ISPs  in copyright infringements committed by thirds parties. The rules of the current Copyright 
Act must be applied until there is a specific regulation. The Copyright Act does not have specific 
provisions on ISPs' liability. However, judicial authorities may order the suspension of the 
transmission or the communication to the public of infringing content.  
4 POLÍTICAS COMERCIALES, POR SECTORES; 4.4 Servicios; 4.4.3 Servicios financieros; 
4.4.3.1 Servicios bancarios y financieros; Marco institucional:  
Página 160  (párrafo 4.119, nota al pie 189 ) 
Las instituciones y sistemas de pago están supervisadas por el Banco Central del Brasil desde que 
se promulgó la Ley  Nº 12.865, de 9 de octubre de  2013. Actúan en el ámbito de la intermediación 
en los pagos, que abarca las  tarjetas de prepago, el dinero electrónico y la acreditación de 
clientes.  
El párrafo y la nota al pie establecen que el Banco Central de Brasil supervisa los sistemas de 
pagos, desde que se promulgó la Ley Nº 12.865, de 9 de octubre de 2013. Asimismo, señ alan que 
el Banco Central actúa en el ámbito de la intermediación en los pagos, que abarca las tarjetas de 
prepago, el dinero electrónico y la acreditación de clientes.  
Preguntas 10 y 11:  
11. ¿Además de los instrumentos mencionados en la nota al pie de página,  el sistema de pagos 
electrónicos de Brasil está constituido por otros instrumentos; tales como: cheques; órdenes 
de transferencia de fondos, incluyendo el servicio conocido como domiciliación de pagos u 
otros?  
Yes, they are included, even if the checks ar e not considered electronic payments.  
12. ¿Las instituciones podrán emitir tarjetas prepagadas bancarias en moneda extranjera?  
Yes, they can. And regarding the issuance of prepaid cards in foreign currency by payment 
institutions, the specific regulation [1] of Law 12,865, of October 9, 2013, covered only resources 
denominated in BRL. The issuance of prepaid cards in foreign curre ncy is not among the activities 
currently authorized to payment institutions.  
In Brazil, operations of charging or discharging of prepaid cards in foreign currency are considered 
foreign exchange transactions, hence only institutions authorized to operate  in the foreign 
exchange market [2], subject its specific legislation and regulation [3], are allowed to do so . 
[1] Circular 3,680, of 11/4/2013 (available only in Portuguese) 
http://www.bcb.gov.br/pre/normativos/busca/normativo.asp?tipo= Circular&data=2013 &numero=
3680.  
                                                
12 Ley Nº  12.853, de 14 de agosto de  2013, Decreto Nº  8.469, de  22 de junio de  2015, y Ordenanza 
Nº 53, de  7 de julio de  2015.  
13 Ley Nº  12.96 5, de 23 de abril de  2014.  WT/TPR/M/358/Add.1  
 
- 171 - 
 
  [2] Banks, securities and stocks brokerage societies, securities and stock dealer's societies and 
foreign exchange brokerage societies.  
[3] Circular 3,691, of 12/16/2013 http://www.bcb.gov.br/rex/LegCE/Ingl/regulation.asp . 
4 POLÍTICAS COMERCIALES, POR SECTORES; 4.4 Servicios; 4.4.6.2 Comercio electrónico:  
Página 187, (párrafo 4.204)  
El Brasil no aplica normas de minimis  en virtud de las cuales se exima a las mercancías de un valor 
inferior a determinado umbral de los derechos de aduana y los impuestos. Prácticamente todas las 
compras electrónicas internacionales están sujetas a un impuesto uniforme/único de equiparación 
del 60% sobre el precio de compra, que cubre/compensa los derechos de aduana y otros 
impuestos/cargas internos aplicados a las importaciones. Los únicos productos exentos de estos 
requisitos fiscales son algunos medicamentos (previa presentación de la docu mentación 
estipulada) y libros o publicaciones periódicas. Se aplica una exención (la exclusión del ICMS) a los 
paquetes de un valor inferior o igual a 50 dólares EE.UU. enviados exclusivamente por una 
persona a otra que contengan artículos de uso personal  o regalos de un valor inferior, pero no a 
las transacciones comerciales. Se aplica un régimen fiscal simplificado a las mercancías cuyo valor 
no rebase 3.000 dólares EE.UU.   
13. ¿De qué manera Brasil se asegura que el impuesto uniforme/único de equiparación d el 60% 
sobre el precio de compra aplicable a las compras electrónicas internacionales no contravenga 
sus compromisos en términos del artículo II del GATT de 1994 y no discrimine entre productos 
similares comercializados por medios electrónicos y aquellos c omercializados de manera 
tradicional?  
The "Regime de Tributação Simplificada - RTS" or Simplified Taxation Regime, under which the 
60% rate applies, is non -obligatory for the taxpayer. Therefore, in the unlikely case where the 
abovementioned rate is highe r than the sum of the rates due according to the commitments made 
by Brazil under the GATT, the taxpayer can always choose the rules of the standard regime of 
taxation for goods purchased abroad and pay all taxes separately.  
PARTE II: PREGUNTAS EN RELACIÓN  CON EL INFORME DEL GOBIERNO 
(WT/TPR/G/358)  
2 ENTORNO ECONÓMICO GENERAL; 2.2 Marco jurídico y reglamentario general; 2.2.2 
Sistema financiero:  
Página 8 (párrafo 2.21 ) 
La Ley 12.865, de octubre de 2013, otorgó al Banco Central del Brasil nuevas atribuciones  para 
reglamentar y supervisar los sistemas de pago, como las tarjetas de pago, los emisores de dinero 
electrónico, los compradores y las entidades de tarjetas de crédito. En 2016, el Banco Central del 
Brasil reforzó sus medidas para alcanzar los objetivos  de logar un acceso no discriminatorio a los 
servicios de pago y a las infraestructuras del mercado, promover la competencia, la inclusión 
financiera, la innovación y la interoperabilidad del Sistema de Pagos del Brasil, teniendo en cuenta 
su importancia p ara la solidez y el funcionamiento normal del sistema financiero brasileño. Ello 
consistió en parte en conversaciones detalladas con las distintas partes interesadas en los distintos 
sistemas de pagos brasileños en busca de soluciones por conducto de grupo s de trabajo 
específicos.  
Se indica que en 2016, el Banco Central del Brasil reforzó sus medidas para alcanzar los objetivos 
de logar un acceso no discriminatorio a los servicios de pago y a las infraestructuras del mercado, 
promover la competencia, la inclusión financiera, la innovación y la interoperabilidad del Sistema 
de Pagos del Brasil, teniendo en cuenta su importancia para la solidez y el funcionamiento normal 
del sistema financiero brasileño. Se señala que ello consistió en parte en conversacion es detalladas 
con las distintas partes interesadas en los distintos sistemas de pagos brasileños en busca de 
soluciones por conducto de grupos de trabajo específicos.   
14. ¿Qué otras medidas fueron reforzadas y si ha habido una modificación a la legislación vi gente 
de los sistemas de pagos electrónicos?  WT/TPR/M/358/Add.1  
 
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  The 2016 information refers mainly to the changes in the Brazilian retail system. Circular BCB No. 
3,815, as of 2016, established deadlines for the centralized clearing and settlement, and for the 
end of partici pation exclusivity in some schemes, thus providing a level playing field between 
schemes' participants.  
15. ¿Cuál es el papel de Banco Central de Brasil frente a los sistemas de pago, además de 
supervisar y reglamentar los sistemas?  
Also authorizing. Please r efer to the following document at BCB website "The role of the Banco 
Central do Brasil (BCB)": 
http://www.bcb.gov.br/Pom/Spb/Ing/InstitucionalAspects/TheRol eCentralBankBrazil.asp . 
16. ¿El Banco Central ha adoptado principios o directrices internacionales para propiciar que los 
sistemas de pago sean seguro s y eficientes?  
Please refer to the following document at BCB website "Policy Statement on the adoption, by t he 
Department of Banking Operations and Payments System, of the Principles for Financial Market 
Infrastructures for the oversight activities of the Brazilian Payments System: 
http://www.bcb.gov.br/pom/spb/ing/Comunique_DEBAN_25097_en.pdf  
17. ¿El Banco Central de Brasil publica periódicamente una lista de los sistemas de pagos (aquellos 
que sean sistémicamente importantes)?  
The list of Brazilian payments systems is listed on page 7 of  the document referenced below: 
http://www.bcb.gov.br/Pom/Spb/Ing/Brazilian%20Payments%20System%20Oversight%20Report
%202015.pdf . 
The same information can be found at "Policy Statement on systems operating in the Brazilian 
Payments System": http://www.bcb.gov.br/pom/Spb/Ing/Policystatement30516.pdf   
Circular 3,057, of August 31st, 2001, sets out criteria for qualifying a system as systemically 
important. Considering the criteria applicable specifically to funds transfer systems, Sitraf, Siloc, 
Compe, Cielo, and Rede were not systemically important in 2015. The  Circular classifies every 
system that clears and settles securities as systemically important.  
3 EVOLUCIÓN DE LA POLÍTICA COMERCIAL (2013 -2016); 3.3 Acuerdos preferenciales; 
3.3.1 MERCOSUR:  
Página 19 (párrafo 3.23 ) 
El Protocolo de Cooperación y Facilitaci ón de Inversiones (Decisión 03/17 del CMC), firmado en 
abril de 2017, constituye un hito en la reglamentación de las inversiones en la región. Refleja el 
interés de la comunidad empresarial en reducir al mínimo los riesgos y evitar controversias 
relacionad as con las inversiones. También tiene por fin promover inversiones mutuas en la región 
a través de mecanismos intergubernamentales de diálogo, que apoyan a las empresas en el 
proceso de internacionalización. El Protocolo contendrá disposiciones sobre el au mento de la 
difusión de información sobre las oportunidades de negocios, el intercambio de información sobre 
los marcos reglamentarios y la creación de mecanismos apropiados para evitar y, en última 
instancia, resolver diferencias. Establece un sólido marc o para la inversión en todos los Estados 
miembros y se aplicará a las inversiones extranjeras directas realizadas antes o después de la 
entrada en vigor del Protocolo.  
18. ¿Podría Brasil indicar cuáles son las principales diferencias entre sus medidas de Facil itación de 
Inversiones (Decisión 03/17 del CMC y otros ordenamientos aplicables relacionados) y el Menú 
de Acciones para la Facilitación de las Inversiones de la Conferencia de las Naciones Unidas 
sobre Comercio y Desarrollo (UNCTAD, por sus siglas en ingl és: 
http://investmentpolicyhub.unctad.org/Blog/Index/51 )? 
The question refers to Decision 03/17 of the Common Market Council (CMC) of MERCOSUR, which 
establishes the Protocol on Cooperation and Facilitation of Investments (PCFI). The PCFI 
constitutes a new  legal framework for the promotion of investments and provides legal protection WT/TPR/M/358/Add.1  
 
- 173 - 
 
  for investors and investments, through the adoption of the principle of non -discrimination, 
mandatory compensation in cases of expropriation of assets, as well as the freedom o f transfers of 
financial assets abroad. The PCFI innovates by establishing cooperation between MERCOSUR 
members and their continued practical support to investors as key elements of investment 
promotion.  
In a brief comparison with the UNCTAD Discussion No te "Investment Facilitation and Promotion: A 
Global Action Menu", it is possible to identify common points between the PCFI and the action lines 
proposed by the document, especially in relation to "Part A: Investment Facilitation Actions". It is 
also possi ble to note certain differences in scope.   
Firstly, the PCFI provides a set of measures that reduce the investor's exposure to risk and 
establishes a framework for the treatment of investors and their investments, in line with "Action 
line 2: Enhance predi ctability and consistency in the application of investment policies". The PCFI 
establishes guarantees of non -discrimination (national treatment and most favored nation 
treatment clauses), transparency clauses and specific conditions for cases of direct exp ropriation, 
compensation in case of conflicts and guarantees for international transfers, which are initiatives 
that reflect "Action line 1: Promote accessibility and transparency in the formulation of investment 
policies and regulations and procedures rel evant to investors". The main difference, in this context, 
is that the PCFI establishes an exclusive State -to-State mechanism of dispute prevention and 
solution.  
Secondly, the PCFI proposes the establishment of focal points or "ombudsmen" in each Party an d 
the creation of a Joint Committee. It provides for an institutional framework which reflects the 
propositions of "Action line 3: Improve the efficiency and effectiveness of investment 
administrative procedures", "Action line 4: Build constructive stakeho lder relationships", "Action 
line 5: Designate a lead agency or investment ombudsperson/facilitator with a mandate", and 
"Action line 6: Establish monitoring and review mechanisms for investment facilitation". It is 
important to note that the Ombudsmen and  the Joint Committee form the institutional core of the 
Protocol, as they contribute to the fulfillment of the commitments made and to strengthen the 
dialogue between the Parties with regard to investments and appropriate assistance to investors.  
Thirdly the PCFI provides for the establishment of investment facilitation and cooperation agendas 
in areas that may improve the investment environment, thus reflecting the contents of "Action line 
7: Enhance international cooperation for investment facilitation, including through provisions in 
IIAs". The agenda may vary depending on the possibilities and challenges of the bilateral  
investment relationship between MERCOSUR member countries.  
Another difference between the PCFI and the UNCTAD document is that the former is a 
consolidated piece of International Law that regulates investment relations among developing 
countries. In this sense, it can contribute to the discussion of actions set in "Part B" of the latter 
document.  
3 EVOLUCIÓN DE LA POLÍTICA COMERCIAL ( 2013 -2016); 3.3 Acuerdos preferenciales; 
3.3.4 Sistema global de preferencias comerciales:  
Página 20, párrafo 3.34:  
El Brasil, al igual que otros 42 países en desarrollo, es miembro del Sistema Global de Preferencias 
Comerciales entre Países en Desarrollo (SGPC). Teniendo en cuenta el fuerte aumento del 
comercio Sur -Sur en los últimos años, el SGPC ha adquirido importancia como instrumento 
apropiado para seguir promoviendo y profundizando el comercio entre esos países. Por esa razón, 
el Brasil fomentó activ amente la iniciación de una tercera ronda de negociaciones del SGPC, que 
tuvo lugar en São Paulo en junio de 2004, durante la UNCTAD XI.  
19. ¿Podría Brasil indicar a qué países en desarrollo del Sistema Global de Preferencias 
Comerciales entre Países en Desarr ollo (SGPC) otorga preferencias?  
Brazil grants preference to all the countries that have ratified/acceded to the Agreement: Algeria, 
Argentina, Bangladesh, Benin, Bolivia, Cameroon, Chile, Colombia, Cuba, Democratic People´s 
Republic of Korea, Ecuador, Egy pt, Ghana, Guinea, Guyana, India, Indonesia, Iran, Iraq, Libya, WT/TPR/M/358/Add.1  
 
- 174 - 
 
  Malaysia, Mexico, Morocco, Mozambique, Myanmar, Nicaragua, Nigeria, Pakistan, Peru, Philippines, 
Republic of Korea, Romania, Singapore, Sri Lanka, Sudan, Thailand, Trinidad and Tobago, Tunisia , 
Tanzania, Venezuela, Viet Nam and Zimbabwe.  
Information about Global System of Trade Preferences can be found in the website of the Ministry 
of Industry, Foreign Trade and Services, at http://www.mdic.gov.br/index.php/comercio -
exterior/negociacoes -intern acionais/808 -sgpc-sistema -global -de-preferencias -comerciais  
20. ¿Podría Brasil indicar si existe alguna página de Internet en donde los comerciantes de los 
países beneficiarios puedan obtener información sobre las normas de origen, funcionamiento y 
operación d el SGPC?  
Informamos que en la página web del Ministerio de Industria, Comercio Exterior e Servicios está 
disponible el "Decreto Nº 194, de 21/08/1991", que promulga el SGPC, y donde se pude encontrar 
las normas de origen del Acuerdo. http://www.mdic.gov.br/index.php/comercio -
exterior/negociacoes -internacionais/808 -sgpc-sistema -global -de-preferencias -comerciais.  
4 MARCO INSTITUCIONAL Y REGLAMENTARIO DEL COMERCIO; 4.1 Cuestiones 
transversales; 4.1.6 Medidas comerciales correctivas:  
Págin a 27 (párrafo 4.35)  
En 2012, en virtud de la Resolución Nº 13 de 29 de febrero de 2012, la CAMEX estableció un 
Grupo Técnico de Evaluación del Interés Público (GTIP). El GTIP se encarga de examinar la 
suspensión o modificación de medidas antidumping y comp ensatorias definitivas, así como las 
dispensas en la aplicación de medidas antidumping y compensatorias  provisionales por motivos de 
interés público. La Resolución Nº 13 fue modificada por la Resolución Nº 27, de 29 de abril 
de 2015, y la Resolución Nº 30,  de 31 de marzo de 2016. La Resolución Nº 27 establece 
procedimientos para el funcionamiento del GTIP. Dispone que las solicitudes de suspender o 
modificar medidas deben presentarse a la Secretaría de Relaciones Exteriores del Ministerio de 
Hacienda, que a ctúa como secretaría del GTIP de conformidad con la Resolución Nº 30, y debe 
basarse en elementos de hecho y de derecho. Además, cualquier miembro del GTIP u otros 
órganos de la administración federal puede solicitar al GTIP una evaluación de cualesquiera 
medidas definitivas o investigaciones en curso. El GTIP dispone de seis meses para presentar sus 
conclusiones a la CAMEX, plazo que puede prorrogarse por otros seis meses solo una vez. No 
obstante, en el caso de una investigación en curso, el GTIP no prese ntará sus conclusiones a 
la CAMEX hasta que se haya presentado a dicho organismo una recomendación final sobre la 
aplicación de medidas  provisionales o definitivas. El GTIP debe consignar en sus actas el 
fundamento y los motivos de su decisión. Desde la cr eación del GTIP se iniciaron 15 casos, cuyos 
resultados se indican más abajo:  
 Medidas suspendidas  por 
motivos de interés público  Medidas aplicadas en una cuantía no conforme  con las 
recomendaciones del DECOM por motivos de interés 
público  
2013 6 0 
2014 1 1 
2015 3 3 
2016 0 1 
21. Al respecto de las medidas indicadas en el cuadro anterior, ¿podría Brasil indicar, de manera 
general, las razones particulares por las que se suspendieron o se aplicaron en una cuantía no 
conforme con las recomendaciones del DECOM  por motivos de interés público?  
Desde 2012, se empezó a utilizar la nomenclatura interés público en caso de modificación, 
suspensión o extinción de medidas de defesa comercial en Brasil.  
Conforme el art. 3º, del Anexo la Resolución CAMEX nº 29, de 7 de ab ril de 2017, "Para fines de 
esta resolución, está presente el interés público, cuando el impacto de la imposición de la medida 
de defensa comercial sobre los agentes económicos como un todo se demostrar potencialmente 
más dañoso se comparado a los efectos positivos de la aplicación de la medida".  WT/TPR/M/358/Add.1  
 
- 175 - 
 
  De esta manera, las razones particulares para la aplicación de interés público en los casos 
existentes fueron, en primer lugar, el fin de la producción, y en seguida, la necesidad de se 
preservar la estabilidad de precios en el mercado interno, sea para las cadenas involucradas en la 
producción sea para los consumidores finales, especialmente los más pobres.  
PREGUNTAS ADICIONALE S 
PARTE I: PREGUNTAS EN RELACIÓN CON EL INFORME DE LA SECRETARÍA DE LA OMC 
(WT/TPR/S/358 ) 
2 REGÍMENES DE COMERCIO E INVERSIÓN; 2.6; Régimen de inversión extranjera; 
Promoción de las inversiones:  
Página 48, (párrafo 2.40)  
A fin de subsanar algunas carencias fundamentales en las lagunas jurídicas tradicionales de los 
tratados bilaterales sobre inversiones, se elaboró un nuevo modelo de acuerdo de inversión, el 
Acuerdo de Cooperación y Facilitación de las Inversiones  (CFIA). Este modelo se ajusta a las 
directrices de la CAMEX, la UNCTAD y la OCDE, se basa en la reducción de riesgos, la gobernanza 
institucional y las agendas temáticas, y empezó a utilizarse a partir del 16 de julio de  2013.14 El 
Brasil ha firmado CFIA con Mozamb ique (30  de marzo de  2015), Angola (1º de abril de  2015), 
México (26  de mayo de  2015), Malawi (25  de junio de  2015), Colombia (9  de octubre de  2015), 
Chile (23 de noviembre de  2015) y el Perú (29 de abril de  2016). No obstante, dado que estos 
acuerdos está n pendientes de la aprobación del Congreso, todavía no están en vigor. Al 
1º de enero de  2017, los CFIA con Angola, Malawi y Mozambique habían sido aprobados por la 
Cámara de Diputados y estaba pendiente la aprobación del Senado; está previsto que la 
ratificación de esos acuerdos tenga lugar en el transcurso de  2017. Los demás acuerdos todavía 
están siendo examinados por el Congreso Nacional. Se están llevando a cabo más negociaciones 
de CFIA y se prevé la firma de al menos tres nuevos CFIA a principios de  2017 (con la India y con 
Jordania, por ejemplo). En abril de  2017 se firmó un Protocolo de Cooperación y Facilitación de 
Inversiones del MERCOSUR  (PCFI) y hay conversaciones exploratorias en curso con Etiopía, 
Marruecos, Sudáfrica, Tailandia, Túnez y la ex  República Yugoslava de Macedonia, países a los que 
el Brasil presentó su modelo de CFIA.  
Pregunta 21:  
21. Parece ser que el Informe de la Secretaría de la OMC no incluye la figura creada por Decreto 
por el gobierno brasileño de Ombudsman de Inversiones Di rectas (OID), en septiembre de 2016. 
¿Podría Brasil explicar el objetivo del OID y cómo se relaciona esta figura con los Acuerdos de 
Cooperación y Facilitación de las Inversiones?  
Under the CFIAs, each partner state must create a centralized mechanism (Ombudsman or Focal 
Point) to receive investors' queries and demands. The Ombudsman analyzes the demands and 
questions posed and, coordinating with the governmental entities related to  the issue through 
expedited proceedings, provides the investor with an answer or solution. The objective is that 
foreign investors have at their disposal effective means to overcome hardships and challenges 
faced to make and maintain the investment and to  foster a good business environment. Brazil's 
Ombudsman was established within the Chamber of Foreign Trade (CAMEX), an inter -ministerial 
body responsible for formulating, adopting and coordinating trade and investment policies.  
3 POLÍTICAS Y PRÁCTICAS COM ERCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente 
a las importaciones; 3.1.1 Procedimientos y requisitos aduaneros y valoración en aduana:  
Páginas 51 y 52 (párrafo 3.8)  
En 2014, el Brasil estableció un programa de operadores económicos autorizados, que reemplazó 
al anterior régimen de "línea azul" de despacho urgente.15 La participación en el programa de 
                                                
14 Información en línea del MDIC. Consultado en: http://www.mdic.gov.br/comercio -
exterior/negociacoes -internacionais/9 -assuntos/categ -comercio -exterior/1565 -acordo -de-cooperacao -e-
facilitacao -de-investimentos.  
15 Instrucción Normativa Nº  1.521 de la RFB, de 4 de diciembre de  2014, sustituida por la Instrucción 
Normativa Nº  1.598 de la RFB, de 9 de diciembre de  2015.  WT/TPR/M/358/Add.1  
 
- 176 - 
 
  operadores económicos autorizados es voluntaria y está abierta a todos los participantes en la 
cadena de suministro internacional que re alicen operaciones de bajo riesgo, tanto por lo que se 
refiere a la seguridad física de su carga como al cumplimiento de las prescripciones aduaneras. 
Dependiendo del tipo de certificación de operador económico autorizado, los participantes en el 
programa pueden recibir los siguientes beneficios: un canal de comunicación exclusivo con la RFB; 
una frecuencia menor de inspecciones documentales y físicas de las importaciones/exportaciones; 
el despacho acelerado en los puertos de entrada; un plazo de 40 días pa ra la tramitación de 
resoluciones anticipadas; y una simplificación de la acreditación ( habilitação ) para poder acceder a 
SISCOMEX y a regímenes y/o zonas aduaneras especiales. Al  31 de enero de  2017, la RFB había 
recibido 343 solicitudes de certificacione s de operador económico autorizado, de las cuales se 
aprobaron 95 y se denegaron 205. Las autoridades se han fijado el objetivo de que, para 2019, los 
operadores económicos autorizados representen el 50% de todas las declaraciones registradas de 
importació n y exportación.16 El Brasil ha concluido un acuerdo de reconocimiento mutuo sobre los 
programas de operadores económicos autorizados con el Uruguay y está elaborando programas de 
trabajo conjuntos con la Argentina y los Estados Unidos para ese fin. También  está celebrando 
conversaciones exploratorias sobre el reconocimiento mutuo de estos programas con varios 
interlocutores comerciales, como la Federación de Rusia, México y la República de Corea.  
Pregunta 22:  
22. ¿Además de los beneficios que la Secretaría de Ingresos Federales del Brasil (RFB) ofrece a los 
operadores económicos autorizados, qué facilidades se dan a los participantes en la cadena de 
suministro que no se han incorporado al programa de Operadores Económicos Autorizados?  
Para aquellos que no se  han incorporado al programa de OEA se les ofrece el tratamiento estándar 
en la aduana, que incluye, por ejemplo: informaciones disponibles por medio de Internet; 
consultas previas sobre normas nuevas o modificadas; resoluciones anticipadas; pago electróni co 
de tasas e impuestos; y regímenes aduaneros especiales.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan 
directamente a las importaciones; 3.1.1 Procedimientos y requisitos aduaneros y 
valoración en aduana:  
Páginas 53 y 54 (pár rafo 3.18)  
La proporción de declaraciones de importación correspondientes a productos despachados 
mediante el método del valor de transacción fue del 99,87% en 2013, el 99,89% en 2014, 
el 99,66% en 2015 y el 99,56% en 2016. Cuando es necesario, se recurre a métodos alternativos, 
siguiendo la jerarquía establecida en el Acuerdo sobre Valoración en Aduana. Las autoridades 
afirman que el Brasil no utiliza precios mínimos ni precios de referencia para determinar el valor de 
aduana de las mercancías importadas.  
Pregunta 23:  
23. El texto del informe señala que: "Las autoridades afirman que el Brasil no utiliza precios 
mínimos ni precios de referencia para determinar el valor de aduana de las mercancías 
importadas. " La Portaría SECEX 18 de 01/09/200817, art. 25, ref iere que el Departamento de 
Comercio Exterior sí llevará un seguimiento de los precios de importación. ¿Podría Brasil aclarar a 
qué se refiere seguimiento de los precios de importación?  
The Monitoring of prices carried out by DECEX aims, in particular, to verify situations in which 
there are significant errors in relation to documentation that protects importation from fraudulent 
intent or gross negligence, in compliance with the SECEX Ordinance nº 23/2011, and under art. 21 
and item 7 of the Agreement on I mport Licensing Procedures of the WTO.  
                                                
16 Información en línea de la RFB, consultada en: 
http://idg.receita.fazenda.gov.br/orientacao/aduan eira/importacao -e-exportacao/oea [8  de diciembre 
de 2016].  
 WT/TPR/M/358/Add.1  
 
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  3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan 
directamente a las importaciones; 3.1.2 Normas de origen:  
Página 54 (párrafo 3.19)  
El Brasil aplica normas de origen con fines no preferenciale s.18 Para ser considerados originarios, 
los productos deben haber sido totalmente obtenidos o haber sido objeto de una transformación 
sustancial (a raíz de la cual hayan pasado a clasificarse en una partida arancelaria de cuatro 
dígitos diferente) en el país de origen declarado. La SECEX puede realizar las verificaciones del 
origen no preferencial en la etapa de tramitación de la licencia de importación, sobre la base de la 
evaluación del riesgo. En 2015 se modificó el procedimiento de verificación con ob jeto, entre otras 
cosas, de reducir el plazo para realizar las investigaciones.19 Las declaraciones de origen falsas 
pueden dar lugar al rechazo de una solicitud de licencia de importación y a la denegación de 
licencias de ese tipo para mercancías similares  atribuidas al mismo exportador.  
Pregunta 24:  
24. El informe de la Secretaría indica que "Las declaraciones de origen falsas pueden dar lugar al 
rechazo de una solicitud de licencia de importación y a la denegación de licencias de ese tipo para 
mercancías  similares atribuidas al mismo exportador" ¿Podría Brasil aclarar si la medida 
mencionada se aplica tras la ocurrencia del primer caso de declaración falsa? ¿esta determinación 
es precedida de un procedimiento formal de verificación de origen? De ser el ca so, ¿Brasil está 
considerando flexibilizar la medida en aquellos casos en que se trate de errores u omisiones no 
relevantes?  
De acuerdo a la Portaria SECEX 38/2015, la conclusión sobre cualificación de origen de un 
productor/exportador impone la verificaci ón de origen no preferencial en plazo no superior a 150 
días; la eventual descalificación de origen genera efectos legales desde el primer caso observado. 
Las partes interesadas podrán demandar la revisión del resultado del procedimiento especial de 
verificación de origen no preferencial después de trascurrido un año de la publicación.  
La descalificación está basada apenas en aspectos materiales que comprometen la origen de la 
mercancía. Errores u omisiones no relevantes son desestimados en el análisis de l a Secretaria de 
Comercio Exterior.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan 
directamente a las importaciones; 3.1.2 Normas de origen:  
Página 54 (párrafos 3.21 y 3.22)  
La RFB verifica el cumplimiento de las normas de origen preferenciales y no preferenciales durante 
el despacho de aduana y en las auditorías posteriores al despacho.20 Las autoridades han indicado 
que la RFB publicará en breve un reglamento actualizado sobre la verificación del origen.21 El Brasil 
implementó el m ecanismo de presentación electrónica de la documentación justificativa a la RFB 
en diciembre de  2014 (sección  3.1.1), y en octubre de  2016 puso en marcha un proyecto piloto 
para el intercambio bilateral de certificados de origen con firma digital con la Ar gentina. Las 
autoridades tienen previsto aplicar en 2017 proyectos similares en el comercio bilateral con Chile y 
el Uruguay.  
Los productos importados sin una prueba del origen pueden ser objeto de una multa equivalente al 
30% de su valor en aduana; si est án sujetos a restricción cuantitativa, se prohíbe su entrada al 
territorio aduanero y puede aplicárseles una multa de 5.000 reales por día desde la fecha de 
registro de la declaración de importación hasta la fecha de su devolución efectiva al extranjero. E n 
caso de incumplimiento de las normas de origen preferenciales, se perciben los derechos de 
                                                
18 Documento G/RO/N/78 de la OMC, de 16 de abril de  2012.  
19 Orden Nº  38 de la SECEX, de 18 de mayo de  2015, por la que se revoca la Orden Nº  39 de la SECEX, 
de 11 de noviembre de  2011.  
20 Instrucció n Normativa Nº  149 de la SRF, de 27 de marzo de  2002.  
21 En enero de  2016 se celebraron consultas públicas sobre esta cuestión. Información en línea de la 
RFB, consultada en: http://idg.receita.fazenda.gov.br/sobre/consultas -publicas -e-editoriais/consulta -
publica/arquivos -e-imagens/consulta -publica -rfb-no-01-2016.pdf/view [4 de abril de  2017].  WT/TPR/M/358/Add.1  
 
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  importación pertinentes y se suspende el trato preferencial hasta que el exportador aporte una 
prueba satisfactoria de la conformidad del proceso de producción.  
Pregunta 25:  
25. ¿Existe en Brasil la posibilidad de solicitar trato preferencial de manera extemporánea para las 
mercancías importadas? ¿podría  Brasil describir el procedimiento y los plazos que se deben 
observar para la devolución de impuestos a la importación cuando las mercancías son objeto de 
trato arancelario preferencial?  
La posibilidad de solicitar trato preferencial de manera extemporánea  para mercancías importadas 
depende apenas de expresa previsión para eso en el acuerdo preferencial que se refiera. De la 
misma manera, el plazo máximo para demandarse la devolución del arancel pago sobre una 
mercancía a al cual sea aplicable el trato pref erencial.  
Como regla general, el plazo máximo para demandarse la devolución de impuestos pagos y no 
debidos es de cinco años contados del hecho generador del impuesto.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan 
directamente a  las importaciones; 3.1.4 Otras cargas que afectan a las importaciones:  
Página 63 (párrafo 3.43)  
En general, el ICMS se aplica sobre el valor de la transacción (incluido el costo del seguro y el 
flete) una vez deducidos los descuentos no sujetos a condicio nes. La base imponible de las 
importaciones la conforman el valor c.i.f., los derechos de importación, el IPI, el propio ICMS y 
cualquier otro impuesto y/o carga relacionada con la importación.22 En general, los tipos del ICMS 
son del 7 o el 12% en las tran sacciones interestatales; el tipo del 7% se aplica cuando el 
comprador está situado en un estado pobre (los de las regiones del norte, nordeste y centro oeste, 
y el Estado de Espírito Santo).23 Desde enero de  2013 se aplica un tipo uniforme del ICMS (4%) a 
las transferencias de créditos entre estados provenientes del ICMS aplicado a las mercancías 
importadas a través de un estado distinto del de destino final.24 Las transacciones intraestatales y 
las importaciones directas al estado de destino están sujetas a  tipos del ICMS del 19% (Río de 
Janeiro), el 18% (São Paulo, Paraná y Minas Gerais) o el 17% (restantes estados).  
Pregunta 26:  
La redacción del Subcapítulo 3.43 señala: "Desde enero de 2013 se aplica un tipo uniforme del 
ICMS (4%) a las transferencias de c réditos entre estados provenientes del ICMS aplicado a las 
mercancías importadas a través de un estado distinto del de destino final ". 
Sin embargo, México considera que el ICMS del 4% es aplicado a las transacciones entre estados 
de mercancías importadas, con similar nacional o con contenido importado mayor al 40%, y que la 
Resolución nº 13 del 25 de abril de 2012 establece un ICMS diferente para productos importados 
vs. domésticos, para operaciones interestatales de productos importados.  
26. ¿Podría Brasil  aclarar la manera en que se establecen los impuestos con base a la Resolución 
13, y la forma de su aplicación? En caso de que el ICMS se aplique de manera diferente para 
productos nacionales vs productos importados, ¿de qué forma Brasil cumple con las dis posiciones 
del Artículo III del GATT de 1994?  
No hay absolutamente ninguna discriminación entre bienes con contenido doméstico o importado 
en la aplicación del ICMS. La Resolución 13 del Senado de Brasil estableció directivas para el 
prorrateo del ICMS entre el estado brasileño donde se localiza en vendedor y el estado donde se 
localiza en comprador en una venta interestatal.  
                                                
22 Véase más información sobre la base imponible de las importaciones a efectos de la aplicación del 
ICMS en: http://www4.receita.fazenda.gov.br/simulador/glossario.htm l#ncm [18 de diciembre de  2016].  
23 La compensación posterior refleja las diferencias entre los tipos del ICMS de las jurisdicciones fiscales 
de salida y de destino.  
24 Resolución Nº  13 del Senado Federal, de 25 de abril de  2012.  WT/TPR/M/358/Add.1  
 
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  El total de ICMS imponible en una venta de un producto en el mercado nacional es siempre la 
misma, sin importar su contenido impor tado o nacional. El ICMS es un impuesto del tipo "sobre el 
valor agregado" y, en general, cerca de dos tercios del ICMS imponible en una operación de venta 
interestatal es recaudada por el estado de origen y un tercio por el estado de destino. A partir de 
la implementación de la Resolución 13, en enero de 2013, para productos importados o aquellos 
producidos con más de un 40% de contenido importado, solamente un 4% del ICMS debido se 
recauda por el estado de origen y el restante por el estado de destino. Es to significa que, en tales 
casos, alrededor de un 75% del total del ICMS aplicable sobre la venta de estos productos en el 
mercado doméstico se recauda el estado de destino.  
En resumen, el ICMS total recaudado en una venta de un producto en el mercado domé stico es 
siempre la misma, sin importar su contenido importado. Sin embargo, el prorrateo del impuesto 
entre dos estados distintos puede variar, dependiendo del contenido importado. 
Consecuentemente, para el comprador y el vendedor no hay cualquier efecto,  una vez que el 
prorrateo es hecho por las administraciones tributarias de los estados.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan 
directamente a las importaciones; 3.1.5 Prohibiciones, restricciones y licencias de 
importació n: 
Páginas 65 y 66 (párrafo 3.49)  
El Brasil mantiene un sistema de licencias automáticas y no automáticas para las importaciones de 
numerosos productos, independientemente de su origen.25 Las licencias de importación deben 
obtenerse antes del despacho de ad uana; por lo general, cuando se aplican prescripciones en 
materia de licencias no automáticas, se aconseja a los importadores que obtengan la licencia antes 
del envío de las mercancías. Las solicitudes para ambos tipos de licencias se presentan en línea a 
través del SISCOMEX, que las remite a una de las 16 entidades gubernamentales competentes 
para su tramitación.26 Según las autoridades, aunque no hay superposición de competencias entre 
las entidades encargadas del trámite de licencias, algunas licencias de  importación pueden requerir 
la intervención (aprobación) de más de una entidad. Además, la principal entidad encargada del 
trámite de licencias de importación, el Departamento de Comercio Exterior (DECEX) de la SECEX, 
ha delegado sus competencias sobre al gunos productos y operaciones al Banco do Brasil S.A .27 
Pregunta 27:  
27. México entiende que Las solicitudes para ambos tipos de licencias se presentan en línea a 
través del SISCOMEX, que las remite a una de las 16 entidades gubernamentales competentes 
para su tramitación. El plazo de tramitación de las solicitudes de licencias automáticas es de 10 
días laborables, mientras que el de las licencias no automáticas es de 60 días naturales contados a 
partir de la fecha de registro en el SISCOMEX (Orden Nº 23 de la SECEX, de 14 de julio de 2011, 
artículos 22 y 23). ¿Podría Brasil aclarar el tiempo aproximado en días para la emisión de licencias 
de importación?  
Specifically considering DECEX/SECEX, the average time in 2016 for the analysis of import licenses 
was ap proximately 3.6 days. In general, however, considering the other agencies, to measure the 
average time it is necessary to verify the characteristics and specificities of each import operation . 
                                                
25 El capítulo II de la Orden  Nº 23 de la SECEX (14 de julio de  2011) incluye una compilación de los 
reglamentos para el trámite de licencias de importación y sus modificaciones posteriores. Puede consultarse 
información actualizada sobre las prescripciones en materia de licencias de importación mediante una función 
de simulación del SISCOMEX, accesible en: 
https://siscomex.desenvolvimento.gov.br/tratamento/private/pages/consulta_tratamento.jsf [29  de diciembre 
de 2016].  
26 El plazo de tramitación de las solicitudes de licencias automát icas es de 10 días laborables, mientras 
que el de las licencias no automáticas es de 60 días naturales contados a partir de la fecha de registro en el 
SISCOMEX (Orden Nº  23 de la SECEX, de 14 de julio de  2011, artículos 22 y 23).  
27 Puede consultarse una li sta de las líneas arancelarias y las operaciones de importación para las cuales 
el Banco do Brasil S.A.  analiza las solicitudes de licencias de importación, en la siguiente dirección: 
http://www.bb.com.br/docs/pub/dicex/dwn/LIalcadas.pdf [29 de diciembre 2 016].  WT/TPR/M/358/Add.1  
 
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  3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas q ue afectan 
directamente a las importaciones; 3.1.5 Prohibiciones, restricciones y licencias de 
importación:  
Página 66 (párrafo 3.52)  
Por lo general, las licencias automáticas se utilizan para recopilar datos estadísticos y vigilar 
productos y regímenes de  importación específicos, incluidos los de perfeccionamiento activo. 
Según las autoridades, el propósito de las licencias no automáticas es evitar daños ambientales y 
daños para la salud de las personas y los animales o la preservación de los vegetales, as í como 
someter a control las importaciones de productos clasificados como armas y productos sujetos a 
contingentes o medidas comerciales correctivas. La concesión de licencias no automáticas para las 
importaciones de maquinaria y equipos usados está supedi tada a la comprobación de que esos 
artículos no se fabrican en el Brasil y no pueden sustituirse por artículos similares que se fabriquen 
actualmente en el Brasil. Las licencias no automáticas también se utilizan en la administración de 
las concesiones de derechos e impuestos; para beneficiarse de esas concesiones, las importaciones 
deben someterse a una "prueba de similitud" a fin de determinar que no existe producción 
nacional equivalente.28 Aunque la mayoría de los requisitos en materia de licencias se es tablecen y 
modifican mediante la legislación correspondiente, la cobertura de productos puede estar sujeta al 
arbitrio administrativo cuando así lo permita el marco normativo.  
Pregunta 28:  
28. El informe hace referencia a un proceso de "prueba de similitud " en el sentido de que la 
autoridad puede solicitar un Certificado por parte de los organismos empresariales, a fin de 
determinar que no existe producción nacional equivalente, lo cual puede restar objetividad al 
proceso. ¿Podría Brasil dar más información  sobre los criterios utilizados para la prueba de 
similitud y de cómo asegura la imparcialidad de la opinión?  
Currently, in order to ensure more transparency, the analysis of national production carried out by 
DECEX is done through a public consultation. T he consultation and its outcome are posted on the 
MDIC website at the following link:http://www.mdic.gov.br/index.php/comercio -
exterior/importacao/material -usado -similaridade/consulta -publica . 
4 MARCO INSTITUCIONAL Y REGLAMENTARIO DEL COMERCIO; 4.1 Cuestio nes 
transversales; 4.1.3 Medidas en la frontera:  
Página 115 (párrafo 4.19)  
Según la información y las notificaciones recientemente presentadas a la OMC por el Brasil, al igual 
que en períodos anteriores, en 2013 -2016 no se concedió ninguna subvención a la exportación de 
productos agrícolas.29 Por otro lado, la ayuda alimentaria del Brasil al exterior aumentó de manera 
considerable, pasando de 47.284 toneladas en 2008 -2010 a 230.816  toneladas en 2012 -2014, de 
las cuales el 83,3% consistía en arroz.30 En 2015, la ayuda alimentaria del Brasil se redujo a 
16.480 toneladas, un 65,6% de ellas de arroz; en 2016 esa ayuda disminuyó drásticamente a 
1.982  toneladas, todas ellas de arroz. Tras unas investigaciones sobre prácticas irregulares 
relativas a la cert ificación de carne y productos cárnicos cometidas en 21 instalaciones 
transformadoras de productos de carne de bovino, de porcino y de aves de corral, el 22 de marzo 
de 2017 el Brasil reiteró que se mantenían adecuadamente los programas sanitarios oficiale s y los 
controles específicos de los productos de origen animal nacionales, y señaló que confiaba en que 
los Miembros no recurrieran a la aplicación de medidas que constituirían restricciones arbitrarias 
                                                
28 La SECEX lleva a cabo el examen antes del envío de las mercancías desde el país de origen; las 
modalidades pertinentes se establecen en el Decreto Nº 6.759, de 5 de febrero de  2009. Las importaciones 
procedentes de otros países de la ALADI se consi deran "casos especiales". Las autoridades afirman que la 
ausencia de un equivalente nacional es un prerrequisito para la reducción o exención de impuestos, no para la 
importación de la mercancía.  
29 Documentos G/AG/N/BRA/36 y G/AG/N/BRA/39 de la OMC, de 27 de enero de  2015 y 12 de enero 
de 2016, respectivamente.  
30 Documentos de la OMC G/AG/N/BRA/33, de 3 de febrero de  2014; G/AG/N/BRA/36, de 27 de enero 
de 2015; G/AG/N/BRA/39, de 12 de enero de  2016; y G/AG/N/BRA/42, de 28 de octubre de  2016.  WT/TPR/M/358/Add.1  
 
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  del comercio internacional o serían contrarias a las  disciplinas del Acuerdo MSF y otras normas de 
la OMC.31 
Pregunta 29:  
29. ¿Podría Brasil dar mayor información acerca del considerable incremento de ayuda alimentaria 
al exterior, en el período de 2012 -2014?  
Currently, the Brazilian Government provides food  aid through the World Food Program (WFP) of 
the United Nations, focusing on Emergency Operations and Protracted Relief and Recovery 
Operations, which target victims of socio -environmental disasters and vulnerable groups to 
guarantee their food and nutriti onal security. Rice is the main commodity provided because it is a 
staple food in all the recipient countries.  
PARTE II: OTRAS PREGUNTAS  
Tema: Solicitud de documento adicional para la importación de bebidas: Certificado de Origen y 
Análisis (Consolidado)  
Pregunta 30:  
Para la importación de bebidas, el gobierno brasileño exige, entre otros documentos, que se 
presente un "Certificado de origen y de análisis del producto " (Consolidado). Este Certificado debe 
ser emitido por un Órgano Oficial u oficialmente acr editado por el país de origen del producto y los 
gobiernos de cada país deberán enviar los datos de estos organismos acreditados al MAPA 
(Ministerio de Agricultura, Ganadería y Abastecimiento ). 
30. La certificación de origen bajo esta modalidad podría cons iderarse como una duplicación al 
momento de que un bien que se importa a Brasil con un certificado de origen de la Asociación 
Latinoamericana de Integración (ALADI). ¿Brasil ha considerado la posibilidad de no solicitar el 
certificado de origen, y sólo pre sentar el análisis del producto, cuando el producto ya cuenta con 
un certificado de origen ALADI emitido conforme a las disposiciones establecidas por dicha 
Asociación?  
Se entiende que el Certificado de Origen es un certificado estabelecido por um acuerdo 
preferencial, en los términos y según las exigencias estabelecidas entre las partes de dicho 
acuerdo. El no se confunde con el certificado exigido por el MAPA.  
  
                                                
31 Documento G/S PS/GEN/1545 de la OMC, de 22 de marzo de  2017.  WT/TPR/M/358/Add.1  
 
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  NEW  ZEALAND  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/358)  
SECTION I: ECONOMIC ENVIRONMENT  
2.6 Foreign Investment Regime  
WT/TPR/S/538, pg. 38, para 2.35; pg. 109, para 4.43  
Section 2.6 of the Secretariat Report, pg. 37 highlights Brazil 's relative openness to foreign direct 
investment (FDI), and despite its difficult economic and political climate, its maintenance of its 
position as the most attractive investment location in Latin America and the Caribbean in 2015. 
However, Secretariat Re port pg. 109 para 4.43 notes that restrictions on ownership of rural land 
by foreigners remain in place, which have had a significant impact on the plans of foreign 
companies, including from New  Zealand, for investment in Brazil 's agribusiness sector invol ving 
the purchase of land. The Secretariat Report mentions on pg. 38, para 2.35 that as of January 
2017, the Brazilian Government was to propose to lift restriction on foreign ownership of 
agricultural land. New Zealand applauds this move and encourages th e lifting of restrictions given 
the importance of foreign investment to increasing the competitiveness of national industries and 
lifting the country out of economic recession.  
Questions:  
1. How is the Brazilian Government progressing on the proposal to intr oduce legislation to lift 
restrictions on foreign ownership of agricultural land in Brazil?  
Following the 1995 constitutional reform, Brazilian companies (even those foreign - owned) may 
acquire, operate and lease rural lands. However, acquisition of rural  lands by foreigners residing in 
Brazil or by foreign -based corporate entities authorized to operate in Brazil is subject to certain 
conditions prescribed by law, and to congressional authorization. Furthermore, for reasons of 
national security, certain li mitations apply to the acquisition of properties by foreigners in border 
areas. Purchase of such lands requires an authorization by the General Secretariat of the National 
Security Council.  
It is important to note that Law No. 13.378/2015 has regulated th e registry of real estate that 
resulted from concession or the transfer of property of public land along the border areas, with a 
few exceptions, such as real estate with an area larger than 2,500 hectares (6178 acres), which 
are subject to approval by the  National Congress.  
It must be noted that the introduction of legislation aimed at lifting restrictions on foreign 
ownership of agricultural land in Brazil is part of a greater context of reforms in a wide range of 
economic areas, from social welfare to tax regimes. Brazil is implementing several structural 
reforms that will have significant impact across the economy. The Brazilian Government is 
establishing conditions to enable sustainable economic growth and investment attraction, which 
are based on tra nsparency of regulations, improvement of productivity, both in goods and 
services, and the simplification of bureaucratic procedures.  
2. What consideration will be given to facilitating productive investment supported by local 
industry while subjecting specul ative acquisitions to greater limitation?  
The attraction of Foreign Direct Investment (FDI), considered as productive resources that 
contribute to the sustainable growth of the economy, is a priority for Brazilian economic policy. In 
this regard, the Coop eration and Facilitation Investment Agreement (CFIA) model, which has been 
the basis for a number of bilateral treaties signed by the countryrecently, clearly states that only 
FDI is to be covered by its regulations.  WT/TPR/M/358/Add.1  
 
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  SECTION III: TRADE POLICIES AND PRACTIC ES BY MEASURE  
3.1.3.1 Applied MFN tariff  
WT/TPR/S/358, pg. 46, para 3.27; pg. 48, para 3.29  
Section 3.1 of the Secretariat Report, pg. 46 notes the pattern of tariff escalation tends to act as a 
disincentive to improve international competitiveness at the higher stages of value addition, and 
that Brazil maintains a range of temporary, individual derogations to the Mercosur Common 
External Tariff (CET). New  Zealand commends the tariff reductions Brazil has made through CET 
exemptions since 2013, from 200 to 99 lines. However, the deadline for elimination of national 
exemptions has been extended from 2014 to 31 December 2021. New Zealand encourages Brazil 
to consider through Mercosur permanent reductions to tariffs, particularly for fully processed 
products in  order to improve its integration into global value chains and thereby the economy 's 
competiveness.  
Questions:  
1. How long does Brazil anticipate it will maintain lists of exceptions to the Mercosur Common 
External Tariff?   
The extension of the deadline for the elimination of Brazil's basic list of national exemptions to the 
CET derives from Decision n. 26/2015, adopted by MERCOSUR Common Market Council, in July, 
2015, which allowed Brazil to extend its list up to 31 December 2021.  
2. When will the number of exc eptions be reduced below the current 99 lines?  
Decision n. 26/2015 allows Brazil to include up to 100 lines in its national list of exemptions.  
In different opportunities, Brazil has adopted fewer exceptions to the CET.  
3.1.6 Anti -dumping, countervailing , and safeguard measures  
WT/TPR/S/358, pg. 56, para 3.58  
Section 3.1 of the Secretariat Report, pg. 56 notes that while initiated investigations showed a 
downward trend in the review period, Brazil 's use of trade remedies, particularly anti -dumping 
measure s, nearly doubled from 87 definitive measures in 2012 to 161 definitive measures in force 
at end -December 2016. In the same section, the Secretariat report notes that at end -2016, 44 
trade remedy measures were in force for more than 5 years. Given anti -dumping measures 
counteract the aforementioned benefits of tariff reductions to improving international 
competitiveness, New Zealand welcomes the steps Brazil is taking to modernise its legal and 
operation framework related to anti -dumping measures and other trade remedies outlined in 
Brazil 's Government Report (pg. 23 -24, paras 4.30 -4.35).  
Questions:  
1. Please elaborate on the practical impacts that Brazil 's modernisation of its legal and 
operational framework relating to anti -dumping measures.  
Some of the practical impacts of Brazil´s modernization of its legal and operational framework 
have been: shorter deadlines that reduced the duration of investigations, especially as a result of 
greater clarity and detail regarding deadlines to be carried out by DECOM  and interested parties in 
the investigation; enhanced transparency and due process, also resulting from the implementation 
of DECOM 's Digital System, which allowed access to files and submission of documents 
electronically by Brazilian and foreign interested parties; increased transparency and predictability 
due to the refinement of rules regarding (i) review of duties based on changed circumstances; (ii) 
sunset review; (iii) review for new producers or exporters; (iv) anti -circumvention review; (v)  
reimbursement review.  WT/TPR/M/358/Add.1  
 
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  3.3 Measures Affecting Production and Trade  
WT/TPR/S/358, p 68 para 3.113  
Table 3.13 states that Brazil notified two fisheries support programmes to the WTO in 2011 -2012: 
these were a programme for diesel support and a programme for  financing the enlargement and 
modernisation of the fishing fleet.  
Questions:  
1. Please elaborate on the current status of these programmes – have they continued, and if so, 
how long does Brazil anticipate these programmes will be in place?  
Both programs are  currently non -operational. There are no established termination dates for these 
programs.  
2. Please explain how Brazil ensures that these programmes do not contribute to overfishing or 
overcapacity?  
PROFROTA has been established with the aim to reducing the  capture pressure on overfished 
stocks and to guarantee efficiency and sustainability for the Brazilian fishing fleet. On the other 
hand, beneficiaries of the diesel program have to prove their vessels are compliant with the 
Brazilian legislation as well a s ensure, by means of catch registries, that they are not incurring in 
overfishing.  
3.3.1  Incentives  
WT/TPR/S/358, pg. 67, para 3.108; pg. 68, table 3.13  
In line with Doha mandate "to clarify and improve WTO disciplines on fisheries subsidies", New 
Zealan d commends the non -operationalisation of one of its two fisheries support programmes 
relating to financing the enlargement and modernisation of the fishing fleet (PROFROTA), notified 
to the WTO for the period 2013 -2014. However, Table 3.13 and the notifica tion to WTO, notes that 
the programme subsidising maritime diesel for commercial fishers continues. A recent study 
referenced in the Secretariat report on p 67, para 3.108 suggests Brazilian industry has become 
increasingly dependent on incentives, rather than improving its international competitiveness. 
Furthermore, declarations made in G20 and UN Rio+20 conference on sustainable development 
encouraged States to eliminate subsidies that contribute to overcapacity and overfishing.  
Questions:  
1. Please indicat e whether there are plans for the reactivation of the PROFROTA program or 
whether the non -operational programme will be eliminated?  
The program is non -operational and there is no scheduled date for its reactivation.  
2. Please elaborate on what the status of its maritime diesel subsidy programme is now and what 
plans it has to phase out its subsidies for diesel fuel for the fishing industry, consistent with 
declarations made around reforming such subsidies through the G20  and UN Rio+20 
conference on sustainable development?  
The Diesel program is currently non -operational. Its objective is to equalize the national and 
international price of diesel fuel in order to guarantee competitiveness to the Brazilian fishing 
sector. The program is compliant with Brazil's international obligations.  
3.3.5  State trading, state -owned enterprises, and privatization  
WT/TPR/S/358, pg. 81 -82, Table 3.19  
Table 3.19 in the Secretariat Report, pg. 81 -82 refers to the activities of a number of st ate-trading 
enterprises, including CONAB (Companhia Nacional de Abastecimento). Activities listed include WT/TPR/M/358/Add.1  
 
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  administering agricultural and supply policies such as strategic storage and minimum price 
guarantees, as well as importing food products under except ional circumstances.  
Questions:  
1. Has CONAB imported food products during the reporting period, and under what circumstances 
were these imports made? Were these imports added to the strategic stock or distributed to 
meet basic needs?  
CONAB has not imported any food product during the reporting period. The last importation carried 
out by CONAB occurred in the 1990 's. 
2. How does CONAB determine the minimum price guarantees for agricultural products?  
The minimum price is based on the variable cost of production calculated by CONAB, but other 
factors can be considered.  
3.3.6 Government Procurement  
WT/TPR/S/358, section 3.3.6, page 82, para 3.174  
Brazil is currently not an Observer nor a Party to the World Trade Organisation Agreement on 
Government Procurement (G PA).  
Question(s)  
1. Does Brazil intend to become an Observer or accede to the GPA? If so, when might it begin 
this process?  
In this regard, Brazil has engaged in bilateral or regional initiatives related to public procurement 
commitments based on the WTO 's GPA principles.  
WT/TPR/S/358, section 3.3.6, page 84, para 3.182  
Some 17 Decrees establishing public procurement preference margins, ranging from 8% to 25%, 
for various national products were in force in Brazil during most of the period under review (Table  
3.20). The product -specific preference margins applied to procurement contracts at all levels of 
government, and were to be reviewed at least once every five years. All but two of these decrees 
expired on 31 December 2016; one remained partially in force until 30 March 2017 and one was in 
force until 30 June 2017. " 
Question(s)  
1. Now that all the decrees establishing product -specific preference margins have expired can 
Brazil confirm that these will not be reinstated?  
Those preference margins put into force in Brazil were temporary, product - specific and 
established after prior studies and assessments. As of today, there are no preferential margins in 
force and there are no other preferential margins decrees currently under study.  
SECTION IV: TRADE POLICIES B Y SECTOR  
4.1.4 Domestic support measures including agricultural/rural credit, minimum price 
guarantees and agricultural/rural insurance  
WT/TPR/S/358, pg. 96 – 108, para 4.21 – 4.40 
New Zealand congratulates Brazil on its maintenance of domestic support to agricultural producers 
which remains at a low level compared with OECD countries, well below the average according to 
Brazil 's Government Report, pg. 27. However, the Secretariat report (pg. 97, para 4.21) 
references an OECD contention that an important pa rt of support to producers continues to be 
provided through measures that distort farm prices and current costs. For example, in 2016, public WT/TPR/M/358/Add.1  
 
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  banks with preferential interest rates to both commercial and small -scale family farms provided 
58% of rural credi t, followed by private banks (30%) and cooperatives (12%).  
New Zealand recognises that, while Brazil has become an agricultural powerhouse, the majority of 
its farms remains small family operations that are still in the process of modernisation. However it  
is concerning if Government support for the industry is distorting production and trade.  
Questions:  
1. In response to New Zealand 's question as part of its TPR in 2013, Brazil has stated that rural 
credit is targeted to family farms who would not meet the requirements to obtain it otherwise, 
but the scheme is currently provided to both commercial and small -scale family farms (pg. 98,  
para 4.23). Has Brazil considered limiting the credit to the family farms as commercial 
operations are much more likely meet private bank lending policies?  
At the moment, Brazil has no plans to change the current policy.  
2. New Zealand welcomes the Secretar iat report 's findings that price support was lowered in real 
terms, but differences in support level by commodity continue to create distortions within the 
sector (pg. 105, para 4.36). How is Brazil progressing in moving towards other less 
distortionary me asures such as income support for farmers?  
As stated, the level of support is currently low and has low impact to distort production and trade. 
So, at the moment, Brazil has no plans to change the current policy.  
3. In 2016/17, the Brazilian Government resou rces allocated to rural insurance subsidies for 
commercial farmers (PSR) were increased by 42%, ranging from 35% -55% of the premium 
(pg. 108 -109, para 4.40). Why was an increase in subsidies deemed necessary for commercial 
operations, in addition to the tw o other programmes targeting small -scale family farms?  
As stated by the report (para 4.40), "resources allocated to the rural insurance premium 
programme (PSR) were cut to R$282 million (US$84.6 million) in 2015/16 due to budgetary 
constraints ". The budge t inicially allocated to this crop -year was R$668 million. So, the resources 
allocated to the crop -year 2016/2017 is significant lower than that allocated to the previous crop -
year. 
4.2.2 Policy and institutions  
WT/TPR/S/358, p 109 para 4.46  
Paragraph 4.46 of the Secretariat report notes that Brazil's Ten -Year Plan for Energy Expansion 
2024 ( Plano Decenal de Expansão de Energia 2024 ) is focused on striking a balance between the 
economic growth projections and the necessary expansion of energy supply, as  well as ensuring 
energy supply at the appropriate cost and on a technical and environmentally sustainable basis.  
The report also notes (paragraph 3.168, page 81) that "although formally deregulated since 2002, 
consumer prices of refined petroleum products  are de facto fixed by the state -controlled 
PETROBRAS, which dominates Brazil's refining and wholesale distribution. " 
Questions : 
1. What plans does Brazil have for utilising the G20 Voluntary Peer Review Mechanism for Reform 
of Inefficient Fossil Fuel Subsidi es, as a way to increase transparency, and to share reform 
experiences and best practice?  
Considering that Brazil does not count on any public policy which includes inefficient fossil fuel 
subsidies that encourage wasteful comsumption, engaging in a peer review exercise is not deemed 
particularly useful or necessary at the present moment, even if it has not been altogether 
discarded.  WT/TPR/M/358/Add.1  
 
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  4.4.8.  Professional services  
WT/TPR/S/358, p 160, para 4.213  
Paragraph 4.213 of the Secretariat report notes that "the request for  revalidation must be 
submitted to a recognized Brazilian university. The revalidation process is facilitated if the 
university has an Equivalence or Reciprocity Cooperation Agreement with the foreign university. In 
practice, procedures for revalidation of  foreign diplomas are complex and time consuming. Brazil 
does not have any agreements for automatic recognition of qualifications other than with Portugal; 
therefore, the rules are the same for all countries, except Portugal. Furthermore, diplomas and 
transcripts must be legalized in the Brazilian consulates where the studies were conducted. Foreign 
professionals with a work contract are subject to the same legal labour requirements as locals ". 
Questions : 
1. Given Brazil 's ongoing ambitions to lift levels of higher education, encourage greater 
international study, and attract foreign professionals in certain areas, is any re -consideration 
being given to allowing for automatic recognition of foreign qualifications in specif ic disciplines 
and from specific countries?  
Revalidation of foreign diplomas in Brazil is done by the federal or state public universities. Each 
university has the autonomy to carry out revalidation in accordance with the legislation of the 
Ministry of Ed ucation.  
Resolutions 18, 26 and 35 deal with definitive and temporary records of Brazilian and foreign 
Architects and Urban Planners, graduated by national or foreign educational institutions. 
Resolution 132/2017 updated the regulations, including the Haia  Apostille Convention, which 
eliminated the requirement of legalization of foreign public documents, in order to speed up and 
simplify the legalization of documents among the signatory countries.  
Cooperation Agreements, such as the CIAM Agreement ( Mercosu l Countries) and the Cooperation 
Agreement OA/PT, are already signed and facilitate professional exchange and revalidation of 
diplomas, provide benefits related to the facilitation of documentation required for registration, as 
well as different deadlines for processing.  
Also the recently launched platform - Portal Carolina Bori (www.carolinabori.gov.br) - provides an 
easy access to relevant information on revalidation / recognition of foreign degrees. The platform 
brings together legislation and guidelines  along these lines and also answer frequent doubts for 
both applicants and validating institutions.  
REPORT BY GOVERNMENT OF BRAZIL (WT/TPR/G/358)  
SECTION 3: TRADE POLICY DEVELOPMENTS (2013 -16) 
3.3.3 MERCOSUR and extra -regional agreements  
WT/TPR/G/358, p. 1 8, paras 3.29 to 3.32  
"In 2016, MERCOSUR and the European Free Trade Association (EFTA) concluded an exploratory 
exercise for an FTA. The first round of negotiations was held in June 2017, in Buenos Aires, and 
the next round is due to take place late Augus t 2017 in Geneva. The intention is to negotiate a 
comprehensive free -trade agreement. Since the last TPR, MERCOSUR has also held trade dialogues 
with several countries, including Canada, the Republic of Korea, and Japan, with a view to 
exploring the possib ility of negotiating trade agreements.  
In 2016, MERCOSUR and India started working on the expansion of the Preferential Trade 
Agreement signed in 2004 and in force since 1 June 2009. The FTA signed by MERCOSUR and 
Egypt will entry into force thirty days a fter the date of the notification to the Depository of the 
instrument of ratification of the last Signatory Party. In October 2015, the Brazilian Congress 
approved the FTA and Brazil's instrument of ratification was deposited in February 2016. Egypt, 
Parag uay and Uruguay have also completed their ratification procedures.  WT/TPR/M/358/Add.1  
 
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  The Preferential Trade Agreement (PTA) between MERCOSUR and the Southern Africa Customs 
Union (SACU), signed by the State Parties to MERCOSUR on 15 December 2008 and by SACU 
Member States on 3 April 2009, entered into force on 1 April 2016. The first meeting of the Joint 
Administrative Committee (JAC) of the PTA is scheduled to take place in May 2017.  
The FTA signed by MERCOSUR and Palestine on 20 December 2011 provides for its entry into 
force, bilaterally, after Palestine and one of the MERCOSUR States ratify it. The text of the FTA is 
currently under analysis in the Brazilian Congress. "  
Questions : 
1. In practical terms, what is the difference for MERCOSUL among the Economic 
Complementation Agreements (ACEs), the AAPs, the Preferential Trade Agreements (PTAs) 
and the Free -Trade Agreements (FTAs)?  
LAIA was established by the 1980 Montevideo Treaty (TM80 ), which brought an important element 
of flexibility to the legal framework of integration initiatives in the region: the possibility of signing 
agreements between only two or more member countries. The Latin American Free Trade 
Association (LAFTA), which preceded LAIA, required that any trade concession from a member 
country to another would be immediately and automatically extended to the others.  
The flexibility brought by LAIA resulted in a significant increase in the number of trade agreements 
in Latin  America. LAIA has been playing an important role as the main legal framework for trade 
agreements across the region.  
The TM80 comprises the following mechanisms: a Regional Tariff Preference, reciprocally granted 
to each member country; Regional Agreemen ts, in which all members countries participate; and 
Partial Agreements, in which not all members countries participate and whose objective is to 
create the necessary conditions to expand the regional integration process through the gradual 
multilateralizat ion of Partial Agreements among member countries.  
Partial Agreements may take the form of Economic Complementation Agreements (ACEs), which 
are designed, among other objectives, to promote the maximum use of factors of production, 
favour economic compleme ntarities and ensure equitable conditions for competition.  
An Economic Complementation Agreement (ACE) can be characterized as a Free Trade Agreement 
(FTA) when it covers substantially all trade; or as a Preferential Agreement (PTAs), when it has a 
more li mited coverage.  
The Treaty of Montevideo 1980 is available in the following link: 
http://www.aladi.org/nsfaladi/juridica.nsf/vtratadoweb/tm80 . 
3.4 Investment Agreements  
WT/TPR/G/358, p. 19, para 3.39  
"Following the rejection of BITs by the National Congress, the Brazilian Government intensified 
work to define new guidelines for further negotiations on investment agreements. Brazil has 
focused on designing a new model of investment agreement based on tho rough review of studies 
by international organizations (UNCTAD and OECD Guidelines), extensive consultations with the 
Brazilian private sector, and international benchmarking. This process led to the drafting of the 
Cooperation and Facilitation Investment Agreement (CFIA), which seeks a balanced outcome 
combining the promotion of an attractive environment for investors while preserving space for 
public policies. The new Brazilian model sidelines the limitations identified in traditional BITs in 
favour of a positive approach comprising institutional cooperation and facilitation of investment 
flows. This model has been used since 2013; Brazil has already signed CFIAs with Mozambique 
(March 2015), Angola (April 2015), Mexico (May 2015), Malawi (June 2015), Colo mbia (October 
2015), Chile (November 2015), Peru (April 2016) and India (September 2016, concluded, but 
pending of signature). An agreement with Jordan has already been negotiated, but is still pending 
signature. The firsts CFIAs (Angola, Mozambique and Ma lawi) have already been approved by the 
House of Representatives and are currently being analysed by the Senate. The Cooperation and WT/TPR/M/358/Add.1  
 
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  Facilitation of Investments Protocol of MERCOSUR (PCFI) has recently been concluded. Brazil is 
also engaged in exploratory dialogues with South Africa, Tunisia, Morocco, Thailand, Ethiopia and 
the former Yugoslav Republic of Macedonia ". 
Questions : 
1. Please clarify what the Cooperation and Facilitation Investment Agreements (CFIAs) cover?  
The Cooperation and Facilitation Investment Agreements cover direct investments made by one 
Party in the territory of another Party, before or after its entry into force. Below is a version of the 
definition of the term "investments " present in the CFIAs:  
"Investment means a direct investment of an investor of one Party, established or acquired in 
accordance with the laws and regulations of the other Party, that directly or indirectly, allows the 
investor to exert control or significant degree of influence over the management of the production 
of goods or provision of services in the territory of the other Party, including but not limited to:  
(a) shares, stocks, participations and other equity types in an enterprise;  
(b) movable or immovable property and oth er property rights such as mortgages, liens, 
pledges, encumbrances or similar rights and obligations;  
(c) the rights of exploration, exploitation and use conferred by a license, permit or concession 
granted and ruled by the legislation of the Host Party a nd/or by a contract  
(d)  loans and debt instruments to a company:  
(e)  intellectual property rights as defined or referenced to in the Trade -Related Aspects of 
Intellectual Property Rights of the World Trade Organization (TRIPS)  
For the purposes of this A greement and for greater certainty, "Investment" does not include:  
(i)  an order or judgment issued as a result of a lawsuit or an administrative process;  
(ii)  debt securities issued by a Party or loans granted from a Party to the other Party, bonds, 
 debentures, loans or other debt instruments of a State -owned enterprise of a Party that is 
 considered to be public debt under the legislation of that Party;  
(iii)  portfolio investments, i.e. those that do not allow the investor to exert a significant degre e 
 of influence in the management of the company, of the enterprise or in another enterprise; 
 and  
(iv)  claims to money that arise solely from commercial contracts for the sale of goods or services 
 by an investor in the territory of a Party to a nationa l or an enterprise in the territory of 
 another Party, or the extension of credit in connection with a commercial transaction, or any 
 other claims to money that do not involve the kind of inte rests set out in sub -
 paragraphs  (a)-(e) above.  
2. When Brazil men tions that CFIA "seeks a balanced outcome combining the promotion of an 
attractive environment for investors while preserving space for public policies ", what it means 
in practical terms? Could Brazil provide some examples?  
The CFIA seeks to meet investors  needs in a concrete, pragmatic and proactive manner while, at 
the same time, respecting the development strategy and the regulatory space of host countries by 
focusing on investment facilitation, institutional governance and prevention of disputes.  
The CF IA is based on three pillars: a) risk mitigation/ framework for the treatment of investors and 
their investments; b) institutional governance; and c) agendas for cooperation and investment 
facilitation.  WT/TPR/M/358/Add.1  
 
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  In the first pillar, the CFIA provides a set of measu res that reduce the investor's exposure to risk 
and establishes a framework for the treatment of investors and their investments. It provides 
guarantees for non -discrimination (national treatment and most favored nation treatment), 
transparency clauses and  specific conditions for cases of direct expropriation, compensation in 
case of conflicts and guarantees for international transfers.  
In the second pillar, the CFIA proposes the establishment of focal points or "ombudsmen" in each 
Party and the creation of a Joint Committee. These instances can be considered the institutional 
core of the Agreement, as they contribute to the fulfillment of the commitments made and to 
strengthen the dialogue between the Parties with regard to investments and appropriate 
assistance to investors. The Ombudsmen 's role is to act as a facilitator of the relationship between 
the investors and the host country government, both in terms of dialogue with the relevant 
authorities and by providing government support, with the ultimate goal of improving the business 
environment to attract and maintain investments. The Joint Committee, composed of government 
representatives of both Parties, is in charge of monitoring the implementation of the Agreement, 
sharing of information regarding in vestment opportunities, bilateral investment cooperation and 
facilitation initiatives and, above all, joint action to prevent disputes and amicable settlement of 
any issues involving bilateral investment. During the prevention of disputes, representatives of 
affected investors, when applicable, may be invited to appear before the Joint Committee. If a 
dispute leads to arbitration proceedings, the procedure will take place in a State -State format, 
much like the dispute settlement system of the World Trade Or ganization  
In its third pillar, the CFIA provides for the establishment of investment facilitation and 
cooperation agendas in areas that may improve the investment environment. Such agendas may 
vary depending on the possibilities and challenges of the bila teral investment relationship. These 
agendas may include cooperation for facilitating business visas, facilitating capital and currency 
remittances between the Parties, cooperation regarding technical and environmental regulations, 
cooperation aimed at imp roving logistic infrastructure, among others.  
Excessive litigation resulting from BITs affects the business environment and the effort to attract 
investments to developing countries, as well as the regulatory capacity of the State to pursue 
legitimate pol icy interests of the population in areas such as health, environment and public 
safety. Therefore, dispute prevention and investment facilitation become a preferred and superior 
choice, both in attracting and maintaing the investment. What Brazil has reali zed, after large 
stakeholder consultations with our private sector, international organizations and many other 
countries, is that nobody really wants litigation. Investors want predictability and celerity; 
governments, policy space.  
By focusing on facilit ating investment, improving institutional governance, improving government 
relations with the private sector and in preventing disputes, the CFIA presents an innovative 
alternative to traditional investment agreements and its legal loopholes.  
SECTION 4: TR ADE INSTITRUTIONAL AND REGULATORY FRAMEWORK  
4.1.4.  Sanitary and phytosanitary issues  
WT/TPR/G/358, p. 22, para 4.20  
"Since the creation of the WTO, Brazil has signed more than thirty bilateral agreements on sanitary 
and phytosanitary matters, based on SPS Agreeme nt principles. The main purpose of these 
agreements is to identify common rules, simplify import controls, harmonize certification 
requirements, and facilitate bilateral trade and the entry of selected products. The importance of 
such agreements for Brazil ian exporters and their trade partners can be measured by the increase 
in the bilateral volume of trade exports with more than one hundred countries and the integration 
of medium and small -sized agricultural producers into the international market in secto rs as 
honeybee, organic products, fresh fruits and flowers. However, the full potential of Brazil's 
agribusiness has yet to be fully developed, mainly due to the lack of recognition of equivalence 
agreements by some countries, as recommended by the SPS Agr eement ".  WT/TPR/M/358/Add.1  
 
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  Question : 
1. The Ministry of Agriculture, Livestock and Supply (MAPA) of Brazil has a list of countries who 
have requested recognition of equivalence of their inspection systems for several animal 
products such dairy, meat, seafood among others. Man y of these requests have been made 
several years ago and MAPA has not agreed on the equivalence yet mainly due to the need of 
undertaking an inspection visit to these countries. However, in January 2017, MAPA issued a 
new Regulation which says that Brazil will analyse case -by-case the need of an inspection visit 
or if Brazil will accept the other country´s inspection system as equivalent to the Brazilian 
system based on the country´s sanitary risk and the technical answers already provided to 
MAPA by the co untry´s competent authorities.  
(a) What is the timeframe from the Brazilian authorities to finalise this analysis?  
(b) Does Brazil have a timeframe to undertake the all the inspection visits requested? Could this 
calendar of visits be shared with interested parties?  
The Portaria  126, issued  on the 11th November  2016,  determined  the deadlines  for some  
proceedings  relate d to equivalence  recognition  of sanitary  inspection  systems  of foreign  countries  
and habilitation  of the plants  interested  in exporting  to Brazil.  However,  there  is not a deadline  for 
all the equivalent  procedure.  The referred  legal text determines:  
"2.6. The first draft reports  of the foreign  missions  will be prepared  in 60 days after the end of the 
mission  and will be made  available  for comments  to the competent  sanitary  authority  of the 
foreign  country  and for further  recommendations  for the same  period.  After the analysis  of the 
comments  and the procedures  adopted  by the foreign  country,  the final report  of the mission  will 
be issued  in 30 days and will be published  by DIPOA  on the website  of the Ministry  of Agriculture ". 
There is not a calendar for insp ections visits.  
4.2.2.  Agriculture  
WT/TPR/G/358, p. 26, para 4.52  
"The main sources of agricultural financing have continued to be resources from demand deposits 
and rural savings compulsorily destined for rural credit, resources from Agribusiness Credit Bills 
(LCA) directed to rural credit and credit lines managed by the National Economic and Social 
Development Bank (BNDES), as well as the "Constitutional Funds" aimed at reducing regional 
inequalities and promoting social and economic development through the fi nancing of agriculture, 
agro-industry and other sectors, in addition to infrastructure, innovation and technology. These 
funds are targeted to the North, Northeast and Centre -West regions (FNO, FNE and FCO) ". 
Question : 
1. Although Brazil is one of the countries that provide the least subsidies to agricultural 
producers, the rural credit and credit lines managed by the National Economic and Social 
Development Bank (BNDES) have heavily subsidised interest rates when compared to the 
interest rates provided by the Brazilian private banks. Does Brazil have plans to phase -out 
these subsidies to farmers in the medium -term?  
At the moment, Brazil has no plans to change the current policy.  
  WT/TPR/M/358/Add.1  
 
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  NORWAY  
1. Administration of tax payments  
Comp anies in Brazil report of costly and burdensome administration of tax payments.  
Will the government initiate reforms to simplify and unify systems?  
The simplification of the tax system is currently under analysis by the Brazilian government. A 
draft bill replacing two federal taxes (PIS and COFINS) by a new tax (social contribution) has 
already been elaborated but it has not been submitted yet to the National Congress. PIS and 
COFINS are certainly two of the most complex and difficult to enforce taxes at the federal level. 
The new envisaged social contribution tax will be fully compliant with OECD guidelines.  
2. Maritime transport  
The report states that transportation of goods and passengers by coastal shipping in Brazil is 
increasing, and that the growth potential is still significant. We believe that competition in the 
sector can contribute to improved services and increased productivity.  
How can the g overnment enhance more competition in this sector?  
Competition in this sector is enhanced by actions that foster investments in the country and, at the 
same time, guarantee a good competitive environment. Thus, a stable regulatory framework, 
transparency and social participation in decisions, as well as supervisory actions to prevent abusive 
practices and guarantee the good functioning of the economy, are fundamental to improving 
competition in the sector. In addition, investments in infrastructure and the  promotion of an 
integrated network of different means of transportation are equally important actions to 
strengthen the whole sector and boost economic growth.  
3. Risk analysis for seafood and registration of new products  
Norwegian authorities have requested  access for Norwegian shrimps, caviar and salmon to Brazil. 
We are informed that Brazilian authorities some time ago started risk analysis for caviar and 
salmon, and we would appreciate to receive a status of the risk analysis for shrimps, caviar and 
salmo n.  
Could Brazil provide a status of the risk analysis for shrimps, caviar and salmon?  
What efforts are being undertaken in order to achieve faster administrative handling by Brazilian 
authorities?  
Since changes were made in government responsibilities and in the ministerial administration of 
fisheries in the autumn 2015, we have experienced delays in the processing of applications for 
registration of new Norwegian products, as well as in the executi on of risk analysis.  
4. Online system for registration of labels and important products of animal origin  
The Norwegian Food Safety Authority sent in March 2017 the Brazilian authorities an updated list 
of companies authorised to export to Brazil. As the Brazilian online system PGA -SIGSIF, until now 
is not updated accordingly, applications for registration of new products from Norwegian exporters 
on the mentioned list, have bee n declined on the ground that they are not approved for exporting 
to Brazil. We have several times informed Brazilian authorities of the problem, but still no solution 
is found.  
When can we expect an update of the online system for registration of labels and important 
products of animal origin?   WT/TPR/M/358/Add.1  
 
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  On 18th January 2017, the online system was launched. Since then, all regulated products can be 
automatically registered by stakeholders. Non regulated products are subject to approval analyses 
by the DIPOA, as est ablished in paragraph 3, article 427, of Decree No. 9.013 / 2017.  
5. Reform of local content regime for hydrocarbons activity  
Norway notes the secretariat 's report (pages 10 and 92) that states inter alia that "The 
requirement for a minimum 30% stake of PETRO BRAS in pre -salt fields – which together with local 
content requirements seems to have caused development delays – and PETROBRAS' right to be 
the sole operator in pre -salt oil reserves were removed in November 2016. Efforts to reform the 
local content regi me in this area are also under way. " (emphasis added).  
Could Brazil provide an update on efforts to reform the local content regime in the area of 
hydrocarbons?  
The rules of local content requirements at exploration and production of petroleum projects we re 
simplified under the program PEDEFOR (Resolutions PEDEFOR nº 3, 28 November 2016, and nº 1, 
28 March 2017). Further, the local content is no longer a biddable item. Now, the new E&P 
contracts will have only three categories: well construction (25% of LC ), SUBSEA (40% of LC) and 
production facilities (25% of LC). For exploration activities the LC is 18%.  
  WT/TPR/M/358/Add.1  
 
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  PARAGUAY  
Reforma tributaria (2.1)  
El Paraguay observa con preocupación la presentación de proyectos en el Congreso brasileño, 
como el incremento de impuestos internos para productos agrícolas importados (arroz). En este 
caso entendemos que existe el proyecto de ley N° 2110/2015, busca aumentar el PIS/PASEP y 
COFINS al arroz importado.   
La simplificación del sistema fiscal y la armonización de tributos  estaduales facilitarían el comercio, 
tanto regional como internacional. En este sentido, ¿estaría en curso algún proyecto de reforma 
tributaria que favorezca las transacciones comerciales?  
Brasil ha estudiado la simplificación del sistema tributario y de  algunos impuestos. Como un primer 
resultado, ya hay un borrador de un proyecto de ley para crear un nuevo impuesto (contribución 
social) para sustituir dos impuestos federales (PIS y COFINS) que son, a nivel federal, los más 
complicados de cumplir y hacer  cumplir. Este nuevo impuesto será totalmente compatible con las 
directrices de la OCDE. El mencionado proyecto de ley aún no se ha presentado para la 
consideración del Congreso Nacional.  
Licencias de importación  
Si bien el requerimiento de Licencias de Im portación es un trámite regulado por la OMC, genera 
preocupación la cantidad de líneas arancelarias en las cuales el Gobierno brasileño las exige, ya 
que ello desalienta el comercio.  
Con el objeto de facilitar el flujo comercial, ¿habría algún interés del  Brasil en reducir el número de 
líneas arancelarias objeto de este requerimiento?  
El Comité Nacional de Facilitación de Comercio creo un Grupo de Trabajo para estudiar 
mecanismos de reducción del número de líneas arancelarias objeto de Licencias de Importación. 
Además, el programa de la ventanilla única de comercio exterior tiene como uno de sus objetivos 
reducir el número de licenciamientos por intermedio de funcionalidades de sistema que permitirán 
la obtención de la información requerida por las a gencias sin la necesidad de se exigir un proceso 
de licenciamiento formal.  
Permiso para comercialización de productos - Patentes – ANVISA - DIPOA (4.1.4)  
Resulta preocupante la aplicación por parte de estas instituciones de los procedimientos para el 
otorg amiento del permiso para la comercialización de productos.  
Teniendo en cuenta esta situación en la normativa de vigilancia sanitaria, puede considerarse 
como una barrera no arancelaria y por tanto disuasiva para las importaciones de productos 
afectados qu e exigen la certificación de estas instituciones.  
¿Existiría algún proyecto tendiente a la desburocratización de los procesos?   
En el área farmacéutica, ANVISA aprobó la Portaria Conjunta N. 001/2017. Dicha Portaria puede 
apoyar a dar agilidad en el examen del pedido de patentes. Asimismo, ANVISA está simplificando 
algunos procedimientos internos para acelerar su análisis.  
Remedios Comerciales (4.1.3 – 4.1.6)  
Durante el periodo en estudio, Brasil ha introducido numerosas medidas antidumping, en muchos  
casos castigando la competitividad de otros países y asfixiando al comercio.  
¿Existe algún plan para disminuir la introducción de este tipo de medidas?  
The increase or decrease in contingency measures does not depend solely on DECOM to the extent 
that t he decision to submit a petition, as a rule, falls on the domestic industry. Moreover, 
measures such as antidumping duties are imposed to correct distortions caused by unfair trade, 
which is an external factor. That said, out of all investigations actually  initiated by the Brazilian WT/TPR/M/358/Add.1  
 
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  investigating authority (Departamento de Defesa Comercial – DECOM), about 42% do not result in 
the imposition of definitive measures.  
Nevertheless, two main causes can be mentioned for the increase in the number of measures in 
force since 2012. Firstly, the international crisis of 2008, which has had a substantial impact on 
the volume and patterns of international trade, including the retraction of certain trade flows, the 
decrease of demand and the redirection of production surp luses to potential recipient markets, 
such as Brazil, which, at the time, was still in a good overall economic situation. Another reason 
was the appreciation of the Brazilian currency, which contributed to the increase of Brazilian 
imports, and which, in t his context of crisis, resulted in a greater demand for trade defense 
instruments by the Brazilian private sector. As a result, between 2011 and 2013, there was also an 
increase in the number of investigations initiated and of trade defense measures applie d. 
Thus, although there is a downward trend in the number of petitions filed and in the number of 
investigations initiated since 2014, the average number of investigations initiated between 2012 
and 2016 has resulted in an increase in the stock of trade de fense measures applied.  
A trend of reduction in the demand for trade defense measures has initiated in 2014, and the 
expectation is that, at the current pace of decline, lower levels of investigation and new trade 
defense measures will be observed in the c oming years.  
Incentivos a la Inversión  
Programas como INNOVAR - AUTO32, Proceso Productivo Brasileño33 y Recap34 se encuentran 
actualmente en proceso ante la OMC. Considerando eventuales finalizaciones o modificaciones, 
¿cómo se encarará el otorgamiento de los  beneficios en los futuros programas y cómo afectará a 
las negociaciones del sector automo triz en curso?  
La decisión con respecto al contencioso en curso ante la OMC que involucra esos programas 
todavía no es definitiva. Eventuales ajustes se harán, si fue ra el caso, en base a las conclusiones 
del Órgano de Solución de Diferencias de la OMC sobre el tema  
Desarrollo futuro (5)  
En este punto se pronostica que en el 2018 habría una expectativa de crecimiento, luego de la 
recesión económica del 2015 -1016.  
Tenie ndo en cuenta las metas establecidas del Gobierno brasileño en materia de reformas 
económicas para lograr el crecimiento, ¿existen cambios en las perspectivas que figuran en este 
punto?  
The government is working in ambitious reform agenda. A constitutiona l amendment that caps 
growth in federal spending in real terms has been passed; a law that provides more flexibility to 
labor regulations and aims to reduce labor litigations was recently enacted; progress has been 
made towards a social security reform and  a reduction of subsidies granted by the National 
Development Bank (BNDES); other structural reforms are also being discussed.  
Although the bulk of the impact of those reforms will be felt on the long -term, short -term impacts 
are not neglible and will alter growth perspectives in the near term. Fiscal consolidation derived 
from the spending cap bill and from social security reform will translate into increasing confidence 
on the sustainability of the economy, fostering private investment and helping to create a 
favorable environment for lower interest rates. Labor reform immediately increases the flexibility 
of the labor market reducing labor costs and improving the overall productivity of the economy. 
Other structural reforms aiming to reduce business c osts in Brazil may help to foster investment.  
It is reasonable to believe that those reforms will significantly contribute to restore confidence and 
reduce uncertainties with favorable effects on the growth outlook for the short and medium terms.  
  
                                                
32 Medidas de estímulo al sector automotriz.  
33 PPB y crédito fiscal del IPI (descuento de hasta 30%) para varios sectores, incluyendo informática, 
electrónicos, TV digital, programa de inclusión digital.  
34 Beneficios fiscales a empresas preponderantemente exportadoras.  WT/TPR/M/358/Add.1  
 
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  PERU  
Pregunta 1 y 2  
3 POLÍTICAS Y PRÁCTICA COMERCIALES, POR MEDIDA  
3.3 Medidas que afectan a la producción y al comercio  
3.3.6 Contratación pública  
Pregunta 1. - En el escenario que un proveedor considere que se han vulnerado sus 
derechos en un proceso de licitación, ¿podría Brasil enunciar cuáles son los tipos de 
recursos de impugnación, ante qué organismo se deben presentar y cuáles son los 
requisito s que se deben cumplir?  
Both administrative and judicial instances are available to providers. Time periods apply to access 
the administrative instance. The judicial instance, however, can be accessed at any time. Detailed 
information on procedures for in ternal review of public procurement can be very extensive and can 
be sought through bilateral cooperation between Brazil and Peru.  
Pregunta 2. - ¿Podría Brasil brindar más información acerca de los procesos de licitación 
a nivel estatal, así como a nivel de  las municipalidades?  
Brazil is working to involve the sub -federal levels in the federal system through:  
a) The promotion of the system through cooperation with other government agencies and;  
b) The development of partnerships to ensure that sub -federal level agencies will employ the 
federal system in case of public bids funded by the federal budget.  
  WT/TPR/M/358/Add.1  
 
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  RUSSIAN FEDERATION  
PART I: QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/358)  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.2 Monetary and ex change rate policy  
Page 15, paragraph 1.10  
Brazil maintains a floating exchange rate system with no restrictions on currency conversion and 
transfers for current international transactions.35  
Question №1:  Could Brazil elaborate which foreign exchange operations remain subject to a 
financial transaction tax of 6.38%? What are the reasons for these operations to remain subject to 
financial transaction tax?  
According to Decree no. 6,306, of December 14, 2007, article 15 -B, VII, IX, X, the following 
foreig n exchange transactions are subject to the financial tax of 6.38%: i) debit or credit card 
company obligation for client's cash withdraws and purchases of goods and services abroad; ii) 
purchases of traveler's checks; iii) charging of international prepaid  travel cards.  
2 TRADE AND INVESTMENT REGIMES  
2.4 Trade Laws and Regulations  
2.4.2 Transparency  
Page 30, paragraph 2.19  
In all countries, lack of transparency, and thus lack of public accountability, creates scope for 
administrative discretion and therefor e corruption. With a view to fighting corruption, since 17 
December 1997, Brazil has been a signatory to the 1997 OECD Convention on Combating Bribery 
of Foreign Public Officials in International Business Transactions (ratification on 24 August 2000, 
imple mentation 11 June 2002), whose 41 parties (as at May 2014) are required to make foreign 
bribery a crime. It is also a signatory to the 2005 UN Convention against Corruption, the first 
global comprehensive international anti -corruption agreement, whose 181 parties (as at end -2016) 
are required to establish criminal and other offences to cover a wide range of acts of corruption; 
Brazil ratified the convention on 15 June 2005. According to the 2014 report of the OECD Working 
Group on Bribery, of the 14 allegat ions since Brazil joined the OECD Convention, only five have 
been investigated and three investigations were still ongoing – a very low number in light of the 
size of Brazil's economy; it, inter alia, recommended that Brazil be more proactive in detecting,  
investigating and prosecuting foreign bribery.  
Question №2: Which measures BNDES, ABGF and other Brazilian export development institutions 
undertake with regard to implementation of the OECD Convention (including its 
Recommendations)?  
In October 2014, th e Phase 3 Report on implementing the OECD Anti -Bribery Convention in Brazil 
was adopted. Since then, Brazil has taken concrete steps to implement the recommendations 
presented in that report in line with the OECD Convention.  
The follow -up report on Brazil  adopted by the OECD Working Group on Bribery last February 
highlighted the "positive progress": of the Working Group's 39 recommendations to Brazil, 18 have 
been fully implemented, 13 partially implemented and 8 not implemented.  
Important actions adopted in the past few years in order to strengthen Brazil's legal framework 
include the enactment of the Corporate Liability Law (Law No. 12,846/2013), which establishes the 
administrative and civil liability of legal persons for corrup tion and corruption -related offences 
committed against national or foreign public administrations. Brazil has also enacted an 
                                                
35 Certain foreign exchange operations remain subject to a financial transaction tax (IOF) of 6.38% 
(Section 4.5.3).  WT/TPR/M/358/Add.1  
 
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  implementing Decree on the Corporate Liability Law and several other legal texts in support of that 
legislation, which clarify the  existing sanctions for State owned enterprises, the effect of 
compliance programmes and mitigating factors on liability, the non -consideration of factors 
forbidden under Article 5 of the aforementioned OECD Convention, Brazil's jurisdiction over legal 
persons, and provide guidance on compliance programs and internal controls.  
The Corporate Liability Law establishes, among other aspects, the prohibition from receiving 
incentives, subsidies, grants, donations or loans from public agencies or entities and fr om public 
financial institutions or government -controlled entities (Article 19, IV). The law, therefore, may be 
applicable to legal persons financed by the BNDES if they perform any of the wrongful acts 
specified by that legislation.  
Regarding the conduct  of due diligence of potential exporters and applicants, since March 1st 2016 
every request for Credit Insurance for Exports is conditioned to the filling out of a compliance 
form. This form is in line with the OECD Working Group on Bribery recommendation with regard to 
requesting information on exporters and presents additional questions necessary to the compliance 
procedure within the Credit Insurance for Exports. This compliance procedure aims at preventing 
not only the crime of bribery of foreign public  official, but also money laundering, financing 
terrorism, and the acts of corruption defined in the Corporate Liability Law. The financing bank 
must also fill a declaration asserting that it proceeded to the due diligence of the exporter before 
consenting  the credit. The information gathered through the form is analyzed in light of a list of 
red flags, which is determinant in the decision to proceed to a deeper process of diligence on the 
operation.  
In April 2016, the BNDES established a work flow to proc eed to consultations with the Ministry of 
Transparency, Oversight and Office of the Comptroller General (CGU) on the existence of 
allegations of foreign bribery regarding applicants to credits to be granted by the Bank. The data 
base consulted by the CGU c ontains information that range from media news to ongoing 
investigations.  
For further information, the follow -up report is available at: http://www.oecd.org/corruption/anti -
bribery/Brazil -Phase -3-Written -Follow -Up-Report -ENG.pdf  
2.6 Foreign Investment Reg ime  
Page 37, paragraph 2.33  
Brazil remains open to and encourages foreign direct investment (FDI) which is prevalent across 
the economy despite foreign ownership limitations in certain sectors. Notwithstanding a drop in 
FDI inflows in 2015 due to economic  recession and political turmoil, Brazil's huge market 
opportunities maintained its position as the most attractive investment location in Latin America 
and the Caribbean, capturing 42% of FDI to the region. Despite some improvement, new 
investment underta kings in Brazil seemingly remain cumbersome, bureaucratic and expensive in 
terms of the rigidity involved in both starting and closing a business, owing to the many 
procedures required and their high cost. The tax burden and labour market rigidities also r emain 
an issue.  
Question №3:  Could Brazil provide more information on whether it is planning and what steps 
have been already undertaken to make investment undertakings less cumbersome, bureaucratic 
and expensive?  
Brazil is implementing several structura l reforms that will have significant impact across the board 
in the economy. The Brazilian Government is establishing conditions for sustainable economic 
growth and to attract investment. Such conditions are based on transparency of regulations, 
improvemen ts in productivity in the production of goods and provision of services, the 
simplification of bureaucratic procedures. Recent economic indexes have shown that the process of 
recovery in the Brazilian economy is under way. For instance, Brazil has ranked 6th among the 
largest recipients of foreign direct investment (FDI) in 2016. The reforms cover a wide range of 
economic areas: government spending, social security, labor legislation, taxation, public -private 
partnerships, among others.  WT/TPR/M/358/Add.1  
 
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  A constitutional amendment enacted in 2016 sets a cap for public spending. The New Fiscal 
Regime under Constitutional Amendment 95 (EC/95) establishes a period of at least 10 years 
during which federal government annual primary spending cannot increase mor e than the previous 
year's rate of inflation. The social security reform proposed by the Government seeks to make the 
system sustainable in light of current demographic changes and trends in the Brazilian population, 
which includes setting a minimum retire ment, with the prospect of eventually raising it for future 
generations. Also Brazilian labor laws will be updated by introducing provisions that are more 
consistent with current practices in the labor market. This includes making the work hours more 
flexible and allowing outsourcing, which will enable a large portion of the labor force, working in 
the informal economy, to enter the formal economy, resulting higher productivity and a more 
competitive environment in the Brazilian economy. The tax reform unde r consideration by the 
government seeks to reduce the complexity of the tax system, making tax collection more efficient 
and simplifying the process.  
Moreover, in September 2016, the Brazilian government launched Projeto Crescer, which changes 
the concess ion models in Brazil to attract domestic and international private sector enterprises 
wishing to partner in infrastructure and privatization projects. Established under the Investment 
Partnership Program (PPI), the project will provide more transparent par tnership contracts and 
legal assurances. The program will also expedite the administrative process for granting 
concessions, in an effort to increase cooperation with the private sector. The Council of the 
Investment Partnership Program was created under t he Office of the President as an advisory 
agency to establish and oversee the PPI. As such, the government can ensure that all relevant 
agencies will carry out their tasks expeditiously and that public infrastructure projects are duly 
released.  
Finally, me asures currently being considered include the following: i) reducing the number of 
procedures necessary to register property; ii) centralizing the process for obtaining a construction 
license in a "one -stop shop," to save time and reduce the number of proc edures; iii) supporting 
the validity and effectiveness of settlements reached by Previous Conciliation Committees, so as to 
reduce the burden on Labor Courts; and iv) making judicial and extrajudicial restructuring 
processes of companies more flexible to i ncrease efficiency.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 42, paragraph 3.9   
IDs are processed according to a risk assessment method that provides for four channels: green 
(automatic clearance), yellow (documentary inspection), red (documentary and physical 
inspection), and grey (documentary, physical and fraud -related inspection). The risk analysis 
factors are regularly updated and include: the importer 's fiscal compliance record; operational and 
financial capacity; frequency of use of SISCOMEX; the nature, volume, and value of imports; 
taxation value; country of origin; and the import regime. In 2015, the authorities introduced 
machine learning and arti ficial intelligence methodologies for targeting and selecting high -risk 
shipments. During the review period, the share of IDs processed through the yellow channel 
decreased steadily, whereas those of the green and red channels increased (Table 3.1).  
Quest ion №4:  Do risk analysis factors include sanitary and phytosanitary criteria? In case of 
positive answer please indicate them.  
ANVISA is the Government body that acts to mitigate the risks of products to human Health, 
including the control of imported pro ducts. ANVISA is currently developing a methodology for 
dealing with import licenses parameterization, which takes these risks into account and organizes 
them in three different color channels: green (automatic release), yellow (documents verification) 
and red (both documents and physical inspection). The risk assessment is to be regularly updated, 
including information such as intrinsic characteristics of the product and their possibility and 
probability of causing damage to consumers in case of nonconform ity, as well as ANVISA's 
historical data of both the importing company and the product imported. The new system under 
development is expected to be completed in December 2017.  WT/TPR/M/358/Add.1  
 
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  3.1.2 Rules of origin  
Page 44, paragraph 3.19  
Brazil applies rules of origin for non -preferential purposes. To be considered as originating, 
products must be wholly obtained or have undergone substantial transformation (becoming 
classifiable under a different four -digit tariff heading) in the declared  country of origin. 
Verifications of non -preferential origin may be carried out by SECEX at the import licensing stage, 
on the basis of a risk assessment. In 2015, the verification procedure was modified with a view to, 
inter alia , reducing the time -frame for conducting investigations. False declarations of origin may 
trigger rejection of an import licence application and refusal to grant such licences for similar 
goods traced to the same exporter.  
Question №5:  Please explain how the verification procedure  was modified? How the verification 
procedure has been carried out since 2015? Brazil applies rules of origin for non -preferential 
purposes. To be considered as originating, products must be wholly obtained or have undergone 
substantial transformation (bec oming classifiable under a different four -digit tariff heading) in the 
declared country of origin. Verifications of non -preferential origin may be carried out by SECEX at 
the import licensing stage, on the basis of a risk assessment. In 2015, the verificat ion procedure 
was modified with a view to, inter alia, reducing the time -frame for conducting investigations. 
False declarations of origin may trigger rejection of an import licence application and refusal to 
grant such licences for similar goods traced to  the same exporter.  
The Secretariat of Foreign Trade (SECEX) of the Ministry of Development, Industry and Foreign 
Trade, through the Department of International Negotiations (DEINT), promotes the non -
preferential origin verification under the aspects of authenticity, veracity and compliance with the 
rules laid down in Law No. 12,546, of December 14th, 2011. The SECEX Ordinance No. 38 of May 
18, 2015, disposes on the special procedures of non -preferential origin verification in applying the 
provisions of a rticle 33 of Law Number 12,546, of December 14th, 2011.  
The most important change in this procedure was the reduction of the time -frame for conducting 
investigations that shall be terminated within one hundred and fifty days from the date of 
commencement ( article 37). This deadline may be extended for up to thirty days by decision of 
DEINT which shall be communicated to the interested parties.  
The SECEX Ordinance No. 38 of May 18, 2015 is available at 
www.mdic.gov.br/images/REPOSITORIO/secex/deint/coreo/inv _nao_preferencial/legislacao/portari
a_secex_38_2015_alterada.pdf and the english version (for reference only) can be accessed in 
http://www.mdic.gov.br/arquivos/dwnl_1449063102.pdf.  
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.3 Federal financing facilities  
Page 71, paragraph 3.124   
BNDES financing is mainly provided to private companies with headquarters and administration in 
Brazil. Individual entrepreneurs and business associations in Brazil (e.g. cargo carriers, rural 
producer s or micro entrepreneurs) are also entitled to financing, regardless of nationality. 
Eligibility for BNDES support is subject to few restrictions regarding operations: the negative list 
comprises banking/financial activities, weapons trade, establishments for adult entertainment, and 
gambling. Certain financial support mechanisms may focus on companies of a specific size or 
foster the development of a local supply chain. For instance, products with a domestic content of 
at least 60% (in value terms) are aut omatically eligible for financing under the Automatic and 
FINAME schemes, while products with local content below the threshold are subject to a non -
automatic analysis procedure. According to the authorities, the BNDES reviews the eligibility 
criteria (inc luding any local content/local production requirements) for its schemes and adapts 
them to changing market conditions.  
Question №6: Which specific instruments were implemented to foster the development of a local 
supply chain? Please illustrate whether any  of the development institutions are eligible to provide WT/TPR/M/358/Add.1  
 
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  support on specific conditions for large infrastructure projects (ports, airports, roadway 
constructions)?  
BNDES support takes into account market conditions and private business plans. In this cont ext, 
investor's decisions about the combination of imports and local productions may lead to the 
development of the local supply chain. However, no BNDES product has the sole purpose of 
developing the supply chain.  
Infrastructure projects in Brazil are ope n to foreign participation and may receive support from any 
development institution –,e.g., by multilateral and national development banks and export credit 
agencies.  
Page 71, paragraph 3.125  
Several BNDES schemes are operated on an interest rate equalizat ion principle, whereby resources 
from the National Treasury are used to cover the difference between the rate charged by the 
BNDES and that effectively paid by borrowers. During 2013 -15, disbursements under interest rate 
equalization schemes totalled R$194 .8 billion, representing 37.9% of total BNDES disbursements. 
The interest rates effectively paid by most borrowers under these schemes were particularly 
attractive: 63.3% of disbursements made were at rates not exceeding 5%, which was well below 
the annual  rate of inflation (Table 1.2). According to the authorities, the bulk of disbursements 
benefitting from interest rate equalization (R$191.6 billion) were made under the Programme for 
the Sustainability of Investment (PSI), which expired in 2015.  
Question №7: Do we understand correctly that the abovementioned scheme allows BNDES to 
provide export support on more favorable conditions? Please specify if there were any struggles 
with regard to the terms of such support program.  
The Programme for the Sustainab ility of Investment (PSI) was an initiative established in 2009 
that encompassed a temporary reduction of the interest rate regularly charged within some 
permanent programs of BNDES, and was directed to operations of enterprises (including export 
companies ) with investment projects which had been adversely affected by the world economic 
crisis since 2008/2009. PSI had a limited endowment and was terminated in December 31, 2015.  
3.3.2 Standards and other technical requirements  
Page 74, paragraph 3.137  
As at 31 December 2016, INMETRO applied the following 148 compulsory conformity assessment 
procedures: certification (114 products and 10 services); conformity declaration by the supplier 
(16 products and 10 services); and inspection (6 products and 4 serv ices). Additional compulsory 
conformity assessment procedures are administered by other competent entities, such as the 
Brazilian Health Regulatory Agency (ANVISA), the National Telecommunications Agency ANATEL, 
and MAPA. SISCOMEX (Section 3.1.1.), accessi ble only to registered users, contains the most up -
to-date information on conformity assessment measures affecting imports.  
Question №8:  Which goods and services were affected by implemented procedures? , The certification 
process of telecommunications pr oducts is held by ANATEL. According to Resolution Nº 242/2000 
(Regulation for Certification), the certification document is a prerequisite to be allowed to sell and 
use telecommunication products in Brazil. The entire certification process is conducted by 
Designated Certification Bodies (OCDs), which are private technical institutions that, upon 
ANATEL's authorization, perform conformity assessment processes for telecommunication products 
and issue "certificates of conformity". Certificates of conformity of  telecommunication products 
issued by the OCDs are a prerequisite to be certified by ANATEL for the legal trading and use of 
these products in Brazil. The list of technical requirements for certification as well as the list of 
products is available at the links below:  
http://www.anatel.gov.br/setorregulado/orientacoes/requisitos -tecnicos -para-certificacao  
http://www.anatel.gov.br/legislacao/resolucoes/15 -2000/129 -resolucao -242 WT/TPR/M/358/Add.1  
 
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  The whole process is described at: 
http://www.anatel.gov.br/Portal/ver ificaDocumentos/documento.asp?numeroPublicacao=318092&
pub=original&filtro=1&documentoPath=318092.pdf .  
Under the aegis of INMETRO, there are 154 compulsory measures into force at present. The 
complete list of regulated products and services is available at  
http://www.inmetro.gov.br/qualidade/rtepac/compulsorios.asp . 
ANVISA is the health regulatory agency of Brazil, and the sanitary regulation published by ANVISA 
includes technical r equirements that products and companies must comply with for products such 
as: cosmetics, sanitizers, medicines, medical devices, pharmaceutical ingredients, blood and blood 
products and pesticides (specifically regarding the impact on human health). The c onformity 
assessment procedures administered by ANVISA include verification of Good Practices (i.e. Good 
Manufacturing Practices, Good Laboratory Practices, Good Distribution Practices, etc.) for the 
range of processes regulated by the Agency. That verific ation might include inspections in 
manufacturing sites located abroad – for the case of medicines, medical devices risk class III and 
IV and selected active pharmaceutical ingredients.  
Page 75, paragraph 3.143  
As at March 2017, there were 7,815 standards in force in Brazil. Between January 2013 and 
January 2017, Brazil adopted 2,557 new standards, some 33% of which were adoptions of 
international (ISO/IEC) standards. Similar statistics on technical regulations w ere not made 
available. Between January 2013 and April 2017, Brazil made 193 regular notifications to the WTO 
Committee on Technical Barriers to Trade, for the most part under Article 2.9 of the TBT 
Agreement. In only 12 of the notified cases (6.2% of the total), the timeliness of the submission 
allowed for a comment period of 60 days or more, whereas in 21.7% of all cases the comment 
period was less than 45 days.  
Question №9:  Please state the reasons for not publishing the statistics on technical regulati ons.  
The information the use of international standards by technical regulations is available in each 
individual notification. There are no complided statistics for the time being.  
3.3.3 Sanitary and phytosanitary requirements  
Page 75, paragraph 3.146  
The National Technical Commission on Biosafety (CTNBio), a multidisciplinary advisory body to the 
Federal Government, remains Brazil's authority for all activities involving genetically modified 
organisms (GMOs). Besides assisting in GMO policy formulation an d elaborating relevant technical 
advice, CTNBio acts as the national certifying body for quality systems in biosafety and is the sole 
issuer of research authorizations and of commercial approvals for GMOs. Entities wishing to 
engage in any activity involvi ng GMOs must obtain a certificate of quality in biosafety and a prior 
authorization from CTNBio.  
Question №10:  Could Brazil indicate the procedure for obtaining the quality certificate of 
Biosafety? What documents should be provided to obtain this certificate?  
Information available at the following address: http://ctnbio.mcti.gov.br/inicio . 
Page 78, paragraph 3.15 7 
Brazil prohibits the commercialization, including imports and exports, of hormonal substances with 
anabolic characteristics, unless intended for therapeutic or research use. The use of substances 
with anabolic hormonal properties for the purpose of promo ting growth and weight in bovines and 
poultry destined for slaughter is banned; imports of hormone -treated meat are also prohibited.  
Question №11:  What measures are taken to control the prohibition of the use of hormonal 
substances with anabolic characteri stics? Are there any researches to detect these substances in 
meat being conducted? Please elaborate how effective is the prohibition on commercialization of WT/TPR/M/358/Add.1  
 
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  hormonal substances? Under what foreign trade operations (import or export) infringements in this 
area are the most frequently revealed?  
The use of hormonal substances with anabolic characteristics in meat is regulated in Brazil by the 
Ministry of Agriculture.  
The general regulation that establishes control measures over hormonal substances with anab olic 
characteristic for therapeutic or research use, both for domestic and imported substances, is 
Portaria SVS 344/1998. This legislation includes a list of controlled substances in Brazil, which is 
periodically updated by ANVISA. The most recent update i s Resolution RDC 159/2017. This 
regulation might be complemented by specific norms of other Government agencies, regulating the 
use of these controlled substances for purposes other than human use.  
3.3.4 Competition policy and price controls  
Question №12:  What mechanisms and procedures are used in consideration of cases concerning 
intellectual property?  
The Industrial Property Act (Law 9.279/2016) states that a patent may be "licensed on a 
compulsory basis" if the right holder "exercises his rights (…) in  an abusive manner, or by means 
thereof engages in abuse of economic power, proven pursuant to law in an administrative or 
judicial decision" (Art. 68). Brazil's competition authority (Cade) adjudicates on whether a merger 
will hurt competition based on th e guidelines laid out by law 12.529/2011, which in its Aticle 61, 
par. 2, item V lists compulsory licensing of intellectual property rights as one of the possible 
remedies for a situation of excessive market concentration.  
Industrial Property Law Nº 9,279 (14 May 1996), Chapter VI, presents Crimes of Unfair 
Competition (Available at http://www.wipo.int/wipolex/en/details.jsp?id=515).  
Question №13:  Could Brazil describe the procedure of considering mergers in markets which 
geographic boundaries are defined a s global?  
The competition authority – CADE – will only consider the merging companies' share of the 
Brazilian market (Chapter 2, Art. 2, law 12.529) when assessing whether the merge hurts 
competition.  
3.3.4.2 Price controls  
Page 81, paragraph 3.168  
Although formally deregulated since 2002, consumer prices of refined petroleum products are de 
facto fixed by the state -controlled PETROBRAS, which dominates Brazil's refining and wholesale 
distribution (Section 4.3.3). Residential electricity and fixed -line telephone tariffs are set through 
concession contracts awarded by the Federal Government. Since 2006, their annual readjustments 
are linked to general price indices. Prices for some 90% of pharmaceutical products are regulated 
by way of maximum manufact urer and consumer prices, which are adjusted annually. The timing 
and size of readjustment of the remaining regulated prices is at the discretion of the respective 
competent entities.  
Question №14: How could Brazil ensure that price control measures on go ods take into account 
the interests of exporting Members, as provided for in Article III:9 of the GATT 1994? (DACESS -
MRE, MDIC, CADE, SAIN -MF) 
Measures are taken in conformity with Brazil´s obligations under the WTO agreements.  
3.3.7 Intellectual property rights  
Question №15: Could Brazil kindly provide in the framework of information exchange on the 
specific features of national IP systems more details on the cases of application of anti -monopoly / 
unfair competition laws to the relations arising from the use of IP rights.  WT/TPR/M/358/Add.1  
 
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   Industrial Property Law Nº 9,279 (14 May 1996), Chapter VI, presents Crimes of Unfair 
Competition (Available at http://www.wipo.int/wipolex/en/details.jsp?id=515), however INPI is not 
responsible for the application of it.  
3.3.7.1  Overvi ew 
Page 85, paragraph 3.189, table 3.22 
Brazil's institutional framework for intellectual property rights (IPRs) has not changed significantly 
during the period under review. Policy formulation in the area of industrial property is the 
responsibility of th e MDIC, whereas that related to copyright is the remit of the Ministry of Culture. 
The National Industrial Property Institute (INPI) administers the industrial property system. The 
collective management of copyright is carried out by several associations: the Central Bureau for 
Collection and Distribution (ECAD); Associação Brasileira de Música e Artes ; Associação de 
Músicos; Arranjadores e Regentes ; Associação de Intérpretes e Músicos, Sociedade Brasileira  
de Autores, Compositores e Escritores de Música ; Sociedade Independente de Compositores e 
Autores Musicais ; Sociedade Brasileira de Administração e Proteção de Direitos Intelectuais ; União 
Brasileira de Compositores ; Associação Brasileira de Autores, Compositores, Intérpretes e Músicos ; 
Sociedade Adminis tradora de Direitos de Execução Musical do Brasil ; Associação Brasileira de 
Direitos de Autores Visuais ; and Associação Defensora de Direitos Autorais . ECAD is the sole entity 
responsible for collecting and distributing public performance royalties.  
Quest ion №16: The table 3.22 « National IPR legislation, 2017»  does not mention domain names 
as objects of intellectual property rights. Are domain names protected by law? If yes, please 
describe the respective legal protection mechanisms.  
The Brazilian Interne t Steering Committee ("Comitê Gestor da Internet" - CGI), created in 1995, is 
the public body responsible to coordinate and integrate Internet governance in Brazil. It comprises 
21 members from government, private sector, civil society and academic communi ty. Within its 
mandates, the CGI is responsible for the allocation of Internet addresses (IPs) and registration in 
the <.br> domain. Any Brazilian natural person or a juridical person established in Brazil can 
request registration of domain names to the CG I, in accordance with its resolutions (especially 
resolution CGI.br/RES/2008/008/P). A domain name could be challenged on grounds of 
inappropriate use of a given name through the Administrative System of Conflicts of Internet 
(SACI -Adm), which establishes an administrative procedure for conflict resolution. The Brazilian 
Law also provides for recourse to arbitration for dispute settlement.  
Question №17: The table does not mention if legal protection is granted to trade secrets (know -
how). Is know -how consid ered as an object of IP rights? If yes, please describe the respective 
legal protection mechanisms.  
Know how is not considered as an object of IP rights. However, as additional information, 
according to the Normative Instruction Nº 70/2017, Article 2, III  (a): INPI will record the license, 
sublicense and assignment agreements of technology supply contracts ("know -how") comprising 
the acquisition of knowledge and techniques not covered by industrial property rights or the 
provision of technological informat ion, intended for the production of goods and services.  
Question №18: The WTO Secretariat's Report informs that trademarks are protected by 
Industrial Property Law. Does the said law (or other applicable acts) provide for registration of 
hologram marks, co lour per se marks, sound marks and position marks? If yes, are there any 
specific guidelines available in English containing rules for examination of such marks? If yes, 
please provide links. Are there any actual cases of successful registration of such ma rks? If yes, 
please provide examples.  
The Brazilian Industrial Property Law, which regulates trademarks registration, does not protect 
hologram marks, colour per se marks, sound marks and position marks.  WT/TPR/M/358/Add.1  
 
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  3.3.7.3 Copyright  
Page 89, paragraph 3.200  
During t he review period, Brazil updated its legislation on the collective management of copyright 
and related rights, and created a Permanent Commission for the Improvement of Collective 
Management (CPAGC). Brazil also adopted a civil rights framework for the Int ernet, which foresees 
the elaboration of specific legislation regulating the liability for damages resulting from content 
managed by third parties.  
Question №19: Please provide detailed information on the current system of collective 
management of copyrig ht and related rights.  
The law guarantees the right of authors and other right holders to join Collective Management 
Organizations (CMOs) in order to facilitate the collection and the distribution of copyright royalties. 
Regarding specifically the public performance rights, the sole organization responsible for 
collecting and distributing royalties resulting from public performance is the Central Bureau for 
Collection and Distribution (ECAD). ECAD is composed by several music associations, which 
represent composers, performers, m usicians, publishers and phonogram producers. These 
associations are responsible for taking decisions at ECAD, which has the monopoly of the collection 
and distribution of public performance royalties.  
Some years ago, authors and performers started compla ining about the lack of transparency and 
accountability in the collective management of copyright and related rights. In this context, right 
holders and users brought many complaints to the courts, which had negative impacts to the 
system due to the excess ive quantity of lawsuits. Then, the government started to discuss a 
Copyright Reform focused on collective management.  
The result was the approval of the Law n. 12.853 in 2013. The new law and its succeeding 
regulations established new obligations and pen alties for both CMOs and users and created the 
Permanent Commission for the Improvement of Collective Management (CPAGC). CMOs are now 
subject to a process of authorization to allow them to collect and distribute copyright royalties. In 
this regard, they m ust send documents to the Ministry of Culture, which is responsible for granting 
the authorization.  
The requirements to get the authorization refer to providing transparency and accountability for 
members and users. The penalty for non -compliance with the  rules established by the law, in this 
case, is a written warning indicating what must be changed and the refusal of the authorization if 
the CMOs do not accomplish it. CMOs must comply with some rules, such as providing a 
communication channel with their members and making accessible information on the criteria they 
use to charge users. Members of CMOs may submit a complaint to the Ministry of Culture in the 
case of non -compliance with these rules.  
At the same time, the creation of the Permanent Commissio n aimed to provide a multilateral 
forum of discussion to different stakeholders, including government officers, copyright owners and 
users. The Commission is responsible for analyzing outcomes reached by collective management 
organizations as well as discu ssing international standards in order to improve the collective 
management in Brazil. The Commission may give opinions and recommendations to the Ministry of 
Culture on measures regarding Collective Management Organizations (CMOs) and it can suggest 
the p roduction of reports and studies. Recently, their members have been discussions questions 
regarding limits and standards of collective management and individual management of rights. In 
sum, CMOs must comply with standards related to accountability and tra nsparency. There are 
specific rules aimed at public performance rights, as ECAD enjoys a statutory monopoly.  
Question №20: Please provide detailed information on the current legislation on liability for 
copyright infringements on the Internet.  
Articles 18 to 21 of the Civil Rights Framework for the Internet deal with the liability of Internet 
service providers (ISPs) for third parties' infringing content. The general rule is that the Internet 
Service Provider will not be deemed liable for user -generated content. Nevertheless, according to 
article 19, infringements regarding copyright and related rights must be subject to new legal WT/TPR/M/358/Add.1  
 
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  provisions. Therefore, the government of Brazil must discuss a new legislation concerning liability 
of ISPs in copyri ght infringements committed by third parties. The rules of the current Copyright 
Act must be applied until there is a specific regulation. The Copyright Act does not have any 
specific provisions on ISPs' liability. However, judicial authorities may order t he suspension of the 
transmission or the communication the public of infringing content. The new legislation would 
establish specific rules on ISPs' liability. However, Brazil has not discussed a particular proposal 
yet. In 2015, the government organized a  series of meetings with different stakeholders to discuss 
issues regarding copyright protection in the digital environment, but there was not any specific 
proposal on ISPs' liability.  
4 TRADE POLICIES BY SECTOR  
4.2 Energy  
4.2.2 Policy and institutions  
Page 109, paragraph 4.46  
Brazil's Ten -Year Plan for Energy Expansion 2024 (Plano Decenal de Expansão de Energia 2024) is 
focused on striking a balance between the economic growth projections and the necessary 
expansion of energy supply, as well as ensuring energy supply at the appropriate cost and on a 
technical and environmentally sustainable basis. It also, inter alia, aims at raising the share of 
renewable sources in the energy and electricity generation matrixes to 45.2% and 86% by 2024 
respectively. To attain these objectives, a total investment of R$1.4 trillion is planned, of which 
70.6% in oil and natural gas, 26.7% in electricity, and 2.6% in liquid biofuels. Furthermore, in 
November 2016, an Investment Partnership Programme set the priority areas fo r action in energy 
and mining. These priorities involved bidding rounds of blocks of oil and natural gas, electricity 
distribution concessions, hydropower plants concessions, and operation/management concessions 
for mining projects with assets owned by the  Mineral Resources Research Company (CPRM). The 
National Bank for Economic and Social Development (BNDES) would be in charge of the 
divestment in the electricity distribution service. These bidding rounds provide opportunities for 
both public and private ( domestic and foreign) companies.  
Question №21: In a view of 2024 Energy Expansion program, including its principal goals and 
already launched plans of the renewables' sector development, does further action plan assume 
any specific programs to promote coop eration between SME and vertically integrated companies 
(or other majors) in co -projects that address green infrastructure, water and energy efficiency, or 
other environmentally innovative activities?  
Detailed information may be found at the following addr ess: 
http://www.epe.gov.br/PDEE/Forms/EPEEstudo.aspx . 
4.2.3 Hydrocarbons and biofuels  
4.2.3.3 Biofuels  
4.2.3.3.2 Biodiesel  
Page 118 paragraph 4.72  
The domestic biodiesel market remains regulated by the Government through an ANP operated 
electronic auction system (reverse auctions), which gives preference to producers certified with 
the Social Fuel Seal. The ANP sets the volume of government purchases and a maximum price that 
suppliers must underbid. The distributors are responsible for the commercialization  of biodiesel. 
PETROBRAS operates as a system administrator and has no interference with the volumes to be 
acquired by distributors. Biodiesel prices received by producers are determined by the auction 
system. At auctions held between June 2014 and October  2016, average prices followed an overall 
rising trend and ranged from R$1,884.15 per m3 (June 2014) to R$2,855.10 per m3 (October 
2016).  
Question №22: Please provide details on how the Programme to Strengthen Household 
Agriculture (PRONAF) with some preferences given to local suppliers  is in compliance with WTO 
Rules.  WT/TPR/M/358/Add.1  
 
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  As mentioned in the section "Agricultural/rural credit", the PRONAF provides credit to small -scale 
producers with a gross annual income of up to R$ 360.000,00 per family, in order to pr omote rural 
development and poverty alleviation36. 
PART II: QUESTIONS ON THE GOVERNMENT REPORT (WT/TPR/G/358)  
4 TRADE INSTITUTIONAL AND REGULATORY FRAMEWORK  
4.1 Cross -Cutting Issues  
4.1.7 Intellectual property  
Page 25, paragraph 4.40  
New PPH pilot programs are being negotiated. Together with PPH pilot programs, actions on patent 
priority exams were in place in 2016. The first one consists of transforming the Green Patents pilot 
program into a definitive service offered by INPI, making it possible to  prioritize patent 
requirements regarding the environment and green technologies. The second action is a pilot 
project that allows small businesses, the financial resources of which are generally reduced, to 
have their patent requirements prioritized.  
Ques tion №23: Taking into account various measures taken by Brazil government to facilitate 
expansion of green technologies, please outline some examples of the projects that have already 
been supported under the Green Patents program. Are there any specific c riteria that determine 
project eligibility for such support?  
The Green Patents program includes technologies for alternative energy, transportation, energy 
conservation, waste management and agriculture. Applications for patents that have not passed a 
technical examination and which have a maximum of 15 claims (three of them independent) can 
be submitted.  
The Green Patents pilot program started on 17 April 2012 and its third phase ended on 16 April 
2016. After four years in the pilot scheme, the Green P atents priority examination became a 
permanent service of INPI, since December 6 2016, due to the good results achieved. Considering 
the 480 applications during the pilot program, 325 were considered eligible, with 112 applications 
deferred and 115 rejecte d until September 2016. The maximum time for these decisions was 
about two years.  
Some examples of granted Green Patents are a Process of environmental recovery of extinct or 
exhausted mining areas and a generator of wind power in platform in the base of t he capture of 
the winds, among several others.  
  
                                                
36 WTO Ministerial Decision, General Services, WT/MIN(13)/37 WT/L/912, December 11, 2013.  WT/TPR/M/358/Add.1  
 
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  SINGAPORE  
PART I: QUESTIONS RE GARDING THE SECRETARIAT REPORT  
II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES  
2.4 Trade Laws and Regulations  
Page 29 (Para 2.16) – Regulatory Framework and Reform  
1. We note that Brazil is taking efforts to review and streamline their regulations for health 
products and has also intensified its participation in international harmonization and regulatory 
convergence initiatives in the area of medicines, medical devices and cosmetics. We also note that 
the Brazilian Health Regulatory Agency (ANVISA) has revised and consolidated 1,200 rules in the 
last 16 years that affect, inter alia,  food industries, health products, and medicines.  
What is the status or the extent of it s review of regulations of health products, especially those 
pertaining to the registration of imported products?  
It is worth noting that ANVISA's regulations relating to pre -sales authorizations are equally 
applicable to products manufactured in Brazil a nd imported products. Hence, the present answer 
applies to every health product (medical device) sold in Brazil. For health products, the sanitary 
regulations referring to technical requirements for their market approval (including later alterations 
and re validations) are currently under revision and internal evaluation. This initial phase aims at 
elaborating a draft proposal, that is still to be taken to public consultation following five steps: 
publication of initiative of regulatory action, instruction a nd elaboration of proposal (RIA and public 
consultation), complementary instruction (when the subject requires public hearings, technical 
visits, working groups, targeted consultations, or other optional actives), and final deliberation. 
When there is a pu blic consultation on the issue, this information is made available to TBT focal 
points. Regulations referring to technical requirements for health products' market approval are 
included in ANVISA's Regulatory Agenda.  
2.6 Foreign Investment Regimes  
Page 40 (Para 2.40) – Bilateral Treaties and International Cooperation  
2. We note that  Brazil has developed the Cooperation and Facilitation Investment Agreement 
(CIFA) as a new model of investment agreements to replace Bilateral Investment, Promotion and 
Protection Agreements (BITs).  
What are the key differences between the CIFA and the traditional BITs?  
The Cooperation and Facilitation Investment Agreement (CFIA) is an innovative alternative to 
traditional investment agreements, seeking to overcome its limitations  and litigious approach by 
fostering a more dynamic and constructive relationship between the Parties. Developed on the 
basis of discussions with international organizations, such as UNCTAD and OECD, and of extensive 
consultations with the Brazilian privat e sector, the CFIA seeks to meet investors´ needs in a 
concrete, pragmatic and proactive manner, while at the same time respecting the development 
strategy and the regulatory rights of host countries.  
The CFIA establishes a set of measures that reduce the investor's exposure to risk and a 
framework for the treatment of investors and their investments. It contains guarantees of non -
discrimination (national treatment and most favored nation treatment), tr ansparency clauses and 
specific conditions for cases of direct expropriation, as well as compensation in case of conflicts 
and guarantees for international transfers.  
One of the main pillars of the CFIA is institutional governance. The model proposes the 
establishment of a Focal Point/Ombudsmen in each Party and the creation of a Joint Committee. 
The Focal Point/Ombudsmen acts as a facilitator of the relationship between the investors and the 
host country governments, promoting interaction with the relevan t authorities and providing 
information support. In Brazil, the "Ombudsman for Direct Investment" (OID) was established WT/TPR/M/358/Add.1  
 
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  within CAMEX, the Foreign Trade Board, an inter -ministerial body linked to the Office of the 
President of the Republic.  
The Joint Commit tee is composed of government representatives of both Parties and oversees the 
implementation of the Agreement. It is also responsible for the sharing of information regarding 
investment opportunities, bilateral investment cooperation and facilitation init iatives. Furthermore, 
the Joint Committee acts in the prevention of disputes and encourages the amicable settlement of 
any issues involving bilateral investment. While traditional Bilateral Investment Treaties (BITs) 
focus on protecting investment through mechanisms of Investor -State Dispute Settlement (ISDS), 
the Brazilian model focuses on dispute prevention mechanisms and provide for mandatory and 
legally binding State -to-State arbitration, much like the dispute settlement system in the World 
Trade Organi zation.  
The core of the Brazilian model is promoting an alternative to ISDS and indirect expropriation 
clauses, which were historically considered not only a discrimination against national investors, but 
also a hindrance to the adoption of public policie s. 
How will the provisions under the CIFA address the shortcomings in the traditional BIT?  
The CFIA model seeks to fulfill certain legal loopholes identified in traditional BITs, such as 
provisions of the Investor -State Dispute Settlement (ISDS), which were considered discriminatory 
against national investors, and the indirect expropriation clause, that was seen as a possible 
hindrance on the adoption of public policies.  
Dispute prevention is an equally important feature of the CFIA. While traditional BI Ts focus on 
promoting investment through the right for investors to litigate against the host State (ISDS), the 
Brazilian model focuses on dispute prevention mechanisms and provide for mandatory and legally 
binding State -to-State arbitration, much like the  dispute settlement system in the World Trade 
Organization.  
3. Trade Policies and Practices by Measure  
Pages 42 and 43 (Para 3.9 and 3.10) - Customs procedures, valuation, and requirements  
3. We note that importers may use a simplified import declaration (SID ) for certain shipments 
whose value does not exceed US$3000, and for some non -commercial imports.  
How different is the SID from the import declaration (ID) in terms of the number of fields, and 
information required?  
There is differentiation between ID(1)  and SID(2) in respect of the fields to be filled, according to 
the type of operation carried out and the declaration to be used.  
An ID has a total of 112 fields to fill out and a SID has 41 fields. Not all fields are filled out, since, 
as said before, it depends on the type of operation performed and the declaration to be used.  
For example, an operation by sea transport mode has different fields from an airway transport 
mode operation.  
A declaration lodged to support a clearance for home use has different fields from a declaration for 
use in the temporary admission regime . 
Is an HS Code required?  
Yes. The Import Declaration (ID) should always have the corresponding goods HS Codes. There 
may be several goods with different HS codes in the same declaration.  
The Simplified Import Declaration (SID) also requires the HS Code, but in some cases, as it is in 
the simplified taxation regime, the TSP(3) Code, which is a simplified nomenclature code, will be 
required.  WT/TPR/M/358/Add.1  
 
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  The SID may present different goods with different HS classification codes, in the same way as in 
ID. 
DI is the Brazilian acronym for Import Declaration.  
DSI is the Brazilian acronym for Simplified Import Declaration.  
Acronym for "Simplified Commodity Description and Coding Table".  
Are these simp lified import declarations, like IDs, subject to the targeting and selection of high -
risk shipments?  
Yes. Each import and export declaration is subject to risk analysis regardless of the type of the 
declaration . 
  WT/TPR/M/358/Add.1  
 
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  SWITZERLAND  
Report by the Secretariat (WT /TPR/S/358)  
2.5 Trade Agreements and Arrangements  
2.5.2.1.1 MERCOSUR  
Para 2.27:  The MERCOSUR customs union covers all products with the exception of sugar and 
automobiles. The report states that there are no plans for liberalized sugar trade within the 
customs union. As for the automotive sector, the report indicates that market acce ss is currently 
negotiated bilaterally between MERCOSUR -states.  
Question 1:  Are there plans to integrate the automotive sector into the customs union?  
Brazil has negotiated bilateral trade agreements for the automotive sector with Argentina and 
Uruguay. W ith Paraguay, negotiations on this subject are still under way. Brazil supports the 
integration of the automotive sector into the customs union. Decision n. 56/10, adopted by the 
Common Market Council, provides for the resumption of negotiations so as to e stablish a Common 
Automotive Policy.  
Para 2.28 mentions the Distribution of Customs Revenue in MERCOSUR  
Question 2:  Can Brazil give more information on the customs revenue distribution mechanism 
which is envisaged ?  
The full implementation of the Eliminati on of Double Collection of Common External Tariffs (CET) 
and the Distribution of Customs Revenue in MERCOSUR, as established in the Decisions CMC 
54/04 and 10/10, is still in the process of regulation. At the moment, only the elements 
established for the f irst stage are in force. The elements of the second and third stages, including 
the customs revenue distribution mechanism, are still in the process of negotiation and definition 
among the member States.  
3.1.3 Tariffs  
3.1.3.1 Applied MFN tariff  
Para 3.28:  The report lists three MERCOSUR mechanisms allowing for derogations from the 
common external tariff (CET). This gives MERCOSUR -countries the possibility to deviate from the 
CET and levy individual duties upon import on goods from outside MERCOSUR.  
Questi on 3:  How are these derogations influencing intra -MERCOSUR trade? For example: Say 
Brazil exempts a certain tariff line from the CET using the basic list of national exemptions. What 
duties are charged if a product is imported from another MERCOSUR -member – none at all 
(because of MERCOSUR being a customs union), the rate Brazil applies for third countries or the 
rate agreed upon in the CET before the exemptions were implemented?  
The implementation of exceptions to CET does affect Mercosur members since th ey are part of the 
custom union and already benefit from Free Trade Agreements among themselves. Thus intrabloc 
goods are exempt from import duties.  
Para 3.29:  It is stated that the deadline for the elimination of Brazil 's basic list of national 
exemption s from the common external tariff (CET) has been extended until 31 December 2021.  
Question 4:  What are the reasons for the extension of the mentioned deadline?  
The extension of the deadline for the elimination of Brazil's basic list of national exemptions to the 
CET derives from Decision n. 26/2015, approved by MERCOSUR Common Market Council, in July, 
2015, which allowed Brazil to extend its list up to 31 December 2021, having in mind that the 
achievement of Assunção Treaty's goals demand the adoption of tr ade policy instruments which 
improve regional competitiveness and take into account global economic conjuncture.  Moreover, 
the national exemptions to the Common External Tariff (CET) have worked as an important 
adjustment tool to deal with the asymmetries between MERCOSUR member -states.  WT/TPR/M/358/Add.1  
 
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  Para 3.31:  The report states that Brazil maintains 26 individual tariff quotas outside the CET .  
Question 5:  Which products are subject to such individual tariff quotas?  
The list of products subject to tariff quotas is available in Annex III of SECEX Ordinance 
Nº 23/2011. Link to access the SECEX Ordinance Nº 23/2011 . 
http://portal.siscomex.gov.br /legislacao/biblioteca -de-arquivos/secex/portaria -no-23-de-14-de-
julho-de-2011. Such list may also be found at: 
http://www.sai n.fazenda.gov.br/assuntos/integracao -regional -e-comercio -
exterior/gtar#AcompanhamentoDeMedidas .  
Para 3.32:  It is mentioned that Brazil qualifies for a mechanism that allows it to apply higher -than-
CET rates on a number of tariff lines in order to address trade imbalances.  
Question 6:  What is meant exactly by "addressing trade imbalances "? How does the mechanism 
exactly function? Which products are concerned? Are the mentioned exemptions part of the 
national exemptions reviewed under paragraph 3.28 or are they supplementary?  
Para 3.32 refers to Decision CMC 27/15, which allows MERCOSUR Me mber States to temporarily 
raise tariff rates above CET rates, and is different from the national exemptions reviewed under 
paragraph 3.28. According to Decision 27/15, tariff raises requests must be submitted to the 
consideration of other Member States. T he increased tariff may be applied for a period of up to 12 
months. The measures are subject to semi -annual evaluations by the MERCOSUR Trade 
Commission (CCM).  
As mentioned in the Secretariat 's Report, Brazil has not used the mechanism provided for in 
Decision CMC 27/15 to date.  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Para 3.53:  The levying of customs duties remains with the competent authorities in Brazil even 
though Brazil is part of the Mercosur customs union.  
Question 7:  Why are the measures not taken at the level of Mercosur? How does Brazil/Mercosur 
avoid circumvention within the Customs Union?  
Until this date there is no provision for conducting investigations or taking measures at the level of 
Mercosur. Therefore, each member conducts investigations based on its own legislation. Besides, 
each of the member countries currently adopts its own mea sures to avoid circumvention. It is 
important to note that CMC Decision 22/2002, which lays down procedures and regulations for 
antidumping and subsidies investigations in intra -Mercosur trade, has only been internalized by 
Brazil and is therefore not in f orce. 
Para 3.55:  The "domestic industry representativeness threshold for the admissibility of AD 
investigation applications was lowered by Brazil ". 
Question 8:  Could Brazil indicate the reasons why these changes were undertaken and for which 
cases the thre shold was lowered to 25% and even less?  
This provision is applicable in the case of fragmented industries involving an exceptionally large 
number of domestic producers. As provided for in Paragraph 7 of Article 37 of Decree No. 8,058, of 
2013, in the case  of a fragmented industry, an application containing information on domestic 
producers accounting for less than twenty -five percent (25%) of total production of the like 
product during the period of dumping investigation may be accepted .  
Additionally, Par agraph 3 of the aforementioned Article establishes that in such cases the degree 
of support for or opposition to the application may be determined by using statistically valid 
sampling techniques .  
In fact, there was a further detailing on the admissibilit y of an application based on the ADA, 
especially with regard to Articles 5.1 and 5.4 .  WT/TPR/M/358/Add.1  
 
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  Para 3.56:  According to the Secretariat 's report, under Brazil 's legislation, AD and CV 
investigations may be initiated simultaneously.  
Question 9:  Could Brazil elaborat e on the advantages and constraints from its perspective of such 
simultaneous investigations?  
Each investigation is conducted separately and under specific regulations, Decree 1.751, of 1995, 
for CVD investigations, and Decree 8.058, of 2013, for antidump ing investigations. The advantage 
is that the domestic industry could be protected from the injurious effects of both practices in case 
both an AD and a CVD duty should be applied. The constraint relates to GATT Article VI.5, under 
which no product of the territory of any contracting party imported into the territory of any other 
contracting party shall be subject to both anti -dumping and countervailing duties to compensate 
for the same situation of dumping or export subsidization.  
Para 3.58:  The report by the Secretariat notes that notwithstanding the downward trend in 
investigations, the incidence of Brazilian trade remedies nearly doubled during the period under 
review.  
Question 10:  Could Brazil elaborate on the reasons for such an increase? ( 
The increase or decrease in contingency measures does not depend solely on DECOM to the extent 
that the decision to submit a petition, as a rule, falls on the domestic industry. That said, out of all 
investigations actually initiated by the Brazilian inves tigating authority (Departamento de Defesa 
Comercial – DECOM), about 42% do not result in the imposition of definitive measures.  
Nevertheless, two main causes can be mentioned for the increase in the number of measures in 
force since 2012. Firstly, the in ternational crisis of 2008, which has had a substantial impact on 
the volume and patterns of international trade, including the retraction of certain trade flows, the 
decrease of demand and the redirection of production surpluses to potential recipient mar kets, 
such as Brazil, which, at the time, was still in a good overall economic situation. Another reason 
was the appreciation of the Brazilian currency, which contributed to the increase of Brazilian 
imports, and which, in this context of crisis, resulted in a greater demand for trade defense 
instruments by the Brazilian private sector. As a result, between 2011 and 2013, there was also an 
increase in the number of investigations initiated and of trade defense measures applied.  
Thus, although there is a dow nward trend in the number of petitions filed and in the number of 
investigations initiated since 2014, the average number of investigations initiated between 2012 
and 2016 has resulted in an increase in the stock of trade defense measures applied.  
A trend of reduction in the demand for trade defense measures has initiated in 2014, and the 
expectation is that, at the current pace of decline, lower levels of investigation and new trade 
defense measures will be observed in the coming years.  
3.2.2 Taxes, charge s, and levies  
Para 3.66 -3.68:  
Question 11:  Are export duties charged within MERCOSUR? If not, how does Brazil prevent 
exporters from using the free circulation of goods within the MERCOSUR customs union to avoid 
Brazilian export duties from exporting via a nother MERCOSUR -country?  
As mentioned in the Secretariat 's Report, Brazil adopts export taxes for a very limited list of 
products: cigarettes containing tobacco; raw hides and skins; and arms and ammunition, parts 
and accessories thereof. As a general rule, export taxes are charged within MERCOSUR, except for 
the selling of arms and ammunition, parts and accessories in relation to Argentina. Only products 
that comply with MERCOSUR´s rules of origin can benefit from the free circulation of goods.  
Para 3.67:  The report states that Brazil 's legislation allows to int roduce export duties on all 
products, whereas in practice export duties are only raised on three product groups (table 3.8).  
Question 12:  Are there plans to eliminate export duties on these remaining product groups?  WT/TPR/M/358/Add.1  
 
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  In general terms, although Brazil does not make extent use of export tariffs, they remain a 
legitimate tool to counterbalance tariff escalation in importing countries. As to the specific export 
tariff currently in force in Brazil, their status may be reexamined by our Foreign Trade Board 
(CAMEX ). At this moment, there are no plans to eliminate such export duties.  
3.3 Measures Affecting Production and Trade  
3.3.1.1 Overview  
Table 3.13  shows the 11 federal subsidy programmes of Brazil. Subsidies for fossil fuel production 
may have considerable effects on trade by affecting the rate and timing of development of new 
fields, which is likely leading to an extra production and thus depressin g fossil fuel prices.  
Question 13:  Are production subsidies for fossil fuels included in the programmes mentioned in 
table 3.13? Does these programmes include other consumer subsidies to fossil fuels outside 
fisheries sector? What are generally Brazil 's objectives and policies with regard to fossil fuels 
subsidies and its reduction or elimination with regard to environmental protection?  
Yes, subsidies for fossil fuels are included in the programs mentioned in table 3.13. The subsidies 
for fossil fuels mentioned in table 3.13 are restricted to the fisheries sector. Regarding the 
Program for economic subvention to the price of diesel oil used by fishing vessels, listed in table 
3.13, its objective is the equalization of the price of national marine diesel  oil to the price of 
international marine diesel oil, thus guaranteeing competitiveness to the Brazilian fisheries sector. 
In what regards Brazil's objectives and policies to fossil fuels subsidies, please refer to the answer 
of question 22.  
3.3.4.1 Compet ition policy  
Para 3.166:   
Question 14:  Does Brazil and the other Mercosur -States intend to conclude a cooperation 
agreement? Are there any intentions to harmonize competition legislation with other states?  
The Mercosur Agreement on Competition Defense was  signed on 16 December 2010 and, after 
that, the Mercosur members had to sanction the document. The Republic of Argentina ratified the 
document in 2011. The Brazilian National Congress approved the Agreement in December 2016 
and the document is now pending  ratification.  
The Agreement aims at promoting and strengthening cooperation among Mercosur countries by 
means of the creation of favorable conditions to the development of multilateral relations on 
competition matters. In this sense, the Agreement is subj ect to the respective national laws and, 
in particular, the protection of confidential information as provided under their relevant 
competition laws. Thus, there is not intentions to harmonize national legislations, nor is required 
any legislative change. The Agreement foresees that cooperation between the Mercosur members 
should occur in their mutual interest to exchange non -confidential information, experiences and 
views with regard to competition defense.  
3.3.6 Government procurement  
Para 3.174  mentions Brazil 's participation in negotiations for market access in the field of 
government procurement.  
Question 15:  Does Brazil intend to accede the WTO GPA?   
In this regard, Brazil has engaged in bilateral or regional initiatives related to public procurement 
commitments based on the WTO GPA principles.  
Para. 3.178  mentions that international tendering is mainly used for procurement contracts funded 
by international institutions or cooperation agencies and that for national tendering, a legal 
representation in Brazil is necessary.  WT/TPR/M/358/Add.1  
 
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  Question 16:  What are the opportunities for foreign suppliers to access the Brazilian government 
procurement market with the current legislation?  
Besides procurement contracts funded by international institutions or cooperation agenci es, 
defense procurement, infra -structure concession bids and tendering procedures declared deserted 
are usually open to international participation.  
Para 3.179:  
Question 17:  How are the preferences for Brazilian companies mentioned in para. 3.179 
compatibl e with the principle of value for money and most advantageous offer mentioned under 
the same paragraph.  
Article 3 of Law 8.666/93 ( "Tendering Law ") establishes that the promotion of sustainable national 
development is a key principle in public procurement , which integrates "value" and "advantage" 
assessment in bids.  
4.1 Agriculture, Forestry, and Fisheries  
4.1.4.1 Agricultural/rural credit  
Para 4.33:  In the report, it is stated that according to the OECD, the agricultural credit system 
creates risks (default) for government and producers. This risk is particularly high, since the 
macroeconomic situation has deteriorated.  
Question 18:  Could Brazil plea se explain why it decided to use agricultural credits as the main 
policy instrument for the sector? Are there any plans to change to a less risky policy instrument in 
the future?  
Since the beginning of the 1990 's decade, agricultural credit has been the m ain policy instrument 
for the sector. This kind of policy in fact was a problem when the hyperinflation was in place 
(before Plano Real, in 1995). Nonetheless, despite the fact that the country has been undergoing 
an economic crisis during the last years, the risk of a significant default is not in place, as the 
sector remains robust and the default rates are currently low. In the short term, there is no plan to 
change the current credit policy.  
4.1.4.1.1 Minimum price guarantees  
Para 4.35:  The Secretariat names in its report different tools which allow farmers to withhold the 
sale of products for up to 240 days in anticipation of higher price levels.  
Question 19:  Can Brazil please elaborate on what requirements, if any, there are to be allowed to 
withhold the sale of products. Who determines whether higher price levels can be anticipated 
shortly?  
There are no requirements to withhold the sale of products. It is up to the producer to evaluate if 
the price will be higher in the future. The government only of fers the tools mentioned.  
Question 20:  What are the effects of the withholding on the market? Brazil has problems with its 
infrastructure in some regions. This can cause the increase in logistics costs and the fall of prices 
of commodities during the harvest season. The tools mentioned are available to reduce the price 
volatility and to reduce the cost of transportation.  
Question 21:  Can withheld products be exported and if yes, how does Brazil ensure that net -
importing countries dependent on the avail ability of foodstuffs on world markets, in particular 
NFIDCs, do not suffer from the impact, these tools are creating?  
Yes. Depending on the product and the region, most of the production is exported during the 
harvest season. The tools mentioned are there only to alleviate the problem of logistics and reduce 
the price volatility. Brazil can ensure it does not impair the availability of agricultural goods on 
world markets.  WT/TPR/M/358/Add.1  
 
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  Para 4.46:   
Question 22:  To what extend does Brazil's Ten -Year Plan for Energy E xpansion 2024 mentioned 
in para 4.46 include reforms to fossil fuel subsidies? Such reforms liberate financial resources that 
could be redirected to the production of renewable energy. What is Brazil 's policy in that regard?  
Despite not counting on any pu blic policy which include inefficient fossil fuel subsidies that 
encourage wasteful consumption, Brazil voluntarily submits to the G20, on a yearly basis, a 
"Progress Report" on national policies that contemplate subsidies to fossil fuels, the last version  of 
which was released on April 2017. In this report, the topic is thoroughly discussed and measures 
to reduce and discontinue subsidies are presented, replacing them with alternative sustainable 
policies to support the poor while strengthening the economy  and minimizing impacts to the 
environment.  
  WT/TPR/M/358/Add.1  
 
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  CHINESE TAIPEI  
PART I: REGARDING THE SECRETARIAT REPORT(WT/TPR/S/358)  
1. ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.3  Fiscal policy  
Page 17 (Para 1.15.) 
It is reported that with its multiplicity of taxes, tax regimes, and sub -national jurisdictions, the 
Brazilian tax system remains overly complex, burdensome and unpredictable. Consequently, Brazil 
ranked 181st out of 190 economies on the ease of paying taxes in the 2017 World Bank Doing 
Business s urvey. According to the authorities, reforming the tax system is one of the Brazilian 
Government's priorities; the reform process is expected to begin in 2017.  
Question:  
1. Would Brazil please elaborate on its plan to reform the tax system?  
The simplificatio n of the system and some taxes has been studied. As a first result, there is 
already a draft of a bill to create a new tax (social contribution) to replace two federal taxes (PIS 
and COFINS) that are, at federal level, the most complicated to comply with a nd to be enforced. 
The new tax will be fully compliant with OECD guidelines. The aforementioned bill has not yet been 
introduced for consideration of the National Congress.  
2 TRADE AND INVESTMENT REGIMES  
2.4 Trade Laws and Regulations  
2.4.2 T ransparency  
Page 29 (Para 2.17.)  
Brazil attaches importance to making laws transparent and readily accessible, including by 
foreigners. Brazilian laws can be obtained from the main legislation website, as well as the 
websites maintained by relevant ministries and agen cies. 
Question:  
2. There is no problem obtaining Brazilian laws and regulations from websites, however, the 
laws are generally only in Portuguese and not available in English version, which causes 
inconvenience to understand. Does Brazil consider establishing  any unified portal or platform 
to provide English version for its laws and regulations?  
Yes, Brazil is considering establishing a unified platform for investments, which, among other 
things, will include English versions for part of her laws and regulati ons. The platform will be an 
implementation of the single electronic window model in Brazil, along the lines of the existing 
Integrated System of Statistics on Foreign Trade (SISCOMEX ), established by the Decree 
Nº 660/1992. (http://portal.siscomex.gov.br/ ). 
3 TRADE POLICIES AND PRACTICES BY MEASURE   
3.3 Measures affecting Production and Trade  
3.3.1 Incentives  
Pages 67 (Para 3.109.)  
Incentives granted in the context of certain federal programs promoting the production of 
information technology, telecommunications and automation goods are linked to PPB criteria, 
which are product -specific and stipulate which stages of the respective manufacturing process 
must be carried out in Brazil in order to recognize the industrialization of a product.  WT/TPR/M/358/Add.1  
 
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  Pages 67 (Para 3. 112.)  
During the period under review, Brazil was the respondent in two dispute settlement proceedings 
initiated separately by Japan and the EU against some of its tax incentive schemes  (Section 2.5.1) . 
Question:  
3. Would Brazil amend the regulatio n of incentive schemes in light of the disputes initiated by 
Japan and the EU? If yes, what will be the direction of amendment?  
This question prejudges the outcome of an ongoing dispute.  
3 TRADE POLICIES AND PRACTICES BY MEASURE   
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary Requirements  
Pages 77 (Para 3.152.)  
Imports of plants and plant products are subject to documentary and inspection requirements that 
vary according to the product's intended use and its classification in one of five risk categories.  
Questions:  
4. Could Brazil please describe the details of the five risk categories and their differences in 
documentary or inspection requirements?  
Through a normative instruction of the Ministry of Agriculture  (INSTRUÇÃO NORMATIVA N°23 of 
2 August 2004), Brazil has adopted the rules of procedure approved by MERCOSUR (Standard 
3.7), which regulates the Phytosanitary Requirements Harmonized by Category of Risk for the 
Entrance of Vegetable Products, in ternalizing, that way, the decision approved by MERCOSUR. This 
regulation establishes phytosanitary requirements harmonized by each of the risk assessment 
categories. The risk assessment categories are determined by vegetables and vegetable products 
classi fications in correlation to their phytosanitary risks, considering their levels of processing and 
proposed uses, specified below:  
CATEGORY 0: Products that, even though its plant origin, for its processing level do not require 
any type of phytosanitary control and, therefore, do not require any intervention from the National 
Organizations of Vegetable Protection (Organizações Nacionais de Proteç ão Vegetal – ONPF) and 
are not capable of disseminate pests in package material or transportation. That is, it is not 
mandatory analyzing pest –risk assessment nor following the phytosanitary certificate for the 
import of these species.  
CATEGORY 1 : Manufac tured products of plant origin which were subjected to any kind of 
technological process of denaturalization that transforms products incapable of being affected 
directly by crop plagues but that can disseminate storages pests and plagues in packaging mate rial 
and transportation intended for human consumption, direct use, or transformation. Thus, for these 
products it is not mandatory analyzing plague risk (ARP) and following the phytosanitary certificate 
for the importation of these species.  
CATEGORY 2 : Semi-processed plant products (subject to drying, cleaning, separation, peeling, 
etc.) that can house plagues and are intended for consumption, direct use or processing. For the 
products of this category it is necessary to execute the ARP as they may imply a phytosanitary 
risks.  
CATEGORY 3 : In-nature plant products intended for consumption, direct use or processing. For 
these products it is necessary to execute the ARP as they may imply phytosanitary risks.  
CATEGORY 4 : seeds, plants or other materials of pla nt origin intended to propagation and/or 
reproduction. For these products it is necessary to execute the ARP as they may imply 
phytosanitary risks.  WT/TPR/M/358/Add.1  
 
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  CATEGORY 5 : Any other products of plant origin or non -plant origin not considered in the 
previous categories  and that imply phytosanitary risks can be approved according to a 
corresponding Pest –Risk Assessment ( Análise de Risco de Praga – ARP). 
5. Our Phalaenopsis spp. with growing media are allowed to be imported to Brazil in accordance 
with the Diario Oficial da União since January 9, 2015. Yet, Brazil amended the requirement 
in the Diario Oficial da União dated November 19, 2015 for exporters to follow. The two 
requirements specify different treatment measures on growing media used for orchid 
cultivation respecti vely. We have raised our request to MAPA for accepting both treatment 
measures. We would like to know whether Brazil has any time frame to make the two 
requirements —of Articles 4 and 5 under the Agreement on the Application of Sanitary and 
Phytosanitary Me asures —both acceptable.  
2. The INs published in January 2015 and November 2015 are substantiated on the Articles 4 
and 5 of the SPS Agreement (Acordo SPS), that is, Equivalence and Risk Analysis, respectively.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures A ffecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.2 Industrial Property  
Page 88 (Para 3.190.)  
Industrial property contracts need to be registered at INPI in order to have effect for third parties, 
enable the remittance of royalties and licence fees, and qualify for income tax deductions. During 
the period under review, Brazil has taken steps to streamline the submission and examination of 
applications for various forms of industrial property protection, including patents an d trademarks. 
Procedural innovations included: the implementation of a system for simplified electronic filing238 
and WIPO's Industrial Property Automation System (trademark applications); fast -track 
examination initiatives (e.g. for "Green Patents", and a pplications by micro -enterprises and the 
disabled); publication of examination guidelines (patents and trademarks); and a productivity 
incentive programme for examiners.  
Questions:  
6. We note that the electronic filing rate at the INPI 's system rose from 44% in 2013 to 93% in 
2016. What measures have been taken by the INPI to encourage use of the electronic filing 
system?  
In 2015, INPI has implemented a new patent deposit system on internet through the electronic 
request system. The new electronic system has n o need for token (electronic signature) or 
program download differently from the previous version. It has a friendlier interface and its easier 
to use. It also assists the user to fill in forms, submit documents and indicates which documents 
are mandatory.  
In addition to being faster, the electronic system works non -stop, and can be used from anywhere 
and has discounted rates for services when compared to the non -electronic option.  
7. What are the specific measures of the productivity incentive programme for e xaminers? Are 
there any measures included in this programme to ensure or improve examination quality?  
The main measure related to productivity was the implementation of a home office program which 
is conditioned to a higher efficiency of the examiners. Th e examiners selected to the home office 
program are also subject to the same quality requirements of those working in the INPI offices.  WT/TPR/M/358/Add.1  
 
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  PART II: REGARDING T HE GOVERNMENT REPORT  (WT/TPR/G/358)  
4 TRADE INSTITUTIONA L AND REGULATORY FRA MEWORK  
4.1 Cross -cutting  Issues  
4.1.7 Intellectual property rights  
Page 25 (Para 4.41.)  
In conformity with other IP Offices around the world, the INPI has also implemented a Home Office 
pilot program which makes it possible to carry out patent examinations in different regional o ffices 
other than the Headquarters in Rio de Janeiro.  
Questions:  
8. We understand that the INPI has launched a pilot program to facilitate patent examinations in 
different regional offices other than the Headquarter in Rio de Janeiro. Is the program related 
to establishing the INPI 's electronic filing system? ( 
INPI's regional offices used to be just a facilitator to receive applications and help the public to 
understand the system of industrial property,  they were not responsible for examination. The pilot 
program changed this situation so that the qualified work force in the regional offices could exam 
patent, trademarks, and other IP filings, whether they were in paper or electronic. However, 
INPI`s reg ional offices are not directly related to the electronic filing system, which aims to receive 
all filings online.  
9. Has the INPI begun to adopt electronic examination on patent applications? If not, what are 
the specific measures of the Home Office pilot pro gram?  
Since 2013, INPI has been using electronic examination on patent applications. In 2015, INPI has 
implemented the new patent deposit system via the web through the electronic request system, 
which has no need for token (electronic signature) or progr am download, different from the 
previous electronic deposit system. The new system has a friendlier graphical interface, being 
easier to use. It also directs the user to fill in the forms and to present documents, for example, 
indicating at the time of fil ing which of the documents are mandatory. In addition to being faster, 
the electronic order works every day, can be done from anywhere and has discounted rates for 
services in relation to the non -electronic option.  
Since July 2016, INPI have a Home Office  program, which has been increasing productivity and 
being expanded in the Institute.  
  WT/TPR/M/358/Add.1  
 
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  THAILAND  
Doc. WT/TPR/S/358 (Page 25) paragraph 4.226  
Question  According to paragraph 4.226 stated that healthcare services were opened to foreign 
investment  while para graph 2.3 indicated that Brazil open to and encourages inward foreign direct 
investment (FDI) with limitations in health services. What are the limitations of FDI in Health 
services?  
In the health care services sector, Law Nº 13.097/2015 altered Law Nº 8. 080/1990, allowing 
foreign investments in activities that support health assistance, such as laboratories of human 
genetics, production and supply of pharmaceuticals, as well as laboratories for clinic tests and 
imaging diagnosis. Therefore, all health car e services are open to foreign investments, except for 
specific cases in which all trade is prohibited for Brazilian and foreign investors: blood and blood 
products, organs, tissues and cells.  
The new legislation also added Article 53 -A to Law Nº 8.080/1990 allowing the direct or indirect 
participation of foreign capital in health care services in Brazil in the following cases: (i) donations 
of international bodies linked to the United Nations, of technical cooperation and funding 
organizations; (i i) legal entities intended to open, operate and exploit: general hospitals, including 
philanthropic, specialized hospitals, polyclinics, general clinics and specialized clinics; and actions 
and researches related to family planning; (iii) non -profit health  services supported by private 
companies for the benefit of their employees and dependents without any additional costs to the 
social security system; and (iv) other cases that may be regulated under specific legislation.  
Doc. WT/TPR/S/358 (Page 37) paragr aph 2.33  
Question  Paragraph 2.33, states that despite some improvement, new investment undertaking in 
Brazil seemingly remain cumbersome, bureaucratic, and expensive in terms of the rigidity involved 
in both starting and closing a business, owing to the ma ny procedures required and high cost. The 
tax burden and labor market rigidities also remain an issue. As these matters may hinder foreign 
investors ' entrance, will there be any regulatory amendments aimed at enhancing business climate 
in Brazil?  
The simp lification of the tax system and of some taxes has been studied. As a first result, there is 
already a draft bill to create a new tax (social contribution) replacing the two federal taxes (PIS 
and COFINS) that are, at the federal level, the most complex on es to comply with and to enforce. 
This new tax will be fully compliant with OECD guidelines. The aforementioned bill has not yet 
been introduced for consideration of the National Congress.  
Doc. WT/TPR/S/358 (Page 152) paragraph 4.187  
Question  According to paragraph 4.187 stated that  when no Brazilian flag ship is available or the 
fares are considered unreasonable, a permit (certificate of release of cargo prescribed, CLCP) may 
be issued for the carriage of import cargos by foreign flagged vessels. What are the qualifications 
for foreign flagged vessels to obtain such certificate?  
The requirements for the concession of a Certificate of Release of Prescribed Cargo (CLCP) are 
regulated in Chapter IV of Normative Resolution Nº 01 -ANTAQ, dated February 13th, 201 5. Such 
Certificate is due only by cargo that must necessarily be transported by Brazilian flag vessels, in 
accordance with the provisions of Decree Nº. 666/1969.  
Authorization for the transport of prescribed import cargo by foreign flag vessels shall be 
requested by the Brazilian importer, at least four (4) days before the expected date of departure of 
the vessel, through an electronic form available at the ANTAQ website (www.antaq.gov.br), in 
which the information required in article 21 of R.N. 01 -ANTAQ m ust be provided: "I – Name of the 
Brazilian importer or exporter and registration data (address, telephone number, electronic 
address and CNPJ); II – Name of the foreign exporter or importer, as appropriate; III – designated 
vessel and operating company; I V – Cargo, gross weight, volume (quantity and type); V – country 
of origin or destination of the cargo, as appropriate; VI – Ports of origin and destination; VII – WT/TPR/M/358/Add.1  
 
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  Vessel, port and operating company in the case of transhipment; VIII – Date of departure of the 
designated vessel from the port of origin; and IX – Maritime freight value."  
Based on the information provided by the importer, Brazilian shipping companies (EBNs) are 
consulted on the availability of the transport. Such consultation aims to verify the  inexistence or 
unavailability of a national vessel capable of carrying out the intended operation in the established 
periods and in compatible conditions with the international market.  
If there is no EBN available, ANTAQ may grant the CLCP. In order to maintain the certificate's 
validity, the operation shall be carried out in accordance with the terms of the consultation to 
EBNs, respecting the established period for the departure of the vessel and the cargo 
characteristics informed by the importer at th e time of the request.  
Doc. WT/TPR/S/358 (Page 89) paragraph  3.197  
Question  Please elaborate more about "Compulsory use of protected information". Also, please 
provide the criteria and examples.  
The compulsory use of undisclosed information related to pharmaceutical products for veterinary 
use, fertilizers, pesticides, their components and related products is allowed under article 7 of Law 
10.603. According to the article, if two years have elapsed since the acquisition of the protection 
and the right -holder has not commercialized the product in the period, competent authorities may 
use such information for granting market authorization to third parties.  
Doc. WT/TPR/S/358 (Page 89) paragraph 3.201  
Question  Please elaborate more about penalty provisions f or infractions in the benefit sharing of 
genetic resources and associated traditional knowledge.  
Regarding the collective management of copyright and related rights, Brazil's new legislation (Law 
No. 12.853, from 2013) introduced some obligations to Colle ctive Management Organizations 
(CMOs). Most of them are related to standards concerning accountability and transparency. CMOs 
are now subject to a process of authorization to allow them to collect and distribute copyright 
royalties. In this regard, they mu st send documents to the Ministry of Culture, which is responsible 
for granting the authorization. The penalty for non -compliance with the rules established by the 
law, in this case, is the refusal of the authorization. In general, CMOs must provide accoun tability 
and transparency for right holders and users under the terms of the law and its succeeding 
regulations. In this sense, members of CMOs may submit a complaint to the Ministry of Culture in 
the case of non -compliance of CMOs with these rules. In add ition, their leaders have a kind of 
secondary liability for misuse or default of the obligations undertaken by CMOs relative to their 
members. The penalties related to collective management of copyright and related rights do not 
include jail time. There ar e two types of sanctions: the written warning and the suspension of the 
authorization to collect and distribute royalties. There is no available statistics on whether the 
courts are imposing these new penalties so far. The Ministry of Culture takes part in  the process.  
Doc. WT/TPR/S/358 (Page 41) section 3.1.1 (Customs procedures, valuation and rules 
of origin)  
Questions   
 What is the scope of Brazil advance ruling service? Can exporters apply ruling in advance for all 
3 types of service? (Customs valuations , Tariff Classification and Rules of Origin)  
Currently, it is possible to apply for an advance ruling on tariff classification and rules of origin. 
However, Brazilian legislation requires that the applicant have legal representation or registration 
in the  territory. Some studies have been made on the introduction of this procedure for customs 
valuation as well.  
 Is advance ruling service applicable through SISCOMEX?  
No. Siscomex is a computerized system used by traders to submit data requirements for 
impor tation, exportation and transit of goods.  WT/TPR/M/358/Add.1  
 
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  An application for an advance ruling is submitted through a specific form.  
 What is the definite date for SISCOMEX to become fully operated?  
Siscomex system has already been operating since 1994 for exports and sin ce 1997 for imports.  
The Foreign Trade Single Window Program (Programa Portal Único de Comércio Exterior) started in 
2014 and aims to establish more efficient, harmonized and integrated processes between all public 
and private stakeholders in foreign trade . The Portal Único Program encompasses a series of 
solutions to be implemented from 2014 to 2018. Under the program, a new export process has 
recently implemented and is already operational on a pilot basis at the major airports, seaports 
and border crossi ng points.  
Doc. WT/TPR/S/358 (Page 54) section 3.1.5 (Import prohibitions, restrictions, and 
licensing)  
Question  Please provide the duration of processing importing licensing approval of each product? 
(Both automatic and non -automatic licensing)  
Requests for automatic licensing must be processed within 10 business days, whereas those for 
non-automatic licensing must be processed within 60 calendar days of registration in SISCOMEX 
(SECEX Ordinance No. 23 of 14 July 2011, Arts. 22 and 23). There is no differ ence between 
products.  
Doc. WT/TPR/S/358 (Page 93) section 4.1 (Agriculture, Forestry and Fisheries)  
Questions  
 When Brazil mentioned the word "Farmer" under the topic 4.1 "Agriculture, Forestry and 
Fisheries", does Brazil specify the qualifications of the person or group who can be the "Famer" or 
not? Under the Brazil system, do the farmers need to be registered their farmer status or not? If 
yes, how many farmer population s in Brazil?  
In order to have access to any official credit, every farm must have a Certificate of Rural Property 
Registration (CCIR), issued by the National Institute of Colonization and Agrarian Reform (INCRA). 
According to the last Census of the Brazil ian Institute of Geography and Statistics (IBGE), there 
are 5,2 farms in Brazil. Family farmers represent 88% of the total number of farms in the country.  
 What are the qualifications of the farmers who can join the Minimum price guarantees 
(4.1.4.1.1); Mea sures to promote family farming (4.1.4.1.2); Agricultural/rural insurance 
(4.1.4.1.3)?  
To join PGPM and the official insurance programs the farmer/company must be registered at the 
System of National Cadaster of Rural Producers (SICAN) at the National Food  Supply Company 
(CONAB). Producers must also be in regular situation on several other governing bodies. The 
current definition of family farmer was established by Law Nr. 11,326/2006 and its amendments. 
Family farmers are farmers that (i) do not own, under  no reason, an area larger than four fiscal 
modules (the fiscal module is defined as the number of hectares necessary for the established 
income potential level, which can vary from 5 to 110 hectares across the country); (ii) make 
predominant use of family  labor in the economic activities carried out in their farms ; (iii) have 
their family income predominantly derived from the economic activities carried out in their farms; 
and (iv) run their farms only with their families.  
ADDITIONAL QUESTIONS   
Doc. WT/TP R/S/358  
Page 78, Paragraph 3 .160 
3.160 In 2013, CADE implemented a new settlement policy req uiring the signatory of a 
cease -and-desist agreement to collaborate with the investigation, in addition to admitting and WT/TPR/M/358/Add.1  
 
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  ending its anti -competitive conduct. The se ttlement policy foresees a reduction of the relevant fine 
according to the contribution provided during the investigation, which has resulted in increasing 
numbers of completed settlements and leniency agreements (Table 3.17). In 2016, CADE 
strengthened me rger notification criteria with the establishment of notification requirements for 
associative contracts. During 2013 -16, CADE also published guidelines on: its antitrust leniency 
programme; cease -and-desist agreements for cartel cases; completion of merge rs prior to 
approval (gun jumping); competition compliance programmes; and horizontal mergers.  
Question 1 : Paragraph 3 .160 indicates that the Administrative Council for Economic Defence  
(CADE) "strengthened merger notification criteria with the establishment of notification 
requirements for associative contracts ." Could Brazil explain more on the definition of 
"associative contracts " and please provide some examples that fall under this type of c ontracts?  
According to CADE 's Resolution 17/2016, associative contracts are agreements held for at least 
two years that establish businesses joint effort regarding their economic activities. Associative 
contracts have necessarily to: (i) involve parties t hat are competitors in the relevant market 
related to the contract itself and (ii) foresee that the parties share the risks and the results from 
the economic activity. After the adoption of the Resolution 17/2016, associative contracts have to 
be notified and analyzed following the same procedures (thresholds, market share, etc.) as actual 
mergers and acquisitions.  
Vessel Sharing Agreements are an example of associative contracts and CADE 's Administrative 
Tribunal has issued a decision in their regard:  http://en.cade.gov.br/press -releases/long -term-
associative -contracts -must-be-notified -in-advance . 
The information on CADE 's Resolution 17/2016 is available here: http://en.cade.gov.br/press -
releases/cade -approves -resolution -on-associative -contracts . 
Page 79, P aragraph 3.161  
3.161 In line with the effects principle common to many jurisdictions, Brazil's competition regime 
does not apply to export -oriented anti -competitive practices (including cartels) that have no effect 
on the domestic market. The provision of public aid or any preferential tax treatment by the 
federal and sub -federal governments is also outside its scope. CADE and Brazil's specialized 
regulatory agencies have complementary competence in regulated sectors; the former has 
authority over competiti on-related matters, and the latter are competent to issue rulings on 
regulatory grounds. During 2013 -16, CADE concluded technical cooperation agreements with the 
National Cinema Agency (ANCINE), ANVISA, and the National Agency of Petroleum, Natural Gas 
and Biofuels (ANP). CADE has not established a standing mechanism for the monitoring of "pay -
for-delay" patent settlement agreements.  
Question 2 : Paragraph 3.161 indicates that "Brazil's competition regime does not apply to export -
oriented anti -competitive pr actices (including cartels) that have no effect on the domestic market." 
Could Brazil explain the authority's steps in analyzing "export -oriented" anti -competitive practices 
that have no effect on the domestic market ? In how many complaints/requests has th is exemption 
been found since 2013? Could Brazil provide some examples?   
According to Article 2 of the Brazilian competition law – Law 12.529/2011, the country 's antitrust 
policy and enforcement are based on the national nexus. In this sense, the legislati on applies to 
conducts held in Brazil, in parts of Brazil, or with effects or potential effects within the country. 
Therefore, CADE has no jurisdiction on anticompetitive conducts practiced by Brazilian companies 
without effects on the domestic market.  
Question 3 : Paragraph 3.161 indicates that CADE has "technical cooperation agreements" with 
several "specialized regulatory agencies." Please provide the types of cooperation which are 
provided for in those agreements.   
These cooperation agreements facilitate  the dialogue between the signatories and allow for a 
closer partnership on the assessment of proceedings related to specific regulated sectors. In this 
sense and for instance CADE 's case handlers, who are analyzing a conduct or a proposed merger WT/TPR/M/358/Add.1  
 
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  in a regu lated sector, may easily access information and inputs from the regulator of this specific 
sector, in order to better realize their assessment.  
In addition, as CADE is only responsible for administrative law enforcement. The criminal 
enforcement track is handled by the Federal Prosecution Service. In this context, cooperation 
agreements with the criminal enforcers are relevant to the success of some investigations, and 
CADE signed eight technical cooperation agreements with criminal law enforcers.  The continuous 
collaboration with other enforcers, as with Prosecution Services, has resulted in the increasing 
number of leniency agreements and consent settlements signed over the past years.   
  WT/TPR/M/358/Add.1  
 
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  TURKEY  
THE GOVERNMENT REPORT  
3. Trade Policy Developments, 3.3.3 MERCOSUR and extra -regional agreements, pg. 18, 
3.28-3.33 
The Government Report provides for a list of extra -regional agreements in the paragraphs 3.28 
through 3.33.  
Question:  Could Brazil also mention about free trade talks that are currently under  exploratory 
stage as well as those that are planned or may be initiated before the next TPR?  
According to MERCOSUR Decision Nº 32 (29th June 2000), MERCOSUR members are committed to 
negotiate as a bloc any agreement of commercial nature. Therefore, along  with its MERCOSUR 
partners, Brazil is currently negotiating free trade agreements with the European Union and EFTA. 
MERCOSUR has initiated exploratory talks with Canada, Australia and New Zealand. Until the end 
of 2017, the bloc plans to hold first rounds  of FTA negotiations with Lebanon and Tunisia. Mercosur 
has also been working on the expansion of its preferential agreement with India..  
Brazil is also currently engaged in trade negotiations with Mexico in order to expand the coverage 
of a current prefer ential agreement under the Latin American Integration Association -LAIA 
(Economic Complementation Agreement Number 53) . Brazil expects to conclude negotiations in 
the near future.  
THE SECRETARIAT REPORT  
3.1.3.2 Trade Policies and Practices by Measure – Measures Directly Affecting Imports – 
Tariffs – Bindings, pg. 49, paras. 3.34  
"The WTO process of certifying Brazil's bound tariff schedule in order to incorporate the changes 
resulting from the introduction of HS versions 2007, 2012 and 2017 has not yet b een completed. 
Applied rates on some 134 tariff lines (up from 120 in 2012) exceed, sometimes partially (due to 
differences in aggregation levels), Brazil's bindings. The authorities note that in all such cases 
importers may request application of the boun d rate. " 
Question: Even though this issue was also raised in Brazil 's Trade Policy Review (TPR) in 2013 
and responded as " The Brazilian government is working on a definitive solution to this situation 
and will inform the WTO of the results of its efforts ", it seems that the number of tariff lines whose 
applied rates exceed their bound ones have increased since 2012. Under such circumstances, 
please specify the relevant steps which will be taken to comply with Brazil 's WTO commitments in 
this regard and stat e if there is any envisaged time frame for realizing this compliance.  
The tariff rates applied by Brazil, as authorized by the MERCOSUR instruments, do not exceed the 
maximum World Trade Organization (WTO) bound tariffs.  
Since bound rates of Mercosur membe rs are different, it is possible to find some CET rates above 
Brazilian bound rates. In such cases, the Brazilian bound rates are applied. Therefore, as stated 
above, the tariff rates applied by Brazil do not in any case exceed the maximum WTO bound 
tariffs. 
3.1.4 Trade Policies and Practices by Measure – Measures Directly Affecting Imports – 
Other Charges Affecting Imports, pg. 50, para. 3.37  
"Brazil's internal taxation regime remains overly complex, including in the treatment of imported 
goods and service s. Domestic and cross -border transactions are subject to various federal and 
sub-federal levies, including: Tax on Industrial Products (IPI); Tax on the Circulation of Goods and 
Services (ICMS); contributions to the social integration programme (PIS) and t o finance social 
security (COFINS); and Tax on Services (ISS). The cross -cumulation of these taxes for tax base 
purposes is not uncommon. In addition, their application typically varies depending on the product 
type, the competent sub -federal authority, an d the importer's tax regime status. " WT/TPR/M/358/Add.1  
 
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  Question: Although Brazilian Government highlighted during the TPR in 2013 that " It is worth 
mentioning that there are on -going plans with the intention of simplifying the most elaborate taxes 
– PIS and COFINS (Federal taxes) and ICMS (State taxes) ", the complex tax system remains 
unchanged. Especially in terms of the effects on imported goods, could Brazil express the latest 
developments regarding the plans for simplifying the tax system?  
The simplification of the syste m and of some taxes has been studied. As a first result, there is 
already a draft of a bill to create a new tax (social contribution) to replace two federal taxes (PIS 
and COFINS) that are, at federal level, the most complicated ones to comply with and to be 
enforced. This new tax will be fully compliant with OECD guidelines. The aforementioned bill has 
not yet been introduced for consideration of the National Congress.  
3.1.4 Trade Policies and Practices by Measure – Measures Directly Affecting Imports – 
Other Charges Affecting Imports, pg. 51, para. 3.40 and 4.3.5 Trade Policies by Sector – 
Manufacturing – Automotive Sector, pg. 128, paras. 4.101 -4.104  
"The IPI is a federal tax levied on domestically produced and imported manufactured goods, 
following the v alue-added principle…In principle, the same rates apply on domestically produced 
and imported goods. However, certain IPI reductions or suspensions, such as on automotive 
products, have been granted only to products originating in some of Brazil's preferen tial trading 
partners (e.g., MERCOSUR and Mexico). " 
INOVAR -Auto, operated by the MDIC, provides for a reduction of the IPI tax rates on automobiles 
manufactured or imported by accredited companies. This discount is in the form of: presumed IPI 
tax credits;  and, reduced IPI tax rates on the importation of vehicles originating in certain 
countries as well as on certain domestic vehicles…To be accredited, companies must comply with 
energy -efficiency requirements and meet at least three of the following four co nditions: perform a 
minimum number of manufacturing steps in Brazil for at least 80% of vehicles produced; invest a 
minimum percentage of the company's gross revenues in R&D activities in Brazil; invest in 
engineering, basic industrial technology, and supp lier training; and participate in the Brazilian 
vehicle tagging/labelling programme (Programa de Etiquetagem Veicular, PBEV) for a minimum 
percentage of the company's output.  
Accredited companies…that manufacture or plan to manufacture automotive products in Brazil 
could benefit from a 30 percentage point IPI tax reduction on imports of vehicles originating in 
MERCOSUR and Mexico until the expiry of the INOVAR -Auto regime.  
INOVAR -Auto has further encouraged tariff -jumping FDI which has stepped up investment  plans 
and gradually increased production step -related local content. During the review period, importing 
companies such as BMW (Germany), Hyundai, Kia Motors, and Chery (China) have invested in 
local plants, whereas Jaguar Land Rover (owned by Tata of Ind ia) began plant construction and 
JAC Motors (China) have plans in this area.  
…Two dispute settlement cases involving domestic support to the automotive industry are under 
way." 
Question: Given the considerable amount of FDI attracted from various automotiv e brands thanks 
to INOVAR -Auto regime, would you explain how consistent this program is with Article I and III of 
the GATT, Article 3.1(b) of the SCM and Article 2 of the TRIMs? Also, could Brazil express if there 
is any plan to revise the regime in compli ance with WTO agreements?  
Brazil reiterates that its policies aimed at industrial production in the country comply with the 
Agreements and the rules of the WTO  
As established in Article 1 of Decree 7.819 of 2012, INOVAR - AUTO will expire in 
31 December  2017. The features of the future Brazilian automotive policy are still under 
discussion.  WT/TPR/M/358/Add.1  
 
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  3.1.5 Trade Policies and Practices by Measure – Measures Directly Affecting Imports – 
Import Prohibitions, Restrictions and Licensing, pg. 54, paras. 3.51 -3.52 
"At end -2016, imports classifiable under some 137 tariff lines were subject to automatic licensing, 
whereas non -automatic licensing requirements could apply to at least 5,460 tariff lines (more than 
half of Brazil's entire tariff).  
…According to the a uthorities, the purpose of non -automatic licensing is to prevent environmental 
damage and harm to human, plant or animal health, as well as to control imports of products 
classified as weapons and products subject to tariff quotas or trade remedies. " 
Question: It should be highlighted that being subject to non -automatic licensing of more than half 
of Brazil 's entire Customs Tariff Schedule emerges as a technical barrier to trade and it is also 
likely to inconsistent with Article 3.2 of the Agreement on  Import Licensing Procedures. With that 
respect, could Brazil explain the rationale for such regulations and practices?  
As a general rule, Brazilian imports are exempted from licensing. In those cases, no Import 
License is required. In some cases, however , licensing is required, which may be automatic or 
non-automatic, depending on the product.  
The procedures for licensing already follow clear and transparent rules. Brazil´s commitment to 
tranparency and fair treatment is reflected in Brazil´s notificatio ns at the Import Licensing 
Committee and in the detailed and consolidated information of all products that require automatic 
and non -automatic licensing through following links: 
www.mdic.gov.br/index.php/ comercioexterior/importacao/tratamento -administrativo -de-
importac ao and www.port alsiscomex.gov.br/ . The importer may request licensing through 
SISCOMEX directly from its institution, once registered, or through institutions registered for that 
end. 
The Brazilian government launched a project to review the full scope of its import lice nsing regime 
in order to streamline it, whenever possible. However, this is a complex and delicate endeavour, 
involving a large number of accredited agencies, most of which enjoy administrative 
independence. Morever, the desired outcome will lead to change s in procedures, standards and, 
possibly, laws, which depend on congressional approval. The review of the Import Licenses regime 
in Brazil is being coordinated by a Working Group on Trade Regulations established by CAMEX with 
the support of the National Tr ade Facilitation Committe (CONFAC) .  
3.2.4.1 Trade Policies and Practices by Measure –Measures Directly Affecting Exports – 
Export Support and Promotion – Export Support Schemes, pg. 59, paras. 3.75 -3.76 
"Predominantly export -oriented enterprises (deriving  more than 50% of their gross sales income 
from abroad) remain eligible for suspension of the PIS, COFINS, and IPI taxes on the purchase of 
inputs, whether local or imported.  
A similar eligibility criterion is applied under the Special Regime for the Purch ase of Capital Goods 
for Exporting Enterprises (RECAP), which suspends the PIS and COFINS on purchases of new 
(unused) capital goods (machines, equipment, and instruments) for incorporation in the 
beneficiary company's fixed assets. Enterprises that, in th e calendar year preceding application to 
RECAP, made at least 50% of their total gross sales abroad may benefit from the scheme, 
provided they commit to complying with the minimum export sales threshold for the following two 
calendar years. " 
Question: Since the suspension of the PIS, COFINS and IPI taxes, and the RECAP system itself 
are contingent upon export performance, would you explain how consistent this program is with 
the SCM? In the light of such information, could Brazil explain which steps will be  taken for making 
these schemes consistent with Agreement?  
Tax suspension is an accounting scheme aimed at avoiding the administrative burden of 
reimbursing taxes that were not due. It does not entail the foregoing of tax revenue.  WT/TPR/M/358/Add.1  
 
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  As explained, Brazil has a system of value -added taxation along the production chain, which 
means that the taxes paid in prior steps of the production chain may be used as credits, which, as 
a general rule, are offset against the debits accumulated in subsequent steps of the produ ction 
chain.  
Some companies in Brazil tend to structurally accumulate tax credits since their sales are subject 
to low or no taxation at final stages of production. As a result, these "predominantly credit -
accumulating companies" structurally accumulate ta x credits and must submit a great number of 
tax reimbursement requests on a regular basis, putting a heavy burden on them and on the tax 
authorities. All those companies that structurally accumulate credits can apply for an alternative 
method of tax admini stration, under which taxes are suspended on purchases of inputs and capital 
goods and, in consequence, taxes resulting from sales must be paid in full without the utilization of 
any credits.  
Predominantly exporting companies are among those taxpayers tha t naturally tend to accumulate 
credits along the production chain, since taxes are not levied on their exports. So, the tax 
suspension under the PEC/RECAP regime simply prevents the accumulation of tax credits and the 
administrative burden – for the govern ment and the companies – related to the reimbursement of 
taxes not due in the first place that would be collected.  
3.2.4.1 Trade Policies and Practices by Measure –Measures Directly Affecting Exports – 
Export Support and Promotion – Export Support Schemes,  pg. 60, para. 3.78  
"In 2014, Brazil reinstated the Special Regime for the Reimbursement of Taxes for Exporters 
(Reintegra) and made it permanent. The scheme enables exporters of certain Brazilian -
manufactured goods to claim up to 3% of their gross export receipts as offset for non -value added 
(cascading) taxes along the production chain, such as the ISS, IOF, and CIDE.104 In general, the 
Brazilian -manufactured exports eligible for Reintegra are drawn from the IPI incidence list and 
their imported content m ay not exceed 40% of their export price. " 
Question: Although Brazil undertook not to renew REINTEGRA programme, which is both 
contingent upon export performance and domestic content requirement, in 2013 TPR; could Brazil 
specify the reasons of enacting suc h a programme in a permanent manner?  
Reintegra provides for a rebate of the indirect taxes levied on the inputs that are consumed in the 
production process of the exported product. Reimbursements under Reintegra are currently 2% of 
the value of the exporte d product. Brazil has established that, in all sectors, these percentages are 
considerably lower than the tax residue in the supply chain of exported products. As such, 
Reintegra is fully compatible with footnote 1 and Annex I of the SCM Agreement, given t hat 
reimbursements are not "in excess of" of accrued taxes.The RFB is in charge of all procedures 
required to demonstrate that all requirements of REINTEGRA are met, in line with footnote 1 and 
Annex I of the SCM Agreement.  
4.4.6.2 E -commerce – pp 157  
4.204. Brazil has no de minimis rule whereby goods below a certain value are exempt from 
customs duties and taxes. Virtually all international e -purchases are subject to a 60% flat/single 
equalization tax on the purchase price covering/compensating customs duty and other internal 
taxes/charges on imports  
Question:  Could Brazil please give further explanation on the procedure, extent and the effects of 
the 60% equalization tax mentioned in the Secretariat Report?  
In addition to the regular system of taxation , based on MERCOSUR Common External Tariff, 
optionally the imports through postal or courier services can be levied at a flat rate of 60%. This 
tariff replaces all federal taxes normally levied on regular imports, and the taxable base is the 
customs value of the goods (CIF bases) regardless of the tariff classification of the goods (they 
don't need to be classified according to the MERCOSUR Common External Tariff).  
  WT/TPR/M/358/Add.1  
 
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  UKRAINE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  (WT/TPR/S/358)  
SUMMARY  
Page 9 (Para 1 8)  
According to the Report "Brazil`s internal taxation regime remains overly complex, including in the 
treatment of imported goods and services; customs duties and other taxes on foreign trade 
transactions account up to 15% of federal tax revenue.  Domestic and cross -border transactions 
are subject to various federal and sub -federal levies; their cross -cumulation for tax base purposes 
is not uncommon. Incentives and government assistance for production and trade are available at 
both the federal and  sub-federal levels."  
Question:   
1. Does Brazil have any plans for reform in this area to substantially simplify Brazil`s taxation 
regime and to make more transparent and open system of incentives (tax reductions and 
exemptions) available at both the feder al and sub -federal levels?  
The simplification of the tax system and of some taxes is under consideration. A bill proposing the 
replacement of two federal taxes (PIS and COFINS) for a new unified one has been drafted. This 
new tax will be fully compliant w ith OECD guidelines. The aforementioned draft bill has not yet 
been submitted to the National Congress.  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.4 Labour market policies  
Page 17 (Para 1.16)  
The Report says that "In 2016, the authorities  revised their approach to minimum wage 
indexation, abandoning a formula based on recent rates of real GDP growth and inflation, which 
was not prescribed in the legislation."  
Question:   
2. Could Brazil kindly elaborate on approach to minimum wage indexatio n which has been used by 
the authorities since 2016?  
Law no. 13.152, of 29 July 2015, (link: http://www.planalto.gov.br/ccivil_03/_ato2015 -
2018/2015/Lei/L13152.htm) establishes that, from 2016 to 2019, the minimum wage will be 
adjusted by the variation of  the National Consumer Price Index (INPC) of the previous 12 months 
plus the GDP growth rate of year "t -2", i.e., two years before the reference year. So, in 2016, the 
minimum wage was increased by 11.6%, of which 11.5% is derived from INPC in 2015 and 0.1 %, 
the GDP growth in 2014. According to the law, the calculation method must be reviewed every 
four years."  
2 TRADE AND INVESTMENT REGIMES  
Page 25 (Para 2.1)  
The Report mentions that "The institutional framework for trade policy formulation remained 
broad ly unchanged except for the transfer of the Executive Secretariat of the Foreign Trade Board 
(CAMEX) from the Ministry of Industry, Foreign Trade and Services to the Ministry of Foreign 
Affairs."  WT/TPR/M/358/Add.1  
 
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  Question:   
3. Could Brazil kindly explain what the rationale  was behind the decision to transfer the Executive 
Secretariat of the Foreign Trade Board (CAMEX) from the Ministry of Industry, Foreign Trade and 
Services to the Ministry of Foreign Affairs?  
This decision was taken by the President of the Republic in 201 6 and reverted in 2017. Since the 
Ministries of Foreign Affairs and of Industry, Foreign Trade and Services share responsibilities in 
international trade issues, and that both Ministries are full members of the Foreign Trade Board, 
changes in the CAMEX Exe cutive Secretariat are of administrative nature.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 43 (Para 3.14)  
The Report states that "According to the authorities, the average customs clearance time across all 
Brazilian customs posts was 40.32 hours in 2013, 39.35 hours in 2014, 35.29 hours in 2015, and 
34.16 hours in 2016. Besides reflecting more comprehensive sampling, these statistics differ from 
the World Bank figures in the nature of clearance procedures taken into account."  
Questions:   
4. Could Brazil please provide update information (as of first half of 2017) on the average customs 
clearance time and number of documents required in respect of both  export and import?  
Average customs clearance time (as of first half of 2017)  
- Exportation => 2.15 (2 hours and fifteen minutes)  
- Importation => 25.11 (25 hours and 11 minutes)   
Regarding customs clearance (not considering licensing), the support documents to export or 
import are:  
• Exports: fiscal invoice; and, occasionally, documents established in international 
agreements, such as Kimberley certificate;  
• Imports: bill of ladin g; commercial invoice; and, occasionally, documents established in 
international agreements.  
The Brazilian Customs does not require, as a rule, hard copies of documents, insofar as they can 
be submitted electronically attached to the declaration.  
5. How do es Brazil intend to address and settle issue concerning facilitation of clearance 
procedures?   
Trade Facilitation, in general, is currently coordinated by the National Committee for Trade 
Facilitation (Confac), with participation of public and private sect ors. The main ongoing initiative to 
facilitate clearance procedures is the implementation of the national single window system (Portal 
Único de Comércio Exterior).  
3.1.5 Import prohibitions, restrictions, and licensing  
Page 54 (Para 3.51)  
According to the  Report "At end -2016, imports classifiable under some 137 tariff lines were subject 
to automatic licensing, whereas non -automatic licensing requirements could apply to at least 
5,460 tariff lines (more than half of Brazil's entire tariff). During 2013 -16, the main additions to WT/TPR/M/358/Add.1  
 
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  the list of imports subject to non -automatic licensing included endangered species (some 200 tariff 
lines) and several manufactured goods (i.e. automotive parts)."  
Question:   
6. Could Brazil kindly elaborate on the purpose and rationa le behind establishing non -automatic 
licensing requirements for a very high number of tariff lines and, in particular, for manufactured 
goods (i.e. automotive parts), recently added to the list? (MDIC, DACESS -MRE)  
The relatively high number of automatic an d non -automatic licenses in Brazil reflects the fact that 
all trade procedures are included in the international trade single -window structure – whereas 
other Member may choose not to characterize the need to present SPS certificates or receive pre -
authori zation for medicines as import licenses. Brazil has an unbinding commitment to 
transparency, which is reflected in Brazil´s notifications at the Import Licensing Committee and in 
the detailed and consolidated information of all products that require automa tic and non -automatic 
licensing through following links: www.mdic.gov.br/index.php/ 
comercioexterior/importacao/tratamento -administrativo -de-importacao and 
www.portalsiscomex.gov.br/.  
The total number of products currently requiring licensing is the result  of different rules and 
regulations governing the work of each agency which authorizes import, export or transit 
operations. The Brazilian government launched a project to review the full scope of its import 
licensing regime in order to streamline it, when ever possible. However, this is a complex and 
delicate endeavour, involving a large number of accredited agencies, most of which enjoy 
administrative independence. Morever, the desired outcome will lead to changes in procedures, 
standards and, possibly, la ws, which depend on congressional approval. In view of this complexity, 
it would not be advisable to speculate about time limits for this work, but progress should be 
gradually over the next months. The review of the Import Licenses regime in Brazil is bei ng 
coordinated by a Working Group on Trade Regulations established by CAMEX, with the support of 
the National Trade Facilitation Committee (CONFAC).  
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
3.2.4.1 Export support schemes  
Page 59 (Para 3.74)  
The Report notes that "Brazil maintains a number of programmes intended to increase exports and 
to boost the competitiveness of export -oriented companies. In 2015, the Government launched a 
National Export Plan (2015 -18) envisaging a se ries of actions along five pillars: market access; 
commercial promotion; trade facilitation; export finance and guarantees; and tax regimes and 
facilities for export support. According to the authorities, the Plan is being reviewed by the current 
administr ation."  
Question:   
7. Would Brazil please shortly describe measures, stipulated in the National Export Plan (2015 -18), 
and inform on previous results of its implementation and possible amendments?  
The National Export Plan comprises a set of policies focus ed on trade facilitation, trade promotion 
and trade intelligence aiming at encouraging Brazilian companies to participate more actively in 
international trade.  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.2  Price controls  
Page 80 (Para 3.167)  
According to the Table 3.18 regulated prices are set at the federal level on such categories as 
healthcare plans and pharmaceutical products (in 2017).  WT/TPR/M/358/Add.1  
 
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  Question:   
8. Could Brazil kindly clarify what products and servi ces are included in healthcare plans ?  
Federal law sets forth "reference -plan for health care", based on the International Classification of 
Diseases (ICD) of the World Health Organization. The plan must include outpatient care and 
hospitalization conducte d in Brazil only. Exceptions are aesthetic surgeries, weight loss procedures, 
artificial insemination among others. For further information please refer to Federal Law Nº 9656, 
dated June 3rd 1998, especially articles 10, 11 and 12.  
Also the National Agen cy for Supplementary Health Care sets a list of medical services and 
procedures named "List of Procedures and Health Events" (Rol de Procedimentos e Eventos de 
Saúde), which health care plans are obliged to cover, according to each type of plan (outpatient  
care, hospital, dental, reference).  
9. Would Brazil, please, shortly describe the procedure of price regulation by appropriate 
competent entities both for healthcare plans and for pharmaceutical products?   
The price of medicines in Brazil are regulated by  the Drug Market Regulation Chamber (CMED, in 
Portuguese), a body formed by a council of ministers which was created by Law 10,742 of October 
6, 2003. According to Resolution CMED N. 2, of March 5, 2004, all drug manufacturers should 
inform the Drug Market  Regulation Chamber whenever they intend to market new products and 
new pharmaceutical presentations. The drugs with a new molecule in the country are considered 
"new products" and the "new pharmaceutical presentations" are medicines not classified as new.  
If a "new product" with a molecule patented in the country that brings gain to the treatment in 
relation to the drugs already used for the same therapeutic indication, with more efficacy over 
available medicines with same therapeutic indication, or same e fficacy but less adverse reactions; 
or same efficacy but lower global treatment cost, the factory price proposed by the company shall 
not be higher than the lowest factor price traded for the same product among nine reference 
countries (Australia, Canada, Spain, United States of America, France, Greece, Italy, New Zealand, 
Portugal, and manufacturer's origin country). For "new products" that do not bring gains, the 
factory price will be defined based on the cost of treatment with the drugs used for the same  
therapeutic indication, and it must not be, in any case, higher than the lowest price traded among 
the above -mentioned countries. In both cases, the existing scientific evidences are considered.  
The products classified as "new pharmaceutical presentations " have their factory price authorized 
according the drug that is already in the market. The prices must not be higher than the average 
for the drug presentation with the same strength and pharmaceutical form already traded by the 
company itself; or the ave rage price of the drug presentations with the same active ingredient and 
the same strength already available in the market, in the same pharmaceutical form, considered 
according the profits from each presentation. In both cases, the factory price must not be higher 
than the factory price of the "reference drug", defined according Law no. 9,787 dated 10 February 
1999.  
The "new pharmaceutical presentations" can be new associations in the country and new 
pharmaceutical forms. In the case of a new association in the country of monodrugs marketed 
separately, the association's price must not be higher than the sum of the monodrugs' prices. In 
the case of a new association in the country of monodrugs already marketed, which replaces, with 
confirmed advantages, the  treatment with the monodrugs taken separately, the company may 
present a justification for a new proposed price. For new pharmaceutical forms the price will be 
defined based on the cost of treatment with the drugs that already exist in Brazil for the same  
therapeutic indication. In both situations, the prices must not be, in any case, higher than the 
lowest price traded among the countries already listed.  
For drugs classified as "generic", in accordance with Law no. 9,787 dated 10 February 1999, the 
factor y price authorized must not be higher than 65% of the price of the corresponding "reference 
drug".  WT/TPR/M/358/Add.1  
 
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  In summary, medicines' prices in Brazil are defined based on domestic prices, for "new 
pharmaceutical presentations", and treatment cost and External Price R eference, for "new 
products".  
These rules (Resolution CMED N. 2, dated 5 March 2004) are available in English 
(http://portal.anvisa.gov.br/documents/374947/2932039/Resolu%C3%A7%C3%A3o+n%C2%BA
+2%2C+de+5+de+mar%C3%A7o+de+2004%28Versao+Ingles%29.pdf/2e0222db -9d6b-49b6-
84ac-d7a9bea8610c).  
The prices in Brazil are adjusted annually according to a well -known formula. Th e criteria for the 
adjustment of prices of medicines are established in Resolution CMED N. 01 of February 23, 2015. 
The price adjustment of medicines, to be carried out on March 31 of each year, is based on a price 
index model (consumer price index - IPCA) , a productivity factor (Factor X), a portion of the 
relative price adjustment factor between sectors (Factor Y) and an intra -sector relative price 
adjustment factor (Factor Z).  
The productivity factor (Factor X) represents the mechanism that aims to pass on to consumers, 
through the prices of medicines, projections of productivity gains of the companies producing 
medicines. Factor X is established based on the estimated prospective productivity gains of the 
pharmaceutical industry.  
The portion of the facto r of adjustment of relative prices between sectors (Factor Y) is calculated 
based on the variation of the costs of the raw materials not recovered by the calculation of the 
index of inflation mentioned, and aims at adjusting the relative prices between the  pharmaceutical 
sector and other sectors, in order to minimize the impact of non -recoverable costs through the 
application of the IPCA.  
In general, this regulatory model prevents prices from rising above inflation.  
3.3.7 Intellectual property rights  
3.3.7. 2 Industrial property  
Page 89 (Para 3.196)  
The Report notes that "In the case of patents, compulsory licences may be granted for reasons of 
national emergencies and public interest, as a remedy for an abuse of rights or anti -competitive 
conduct, and for f ailure to meet the needs of the market. If a compulsory licence is granted in the 
public interest, it must be for non -commercial public use. A patent will be forfeited if abuse or 
misuse has not been remedied within two years after the granting of the firs t compulsory licence, 
unless there are justifiable reasons."  
Questions:   
10. In view of the recent entry into force of the Protocol Amending the TRIPS Agreement (on 23 
January 2017), could Brazil kindly describe national implementing measures providing fo r special 
compulsory licences and its scope (for export or import of medicines)?  
The granting of a compulsory license in Brazil is regulated by Articles 68 to 74 of Law n° 9.279, as 
well as Decrees n° 4.830 and 3.201. Brazil accepted the amendment to the TRIPS Agreement in 
13 November, 2008, both as exporter and importer.  
11. What competent authority is responsible for possible granting compulsory licences according to 
domestic legislation?  
As indicated in paragraph 3.162 of the Secretariat Report, the Administrative Council for Economic 
Defence (CADE) has the authority to grant compulsory license of intellectual property rights as one 
of the possible remedies for anti -competitive conduct. In all other cases of compulsory licenses, 
the Executive Branch i s the competent authority  WT/TPR/M/358/Add.1  
 
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  12. Has Brazil used the provisions of Decrees No. 4,830 (4 September 2003) and No. 3,201 (26 
November 1999) which regulate the granting of compulsory licences in cases of national 
emergency and public interest?  
In 2007, the Brazil ian Government granted a compulsory licence for public non -commercial 
purposes regarding the relevant Efavirenz patents, a life -saving medicine for AIDS patients  
13. Is Brazil considering the possibility of granting compulsory licences on exporting medicin es for 
mentioned reasons?  
To date, Brazil has not received a formal request for the granting of compulsory license on 
exporting medicines.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.3 Border measures  
Page 95 (Para 4.15)  
The Re port states that "Although in April 1996 Brazil notified its intention to eliminate the tariff 
rate quota for wheat to the WTO, no action has been taken so far and there are no plans for action 
in this area."  
Question:   
14. Would Brazil kindly inform if t here is any progress in settling of this issue?  
Brazil is currently in negotiations with Members concerned. Brazil considers the current of wheat 
import regime more favourable than the TRQ consolidated.  
4.1.4 Domestic support  
4.1.4.1 Agricultural/rural cr edit 
4.1.4.1.1 Minimum price guarantees  
Page 103 (Para 4.34)  
The Report states that "During the review period, Brazil maintained unchanged its 1966 policy of 
guaranteed minimum prices (PGPM), an important pillar of its agricultural policy. The basic 
element of this policy remains the regionally -set minimum guaranteed prices which cover a broad 
range of crops from rice, wheat, maize, cotton, and soybeans, to regional crops like cassava, 
beans, açaí, guaraná, and sisal, as well as a few livestock produc ts like cow and goat milk and 
honey."  
Question:   
15. Does Brazil have any plans to modify its minimum price guarantee programs and to replace 
them with less production - and trade -distorting measures of domestic support?   
As stated in the Secretariat report , domestic support to agricultural producers in Brazil remains at 
a very low level and measures that distort farm prices have a moderate impact at the aggregate 
level. Current levels support are within the country's 'de minimis' limits.  
Brazil has introdu ced its crop insurance program in 2003. The coverage of the program has rapidly 
increased over the last years and agricultural risk management tools will continue to have an 
important role to play in Brazil's agricultural policies.  WT/TPR/M/358/Add.1  
 
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  PART II: QUESTIONS REGAR DING THE REPORT  BY BRAZIL (WT/TPR/G/358)  
Page 6 (Para 2.13)  
The Report mentions about Apex -Brasil as "a one -stop shop in the Federal Government for 
investment in innovation – … – which concentrates and provides information about the Brazilian 
market, tech nological infrastructure, skilled human resources and governmental incentives, 
offering customized packages for each investor with essential information for the success of the 
investment."  
Questions:   
16. Would Brazil kindly indicate key sectors of Brazilian economy, development of which was the 
most successful due to trade and investment promotion activity of Apex -Brasil since its 
establishment?  
The Brazilian Trade and Investment Promotion Agency (Ape x-Brasil) offers customized services 
promoting six sectors for foreign investments – agribusiness, infrastructure, oil and gas, renewable 
energy, life sciences and automotive. Apex -Brasil also supports companies interested in installing 
their R&D centers i n the country and venture capital investment in Brazil.  
One key sector in recent years was renewable energy, with both wind and solar power attracting 
many investments in Brazil, with the perspective of intensive growth in the following years. Brazil 
is already the third largest global market for renewable energies.  
On the Wind Power sector, Brazil gained 111 new wind farms in 2015, with USD 5 billion invested. 
On 2016, 2.01 GW of wind energy capacity was added, reaching 10.74 GW. Brazil ranks ninth 
country  in wind production and fifth in new wind additions. Some highlights in wind power 
investments were Gamesa (USD 30 mi), LM Wind Power (USD 50 mi) and Bonfiglioli (USD 7 mi).  
Solar photovoltaic energy, on the other hand, is expected to get major investment over the next 
years, increasing its share in the Brazilian energy matrix from 0.01% in 2015 to 32% in 2040. 
Brazil is among the top 10 new solar additions in 2016 -2020. Key investments in solar energy: 
Canadian Solar (USD 659 mi); BYD (USD 20 mi) and Siva Power (USD 200 mi).  
Another important sector for investments is Oil & Gas, which represents 12% of the country's GDP. 
Brazil has the world's 15th largest oil reserves, with 15 billion barrels. Recently, the government 
improved the regulatory landmark to be come more investment -friendly. Verderg was one of the 
key Oil & Gas investors supported by Apex -Brasil.  
In addition, Research & development centers are a priority, with successful cases such as INTEL 
(USD 150 mi), LENOVO (USD 100 mi) and GE (USD 250 mi), t he latter focused on new Oil & Gas 
opportunities in Brazil.  
Apex-Brasil also supports venture capital investors in the identification of investment opportunities 
in Brazilian startups and established companies. Brazil's entrepreneurial capital is growing a t a 
steady rate, with more than 200 venture capital/private equity managers and 300 incubators. In 
2015 and 2016, Apex -Brasil promoted more than 30 projects for these ecosystems, with USD 360 
mi invested.  
Other interesting cases include investments in Life  Sciences, such as the Stevanato Group's  
EUR 30 mi investment on Insulin cartridges; and investments in the automotive industry, by 
Johnson Electric (USD 10 mi) and Kwangjin (USD 10 mi).  
Regarding the promotion of Brazilian exports, Apex -Brasil currently supports 8,510 companies 
from 86 sectors, which in turn export to 211 markets. In 2016, supported companies exported 
US$ 42.5 billion, which corresponded to 22.9% of Brazilian exports. Highly positive performances 
over the last year include the specialty c offee segment: 177 companies participate in Apex -Brasil's 
initiative to promote industry exports, with a 29.6% sales increase in 2016. Another prominent WT/TPR/M/358/Add.1  
 
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  sector is the videogame industry: the value exported by the companies in the Apex -Brasil project 
went f rom US$ 2.9 million in 2014 to US$ 17.4 million in 2016 – a 600% increase.  
17. Is offering of customized packages with essential information for each investor free of charge?   
Yes, Apex -Brasil offers a customized package, including economic trends, suitable location for 
investment, HR availability information, input costs and other information required by the investor. 
Apex-Brasil uses an extensive network in the Brazilian federal, state and municipal government to 
deliver this. The Agency gathers – along with the Ministry of Industry, Trade and Services – 
relevant R&D and trade sector data for the investor at the Innovate in Brasil website 
(http://www.innovateinbrasil.com/innovation -in-brazil), to foster the flow of information.  
18. What are the tota l budget and the source of Apex -Brasil financing?  
For 2017, the budget is R$ 493.2 million – or approximately USD 151.7 million at the exchange 
rate of 11 July 2017 (USD 1 = R$ 3.25).  
Apex-Brasil's main source of financing is defined on Law No. 8029/1990 . It has a fiscal nature, and 
is implemented by means of a percentage from a social security contribution, with the legal status 
of a contribution of intervention in the economic field. It is collected and transferred to the Agency 
monthly by the Brazilian  Federal Revenue Secretariat (SRF).  
19. Is Apex -Brasil a government -controlled entity?  
No. The Brazilian Trade and Investment Promotion Agency (Apex -Brasil) is a private entity, 
organized as a not -for-profit civil association of collective interest and pu blic utility, instituted by 
Decree No 4.584, dated 5 February 2003 and Law No. 10.668 of 14 May 2003 as an Autonomous 
Social Service, with the aim of promoting policies in cooperation with the Government.  
In this regard, the Ministry of Foreign Affairs (M RE) and Apex -Brasil have a management contract, 
which establishes annual goals and targets related to export promotion, which shall be met by 
Apex-Brasil.  
20. If yes, under which authority does Apex -Brasil operate?  
Please refer to the previous answer.  
Page 9 (Para 2.26)  
The Report states that "Foreign insurance companies providing insurance of any kind, except 
reinsurance, are required to be incorporated under Brazilian law, as a corporation."  
Question:   
21. Would Brazil kindly clarify if there are such requirements for domestic insurance companies?  
To provide insurance services in Brazil, any company must be incorporated under Brazilian law. All 
companies incorporated in Brazil are deemed "Brazilian companies", regardless of the origin of the 
capital.  
Page 15 (Para 3.12)  
As it is said in the Report, "Alongside its MERCOSUR associates, Brazil is looking for new partners 
to increase, diversify and improve its trade relations, in order to ensure the growth and stability of 
the Brazilian economy and a compe titive insertion of the country in the global scenario."  
Question:   
22. Could Brazil kindly inform with which countries Brazil is going to conclude preferential 
agreements in the near future?  WT/TPR/M/358/Add.1  
 
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  According to MERCOSUR Decision Nº 32 (29th June 2000), MERCOSUR members are committed to 
negotiate as a bloc any agreement of commercial nature. Therefore, along with its MERCOSUR 
partners, Brazil is currently negotiating free trade agreements with the Eur opean Union and EFTA. 
Until the end of 2017, the bloc plans to hold first rounds of FTA negotiations with Lebanon and 
Tunisia. Mercosur has also been working on the expansion of its preferential agreement with India.  
Brazil is also currently engaged in tr ade negotiations with Mexico in order to expand the coverage 
of a current preferential agreement under the Latin American Integration Association -LAIA 
(Economic Complementation Agreement Number 53). Brazil expects to conclude negotiations in 
the near futur e. 
Page 17 (Para 3.23)  
The Report mentions about the Protocol on Cooperation and Facilitation of Investments (Decision 
CMC 03/17), signed in April 2017, which represents a milestone in the regulation of investments in 
the region and addresses the business  community's interest in minimizing risks and preventing 
disputes related to investments.  
Question:   
23. Could Brazil kindly describe measures stipulated by the Protocol on Cooperation and 
Facilitation of Investments?   
The CFIA model fosters a cooperative  approach, focusing on investments facilitation and dispute 
prevention for a more productive business environment.  
The creation of this model took into account debates and studies of international organizations and 
economic forums such as the Organization for Economic Co -operation and Development (OECD), 
the United Nations Conference on Trade and Development (UNCTAD), the International Institute 
for Sustainable Development (IISD) and the G20, besides valuable benchmarks on the theme and 
country examples.  
The premise of the CFIAs is the long -term perspective that states need to cooperate and maintain 
fluent and organized dialogue with investors to foster sustained investments. It is a new concept of 
agreement focused on stimulating and supporting mutual inves tments (adopting the concept of 
investment facilitation), aiming at boosting reciprocal investment flows and opening new and 
sustainable integration activities between the states. The model is therefore in line with the 
development agendas at the G20 and o ther international forums, especially with the more recent 
discussions on investment facilitation —which have benefited a lot from the Brazilian model 
agreement as an example —as it fosters the improvement of investment conditions to amplify 
business opportu nities and stimulate private sector investments.  
The CFIA model is composed of four main substantive parts, discussed in detail as follows.  
a. Scope of the agreement and definitions  
The definition of investment plays an essential role, since the CFIAs cover only FDI, which is the 
kind of investment seen as able to play a more decisive role in the development of the states. 
Portfolio investments are explicitly excluded from the scope of the CFIAs, since they encompass 
essentially short -term and speculati ve investment.  
b. Regulatory measures and risk mitigation  
The national treatment and most -favoured -nation (MFN) treatment clauses establish that foreign 
investors must be treated no less favourably than domestic investors or investors from third 
parties. A  few existing exceptions are preserved, such as the prohibition of investments in border 
regions. The model does not limit new public policy measures, if they are not discriminatory. There 
also are articles on transparency, on the freedom of investment -related transfers, and an article 
about expropriation, which determines that direct expropriations are not allowed, unless they are 
made in the public interest, in a non -discriminatory way, in accordance with due process of law WT/TPR/M/358/Add.1  
 
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  and on payment of effective com pensation. The expropriation article does not cover indirect 
expropriation.  
An important innovation in relation to other investment agreement models is the introduction of 
clauses on corporate social responsibility based on the OECD Guidelines for Multinat ional 
Enterprises,[10] provisions against corruption and, in the most recent negotiations, specific 
exceptions for the protection of human, animal and plant life. This is in line with Brazil's wish that 
investments be socially responsible and contribute to  sustainable development.  
c. Institutional governance and dispute prevention and settlement  
Under the CFIAs, each partner state must create a centralized mechanism (Ombudsman or Focal 
Point) to receive investors' queries and demands. The Ombudsman analyzes  the demands and 
questions posed and, coordinating with the governmental entities related to the issue through 
expedited proceedings, provides the investor with an answer or solution. The objective is that 
foreign investors have at their disposal effective  means to overcome hardships and challenges 
faced to make and maintain the investment and to foster a good business environment. Brazil's 
Ombudsman was established within the Chamber of Foreign Trade (CAMEX), an inter -ministerial 
body responsible for formu lating, adopting and coordinating trade and investment policies.  
The CFIAs also innovate through the constitution of a Joint Committee for state –state cooperation 
and dispute prevention. The dispute prevention component works through a mechanism in which 
representatives of the investors and governments involved can share their views on the issue 
raised by the investors and look for a solution on a common ground.  
If the parties fail to find a common ground, the states involved can initiate international arbi tration 
as a last resort. The CFIAs do not provide for investor –state arbitration. The main purpose of the 
state–state arbitration is to determine whether the host state violated any of the disciplines of the 
agreement and, if so, recommend that the state adjust or eliminate its nonconforming measure.  
d. Agenda for Further Investment Cooperation and Facilitation  
The cooperation aspect of the Joint Committee's attributions is exercised especially through the 
development of the Agenda for Further Cooperation and Facilitation, which can include themes 
such as business visa facilitation, exchange of legislation information and logistics. These topics 
move forward depending on the common interest of the partner states. Therefore, the agenda is 
intended to be a li ving document, which can be adapted to each case, including topics of mutual 
interest.  
Page 20 (Para 4.8)  
The Report notes that "During the period under review, Brazil took some important measures in 
order to implement the WTO Trade Facilitation Agreement  (TFA) and to improve the efficiency and 
transparency of governmental agencies responsible for dealing with international trade."  
Questions:   
24. Would Brazil please clarify measures taken in order to implement the WTO Trade Facilitation 
Agreement (TFA) an d to improve the efficiency and transparency of governmental agencies 
responsible for dealing with international trade?  
Each of the different provisions of the TFA was translated into governamental efforts to adapt 
procedures and legislation. Progress ach ieved in recent years enabled Brazil to reduce its waivers 
(Annex B) from 5 to 3 commitments.  
25. Was there any action plan for the TFA implementation?  
Since the signature of TFA agreement the Brazilian government has been taking actions to 
improve its trading environment, through the Working Group on Trade Facilitation (GTFAC). In 
2016, with the imminent entry into force of the TFA, GTFACs role was trans fered to a new body, 
the National Committee on Trade Facilitation (CONFAC), also under CAMEX. It is the permanent WT/TPR/M/358/Add.1  
 
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  duty of CONFAC to monitor the implementation of Brazil´s commitments under the TFA and 
further its objetives.  
26. What is the main governmenta l agency responsible for implementation of the TFA provisions?  
The National Committee on Trade Facilitation (CONFAC), established under the Foreign Trade 
Board (CAMEX) by the Federal Decree Nº8.807, of July 12, 2016.  
Pages 20 - 21 (Para 4.9)  
According to the Report "The "Programa Portal Único de Comércio Exterior" (Foreign Trade Single 
Window Program) is at the centre of Brazilian trade facilitation policies. It is an ongoing initiative 
aimed at updating and streamlining all import, export and transit rout ines. Once fully operational, 
the Portal will support more efficient, harmonized and integrated procedures between public and 
private stakeholders in foreign trade. Following this reformulation, next steps involve the 
development and integration of informa tion flows corresponding to each process, as well as the 
computerized systems assigned to manage them."  
Questions:   
27. Would Brazil kindly describe the main economic effects and indicators expected due to the 
implementation of the Foreign Trade Single Wi ndow Program in such directions as streamlining 
foreign trade procedures and formalities, reducing the number of import and export licensing 
requirements, fastening registration and customs procedures, possible cutting down fees for 
registration, charges a nd other taxes related to imports and exports?  
Once the Single Window is fully operational, the average time of the import operations is 
estimated to be reduced from 17 to 10 days; for export operations, the estimated time reduction 
will be from 13 to 8 da ys. A study carried out by Lucas Ferraz at the Getulio Vargas Foundation 
(FGV) indicates that the Brazilian GDP could increase up to 2,52% in the coming 14 years and that 
the trade chain would increase 6 to 7 % a year with the implementation of the Single Window.  
28. When will this Program be fully operational?  
The program is expected to be fully operational for exports on all modals by the end of the current 
year, and by the end of 2018 for imports.  
Page 21 (Para 4.16)   
The Report states that "a national foreign trade enquiry point was established by CAMEX 
Resolution No. 78 of 2 October 2013: the "Comex Responde" tool 
(http://comexresponde.comexbrasil.gov.br/ ). It centralizes the information requirements 
regarding: import and export regulations, documents  and formalities; international trade 
agreements; trade logistics; tariffs, fees, charges and other taxes related to imports and exports; 
and goods classification. Users are able to request information electronically, in Portuguese, 
English or Spanish.".  
Questions:   
29. Would Brazil please clarify under what governmental body such national foreign trade enquiry 
point operates?  
The enquiry point operates under 'COMEX Responde', which is managed by the MDIC`s Secretariat 
of Foreign Trade Receita Federal.  
30. What authorities are responsible for managing of this tool and for preparation of information 
requested?  
'COMEX Responde' is managed by the MDIC`s Secretariat of Foreign Trade which is mandated to 
process and distribute exporters and importers questions a nd doubts regarding any trade WT/TPR/M/358/Add.1  
 
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  procedure and distributed them to all 22 government agencies in charge of export and import 
procedures.  
31. How is proper cooperation between interested bodies organized while preparing needed 
information?  
MDIC's Secretariat o f Foreign Trade monitor answers through 'COMEX Responde' and follow up 
with agencies responsible for trade policies.  
Page 22 (Para 4.18)  
The Report says that "Brazil ratified the TFA in February 2016, contributing to the entry into force 
of the Agreement earlier this year. The country structured and launched an inclusive and effective 
national trade facilitation committee and completed its notification duties, including an update on 
its category A commitments (immediate implementation) and the publication of its category B 
commitments (deferred implementation). Brazil is currently committed to implement all but three 
provisions of the agreement. Moreover, at both the WTO and the WCO, Brazil has offered to share 
its experience with other developing countries  in the implementation of the TFA agreement and, 
particularly, in structuring its national trade facilitation committee."  
Questions:  32. Could Brazil kindly provide some more details about the National Trade Facilitation 
Committee (including general proced ure of its operation and main functions)?  
The National Trade Facilitation Committee (CONFAC) was created by Presidential Decree 
No. 8807/2016. The Committee is responsible for guiding, coordinating, harmonizing and 
supervising the activities of federal age ncies related to foreign trade operations, bearing in mind, 
among others, the implementation of Brazil's commitments under the TFA. CAMEX Resolution 
No. 122 of 2016 approved the CONFAC's terms of reference.  
Private sector participation is important. A Coo peration Subcommittee has been established to 
allow public and private stakeholders to work together in order to improve trade facilitation in 
Brazil. This subcommittee provides for the participation of representatives from importers and 
exporters; the ind ustrial and agricultural sectors; trade -related services providers (logistic 
operators, brokers, insurers, etc.); and medium and small businesses.  
A general description of CONFAC and its main functions can be found in 
www.camex.itamaraty.gov.br/confac.  
The procedures of its operation are detailed in CAMEX Resolution Nº 122, of 23 November 2016, 
which aproved the internal rules of the procedures of CONFAC (Regimento Interno), available at: 
www.camex.itamaraty.gov.br/index.php?option= com_content&view=articl e&id=1753.  
33. What measures are planned by this Committee to ensure compliance with the TFA provisions?  
Most provisions of the TFA are already in force in Brazil. The National Committee on Trade 
Facilitation (CONFAC),  has recently approved a two -year action plan which includes the objectives 
of not only ensuring formal compliance but also improving the levels of compliance.  
34. Would Brazil please describe possible forms of sharing its experience with developing countr ies 
in the implementation of the TFA agreement and in structuring its national trade facilitation 
committee?  
The Brazilian Government would be pleased to share its experience through presentations at the 
WTO in Geneva, or through workshops in Brasilia or in partners countries.  
Page 24 (Para 4.33)  
In 2016 Brazil ratified the Convention Abolishing the Requirement of Legalization for Foreign Public 
Documents, which also simplified the procedure for the submission of documents, and in addition 
to the Law No.  12.995, of 2014, it made possible the submission of documents in any official WT/TPR/M/358/Add.1  
 
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  language of the WTO without any translation to Portuguese, which facilitate the participation of 
interested parties in trade remedy investigations conducted by Brazil.  
Each of the different provisions of the TFA was translated into governamental efforts to adpat 
procedures and legislation. Progress achieved in recent years enabled Brazil to reduce its waivers 
(Annex B) from 5 to 3 commitments.  
Questions:   
35. Would Brazil, pleas e, clarify whether language requirements are also attributed to 
application/submission requesting review of the measures in force? (MDIC)  
As provided for in Article 18 of Law No. 12995/2014, for the purposes of the investigations carried 
out under the Agreements that regulate the provisions of Articles VI, XVI and XIX of the GATT, 
documents produced in the official languages of the World T rade Organization (WTO) may be 
incorporated into the investigation files. Therefore, the language requirements are the same for 
the investigations conducted by the Department of Trade Remedies (DECOM), regardless of the 
type of document submitted by the in terested parties.  
36. Would the investigating authority initiate the review based on the application submitted by 
exporter in any official language of the WTO?  
The Brazilian investigating authority is allowed to initiate a review based on the application 
submitted in the official languages of the WTO, since Article 18 of Law No. 12995/2014 authorizes 
the incorporation of documents produced in one of those languages.  
37. Does the Law No. 12.995, of 2014 provide that the questionnaire for exporters is also a vailable 
in any official language of the WTO? (MDIC)  
Law No. 12995/2014 does not provide that the questionnaire for exporters should be made 
available in any official language of the WTO. Nevertheless, in all antidumping investigations 
conducted by the Bra zilian investigating authority, the questionnaire for exporters is available in 
Portuguese as well as in English. Regarding the answers by the exporters, as provided for in Article 
18 of the aforementioned Law, any of the official languages of the WTO are accepted.  
38. Would Brazil also clarify what is the language of the public hearings in the framework of trade 
remedies cases?  
The public hearings are conducted in Portuguese. If interested parties choose to intervene in 
another language, a simultaneous in terpretation is required. According to paragraph 6º of Article 
55 of Decree 8058/ 2013, the Department of Trade Remedies shall only consider oral information 
presented at the hearing if such information is submitted in writing and filed within a period of ten 
(10) days following the hearing. It is therefore mandatory that the transcript of the oral 
manifestation is provided in Portuguese, in one of the official languages of the WTO; it provided in 
any other language, it must be accompanied by a sworn tran slation.  
39. Would it be allowed for interested parties to present their arguments in any official language of 
the WTO?  
As provided for in Article 18 of Law No. 12995/2014, for the purposes of the investigations carried 
out under the Agreements that regul ate the provisions of Articles VI, XVI and XIX of the GATT, 
documents produced in the official languages of the World Trade Organization (may be 
incorporated into the investigation files. Therefore, the language requirements are the same for 
the investig ations conducted by the Department of Trade Remedies (DECOM), regardless of the 
type of document submitted by the interested parties.  
PART IIІ: OTHER QUESTIONS  
According to available information Brazil introduced restrictions on use of chrysotile asbestos  in 
many Brazilian federative states, despite of its own mining.  WT/TPR/M/358/Add.1  
 
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  Questions:   
40. Could Brazil kindly inform whether Brazilian legislation provides for any restrictions (or ban) on 
importation and use of asbestos (or products containing asbestos)?  
41. If s o, what was the rationale behind establishing such measure?   
The Federal legislation published by ANVISA includes the following restrictions to the use of 
chrysotile asbestos:  
ANVISA's 
regulation  Details  
Resolution RDC 89, 
of June 2016  Regulates the use of cellulosic material used for filtering (hot), applied to food. Item 
3.2.2 of the regulation establishes that the mixture of aluminum, calcium or 
magnesium silicates, including kaolin and talcum powder as long as free of asbestos, 
might be used as auxili ary raw materials in the formulation of cellulosic material in 
contact with food. The technical regulation takes in consideration recommendations of 
IARC (International Agency for Research on Cancer). This Resolution is harmonized 
with MERCOSUR partners.  
Resolution RDC 11, 
of March 2014  Regulates the service of dialysis in Brazil. Article 54 of this Resolution establishes that 
the water reservoir of the unity that provides the dialysis service is made of asbestos -
free material.  
Resolution RDC 83, 
of June 2016 List of the substances that might not be used in cosmetics. Asbestos are included as a 
forbidden substance (item 762). The technical regulation takes in consideration 
recommendations of IARC (International Agency for Research on Cancer) and the 
Europe an Commission (CMR substances 1a, 1B and 2). This Resolution is harmonized 
with MERCOSUR partners.  
Resolution RDC 17, 
of April 2010  Regulates Good Manufacturing Practices for Pharmaceutical products. Article 384 
prohibits the use of filtering systems cont aining asbestos. This Requirement is in line 
with recommendations of the World Health Organization (WHO Expert Committee on 
Specifications for Pharmaceutical Preparations - Technical Report Series, No. 902) that 
states that for aseptic processing and steri lization by filtration "Asbestos -containing 
filters must not be used under any circumstances". This Resolution is harmonized with 
MERCOSUR partners.  
ADDITIONAL QUESTIONS  
WTO Secretariat's Report (WT/TPR/S/358)  
Question: In April 2017, Brazil announced the  reactivation of Pernio para Escoamento do  Produto 
(PEP) and Premio de Equalizafao pago ao Produtor (PEPRO) support for the state  of Mato Grosso 
for up to R$500 million (USD 166 million) for corn. Brazil is the thirdlargest  producer and second -
largest expo rter of corn globally. Further, Mato Grosso  typically exports over one -half of that 
state's production to overseas markets, according to  Brazilian government statistics. The state is 
estimated to have record corn production this  year of 24.9 million tonnes  with nearly all of it 
produced in the second crop, according to  the Brazilian government's Companhia Nacional de 
Abastecimento (CONAB). In addition  to publically available data from CONAB, МАРА, and MDIC 
related to prior uses of PEP  and PEPRO funds, recen t media reports regarding PEP and PEPRO 
payments to support  wheat exports from Rio Grande do Sul also raise serious concerns about the 
trade -distorting  effects of these programs.  
a. Given numerous press reports indicating that corn and wheat producers are again benefiting 
from PEP and PEPRO support, can Brazil explain why the programmes are being used, as 
announced by the government of Brazil and confirmed by Brazilian press reports?  
PEPRO or PEP payments for wheat and corn have been reinstated because the domestic price for 
both products has fallen below the minimum price established by the government. Nonetheless, 
the level of support for both products will be surely well below Brazil's AMS.  
b. CONAB announcement states that in order for a producer to participate in PEPRO, they must 
produce a proof of sale, which may include an export registration, and/or export declaration. For 
commodities that received PEP/PEPRO support between 2003 and 2016, p lease provide 
information related to those required proofs sale (e.g., the percent of the commodity under the WT/TPR/M/358/Add.1  
 
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  program that was deemed eligible for payment based primarily or solely on export 
registration/declaration). Can Brazil explain how it is ensuring that PEP and PEPRO benefits are not 
supporting the export of corn from Mato Grosso and wheat from Rio Grande do Sul?  
PEPRO or PEP payments are made upon receipt of internal commercialization or export 
registration/declaration. Both programs are not conting ent on exports. As the support is based on 
the difference of the minimum price and the domestic price (and not the international market 
price), it is clear the programs are not export programs.  
c. If information is not readily available for all years, plea se provide export data for  wheat, corn, 
and rice for each year since 2010 and indicate when other information  will be made available.  
Table of exports of rice, corn and wheat  
Exports from Brasil  
Year  Rice Corn  Wheat  
2010 US$  162,696,040  2,136,821,755  225,391,135 
Volume (Kg)  430,429,398 10,792,580,771 1,316,833,720 
2011 US$  612,616,941  2,624,526,081  697,791,204 
Volume (Kg)  1,350,852,024 9,459,471,452 2,347,335,230 
2012 US$  545,246,645  5,287,267,448  618,755,345 
Volume (Kg)  1,152,390,402 19,775,331,373 2,404,562,838 
2013 US$  399,955,743  6,250,564,817  347,800,074 
Volume (Kg)  917,859,193 26,610,205,941 1,187,730,763 
2014 US$  391,189,311  3,875,969,010  100,499,756 
Volume (Kg)  914,755,059 20,638,755,953 276,800,075 
2015 US$  350,115,249  4,937,592,604  353,213,309 
Volume (Kg)  961,473,175 28,902,801,262 1,778,710,513 
2016 US$  250,307,172  3,655,162,057  115,061,509 
Volume (Kg)  696,830,078 21,842,345,093 712,842,176 
Question: Ukraine is seeking further clarification concerning the mechanism used by  Brazil to 
support its domestic industries. Could Brazil kindly provide explanation regarding  the current tax 
preferences granted to the local companies which may affect fair competition  with imported goods, 
and which appeared to be incompatible with TRIMs commitments?  
Brazil's programmes are aimed at improving technology, workforce capacity and innovation. They 
do not discriminate between domestic and imported products. Brazil's industrial programmes are 
established after a long proc edure of consulting with many stakeholders of the government and 
the private sector. The programmes in place are regularly reviewed and can be modified or 
improved according to specific circumstances  
Promoting trade and enhancing competitiveness is a perma nent objective of Brazil´s industrial 
policies. The policy tools to achieve this objective are constantly reviewed in light not only of the 
specific circumstances of each and every case but also taking into considerations Brazil´s 
commitment under internat ional law  
Since 2015 there has been a growing interest by the federal government on monitoring and 
evaluating programs and policies adopted in Brazil. As a result, some of the Brazilian development 
policy tools are being revised. There is also an increased  focus on structural reforms to promote 
competitiveness and contribute to the improvement of the business, attraction of productive 
investments and innovation and productivity.  
Question:  Ukraine highly appreciates efforts undertaken in recent years by the government of 
Brazil to protect and enforce intellectual property rights. We welcome the ratification by Brazil in 
December 2015 of the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who 
Are Blind, Visually Impaired or Otherwise Print  Disabled, which was adopted on June 28,2013 in 
Marrakesh. In this context, we would like to know about the plans of Brazil to join/accept the 
Beijing Treaty on Audiovisual Performances (this Treaty not yet in force), adopted on June 26, 
2012?  
Currently th ere are no plans to join the Beijing Treaty on Audiovisual Performances.  WT/TPR/M/358/Add.1  
 
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  Regarding 2.2.5 Government procurement  
Question: What is the current approach of Brazil regarding the WTO's  Agreement on Government 
Procurement (GPA)? Brazil is neither a member, nor an observer of the GPA. Any plans to consider 
accession?   
The Agreement on Government Procurement (GPA) consists of 19 parties covering 
47 WTO members (counting the European Union and its 28 member states, all of 
which are covered by the Agreement, as one party). Another 29 WTO members and 
four international organizations participate in the GPA Committee as observers. 10 of 
these members with observer status are in the process of acceding to the Agreement. 
Ukraine has joined the GPA on May 18, 2016.  
In this  regard, Brazil has engaged in bilateral or regional initiatives related to public procurement 
commitments based on the WTO's GPA principles.  
Regarding 4.1.4 Sanitary and phytosanitary issues  
Question: Brazil is committed to animal and plant health and foo d safety in  accordance with the 
WTO Sanitary and Phytosanitary agreement. In June 2017 the  USA suspended all imports of fresh 
beef from Brazil because of recurring concerns  about the safety of the products intended for the 
American market. What measures  Brazil is going to take in order to counter concerns about the 
safety of its beef  exports?  
U.S. Secretary of Agriculture Sonny Perdue announced on June 22, 2017 the  
suspension of all imports offresh beeffrom Brazil because of recurring concerns  about 
the safety of the products intended for the American market. The  suspension of 
shipments will remain in place until the Brazilian Ministry of  Agriculture takes 
corrective action which the USDA finds satisfactory.  
Since March, USDA's Food Safety and Inspection Service (FSIS) has been  inspecting 
100 percent of all meat products arriving in the United States from  Brazil. FSIS has 
refused entry to 11 percent ofBrazilian fresh beefproducts. That  figure is substantially 
higher than the rejection rate of one percent o f shipments  from the rest of the world. 
Since implementation of the increased inspection, FSIS  has refused entry to 106 lots 
(approximately 1.9 million pounds) of Brazilian beef  products due to public health 
concerns, sanitary conditions, and animal health  issues.  
The Brazilian government had pledged to address those concerns, including by  self-
suspending five facilities from shipping beef to the United States.  
Regarding the suspension of beef imports by the U.S., measeures were immediately taken by the 
Brazilian inspection system to address the situation. The Department of Animal Product 
Inspections (DIPOA), determined that all bovine slaughtering units under the Federal Inspection 
System (SIF) reinforce their post -slaughter inspection lines. Official verif ication for HACCP (Hazard 
Analysis in Critical Control Points) was temporarily increased to daily inspections.  
Relating to the "Carne Fraca " operation, beyond the actions announced at the SPS Committee 
March 2017 meeting, contained in document G/SPS/GEN/1 545, the following measures were 
taken:  
a) the Sanitary Inspection Regulation (RIISPOA) was updated with the objective to fight 
economic fraud and improve food safety. The new regulation establishes severe penalties for 
irregularities ranging from heavy fines  to losing of the federal inspection approval seal (SIF), in 
case of reincidence in non -compliance;  
b) the Ministry of Agriculture established the "Compliance Program ", to prevent and correct 
misconduct. Private companies in the agribusiness sector may enroll  in the program and be 
certified with the AGRO+ INTEGRIDADE (Agro+Itegrity) seal.  
Brazil remains confident that our sanitary controls are robust and trustworthy and we thank our WT/TPR/M/358/Add.1  
 
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  trade partners that have expressed confidence in our system by keeping their m arkets open to our 
animal products. The lessons learned in this case were useful the process of updating and 
improving our inspection regulation.  
Regarding 4.1.7 Intellectual property  
Question: Brazil remains on the Office of the US Trade Representative Sp ecial Report 301 Watch 
List in 2017; What steps does Brazil plan to take in order to  achieve progress with respect to the 
counterfeiting and online piracy in Brazil?  
The Office of the Untied States Tirade Representative (USTR) is responsible for  the 
preparation of the Special Report 301. The Report is the result of an annual  review of 
the state of intellectual property protection and enforcement in U.S.  trading partners 
around the world, which the Office of the United States Trade  Representative (USTR ) 
conducts pursuant to Section 182 of the Trade Act of  1974, as amended by the 
Omnibus Trade and Competitiveness Act of 1988, the  Uruguay Round Agreements Act, 
and the Trade Facilitation and Trade  Enforcement Act of 2015 (19 U.S.C. §2242).  
Ukraine remains on the Priority Watch List in 2017.  
Articles 18 to 21 of the Civil Rights Framework for the Internet deal with the liability of Internet 
service providers (ISPs) for third parties' infringing content. The general rule is that the Internet 
service provider will not be deemed liable for user -generated content. Nevertheless, according to 
article 19, infringements regarding copyright and related rights must be subject to new legal 
provisions. Therefore, the government of Brazil must discuss a new legislation co ncerning liability 
of ISPs in copyright infringements committed by third parties. The rules of the current Copyright 
Act must be applied until there is a specific regulation. The Copyright Act does not have any 
specific provisions on ISPs' liability. Howev er, judicial authorities may order the suspension of the 
transmission or the communication the public of infringing content. The new legislation would 
establish specific rules on ISPs' liability. However, Brazil has not discussed a particular proposal 
yet. In 2015, the government organized a series of meetings with different stakeholders to discuss 
issues regarding copyright protection in the digital environment, but there was not any specific 
proposal on ISPs' liability.  
  WT/TPR/M/358/Add.1  
 
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  UNITED STATES  
Questions based on the Secretariat's Report (WT/TPR/S/358)  
Summary  
Page 9, paragraph 17: The Secretariat report cites "programmes intended to enhance the 
competitiveness of export -oriented companies" and, in particular, the BNDES. According to the 
report, the BNDES,  includes conditions for "domestic -content/production thresholds." Please 
describe the domestic -content/production thresholds applicable under this program.  
The eligibility or receipt of loans under BNDES -EXIM is not affected by the use of domestic or 
imported goods. Items produced in Brazil with a previously known reference of local content are 
eligible for financing in a more automatic way. As of 31 December 2016 such reference was 50%. 
Products that do not reach such a reference may also receive financi ng subject to a less automatic 
analysis procedure. Thus, the eligibility for financing under BNDES -EXIM is not contingent, either 
in law or in fact, upon local content requirements.  
Page 38, paragraph 2.33: The Secretariat report notes that new investment undertakings remain 
"cumbersome, bureaucratic, and expensive," particularly with respect to starting and closing a 
business. Has Brazil taken any steps to simplify the business regis tration and business closure 
processes?  
Brazil has been improving its process of the business registration and business closure. Many 
initiatives have been implemented in order to integrate the three levels of government (Federal, 
States and Municipalitie s) and, as a consequence, reduce bureaucracy and costs to the 
investors/entrepreneurs. As an example, São Paulo launched in March 2017 the initiative 
"Programa Empreenda Fácil" ("Start a Business Easily"), which has reduced the average time of 
opening a co mpany from 127 to 7 days.  
3. Trade Policies and Practices by Measure  
3.1.5 - Import prohibitions, restrictions, and licensing  
Page 54, paragraph 3.51: The Secretariat report notes that at the end of 2016, "non -automatic 
import licensing requirements could a pply to at least 5,460 tariff lines (more than half of Brazil's 
entire tariff)." In its intervention at the 5 May 2017 meeting of the Committee on Import 
Licensing, Brazil stated that it was revising the list of products subject to non -automatic import 
licensing requirements. Can Brazil please provide more information on this undertaking?  
The Brazilian Government recently created the National Committee on Trade Facilitation 
(CONFAC). The Committee has been conducting studies in order to reduce the number o f non -
automatic licenses, either by the revision of the current legislation or by promoting the 
coordination of the agencies to reduce the overlap of procedures.  
The number of products currently requiring licensing is determined by different rules and 
regulations applying to each agency which authorizes import, export or transit operations. The 
Brazilian government is committed to promote a review of the number of products that require 
licensing, with the aim of reducing it. However, this is a complex task,  involving a large number of 
accredited agencies, most of which enjoy administrative independence. Moreover, the desired 
outcome will lead to changes in procedures, standards and, possibly, laws, which depend on 
congressional approval. In view of this comp lexity, it would not be advisable to speculate about 
time limits for this work, but progress should be gradually made over the next months. The review 
of the Import Licenses regime is being coordinated by CAMEX, where a Working Group on Trade 
Regulations h as been established. The work will also count on the support of the National Trade 
Facilitation Committee (CONFAC).  
Page 54, paragraph 3.52: The Secretariat report states that "the granting of non -automatic 
licenses for imports of used machinery and equipm ent is conditional on proof that such items are 
not produced in Brazil and cannot be substituted by a similar item currently produced in Brazil." 
Can Brazil please explain what human, plant, or animal health risk Brazil aims to mitigate with this WT/TPR/M/358/Add.1  
 
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  requireme nt? What is the procedure for importers to supply evidence that such items are not 
produced in Brazil and what must such evidence include?  
This is a measure necessary to protect human life and health and the environment, by protecting 
Brazil's public and the environment from dangers caused by solid wastes. It avoids the 
unnecessary generation of additional solid wastes, its accumulation and disposal, which presents 
well-recognized dangers to public health and the environment. The verification of the nation al 
production of a product occurs through a public consultation. Initially, the importer registers the 
license with the good to be imported and, later, the Brazilian government conducts a public 
consultation to verify if there is production of that good in  the country. To access the public 
consultation link: http://www.mdic.gov.br/index.php/comercio -exterior/importacao/material -
usado -similaridade/consulta -publica.  
3.1.6 - Anti-dumping, countervailing, and safeguard measures  
Page 55, paragraph 3.53: Footnote 72 states that, "While DECOM may not initiate a review 
without a request from a Brazilian industry, it may decide to include additional exporting countries 
in duly initiated proceedings whenever there is sufficient informa tion justifying such a decision." 
Please explain the circumstances under which DECOM would invoke this provision and please 
indicate whether DECOM has ever done so.  
There is no possibility of inclusion, on the initiative of the investigating authority (De partamento de 
Defesa Comercial – DECOM), of other exporting countries under a review procedure. However, this 
circumstance may occur in original investigations where the petitioner, for some reason of a 
particular nature, does not include among the origins  a country for which there is evidence of 
dumping and whose exports of the product under investigation have shown significant growth 
during the period of investigation. To date, DECOM has adopted this procedure in some cases, i.e. 
offset plates, methylene diphenyl diisocyanate and coated paper.  
3.2.4 - Export support and promotion  
3.2.4.1 - Export support schemes  
Page 59, paragraph 3.74: The Secretariat Report states that Brazil launched the National Export 
Plan (2015 -18), which is aimed at increasing export s, including through improvements in export 
financing and guarantees. Please explain what specific actions Brazil is taking on export financing 
and guarantees under the National Export Plan.  
The National Export Plan encompasses a set of policies focused on  trade facilitation, trade 
promotion and trade intelligence aiming at encouraging Brazilian companies to participate more 
actively in international trade.  
Considering that the National Export Plan (PNE) is being reviewed by the current administration, 
there is no specific action regarding export financing and guarantees within its framework being 
taken at this moment. However, the following measures were implemented in 2015 under the 
Plan: 
1) The budget allocated to the PROEX - Equalization and to the BNDES -EXIM post -shipment credit 
line and the maximum exposure limit to credit risk of the FGE were adjusted. The aim was to 
guarantee that Brazilian exporters would have access to these instruments, in a context of 
budgetary restraints.  
2) The eligibility requ irements that companies must fulfill to have access to the short -term (lower 
than two years) export credit insurance (SCE) were reviewed. This modality of the SCE – on the 
contrary of long -term coverages – is available exclusively to small -sized enterprise s, defined as 
such according to parameters established by the CAMEX. One of these parameters, the maximum 
annual value of exports, was raised.  
3) The FGE coverage of bid bonds, performance bonds, and advanced payment bonds, previously 
available only to ope rations involving defense products, was extended to exports of agricultural 
goods.  WT/TPR/M/358/Add.1  
 
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  3.2.5 - Export finance, insurance, and guarantees  
Page 62, paragraph 3.88 -3.89:  The Secretariat Report states that Banco do Brasil S.A. administers 
outlays from the federal b udget regarding PROEX.  
 Please confirm whether Banco do Brasil S.A.  administers all federal budget outlays for export 
financing programs which benefit agricultural products (including programs that are not solely 
related to agriculture. If not, please identify other relevant entities.  
Banco do Brasil S.A is hired by the f ederal government to administer the PROEX, therefore it 
undertakes the operational procedures of the program. Additionally, the bank may provide 
commercial funding for exports, using its own capital, like any other private financial institution in 
Brazil.  
 Please identify and describe each export financing support program which receives funding 
directly or indirectly (including Banco do Brasil S.A.'s or other entities' own resources) from the 
federal government.  
Public funds in support of Brazilian exports a re made available at the federal level of government. 
The available programs for official support are: (i) Export Financing Programme (PROEX); (ii) 
Export Guarantee Fund (FGE); and (iii) The Brazilian Development Bank (BNDES) export credit 
schemes under th e BNDES -EXIM. None of these programs are solely related to agriculture, and 
many agricultural products are not eligible for support.  
Regarding the Export Financing Program (PROEX), the National Treasury has specific resources 
allocated in the federal budge t for the Program in order to provide official support to Brazilian 
exports in two modalities: PROEX Direct Financing and PROEX Interest Support.  
PROEX Direct Financing: government provides direct financing for exporters (supplier's credit) and 
buyers (bu yer's credit) of Brazilian services and goods. The Program covers several sectors, 
including machinery and equipment; repayment period is up to ten years.  
PROEX Interest Rate Support: the interest rate support aims to reduce the interest rate export 
finance charged by financial institutions in order to support Brazilian exports of goods and 
services. Export credit is granted by financial institutions and the government (PROEX) assumes 
part of the financial cost, allowing interest rates to be compatible wit h those practiced in the 
international market.  
The Export Guarantee Fund (FGE) guarantees exports of domestic goods and services in 
operations longer than two years. For micro, small and medium enterprises, the FGE also provides 
export guarantees for opera tions shorter than two years. Other operations for periods below two 
years are served by the private insurance market. Since agricultural products usually have a 
repayment tenor below two years, these transactions would be covered by the market.  
 What are B razil's plans to notify all of its export financing support programs identified in 
Brazil's 2016 Export Competition Questionnaire under the Nairobi Decision on Export 
Competition?  
All export financing support programs have been notified under the Nairobi Decision on Export 
Competition.  
Page 62, paragraph 3.90: We understand Brazil's maximum concessionality level to be 35 percent. 
Is there a minimum concessionality level? If so, please explain.  
Under Resolution nº 3.445, of May 26th 2014, the National Monetary Council defines that the 
maximum concessionality level should be up to 35 percent, whereas there is no provision 
regarding a minimum concessionality level.  
Page 64, paragraph 3.98:  The Secretariat states that Banco do Brasil S.A . and Caixa Econômi ca 
Federal  administer PROGER Export, an export financing facility. Does Brazil any other export 
financing facilities (e.g., FAT, Brazil's Sovereign Wealth Fund ( Fundo Soberano ), etc.) mandated by WT/TPR/M/358/Add.1  
 
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  the federal government to fund Banco do Brasil S.A . and Caixa Econômica Federal , which can be 
used for supporting the export of agricultural products? If so, please identify them.  
Brazil does not have export financing programs directed exclusively to agricultural products. 
Comprehensive information on the existing  official programs is provided by the Brazilian answers 
to the US questions above relating to paragraphs 3.88 and 3.89 of the Secretariat Report.  
Page 65, paragraphs 3.100 and 3.101:  The Secretariat Report states that the Brazilian Guarantees 
Agency (ABGF)  provides support in the administration of the federal export credit insurance (SCE). 
Does Brazil provide any other sources of funding to ABGF for export financing support schemes?  
The Brazilian Guarantees Agency (ABGF) is a public enterprise reporting to the Ministry of 
Planning, Development and Management that has been hired by the Ministry of Finance to provide 
the necessary services to support the issuing of insurance policies (e.g. risk assessment, legal 
opinions and project analysis). The federal expo rt credit insurance (SCE) scheme is backed by 
Brazil's Export Guarantee Fund (FGE). ABGF is responsible for the structuring, management and 
monitoring of the SCE operations. The granting of SCE coverage is authorized / underwritten by 
the Secretariat for I nternational Affairs (SAIN) of the Ministry of Finance. The FGE is financed with 
resources from the federal budget and with proceeds and financial gains from the fund's own 
activities and financial operations. According to the Law 12712, article 38(d), ABG F can provide 
insurance against commercial risks in international trade operations with its own resources. 
Nevertheless, this mechanism was never used.  
3.3.1.3 - Federal financing facilities  
Page 70, paragraph 3.122:  The Secretariat report states that the a ctivities of the Brazilian 
Development Bank ( BNDES ) are funded by returns on its operations; resources raised in foreign 
markets; a portion of all contributions to the FAT; and public funds provided by the Federal 
Government. Does Brazil utilize any other sources of funding to provide export financing support 
programs for agricultural or any other products?  
Brazil does not have export financing programs directed exclusively to agricultural products. 
Comprehensive information on the existing official program s and their sources of funding is 
provided by the Brazilian answers to the US questions above relating to paragraphs 3.88 and 3.89 
of the Secretariat Report.  
Page 70, paragraph 3.123:  The Secretariat states that BNDES  maintains a number of schemes 
that fac ilitate access to credit, either directly or through accredited financial institutions. Please 
identify and explain each credit scheme used for export financing support (including indirect 
schemes through the Brazilian banking sector) for agricultural and food products. Please explain 
any cross -financing activities provided by BNDES  to Banco do Brasil S.A.  and Caixa Econômica 
Federal . Why did Brazil not include the export financing support programs for agricultural or any 
other products provided by BNDES  in its 2016 Export Competition Questionnaire?  
BNDES -EXIM does not finance agricultural commodities. Certain processed food products are 
eligible for BNDES -EXIM financing under pre -shipment credit line. This line supplies working capital 
for Brazilian export ers. 
In the case of export financing, Banco do Brasil S.A. and Caixa Econômica Federal are accredited 
to act as on -lending banks in BNDES's indirect operations.  
3.3.2 - Standards and other technical requirements  
Page 73, paragraph 3.133: The Secretariat report states that "some 31 federal agencies are 
responsible for issuing technical regulations and determining conformity assessment systems in 
their respective areas of competence." Could Brazil provide the names of these agencies and their 
respective areas of expertise?"  
Agency  Areas of Expertise  
Brazilian Space Agency  
(Agência Espacial 
Brasileira - AEB) Promote the development of space activities of national interest - Execute the 
National Policy for the Development of Space Activities - establish standards and 
issue permits and authorizations related to space activities. (www.aeb.gov.br)  WT/TPR/M/358/Add.1  
 
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  Agency  Areas of Expertise  
National Water Agency  
(Agência Nacional de 
Águas – ANA) Implement the National Water Resources Policy - edit norms, ex ercise disciplinary 
power, grant the right to use water resources in water bodies of the Union's 
domain, among other functions. (http://www2.ana.gov.br)  
National Civil Aviation 
Agency  
(Agência Nacional de 
Aviação Civil – ANAC)  Regulate and supervise the activities of civil aviation and aeronautical and airport 
infrastructure and exercise normative power. It exercises police power over 
inspection, approval and registration activities. (http://www.anac.gov.br)  
National 
Telecommunications 
Agency  
(Agência Na cional de 
Telecomunicações – 
ANATEL)  Implement the telecommunications policy;  
Regulatory power regarding telecommunications;  
Issue or recognize the certification of products observing the standards and 
norms established by the agency;  
Edit acts, issue and extinguish authorizations, issue certificates and licenses in 
the scope of telecommunications;  
Represent Brazil in international telecommunication organizations;  
To act in the defense and protection of the rights of the users repressing 
infractions and com posing or arbitrating conflicts of interest;  
Supervision - direct execution through agents.  
Brazilian Film Agency  
(Agência Nacional de 
Cinema – ANCINE)  Execute the national policy of cinema promotion;  
Supervise the compliance with the legislation regardin g the cinematographic and 
video -phonographic activity;  
Promote the fight against piracy;  
Provide the certificate of Brazilian Product to the works and registration of the 
contracts of production, exhibition, ect. (www.ancine.gov.br)  
National Electricity 
Regulatory Agency  
(Agência Nacional de 
Energia Elétrica – ANEEL)  Regulate and supervise the production, transmission, distribution and sale of 
electric energy and the provision of electric energy services and installations, in 
accordance with Brazilian legislation;  
Regulate electric energy services;  
Regulate and supervise the generation of electric, hydraulic and nuclear power. 
(http://www.aneel.gov.br/)  
National Petroleum 
Agency  
(Agência Nacional do 
Petróleo – ANP) Promote the regulation, contracting a nd inspection of the economic activities of 
the petroleum industry and the distribution and resale of petroleum and fuel 
alcohol derivatives;  
Implement the national oil and natural gas policy;  
Authorize the practice of refining, processing, transportation,  import and export of 
fuels and national fuel supply. (http://www.anp.gov.br)  
National Regulatory 
Agency for Private Health 
Insurance and Plans  
(Agência Nacional de 
Saúde Suplementar – 
ANS)  To propose policies and general guidelines to the National Suppl ementary Health 
Council - Consu for the regulation of the supplementary health sector;  
Establish the general characteristics of the contractual instruments used in the 
activity of the operators  
Establish norms related to the adoption and use, by health car e plan operators, of 
mechanisms to regulate the use of health services;  
Authorize the registration of private health care plans; among others. 
(http://www.ans.gov.br)  
National Agency of 
Waterway Transport  
(Agência Nacional de 
Transportes Aquaviários – 
ANTAQ)  Regulate or supervise, in the scope of water transport, the activities of rendering 
of services and exploitation of the transportation infrastructure, carried out by 
third parties, including private port terminals. (http://portal.antaq.gov.br)  
National Terrestrial 
Transport Agency  
(Agência Nacional de 
Transportes Terrestres – 
ANTT)  Implement the policies formulated by the National Council for the Integration of 
Transport Policies and by the Ministry of Transport;  
Regulate or supervise in the field of rail and road transport the activities of 
rendering of services and the operation of transport infrastructure, carried out by 
third parties, including the transportation of dangerous products. 
(http://www.antt.gov.br)  
National Health 
Regulatory Agency  
(Agência Nacional de 
Vigilância Sanitária – 
ANVISA)   
National Nuclear Energy 
Commission  
(Comissão Nacional de 
Energia Nuclear – CNEN)  Responsible for the orientation, planning, supervision, and control of Brazil's 
nuclear program. The CNEN establishes norms and regulations in radioprotection 
and is responsible for regulating, licensing and supervising the production and use 
of nuclear energy in Brazil. (http://www.cnen.gov.br)  WT/TPR/M/358/Add.1  
 
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  Agency  Areas of Expertise  
National Department of 
Traffic  
(Departam ento Nacional 
de Trânsito – DENATRAN)  Established in article 19 of the CTB through the established in the first paragraph 
of article 4 of Decree 4665/2003, the main ones being:  
Comply and enforce the traffic legislation and the implementation of the rules and 
guidelines established by CONTRAN, within the scope of its attributions;  
Supervise, coordinate, correct the delegated bodies, control and supervise the 
implementation of the National Transit Policy and the National Traffic Program;  
 Prepare and submit to the approval of the CONTRAN the norms and 
requirements of vehicle safety for manufacturing and assembly of vehicles, 
depending on their destination;  
Organize, elaborate, complement and amend the manuals and standards of 
projects for the implementation o f signs, devices and traffic equipment approved 
by CONTRAN;  
To study the missing cases in the transit legislation and submit them, with 
proposal of solution, to the Ministry or maximum coordinating body of the 
National Transit System. (http://www.denatran. gov.br)  
Brazilian Army  
(Exército 
Brasileiro/Comando do 
Exército – EB) Contribute to the guarantee of national sovereignty, constitutional powers, law 
and order, safeguarding national interests and cooperating with national 
development and social welfare. (http://www.eb.mil.br)  
Brazilian Air Force  
(Força Aérea 
Brasileira/Comando da 
Aeronáutica – FAB) Destined for the defense of the country, the guarantee of constitutional powers 
and, at the initiative of any of these, of law and order. It is up to the Force to 
cooperate with national development and civil defense.  
Brazilian Institute of the 
Environment and 
Renewable Natural 
Resources  
(Instituto Brasileiro do 
Meio Ambiente e dos 
Recursos Naturais 
Renováveis – IBAMA)  Exercise the power of environmental p olice;  
Implement actions of the national environmental policies, related to the federal 
attributions, related to environmental licensing, environmental quality control, 
authorization of the use of natural resources and to environmental monitoring, 
monitori ng and control, observing the guidelines issued by the Ministry of the 
Environment ; and  
Carry out the complementary actions of competence of the Union, in accordance 
with the current environmental legislation. (http://www.ibama.gov.br/)  
National Institu te of 
Metrology, Quality and 
Technology  
(Instituto Nacional de 
Metrologia, Qualidade e 
Tecnologia – INMETRO)  To provide technical support to Conmetro - the National Metrology, 
Standardization and Industrial Quality;  
Council, responsible for establishing th e national policies on metrology and 
quality;  
to implement the national policies on metrology and quality set by Conmetro;  
to maintain the national measurement standards in the country; to establish and 
maintain their metrological traceability to the units  of the International System of 
Units (SI), by participating in international or regional comparisons establishing 
their equivalence to internationally accepted standards and or to standards of 
other countries; to extend the traceability chain to the stand ards of measurement 
in the country, turning them internally harmonic and compatible with the 
international level, envisaging its worldwide acceptance, all of them  
necessary to assure the quality of goods and services;  
Development of conformity assessment p rograms , in the areas of products, 
processes, services and personnel, mandatory or voluntary, which involve the 
approval of regulations.  
To plan and carry out the activities of accreditation of calibration and testing labs, 
of proficiency test suppliers, of certification bodies, of inspection, drilling and 
others, all of which are necessary for the development of the infrastructure of 
technological services in the country;  
to manage the Focal Point for Technical Barriers to Trade, responsible for the 
Brazilian WTO/TBT Enquiry  
Point, for providing Brazilian exporters with information on technical 
requirements, as well as supporting the Brazilian government in all international 
negotiations on technical barriers to trade;  
to harbor the use of the management t echnique of quality by the Brazilian 
enterprises ;  
to foster the presence of Brazil in the international activities related to metrology 
and quality, plus promoting the interchange with and international bodies. 
(http://www.inmetro.gov.br)  
Ministry of Agriculture, 
Livestock, and Supply  
(Ministério da Agricultura, 
Pecuária e Abastecimento 
– MAPA)  To formulate and implement policies for the development of agribusiness by 
integrating market, technological, organizational and environmental aspects, to 
serve  the consumers of the country and abroad, promoting food security, 
generating income and employment, reducing inequalities and social inclusion. 
(http://www.agricultura.gov.br/)  WT/TPR/M/358/Add.1  
 
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  Agency  Areas of Expertise  
Brazilian Navy  
(Marinha do 
Brasil/Comando da 
Marinha – MAR)  Prepare and emplo y the Naval Power in order to contribute to the Defense of the 
Motherland; For the guarantee of constitutional powers and, at the initiative of 
any of them, of law and order; For the fulfillment of the subsidiary duties 
provided for in Law; And support for  foreign policy. (www.marinha.mil.br)  
Ministry of Cities  
(Ministério das Cidades – 
Mcidades)   Urban development policy; Sectoral policies for housing, environmental 
sanitation, urban transport and transit; Promoting, in articulation with the various 
spher es of government, with the private sector and non -governmental 
organizations, actions and programs for urbanization, housing, basic sanitation 
and environment, urban transport, transit and urban development; Subsidy policy 
for popular housing, sanitation a nd urban transport; Planning, regulation, 
regulation and management of the application of resources in urban development 
policies, urbanization, housing, basic and environmental sanitation, urban 
transport and traffic; Participation in the formulation of g eneral guidelines for the 
conservation of urban water systems, as well as for the adoption of river basins 
as basic units of planning and management of sanitation. 
(http://www.cidades.gov.br)  
Ministry of Science, 
Technology and 
Innovation  
(Ministério da C iência, 
Tecnologia, Inovações e 
Comunicações - MCTIC37) National policy on scientific, technological and innovation research; Planning, 
coordination, supervision and control of science and technology activities; 
Software development and automation policy; N ational biosafety policy; Space 
policy; Nuclear policy and control of the export of sensitive goods and services. 
(http://www.mcti.gov.br)  
Ministry of Defence  
(Ministério da Defesa – 
MD) To exercise the superior direction of the Armed Forces, constituted by the Navy, 
the Army and the Aeronautics  
Participate in the definition of the National Defense policy and develop and 
implement the policy related to its military component;  
Ensure and supervise the administration of the Armed Forces;  
Ensure the preparati on of the means available to the Armed Forces and monitor 
and inspect their use;  
Define, implement and coordinate human, material and financial resources 
policies. (http://www.defesa.gov.br/)  
Ministry of Industry, 
Foreign Trade and 
Services  
(Ministério da  Indústria, 
Comércio Exterior e 
Serviços – MDIC)  Regulation and execution of programs and activities related to foreign trade;  
Development policy for industry, trade and services; Intellectual property and 
technology transfer; Metrology, standardization an d industrial quality;  
Foreign trade policies. (http://www.mdic.gov.br)  
Ministry of Education  
(Ministério da Educação – 
MEC) To elaborate a national education policy in early childhood education, elementary 
education, secondary education, higher education,  youth and adult education, 
among other teachings (professional, special and distance education) Taking their 
proper decisions so that these are met. (http://portal.mec.gov.br)  
Ministry of Justice and 
Public Security  
(Ministério da Justiça e 
Segurança Púb lica – MJ) Defense of the legal order, political rights and constitutional guarantees; Judicial 
policy; Rights of the Indians; Drug policies, public safety, Federal Police, Federal 
Highway and Federal Railway and Federal District; Defense of national econo mic 
order and consumer rights; Planning, coordination and administration of the 
national penitentiary policy; Nationality, immigration and foreigners; The general 
ombudsman of the Indians, the consumer, the federal police referred to in item 
IV and other i ssues related to the pulp; Defense of the assets and of the own of 
the Union and of the entities integral of the indirect federal public administration; 
Coordinating, supervising, integrating and proposing the actions of the 
Government and the National Dru g Policy System in aspects related to activities 
to prevent and repress illicit trafficking and the unauthorized production of drugs 
and to treat, recover and reintegrate Of users and dependents; Coordination and 
implementation of the work of consolidation  of normative acts within the 
Executive Branch; Prevention and repression of money laundering and 
international legal cooperation; National archives policy; And assistance to the 
President of the Republic in matters not affecting another Ministry. 
(http:// www.justica.gov.br)  
(Ministério do Meio 
Ambiente - MMA)  Conama – Conselho Nacional do Meio Ambiente - Vinculado ao Ministério do Meio 
Ambiente  
Estabelecer normas, critérios e padrões para o licenciamento de atividades 
efetivas ou potencialmente poluidoras , para o controle da poluição causada por 
veículos automotores, aeronaves e embarcações, relativos ao controle e à 
manutenção da qualidade do meio ambiente.  
(Ministério de Minas e 
Energia – MME)    
                                                
37 The Ministries of Science, Technology and Innovation (MCTI) and of Communications (MiniCom) were 
merged in 2016 into the Ministry of Science, Technology, Innovations and Communications (MCTIC).  WT/TPR/M/358/Add.1  
 
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  Agency  Areas of Expertise  
(Ministério da Saúde – 
MS)   
MTb(Ministério do 
Trabalho  – MTb) Política e diretrizes para a geração de emprego e renda e de apoio ao 
trabalhador;  
Política e diretrizes para a modernização das relações do trabalho;  
 Fiscalização do trabalho, inclusive do trabalho portuário, bem como aplicação das 
sanções previs tas em normas legais ou coletivas;  
Política salarial;  
Formação e desenvolvimento profissional;  
Segurança e saúde no trabalho;  
Política de imigração; e  
Cooperativismo e associativismo urbanos  
(Ministério dos 
Transportes – 
TRANSPORTES)  Departamento Naciona l de Infraestrutura de Transportes – DNIT (autarquia) - 
Vinculado ao Ministério dos Transportes  
Estabelecer padrões, normas e especificações técnicas para os programas de 
segurança operacional, sinalização, manutenção ou conservação, restauração de 
vias te rminais e instalações, para elaboração de projetos e execução de obras 
viárias.  
Page 74, paragraph 3.135: Do MERCOSUR regional standards meet the definition of an 
international standard adopted by the Committee on Technical Barriers to Trade in its Decisi on on 
Principles for the Development of International Standards? In which cases are technical regulations 
based on performance criteria rather than international standards or MERCOSUR regional 
standards?  
Brazil´s definition of reference criteria for a par ticular technical regulation follows recommended 
good regulatory practices, through the adoption of, in order of preference, international, regional, 
national and foreign standards, followed by standards of other countries' associations. The 
regulatory aut hority has, however, the prerogative of defining additional or complementary criteria 
for technical characteristics of materials, final products and services, with regard to aspects related 
to security, prevention of deceptive trade practices, protection o f human, animal and vegetal life 
and health, and the environment. This usually occurs when, after analysis of the normative base, 
no related international or Mercosur standard is identified, or it is considered partially or totally 
inadequate or even it do es fulfill the purposes intended by the regulatory measure.  
Page 74, paragraph 3.136: Can Brazil please explain how it determines which products or services 
that are low to medium risk to human health and safety?  
The risk assessment of products and servic es is a key feature in regulatory impact analysis and is 
especially suited to address problems related to safety, human health and environmental 
protection, as indicated in the Good Regulatory Practices Guidelines (Brazilian Regulatory 
Committee/Conmetro, available at http://www.inmetro.gov.br/qualidade/ 
pdf/guia_portugues.pdf), in the document Risk Management in Regulatory Frameworks (UNECE, 
2012) and in internal procedures of regulatory impact analysis and regulatory measures 
development.  
When the risk as sessment is carried out, the decision making on the most appropriate regulatory 
measure may consider the risk level of specific scenarios involving products and services. 
Qualitative and quantitative techniques, as those described in ISO 31010, and tools s uch as the 
risk assessment for the Rapid Alert System (RAPEX/European Commission), can be used to 
determine the risk level of products. When using RAPEX tool, the risk assessment involves the 
characterization of the product hazards, typical injury, consume r types, severity and the steps that 
lead to accidents or injuries. Each step is individually rated for its probability, based on data and 
evidences, and when the risk scenario is completed, Rapex system calculates the general 
probability and the risk leve l of products in specific risk scenarios.  
Regarding ANVISA, the health regulatory agency of Brazil, the sanitary regulation published by the 
agency includes technical requirements that products and companies in the area of cosmetics, 
sanitizers, medicines,  medical devices, pharmaceutical ingredients, blood and blood products, 
laboratories, health services (hospitals and clinics) and pesticides (specifically regarding the impact 
on human health). The conformity assessment procedures administered by ANVISA in clude 
verification of Good Practices (i.e. Good Manufacturing Practices, Good Laboratory Practices, Good 
Distribution Practices, etc.) for the range of processes regulated by the Agency. That verification WT/TPR/M/358/Add.1  
 
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  might include inspections in manufacturing sites lo cated abroad – for the case of medicines (all 
medicines and biological products are considered high -risk products), medical devices risk class III 
and IV (the risk classification for medical devices is harmonized with MERCOSUR partners and was 
based on GHT F references), as well as selected active pharmaceutical ingredients (only those 
considered strategic for the National Health System and subjected to pre -market authorization in 
accordance with Ordinances IN 15/2009 e IN 03/2013).  
For which low to medium r isk products and services does Brazil accept the supplier's declaration of 
conformity as an admissible instrument?  
The decision about the adoption of first or third -party conformity assessment mechanisms, and of 
mandatory or voluntary schemes, considers th e risk level of products and services, but also, the 
size and maturity of firms and the compliance performance of targeted markets, as recommended 
in the Conformity Assessment Booklet (Inmetro, 2015, available at 
http://www.inmetro.gov.br/inovacao/publicac oes/acpq.pdf). Decisions are made case by case, 
preferably, after regulatory impact analysis, several internal discussions and meetings with 
stakeholders.  
Supplier declaration (SD) is considered a more simplified mechanism in comparison to mandatory 
certification scheme, and when associated with marking of products can serve as an instrument to 
communicate the existence of processes of quality control under supplier's responsibility 
(Conmetro Resolution n. 4/1998, available at 
http://www.inmetro.gov.b r/legislacao/resc/pdf/RESC000044.pdf). SD is also considered a less 
costly and soft mode of regulatory intervention, capable to provide greater agility in meeting social 
demands. Commonly, SD is adopted to regulate sectors, especially of service providers,  which 
require closer means of control and supervision by the regulatory authority, and when targeted 
market is composed mostly of small size firms (Conformity Assessment Booklet, Inmetro, 2015).  
Some examples of the adoption of SD mechanism for low to medium risk products and services 
are TVs, air conditioners, photovoltaic systems, high visibility garments, tire retreading services, 
truck tank degassing services, among others.  
Products subjected to supplier's declaration of conformity, as taken from li st 
available at http://www.inmetro.gov.br/qualidade/rtepac/compulsorios.asp  Regulatory body  
Registro de descontaminador de equipamentos para transporte de produtos perigosos  ANTT1 
Registro de empresa inspetora de contentores intermedário para granéis (IB C) 
destinados ao transporte terrestre de produtos perigosos  ANTT  
Motores elétricos trifásicos de indução rotor gaiola de esquilo  CGIEE2 - MME, 
MDIC e MCT  
Construção, montagem e funcionamento de sistemas automáticos não metrológicos de 
fiscalização de trânsito  Contran3 
Registro de fabricante de dispositivo de acoplamento mecânico (Engate)  Contran  
Registro do fabricante de dispositivo quebra -mato Contran  
Colete de segurança de alta visibilidade  Denatran4 
Aplicação, Reparo e Reforma de Revestimento Interno de Tanque de Carga Rodoviário 
destinado ao Transporte de Produtos Perigosos  Inmetro5 
Bombas e motobombas centrífugas  Inmetro  
Cantoneiras de aço laminadas a quente para montagem de torres de transmissão de 
energia elétrica  Inmetro  
Condicionadores de ar  Inmetro  
Inspeção técnica e manutenção de extintores de incêndio  Inmetro  
Isqueiros a Gás  Inmetro  
Lâmpadas de uso doméstico - Linha incandescente  Inmetro  
Lâmpadas fluorescentes compactas com reator integ rado à base  Inmetro  
Lâmpadas vapor de sódio a alta pressão  Inmetro  
Máquinas de lavar roupa de uso doméstico  Inmetro  
Reatores eletromagnéticos para lâmpadas à vapor de sódio e lâmpadas à vapor metálico 
(Halogenetos)  Inmetro  
Reforma de Pneus  Inmetro  
Refrigeradores e seus assemelhados, de uso doméstico  Inmetro  
Registro do instalador de sistemas de gás natural veicular (GNV) em veículos rodoviários 
automotores  Inmetro  
Requalificação de Cilindros Destinados ao Armazenamento de Gás Natural Veicular (GNV ) Inmetro  
Sistemas e equipamentos para energia fotovoltaica (Módulo, controlador de carga, 
Inversor e bateria)  Inmetro  WT/TPR/M/358/Add.1  
 
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  Products subjected to supplier's declaration of conformity, as taken from li st 
available at http://www.inmetro.gov.br/qualidade/rtepac/compulsorios.asp  Regulatory body  
Televisores  Inmetro  
Tubos de aço -carbono ou tubos de aço micro -ligados, com ou sem costura para 
montagem de torres de transmissão de energia elétrica  Inmetro  
Ventiladores de teto de uso residencial  Inmetro  
Conversores catalíticos destinados à reposição  MMA – IBAMA6 
1 ANTT – National Agency of Land Transport.  
2 CGIEE – Comitê Gestor de Indicadores de Eficiência Energética, brings together three Ministries: 
Mines and Energy (MME); Industry, Foreign Trade and Services (MDIC); and Science, Technology, 
Innovation and Communicati ons (MCTIC, formerly MCT).  
3 Contran – National Traffic Council.  
4 Denatran – National Traffic Department.  
5 Inmetro - National Institute of Metrology, Quality and Technology.  
6 MMA - IBAMA – Ministry of Environment – Brazilian Institute of Environment and Renewable Natural 
Resources.  
Page 74, paragraph 3.138: What is the process for inscription in INMETRO's Register of items? For 
which products and services is marketing conditional on inscription in the Register?  
The process of registry is the act by which Inmetro authorizes the marketing of a product or 
service and the use of the conformity identification mark, whose current procedures were 
established in Portaria Inmetro 512/2016. The registry must be requested by the product or 
service supplier, understoo d in a broad sense, as the natural or legal person, whether public or 
private, national or foreign, legally established in the country, who engages in the production, 
assembly, creation, construction, transformation, import, export, recovery, repair, distr ibution or 
sale of products or services.  
The first step of the process is to verify if registry is required for a specific product or service by 
consulting Inmetro's website. If confirmed, the supplier can apply for the registry directly on 
Inmetro's webs ite following specific procedures for products or services, as described in the 
available guidelines and FAQ. In general terms, the process is digital and online, involving the 
registration of the firm, submission of documents and payment of a fee. The req uest is analyzed 
by Inmetro's staff and, if any irregularity is found, the applicant is notified for adjustments. After 
corrections or when there are no irregularities, the registry is granted. The validity of a registry is 
related to the validity of the c ertificate of conformity, as defined in the product or service specific 
regulation. Periodically, the registry must be maintained and renewed, and the supplier is notified 
to provide updated information about registered products or services and to pay taxe s of 
maintenance and renewal of the registry.  
The marketing of products and services subject to mandatory conformity assessment mechanisms 
is authorized by the act of registry, granted to those products and services that pursue a 
certificate of conformity.  Inmetro provides updated information about products and services 
subjected to registry on its website. Currently, it comprises a diverse list of 68 items, such as 
school supplies, cradles, plastic chairs, automotive components, solar collectors, bicycle 
components, air conditioners, metallic stairs, fire extinguishers, refrigerators, led bulbs, among 
others. The complete list can be found at http://registro.inmetro.gov.br/objetos/.  
Pages 74 and 75, paragraphs 3.140 and 3.141: The report states that 10 labo ratories and four 
certification bodies located overseas are accredited by Brazil. Can Brazil provide a list of the 
overseas Brazilian -accredited laboratories and certification bodies?  
Overseas testing laboratories accredited by Cgcre/INMETRO, according to  ISO/IEC 17025  
Country  Laboratory  
Angola  Bromangol S.A.  
China  SGS - CSTC Shenzhen Branch Toys Laboratory  
China  SGS Hong Kong Ltd.  
China  Intertek Testing Services Shenzhen Ltd.  
China  Intertek Testing Services Hong Kong Ltd.  
China  UL VS Shanghai Limited Shenzhen Branch  
China  UL VS Hong Kong Limited  
Italy Istituto Italiano Sicurezza Dei Giocattoli SRL  
Spain  Idiada Automotive Technology S.A.  
 WT/TPR/M/358/Add.1  
 
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  Overseas certification bodies accredited by Cgcre/INMETRO  
Country  Certification body (ISO/IEC standard)  
France  LNE – Laboratoire National d'Essais (ISO/IEC 17065)  
Australia  Exemplar Global (ISO/IEC 17024)  
What is the process for Brazilian accreditation of overseas laboratories and certification bodies? Is 
it the same as that outlined in paragraph 3.140?  
Inmetro follows the international rules for accreditation according to standard ISO/IEC 17011 and 
practices established by the International Accreditation Forum (IAF) and the International 
Laboratory Accreditation Cooperation (ILAC). In terms of operation  the general procedure is the 
same as stated in paragraph 3.140.  
Page 75, paragraph 3.143: What percentage of the new standards adopted by Brazil between 
January 2013 and January 2017 were adoptions of international standards, as defined in the TBT 
Committ ee's Decision on Principles for the Development of International Standards?  
Between January 2013 and January 2017, Brazil has adopted 384 standards following ISO (32%) 
and 46 following IEC (3%).  
3.3.5 -State trading, state -owned enterprises, and privatizat ion 
Page 81, paragraph.  3.171: According to the Secretariat report, "The Federal Government still 
controls a relatively large number of companies with commercial activities in a wide range of 
industries, including hydrocarbons, electricity, port services, financial services, tra nsportation, 
telecommunications, and health services." Does Brazil have plans to divest its ownership and 
control of telecommunications companies?  
The telecommunication sector has already been targeted for privatizations in the 1990s and, 
currently, the B razilian government has no privatization plans for the sector.  
3.3.6 - Government procurement  
Page 82, paragraph 3.174: Brazil is neither an observer to, nor a member of, the WTO's 
Agreement on Government Procurement (GPA). Given that observership provides  opportunities to 
engage with GPA Members on government procurement issues more broadly without taking any 
obligations, has Brazil considered requesting to become an observer to the GPA?  
Brazil has engaged in bilateral or regional initiatives related to pu blic procurement commitments 
based on the WTO GPA principles.  
Page 82, paragraph 3.175: The Secretariat report notes that a set of rules and guidelines were 
adopted for procurement by public enterprises, and that PETROBRAS must adapt to the new 
framework b y 30 June 2018. What is the deadline for other public enterprises? Are the rules and 
guidelines based on the Tendering Law of 1993?  
The rules and guidelines of Law 13.303/16 incorporate evolutions and modernization of the 
Tendering Law of 1993. Public ente rprises created before entry into force of Law 13.303/16 will 
have up to have 24 months to adapt to the new framework.  
Page 83, paragraph 3.176: According to the Ministry of Planning, national contracts worth a total 
of R$55.8 billion were, for either the reason of exemption or non -applicability, waived from any 
obligation to tender during 2013 -2016 time period. The Ministry also notes in Table 3.21 that total 
national procurement during this period was $122.9 billion. Can Brazil confirm that, based on this  
information, more than 45 percent of contracts awarded by value in Brazil from 2013 -2016 did not 
have the obligation to go through the tender process?  
During 2013 -16 time period, the total national procurement was R$ 220.7 billion. About 42.6% of 
the tot al correspond to contracts where obligation to tender is waived (exempted) or non -
applicable.  WT/TPR/M/358/Add.1  
 
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  Page 83, paragraph 3.179: The Secretariat report notes that preferences are allowed in 
government procurement. Do procuring agencies have authority to set their o wn preferences, or 
must all preferences be approved by a presidential decree as described in paragraph 3.181?  
All preference margins in public procurement must be approved by a presidential decree, after 
studies, assessments and recommendations made by In terministerial Commission of Public 
Procurement ("CICP").  
Page 84, paragraph 3.182: The Secretariat report notes that only one preference decree is in force 
until 30 June 2017. Can Brazil confirm that after 30 June 2017, there will be no preferences for 
goods or services under the current law? Is Brazil consideri ng additional preferences to be 
implemented on or after 30 June 2017?  
With the exception of preferences to small and micro enterprises, all preferential margins put into 
force in Brazil were temporary, product specific and established after prior studies and 
assessments. As of today, there are no preferential margins in force and there are no other 
preferential margins decrees currently under study.  
3.3.7 - Intellectual property rights  
3.3.7.1 - Overview  
Page 85, paragraph 3.187: The Secretariat report state s "Brazil has not provided notification 
updates with respect to changes in legislation since 2001." When does Brazil intend to notify the 
legislation cited in the Secretariat report to the WTO?  
A new notification updating the previous one is under conside ration by the Brazilian government.  
Page 85, paragraph 3.188: The Secretariat report notes that Brazil ratified the Marrakesh VIP 
Treaty in December 2015. Indeed, Brazil is one of the original treaty members, helping to put that 
treaty into force on Septem ber 30, 2016. Brazil has not yet joined either the 1996 WIPO Copyright 
Treaty or the 1996 Performances and Phonograms Treaty; does it have plans to join these two 
treaties?  
For the moment, Brazil does not have plans to join these two treaties. The governm ent 
understands that the so -called "Internet treaties" are not sufficient to deal with the new 
technologies provided by the breakthroughs and the expansion of the digital environment. In this 
sense, the Latin American and Caribbean Group introduced a paper  at the Standing Committee on 
Copyright and Related Rights (SCCR) to discuss these new challenges properly.  
Page 86, table 3.22: The table of National IPR Legislation, 2017, indicates that Brazil has 
legislation pertaining to the protection of Geographical  Indications, namely the Industrial Property 
Law No. 9,279 of (14 May 1996), as well as Normative Instruction No. 25/2013. Would this 
legislation and Normative Instruction be applicable to geographical indications that may be 
requested or petitioned via a trade agreement? Is Brazil contemplating allowing geographical 
indications to be protected via an international agreement? If so, what steps will Brazil take to 
respect and ensure that the principles of due process and transparency are firmly addressed if 
geographical indications are allowed to be requested protection through an international 
agreement?  
The legal framework for protecting geographical indications is provided by Industrial Property Law 
and INPI's Normative Instruction N° 25/2013. In order to  receive protection in Brazil, applicants 
are required to follow a registration procedure in INPI. Currently, no geographical indication is 
protected by force of a trade agreement.  
According to article 605 of the Customs Code (Decree No. 6,759 of 5 Februar y 2009), Brazilian 
customs authorities can act on request or ex officio to suspend the release of goods to which false 
geographical indications is applied as a preparatory measure to seize them.  
Page 88, paragraph 3.194: This paragraph indicates that decis ions by INPI may be challenged by 
the applicant or by a third party through administrative or judicial procedures. Can Brazil indicate WT/TPR/M/358/Add.1  
 
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  the types of entities that can qualify as "third parties" in such an appeal proceeding? For example, 
can another agency w ithin the Government of Brazil make such challenges?  
Any kind of entity can be considered third party, it includes governmental agencies or even 
individuals.  
3.3.7.2 - Industrial property  
Page 89, paragraph 3.195: The Secretariat report states that, with re spect to trademarks, 
"[w]here the characteristics of a good are altered in such a way as to jeopardize or to make 
impossible its identification, it may be seized ex officio by customs authorities, in the case of either 
importation or exportation." Does Bra zil have any intention of expanding such ex officio authority 
to include suspension of the release of suspected infringing and/or pirated goods?  
According to articles 605 and 610 of the Customs Code (Decree No. 6,759 of 5 February 2009), 
Brazilian customs  authorities can act on request or ex officio to suspend the release of 
counterfeited and pirated goods as a preparatory measure to seize them.  
3.3.7.3 -Copyright  
Page 89, paragraph 3.200: What are the mission and current activities of the Permanent 
Commission for the Improvement of Collective Management (CPAGC)?  
The Permanent Commission aims to provide a multilateral forum of discussion to different 
stakeholders, including government officers, copyright owners and users. The Commission is 
responsible for analyzing outcomes reached by collective management organizations as well as 
discussing international standards in order to improve the collective management in Br azil. The 
Commission may give opinions and recommendations to the Ministry of Culture on measures 
regarding Collective Management Organizations (CMOs) and it can suggest the production of 
reports and studies. The members periodically meet in Brasília. The Commission participates 
actively during the most important debates concerning the collective management of copyright and 
related rights. The members are responsible for providing technical information to the Department 
of Intellectual Rights in decision -making processes and discussions of draft bills and other 
regulatory measures. Since its origins, the Commission has been leading several discussions on 
important topics in the field of copyright and related rights. These topics included the 
implementation o f the process of authorization of CMOs to collect and distribute royalties related to 
the digital environment and the complementary decree on the general process of authorization. 
Recently, their members have been discussions questions regarding limits and  standards of 
collective management and individual management of rights.  
Page 89, paragraph 3.200: The Secretariat report states that Brazilian law "foresees the 
elaboration of specific legislation regulating the liability for damages resulting from conten t 
managed by third parties." Has any specific legislation of the type mentioned been drafted or 
introduced in Brazil? If so, what methods does it propose to address Internet Service Provider 
liability for copyright infringement by third parties? Please pro vide an update on what kinds of 
specific legislation in this area is contemplated.  
Articles 18 to 21 of the Civil Rights Framework for the Internet deal with the liability of Internet 
Service Providers (ISPs) for third parties' infringing content. The gene ral rule is that the Internet 
Service Provider will not be deemed liable for user -generated content. Nevertheless, according to 
article 19, infringements regarding copyright and related rights must be subject to new legal 
provisions. Therefore, the governm ent of Brazil must discuss a new legislation concerning liability 
of ISPs resulting from copyright infringements committed by third parties. The rules of the current 
Copyright Act must be applied until there is a specific regulation. The Copyright Act does  not have 
any specific provisions on ISPs' liability. However, judicial authorities may order the suspension of 
the transmission or the communication the public of the infringing content. The new legislation 
would establish specific rules on ISPs' liabilit y. Nevertheless, Brazil has not discussed a particular 
proposal yet. In 2015, the government organized a series of meetings with different stakeholders 
to discuss issues regarding copyright protection in the digital environment, but they did not raised 
any specific proposal on ISPs' liability.  WT/TPR/M/358/Add.1  
 
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  3.3.7.4 - Enforcement  
Page 89, paragraph 3.201: It is stated that new penalties were introduced "...for infractions in the 
collective management of copyright and related rights, and in the benefit sharing of genetic 
resources and associated traditional knowledge." Can Brazil provide more detailed information 
regarding these new penalties? Are these monetary penalties and, if so, in what amount? Do the 
penalties include jail time and, if so, what is the range? Does Brazi l have any statistics showing 
whether the courts are imposing these new penalties?  
Regarding the collective management of copyright and related rights, Brazil's new legislation (Law 
n. 12.853, from 2013) introduced some obligations to Collective Managemen t Organizations 
(CMOs). Most of them are related to standards concerning accountability and transparency. CMOs 
are now subject to a process of authorization to allow them to collect and distribute copyright 
royalties. In this regard, they must send documen ts to the Ministry of Culture, which is responsible 
for granting the authorization. The penalty for non -compliance with the rules established by the 
law, in this case, is the refusal of the authorization. In general, CMOs must provide accountability 
and tr ansparency for right holders and users under the terms of the law and its succeeding 
regulations. In this sense, members of CMOs may submit a complaint to the Ministry of Culture in 
the case of non -compliance of CMOs with these rules. In addition, their le aders have a kind of 
secondary liability for misuse or default of the obligations undertaken by CMOs relative to their 
members. The penalties related to collective management of copyright and related rights do not 
include jail time. There are two types of sanctions: the written warning and the suspension of the 
authorization to collect and distribute royalties. There is no available statistics on whether the 
courts are imposing these new penalties so far. The Ministry of Culture takes part in the process.  
Page 90, paragraph 3.202: The Secretariat report states that "The use of border measures must 
generally be requested by the rights holder, who must provide adequate evidence to satisfy the 
customs authorities." What is the nature of the "adequate evidence" that a rights holder must 
provide to customs authorities in order to initiate border control measures? Additionally, please 
provide information and statistics on enforcement measures against counterfeit and pirated goods 
taken both upon initiation by a rig hts holder and upon initiation of the customs authorities.  
Fundamentally, the right holder must supply at least information necessary to distinguish 
infringing products from originals and the name and address of a contact person. Regarding 
statistics, ther e is only an estimated value of the infringing products seized, as follows, regardless 
of the initiative:  
(R$ million)  
Year 2010  2011  2012  2013  2014  2015  2016  
Estimated Value  R$251  R$361  R$278  R$221  R$248  R$230  R$217  
Page 90, paragraph 3.202: The Secretariat report states that "The Customs Service may request 
that the rights holder provide a guarantee in an amount sufficient to safeguard the alleged 
infringer and avoid abuses." Under what circumstances does the Customs  Service request such a 
guarantee? Are there published standards that the Customs Service must follow when making such 
a request? If such a request is refused by the rights holder, can the initiated action still continue?  
The authority to require such a g uarantee derives from the provisions of the article 53.1 of the 
TRIPS Agreement. As a rule, customs authorities don't require any guarantee to accept an 
application for the suspension of the release into free circulation of the goods.  
Page 90, paragraph 3.202: It is stated that information and statistics on enforcement actions 
taken by Brazilian Customs during the review period were not made available. Does Brazil collect 
information and statistics on the number of enforcement actions t aken by its customs service to 
stop the importation of infringing goods? If so, will Brazil make such information available?  
The only number available refers to the number of enforcement actions taken by customs service 
to stop not only IPR violations, bu t also other crimes, such as smuggling and drug trafficking. The 
numbers of enforcement actions during the review period are the following:  WT/TPR/M/358/Add.1  
 
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  Year 2013  2014  2015  2016  
Number of enforcement actions  2.999  3.110  3.148  2.349  
Information and statistics on enforcement actions are also available on customs website at 
http://idg.receita.fazenda.gov.br/dados/resultados/aduana ("Balanços Aduaneiros") . 
4. Trade Policies by Sector  
4.1.4.1.1 - Minimum price guarantees  
Page 103, paragraphs 4.34 - 4.37:  The Secretariat report states that Brazil maintains a policy of 
guaranteed minimum prices (PGPM) which is "an important pillar of its agricultural policy." The 
report goes on to state the basic element of the PGPM is the use of regionally set minimum 
guara nteed prices for a number of commodities through a number of mechanisms including AGF, 
PEP, VEP, COV, PROP, and PEPRO.  The Report also notes that the budget resources for the PGPM 
rose to between R$4.4 billion and R$5.1 billion in 2013 -2015, compared to on ly R$1.6 billion on 
average annually during 2008 -11. Please confirm whether a single regional or national price is 
announced for all of the aforementioned mechanisms that relate to the PGPM or if Brazil sets a 
different price for each mechanism. How does B razil account for these regional price variations in 
Brazil's notification?  For example, there only appears to be one applied administered price each for 
edible beans and maize in 2014/15. Please confirm whether the minimum guaranteed prices for 
the PGPM a re set with the objective of maintaining market prices across the announced regions or 
nationally at the announced price by means of using, to varying degrees in each year, the 
aforementioned mechanisms.  
The government establishes more than one minimum pr ice for most products. VEP program is not 
based on minimum price. AGF, PEP and PEPRO programs are based on the minimum price set at 
the beginning of the crop year. For the COV and PROP programs the government establishes the 
price of support based on the m inimum price plus the financial and storage costs estimates at the 
time the programs are activated. The notification of AGF and COV are based on the weighted 
average price of the production supported.  
Page 103, Table 4.6: This table in the Secretariat repo rt describes various price support programs, 
including Prêmio para Escoamento do Produto  (PEP) and Prêmio de Equalização pago ao Produtor  
(PEPRO). Given numerous press reports indicating that corn and wheat producers are again 
benefiting from PEP and PEPRO  support, Brazil explained in the Committee on Agriculture that the 
programs are again being used to carry out the PGPM and the market prices for corn.  
 If the objective of these measures is to maintain the PGPM, what is the basis for not notifying 
these me asures as market price support mechanisms? Further, please explain how the 
reactivation of PEP and PEPRO is coordinated with the stated objective of the measure to shift 
supply to avoid shortages or large stocks in certain regions within Brazil.  
PEPRO and PEP programs are classified as Non -Exempt Direct Payments, as the producer or the 
buyer of the product receives the payment equivalent to the difference of the minimum price and 
the market price. The Annex 3.10 of the AoA states that "non -exempt direct pay ments which are 
dependent on a price gap shall be calculated either using the gap between the fixed reference 
price and the applied administered price multiplied by the quantity of production eligible to receive 
the administered price, or using budgetary o utlays". Brazil considers budget outlays is more 
adequate than gap price to be notified. PEP and PEPRO programs are activated only when the 
market price is below of the minimum price and there is a surplus in a certain State or region. So, 
these conditions  are enough to comply with the stated objective of the measure.  
 Can Brazil confirm that for certain instances PEPRO or PEP payments are only made upon 
receipt of an export registration and/or export declaration? Please explain how the 
requirement to provid e a proof of export relates to the stated objective of shifting supplies 
internally within Brazil, as well as the price support objectives, particularly given the fact that 
it appears large percentages of product receiving PEP or PEPRO payments in certain provinces 
is being exported.  
PEPRO or PEP payments may be made upon receipt of internal commercialization or export 
registration/declaration, but both programs are not contingent on exportation. As the support is WT/TPR/M/358/Add.1  
 
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  based on the difference of the minimum pri ce and the domestic price (not the international market 
price), it is clear the programs are not export programs.  
 In addition, given that the measures are not activated until prices have fallen below the 
minimum price --which indicates that there is likely  lowered domestic demand for the product --
would this not incentivize exports?  
The agricultural production of most products is not equally distributed among the different regions 
of the country. So, even if the price is below the minimum price in a certain  region or State, it 
does not mean other parts of country are facing lowered demand for the product.  
4.4.2 - Commitments under the General Agreement on Trade in Services and RTAs   
Page 131, paragraph 4.113: Does Brazil intend to ratify the Fourth Protocol on basic 
telecommunications? Does Brazil intend to add a commitment to the Reference Paper on Basic 
Telecommunications to its GATS schedule?  
Brazil does not plan to ratify unilate rally the Fourth Protocol of the GATS. In its revised offer of the 
Doha Round Brazil did present broad commitments in basic telecommunications, including nearly 
total adherence to the principles of the Reference Paper. Brazil could consider further movemen ts 
in this regard on a broad trade negotiation, especially if it includes negotiations in agriculture.  
4.4.4 -Telecommunications  
Page 141, Paragraph 4.146: Brazil's General Telecommunications Law has no restrictions on 
foreign participation in telecommunica tions companies in Brazil, and, as noted in paragraph 4.143, 
the Brazilian market has significant foreign participation. Does Brazil intend to bind the current 
openness of Brazil's market in its GATS schedule?  
Brazil does not intend to bind unilaterally an y new commitment under the GATS, but it could 
consider to do so in the context of wider trade negotiations, especially if it includes market access 
in agriculture.  
Page 143, Paragraph 151: In addition to the National IoT plan, we understand that Brazil is also 
developing a digital strategy and a national agency for information security, both of which are on 
the docket for 2017. How will these plans, strategies, and institutions fit together and interact?  
Brazil considers the Internet of Things (IoT) as a m eans to achieve broader national goals. These 
goals include promoting growth and economic development by improving productivity, creating 
innovative business models and developing higher value -added products and services from the IoT 
to provide well -being and improving the quality of life of her population.  
In order to achieve these goals, the National Internet of Things Plan, to be launched later this 
year, is being developed and is part of a larger set of actions within the scope of the Brazilian 
Strategy  for Digital Transformation. This Strategy is still under discussion and will be submitted to 
public hearings. It is structured over thematic axes, one of which is the Digital Economy 
Transformation. This axis aims at turning the Brazilian economy into a m ore digitalized, dynamic, 
productive and competitive one, strongly based on data, connected devices and new business 
models.  
The possible National Agency for Information Security is under discussion at the Office of 
Institutional Security in the Presidency  of the Republic (GSI), which coordinates the 
Interministerial Working Group responsible for drafting the National Information Security Policy.  
Page 143, Paragraph 4.152: The Secretariat report indicates that, as of September 2016, "internet 
service provid ers (ISPs), which provide unlimited fixed broadband services to subscribers, were 
gearing up to place data caps on these fixed broadband services thereby limiting the amount of 
Internet data that can be used monthly; ANATEL was unlikely to challenge broadb and operators on 
the issue of implementing the changes but discussions were still ongoing as of March 2017." Can 
Brazil provide an update of these discussions? What is Brazil's policy position in this area?  WT/TPR/M/358/Add.1  
 
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  In April 2016, the Board of Directors of ANATEL decided that the broadband operators are 
forbidden to reduce the speed of the connection, to suspend the service or to charge additional 
data traffic, after the total consumption of the amount of data assigned in the contract. This 
prohibition applies to a ll providers with more than 50 thousand accesses in service and must be 
observed even when such restrictive measures had already been established by an adhesion 
contract or the service plan.  
The Board of Directors of ANATEL also decided to elaborate a Regu latory Impact Analysis (RIA) 
study based on different legal, economic, competitive, technological dimensions. The preparation 
of the study is taking into account around 8,000 contributions received from several stakeholders 
until April 30, 2017. Today, the  2016 decision of the Board of Directors of ANATEL is still in force. 
Its objective is to guarantee compliance with the set of rules related to prior and clear information 
and to the rights of the consumer. Moreover, the National Congress is currently disc ussing a Bill 
(Nº 7182/2017) which includes a change of provision affecting Law Nº. 12.965/2014 (Marco Civil 
da Internet) to prohibit the implementation of limited consumption franchises in fixed broadband 
internet plans. The proposal can be found at: 
http://www.camara.gov.br/propos icoesWeb/fichadetramitacao?idProposicao=2126316 . 
Page 143, Footnote 238: In August, 2016, Brazil stated in August 2016 that it was planning to 
revise Decree 8,135/2013. How does Brazil plan to revise the decree and when will the new decree 
be released?  
There is no decision on the review so far. Also a review of this piece of legislation shall be subject 
to consultations with and the opinion of the National Defense Council.  
4.4.6 -Distribution and e -commerce  
4.4.6.2 - E-commerce  
Page 157, paragraph 4.203: The Secretariat report describes Brazil's e -commerce regulatory 
framework (which includes information security) and lists policy areas for public initiatives. Does 
Brazil have a timetable for these public initiatives? What is Bra zil's position on the creation of a 
data protection authority? If such an authority is not created, where would the enforcement 
responsibilities lie within the government?  
Federal Law nº 12.965/2014, especially in articles 2, 3, 4, 24, 25, 26 e 27, sets f orth principles 
and guidelines for regulatory legislation and Government action at federal, state and municipal 
levels. There's no fixed timetable for these public initiatives. Now the Ministry of Science, 
Technology, Innovation and Communication is coordi nating the production of a policy document 
named "Brazilian Digital Strategy". Also the Brazilian Congress is currently analyzing a bill 
regarding data protection for Brazilian citizens. Congress has full authority to legislate on this 
matter, including cr eating a data protection authority. Today data protection infringement can be 
entertained by the Judiciary and violators are subject to prosecution in criminal and civil cases.  
Questions based on the Report by Brazil (WT/TPR/G/358)  
2.2.5 - Government procur ement  
Page 11, paragraph 2.44: The Government report notes that according to the general Law, public 
entities cannot establish differential treatment between Brazilian and foreign companies. Can Brazil 
explain how it enforces this provision of law consider ing the Secretariat Report which identifies a 
local presence requirement (page 83, paragraph 3.178), preferential treatment including quotas 
and preference margins (page 83, paragraph 3.179), and eligibility restrictions to contracts for 
implementation, ma intenance, and development of information and communications systems 
(page 84, paragraph 3.183)?  
There is no legal distinction in Brazil between national companies and foreign companies with a 
local presence. Like most WTO member countries, however, Brazil  usually uses offsets for defense 
and national interest purposes.  WT/TPR/M/358/Add.1  
 
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  Page 11, paragraph 2.45: The Government report notes that work has been undertaken to 
establish an online bidding system. Does this system cover procurements at all levels of 
government that  are guided by the Tendering Law of 1993? Will use of the system be mandatory?  
The online bidding system developed at the federal level can be used by state and municipal 
authorities, instead of their own electronic solutions. The system is the preferred means for 
procurement, and can only be bypassed when its use is technically unfeasible.  
2.2.7 - Export insurance   
Page 12, paragraph 2.50: The Government report states that the main official mechanism to 
promote Brazilian exports is the Export Guarantee Fun d (FGE), and between 2013 and 2016, 107 
operations of export credit insurance were approved under the FGE, totaling US$23.30 billion. 
Please explain why no operations under FGE have been reported under the 2016 Export 
Competition Questionnaire with regard to export financing support for agricultural products.  
In 2016, there were no approvals of new operations for the agricultural sector.  
3.3- Preferential Agreements  
Page 15, paragraph 3.13: Does Brazil plan to integrate MERCOSUR customs union into its TFA 
implementation? For example, is there any discussion of a regional enquiry point or regional 
websites that explain import and export regulations and formalities?  
MERCOSUR's Customs authorities operate as national entities. Discussions are under way in 
Mercosur concerning initiatives in trade facilitation.  
4- Trade Institutional and Regulatory Framework  
4.1-Cross -Cutting Issues  
4.1.1 - Implementation of good regulatory practices  
Page 19, paragraphs 4.1 and 4.2: The United States appreciates Brazil's detailed description of 
good regulatory practices and would appreciate further information about transparency and public 
consultation in Brazil. To what extent does Brazil publish draft proposals for public comment and 
take the comments into account before finalizi ng the measure? What information does Brazil 
provide the public, including foreign stakeholders, in publishing its initial proposal? To what extent 
does Brazil invite public comments on its regulatory impact assessment?  
Public consultation is a formal mec hanism for information disclosure and social insertion in policy 
matters of general interest, providing greater transparency and legitimacy to the regulatory 
process. Currently, public consultation is well established as a common practice among many 
regula tory agencies, as recommended in the Good Regulatory Practices Guidelines (Brazilian 
Regulatory Committee/Conmetro, available at 
http://www.inmetro.gov.br/qualidade/pdf/guia_portugues.pdf), in the Regulatory Directives of 
Inmetro (Portaria Inmetro 252/2015 , available at 
http://www.inmetro.gov.br/legislacao/rtac/pdf/RTAC002260.pdf) and in the internal procedure of 
development and improvement of regulatory measures (NIE -Dconf -002/2017).  
The drafts of proposed regulatory measures are drawn up previously with s upport from various 
interested parties, members of a technical committee formally and specifically established for that, 
and are then forwarded to public consultation, usually allowing 60 days for comments. During this 
time, Inmetro carries out actions of dissemination, in order to encourage social participation in the 
process of public consultation and development of the measure. Comments received are 
systematically recorded, analyzed and answered in specific open meetings, the socalled public 
consultation  consolidation meetings. These are well established procedures for the process of 
technical regulation and are specified in internal rules and procedures. Historically, Inmetro has 
maintained the practice of accepting comments of relevant technical content  and incorporating 
them into the text of the regulation.  
The initial proposal of a regulation usually brings an extensive number of introductory paragraphs 
that contain important information on the reasons why the measure should be adopted. The text is WT/TPR/M/358/Add.1  
 
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  entirely made available to the public, with open access, in electronic format. Considering that the 
technical standards, used as criteria in regulatory measures, are subject to intellectual property 
controls, with paid access, the regulatory authority draws o n relevant content of technical 
standards, and insert it in the text of the regulatory measure, making it available to the public, so 
that the necessary information is available for stakeholders willing to comply with the regulation.  
The regulatory impact analyses are not currently made available for public consultation. Such a 
procedure is, however, in the process of internal discussions, and a pilot initiative was carried out 
for the study for playground equipment (Inmetro Ordinance 338/2014). The impact analysis and 
the contributions received during the public consultation are available at 
http://www.inmetro.gov.br/legislacao/rtac/pdf/RTAC002137.pdf.  
For sanitary legislation under the responsibility of ANVISA, the regulatory proposals may follow a 
flow of  regulation entitled "Common Regime" (with public consultation) or of "Special Regime" 
(without public consultation, used for cases of low complexity regulation or emergencies). All 
regulatory proposals of the Common Regime have the public consultation app roved by ANVISA's 
Board of Directors. The opening announcement of the public consultation and the public 
consultation rules are published in Brazil's Official Gazette. Drafts are made available at ANVISA's 
website (http://portal.anvisa.gov.br/consultas -publicas#). In addition to the draft, ANVISA 
publishes the justification of the proposal and a link for the electronic participation form 
(FORMSUS). The same information is made available through the SPS or TBT notification platforms 
of WTO. The method of par ticipation in ANVISA's public consultations allows the interested party to 
know the results in real time. Exceptionally, the international contribution can be forwarded on 
paper for ANVISA International Affairs Office. After the publication of the normativ e act, other 
documents are made available in the same page of public consultation: the Social Participation 
Analysis Report (RAPS), the Contribution Review Report (RAC) and a spreadsheet with the 
consolidated results of contributions received by ANVISA. Al l material concerning public 
consultations is made available in Portuguese. All regulatory processes are subject to a complete 
analysis ("Common Regime") that includes five steps: initiative of regulatory action, instruction 
and elaboration of proposal (RI A and public consultation), complementary instruction (when the 
subject requires public hearings, technical visits, working groups, targeted consultations, or other 
optional actives), and final deliberation. Urgency and low impact /complexity situations ma y be 
subject to a simplified formal procedure ("Special Regime"). RIA and public consultation are steps 
of the Common Regime. The RIA phase incorporates the mandatory analysis of Impact Mapping, 
carried out by the technical area proposing the regulation, a nd may incorporate a second stage of 
study with a scope defined by ANVISAs Board of Directors (not mandatory). The Impact Mapping 
phase uses the AIR1 tool, based on the Multicriteria Decision Support (AMD) model. The same 
criterions about the impact percep tion of the proposed standards that are present in the Impact 
Mapping tool are also placed for public comment. Impact mapping reports are currently not 
available to the public. ANVISA is working with the possibility that this report is made available 
online before the end of 2017.  
4.1.3 -Trade facilitation  
Page 20, paragraph 4.8: Does Brazil have plans to implement new or enhanced procedures with 
respect to e -payments and publishing fees and penalties online? Would such reforms be 
undertaken in conjunction with setting up a Single Window?  
All the informatio n on fees and penalties is already available on the Single Window web page. In 
the context of the new Single Window Programme, one feature being developed is the possibility 
to offer a single point of payment of all fees and charges related to the importat ion of goods.  
Page 21, paragraph 4.17: How is the private sector input incorporated into Brazil's national 
committee on trade facilitation (NCTF)? How are private sector representatives chosen to provide 
input to the committee? Will private sector feedbac k be publicized or open to the general public?  
The importance of private sector participation in the activities of the National Trade Facilitation 
Committee (CONFAC) has been highlighted by the creation of a Cooperation Subcommittee in 
which public and pr ivate stakeholders can work together to improve trade facilitation. This 
subcommittee provides for the participation of representatives from importers and exporters; the WT/TPR/M/358/Add.1  
 
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  industrial and agricultural sectors; trade -related services providers (logistic operat ors, brokers, 
insurers, etc.); and medium and small businesses.  
The procedures of its operation are detailed in CAMEX Resolution Nº 122, of 23 November 2016, 
which aproved the internal rules of the procedures of CONFAC (Regimento Interno), available at 
www.camex.itamaraty.gov.br/index.php?option=com_content&view=article&id=1753. CONFAC 
relevant documents will be be publicized in the near future. Camex website 
(www.camex.itamaraty.gov.br) is being renovated.  
Other Matters Not Addressed by the Secretariat or  Government Reports  
Export Financing  
Information on the ACC ( Adiantamentos sobre Contratos de Câmbio ) and  ACE ( Adiantamentos 
sobre Cambiais Entregues ) export financing programs are not included in the Secretariat's Report; 
however, they were included as part of the Secretariat's report for Brazil's 2013 Trade Policy 
Review (WT/TPR/S/283, page 78, paragraph 3.148). Please confirm whether the ACC and ACE 
export financing programs are still operational and describe any changes in how they are 
implemented since the last TPR.  
Regarding the ACC (Adiantamentos sobre Contratos de Câmbio) and ACE (Adiantamentos sobre 
Cambiais Entregues) export financing program s, they are still operational and have not been the 
subject of structural change since the WT/TPR/S/283 report.  
Satellite Services   
Brazil requires foreign satellite operators to pay substantial "landing rights" fees to provide service 
in Brazilian territo ry. How does Brazil determine the level for these fees? Does Brazil set the level 
for these fees in pursuit of a specific regulatory or administrative objective?  
The requirement for the payment in order to obtain landing rights in Brazil was established i n the 
Brazilian General Telecommunications Law (Lei n° 9.472, 16.07.1997). Resolution n° 386 was 
issued in 2004 to establish a formula to calculate the fee (so -called "Public Price") to be paid for 
the landing rights. One of the main goals of the formula c ontained in Article 10 of Resolution n° 
386 was to reduce regulatory uncertainty with respect to the "Public Price", through a simple 
formula that could be used by the foreign satellite operator itself to estimate the "Public Price". It 
is important to not e that this Public Price is paid once during the authorization process.  
Another goal of Resolution n° 386 was to equate the fee paid by Brazilian and foreign satellite 
operators. That is the reason why the formula takes into account the "Minimum Reference Price" 
calculated for the last auction in which a Brazilian Satellite Exploitation Right was granted. The 
Minimum Reference Price is calculated using a Discounted Cash Flow (DCF) methodology. This 
methodology takes into account several factors, including g eneral economic factors that are out of 
ANATEL´s control. It should be noted that the results of the application of the DCF methodology 
are submitted by ANATEL to the Brazilian Federal Court of Accounts (Tribunal de Contas da União 
– TCU) to be approved.  
The general idea behind the formula contained in Article 10 of Resolution n° 386 was that a foreign 
satellite, with similar payload to that of a Brazilian satellite, would be required to pay a price 
similar to the Minimum Reference Price of the last auction  to grant Brazilian Satellite Exploitation 
Rights. Due to the nature of the auction process, the price paid for a Brazilian Satellite Exploitation 
Right can be several times higher than the Public Price calculated through the formula contained in 
Article 1 0 of Resolution n° 386, which is based on the Minimum Reference Price. Additionally, the 
foreign satellite operators have more flexibility in the payment of the Public Price, since the foreign 
operator can indicate just a portion of the payload to be autho rized and pay proportionally, 
reducing the risk of having idle capacity in the satellite.  This flexibility is not available to a Brazilian 
satellite operator.  
It is true, however, that the advent of new payloads architecture, as those used in Ka band High 
Throughput Satellites (HTS), brought imbalances to the application of the formula for the "Public 
Price", which was created considering traditional C and Ku ba nds satellites architectures. For this WT/TPR/M/358/Add.1  
 
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  reason, ANATEL is working on a revision of Resolution n° 386 to address this issue. This revision 
was included in ANATEL´s Regulatory Agenda for 2017 -2018.  
Intellectual Property Rights  
Does Brazil collect information and statistics on the number of criminal actions prosecuted, and 
concluded, as well as the types of penalties imposed, for criminal infringement of trademarks, 
copyrights and related rights? If so, will Brazil make such information available?  
Data on laws uits and criminal actions are usually available on courts' webpages. Regarding 
copyright and related rights, there is no systematic collection of information and statistics.  
INPI and ANVISA have amended their Prior Consent framework under Interagency Ordin ance 
#1/2017, which went into effect on June 12, 2017. Can the Government of Brazil explain how this 
new ordinance operates, and how implementation is consistent with TRIPS Article 27, specifically 
the requirement that patent protection be available to all  technologies?  
In order to comply with provisions of article 229 -C of Law No. 9,279 of 1996, included in article 1 
of Law 10196 of 2001, the granting of invention patents to the applications related to 
pharmaceutical products and processes will depend on a prior consent from ANVISA. According to 
the Joint Ordinance No.1/2017, ANVISA's attribution is to analyze whether a subject matter of a 
patent application represents risk to health, whereas INPI analyzes its patentability requirements. 
Cases when ANVISA provides any information based on patentability requirements other than 
aspects related to risk to health as a result of their analysis are considered by INPI as any other 
institution/individual providing data to assist the examination, which is possible a ccording to article 
31 of the Industrial Property Law (law 9.279/96). After publication of the application and up to the 
end of the examination, interested parties may submit documents and data to assist the 
examination. Even before the new, clearer delimi tation of responsibilities brought about by 
Interagency Ordinance Nº 1, the special procedure for the evaluation of medical and 
pharmaceutical patents was, in our view, TRIPS -compliant, since the agreement states, in its 
Article 8,1, that Members may, in f ormulating or amending their laws and regulations, adopt 
measures necessary to protect public health and nutrition, and to promote the public interest in 
sectors of vital importance to their socio -economic and technological development, provided that 
such measures are consistent with the provisions of this Agreement.  
INPI issued Rule #70/2017 this year (to take effect July 1, 2017). The rule streamlines the 
requirement to record technology transfer agreements before INPI. It is the understanding of the 
USG that technology transfer agreements are not recognized in Brazil unless certified by INPI. Rule 
70/2017 allows INPI to: (i) grant and issue the registration certificate; (ii) make a demand for 
additional information; (iii) deny the certification with groun ds; or, (iv) shelve it without analyzing 
its materiality. Can the Government of Brazil elaborate on how this rule (in reference to the 
preceding criteria) operates? Also, how will the Government of Brazil ensure, as required under 
TRIPS Article 39, protect ion of trade secrets that may be part of the required submission to the 
public agency?   
On April 11, 2017, IN 70/2017 was enacted, which established the administrative procedure for 
registration of licenses and assignments of industrial property rights and  registration of technology 
transfer and franchise agreements. According to this regulation, INPI register this kind of 
document and analyzes its formal aspects. The duties of regulating and controlling the terms of 
the agreements passed to the Central Ban k and the Federal Revenue.  
With respect to intellectual property enforcement, Bill 333/1999 would increase the penalties for 
counterfeit goods. We understand that the bill is one Lower House plenary vote away from passage 
(having already been approved by t he Senate). Where is this bill on the Government of Brazil's list 
of legislative priorities?  
This Bill was proposed by a Representative, not by the Government. The Government has no 
official position regarding this proposal.  
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  FOLLOW -UP QUESTIONS  
3.3.6 - Government procurement  
Page 83, paragraph 3.176: According to the Ministry of Planning, national contracts worth a total 
of R$55.8 billion were, for either the reason of exemption or non -applicability, waived from any 
obligation to tender during 2013 -2016 time period. The Ministry also notes in Table 3.21 that total 
national procurement during this period was $122.9 billion. Can Brazil confirm that, based on this 
information, more than 45 percent of contracts awarded by value in Brazil from 2013 -2016 did no t 
have the obligation to go through the tender process?  
During 2013 -16 time period, the total national procurement was R$ 220.7 billion. About 42.6% of 
the total correspond to contracts where obligation to tender is waived (exempted) or non -
applicable.  
Follow -up: We appreciate the clarification. In Law No. 8,666 of 21 June 1993, there appear to be 
34 reasons listed in Article 24 of the Law why tendering is not required. Are there other reasons 
aside from those listed in Article 24? What detailed informat ion does Brazil collect on the value of 
contracts awarded under each justification for waiving the obligation to tender?  
Yes. There are other reasons aside from those listed in  Article 24 of  Law No. 8,666 of 
21 June 1993 that permits the waiver on the obli gation of tendering. They are listed in Article 25 
of the same Law. Since the administration has the obligation to inform why it is opting for the 
waiver process, we can  collect the value of contracts award for each reason listed.   
3.1.6 - Anti-dumping, cou ntervailing, and safeguard measures  
Page 55, paragraph 3.53: Footnote 72 states that, "While DECOM may not initiate a review 
without a request from a Brazilian industry, it may decide to include additional exporting countries 
in duly initiated proceedings whenever there is sufficient information justifying such a decision. " 
Please explain the circumstances under which DECOM would invoke this provision and please 
indicate whether DECOM has ever done so.  
There is no possibility of inclusion, on the initiativ e of the investigating authority (Departamento de 
Defesa Comercial – DECOM), of other exporting countries under a review procedure. However, this 
circumstance may occur in original investigations where the petitioner, for some reason of a 
particular nature , does not include among the origins a country for which there is evidence of 
dumping and whose exports of the product under investigation have shown significant growth 
during the period of investigation. To date, DECOM has adopted this procedure in some c ases, i.e. 
offset plates, methylene diphenyl diisocyanate and coated paper.  
Follow -up: We appreciate the clarification. Were there circumstances present in the above -
referenced cases that caused DECOM to undertake this procedure, or does DECOM examine cert ain 
factors at the outset of all investigations to determine whether the inclusion of additional countries 
of origin is warranted? Please also explain what information DECOM relied upon to find evidence of 
dumping and export growth in these cases, and whet her that information was provided to 
interested parties or obtained through DECOM 's own research.  
The inclusion of other exporting countries in original investigations does not consist of a standard 
procedure of the Department. That may occur in very specific cases, only where there are 
elements in the petition that lead the investigating authority to believe in the existence of dumping 
in the exports of other origins to Brazil causing to injury to the domestic industry. In this sense, in 
the abovement ioned cases the commercial relations between the petitioners and the exporters in 
those third countries appeared to be the only reason for excluding them from the application 
lodged at DECOM.  
Intellectual Property  
Page 85, paragraph 3.188: The Secretariat report notes that Brazil ratified the Marrakesh VIP 
Treaty in December 2015. Indeed, Brazil is one of the original treaty members, helping to put that 
treaty into force on September 30, 2016. Brazil has not yet joined either the 1996 WIPO Copyright WT/TPR/M/358/Add.1  
 
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  Treaty or the 1996 Performances and Phonograms Treaty; does it have plans to join these two 
treaties?  
For the moment, Brazil does not have plans to join these two treaties. The government 
understands that the so -called "Internet treaties" are not sufficient to d eal with the new 
technologies provided by the breakthroughs and the expansion of the digital environment. In this 
sense, the Latin American and Caribbean Group introduced a paper at the Standing Committee on 
Copyright and Related Rights (SCCR) to discuss t hese new challenges properly.  
Follow up:  Brazil notes that it does not have plans to join the WIPO Internet treaties since they 
are "not sufficient to deal with the new technologies provided by the breakthroughs and the 
expansion of the digital environment ." It also makes note of the paper that the GRULAC group has 
tabled at the SCCR. Could the Government of Brazil please describe what in the WCT and WPPT it 
objects to and/or how the GRULAC paper will help the government to better address copyright law 
in the digital environment?  
Firstly, it should be clarified that even though we have not adhered to these treaties, they had 
impacts on internal legal provisions regarding the use of protected works in the digital 
environment. We understand that the solutions adopted in the treaties, such as the concept of the 
right to "make available" and the protection of "Technological Protection Measures " do not suffice 
to solve the challenges we are currently facing, for reasons detailed in the aforementioned paper. 
The in sufficient share of the payments that end up being distributed to composers and performers 
for the exploitation of their works in the digital context constitutes, in our view, one of such 
challenges. The WCT and WPPT Treaties were negotiated in the late 19 90s and since their adoption 
a number of technological innovations and new business models have been adopted, such as such 
as streaming services, which is becoming dominant. We are also concerned with the possibility of 
the protection of Technological Prot ection Measures being used to restrict the enjoyment of fair 
uses and exceptions. In this regard, we believe that further and broader discussion on these issues 
are needed, so as to find the best solution for the protection of intellectual works.  
Original Question from Canada, Page 33: Can Brazil please describe the new penalties that were 
introduced during the period under review?  
Original Question from Canada, Page 33: Can Brazil please describe the new penalties that were 
introduced during the period und er review?  
Regarding the collective management of copyright and related rights, Brazil's new legislation (Law 
No. 12.853, from 2013) introduced some obligations to Collective Management Organizations 
(CMOs). Most of them are related to standards concerning  accountability and transparency. CMOs 
are now subject to a process of authorization to collect and distribute copyright royalties. They 
must send documents to the Ministry of Culture, which is responsible for granting the 
authorization. The penalty for no n-compliance with the rules established by the law, in this case, is 
the refusal of the authorization. In general, CMOs must provide accountability and transparency 
for right holders and users under the terms of the law and the succeeding regulations. In t his 
sense, their members may make a complaint to the Ministry of Culture in the case of 
non-compliance of CMOs with these rules. In addition, their leaders have a type of secondary 
liability for misuse or default of the obligations undertaken by CMOs relat ive to their members.  
Follow -up: Has the Government of Brazil de -accredited any CMOs for the reasons described in the 
paragraph on new penalties?  
No, the Government of Brazil did not de -accredited any CMOs for the reasons described above.  
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