WT/TPR/M/283/Add.1  
16 October 2013  
(13-5674)  Page: 1/272  
Trade Policy Review Body 
24 and 26 June 2013  Original: English/Spanish  
anglais/espagnol  
ingles/español  
 
TRADE POLICY REVIEW 
BRAZIL 
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mr. Joakim Reiter (Sweden) 
 
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 
24 et 26 juin 2013 
EXAMEN DES POLITIQUES COMMERCIALES 
B
RÉSIL 
COMPTE RENDU DE LA RÉUNION 
Addendum 
Président: S.E. M. Joakim Reiter (Suède) 
 
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 
24 y 26 de junio de 2013 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
BRAZIL 
ACTA DE LA REUNIÓN 
Addendum 
Presidente: Excmo. Sr. Joakim Reiter (Suecia) 
 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por el Brazil.
1 
                                               
1 In English and Spanish only./En  anglais et espagnol seulement./En inglés y español solamente. WT/TPR/M/283/Add.1 
 
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ARGENTINA 
WT/TPR/S/283 
4.5  Servicios - Servicios profesionales 
Diversos estudios han identificado la esca sez de recursos humanos calificados como uno 
de los posibles futuros cuellos de botella al  desarrollo de Brasil, dada la celeridad del 
crecimiento de su economía y del desarrollo  de grandes oportunidades productivas en 
los próximos años. 
Brasil ha atacado este problema con distin tos programas educativos, entre los que se 
destaca el programa "Ciencia sin Fronteras".  
1. ¿Podría Brasil presentar brevemente en qué consiste este programa?  
"Science Without Borders" aims to provide education and training of human resources at the best 
universities and research institutions abroad. The program is geared for both undergraduate and postgraduate students, as well as for university faculty members and researchers. The program 
also aims at attracting young talents and highly qualified foreign researchers in areas and sectors 
considered priorities, especially those with high technological content. The program has an important participation of the private sector, through the supply of financial resources and the 
offer of internships. 
2. ¿Considera Brasil necesario facilitar el acceso temporal de profesionales paragraph 
hacer frente a una demanda posiblemente creciente? 
Brazil is streamlining procedures for the issuing of  work permits for foreigners. In this regard, the 
National Immigration Council (CGIg) enacted the Resolution nº 104/2013, which creates the 
Electronic Registry of Companies (ERC), a tool that  allows the electronic submission of documents. 
ERC is in its final stage of implementation.  
In addition to reviewing work permit procedures, the National Immigration Council conducts 
studies to assess the need for skilled workers in specific niches.   WT/TPR/M/283/Add.1 
 
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AUSTRALIA 
WT/TPR/S/283 
Australia commends Brazil on the relative  transparency of its trading regime, 
particularly with respect to industrial good s. Australia does, however, have concerns 
about Brazil's reliance on local content sche mes and the extent to which these schemes 
are consistent with its WTO obligations. Fo r example, in the Secretariat's report, we 
note that at: 
Page 53, paragraph 3.38 – import tariff concessions for capital goods and IT and 
telecommunications equipment are linked to th e level of domestic equipment content; 
Page 71, paragraph 3.116 – indirect tax cash  rebates and credits for exports are linked 
to minimum import content requirements; 
Page 10, paragraph 18 – access to export fina ncing is subject to minimum local content 
requirements; 
Page 127, paragraph 4.42 – fina ncial support to purchase equipment for the agriculture 
sector is linked to the amount of do mestic content the equipment contains; 
Page 12, paragraph 29 – tax breaks for auto production are dictated by minimum local 
content requirements; 
Page 135, paragraph 4.79 – a range of indu strial support programs are linked to 
minimum local content requirements; 
Page 12, paragraph 30 – extensive reliance on  local content requirements are inherent 
in programs aimed at supporting the energy sector; 
Page 160, paragraph 4.198 – access to the ri ght to provide telecommunications services 
is linked to the installation of telecommu nications systems and data networks that 
contain a minimum level of local content; and  
Page 166, paragraph 4.232 – financial benefits  to the shipping industry are subject to 
the use of local production and other local content requirements. 
1. We recognise that Brazil has been aske d about some of these schemes in the past 
through other WTO processes. Nonetheless, could Brazil provide a detailed description 
of all of the above programs? Further, could Brazil outline how each is consistent with 
Brazil's WTO obligations (focusing, in part icular, on those programs not previously 
addressed, including, but not limited to, those said to replace earlier programs linked to 
local content requirements)? 
The Brazilian Government's programs are aimed at boosting technological development, innovation 
and production of the Brazilian industry, in order to promote development of its economy. They do 
not discriminate between foreign and domestic inputs. The broad, horizontal objectives pursued by 
such programs include also 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. WT/TPR/M/283/Add.1 
 
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Summary 
Trade Policy By Measure Page 11, paragraph 24 2. We understand that, in April 2012, Braz il started a Pilot Programme of Priority 
Examination of "Green Patents", which fast-tra cks patent applications filed in Brazil (via 
the Paris Convention for the Protection of Indu strial Property by either residents or non-
residents). Can Brazil provide an update of how this Pilo t Programme is progressing? 
During the first year of the pilot program (04/2012-04/2013), INPI received 90 (ninety) requests 
for priority examination of "green patents". In th e second year of the pilot program, which started 
on April, 2013, 14 (fourteen) applications requested priority examination, in a total of 104 (one hundred and four) applications so far. 
The first patent granted under the program was issued on March, 12, 2013, nine months after the 
applicant's request for priority examination. 
3  Trade Policies And Practices By Measure 
3.2  Measures Directly Affecting Imports 
3.2.3  Tariffs 3.2.3.1 Applied MFN tariff 
Page 49, paragraph 3.34 
3. Australia notes that Brazil's simple av erage applied MFN tari ff has increased from 
11.5% in 2008 to 11.7% in 2012. Australia also understands that  Brazil recently 
increased its tariffs on 100 tariff lines and may possibly implement increases on a 
further 100 tariff lines. Can Brazil please advi se what products are being considered for 
inclusion in the additional 100 tariff lines? 
The Brazilian government held public consultati ons regarding the claims made by the private 
sector with a view to temporary tariff increase , under the terms of MERCOSUR Decision No. 25/12. 
Products that have been the object of mentioned claims are listed in Annex II of the CAMEX Resolution No. 12 of 08 February 2013.  
3.2.3.3  Preferences 
Page 52, paragraph 3.36 4. Australia understands that, in line with  MERCOSUR rules, Brazil maintains a range 
of temporary higher tariffs as an exemption to the CET. We also understand that the 
scope for such derogations was increased with the adoption of a new MERCOSUR 
mechanism. Can Brazil provide advice on the likely timeframe for restoring these tariffs 
to standard CET rate?  Does Brazil monitor the impact of these tariff increases on 
consumer prices? 
Both CMC Decisions No. 39/11 and 25/12 establish a mechanism for tariff adjustment for reasons 
of trade imbalances derived from the international scenario. The mechanisms will expire 
on December 31, 2014. The effects of tariff increases are analyzed under CAMEX, which monitors 
these impacts. WT/TPR/M/283/Add.1 
 
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3.2.9  Sanitary and phytosanitary measures 
Page 66, paragraph 90 5. Australia acknowledges Brazil's sound SPS processes and compliance with OIE, 
IPPC and Codex standards. To improve tran sparency, does Brazil plan to develop a 
statutory time frame for the pest risk analysis assessment process? 
There are no plans to develop a statutory time frame for the pest risk analysis (PRA) assessment 
process. 
PRAs are complex processes extremely dependant on information concerning pests, plants, the 
environment and the interaction among these elements. 
The complexity of each PRA varies according to the commodity in question and its intended use, as 
well as the quarantine pests that may be spread , and this makes the establishment of a single 
timeframe impossible.  
Agriculture has high economic importance in Brazil and requires solid, science-based measures for 
its protection. 
Page 66, paragraph 91 
6. Australia appreciates Brazil's development of a system for electronic submission of 
import authorization requests. With respect to  wine, when will analysis certificates with 
electronic signatures be able to be submitted? 
The importing operations are registered and controlled by the "Sistema de Comercio Exterior" 
(SISCOMEX). The controls established by MAPA are performed through non automatic licensing. 
These procedures are constantly being improved. 
3.4  Export Promotion And Marketing Assistance 
3.4.5  Intellectual property rights 3.4.5.2  Legal and institutional framework 
3.4.5.2.2  Industrial property 
3.4.5.2.2.1  Main bodies Page 109, paragraph 3.268 
7. Australia is supportive of the collabora tive examination arrangements for patents 
within PROSUR and sees this as a valuable initiative that complements the wider global 
efforts in this area. Australia has been active ly involved in the development of the WIPO 
CASE work-sharing platform with Canad a, the United Kingdom and WIPO. What is 
Brazil's future vision for PROSUR's work-sha ring arrangement? Specifically, how does 
Brazil believe PROSUR's work-sharing a rrangement can complement WIPO CASE? 
Members of PROSUR are developing a work-s haring platform specially adapted for the 
technological needs and languages of the participating Offices. The integration of this platform with 
WIPO CASE may be evaluated in the future.  WT/TPR/M/283/Add.1 
 
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4  Trade Policies By Sector 
4.2  Agriculture, Forestry, And Fisheries 4.2.2  Border measures Page 120, paragraph 4.14 
8. Australia notes that Brazil's average tari ff for agricultural products (using the WTO 
definition of agriculture) was 10.1%. Does Brazil have plans to further liberalise its 
agricultural sector? Does Braz il have a plan to reduce/elim inate its tariff on wheat to 
help reduce domestic prices? With respect to  wine, can Brazil please advise its policy 
reasons for imposing a tariff of 20% on bottled wine from countries outside the 
MERCOSUR region and Chile? 
Brazil considers that its current tariff regime is adequate and is not envisaging any further reform 
except as a result of the DDA negotiations. Regarding wheat, despite being a sensitive sector in 
the country, Brazil has recently opened from March to July 2013, a duty free TRQ for 2,000,000 MT of wheat. 
4.2.3 Domestic support measures 
4.2.3. General features Page 121, paragraph 4.17 
9. Australia notes that Brazil's in-kind food  aid to all destinations has increased. 
What are the reasons for this increase and,  in particular, is this food aid from 
government stockpiles? 
In 2006, the establishment of the Interministeri al Working Group on International Humanitarian 
Assistance (GTI-AHI), by Presidential Decree, reinforced the Brazilian commitment to deliver 
international humanitarian assistance. From that point of time onwards, the number and complexity of the actions of international humanitarian assistance has substantially increased as 
well as the Brazilian ability to react to humanitarian emergency situations. The products object of 
food aid have come either from government stockpiles or acquisitions for international humanitarian purposes. 
10. Australia recognises that the NF:1 notification does not currently apply to Brazil in 
accordance with Article 16.1 of  the Agreement on Agriculture.  However, in the name of 
transparency, would Brazil consider partic ipating in this notification process? 
Although participating in the notification process is a possibility, Brazil considers that the quantities 
currently provided are not sufficient to ca use negative effects on LDCs or NFIDCs. 
11. Can Brazil provide advice on the domestic  arrangements it has in place to ensure 
that in-kind food aid does not circumvent export subsidy commitments, is not tied 
directly or indirectly to its commercial ex ports and does not negatively impact on 
economic activity and agricultural development in recipient countries? 
Currently, the Brazilian Government only provides food aid through the World Food Programme 
(WFP) of the United Nations. Furthermore, Brazil  focuses on Emergency Operations and Protracted 
Relief and Recovery Operations, targeting victims of socio-natural disasters and vulnerable groups to guarantee their food and nutritional security. In this respect, Brazil follows the guidelines of the 
United Nations Office for the Coordinati on of Humanitarian Affairs (OCHA).  
Page 122, paragraph 4.21 
12. Australia notes that Brazil maintains se veral domestic support measures, including 
preferential credit lines and price support mechanisms (e.g. minimum price guarantees 
for a wide range of commodities such as corn, rice, cotton, and wheat). Brazil also WT/TPR/M/283/Add.1 
 
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maintains a policy of mandatory bank reserv e requirements to be used to finance 
agricultural activities with the rate of ma ndatory resources increasing from 25% to 34% 
of demand deposits over the past four ye ars. Support measures for family farmers 
similarly include preferential credit lines, rural extension, preferential rules in public 
procurement, rural insurance, and price guarantees.  
The OECD assesses that Brazil's total support  to agriculture and its Producer Support 
Equivalent (PSE) are below the OECD average. However, about two thirds of Brazil's PSE 
is provided in "the most production and trade distorting forms" (e.g. price support 
measures and subsidized credit). As a majo r producer and exporter of agricultural 
products, Brazil's production and trade suppor t mechanisms can have both a distortive 
and negative impact on global trade.  
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? 
At present, Brazil considers that its agricultural regime is open and provides limited level of 
protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, except as a result of the DDA negotiations. Nevertheless, Brazil has been moving its policies 
further towards the adoption of less distortive me asures, as the Brazilian figures regarding green 
box measures clearly show. 
It should be stressed, however, that Brazilian support to agriculture is much lower than the 
average of OECD countries, despite a much greate r necessity of help of its micro, small and 
medium producers, given their stage of development in comparison to most OECD countries. The 
issue of what kind of support is most or least trade distortive should be discussed openly by all WTO Member, not only in the OECD. In order to reach a fair conclusion, data from Brazil should be 
compared with similar data from OECD countries. 
4  Trade Policies By Sector 4.5 Services 
4.5.3 Air transport and airports 
4.5.3.2 Regulatory framework 4.5.3.2.2 Airports and auxiliary services Page 163, paragraphs 4.213-4.220 
13. Australia welcomes the steps the Brazilia n Government is taking to improve data 
collection on services trade through the record ing of transactions in SISCOSERV.  Could 
Brazil provide any information on preliminary trends in services trade emerging from 
this data collection?  Are there any plans for this information to be made available to the 
public in the future? 
The obligation to register transactions into SISCOSERV is being gradually implemented, 
following a schedule based on the NBS (the Brazilian Nomenclature of Services and 
Intangibles, akin to the CPC/UN), and shall encompass all types of service provisions by October 2013. By the end of the year, the system's data reports will provide an accurate snapshot of the country's commercial trends in services, in order to obtain reliable trade 
statistics, to fine-tune public policies for competitiveness. The aim of the System is also to 
provide helpful assessments of the market conditions for entrepreneurs, the private sector and for the general public. 
The Ministry of Development, Industry and Foreign Trade also publishes annually the 
"Overview of International Trade on Services". This publication is currently organized with data from the Brazilian Balance of Trade in Services, with support by the Central Bank of WT/TPR/M/283/Add.1 
 
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Brazil. From 2014 on, the publication will be enriched with trade data extracted from 
Siscoserv.  
WT/TPR/G/283 2  General Economic Environment 
2.2  General Legal And Regulatory Framework 
2.2.2  Financial system Page 8, paragraph 2.20 
14. Australia notes the steps Brazil has take n to increase the access of low-income 
populations to financial services. Could Braz il provide any further information on the 
public and private actors involved in these initiatives, including the role (if any) of 
foreign financial service providers? 
4  Trade Institutional And Regulatory Framework 
4.2 Sectoral Issues 4.2.3 Services 
In 2009, the Banco Central do Brasil (BCB) fo rmulated the Financial Inclusion project, the 
objective of which is to rethink, together  with those already involved, the model of ﬁnancial 
inclusion in the country, with the aim of providing the Brazilian population with access to ﬁnancial 
services that are adequate to its needs. In November of 2011 the National Partnership for Financial 
Inclusion (PNIF) was created. This partnership aims to promote effective ﬁnancial inclusion in 
Brazil, by addressing these new challenges in a manner consistent with the G20 Principles for Innovative Financial Inclusion. This partnership is a network of public and private actors engaged 
in coordinated efforts to promote appropriate ﬁnancial inclusion in Brazil , including (i) the Ministry 
of Finance (MF); (ii) the Federal Public Prosecutor's Office (MPF); (iii) the Consumer Protection Department (DPDC) of the Ministry of Justice (M J); (iv) the Consumer Protection Commission of 
the Chamber of Deputies; (v) the Ministry of So cial Development (MDS); (vi) the Ministry of 
Agricultural Development (MDA); (vii) the Minist ry of Labor and Employment (MTE); (viii) trade 
associations, such as the Organization of Brazilia n Cooperatives (OCB), the Brazilian Federation of 
Banks (Febraban), the Brazilian Association of Ba nks (ABBC), the Brazilian Association of Credit 
Societies for Micro-entrepreneurs and Small Ente rprises (ABSCM), the Brazilian Association of 
Microcredit Entities (ABCRED), the Brazilian Association of Development Financial Institutions (ABDE); (ix) the Brazilian Service of Support for Micro and Small Enterprises (Sebrae); and (x) the 
Permanent Forum for Micro and Small Enterprises.  Support was also provided by the academic 
community, by other national entities, including the President's Secretariat for Strategic Affairs 
(SAE-PR) and the Brazilian Institute of Geography and Statistics (IBGE), and by international 
organisations, including the Alliance for Financial Inclusion (AFI), the Consultative Group to Assist 
the Poor (CGAP) and the Bill & Melinda Gates Foundation. The efforts to increase and improve access to ﬁnancial services in the country, have resulted in the identi ﬁcation of new challenges 
that must be addressed in order to move forward with ﬁnancial inclusion and guarantee the quality 
of ﬁnancial services provision. These new challenges include: (i) adapting ﬁnancial offerings to the 
needs of businesses and individuals; (ii) improving the ﬁnancial literacy of Brazilians as a means of 
preventing over-indebtedness; (iii) encouraging household saving; (iv) strengthening consumer 
protection mechanisms for ﬁnancial service users; (v) promoting the sustainable development of 
microcredit for income generating activities; (vi) guaranteeing the stability and ongoing improvement of the country's correspondent ba nking model; and (vii) improving measurement 
and data on ﬁnancial inclusion to assess the situation in Brazil. 
The details of the initiatives related to financial inclusion can be seen in the following text: Initially it was the topic of microfinance that gained importance in the Central Bank of Brazil 
(BCB). Between 2002 and 2008 we conducted nine seminars, with the objective of spreading the 
importance of the theme and calling the attention of  public and private sectors to the subject. With WT/TPR/M/283/Add.1 
 
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that, we aimed in bringing together the main national stakeholders with a relevant role in the 
design of new strategies for the field of microfinance. 
In 2009 the Central Bank started to discuss microfinance on another level, focusing on the 
diagnosis of obstacles and challenges (strengths and weaknesses) of the microfinance sector in 
Brazil, and building joint solutions (through a netw ork of stakeholders). In this new context, we 
put efforts in the promotion of effective access and usage of financial services by the public, both individuals and small business. Since then, we have held four Forums on Financial Inclusion. Thus, 
the promotion of financial inclusion of the population has grown to become one of BCB's strategic 
objectives, contributing to the efficiency of th e financial system. During this period, several 
improvements were made in the regulation. Among the most recent, we highlight the creation of 
new types of credit cooperatives: the ones with free admission, micro-entrepreneurs of varied 
business lines, and businessmen linked to a trade union or employer. 
In 2010 the BCB launched the 1st Report on Financial Inclusion, covering aspects of Brazil's 
macroeconomics, the composition of the formal financial system, statistics regarding points of 
access to financial services, usage (credit and deposit/savings accounts), and finally the challenges 
for financial inclusion in Brazil. (The report is available online at http://www.bcb.gov.br/?ENGLISH). One of the interest ing findings of this first report was that 
banking correspondents were the most popular ch annel for the payment of bills and taxes, and 
also for bank transfers. 
In 2011 we proceeded with a review of the report, launching the 2nd Report on Financial Inclusion, 
trying to focus on the developments from the po pulation's perspective, for example, finding the 
number of people who actually uses credit in Brazil. The report presented also some data on 
quality, like the average interest rates paid by companies, as well as the evolution in the last decade in terms of geographic coverage of acce ss channels. Finally, the report launched a first 
version of the Financial Inclusion Index, comprised of access and usage indicators. 
In November 2011 the BCB launched the National Partnership for Financial Inclusion (PNIF), a 
network of public and private actors engaged in coordinated actions for the promotion of adequate 
financial inclusion of the Brazilian population. The PNIF is focused on three objectives: to expand 
and improve the population's access to financial services, to promote financial responsibility and access to information about financial services through financial education and increasing transparency, and to act so that the supply of financial services is more appropriate to the needs 
of the economy and the population. 
After the objectives of the partnership were defined, the actions needed to achieve them were 
identified, culminating in the Action Plan for Strengthening the Institutional Environment, which 
deals with three priority lines: diagnosis, regulation, and education and transparency. Based on 
the objectives of the PNIF and these three priority  lines, eight specific actions were established. 
The eight actions to be implemented between 2012 and 2014 are as follows: 
1. Improve the regulatory framework of microcredit and institutions specialized in 
microfinance, for adequate support to micro-entrepreneurs, as well as to micro and small enterprises (action in progress). 
Coordinating entities: BCB, Ministry of Finance (MF), and Ministry of Justice (MJ). 
Purpose: To contribute to the expansion of productive microcredit in Brazil and to 
strengthen the role of specialized microfinance institutions in the financial inclusion of entrepreneurs, micro and small enterprises. 
Current Stage: two resolutions already launched: – Resolution 4152/2012, which 
defines the specific methodology featuring a microcredit operation, distinguishing it from other lines of credit to low-income customers, and Resolution 4153/2012, which 
enhances the targeting rules for micro-entrepreneurs and low-income customers. 
2. Encourage the diversification and improv ement of financial services, making them 
more suitable to the needs of the population. WT/TPR/M/283/Add.1 
 
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 Coordinating entities: BCB, MF, National Superintendence of Pension Funds (Previc), 
and Superintendence of Private Insurance (Susep). 
 Purpose: To assist the Brazilian population , in particular the low-income portion, to 
achieve increased access to financial services, appropriate to their needs, including 
savings instruments, insurance and pensions. 
3. Define legal and regulatory framework for mobile payments (action in progress).  Coordinating entities: BCB and Ministry of Communications (MC). 
 Purpose: To enable the provision of payment services via mobile phones and other 
devices connected to the mobile network, in an environment of competition among providers, and to ensure consumer confid ence and efficiency in service delivery. 
 Current Stage: developed in conjunction with MC and the Brazilian Agency of 
Telecommunications (Anatel), a draft of a new law providing on payment 
arrangements and payment institutions, members of the Brazilian Payment System (SPB), with the aim of promoting the financial inclusion of the population currently 
without access to bank accounts. 
4. Strengthen the network of channels serving the population (action in progress).  Coordinating entities: BCB, MF. 
 Purpose: Troubleshoot barriers to a balanced dissemination of access channels to 
financial services, boosting the capacity of the financial system. 
 Current Stage: Already launched the Resolution 4072/2012, which simplifies and 
eases the installation of points of access, allowing the offering of services more suited 
to the needs of the local public. 
5. Contribute to the promotion of financial education.  Coordinating entities: BCB, Previc, Secu rities and Exchange Commission of Brazil 
(CVM), Susep, MJ, Ministry of Social Development (MDS), and the Brazilian Service of 
Support for Micro and Small Enterprises (Sebrae). 
 Purpose: In line with the National Strategy for Financial Education (ENEF), to improve 
people's decision-making in their relationship with financial institutions. 
6. Intensify the dissemination of financial consumer rights and conflict-solving 
alternatives (action in progress). 
 Coordinating entities: BCB, Previc, CVM, Susep, Federal Prosecutor (MPF), MJ. 
 Purpose: Facilitate financial consumers' kn owledge of their rights and the procedures 
for solving conflicts, increasing safety for the use of financial services. 
 Current Stage: publishing newsletters (Consumption and Finance) in partnership with 
the MJ's National Consumer Secretariat (Senacon). Creation, by the BCB, of a specific 
area of Institutional Relations and Citizenship (Direc). Negotiating the definition of an action plan to be performed in the years 2013/14, under the Cooperation Agreement 
with Senacon. Performing surveys regardin g the over-indebtedness of the population. 
7. Improve the methodology used in the study of financial inclusion and incorporate 
quality indicators (action in progress). 
 Coordinating entities: BCB, Previc, Susep. WT/TPR/M/283/Add.1 
 
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 Purpose: To strengthen the diagnostic methodology and monitoring of the Brazilian 
reality, in order to use better information in the action-structuring for the promotion of financial inclusion. 
 Current Stage: Ongoing reformulation of the Index of Financial Inclusion. Expected 
publication of the new index of Financial Inclusion in November 2013. Formulation, 
within the Alliance for Financial Inclusion, and under the coordination of BC, of a set of quality indicators of financial inclusion in a number of countries. 
8. Conduct researches on the behavior and perceptions of the population regarding the 
use of financial services (action in progress). 
 Coordinating entities: BCB, Previc, CVM, Susep, Brazilian Statistics Institute (IBGE), 
The President's Secretariat of Strategic Affairs (SAE), MDS. 
 Purpose: To increase the knowledge about the access and use of financial services, 
barriers to the process of inclusion, and quality of service based on users' information. 
 Current Stage: Talks held with the Institute for Applied Economic Research (IPEA), 
which is to perform a research on financial inclusion in 2013. Establishment of 
partnerships in order to conduct other surveys. Ongoing discussions regarding the progress of the Working Group with IBGE, aiming at the incorporation of issues 
relating to financial inclusion in regular national statistics. 
Page 25, paragraph 4.53 15. Australia notes the Brazilian Government's decision to open its air transport sector 
to private investors through concessions. Can Brazil provide any information regarding 
the impact these concessions will have on Br azil's air transport serv ices sector, as well 
as the role (if any) of foreign air transport service providers? 
Demand for air transport in Brazil has grown at  an average annual rate of 11.8% between 2003 
and 2012. The total number of passengers handled by  Brazilian airports increased from 71 million 
to over 190 million in the same period, while airpor t infrastructure capacity has not followed this 
pace. In February 2012, the Brazilian government transferred the control of Guarulhos, Viracopos 
and Brasilia international airports to private part ners. Infraero, a public company that manages the 
majority of the airports in Brazil, kept a 49% st ake of the granted airports. Those three airports, 
together, are currently accountable for 30% of all passenger traffic and 57% of all cargo transported in Brazil.  
The international airports of Rio de Janeiro (Galeã o) and Belo Horizonte (Confins) will have their 
control transferred to private investors in the near future as well. The airports will be granted to bidders who offer the highest concession fee. The total amount collected will be earmarked to the 
national civil aviation fund, whose main goal is to foster civil aviation, particularly through 
investments in the airports operated by Infraero and regional airports. The contracts of Guarulhos, Viracopos and Brasilia international airports have the fixed concession periods of 20, 30 and 
25 years, respectively. The requirements related to airport capacity expansion can be divided into 
two phases: investments scheduled in the concession agreement to be performed in the first 22 months of the granting period (new passenger terminals, access road and car parking, runway) 
and airport expansion and infrastructure adequacy to fully comply with level of service 
requirements until the end of the concession period.  
Foreign capital participation in air transport service companies is limited by federal legislation to 
20%. The alteration of this limit is currently being studied, but the corresponding bill is still in 
discussion in the Congress. WT/TPR/M/283/Add.1 
 
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CANADA 
WT/TPR/S/283 Summary, Trade Policy By Measure, page 11, paragraph 23 The Secretariat Report notes that "Brazil' s Tendering Law allows for preferences for 
goods and services produced in Brazil, or produced or supplied by Brazilian companies 
or by companies that invest  in technology development in Brazil, in the case of 
equivalent offers." However, paragraph 2. 32 of the Government Report notes that 
"According to the general Law, public enti ties cannot establish differential treatment 
between Brazilian and foreign companies."  1. Can Brazil explain how the general law, which does not give preference to local 
companies and the tendering law, which does allow for local preferences, coincide?   
 First, it is essential to clarify that there is no differential treatment between Brazilian and Foreign 
companies, since the Tendering Law allows margin s of preferences for goods and services locally 
produced and not goods and services produced by  Brazilian companies. Therefore, the isonomic 
treatment is still a characteristic of the Brazilian laws concerning government procurement. The 
introduction of preferential margins only changed the criteria for classifying the participants at the 
end of the process, giving preference for goods an d services produced in Brazil, or produced or 
supplied by Brazilian companies or by companies that invest in technology development in Brazil, and only in the case of equivalent offers.  
 
3  Trade Policies And Practice s By Measure, 3.2 Measures Directly Affecting Imports, 
3.2.3 Tariffs, 3.2.3.1 Applied MFN Tari ff, page 52, paragraphs 3.36 – 3.37 
 
2. According to the Secretariat Report, in line with MERCOSUR rules, Brazil maintains 
a range of temporary, unilateral exemptions to the Common External Tariff (CET); the 
scope for such derogations was increased with the adoption of a new MERCOSUR 
mechanism providing for te mporary tariff increases on  non-originating goods, 
in December 2011. Taking advantage of the me chanism, Brazil raised the rate applied on 
100 tariff lines for a 12 month period. 
 
As of March 2013, a MERCOSUR Decision to increase the number of tariff lines to 200 
was pending incorporation into the national legislation of member states. 
Brazil has also continued to derogate from the CET under the three MERCOSUR 
mechanisms already in place at the time of its previous review. The deadline for 
elimination of its basic list of national exem ptions, allowing individually applied tariffs 
on up to 100 lines to be higher or lower than the CET, has been extended until 
December 2015. 
Could Brazil provide more details as to whic h agriculture tariff lines (or more generally, 
which agriculture products) have seen their a pplied tariffs being modified in relation to 
the measures described above and to what extent? 
Under the List of Exceptions to the Common Extern al Tariff (CET), the rate s of import duty for 
the following products have been changed: 
 
- mushrooms of the genus Agaricus, corresponding to codes NCM 0711.51.00 and 
2003.10.00 of the MERCOSUR Common Nomenclature, from 10% to 35% 
on February 11, 2010; 
 - castor oil and its fractions, NCM code 1515.30.00, from 10% to 30% on 
April 29, 2010; 
 
- sardines, 13/10/1604 NCM code of 16% to 32%, on June 2, 2010;  
- dry coconut, NCM code 0801.11.10, from 10% to 55% on September 1, 2012; 
 WT/TPR/M/283/Add.1 
 
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- cotton codes 5201.00.20 and 5201.00.90 of the NCM, from 10% to 0% for a 
share of 80 000 tonnes, with effect from May 1 to July 31, 2013; 
 - wheat, NCM code 1001.99.00, from 10% to 0% for a quota of 2 million tons, 
effective between April 1 and July 31, 2013. 
 
In the list of tariff increases under Decision CMC No. 39/11, the only agricultural product 
subjected to tariff increase was potato, NCM co de 2004.10.00, from 14% to 25%, effective 
from October 1, 2012 to September 30, 2013.  3. Does Brazil intend to modify the applied tariffs on more agriculture lines when the 
expansion of the scope of the ex emptions to the CET to 200 lines enters into force? If so, 
on which agricultural products?  
Presently Brazil cannot provide the information requ ested, as the list of products will depend on 
the results of public consultations occurring soon.  
4. Could Brazil provide more information as  to the factors being taken into account 
when deciding which lines are to  be exempted from the CET? 
 Studies are made by the Technical Group on Tariff Modifications of the MERCOSUR Common 
External Tariff - GTAT-TEC (CAMEX Resolution 80, 2012). In order to define exceptions to the CET, 
the Group takes into account different aspects in their work, relating to impacts on trade, production chains, prices, among others. 
 
3  Trade Policies And Practice s By Measure, 3.2 Measures Directly Affecting Imports, 
3.2.3 Tariffs, 3.2.3.2 Bindin gs, page 53, paragraph 3.41 
 
The Secretariat Report notes that changes to  Brazil's tariff schedule  resulting from the 
introduction of HS version 2012 have led to  120 CET lines exceeding Brazil's bindings. 
Although "the authorities note that in all such cases importers may request application 
of the bound rate", this seems non-transpar ent and places Brazil's compliance with WTO 
rules on the burden of the importer.  
5. Could Brazil please explain what measures  i t  i s  u n d e r t a k i n g  t o  e n s u r e  t h a t  i t s  
tariffs are all applied within its WTO bindings?  
The Brazilian government is working on a definitive solution to this situation and will inform the 
WTO of the results of its efforts.  3  Trade Policies And Practice s By Measure, 3.2 Measures Directly Affecting Imports, 
3.2.8 Technical Regulations, Conformity  Assessment and Standards, page 63, 
paragraph 76  
Canada notes that while Brazil does not gr ant equivalence to technical regulations 
adopted by any trading partner, there are prov isions for the acceptance of test results. 
Canada also has an interest in learning mo re about how Brazil operationalizes its mutual 
recognition agreements, as well as to  know which sectors are covered. 
 6. What are Brazil's mandatory technical re gulations for telecom equipment and what 
is the name of the department/agency that issues them? 
 
The rules and technical regulations related to certification and approval of telecom equipment are available in Anatel's website (www. anatel.gov.br). Anatel's departme nt responsible for certification 
and approval is the Management of Certification and Numbering "Gerência de Certificação e 
Numeração - ORCN".  
ANATEL issues technical regulations for broadcasting as follows:  
http://www.anatel.gov.br/Portal/exibirPortalNivelDois.do?acao=&codItemCanal=1081&codigoVisao=$visao.codigo&nomeVisao=$visao.descricao&nomeCanal=Radiodifus%E3o&nomeItemCanal=Regulamentos%20t%E9cnicos&codCanal=285. 
 WT/TPR/M/283/Add.1 
 
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7. What labelling requirements appl y to telecommunications equipment? 
 Labeling requirements approved telecommunication s equipment are described in Annex III of the 
regulation approved by Resolution 242, also available at Anatel's website. 
 
8. Could Brazil explain the difference be tween the INMETRO mark and the ANATEL 
mark? 
 
Anatel's mark is required for all telecom equipment subject to mandatory certification and approval, according to the Brazilian regulations.  INMETRO's mark is required other types of 
products as establish in specific regulations, available at INMETRO's website 
(www.inmetro.gov.br). 
 In the field of telecommunications, the role of INMETRO is restricted to the provisions of 
Presidential Decree No. 7174 of May 12, 2010 which determines compliance with regulations 
INMETRO for Information Technology Goods acquired through public bidding, exclusively in relation to aspects of electromagnetic compatibility, safety and maximum power consumption. 
 
9 Are both marks necessary to sell/us e a product in the Brazilian market? 
 It depends on the type of product. For example, toys that use radio frequency like remote control 
may need both marks. 
 In some cases, in compliance with the decree mentioned in question 8, some equipment has its 
compliance evaluated according to the rules issued both by Anatel and INMETRO. 
 10. Would Brazil accept test results in th e area of telecommunications issued by 
foreign conformity assessment bodies on the basis of accreditation by a foreign 
accreditation body signatory to ILAC or IAF?  If not, under what conditions could such 
acceptance be facilitated?  
The acceptance of test results from foreign laboratories may only be accepted if there is a mutual 
recognition agreement signed between Brazil and the country where the laboratory is located.  
Only in special situations, test reports issued by foreign labs may be accepted if previously 
authorized by Anatel . 
 As for INMETRO, rules are defined by conformity  assessment bodies based on Portaria INMETRO / 
MDIC 361 of 06/09/2011 – "General Requirements for Product Certification – RGCP". Note that a 
national body that must take responsibility fo r acceptance tests carried out by foreign body. 
 The signatories of recognition agreements under the ILAC and IAF operate accreditation systems 
based on the same accreditation standards. The results of conformity assessment generated by 
accredited bodies are obtained by rules establishe d by regulators. The possibility of acceptance of 
these results is within the scope of regulators. 
 
11. Does Brazil require a mutual recognition agreement (MRA) to accept conformity assessment results from foreign conformity assessment bodies? 
 
 a. If yes, can Brazil negotiate MRAs fo r telecom equipment with economies that 
are not part of MERCOSUR?  
 
Not at this moment. 
  b. Would INMETRO coordinate the nego tiation of future telecoms MRA's?  
 
The negotiations for the establishment of MRA's  for telecommunication products are only conducted by Anatel. 
 
12. If not, could Brazil please identify th e relevant authorities, departments and/or 
contacts for pursuing such a negotiation?  
As indicated above. WT/TPR/M/283/Add.1 
 
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13. Has Brazil entered into MRAs to recognize test results and certification for 
telecommunications equipment? If so, with  whom? What are the products covered? 
 No. 
 
3  Trade Policies And Practice s By Measure, 3.2 Measures Directly Affecting Imports, 
3.2.9 Sanitary and phytosanitary me asures, page 65, paragraph 3.88 
 
The Secretariat Report notes that Brazil cooper ates with sub-regional neighbours on SPS 
matters with MERCOSUR with respect to te chnical matters, and in the Southern Cone 
Plant Health Committee and the Standing Veteri nary Committee of the Southern Cone.  
 
14. Could Brazil please indicate which, if any, MERCOSUR sanitary and phytosanitary import protocols it has adopted or is  currently working to implement?  
 
Information regarding MERCOSUR sanitary and phytosanitary import protocols is available on the website http://www.mercosur.int/ 
 
3  Trade Policies And Practice s By Measure, 3.2 Measures Directly Affecting Imports, 
3.2.9  Sanitary and phytosanitary measures, page 66, paragraph 3.90 
 
The Secretariat Report notes that Brazil conduc ts pest risk analyses in compliance with 
the IPPC standards, and that in general these risk assessments for plant pests are 
required when there is no record of prio r importation of the plant or plant product 
concerned from a given country.  
 15. Could Brazil please provide details on  the process and timelines for conducting 
pest risk assessments? 
 PRAs are complex processes extremely dependant on information concerning pests, plants, the 
environment and the interaction among these elements. 
 
The complexity of each PRA varies according to the commodity in question and its intended use, as well as the quarantine pests that may be spread , and this makes the establishment of a single 
timeframe impossible.  
 Agriculture has high economic importance in Brazil and requires solid, science-based measures for 
its protection. 
 16. Are there circumstances where a risk  assessment for plant pests would be 
undertaken when there is a hist ory of prior importation?  
 
According to Brazilian Law, despite past import tr ends, some plants and plant products with high 
phytosanitary risk are subject to pest risk analysis at any time, especially if a PRA has never been 
made on those products before. 
 3  Trade Policies And Practice s By Measure, 3.2 Measures Directly Affecting Imports, 
3.2.9 Sanitary and phytosanitary me asures, pages 66-67, paragraph 3.91 
 The Secretariat Report notes that importatio n of any product subject to SPS controls 
require a non-automatic import license.  
 
17. Are there any instances where an automati c import license is required for products 
subject to SPS controls? 
 
Importing operations are registered and controlled by the "Sistema de Comercio Exterior" (SISCOMEX). The controls established by MAPA are performed through non automatic licensing. 
The procedures are under improvement. 
 The Secretariat Report also notes that some pr oducts require pre-authorization for each 
shipment to Brazil, and others may require inscription in a non-electronic register.  
 WT/TPR/M/283/Add.1 
 
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18. Could Brazil please provide an explanat ion of the Excel spreadsheet provided in 
footnote 119? Specifically, what does "P rocess 1 – 8" refer to, and what do the 
acronyms stand for?  
The Secretariat Report notes that for controlled foodstuffs, cosmetics, and 
pharmaceutical products, importers require a license from state or municipal sanitary 
authorities. It further states that for a further subset of these controlled products, 
inscription in ANVISAs sanitary register is another prerequisite for importation, while 
the remaining products require a written notification by the importer.  The required information on the rules for the authorization of products may be found at Instrução 
Normativa No. 51, of 4 November 2011, which is available on the web page 
http://sistemasweb.agricultura.gov.br/sislegis/a ction/detalhaAto.do?method=abreLegislacaoFeder
al&chave=50674&tipoLegis=A. 
 
There is a list of food categories that require re gistration with ANVISA and are thus exempt from 
the notification procedure. Each specific food cate gory either require registration or notification, 
but never both procedures, according to Resolution RDC No. 27/2010.  
 Food categories which require registration include, basically, certain categories of foods for special dietary uses, novel foods and foods that carry health claims. These categories require pre-market 
assessment of their safety and efficacy .More information about products subject to sanitary 
control can be found in Resolution RDC No. 81/2008.  
19. On what basis is it determined whether an importer requires a license from state 
or municipal sanitary authorities? Do th ese licenses provide for transshipment of 
products to other jurisdictions? 
 
The legal basis to determine whether an importer requires a license from state or municipal sanitary authorities and the procedures to import products subject to sanitary controls in Brazil are Laws 6360/76 and 9782/99, and ANVISA Resolution RDC 81/2008. The criteria are based on the 
risk of the product. Resolution RDC 81/2008 defines what categories of product can do 
transshipment in Brazil.  
20. Could Brazil please explain what fact ors distinguish whether products require 
inscription in ANVISA's sanitary register or written notification by the importer? Is it 
ever the case that a product may require both an inscription in the registry and a written 
notification to ANVISA? 
 There is a list of food categories that require prev ious registration and thus are exempt from this 
notification procedure. Each specific food category  requires either registration or notification, but 
never both procedures. This information can be  found in Resolution RDC No. 27/2010. The food 
categories that require registration include certain categories of foods for special dietary uses, novel foods and foods that carry health claims. These categories require pre market assessment of 
their safety and efficacy. 
 3  Trade Policies And Practice s By Measure, 3.4 Measures Affecting Production and 
Trade, 3.4.3 State-owned Enterprises, Pr ivatization and State-trading, page 99, 
paragraph 3.229  The Secretariat Report states that Brazil repo rted ten state-trading enterprises (STE) in 
its 1996 full notification to WTO members under Article XVII of the GATT 1994 and the 
Understanding on the Interp retation of Article XVII. Brazil made an updating 
notification in December 1997, announcing th e removal of three companies from the list. 
As of August 2012, Brazil had issued no updates or new notifications under these 
provisions.  
21. When does Brazil intend to update or provide a new notification to the Working 
Party on STEs?  A new notification is under consideration by the Brazilian government. 
 WT/TPR/M/283/Add.1 
 
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3  Trade Policies And Practice s By Measure, 3.4 Measures Affecting Production and 
Trade, 3.4.4 Government Procurement,  3.4.4.1 General Features, page 102, 
paragraph 3.239  
The Secretariat Report notes that Brazil is neither a party nor an observer to the WTO 
Plurilateral Agreement on Government Proc urement (GPA) and that the authorities 
indicated that Brazil has no plans to join  the agreement. Open, transparent and non-
discriminatory procurement is generally consider ed to be the best tool to achieve 'value 
for money' as it optimises competition among suppliers. This results in greater selection 
and higher quality goods and services for the government and its citizens.   
22. Considering that the GPA is the largest plurilateral agreement that secures such 
open, transparent and non-discriminatory pr ocurement, could Brazil please explain why 
it has no plan to join the GPA? 
 
At the moment, Brazil has no plans to join the GPA. Brazil's position is grounded on Article III, Section 8, paragraph (a) of the GATT, which explicitly excludes government procurement from the 
obligations relating to national treatment. 
 3  Trade Policies And Practices By Measure, 3.4.5 Intellectual Property Rights, page 108, 
Table 3.25 
 
The Secretariat Report lists in Table 3.25 Br azilian laws that are governing intellectual 
property (IP) rights. 
 
23. Does the Industrial Property Law co ntain a mandatory disclosure requirement 
whereby patent applicants would be requir ed to divulge in their IP right filings 
information regarding the origin of the gene tic resources and/or traditional knowledge 
associated with genetic resources  that they have utilized? 
 No, the norms related to the mandatory disclosure requirement in Brazil are regulated by MP 
No. 2.186/2001 and not by the Industrial Property Law (Law No. 9.276/96). 
 24. If yes, do the patent applicants have  to provide evidence that prior informed 
consent (PIC) was obtained and  mutually agreed terms (MAT) where established? 
 Yes, applicants have to provide evidence of PIC and MAT when applicable. These evidences are 
furnished by the CGEN (Managing Council of the Genetic Patrimony).  
 25. What kind of remedies are in place if ther e is a lack of disclosure and/or a lack PIC 
and MAT and/or a false statement? 
 
Any case of lack of compliance with the requirements of the Brazilian law implies the discontinuation of the application. Nevertheless, the Industrial Property Law stipulates that an 
applicant has the possibility of restoration of the discontinued application in case of further 
compliance with the requirements.  
With regard to false statements, patents granted without compliance with the requirements under 
the Brazilian regulations may be challenged and eventually deemed null and void. In addition to that, providing false statement to a public authority is considered a crime under the Brazilian law and the applicant and any other agent associated with it may be accordingly prosecuted. 
 
3  Trade Policies And Practice s By Measure, 3.4 Measures Affecting Production and 
Trade, 3.4.5 Intellectua l Property Rights, page 111, paragraph 3.277 
 
It is noted there is a Pilot Programme of Priority Examination of "Green Patents". 
 
26. Can Brazil indicate how many applicatio ns they have received under this pilot 
program?  During the first year of the pilot program (04/2012-04/2013), INPI received 90 (ninety) requests 
for priority examination of "green patents". In th e second year of the pilot program, which started WT/TPR/M/283/Add.1 
 
- 18 - 
 
on April, 2013, 14 (fourteen) applications requested priority examination, totalling 104 (one 
hundred and four) such applications so far.  3  Trade Policies And Practice s By Measure, 3.4 Measures Affecting Production and 
Trade, 3.4.5 Intellectua l property rights, page 114, paragraph 3.293 
 The Secretariat Report indicates that Br azil has established in 1996 a regime for 
geographical indications (GI) of origin for se rvices and goods and that as of July 2012, 
30 GIs were protected in Brazil.  27. To date, which services and goods ha ve been granted appellations of origin? 
 
The following geographical indications are currently registered as appellations of origin in Brazil:  
– "Região dos Vinhos Verdes", wine; 
– "Cognac", spirit; – "San Daniele", ham; 
– "Franciacorta", wine; 
– "Litoral Norte Gaúcho", rice; – "Costa Negra", shrimp; – "Porto", wine; 
– "Região Pedra Carijó do Rio de Janeiro", decorative stones; 
– "Região Pedra Madeira do Rio de Janeiro", decorative stones; – "Região Pedra Cinza do Rio de Janeiro", decorative stones; 
– "Manguezais de Alagoas", propolis; 
– "Napa Valley", wine; – "Vale dos Vinhedos", wine; 
– "Champagne", wine. 
 28. What level of protection is prov ided for these services and goods? 
 
The level of protection granted to a geographical in dication in Brazil is independent of whether it 
was registered as "indicação de procedência" (indication of source) or as "denominação de origem" (appellations of origin). Please refer to paragrap hs 3.293 and 3.294 of the Secretariat's Report for 
further information. 
 3  Trade Policies And Practice s By Measure, 3.4 Measures Affecting Production and 
Trade, 3.4.5 Intellectua l property rights, page 115, paragraph 3.298 
 It is noted that Brazil protects undisclosed in formation, including such information used 
without authorization or by breach of contract. 
 
29. Could Brazil elaborate upon the availabl e remedies for breach of contract or 
without authorization cases?  
 
Article 195 of the Industrial Property Law provides that crimes of unfair competition are subject to 
the penalty of imprisonment, for 3 (three) months to 1 (one) year, or a fine. 
 
3  Trade Policies and Practices by Measure;  3.4 Measures Affecting Production and 
Trade, 3.4.5 Intellectua l property rights, page 116, paragraph 3.307 
 
It is noted that Brazil has in place a Nati onal Council that has implemented 23 strategic 
projects, of which six priority projects are named.    
30. Could Brazil indicate what the other 17 strategic projects are? 
 The other 17 strategic projects are: 
 
- Specialized Police Stations; - Piracy outside the School or Education against Piracy; - Mercosul Council for Combating Piracy; 
- National Award for Combating Piracy; WT/TPR/M/283/Add.1 
 
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- Databases; 
- X-ray of Piracy; - Administrative Management; - Panel of Collaborators; 
- International Partnership for Combating Piracy; 
- Law Improvements; - Innovative Solutions for Combating Piracy; 
- 0800 Piracy; 
- Advertising Concept; - Advertising Campaigns; - Studies Essay Contest; 
- Integration of the Subject into other Governmental Programs; 
- Economic Actions. 
 
4  Trade Policies by Sector: 4.2 Agriculture,  Forestry, and Fisheries, 4.2.3. Domestic 
support measures, 4.2.3.1 General fe atures, page 122, paragraph 4.21 
 
In the Secretariat Report, it is said that , according to OECD calculations, Brazil's 
Producer Support Equivalent (PSE) is signif icantly below the OECD countries' average. 
However, the OECD contends that about two th irds of Brazil's PSE is provided in "the 
most production and trade distorting forms" , especially through price support measures 
and subsidized credit. 
 31. In the Secretariat Report, it is said that, according to OECD calculations, Brazil's 
Producer Support Equivalent (PSE) is signif icantly below the OECD countries' average. 
However, the OECD contends that about two th irds of Brazil's PSE is provided in "the 
most production and trade distorting forms" , especially through price support measures 
and subsidized credit. 
 Given Brazil's relatively low PSE, is Brazil considering ch annelling its limited resources 
into domestic support measures that are le ss production and trade distorting in the 
medium to long term? 
 At present, Brazil considers that its agricultural regime is open and provides limited level of 
protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, 
except as a result of the DDA negotiations. Nevertheless, Brazil has been moving its policies towards the adoption of less distortive measures, as the Brazilian figures regarding green box 
measures clearly show. 
 4.  Trade Policies by Sector, 4.2 Agricultur e, Forestry, and Fisheries, 4.2.3 Domestic 
support measure, 4.2.3.2 Rural credit, 4.2.3.2.1 General features, page 122, 
paragraph 4.22 
 The Secretariat report notes that, in the pr evious review period, rural credit policy 
underwent a shift away from granting credit through public banks towards ensuring that 
financial resources were channelled to the agriculture sector through private financial 
institutions. However, during the current revi ew period, the importance of public banks 
as providers of rural credit grew significan tly. At the same time, Brazil increased the 
requirement that commercial bank s devote part of their demand deposits to agricultural 
lending.  
32. The Secretariat report notes that, in the previous review period, rural credit policy 
underwent a shift away from granting credit through public banks towards ensuring that 
financial resources were channelled to the agriculture sector through private financial 
institutions. However, during the current revi ew period, the importance of public banks 
as providers of rural credit grew significan tly. At the same time, Brazil increased the 
requirement that commercial bank s devote part of their demand deposits to agricultural 
lending. 
 Is Brazil planning to introduce other more effective measures to reduce the role of 
public banks as providers of rural credit? 
 WT/TPR/M/283/Add.1 
 
- 20 - 
 
At present, Brazil considers that its agricultural regime is open and provides limited level of 
protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, except as a result of the DDA negotiations.  
It is important to note, however, that there are no barriers to the entry of private banks in the 
rural credit market, but rather a prolonged lack of interest on financing this particular sector due to the average small value of operations and th e typically low banking spread. As Brazil deepens 
the process of de-indexation of its economy an d, consequently, reach banking spreads more 
similar to those practiced by its peers, the rural credit will naturally become more attractive to private banks and their market share will grow.  
4.  Trade Policies by Sector, 4.2 Agricultur e, Forestry, and Fisheries, 4.2.3 Domestic 
support measures,  4.2.3.3. Minimum pric e guarantees, page 122, paragraph 4.21 and 
page 127, paragraph 4.43 
 
According to the Secretariat Report, Brazil operates several programmes based on minimum price guarantees, which support the production of a wi de range of commodities. Their overall effect, 
however, appears to be modest as annual budg ets are limited and partly targeted at less 
developed regions and low-income farmers. Additi onally, as previously noted in paragraph 4.21, 
price support measures are among the most trade and production distorting forms of domestic 
support. 
 
33. Could Brazil explain into greater detail the reasons why it is maintaining minimum 
price guarantees, given their limited effect and their trade and production distorting 
effects? 
 Brazil considers this kind of support as an effective safety net for producers, which is implemented 
consistently with the current multilateral rules. 
 34. Furthermore, could Brazil say if it is planning on reallocating resources from 
minimum price guarantees into other forms of  domestic support that would have greater 
benefits on producers and produce less tr ade and production distorting effects? 
 At present, Brazil considers that its agricultural regime is open and provides limited level of 
protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, 
except as a result of the DDA negotiations.  
4  Trade Policies by Sector, 4.2 Agriculture, Forestry, and Fisheries, 4.2.3 Domestic 
support measure, 4.2.3.2 Rural credit, 4.2.3.2.1 General features, page 124, 
paragraph 4.31  
The Secretariat Report indicates that the Brazilian authorities ha ve noted that the 
Brazilian rural credit system aims at corre cting a market failure which results in 
insufficient credit allocation to medium-, small and micro-produce farmers. However, 
although it provides benefits to its recipi ents, the Brazilian rural credit system may be 
creating other distortions in the overall cred it allocation by limiting credit for other 
productive sectors, or making it more ex pensive. The OECD notes that reforms could 
reduce the misallocation of resources  and lower average interest rates. 
 35. Has Brazil considered the proportiona lity of this particular domestic support 
measure in relation to its policy objective an d the associated negative externalities, in 
light of the opportunity to reform its rural credit system in a way that would fulfill its 
policy intent while reducing the misalloca tion of resources and lowering average 
interest rates? 
 
At present, Brazil considers that its agricultural regime is open and provides limited level of protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, 
except as a result of the DDA negotiations. 
 It is worth stressing, however, that, unless the Brazilian government maintains the rural credit system and the mandatory resources rule, there will  be virtually no capital available for financing 
micro, small and medium producers, who are resp onsible for almost all the non commodity food WT/TPR/M/283/Add.1 
 
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production feeding the Brazilian population of ne arly two hundred millions. This market failure is 
not caused, but rather corrected by government regulation.   4  Trade Policies by Sector, 4.2 Agriculture, Forestry, and Fisheries, 4.2.3 Domestic 
support measure, 4.2.3.2 Rural credit, 4.2.3.2.1 General features, page 125, 
paragraph 4.35  
The Secretariat Report notes that rural credit continued to grow in both nominal and 
real terms, while the high value of rural debt  remains an important challenge in Brazil. A 
renegotiation took place in 2008 that involv ed reduced interest rates and extended 
repayment terms as well as discounts for anticipated payment. 
 
36. In light of the increasing availability of rural credit, could Brazil elaborate on 
whether it is considering other reforms or me asures to stem the growing value of rural 
debt in the long term? 
 Brazil has created new securities characterized by longer maturities in order to stem the growing 
value of debt in the long term. In agribusiness sector, this is the case of a new class of bonds that 
ranges from the CDA (Agricultural Deposit Certif icate), the WA (Agricultural Warrant), the CDCA 
(Agribusiness Credit Rights Certificate), the CPR (Rural Product Notes), the CRA (Agribusiness Receivable Certificate), the CRP (Rural Pledge Instrument), to the LCA (Agribusiness Letters of 
Credit). 
 4  Trade Policies by Sector, 4.2 Agriculture, Forestry, and Fisheries, 4.2.3 Domestic 
support measures, 4.2.3.3 Minimum pricin g guarantees, page 128, Table 4.5 Price 
support programme 2012  
In the table prepared by the Secretariat, und er the description of Policy of Guaranteed 
Minimum Prices, it is stated that when determining minimum prices, the National 
Monetary Council (CMN) takes into account prod uction costs in the different regions, as 
well as several factors affecting domest ic and international market prices. 
 
37. Could Brazil give more detail as to the factors used in determining minimum prices, 
aside from production costs? 
 
In determining minimum prices, the CMN considers factors such as international price forecasts, current public stocks, and other internal policies. 
 
38. In the same table, in light of th e numerous and differentiated minimum price 
support programmes described:  
Could Brazil say if it is considering simplifyi ng or streamlining its array of policy tools to 
achieve the policy objectives it ha s set for the agriculture sector? 
 
At present, Brazil considers that its agricultural regime is open and provides limited level of 
protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, except as a result of the DDA negotiations. 
 
4  Trade Policies by Sector, 4.2 Agriculture, Forestry, and Fisheries, 4.2.3 Domestic support measures, 4.2.3.4 Measures to promote family farming, page 130, paragraph 4.51 
 
It is noted that, via the Food Purchase Programme (PAA), Brazil purchases products 
from family farmers with a view to supplying public institutions and making donations to 
low-income citizens. 
 39. Could Brazil explain the criteria used in  determining which products to purchase 
and from which family farms they are to be purchased? 
 The products to be purchased vary according to th e modalities of the PAA, and the criteria for such 
purchases are defined by the Management Group of  PAA. Food purchases are made through public WT/TPR/M/283/Add.1 
 
- 22 - 
 
bids and only from farmers who are classified into the criteria defined in the Law No. 11.326/06 
and, at the same time, hold the PRONAF Eligibility Declaration (DAP).   40. Does the Brazilian government purcha se these products at market prices? 
 
Yes. 
 
4  Trade Policies by Sector, 4.5 Services, 4.5.4 Maritime transportation and ports, 
4.5.4.2 Regulatory framework, 4.5.4.2.1 Mari time transportation services, page 162, 
paragraph 4.51  
The Secretariat report notes that Ships under co nstruction in a shipyard located in Brazil 
may be registered in the Sp ecial Brazilian Registry (REB), and hence be eligible for 
incentives aimed at fostering the developmen t of the national shipbuilding industry. 
 
41. Can Brazil please elaborate on this sentence?   
The Special Brazilian Registry (REB) was crea ted by Law 9.432/1997, and accredits Brazilian 
shipping companies to government funding for construction, conversion, modernization and repair of pre-registered boats.  
WT/TPR/G/283 
 2  General Economic Environment, 2.2 General Legal and Regulatory Framework, 
2.5 Government Procurement, page 10, paragraph 2.524 
 The Government Report notes that MERCOS UR is still negotiating a Protocol on 
Government Procurement.  
 42. Does this agreement involve procurem ent at the sub-federal level in Brazil? 
 
As noted in the Government Report, the Protocol on Government Procurement is currently being 
revised.  
2  General Economic Environment, 2.2 General Legal and Regulatory Framework, 
2.2.5 Government Procurement, page 10, paragraph 2.532   
The Government Report notes that under the general Law, public entities cannot 
establish differential treatment between  Brazilian and foreign companies.  
 43. Does the general law apply to all levels  of government, or only to the Federal 
level?  
 The General Law (Law No. 8.666/93) applies to all levels of government in Brazil. 
 
2  General Economic Environment, 2.2 General Legal and Regulatory Framework, 2.2.5 Government Procurement, page 10, paragraph 2.536 
 
The Government Report notes that Brazil a pproved a special procurement regime in 
order to facilitate the organization of bids and contracts necessary for the organization 
of the Olympic and Paralympic Games in 201 6, the 2013 FIFA Confederations Cup and 
the 2014 FIFA World Cup and for infrastructure works included in the Government's 
Growth Acceleration Program (PAC).   
44. How does this special procurement regime work and where are tenders 
advertised?   
The Special Procurement Regime was establishe d by the Law No. 12.462/2011 to confer greater 
expediency to the bids for the organization of spor ting events and, due to its good performance, it 
was extended to all public works related to the Government´s Growth Acceleration Program (PAC) 
as well as the construction of facilities in social areas such as health and education. Its adoption is WT/TPR/M/283/Add.1 
 
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deemed to have improved and innovated the Federal Government tendering processes in many 
ways, improving, mainly, efficiency, agility and transparency.  First, it increased the use of electronic proceedings, allowing for greater transparency. Second, it 
inverted some phases of the tendering process, en abling it to be faster. While, according to the 
previous rule, the documentation of all companies needed to be analyzed in order a license to participate to be granted, even if their proposal was to be disregarded afterwards, the analysis of 
documents will now apply only to the better placed participants,. Besides, the Special Procurement 
Regime introduced the possibility of having on ly one appeal phase instead of allowing for a 
succession of appeals in each stage of the proc ess, as provided for in the previous law, a 
procedure that formerly turned the procurement into an extremely slow process. 
 
Moreover, the new Regime has introduced the "turn key" contracts for public works and 
infrastructure, enabling risks to be shared with the contractor; it allowed the establishment of 
efficiency contracts and the introduction of va riable revenues according to the contractor's 
performance.  
Regarding the publishing of tendering processes, the cited Law establishes that the proposal must 
be always published on the official press and on  the bidder's website (Comprasnet). Furthermore, 
it allows for the possibility of publishing the Edic t in popular newspapers as well as sending notice 
to registered suppliers by email. 
 
Other  
Canada is interested in learning more abou t Brazil's plans to introduce a new code for 
the mining sector, in particular any informat ion that would clarify the reforms that are 
being considered under this new mining code.  
 
45. Can Brazil provide clarity on the reform s being considered under the new mining 
code?   
Changes in the Mining Code can be found at: 
<http://www.mme.gov.br/mme/menu/Novo _Marco_da_Mineracao.html>. 
 
46. Could Brazil clarify when the new mi ning code would come into effect?  
 The draft for the new Mining Code has recently been submitted to the Brazilian Congress. It is not 
possible to estimate a date for its entry into force. 
 CANADA (Follow-up questions)  
WT/TPR/S/283 
 3  Trade Policies and Practices by Measure, 3.2 Measures Directly Affecting Imports, 
3.2.8 Technical regulations, conformity  assessment and standards, page 63, 
paragraph 76  
And 
 Brazil's response to questions 10 a. and b.  posed by the Government of Canada 
 
In its response to our advance written ques tions, Brazil confirmed that it has not yet 
entered into any Mutual Recognition Agr eements to accept conformity assessment 
results from foreign conformity assessment bo dies. However in their response to Q10, 
Brazil stated that "only in special situations, test reports issued by foreign labs may be 
accepted if previously au thorized by Anatel".  
 
Q1) Could Brazil explain these special situat ions? Have these special situations been 
exercised? If yes, with whom?  The required information can be found in the Annex to Anatel's Resolution 242, 
30 November 2000, available online at http://www. anatel.gov.br/Portal/exibirPortalInternet.do. WT/TPR/M/283/Add.1 
 
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Q2) Which Brazilian national body/bodies must  take responsibility for acceptance of 
testing carried out by a foreign body?  The required information can be found in the Annex to Anatel's Resolution 242, 
30 November 2000, available online at http://www. anatel.gov.br/Portal/exibirPortalInternet.do. WT/TPR/M/283/Add.1 
 
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CHILE 
WT/TPR/S/283 
 2  Régimen De Política Comercial: Marco Y Objetivos 
 
2.3  Formulación, Aplicación Y Objetivos De La Política Comercial  
En el párrafo 2.14, la Secretaría afirma qu e "El sector privado puede participar en la 
formulación de la política comercial por medi o del Consejo Consultivo del Sector Privado 
de la CAMEX (CONEX)".  
1. ¿Brasil podría explicar cómo funciona en la práctica esta participación? ¿Existe, por 
ejemplo, un procedimiento establecido al respecto?  
The Private Sector Advisory Board (Conex) is a collegial body composed of up to 
twenty (20) representatives from the following se gments: production, imports, exports, labor and 
other relevant sectors, appointed by resolution of the Board of Trade (CAMEX ) for a term of 
two (2) years. This joint committee was establis hed as an agency member of CAMEX through 
Decree No. 4,732, of June 10, 2003, and has the task to prepare studies and proposals for 
improvement of foreign trade policy.  
Articles 27 to 29 of the Internal Rules of CAMEX, mentioned in the Annex to Resolution No. 11, 
of April 25, 2005, establish the powers and procedure of action of CONEX, namely:  
Article 27. Compete to advise the CONEX Gecex (Management Executive Committee of 
CAMEX) through the preparation and submission  of studies and proposals for improvement 
of foreign trade policy. 
 
Article 28. The duties of the members of CONEX:  
I - attend meetings as program actions of the Council; 
II - conduct studies and make proposals for improvement of foreign trade policy; 
III - Submission to the Executive Secretariat of CAMEX, distribution and analysis, studies and proposals drawn up; 
IV - to request, through the Executive Secretariat of CAMEX, agencies and entities of 
public administration information or studies on topics of your work schedule; V - to comment on the studies presented at meetings of CONEX, and 
VI - perform other duties conferred upon the President of the CONEX. 
 Article 29. Conex will meet at least once ev ery quarter, or whenever convened by its 
President, at least fifteen (15) days, in both cases, the meeting agenda communicated to its 
members with a minimum of six (6) days. 
 3  Políticas Y Prácticas Comerciales, Por Medidas 
 
En relación a página 12, No. 21, reiterad o en página 222, No. 3.203, se mencionan 
"prescripciones sociales" requeridas en zonas francas.  
 
2. ¿Podría Brasil dar más detalles de  las prescripciones requeridas? 
 Industries installed in ZFM have an obligation, as paragraph 7 of article 7 of the Law No. 288/67, 
to increase the offer of employment in the regi on, as well as for investment in education and 
training of human resources for the scientific and technological development and other social benefits such as day care for the employees' chil dren, food, main  transportation, private health 
care, among others. 
 En relación a página 13, No. 23, reiterado en página 52, No. 3.10 se menciona como 
criterios de compras públicas, entre otr os, el fomento del "desarrollo nacional 
sostenible". (Este elemento de elegibilid ad relacionado con la sostenibilidad fue 
introducido por Ley 12.349 de 2010 que modificó la Ley de Licitación).  WT/TPR/M/283/Add.1 
 
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3. ¿Podría Brasil especificar con más de talles qué entiende por la mencionada 
expresión "desarrollo nacional sostenible"  y cómo se recoge reglamentariamente? 
 The inclusion of "national sustainable development" among the principles that regulate 
government procurement was a response to the need to adopt measures to provide clear 
guidelines related to the role of the state in promoting economic development and strengthening productive chains of domestic goods and services, taking into account environmental concerns. 
Article 3 of Law 8.666 is regulated by the Decree No. 7.746/2012. 
 3.2.7 Medidas comerciales especiales  
E n  e l  p á r r a f o  3 . 6 2 .  s e  i n d i c a  q u e  " l a  n o r m a del derecho inferior es obligatoria como 
recomendación del organismo examinador, y en la mayoría de los casos el Brasil ha 
seguido dicha recomendación, aplicando los derechos en la medida necesaria paragraph 
eliminar el perjuicio causado a la rama de producción nacional aunque de ese modo los 
derechos resulten inferiores al margen de dumping." Sin embargo, luego se afirma que 
desde 2007 "Brasil aplica todo el margen de dumping a los proveedores que no 
responden a los cuestionarios enviados por la SECEX durante la investigación".  
 4. ¿Cuál es el fundamento legal paragraph no  aplicar la norma del derecho inferior en 
el caso de los proveedores que no  responden los cuestionarios? 
 
First of all, one should recall that the lesser duty rule is not mandatory. In the case of Brazil, there 
will be no recommendation for the application of the lesser duty rule in cases of non-cooperation 
by exporters. Otherwise, there would be a strong  incentive for exporters to be non-cooperative 
during the investigation. Nonetheless, even in situations in which there is a recommendation by the Department of Trade Defence (DECOM) to apply the lesser duty rule, Ministers at the Chamber 
of Foreign Trade (CAMEX) — responsible for the application of duties in Brazil — could decide 
otherwise and apply a duty based on the full dumping margin.  "En mayo de 2011, la CAMEX decidió que se podía aplicar la totalidad del margen de 
dumping o de subvención incluso en los casos en que existiera una recomendación 
técnica paragraph aplicar un derecho inferior."  
 
5. ¿Puede Brasil explicar los motivos qu e tuvo la CAMEX paragraph adoptar esta 
decisión?  
Even if DECOM proposes the application of a lesse r duty, Ministers are not bound by that proposal 
and may decide differently if taking into account public interest considerations they conclude that the application of the full margin is required.  
3.2.9  Medidas sanitarias y fitosanitarias 
 Párrafo 3.87: El informe de la Secretaría, en  este párrafo, indica que el 85% de las 
notificaciones cuentan con un plazo inferior  a los 60 días paragraph las consultas.  
 6. ¿A que se debo esto? ¿Brasil ha considerado ir aumentando este plazo en el 
tiempo?  
 Brazil is constantly working for the improvement of its information system. It should be stressed that comments from WTO members have been consid ered by the Brazilian authorities even after 
the closure of the pre-defined period for receiv ing them. Brazilian SPS regulations are based on 
international standards and notified to the WTO. Most notifications are for purposes of market 
opening. 
 
3.4.5.2.4  Otras formas de propiedad industrial  
3.4.5.2.4.1  Indicaciones geográficas 
 En atención a lo señalado en los párrafos 3. 293 y 3.294 del informe de la Secretaría en 
torno a la regulación de las indicaciones geográficas,  
 WT/TPR/M/283/Add.1 
 
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7. ¿Brasil puede proporcionar mayor in formación acerca del funcionamiento y 
protección de las indicaciones geográficas, información sobre el régimen aplicable a la 
protección de indicaciones geográficas extran jeras, y el tratamiento de la homonimia? 
 
Brazil provides a system for the registration of Geographical Indications in accordance with the 
TRIPS Agreement and as described in paragrap hs 3.293 and 3.294 of the Secretariat's Report. 
Foreign GIs have the same rights as those granted to national GIs and have to follow the standard 
procedure for registration. Lastly, the law does not provide a special treatment for homonymous 
GIs if both comply with the requirements of the Industrial Property Law.  El párrafo 3.299 del informe de la Secretaría  señala que el Departamento de Propiedad 
Intelectual del Ministerio de Cultura se en cuentra analizando un proyecto de ley que 
busca actualizar y enmendar la  Ley de Derecho de Autor.  
 
8. ¿Brasil puede entregar mayor información en torno a la naturaleza de los cambios 
que están siendo sometidos a consideración?  
The draft bill for the reform of the current Copyri ght Law of Brazil is under discussion within the 
Government among the Ministries with responsibi lity over the subject. Under the Brazilian Law, 
draft bills are protected against unauthorized disclosure and the Brazilian Government is thus not in a position to disclose specific details. Nevertheless, in general terms, the Brazilian Government 
intends that the draft bill contains provisions to revise the exceptions and limitations to the rights, 
new regulations for the contracts involving copyright and the reformulation of the provisions related to the collective management of rights, besides new specifications on the circulation of 
protected work on the internet. 
 3.4.4  Contratación pública 
 
9. ¿Brasil tiene algún Acuerdo o Capítulo de Contratación Pública con algún país o 
agrupación, distinto de MERCOSUR?  
No. 
 4  Políticas Comerciales, Por Sectores 
 
4.3 Sector Manufacturero   
En página 153, bajo el No. 4.65 se mencio na como objetivos del Plano Brasil Maior 
"asegurar un crecimiento socialmente inclusivo …" 
 10. ¿Puede Brasil entregar más detalles de la forma cómo se implementa este "Plano" 
paragraph asegurar un crecimie nto socialmente inclusivo? 
 Detailed information on Plano Brasil Maior may be found at www.brasilmaior.mdic.gov.br. 
 
WT/TPR/G/283  
4.1.5  Medidas comerciales correctivas 
 En el párrafo 4.27 del informe de Brasil se  señala que "los principales cambios que 
introducirá la nueva legislación se refieren  al establecimiento de plazos más breves 
paragraph las investigaciones, …"  
 11. ¿Cómo planea Brasil establecer plazos má s breves paragraph las investigaciones, 
manteniendo plazos prudenciales que permitan  a las partes interesadas una adecuada 
participación en las investigaciones?  
The decision to reduce the time-limits of trade defense proceedings has been made taking into 
account the obligations set out in the Antidumping Agreement (ADA). All the intended changes will not be detrimental to due process and ADA requirements. WT/TPR/M/283/Add.1 
 
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CHINA 
WT/TPR/S/283 
 Summary 
 
Page 8, paragraph 4  
However, to support sectors affected by a lo ss of competitiveness, the Government has 
also taken some measures that have a restrict ive impact on trade, including increasing 
tariffs temporarily, and using preferential ma rgins for domestic goods and services in 
government procurement, and ha s increased export credits. … 
 
Page 10, paragraph 18  
Among the main instruments are the Expo rt Financing Programme (PROEX) and the 
export credit schemes under the BNDES-EXIM programme. The latter are geared to promote exports with local value added, and th e stated conditions for participation often 
include domestic content/ production thresholds … 
 1. China would like Brazil to clarify whether its preferential export  credit schemes for 
local products have direct trade-distorti ng effects and whether those schemes are 
prohibited subsidies. 
 PROEX and BNDES-EXIM aim at giving Brazilian exporting companies access to credit in similar 
conditions to those practiced in foreign markets. They constitute instruments to correct distortions 
created by high interest rates, which thwart Br azilian goods and services in the international 
market, and are consistent with WTO agreements. The interest rates practiced are similar to those 
practiced by other export-credit agencies in other countries. 
 Page 9, paragraph 11  
However, foreign investment is re stricted in health, mass media, and 
telecommunications, aerospace industry, rural property, maritime and air transport. The 
Federal Government seeks to promote privat e investment, particularly in transport 
infrastructure, energy, aeronaut ics, and other technology-inten sive sectors, in order to 
overcome production bottlenecks, spur comp etitiveness, and uphold economic growth. 
The investment incentives offered to invest ors generally consist of tax exemptions and 
low-cost financing; normally, they do no t distinguish between domestic and foreign 
investors. …  2. China would like Brazil to elaborate de tailed restrictions in above mentioned 
sectors for foreign investment .Does Brazil have any plan to open the above six sectors 
to foreign investment, including health?   
Foreign investment is restricted in some activities in Brazil, such as health services (except health 
insurance). Nuclear energy and postal services activities are under Federal Government monopoly. Courier services may be provided by enterprises legally constituted in Brazil. Foreign investors 
may not manage newspapers, magazines, and other publications, or television and radio networks, 
or hold more than 30% of their capital, except for naturalized citizens settled in Brazil for more than ten years. Under the provisions of Law No. 12,485, cable TV services are completely open to foreign investment. The Brazilian Congress is discu ssing the new Aeronautics Code, which includes 
a proposal for increasing the participation of foreign capital in the air transport sector. 
 3. In addition to that, please illustrate th e specific requirements for foreign private 
investors who participate in the package inve stment incentives. Will they be subject to 
the restriction of entering the above-mentio ned six sectors, including health and mass 
media?  
 
The following prohibitions and limitations apply to foreign capital in the Brazilian economy:   WT/TPR/M/283/Add.1 
 
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(A) Prohibitions: Foreign capital investment is prohibited in the following activities: - 
activities involving nuclear energy; - health services; - post office and telegraph services; and – certain sectors in the aerospace industry, such as Launching and orbital positioning of satellites and spacecraft.  
 
(B) Limitations - Following the 1995 constitutional reform, Brazilian companies (even if foreign owned) may now 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 limitations apply to the acquisition of properties by foreigners in border areas. Purchase of such lands requires 
authorization by the General Secretariat of the National Security Council. - There are also 
some restrictions on the participation of foreign capital in financial institutions; however, these restrictions may be waived in the national interest. This matter is to be the subject 
supplementary legislation that is likely to apply to insurance companies. - A concession is 
required for operation of public air transport services. By law, such concessions are granted only to Brazilian corporate entities (meaning those incorporated and managed in Brazil), in 
which at least 80% of the voting capital is owned by Brazilians (this limitation which also 
applies in increases capital stock). Moreover, such companies must be under the management of Brazilians. Finally, foreign capital participation may not exceed the authorized limit of 20% of voting capital, and requires approval by aeronautical authorities. - 
Some restrictions apply to foreign ownership and management of newspapers, magazines 
and other periodicals, and of radio and televisi on networks. - Brazilian companies, even if 
under foreign control, may request and obtain permission to operate in the mining sector. - 
Law 9.074/95 states that the Concession Law (Law 8.987/95) applies to participation of 
private companies in the generation and transmi ssion of electric power, and to the operation 
of customs posts and terminals, highways, and dams. There are no restrictions on foreign 
capital investments in such companies. 
 Page 9, paragraph 13  
Besides customs tariffs, imports are subjec t to a number of internal taxes. The 
application of these taxes varies depending on the product type, the competent sub-federal authority, and the importer's tax regime status, thus rendering Brazil's tax 
system complex. … 
 4. Please elaborate whether Brazil has any plan to simplify these internal taxes to 
promote trade liberalization. 
 The Brazilian Government is committed to continuously promote a better business climate for domestic and international investors by seeking to rationalize and to simplify tax obligations and 
reducing administrative and operational costs for taxpayers. It is worth mentioning that there are 
on-going plans with the intention of simplify ing the most elaborate taxes – PIS and COFINS 
(Federal taxes) and ICMS (State taxes).  
 
It must be highlighted the endeavor of the Braz ilian government to reduce the tax burden on 
capital goods. There was a permanent reduction of the IPI, gradual reduction of the period for 
return of PIS / COFINS on capital goods, from 12 months to immediate recovery, and, besides 
that, the increasing numbers of "ex-tarifários" (special administration of the import tariffs).  Moreover, in December 2012, the government appr oved an accelerated accountancy depreciation 
for up to date brand new machinery, equipment, devices and instruments, purchased between 
September and December 2012.   
 Page 10, paragraph 14 
 
Brazil maintains a system of automatic an d non-automatic licences for imports of 
various products, regardless of their origin ... Non-automatic import licences are issued 
by some 16 agencies; the statutory timefr ame for the processing of requests is 
60 calendar days. The importation of some products may require licences from more 
than one entity. Some agencies may levy a fee for the import licence; according to the authorities, these fees reflect the cost of services rendered … 
 WT/TPR/M/283/Add.1 
 
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5. Please explain how the fees levied on im port licences are reflected in the cost of 
the services rendered when the import licences are issued?  Each one of the 16 agencies issuing non-automatic import licenses are autonomous for regulating 
and defining the fees they may levy according to the services rendered and according to the 
nature of the products at hand. These fees corresp ond exclusively to the services rendered and do 
not constitute additional import duties. 
 
Page 10, paragraph 15  Brazil is a significant user of  trade remedies, particularly anti-dumping (AD) measures: 
during the review period, the number of new cases varied significantly from year to 
year, but with the exception of 2009 was ab ove historical trends. In the first nine 
months of 2012, Brazil initiated 47 new invest igations, exceeding the previous record 
of 40 in 2010. There were 83 anti-dumping measures in place in mid-2012, up from 
63 reported in the last review, for October 2008. During the review period Brazil took a number of steps to strengthen trade defence.  These included implementing changes to 
certain practices, such as anti-circumventi on, and to the regulatory framework, for 
instance, passing new legislation providing fo r more stringent application of provisional 
measures.   
Page 62, paragraph 3.68 
 I n  t e r m s  o f  m e a s u r e s  i n  f o r c e ,  B r a z i l  h a d  83 anti-dumping measures in force as of 
30 June 2012 (up from 63 in October 2008), of which 20 related to imports from China 
and 10 to imports from the United States …   
6. Since last review, Brazil has been streng htening trade protection by various means 
such as changing regulatory measures and enacting new laws, and launching a large number of trade remedies such as anti-dum ping measures. All these measures have 
severely affected normal trade. Please expl ain the rationale of those measures, such as 
how to avoid the arbitrary use of trade reme dies including anti-dumping investigation. 
 The increase or decrease in contingency measures does not depend on DECOM and does not stem 
from the arbitrary use of trade defence proceedings. It falls on the domestic industry the decision 
to submit a petition. The technical rigor of DECOM's work has remained the same through all of the strengthening of trade protection carried out by Brazil, in a way that, on average, about 50% 
of the petitions filed do not result in investigations and, out of all investigations actually initiated 
by that Department, about 40% do not result in the imposition of definitive measures.  7. Brazil officially recognizes China as a market economy country in accordance with 
the Memorandum of Understanding between th e Federative Republic of Brazil and the 
People's Republic of on Cooperation in the fields of trade and investment.  However, 
Brazil does not treat China as a market ec onomy country in practice. Instead, Brazil 
frequently adopts trade remedy measures su ch as anti-dumping investigation against 
Chinese products, and insists on evaluating Chinese products based on the alternative 
prices of a third nation chosen by random, which makes Chinese enterprises face still 
more difficulties and unfair treatment wh ile defending itself in anti-dumping 
investigations.  Please keep your commitm ent, acknowledge the status of China's 
market economy and eliminate the policies an d practices discriminating against China. 
 
The 2004 bilateral MoU is not self-applicable in what regards trade defence and further regulation 
is needed. The issue is subject to ongoing analys is and consultations with the Brazilian relevant 
Ministries. 
 
Page 10, paragraph 18  
"Brazil maintains a policy of export prom otion through a number of programmes to 
enhance the competitiveness of export-orien ted companies, in particular small-scale 
enterprises, and increase exports ..."  
8. Could Brazil clarify whether it has other measures in place to enhance the WT/TPR/M/283/Add.1 
 
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competiveness of its local industrie in addi ton to the policy of export promotion? 
 As examples: regulatory reforms in port, railroad and airport sectors, with the objective to improve the participation of the private companies and increase systemic competitiveness; reduction of tax 
burden in the payroll of the industrial enterprises and incentives for R & D. 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) . It must be highlighted the endeavor of the 
Brazilian government to reduce the tax burden on capital goods. There was a permanent reduction 
of the IPI, gradual reduction of the period for return of PIS / COFINS on capital goods, from 
12 months to immediate recovery, and, besides that, the increasing numbers of "ex-tarifários" (special administration of the import tariffs). Moreover, in December 2012, the government 
approved an accelerated accountancy depreciation for up to date brand new machinery, 
equipment, devices and instruments, purchased between September and December 2012.  
Page 11, paragraph 20 
 Incentives and government assistance are available at the federal and sub-federal 
levels. Incentive programmes may be region al, aimed at developing research, or 
targeted at specific sectors. Specific programmes are in place for the automotive, 
information technology, aeronautics, and pe troleum industries. The range of support 
measures includes: loans; tax incentives; fi nancial contributions; long-term and equity 
financing; accelerated depreciation; guar antees; grants; and credit insurance ... 
 9. What is the specific implementation de partment providing go vernment assistance 
at the federal and sub-federal levels? Is such  government assistance at the federal level 
published on government website?  If so, please provide such government website. 
 
Detailed information on the specific implementation department providing government assistance 
may be found at "http://www. brasilmaior.mdic.gov.br". 
 10. Can all qualified enterprises (including  local and foreign enterprises) apply for 
Brazil federal assistance? 
 Kindly refer to the answer to question 9 above. 
 
Page 11, paragraph 21  
…"Companies established in the ZFM are gr anted tax exemptions by the federal and 
state governments. One of the main requiremen ts for the concession of these benefits is 
observing PPB criteria; there are also a number of environmental and social requirements."…  
 
11. Could the Brazil government explain the environmental requirem ents set by Brazil 
for companies granted with tax exemptions in the ZFM? 
 
There are a great variety of environmental requirements depending on the kind of investment project. All the projects must be certified by the Institute of Environmental Protection of the 
Amazonas (IPAAM). 
 Companies established in the Free Trade Zone of Manaus have a strong environmental concern, mainly because they are installed in the heart of the Amazon rainforest. Therefore, compliance 
with the rules laid down in ISO 14000, for example, is already common practice. 
 Page 11, paragraph 23 
 
Brazil is not a party to the Agreement on Government Procuremen t ... Brazil's Tendering 
Law allows for preferences for goods and serv ices produced in Brazil, or produced or 
supplied by Brazilian companies or by companie s that invest in technology development 
in Brazil, in the case of equivalent offers ... A revision to the Tendering Law introduced 
in 2010 significantly altered Brazil's procurem ent legislation to make the granting of 
preferences a permanent feature of the regime : preferential margins of up to 25% may WT/TPR/M/283/Add.1 
 
- 32 - 
 
be granted for goods and services produced nationally and in accordance with Brazilian 
technical standards. …  12. Does it indicate that Brazil has no inte ntion to join the Agreement on Government 
Procurement (GPA), as Brazil makes it le gal to provide preferences for goods and 
services produced in Brazil and further ma kes such preferences a permanent feature 
in 2010? 
 
At the moment, Brazil has no plans to join the GPA. Brazil's position is grounded on Article III, Section 8, paragraph (a) of the GATT, which explicitly excludes government procurement from the obligations relating to national treatment. 
 
13. Please illustrate whether there is any plan to amend its Tendering Law if Brazil 
plans to join the GPA. 
 
Please see answer for question 12  
1  Economic Environment 
 Page 17, paragraph 1.12  
Import constraints in some sectors, in part icular manufacturing, have led to losses in 
competitiveness both domesti cally and abroad. … 
 
Page 19, paragraph 1.20 
 Nevertheless, more comprehensive reforms are needed to streamline Brazil's highly 
complex tax system, which remains an important barrier to Brazilian firms' 
competitiveness (section 1.6). …  14. Brazil has taken a series of domestic me asures to improve its domestic economic 
environment. What outcome will be expected to achieve following the implementation of 
such policies? Have the policies and me asures achieved desired results?  
 
The Secretariat report is focused on trade polic y aspects and provides a very general overview, 
drawing upon the analysis of other sources about the economic environment. Thus, Brazil does not share completely the evaluation on the report that lists and qualifies some structural problems 
supposedly affecting the Brazilian economy's competitiveness. Despite that, several important 
actions have been taken to improve infrastructure and tax system.   For example, Brazil is improving the regulatory ru les for various sectors of infrastructure, with the 
goal of enabling greater private investment. An  example is the recent approval of the new 
regulatory rules for the port sector (Law 12.815/2013). Also great effort has been made to increase private funding for investment in infrastructure, mainly through infrastructure bonds (Law 
12.431/2011). The Government is also changing th e taxation charged on the payroll, which is 
gradually starting to focus on revenue. This measure, applicable to some sectors of the economy, represents a reduction of the effective tax burden and labor costs. Several others tax exemptions 
are also underway for different economic sectors. 
 Page 25, paragraph 1.46  
However, in its bid to support economic sect ors suffering from a loss of competitiveness, 
the Brazilian Government also t ook a number of tr ade restrictive measures during the 
review period. This has included temporar y tariff increases; the Government has also 
altered its procurement policy and introduced  preferential margins of between 8% and 
25% for a limited number of domestic goods and services, mainly textiles and clothing, 
certain pharmaceuticals, and some transport equipment (Chapt er 3.4.4). Also, under the 
National Development Bank (BNDES) progra mmes, the Government expanded the offer 
of credit to Brazilian exporters, granting automatic access in some cases to products 
with domestic value added (Chapter 3.3.5).  
15. Pleae clarify whether Brazil has any timetable on implementing relevant WT/TPR/M/283/Add.1 
 
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preferential measures to support economic sectors to recover co mpetitiveness? When 
willl those measures be completed? Will such  measures continue if the domestic 
problems could not be effectively addressed such as infrastructure? 
 
The infrastructure problems are being addressed through regulatory reforms that increase private 
sector participation in the provision of transport infrastructure. The industrial sector measures have the Plano Brasil Maior (Greater Brazil Plan) as a guideline. The duration of such measures 
varies from case to case, but generally speaking, all special arrangements have a provisional 
character.  Page 30, paragraph 1.73 
 
16. Please elaborate the national tax polic ies and local policies entitled to foreign 
enterprises when they make investment, es tablish holding companies, joint ventures 
and conduct other busine ss operation in Brazil. 
 The Brazilian legal structure provides for forms of association whereby parties may form corporate 
entities and other forms of incorporation do not imply corporate structure. The latter group 
includes consortia and other forms of legal businesses whereby parties do not relinquish their status as individuals. Incorporation of a company, on the other hand, entails a written agreement, either private or public, in which the contracting pa rties express their aims either individually or as 
a partnership (sociedades personificadas or não personificadas). The latter include "sociedades em 
comum" and "sociedades em conta de participação". Brazilian legislation provides for the following types of companies: "sociedade simples" (General  Partnership); "sociedade em nome coletivo"; 
"sociedade em comandita simples"; (Partnership by Shares) "sociedade limitada"; Corporation 
"sociedade anônima"; and Private Limited Liability Company "sociedade em comandita por ações". The law attributes corporate status to such companies upon registration with the competent pubic 
registry office, which thus become legal entities, with distinct liability to that of their partners. 
Brazilian law also provides for associations, foundations and co-operatives. Such forms of association are not-for-profit, either due to their charitable nature or in the light of their particular characteristics and aims, and are thus different from commercial organizations, regardless of 
whether the generate revenues. It should be stressed that all the types of company foreseen 
under Brazilian legislation, apart from joint stock companies (sociedades anônimas), may function either as 'simple' companies (sociedades simples) or business corporations (sociedades 
empresariais). However, this should be expressed in their articles of incorporation at the time of 
their founding. Companies (Sociedades simples) must be registered at the Civil Registry of Corporate Entities, whereas business corporations (sociedades empresariais) must register with 
the board of trade. 
 The Brazilian Federal Constitution, promulgated on October 5, 1988, confers upon the Federal 
Union, the States, and the Municipalities power to levy taxation. In Brazil taxation may take the 
form of taxes, fees, betterment fees, other contri butions, and compulsory loans. Taxation may be 
instituted by any of the three levels of government, in accordance with specific powers conferred under the Constitution. Fees collected at the three levels are used to fund services such as law 
enforcement, and other collective public serv ices delivered or provided to the taxpayer. 
Betterment fees (though as yet not commonly levied) may be collected from the property owners that benefit from execution of public works. Contributions can only be levied by the Federal 
Government. There are (a) social contributions (payroll charges); (b) contributions to intervene in 
the economic domain, (c) contributions in the interest of professional or economic categories, and (d) contributions to finance social security. Compulsory loans can be instituted only by the Federal Government, to defray urgent public investment of relevant national interest, or extraordinary 
expenses resulting from public calamity or foreign wars. Unless otherwise expressly stated in the 
Constitution, the imposition and collection of taxation must comply with certain fundamental constitutional rules, including: - the principle of legality (whereby taxation may only be levied or 
increased by enacted law); - the rule of equality (whereby taxpayers in equivalent situations must 
receive identical tax treatment); - the principle of non-retroactivity (whereby taxation cannot be levied on events that occurred prior to entering into force of the law that created a new tax or 
which increased rates or the base of computation of existing ones); - the principle of precedence 
(whereby taxes cannot be collected in the same fisc al year in which the law that created them or 
increased their rates was published, nor prior to nine ty days of said publication. Contributions, on 
the other hand, can be collected in the same fiscal year, but must respect the ninety-day 
deadline); - the principle of non-confiscation (whereby taxation cannot be confiscatory). WT/TPR/M/283/Add.1 
 
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2  Trade Policy Regime: Framework And Objectives 
 Page 35, paragraph 2.16  
The incumbent Government has formulated the Plano Brasil Maior (Greater Brazil Plan), 
encompassing its industrial, technological, an d foreign trade policies. The Plan is meant 
to uphold sustainable economic growth in an adverse economic environment, and to 
guarantee that Brazil emerges after the economic  crisis in a better position than before 
it.  17. Please elaborate the new industrial polic ies in the Greater Brazil Plan promulgated 
in 2011. 
 
Detailed information regarding the industrial policy of  Plano Brasil Maior can be found at:  
_www.brasilmaior.mdic.gov.br 
 Page 35, paragraph 2.19 
 
Statement of Registration - Foreign Direct Investment Module (RDE-IED), on the Central Bank's Information System (SISBACEN). Fore ign capital must be registered within 
30 days of the date it enters Brazil or afte r customs clearance in the case of goods. 
 
18. Could Brazil briefly explain the RDE-IED and the SISBACEN? 
 
The Central Bank´s Information System (Sisbacen) is a corporate computerized system with the 
purpose of: a) providing the Central Bank of Brazil (CBB) with instruments in the accomplishment of its works; b) facilitating the gathering, trea tment and disclosure of information related to CBB, 
to the institutions object of its control, normalization and/or surveillance. c) making available to 
regulated institutions by CBB, a quick and safe means for remittance and exchange information; and d) enabling the access by the public to info rmation of general character kept in the databases 
which integrate it, as well as to those of a private nature, to their respective concerned individuals 
or entities. 
 In respect of RDE-IED, RDE is the acronym for "Registro Declaratório Eletrônico" (Electronic 
Declaratory Registration) and IED comes from "Investimento Estrangeiro Direto" (Foreign Direct 
Investment). The RDE-IED is a module of the system RDE in which the whole process of registration of foreign capital is computerized. So, the registration is done by the user (domestic 
party) through transactions in SISBACEN. It is made in a declaratory and electronic form with the 
CBB. For each registration an RDE number is ge nerated, which will be required for transfers 
through authorized banks such as those concerning capital return, interests, profits and dividends. 
It is important to highlight that foreign capitals are registered in specific modules, according to 
their classification, such as: credits (loans, longterm imports financing, technical assistance and 
royalties contracts), portfolio investments and IED, meaning FDI.  
Page 36, paragraph 2.25 
 "Foreign investment is restricted in activiti es involving health services (except health 
insurance). Nuclear energy and postal servic es activities are under Federal Government 
monopoly. Courier services may be provided  by enterprises legally constituted in 
Brazil …"   
19. Please explain how Brazilian postal and courier services are opened to foreign 
countries, the presence of foreign-invest ed business in Brazil, and the specific 
qualification requirements and examinatio n and approval procedures for foreign 
investors to enter Brazil. 
 Postal services are regulated by the federal government, according to the Federal Constitution of 
Brazil. Courier services may be provided by enterprises legally constituted in Brazil, in the terms of 
Law 6,538 of 22-6-1978, be them domestic or foreign.  WT/TPR/M/283/Add.1 
 
- 35 - 
 
Page 36, paragraph 2.26 
 Brazilian nationals, foreigners that resi de permanently in Brazil, and companies 
established in the country (regardless of the origin of their capital) may participate in 
fishing activities in Brazilian territorial wa ters provided they are authorized by the 
Special Secretariat for Aquaculture and Fish eries. A similar authorization and further 
specific requirements are nece ssary to operate in the mining  and hydrocarbons sectors.  
 
20. According to our understanding, Brazil has drafted laws regarding reform of 
mining sector since 2011, whic h adopts restrictive measures to the mining sector and 
makes many adjustments as to the duration  limit of license and the regulations on 
exploitation of iron ore. Please explain the amendment made to the relevant mining 
laws and regulations, the restrictions on fo reign investment, and th e state of play of 
foreign investment involved in Brazilian mining sector. 
 
The project of law concerning the new Brazilian Regulatory Framework was sent to the Brazilian 
Parliament, in June 19th, 2013. It is expected that  the Parliament will analyze the text over the 
next months. The framework creates the National Mining Agency, regulatory agency for the sector, 
and the National Council for Mineral Policy, entity for assessment of the Presidency.  Page 43, paragraph 2.49 
 
"… Other activities that Brazil has carried  out include simplified export procedures 
through postal and courier services, the WTO dispute settlement system, trade policy 
and trade negotiations."  
 21. Please elaborate the specific measures ever taken to simplify export procedures 
and establish convenient export channe l through postal and courier services. 
 The postal export project called "Exporta Fácil"  was set up in 2000 by Brazil's public postal 
operator and was promoted by the Brazilian govern ment. The main objective was to foster exports 
by MSMEs but nowadays it also benefits large companies. The Brazilian Post offers its 
comprehensive postal network containing more than 10,000 outlets to export goods at a cost that is much cheaper than the competition. The Export a Fácil reduced the number of forms that had to 
be completed to dispatch parcels under 30 kg with a value of less than 50,000 US dollars. Exporta 
Fácil also frees exporters from dealing with other authorities involved in the export process, such as customs, as the post took on this responsibi lity. In 2012, more than 190,000 export operations 
were conducted under the Exporta Facil program, whose customs value was more than 
270,000 dollars. Similar operations can be done through courier services.  3  Trade Policies And Practices By Measure 
 
Page 46, paragraph 3.17  
… "Each ID registered in SISCOMEX is subjec t to a fee of R$185; additional fees, ranging 
from R$29.5 (first two items) to R$2.95 (ite m 51 and beyond), are payable for each item 
listed on the ID."  
 
22. Please explain the consistency of this practice with subparagraph (a) of paragraph 1 of Article VIII of GATT.  
The minimum cost of the import processing fee is R214.50 (about US 100), that means R185, for 
the import declaration itself plus R 29.50 for the merchandise item classified on a single tariff classification. For an import declaration with more than two different goods (different tariff 
classification) an additional R$29.50 fee must be paid, if needed, a progressive  charging table 
applies, as more different merchandise with different tariff classifications are added to the import declaration. There is no merchandise classification limit on a single import declaration. 
 
The complete method of calculation of  the processing fee is as follows: 
 
Import declaration:  R$ 185.00 
First two merchandise item: R$ 29.50 WT/TPR/M/283/Add.1 
 
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3rd to 5th item:   R$ 23.60 
6th to 10th item:   R$ 17.70 
11th to 20th item:   R$ 11.80 
21st to 50th item:   R$ 5.90 
from the 51st on:   R$ 2.95 
 The amount of this fee is approximate of the co st of the service rendered, therefore, it is 
consistent with subparagraph (a) of paragraph 1 of Article VIII of GATT. 
 Pages 46-47, paragraph 3.18  
… "The risk analysis factors are regularly updated and include: the importer's fiscal 
compliance record; operational and financial capacity; frequency of use of the system; 
the nature, volume, and value of imports; ta xation value; country of origin; and the 
import regime."… 
 23. Please explain the meaning of "import regime". 
 
In this context, "import regime" is related to the applicable tax treatment and the purpose of 
import, such as: free circulation; exemption and suspension.  
Page 47, paragraph 3.19 
 "Brazil has also increased the number of goods subject to compulsory certification 
(section 3.2.8) and taken steps to strengthen  conformity assessment upon importation."  
 24. Please explain the meanings of "com pulsory certification" and "conformity 
assessment" and their roles in preventing fraud. 
 According to the concept adopted by INMETRO, it is understood that conformity assessment is a 
systematic process, monitored and evaluated in order to provide adequate degree of confidence 
that a product, process or service, or a pr ofessional, meets pre-established requirements 
standards and technical regulations with the lowest cost to society.  
Certification is a mechanism designed to assess compliance as well as other instances such as the 
Declaration of the Supplier, Inspection, Testing, etc. Its selection is based on environmental, social, technical, economic, financial and safety considerations. When identified by the regulator as 
the most appropriate to the specifics of a product, it is used in a mandatory or voluntary way, 
depending on each case.  In cases of compulsory certification, the marketing of the product is prohibited without proper 
confirmation of its compliance, allowing for potentia l fines and seizure of illegal goods. For imports, 
the presentation of the certificate requested for the process import permit is required.  
Page 47, paragraph 3.20 
 "A simplified import declaration (SID) may be used for certain shipments whose value 
doesnot exceed US$3,000 and for some non-commercial imports." 
 25. Please explain the SID and its procedur es? Is import duty exempted for imports 
whose value does not exceed US$3, 000 and for some non-commercial imports? 
 
Basically, a SID is used only for low value import operations and some particular cases, such as unaccompanied baggage and imports through postal and courier services. The import procedures 
applicable to an SID and an ID are quite the same. 
 The applicable duty depends on goods not the declaration. Some non-commercial imports are 
exempted from duties under Title I, Chapter VIII of the Customs Code, 2009. 
 WT/TPR/M/283/Add.1 
 
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Page 48, paragraph 3.23 
 The 2013 World Bank Doing Business survey re ports that the overall time to import 
merchandise into Brazil (17 days) has not ch anged over the past three years, after 
having decreased from 19 days in 2009 to 16 days in 2010. However, the corresponding 
cost per container was estimated to have  almost doubled over 2009-13, reaching 
US$2,275.21 According to the authorities, th e average time for customs clearance was 
41 hours in 2011 and 53.5 hours in 2012; the increase is partly attributable to Brazil's 
congested sea ports, and strike s by public sector workers … 
 26. Please elaborate the composition structur e of the cost per container for importing 
merchandise into Brazil as well as the corresponding proportion of each part. 
 The Brazilian Government can not give such information, as the data may vary depending on the 
goods imported.  
 27. Pleae explain the reason for the increase  in the cost per container for importing 
merchandise into Brazil?  
 Although all the efforts to streamline the import  and export procedures, the average time for 
customs clearance was negatively impacted by infrastructure problems and other difficulties. 
 
28. Does the Brazilian customs have any sol utions or measures to relieve this? 
 
Yes. Brazil is concerned about the issue of modern ization of its Customs system. Improvements to 
this are an ongoing exercise. Relating to reducing customs clearance time, the following initiatives can be highlighted: 
 
- In August 2012, a National Center for Customs Risk Management (CERAD) was set up 
to improve the risk management and targeting of transactions; 
- The "certified enterprise" scheme (Blue Line), under which companies benefit from 
streamlined customs procedures, is currently under revision with a view to encourage 
more companies to join it; 
- A new computerized customs and foreign trade system is under construction. The aim 
is to create a more efficient single foreign trade window, through which many 
documents, formalities and data items will be simplified; 
- By the end of 2013, non-intrusive inspection equipments, for containerized cargo 
inspection, will be in place at the major points of entry into Brazil; 
- Since May 2013, 24/7 working hours for customs clearance has also been adopted at 
8 major seaports. 
 
29. Please confirm whether the complic ated procedure for customs clearance 
contributes to the increase in the time fo r customs clearance, in addition to the 
congested sea ports and strikes? 
 
Brazil is working on the reduction of time for customs clearance through many initiatives, including review and simplification of customs procedures. 
 
Pages 48-49, paragraph 3.28  "At the point of entry, non-originating goods are liable to a fine of  30% of their c.i.f. 
value; those subject to a quantitative restri ction will not be admitted into the customs 
territory and will be liable to a fine of R$5,000 per day."   
30. Please clarify whether relevant fines ar e only imposed on goods whose origin are 
declared incorrectly.  
The matter is regulated under Decree 6,759/2009 and CAMEX Resolution 80/2010. 
 31. Please also explain the reasons for doing so and its consistency with Article VIII of 
GATT. 
 WT/TPR/M/283/Add.1 
 
- 38 - 
 
Kindly refer to the answer to question 30 above. 
 Page 49, paragraphs 3.231-3.233  
32. Does Brazil have any plan to enhanc e the customs administration efficiency, 
simplify import and export proceduces and make other improvement to enhance 
transparency? 
 
As mentioned above, Brazil is concerned about the issue of modernization of its Customs system. Improvements to this are an ongoing exercise. On this issue, Brazilian customs has already started process-mapping, reviewing and re-engineering its customs operations in order to improve import 
and export procedures in near future. 
 Page 57, paragraph 3.25 
 
In addition, certain capital and consumer  goods are eligible for temporary IPI 
reductions57; tax rebates, including on impo rted goods, may also be granted at the sub-
federal level (section 3.4.1). 
 33. Please elaborate the 2012 export ta x rebate policy and list the types of 
manufacturing industries and the names of products involved. 
 
All information regarding tax rebates may be found at http://www.receita.fazenda.gov.br /aduana/drawback/regime.htm 
 
Page 58, paragraph 3.55  
Non-automatic import licences are issued and registered directly in SISCOMEX by 
16 agencies 66; the statutory timeframe for processing requests is 60 calendar days. 
The authorities noted that, although there ar e no overlaps in the licensing entities' 
competences, imports of certain goods ma y require licences from more than one 
entity. … 
 34. Introduction to the agencies issuing non-automatic import licences is stated in 
note 66 of secretariat report, yet such intr oduction is written in Portuguese. Please 
provide the English version if there is any.  
Non-automatic import licenses are issued and regi stered directly in the Integrated System of 
Foreign Trade (SISCOMEX) by 16 government agenci es. For a list of the competent entities and 
the products under their respective responsibility, see http://www.mdic.gov.br/arquivos/d wnl_1308919721.pdf. The list availa ble on the web page of the 
Ministry of Development, Indust ry and Foreign Trade (www.mdic.gov .br) is written in Portuguese. 
 35. Could the Brazilian government kindly ex plain the ratio of th e imports requiring 
non-automatic licences from more than one entity among all the imports requiring non-
automatic licences? Please further explain why it is necessary to obtain the licence from 
more than one entity. 
 
Import licensing requirements involving more than one licensing agency are exceptional. Less than 20% of goods under licensing requirements are lic ensed by more than one entity. This situation 
happens only when authorities with different comp etences needs to control a certain good. As an 
example, certain chemicals that used on the pharma ceutical industry that could also be used as 
inputs for chemical weapons must have their import licensed both by the health authority (since it is a pharmaceutical) and by Science and Technology au thority (in order to assure that it will not be 
deviated of its purpose and used on the production of weapons). 
 Pages 58-59, paragraph 3.55 
 
Non-automatic import licences are issued and registered directly in SISCOMEX by 16 agencies 66; the statutory timeframe for processing requests is 60 calendar days. 
The authorities noted that, although there ar e no overlaps in the licensing entities' WT/TPR/M/283/Add.1 
 
- 39 - 
 
competences, imports of certain goods ma y require licences from more than one 
entity …  36. It is understood that it involves many  departments or agencies to obtain non-
automatic licences. In addition, it is necessa ry to obtain licences from more than one 
entity for importing some products. The examination procedur es are relatively 
complicated, which constitute trade barriers to a certain extent.  Please explain the 
rationale for such regulations and practices. 
 The products subject to non-automatic licensing are listed in the Administrative Treatment of the Integrated System of Foreign Trade (SISCOMEX) and can also be found on the web page of the 
Ministry of Development, Industry and Foreign Tr ade (MDIC). In their majority, they are products 
which may cause damage to human, plant or animal health, products capable of causing environmental damage, products classified as weapons or made for warlike purposes, products 
subject to non-tariff quotas as established in the agreements of the Uruguay Round, products 
subject to tariff quotas and products subject to trade remedies measures established in accordance 
with the WTO agreements. However, imports of certain goods may require licenses from more 
than one government agency. It should be emphasiz ed that there are no overlaps in the licensing 
entities' competences.  37. Does the Brazilian government have any pl an to revise the procedure of obtaining 
non-automatic export licences? 
 Brazil is constantly reviewing and improving its import licensing regime. The Technical Group on 
Trade Facilitation GTFAC is updating procedures and regulatory legislation besides increasing 
cooperation and risk assessment analysis among government agencies. The GTFAC acts as the National Trade Facilitation Committee in Brazil and is responsible for monitoring, reviewing, 
reporting progresses and proposing measures in a wide range of trade facilitation aspects on a 
permanent basis to the Council of Ministers of th e Brazilian Ministerial Chamber of Foreign Trade 
(CAMEX).  
Page 59, paragraph 3.56 
 "According to the authorities, the purpose of non-automatic licensing is to prevent 
environmental damage". 
 38. Please list the import products subject to non-automatic licensing due to 
environmental reasons. 
 Products licensed for enviromenthal reasons are endangered species covered by CITES, chemicals that affect the ozone layer covered by the Montreal Protocol and hazardous wastes and disposals 
covered by the Basel Convention. 
 Page 59, paragraph 3.57 
 
In February 2013, goods subject to non-au tomatic licensing significantly outnumbered 
those subject to automatic licensing.  
 
39. It seems that the trend of increasing no n-automatic licences is not consistent with 
WTO's policy of trade facilitation. Please ex plain the reason for the increase of non-
automatic licences in recent years. 
 
In their majority, they are products which may cause damage to human, plant or animal health, products capable of causing environmental damage, products classified as weapons or made for 
warlike purposes, products subject to non-tariff quotas as established in the agreements of the 
Uruguay Round, products subject to tariff quotas and products subject to trade remedies measures 
established in accordance with the WTO agreements. 
 WT/TPR/M/283/Add.1 
 
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Page 59, paragraph 3.58 
 "Brazil is a significant user of trade remedi es, particularly anti-dumping (AD) measures, 
and there are indications that these remedies may play an increasingly important role in 
its future trade policy". 
 40. Among the anti-dumping investigations launched by Brazil in 2012, 13 were 
against Chinese goods.  Is there any special consideration in terms of policy on the part 
of Brazil to frequently use tr ade remedies against China? Wh at measures will Brazil take 
in the future to reduce the trade frictions between China and Brazil? 
 
Any trade defence investigation in Brazil is carried out in accordance with multateral rules, 
including China´s Protocol of Accession. It should be noted however that, since China is Brazil's largest trade partner, it is only natural that a larger number of its trade defense proceedings 
involve Chinese exports. Since trade defense inve stigations are based on petitions submitted by 
the private sector and follow multateral rules, trade defence measures should not be seen as causing trade frictions. 
 
3.2.7.2  Anti-dumping and countervailing measures  Pages 59-60 
 
41. It can be seen from Brazil's statement report and secretariat report that Brazil 
intends to adopt provisional anti-dumping me asures within as short a period of time 
(120 days) as possible by amending anti-dum ping law(s) that will stipulate that the 
relevant information of the complaining part ies should be collected in advance. In 
practice, however, what is provided by  the complaining parties is usually the 
information about the situation one year prior to the period of investigation. In other 
words, the information available during the peri od of investigation is not consistent with 
the information provided by the complaining parties. In addition, Brazilian investigation 
agencies set strict time limit for all the procedures such as sampling, extention of 
period, notarization and authentication, oath -taking and translation. All of these have 
imposed heavy burden on enterprises to de fend themselves.  Ho w can Brazil guarantee 
the procedural and substantive rights of th e enterprises responding to charges given 
that the investigation period is shortened, most investigators are newly appointed ones, 
and the information provided by the compla ining parties is collected in advance? 
 
Although the investigation times will be shortened by the new regulation, the time limits given to 
the companies responding to charges will not change. The reduction of the time limits is due to increase of internal efficiency of the Department, mainly through the hiring of 47 new investigators. Even though the new investigators have received proper and extensive training, 
they are not yet leading the investigations and all cases have at least one experienced investigator 
on the team.  
Concerning the information provided by the complaining parties, it is important to clarify that such 
information regards the period of five years prior to the investigation itself. This information is a precondition for DECOM to analyse a petition. 
 
Page 61, paragraph 3.64  "In 2012, CAMEX established a Technical Grou p for Public Interest Assessment (GTIP) 
pursuant to Resolution No. 13 of 29 February 2012." 
 42. Regarding the newly established technica l group for public interest assessment, 
how does Brazil carry out public interest inve stigation? Is the investigation carried out 
for each trade remedy case?  
Investigating proceedings based on public interest are not carried out for each trade remedy case. 
Such proceedings may either be initiated ex officio by members of CAMEX or through petitions submitted by the private sector. During the analysis, GTIP may request further information from the petitioner and may request information from other parties as well. The Group will analyze 
submissions received and its conclusions, in a written form, will be forwarded to CAMEX's Council WT/TPR/M/283/Add.1 
 
- 41 - 
 
of Ministers within four months from the initiati on of the proceeding. Any decision by the Council 
based on public interest will be made public through the Official Gazette.  Page 61, paragraph 3.67 
 
"Brazil is undertaking a broader revisi on of Decree No. 1602, which governs the 
application of AD measures." 
 
43. Brazil has substantially amended its anti -dumping law(s). When will the new laws 
and regulations be promulgated?  
Brazil's new antidumping regulations are expected to  be published soon, but it is not possible to 
set a specific date.  
Page 63, paragraph 3.76 
 Brazil did not notify to the WTO of any new mutual recognition agreements (MRAs) on 
conformity assessment during the review peri od; its five notifications dating back to 
2003 were covered in the Secretariat Re port for Brazil's previous Review … 
 44. Please clarify if the Brazil government  has signed any new mutual recognition 
agreement on conformity assessmen t during the recent 10 years. 
 Brazil has notified the WTO all agreements on mutual recognition under the TBT Agreement. Any 
new agreement reached will be notified. 
 Page 65, paragraph 4 
 
The Ministry of Fisheries and Aquaculture (MPA) is responsible for aquatic animal 
health; its General Coordinati on Office for Aquatic Animal Health (CGSAP) carries out 
sanitary controls to protect the natural and reproduction environments in Brazil, 
including on imports of fish and aquatic an imals and their reproductive materials. The 
Brazilian Health Surveillance Agency (ANVISA) , an autonomous entity linked to the 
Ministry of Health under a management contract, is in charge of controlling the 
production and marketing of products and se rvices subject to sanitary surveillance for 
the protection of human health. ANVISA is responsible for, inter alia, approving the 
importation of food products and performing sanitary inspections at the points of entry 
into Brazil. 
 45. Could Brazil kindly clarfiy whether the Brazilian Health Surveillance Agency 
(ANVISA) adopts sanitary and phytosanitary  measures to inspect Chinese medicine 
products and health products imported from  China? What are the legal and regulatory 
documents with which these sanitary and ph ytosanitary measures are in accordance? 
 
Yes. The legal framework for sanitary and phytosanitary controls in Brazil is provided by 
Laws 6360/76 and 9782/99, and also by Anvisa's Resolution RDC 81/2008. In addition, specific requirements and technical regulations may be published by Anvisa for some categories of 
products, such as medicine and other health products.  All the texts are available online at: 
www.anvisa.gov.br  Page 66, paragraph 3.91 
 
The importation of any product subject to SPS controls requires a non-automatic licence … Additional requirements, such as prior authorization of each shipment to 
Brazil and inscription in a register, appl y to some products; some of the relevant 
procedures may not yet be performed electronically. …  
46. The electronic system has not yet been us ed in the relevant procedures of applying 
for non-automatic licence(s) for importing some products that are subject to SPS controls.  Brazil mentioned that a system to  be used for electronic submission of 
application for import authorization is under development.  When will the system be put 
into use in the import authorization procedure at the latest? WT/TPR/M/283/Add.1 
 
- 42 - 
 
The electronic system of submission of application for import authorization is under development 
at the moment and it will be used in the relevant procedures of applying for non-automatic licenses for importing products subject to sanitary controls.  
Page 69, paragraph 3.103 
 "Law No. 9,716 of 26 November 1998 and Decree No. 6,759 of 5 February 2009 provide 
for the application of an export tax of 30%, which may be decreased or increased (up to 
150%) by the Foreign Trade Chamber (CAMEX) in order to address foreign exchange or trade policy objectives." ...  
47. What are the specific reasons for imposi ng an export tax of 9% on raw hide and 
tanned leather? Are such tax still being im posed? What is the tax rate? Does CAMEX 
have a mechanism to regularly review the a pplicable export tax items and tax rates? 
 
The export tax on wet blue leather was adopted in 2001 in a context where most leather importers apply tariff escalation to the leather chain. For the time being, there is no phasing-
out or plan to eliminate this tax. The tax rate is 9% on raw hide and tanned leather. The tax 
can be reviewed by the CAMEX.  Page 70, paragraph 3.111 
 
"Exports of a relatively large number of pr oducts require prior au thorization from the 
relevant government agencies, mainly for safety, health, securi ty, or environmental 
reasons". 
 48. Please list the names of export produc ts subject to prior authorization due to 
environmental reasons. 
 The list of products subject to prior authorizat ion for exports comprises more than a 1,000 tariff 
headings at the HS 8 digit level and may be found at 
"www.desenvolvimento/gov/br/a rquivos/dwnl_1228234625.xls". 
 Page 74, paragraph 3.130 
 
"in the EPZs. The beneficiaries are exempt from import licence requirements or any 
other federal agency authorization for import s and exports, except for those related to 
sanitary controls, national security, and environmental protection." 
 49. Please explain above-mentioned impo rt licenses related to environmental 
protection and provide a list if any. 
 
The matter is regulated by Law 11,508/2007.  
Page 75  
 50. Is there any export financing policy or  p l a n  s u c h  a s  e x p o r t  c r e d i t  s p e c i a l l y  
applicable to agricultural products?  Please  give brief introduction if there is any. 
 There is no export financing policy especially applicable to agricultural products.  
Page 79, paragraph 3.152 
 "Medium and long-term insurance is provided for … and coverage is ensured through the 
Export Guarantee Fund …" 
 51. Under above arrangement, will Export Guarantee Fund  (FGE) provide ultimate 
guarantee for said insurance or will the comp ensations of such insurance directly be 
paid out of the FGE? How is the balance of FGE? Does the Federal Government provide fund support to FGE?  WT/TPR/M/283/Add.1 
 
- 43 - 
 
FGE is a public fund, composed by Brazilian tr easury bonds. The compensations of the Export 
Credit Insurance are paid directly out of FGE.  52. As a private institution, does SBCE cove r said risks with its own fund? If a short 
term export credit insurance covers commerc ial risks and political risks simultaneously, 
how will SBCE and FGE bear the risks and share the insurance premiums and costs? 
 
SBCE provides short term export credit insurance with its own funds. With regard to coverage with 
terms longer than two years, SBCE acts only as a service provider specially hired by the Ministry of 
Finance to provide advisory services in the assessment and running of the export credit insurance operations, based on the FGE. Those are two different businesses.. FGE doesn't provide political 
risk coverage in short terms operations whereas SBCE provides the commercial risk coverage with 
its own funds.  
Page 79, paragraph 3.154 
 "Premiums are calculated on a case-by-ca se basis, … and the debtors financial 
standing …" 
 What ways or forms does SBCE adopt to eval uate the national risks of a country? What 
special provisions or standards does SBCE provide for in respect of the influence of 
national risks on insurance premiums? 
 A l t h o u g h  B r a z i l  i s  n e i t h e r  a  m e m b e r  o f  t h e  O E C D  n o r  p a r t  o f  t h e  O E C D ' s  E x p o r t  C r e d i t s  
Arrangement, the pricing of the Export Credit Insurance follows the guidelines and parameters of 
the Arrangement.   
Page 79, paragraph 3.155 
 "As part of the Plano Brasil Maior, … no fu rther measures had been taken to establish 
the ABGF." 
 
54. Does ABGF, which is approved by Decree No. 12712 to establish operational funds and provide guarantee, provide guarantee or  insurance independently? What is its 
relationship with foregoing SBCE and FGE? 
 A B G F  w i l l  p r o v i d e  o n l y  c r e d i t  g u a r a n t e e s  w i t h  i t s  o w n  f u n d s .  A B G F  w i l l  s u b s t i t u t e  S B C E  a s  t h e  
company hired by the Ministry of Finance for th e advisory service in the FGE Export Credit 
Insurance operations.  Page 81, paragraph 3.161 
 
"Brazil's competition regime was overhauled  by Law No. 12,529 of 30 November 2011, 
which entered into force on 29 May 2012.  The main changes comprise significant 
institutional restructuring, a switch from ex post to ex ante control of concentrations 
(mergers and acquisitions), and amendments regarding the scope of prohibited conduct 
and sanctions, as well as staff and budget increases." 
 
55. Please further elaborate the amendmen ts made to the scope of infractions. 
 Law No. 12529 does not establish new criteria for anti-competitive conducts. It is important to 
highlight that the new legislation brought signific ant changes to the structure of the governmental 
agencies charged with competition enforcement in Brazil. The new Law extracts the participation of former agents in merger and anticompetitive conducts enforcement, there is now a single agency 
in charge of this task in Brazil: the Brazilian Ad ministrative Council for Economic Defense – CADE – 
is the center of the Brazilian Competition Policy System. CADE is in charge of all competition enforcement matters, including investigations of anticompetitive practices and merger review. The 
structure within CADE, however, was significantly changed. CADE is now divided into two basic 
units: the General-Superintendence and the Admini strative Tribunal. The General-Superintendence 
is responsible for investigating anticompetitive conducts (which includes search warrants and negotiation of leniency agreements) and for reviewing the merger filings. It is headed by a single 
Superintendent. The Tribunal, which is composed by a council of six Commissioners and CADE's WT/TPR/M/283/Add.1 
 
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President, renders final decisions regarding the imposition of sanctions against anticompetitive 
practices and remedies or rejections of anticompetitive mergers.  The new law established the previous analysis of mergers, this tool increased the speed of CADE's 
procedures. Under the rules of the Law 12.529/11, 250 operations were approved in an average 
period of 25 days. In 2011, the year before the en try into force of the new law, the average time 
was 154 days.  Another change was the establishment of fast track decisions that allow to General 
Superintendence decide on simpler cases on competitive point of view, hence, 227 of the 
250 operations approved were decided by fast track in an average period of 20 days. As the former System, the new Law maintained the agency 's independence and transparency. All opinions 
and decisions are publicized (through the Official  Journal and CADE's website) and the Tribunal's 
trials are open to public view. The new legislatio n also conveyed a staff and budget increase and 
newer and bigger facilities. All was done to adapt to a needed expansion of the Brazilian cartel and unilateral conducts enforcement and merger analyses efforts.  
 
Page 83, paragraph 3.169  
"The fines for infractions committed by comp anies have also been modified; formerly 
ranging from 1% to 30% of gross turnover in the last fiscal year, they are currently set 
at 0.1% to 20% of gross turnover …"  
56. Please further explain the backgrou d and reason(s) for such modification. 
 The fining policy is applicable to the company as a private person and to the companies' executive 
members. The new fines imposed for anticompetitive transactions range between 0.1 and 20% of 
the company's gross turnover covering the financial year preceding the beginning of the authority's investigations.  The previous law provid ed for a fining range of 1 to 30% of the gross 
revenue. The executive members of the company are liable to a fine ranging from 0.1 to 20% of 
the fine imposed to their company. These rules are already being used.  Reducing the fine is adequate to mitigate the severity of fines impo sed on managers. That was one of the motivations 
behind the reduction of the minimum and ma ximum percentage of the fines imposed on 
companies and managers that hampered competition (the percentage went from 1% - 30% to 
0,1% - 20% of the gross turnover of the latest fiscal year).   
Page 103, paragraph 3.246 
 As of September 2012, the Government had i ssued at least eight decrees establishing 
preference margins for certain national produc ts in tendering procedures (Table 3.22). 
The measures fix margins ranging from 8% to 25%, and cover goods including textiles, 
apparel, footwear, backhoe loaders, motor graders, and pharmaceutical and medical 
products … 
 
Page 103, paragraph 3.247  
In principle, the above decrees apply only to procurement contracts established under 
the federal administration. However, stat e and municipal governments may also adopt 
the preference margins set by the Federal Go vernment. The federal authorities indicated 
that they were not aware of any such case … 
 57. In principle, the practice of Brazilian st ate and municipal governments' adoption of 
the preference margins set by the Fede ral Government for domestic goods in 
government procurement does not comply wi th relevant provisions. As the Brazilian 
Federal Government is aware of this problem,  what measures will be taken in future to 
prevent local government from abusing the federal regulations in government 
procurement? 
 In principle, the practice of Brazilian State and Municipal governments are in compliance with 
provisions set by the Federal Government in relation to preference margins introduced for 
domestic goods in government procurement. Furthermore, once Brazil adopts a Federal Constitution, local governments have autonomy and procurement is decentralized, so that any abuse of regulations must be reported to State an d Municipal Courts of Accounts, the institutions 
that have authority to take any measure needed.  WT/TPR/M/283/Add.1 
 
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Page 106, paragraph 3.261 
 "In the context of this review, the authorities noted that Brazil and the World Intellectual Property Organization (WIPO) have an ongoing "country study" which 
analyses the relationship between intellectua l property protection and various aspects 
of economic performance. The study focuses on domestic innovation, the international 
and national diffusion of knowledge, and inst itutional features of the IP system and its 
economic implications. The project is bein g implemented by the Brazilian Institute of 
Applied Economic Research (IPEA) and the WIPO Office  of the Chief Economist." 
 58. China believes the study is quite meanin gful, and would like to learn the specific 
progress of such a study. Has there been any corresponding study results?  How can 
such results be obtained by the parties interested in the study? 
 
The preliminary results of the study are available in document CDIP/11/INF_3, which may be 
accessed at the web-site of WIPO's Committee on Development and Intellectual Property. The final 
report is expected to be published by the end of 2013. 
 
Page 109, paragraph 3.268  "Other fast-track actions include the introduction of a "Preliminary Opinion on 
Patentability" service, through which the INPI provides an informative report, issued by 
a patent examiner, with an opinion on the pa tentability of a patent application, giving 
the applicant a more expedited search and pr eliminary opinion compared with a regular 
application. This service is available for an y patent application where the INPI is the 
office of first filing. Also, INPI Resolut ion No. 191/2008 provides for the request of 
priority of examination of patent." 
 
59. Is there any quantity limit to such "pre liminary opinion on patentability" service?  
In which stage during the patent examinat ion procedure can the application for such 
service be submitted?  How much is such se rvice charged?  What is the average time 
duration from applying for such service to forming an opinion? 
 The preliminary opinion on patentability is temporarily unavailable since INPI is currently updating 
the applicable legal framework of the service. Th e envisioned new rules will not limit the quantity 
of applications that may request a preliminary opinion, but the limitation to applications where INPI is the office of first filing will be kept. The tax charged for the service is R$ 1.185,00 for 
regular applicants and R$ 475,00 for individuals, micro and small enterprises, universities and 
research institutions. Lastly, an average time duration is not currently available since the procedure is under review.  
4  Trade Policies By Sector 
 Page 120, paragraph 4.13 
 
60. How does Brazil government coordina te among different departments while 
making agricultural policies?  In particul ar, how to make overall coordination while 
relevant policy designs involve diff erent departments or stakeholders? 
 The current agriculture policy is the the result of  an evolving process that started more than two 
decades ago.  The general coordination is now we ll established, and the changes made year after 
year take into account the current situation and the demands of the sector. Brazil has experienced 
no difficulties to involve different depart ments or stakeholders in this process.  
 
Page 122, paragraphs 4.22, 4.23 
 61. Please explain the background reason for such change. 
 
The importance of public banks as providers of rural credit has grown mainly as a result of the 2008 financial crisis, which reduced the resources available for rural credit.   WT/TPR/M/283/Add.1 
 
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Page 125, paragraph 4.36 
 62. Please give a brief introduction to th e general condition and background reasons 
for Brazilian rural debts.  Is there any co rrelation between the debt problem and the 
existing policy? In addition to the measures mentioned in the report, is there any other 
solution? Does Brazil plan to make new polic y or modify the existing policy to prevent 
future debt problems? 
 
Brazilian rural debts are originated by losses inflic ted to debtors' economic activity and expected 
gains, caused by biological and climate deleteriou s events, such as plagues, draughts and floods, 
among other risks. The debt issue is mana ged by PROAGRO, rural insurance and hedge 
operations. Although Brazilian regulators are permanently studying ways to perfection those 
mechanisms of financial protection for rural producers, there is no new policy under way.  
Page 135, paragraph 4.74 
 As of late November 2012, six companies ha d been accepted into the INOVAR-AUTO. The 
programme will be in force until 31 December 2017.  
 63. Up to the end of May, 2013, how many au tomobile enterprises have been accepted 
into the INOVAR-AUTO? And what is the ratio of foreign investment?  
 
There are 37 accredited enterprises under INO VAR-AUTO, with varying origin of capital. 
 
64. What policies will be applied to the enterprises not having obtained the final or 
provisional qualifications yet willing to inve st in Brazilian automobile industry since 
May 31, 2013? Please specify these policies. 
 
Non-accredited enterprises will not be able to benefit from the regime.  Page 157, paragraph 4.182 
 
The agency, which is administratively in dependent and financially autonomous, is 
responsible for implementating the nati onal telecommunications policy, licence 
regulation, overseeing incumbents' operatio ns, managing the electromagnetic spectrum, 
certifying telecommunications equipment, an d protecting consumers' rights ... ANATEL 
is responsible for approving mergers in the telecommunication sector  from a regulatory 
perspective, while competition issues are analysed by CADE. 
 65. As a telecommunication administration  agency, ANATEL is also responsible for 
approving mergers in the te lecommunication sector, while CADE is responsible for 
competition analysis. Could Brazil explain how these two agencies cooperate?  What are 
their respective responsibilities?  
Concerning the relationship between CADE and ANATEL, the Brazilian Government has the duty to 
adopt measures to promote competition and diversity of services, increment its supply and lead to quality standards consistent with the requirement of the users. Acts involving telecommunications 
service provider in the public or private sectors, aimed at any form of economic concentration, 
including merger of companies, incorporation of a company to exercise control of companies or 
any form of corporate grouping, are submitted to controls, procedures and conditions foreseen in 
the general rules for the protection of the econ omic order. Therefore, these acts must be 
submitted to CADE, as well as to ANATEL (each of them being responsible for analyzing the cases 
under its respective competences). Furthermore, CA DE has decided to play a more proactive role 
on the technical interaction with other Brazilian regulatory agencies and has committed itself to 
establishing agreements with them in the near future. 
 ANATEL is responsible for deciding only prior approval of merges and acquisitions in 
telecommunications. ANATEL has to provide to CADE any kind of sectoral information when 
required.  The final decision on merges in the telecommunication sector belongs to CADE, which also carries out intersectorial competition analysis.  
 WT/TPR/M/283/Add.1 
 
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Page 157, paragraph 4.183 
 In November 2010, ANATEL issued a regula tion enabling the supply of resale-based 
mobile telecommunications services thro ugh mobile virtual network operators … 
 
66. What supervision policies does Brazil a pply to MVNOs in the aspects of market 
access, interconnection and charge supervision?  
 
MVNOs in Brazil have the same treatment as regular MNOs in respect to charging and interconnection. However, resolution 600 approved in 2012 established regulatory asymmetries in the mobile interconnection relation between op erators. The relation between operators with 
significant market power (SMP) and operators without SMP states that there is payment only if 
traffic is unbalanced in over 80% in one given direction. All MVNOs are considered without SMP.  
67. What are the current measures taken by  Brazil to reduce international mobile 
roaming charges?  Will any bilateral in ternation mobile roaming agreement be 
concluded? 
 
Brazil had significant role in the last ITUs World Conference for International Telecommunications 2012 in respect to build the need for countries to reduce international roaming charges. The approved International Telecommunications Regulations (ITRs) have various provisions on this 
regards. Additionally there are ongoing discussi o n s  w i t h  c o u n t r i e s  t h a t  f o r m  M E R C O S U R  f o r  a  
multilateral agreement and with other countries in South America on a bilateral basis to reduce roaming charges.  
 
Page 162, paragraphs 4.207-4.210  
68. What are the provisions and procedur es of Brazil regarding granting business 
license to foreign airline companies?  It is important to clarify that cabotage rights (8th and 9th freedom traffic rights) are reserved to 
Brazilian carriers by law. In order to obtain the authorization to operate in Brazil (after Air Services 
Agreement (ASA) between the Parties) a foreign ai rline must appoint a legal representative in 
Brazil and produce the documentation required in conformity with the Brazilian Aeronautical Code 
– CBAer. (All documents must be legally translated into Portuguese). If the airline intends to 
operate air services to/from Brazil, and once it ha s the necessary authorization to operate, it has 
to apply for a specific authorization (operational authorization) which involves technical 
requirements. 
 69. What are the provisions and procedures of Brazil regarding approving code sharing 
between two nations' airline companies an d with third country airline companies? 
 
One of the airlines participating in the code sh are must submit the code sharing agreement for 
approval by National Civil Aviation Authority (ANAC). It is required that the Air Services Agreement 
between Brazil and the home countries of the airlines involved have a provision for code sharing 
and that the routes to be shared are established in the route Scheduled agreed between Brazil and 
those countries. 
 
70. What are the provisions and procedur es of Brazil regarding approving foreign 
airline companies to wet lease third country's  planes to operate airlines to Brazil? 
 
If the airline is already operating regular flights to Brazil, it is required to submit the following 
documentation to ANAC: wet lease contract, documentation of the leased aircraft (airworthiness certificate, certificate of aircraft registration, radio station license, noise certification and 
insurance) and the operations specifications issued by the Civil Aviation Authority of the foreign 
airline. The airline must apply to ANAC for amendm ent of the operations specifications through an 
application with this documentation and within the period of at least 30 days before the first flight. 
If the aircraft model is different from those regist ered in the electronic flight authorization system, 
the company must request an update. If the airline intends to operate non regular flights, it must 
submit the documentation for ANAC acceptation and request the flight authorization in the electronic system. 
 WT/TPR/M/283/Add.1 
 
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Page 165, paragraph 4.225 
 "Among the main legal instruments governing maritime transportation in Brazil are: Law 
No. 9,432 of 8 January 1997." 
 
71. Please provide the English versio n of Law No. 9432 of January 8, 1997. 
 
There is no official translation to English of Law No. 9.432/1997, which provides disciplines for the 
regulation of waterway transportation in Brazil.  Page 171, paragraph 4.262 
 
"Law No. 12,378 of 31 December 2010, which revoked all related previous legislation, governs the practice of architects and ur ban planners. The law created the Council of 
Architecture and Urbanism of Brazil (CAU/BR) at the national level, and the Councils of 
Architecture and Urbanism (CAU/UF) in each of the federative units, which are 
responsible for overseeing the exercise of th ese professions. Architects, urban planners, 
and engineer-architects who were enrolled und er the old registry system (CONFEA), are 
now registered with the CAUs under the sing le title of architect and urban planner." 
 72. Does Law No. 12378 set any new requirement for overseeing the practice of 
foreign architects in Brazil? 
 Law No. 12,378 essentially provides for the same requirements regarding the practice of 
architecture and urban planning as established under previous legislation. The new law created a 
specific Council related to the profession of architects and urban planners, apart from the Council of Engineering.  
 
WT/TPR/G/283  Page 14, paragraph 3.8 
 
"Most of the cases dealt with issues that are at the core of the multilateral trading system, such as: the protection of the environment (Brazil – Tyres)". 
 
73. Please explain the development of the case on retreaded types.  
ADPF 101, the case heard in the Brazilian Supreme Court ("Supremo Tribunal Federal") became 
res judicata in June 11th, 2012. By that decision, all imports of used or retreaded tyres, regardless of origin, are prohibited. Brazil fully complied with the WTO decision.  
Page 22, paragraphs 4.55, 4.56 
 "Patent offices in developed as  well as in developing countries face the challenge of 
coping with a continuous rise in the backlog of IP applications. This brings the necessity 
of reducing the time lapsed between the depo sit of the application and the final decision 
by the Offices while simultaneously ma intaining the quality of examination." 
 
74. Please introduce the measures taken by  Brazil to speed up the examination of 
patents while simultaneously mainta ining the quality of examination. 
 
The Brazilian Government has been heavily investing in the expansion and modernization of INPI 
in order to reduce the backlog, speed up the examination of patents and simultaneously maintain the quality of examination. These measures include: (i) a substantial increase in the number of 
patent examiners, estimated to reach 700 by 2015 (250 additional examiners already hired in 
2013, 385 approved in May), (ii) th e optimization of INPI's intern al procedures; ( iii) the use of 
electronic systems for filing patents; and (iv) the use of international cooperation programs such 
as PROSUR. Please refer to paragraph 4.30 to 4.32 of the Government's Report and section 
3.4.5.2.2.2 (paragraphs 3.269 and subsequent) of the Secretariat's Report for detailed information.  WT/TPR/M/283/Add.1 
 
- 49 - 
 
Page 22, paragraph 4.31 
 "The most relevant is the on-line applic ation system denominated 'e-patentes'." 
 
75. What languages are provided on the interface of the "e-patentes" on-line 
application system?  
The "e-patentes" interface is currently available only in Portuguese. 
 Page 23, paragraph 4.34  
"The work of CNCP has produced, in certain areas and sectors, a decrease in the volume 
of commerce of items which violate intellectual property rights. This is a by-product of 
enforcement action but also of a shift both  in consumer awareness of the negative 
effects of piracy in Brazil and in the bu siness strategies of companies which have 
acknowledged the economic nature of the pr oblem and decided to lower prices in order 
to reach out to lower-income classes." 
 
76. China appreciates Brazil's efforts in th ese aspects. Please introduce by which 
means has CNCP changed the opinions of customers so that they now support the products with intellectual property rights? 
 
CNCP, in cooperation with private stakeholders, introduced campaigns in movie theaters, magazines and on the internet to raise awareness of the importance of buying original products 
and of the possible losses and damages arising from the purchase of pirated and counterfeit 
products. Some of .these campaigns are available at CNCP's web-sit. 
 
77. By which means has CNCP made enterpri ses willingly lower the prices in order to 
provide products for lower-income classes?  While Brazil is a market-economy with prices de fined by companies according to their particular 
strategies, CNCP has discussed the matter with stakeholders from the private sector that 
participate in the meetings of the Council, which includes representatives from industrial and commercial associations. This is in line with the view that violations of IPRs are a complex subject 
with many causes and consequences and thus require a broader action by all actors in order to 
mitigate its damages, enforce the rights and effectively provide alternatives for access to legal products by customers. 
 
Page 25, paragraphs 4.55, 4.56  78. Could Brazil elaborate its plan to esta blish an international market for biofuels? 
How does Brazil consider the influence caused by the development of biofuels to global 
food security?  
The main aspect to create an international market for biofuels is to remove the barriers to trade. 
Creating an technical specification world wide recognized and to remove multiples certifications schemes. We are working in a ISO Task force to create an standard that could be used by all 
countries. 
 How does Brazil consider the influence caused by the development of biofuels to global 
food security? 
 
Actually Brazil uses 1% of its whole territory with sugarcane, and about 50% is used to produce ethanol enough to fuel 40% of brazilian light ve hicles. There is availability of land and the 
production of biofuels can generate wealth in the countryside helping the population to have 
access to comercial food.  
By using good pratices and technology it is possi ble to expand biofuels and food together. Since 
the 70's when Brazil started to invest in ethano l, this helped the country to expand the sugar 
production more than 5X. Using the rotation period, some others cultures like peanuts have rised significantly in the country. 
 WT/TPR/M/283/Add.1 
 
- 50 - 
 
Regarding biodiesel, Brazil is a very large producer of soya. This grain is mainly used to produce 
food for chickens, pigs etc. The soya oil is a by-product that was produced in excess of the quantities the brazilian market could use in the past. The biodiesel is mainly produced using this surplus of production. The same occurs with cow fat. In the past this was a environmetal problem, 
because a lot of slaughterhouses used to dispose of it. Now we are using animal fat to produce 
biodiesel.  
Biofuel may help generating income in a descentralized way and may help disseminating good 
agricultural practices an technologies. Increasing personal income and developing better technologies and distributions scheemes will foster  food security.  
Page 26, paragraph 4.63 
 Hence, SAC/PR is now responsible for, inter alia, formulating policies and strategic plans 
for the development of the civil aviation se ctor, overseeing plans to open up airport 
investment to private companies, approvin g concessions to build new airports and 
terminals, and delegating to the States, Federal District and municipalities the 
management, operation, and main tenance of public airfields. 
 79. Please elaborate the Brazilian airport admi nistration regime, such as the role and 
functions of the government in administering the airports. 
 
The Brazilian regulatory framework classifies Braz ilian aerodromes as military or civil according to 
their primary use. However, military airports, which accounts for 28 cases, can be used by civil 
aircrafts and civil airports can be used by military aircraft. Around 4 thousand civil aerodromes are 
later classified into private or public, according also to their use, as opposed to their property. 
Private airports can be solely used by their owner or those directly authorized by him or her and it 
is forbidden any form of commercial exploration. The Brazilian Constitution establishes that the 
Federal Government is responsible for the administ ration, directly or indirectly, of all airport 
infrastructure, regardless of their property. They must be available for all aircrafts with no restrictions to their property or nati onality, except for safety reasons. 
 
Furthermore, the regulatory framework determ ines that more than 700 Brazilian public 
aerodromes will be built, maintained and mana ged by: the Federal Government, dedicated public 
companies, federal states or municipalities, or privately through concession process or 
authorization. For direct management, the Federal Government uses its Air Force to run 23 specific civil airports that are predominantly used by civil aircrafts but can have a strong military 
importance, such as those located close to the country borders. Furthermore, Infraero is a state-
owned company dedicated to airport infrastructu re and it manages nowadays 63 airports, which 
includes most of those located in states capital cities.  
As mentioned before, this attribution can be delegated by the Federal Government to federal 
states or municipalities, that end up with the final administration of the bulk of Brazilian public aerodromes. Recently, the Federal Government has co nceded its first federal airports and three of 
the most important ones are under a concession contract with private concessionaires (São 
Paulo/Guarulhos, São Paulo/Viracopos and Brasília).  
There is another contract for an airport under construction and a process underway for two other 
(Rio de Janeiro/Galeão and Belo Horizonte/Confins).Finally, at the end of 2012, a new form of administration was regulated. Public airports  can now be managed by private owners with 
commercial explorations, limited to general aviation use and under special conditions, such as 
previous legal right of area usage by the ma nager and no discrimination of aircrafts use. 
 80. Does the Brazilian government have re levant policies for the development and 
operation of airports? If so, please illustra te the sources of fund, way of support and 
standards, etc.  
Yes, the Brazilian government does have policies for the development of airports. In 2011, the 
Secretariat of Civil Aviation developed a methodolog y for the identification of cities which should 
have investments in airport infrastructure. Aiming at integrating the country through the air transport, a Regional Aviation Program was anno unced in December 2012 that defines a set of 
priorities for investments in a 270 airports network. The program aims at investing US$ 3.5 billion WT/TPR/M/283/Add.1 
 
- 51 - 
 
to adapt and expand existing airports and build new airports to adjust the capacity of the airport 
system to the demand evolution. The regional ai rport network selection considered many factors, 
such as: social and economic indicators, tourism and accessibility.  Investments will be funded by FNAC, the National Civil Aviation Fund, sourced with  an additional charge of airport fees and the 
resources provided by the concessions of the major airports. 
 The granting of the operation of major airports to private investors will expand and enhance 
Brazilian airport infrastructure, efficiency and quality of service. During 2011 and 2012, 4 major 
airports were granted to private sector: Brasília, São Paulo (Guarulhos), Campinas (Viracopos) and Natal (São Gonçalo do Amarante). In 2013, two new concessions auctions will occur: Rio de Janeiro (Galeão) and Belo Horizonte (Confins) airports. Other concessions will be studied. 
 
Page 26, paragraph 4.66  
At the closure of the 20th Ordinary Assemb ly of the Latin American Civil Aviation 
Commission (LACAC), in Brasilia, 8 Novemb er 2012, Brazil acceded to the LACAC 
Multilateral Open Skies Agreement. 
 
81. Please provide more details on LACA C Multilateral Open Skies Agreement. 
 This Agreement was open for signature on 5th November 2010 for the 22 LACAC Member States 
and was already signed by Brazil, Chile, Colombia, Guatemala, Honduras, Panama, Paraguay, 
Dominican Republic and Uruguay. The Agreement contemplates free Pricing, free Capacity, Code 
Sharing with third countries airlines, open Route Scheduled and open Traffic Rights, including all 
the nine freedoms of the air, but allowing reservat ions. So far most of the signatory countries have 
reserved 7th, 8th and 9th freedoms only.  
82. Please further explain the policy of Brazil for access to the international air 
transportation market. Is there any elem ent of liberalization in the eleven air 
transportation agreements reached or re-n egotiated in 2012? If so, to what extent? 
 
Brazil has significantly changed its policies related to international air services. Until 2007, the 
position adopted in air services agreements negotiations was mainly conservative. In July, 2007, the Brazilian Civil Aviation Council (CONAC) published a Resolution concerning civil aviation policy. 
This resolution aimed at promoting the expansion of air transport through the negotiation of more 
liberalizing air services agreements. Since then , the Brazilian National Civil Aviation Agency 
(ANAC) has concluded open skies agreements with most of the countries with which it has 
negotiated. Among the liberalizing positions adopted by Brazil, the following can be mentioned: 
defense of the criteria of principal place of busi ness and regulatory control for the designation of 
airlines, free capacity, code share agreements with  third countries airlines, free determination of 
tariffs, open route schedule and traffic rights up to sixth freedom. During 2012 Brazil has 
concluded 12 negotiations of which only one has limited capacity, and three require further 
agreement on the exercise of 5th freedom traffic rights. It is important to point out that cabotage rights (8th and 9th freedoms) are reserved by domestic law to Brazilian carriers. Regarding 
7
th freedom traffic rights, there is a lack of international literature to subsidize studies necessary 
for supporting this move in the Brazilian policy.  
83. Does Brazil allow or encourage the in -depth cooperation between two nations' 
airline companies and with third country's air line companies, such as code sharing, so as 
to promote direct flight?  
Yes, Brazil encourages such cooperation. As a matter of fact, Brazil has proposed the inclusion of a 
provision for third countries' airlines code sharing in all the ASA negotiations for the last five years. This provision was not included in just a few of those agreements due to restrictive policies by the 
other Party.  
 Page 28, paragraph 4.79 
 
"The National Broad Band Plan (PNBL) was instituted by Decree 7.175 of 13 May 2010, 
with the aim of boosting access to broadband  services across the country and bridging 
the digital divide, in collaboration with private operators. The plan consists of a series of 
actions in several dimensions, including spectrum auctions to increase mobile WT/TPR/M/283/Add.1 
 
- 52 - 
 
broadband coverage (4G and telecommunication s services for voice and data in rural 
and remote regions), the implementation of a national transmission network (backhaul 
and backbone), Agreements for the expansio n of commercial broadband offers at low 
prices and regulatory measures aimed at promoting greater competition and network 
expansion." 
 84. What are the development obejctives of Brazil's National Broad Band Plan?  What 
are the relevant guarantee measures? 
 The National Broadband Plan intends to universaliz e access to high-speed internet, reaching areas 
that would otherwise not be commercially viable. In this sense, the government is fostering 
programs that take the regional specificities into account and aim towards universal purveyance of 
the service.  
The specific objectives of the plan are as follows:  
 (i) Increase access to broadband Internet connection services; 
(ii) Accelerate social and economic development; 
(iii) Promote digital inclusion; (iv) Reduce social and regional inequalities; (v) Promote the generation of jobs and income; 
(vi) Broaden E-government services and facilitate the use of governmental services by 
 citizens; (vii) Promote capacity-building for the use of Information Technology; and 
(viii) Increase Brazilian technological autonomy and competitiveness. 
 
The major challenge of the PNBL is to translate these objectives into concrete actions that are able 
to promote, directly or indirectly, the developmen t of national infrastructure and a greater supply 
of telecommunication services at lower prices.  For this reason, in the first phase of the Nation al Broadband Plan, several necessary actions were 
identified, relating to different dimensions of the plan, such as regulatory actions, fiscal measures, 
and actions related to infrastructure deployment. In order to guarantee that commitments made under the PNBL are fulfilled, the National Telecommunications Agency – Anatel has a wide array of 
sanctioning and enforcement powers. For example, telecom operators can be fined if they do not 
accomplish coverage expansion targets defined in spectrum auctions. The Program is currently under the responsibility of the Ministry of Communications, who is in charge of supervising its 
implementation and interacting with governmental bodies and private sector in order to promote 
the achievement of the specified objectives.  A set of regulatory actions aim at increasing competitiveness in the telecommunication sector, 
expanding access to services, encouraging entrepreneurship and innovative actions, lowering 
prices to end-users and increasing availability of infrastrucuture for broadband provision. Some 
actions have already been taken by the government and should be highlighted: 
 
 - Spectrum Auctions to increase mobile broadband coverage: in June 2012, an auction 
was held for radio spectrum in the 450 Mhz and 2.5 Ghz bands for commercial mobile 
services, aiming to grant the broadest access to new services, such as 4G mobile 
technologies, and to provide adequate infrastructure for international events to be hosted in the country in coming years, while intensifying the penetration of telecommunications services for voice and data in rural and remote regions. Studies 
are currently being held in order to prepare for the auction of the 700 MHz band (the 
Brazilian digital dividend) for deployment of mobile broadband networks. 
 
 - Agreements for the expansion of commercial broadband offers at low prices: the 
Ministry of Communications, Anatel and telecommunications companies (CTBC, OI, Sercomtel and Telefonica) have signed agre ements to offer broadband connections of 
1 Mbps for R$ 35,00 per month. Furthermore,  prices and conditions were established 
to offer wholesale capacity to small providers and municipalities. 
  - Regulatory measures are being taken in order to promote greater competition and 
network expansion. One example is the Gene ral Plan of Competition Goals, approved WT/TPR/M/283/Add.1 
 
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by Anatel in October 2012, creating asymmetric obligations for Groups defined as 
holding Significant Market Power (SMP) in identified relevant markets. 
 Some other important legal and regulatory actions are under way such as: 
 
 - The approval of a General Law for the Deployment of Telecommunication 
Infrastructure. The Brazilian Congress is discussing a bill of law which aims at 
establishing general rules to the deployment of telecommunication infrastructure. This 
law aims at streamlining the process for deployment of base stations (e.g., NodeB) in order to allow rapid expansion of 3G and 4G coverage and the improvement in the quality of these services. 
 
 - New rules for joint deployment and installation of infrastructures, sharing of 
infrastructures and rights of way. The govern ment is working on a draft proposal of a 
Presidential Decree to establish new rules for joint deployment and installation of 
infrastructures determining the installation of telecommunication networks at the time of completion of major infrastructure works (roads, railways, transmission networks 
for electricity, among others), as well as ensuring the sharing of infrastructure 
between the providers of telecommunication  services and between themselves and 
other utility companies. 
 
It is also important to mention the efforts underway to promote the establishment of a national 
transmission network (backhaul and backbone) that makes use of optical fibers:  
 - The aim is to improve the infrastructure for broadband in Brazil and disseminate the 
offer of service in currently underserved areas. For this purpose, the Brazilian state-owned telecommunications company (Telebrás) was reactivated by 
Decree 7.175/2010 in order to create a neutral national telecommunications network, 
with high capacity and more than 30.000 kilo meters of optical fibers. This network will 
be responsible for carrying low-cost traffic flow capacity to local broadband providers, committed to supply the final consumer with 1 Mbps to 35 reais per month. 
 
 - The efforts to increase transmission capacity are complemented by the regional 
initiative of creating a South American optical ring. This is an innovative project that 
was born under the Infrastructure Council of UNASUR, with the intention of promoting 
economic benefits and cultural integration of the member countries. 
 
 - Also the deployment of submarine cables  is part of the strategy to develop the 
country´s potential to be a hub of worldwide digital content in the coming years. 
 Page 29, paragraph 5.4 
 
As a result of the progressive expansion of "S imples Nacional", as well as the support of 
SEBRAE (Brazilian Service of  Support for Micro and Sma ll Enterprises), more than 
2.8 million micro and small enterprises (M SEs) and over 1.6 million individual 
entrepreneurs (EI) are expected to join the formal economy by 2015. 
 
85. Please explain the main content of "S imples Nacional" as well as the specific 
operation mechanism of SEBRAE.  The "Simples Nacional" is a system of shared ta x collection, charging and enforcement of duties 
applicable to Micro and Small Enterprises, provided for in Complementary Law No. 123 of 
December 14, 2006.   
It covers participation in all federal entities (Federal, States, Federal District and Municipalities). It 
is managed by a Steering Committee composed of eight members: four from the Internal Revenue Service of Brazil (RFB), two from the states and the Federal District and two from Municipalities.  
 
For entry into the "Simples Nacional" it is necessary to comply with the following conditions:   
- fall within the definition of micro or small business;  
- meet the requirements of legislation, and formalize the option for "Simples Nacional".  WT/TPR/M/283/Add.1 
 
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Main features of the Scheme of "Simples Nacional":  
 
- optionality;  - irrevocability for the entire calendar year;  
- it covers the following taxes: corporate income tax, social contribution taxes, PIS / 
Pasep, COFINS, IPI, ICMS, ISS and Contribution to Social Security intended for to Social Security in charge of the legal entity (CPP);  
- taxes covered by a single document collection - DAS;  
- availability for Micro and Small Enterpri ses of electronic system to perform the 
calculation of the monthly due, genera tion of DAS, and from January 2012 for 
recording tax credit;  
- statement presentation of unique and simpli fied tax and socioeconomic information;  
- deadline for payment of DAS until the 20th of the month following that in which there 
have been earned gross revenues;  
- possibility for States to adopt sublimit "Small Enterprises" according to their share in 
the GDP. Establishments located in those States whose gross revenue extrapolate its sublimit should collect the ICMS and ISS directly to the state or the municipality. 
 
Sebrae has been acting since 1972 to enable the sustainability and competitiveness of micro and 
small businesses in Brazil. The basic tool in this challenge is information, critical to business growth. All actions, projects, products and services of SEBRAE take into consideration that only the 
culture of learning and use of knowledge can ensu re competitive, efficient and modern business 
administration.  
In order to provide quality information continuously, Sebrae uses various strategies, such as 
courses, consulting, training, lectures, seminars, events and publications, among others. The creation and development of new channels and formats of communication that enhance the 
dissemination of knowledge is a strategic priority . Integrated with conventional methods and new 
technologies, Sebrae creates a web of knowledge accessible to micro and small enterprises.  Sebrae provides an individual or collective service, through visits or remotely. The objective is to 
provide top quality and continuous service, enabling a long lasting and assisted relationship 
between and Sebrae and the entrepreneur.  
Sebrae holds that creativity in developing new solutions and breaking paradigms are fundamental 
to the viability and sustainability of its mission. Ther efore, it also operates in four areas considered 
key for the growth of micro and small enterprises. They are: 
 
- Articulation of public policies that create a more favorable an institutional 
environment; 
- Access to new markets; 
- Access to technology and innovation; and 
- Facilitating and expanding access to financial services. 
 
86. What are the operational effects of Simples Nacional and SEBRAE?  Could the 
Brazilian government share its successf ul experience in this regard? 
 
For more information, please refer to: 
 
http://www.sebrae.com.br/ http://www8.receita.fazenda.g ov.br/SimplesNacional/ 
 
Page 29, paragraph 4.33  
The National Council to Combat Piracy and Cr imes against Intellect ual Property (CNCP) 
was established in 2004 following the conclu sion of a Parliamentary Commission that 
recommended actions to strengthen coordina tion among government agencies involved 
in the fight against piracy and counterfeitin g. The Council is responsible for the design 
and implementation of the National Plan to  Combat Piracy and Other Crimes against 
Intellectual Property and comprises represen tatives from both the Government and the 
private sector, including right holders and the civil society. By bringing together private 
entities and Government repres entatives, with equal rights to voice and vote, in a joint WT/TPR/M/283/Add.1 
 
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council, the Brazilian initiative is unique an d innovative. The underlying assumption of 
the Council is that the combat against IPR violations involves measures to constrain the supply of such goods – through repressive ac tivities – as well as those measures to 
address the demand of such goods – by educ ative and economic activities. Thus, in its 
activities, CNCP has a three-pronged approa ch: repressive, economic and educative. 
 87. Would the Delegation of Brazil please gi ve more details on the measures that had 
been taken by the CNCP to constrain the supply of pirated goods and to address the 
demand of such goods?   The CNCP has been disseminating the respect for IP rights throughout the Brazilian society, 
providing information on the benefits of buying original products and on the damages caused by 
the violation of these rights. The Council also coor dinates the activities of representatives from the 
private sector and from the public institutions re sponsible for the enforcement of IPRs with the aim 
to create synergies and partnerships that result in more efficient and effective actions to constrain 
the supply of pirated and counterfeit goods. Th e growing number of arrests and apprehensions 
illustrate the effectiveness of the activities of the Brazilian Government in the matter. 
 
OTHER QUESTIONS  88. It is reported that the period of im port registration for monosodium glutamate, 
lysine, threonine products in Brazil is excessi vely lengthy. A foreign exporter must first 
help each importer go through the registrati on procedures for products before entering 
the Brazilian market. In handling the registrati on procedure, the foreign exporter should 
prepare the relevant product documents prov ided by the product supplier and take the 
certificate for free sale issued by the co untry of origin to Brazilian embassy for 
authentication. The product cannot be export ed until all the documents are furnished.  
The whole process lasts for 3 – 6 months, wh ich consumes lots of energy of foreign 
exporter.  Does Brazil have any plan to in crease the efficiency in this respect? 
 Initially, it should be clarified that most categories of foods do not require registration to be 
marketed in Brazil. The list of food categories th at require registration and are exempt from this 
procedure can be found in Resolution RDC No. 27/2010.  For food categories that do not require registration, the importer must inform the local sa nitary body that the food will be imported and 
must guarantee that the product follows the Brazili an sanitary legislation. The procedures to be 
followed can be found in Resolutions 22 and 23/2000 and Resolution 81/2008. This is the case for food additives, such as monosodium glutamate. It is not clear what is meant by lysine and 
threonine products. In Brazil, aminoacids supplements are regulated as drugs and should follow 
different procedures.  89. It is learned that, in accordance with th e provisions of Brazilian law, if a container 
remains unclaimed 90 days af ter it reaches the port, the goods in it will be sold by 
auction or donated by Brazilian federal tax bure au, or destroyed if they are found to be 
counterfeit or shoddy products.  Some Braz ilian importers neither pick up goods nor 
make payment intentionally after the goods reach the port, but obtain them at a low 
price through auction 90 days later.  It is the importer who is responsible for handling 
all the customs formalities for importin g goods. However, the above-mentioned 
provisions of Brazilian law leave loopholes fo r ill-intentioned importers to make use of.  
As a result, large numbers of foreign exporter s suffered from great losses. Please clarify 
the above-mentioned problem. Is there any plan to amend the law and adjust and restrict such practice? 
 
Since we are not aware of this situation, we are unable to clarify it. If China could provide Brazil with some real cases it might be helpful to determine the best options to address this 
circumstance. As mentioned above, Brazilian customs has already started process-mapping, 
reviewing and re-engineering its customs operations and this issue may be consider in the forthcoming regulation 
 
90. Brazil promulgated the Automobile Innovation Law (Act No. 7819) on October 3, 2012.  Yet the implementation deta ils are not clear, and the approval cannot 
be obtained in time after the application for reduction or exemption of taxes on some WT/TPR/M/283/Add.1 
 
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industrial products is submitted.  Please specify the administration and implementation 
procedure of this Law so as to increase  the transparency of its enforcement. 
 Decree 7819/2012, as ammended by Decree 8015/2013, provides for the regulatory steps of 
INOVAR-Auto.  
 91. Brazil had lowered interest rate for se veral times in 2012 to stimulate economic 
growth, but increased interest rate twice this ye ar as a result of the increasing inflation.  
How does Brazilian government strike a balance between controling inflation and 
boosting economic growth?  
The fundamental of the decisions of the Central Ba nk of Brazil can be accessed in the Monetary 
Policy Committee Minutes (http://www.bcb.gov.br/?MINUTES) and the quarterly inflation report (http://www.bcb.gov.br/?inflareport) . Brazil drives the monetary policy within an inflation 
targeting regime and there are no goals on growth  rates of the GDP or exchange rate. Brazil's 
Central Bank has not changed interest rates due to the growth of the economy, but in response to 
the international deflationary scenario. By mid-2011, the deterioration of the international 
environment was perceived early by the central ba nk which started loosening monetary policy to 
allow for inflation convergence to take place in a less costly way in terms of precluded growth. For this reason, the lowering of Selic rate (short-ter m interest rate) during 2012 cannot be understood 
as a measure envisaged to stimulate economic growth, but as an answer of the monetary 
authority to deflationary pressures coming from abroad, of low demand and high offer. During 
2013, the SELIC reversed the previous tendency and was increased to calibrate internal demand and curb an inflationary peak, basically on services and food prices. For this it shall be concluded 
that for the Brazilian government the goals of co ntrolling inflation and boosting economic growth 
are subject of different policies. In order to prom ote growth, Brazil adopts other policies such as 
countercyclical fiscal expansion, tax alleviations and an ambitious program of concessions and 
investments. 
 92. The Brazilian Government had once levi ed financial trading tax against massive 
cross-border capital flows.  Has the implementa tion of financial trading tax achieved its 
desired effect?  What measur es will Brazilian government ta ke if massive cross-border 
capital flows appear again?  
Brazil has been an active user of both moneta ry and macroprudential policies. Its experience 
during the post-crisis period illustrates well the complementary relationship between the two policies. Monetary policy was focused on ensuring price stability, and macroprudential instruments 
were used to contain the potential buildup of sy stemic risks from rapid credit growth. As these 
policies leaned against the business and financial cycle, synchronized during this period, the policy mix was appropriate to meet two objectives — price and financial stability — with two instruments.  
Moreover, national efforts to mitigate the spillover of excess global liquidity can be facilitated 
through greater international coordination. In this context the capital-exporting countries that issue reserve currencies should further enhance th eir macroeconomic policies in order to reduce 
overflows to minimize the indirect impact on developing economies. In the same way, the 
countries that have to deal with the effects of capital flows should have considerable flexibility to pursue actions tailored to their specific economic circumstances.  
 
93. Brazil witnessed a large trade defict in the year of 2013. Could the Brazilian 
Government explain the measures to be taken in this regard? 
 
The trade deficit in the first quarter of 2013 reflec ts the dynamism of the Brazilian economy. This 
is related to the growth of the economy, the stock of foreign direct investment is higher, which also contributes to overvalue the currency encouraging imports and makes exports less 
competitive in the international market. 
 94. What are the requirements for foreigners  to enter for the technical qualification 
exam in Brazil and to join the CNAI under the CFC? 
 In order to practice as a professional accountant in Brazil, an applicant must hold a university degree in accountancy, revalidated by a Brazilian university in case of degrees issued by foreign 
institutions, pass the CFC Sufficiency Exam, and regi ster with the CFC.  In addition to passing a WT/TPR/M/283/Add.1 
 
- 57 - 
 
technical qualifying exam and being registered with  CFC, a minimum of five years of experience in 
financial audits in Brazil is requir ed for registration with the CNAI. 
 95. After a foreigner passes the technical qu alifications exam in Brazil and joins the 
CNAI under the CFC, can he/she practice in  a Brazilian accounting frim and sign on an 
audit report if he/she has not obtained a permanent resident or citizen identity in 
Brazil? If not, what other conditions does he/s he need to satisfy? If  yes, can he/she be 
a partner of the accounting firm? 
 In addition to passing a technical qualifying exam and being registered with CFC, a minimum of five years of experience in financial audits in Br azil is required for registration with the CNAI. 
 
96. Please briefly introduce the development of air transportation of cargos in Brazil. 
 
The air transportation of cargos in Brazil has grown 45.4% between 2002 and 2011, going 
from 777.8 million to 1.131 billion tons in this pe riod. The international transportation of cargos 
from Brazil represented, on average, 63.6% of the total Brazilian annual cargo volume 
transported, in the same period. The main routes for international air cargo services from Brazil 
were to the United States (234 thousand tons in 2011), Germany (66 thousand tons); France (41 thousand tons), Argentina (35 thousand tons) an d Portugal (33 thousand tons). It is important 
to highlight that the transportation of air cargo between Brazil and some other countries has 
grown significantly during this period, such as: Luxemburg (1.534% between 2002 and 2011, 
going from 2 thousand tons to 33 thousand tons per year) and Colombia (379% of growth in the same period, going from 4.7 thousand tons to 22.4 thousand tons per year).  The volume of cargo 
transported from Brazil to the fifteen main countries of destination registered an average increase 
of 62.2% during the period under examination, with the exception of Chile that registered a 
reduction of 49% in the volume of cargo ex changed with Brazil, between 2002 and 2011. The 
main Brazilian airport for cargo is the International Airport of São Paulo/ Guarulhos (ICAO: SBGR; 
IATA: GRU) with 451 thousand tons transported in 2011. The second airport of Brazil for cargo is Campinas / Viracopos (ICAO: SBKP; IATA: VCP) with 259 thousand tons transported in 2011, followed by the International Airport of Manaus (ICAO: SBEG; IATA: MAO), with 147 thousand 
tons transported in 2011. 
 97. Are there any policy support for air tran sportation of cargos by the governement? 
If yes, please illustrate the sources of f und, ways of support and standards, etc. 
 No. There is no policy support for air transportation of cargos in Brazil. 
 
98. Please describe the airspace administrati on regime and the operation regime of air 
traffic control in Brazil.  
Brazil's air traffic management, that integrates civilian and military activities, and related to the 
safety and efficiency of the Brazilian airspace control is under the responsibility of the Department of Airspace Control (DECEA), subordinated to th e Ministry of Defense and to the Aeronautical 
C o m m a n d  ( C O M A E R ) .  A s  t h e  m a i n  o r g a n i z a t i o n  o f  t h e  B r a z i l i a n  A i r s p a c e  C o n t r o l  S y s t e m  
(SISCEAB), DECEA plans and approves the deploy ment of equipments and systems and oversees 
technical and operational organizations responsible for activities related to SISCEAB. To carry out 
those multiple activities, the Brazilian sovereign airspace, overlooking the Atlantic Ocean portion, 
is structured in five Flight Information Regions (FIR). Those FIR are controlled by four Integrated Air Traffic Control and Air Defense Center (CINDACTA) and its specialized organs, providing a safe and efficient flight to domestic and fore ign aircraft across the Brazilian airspace. 
 
Normative Instruction (IN) No. 1356 publis hed by The Federal Revenue Brazil on 
May 3rd 2012 Carrier is obliged to discharge ca rgoes to Brazilian port authority or to the 
terminal operator and thereafter has no cont rol over release of the cargoes, and cargo 
may be released by the local authorities and other entities without presentation of original bill of lading.  
 
99. Has the Brazilian customs started implem enting the policy on goods arrived in 
Brazil? Is the policy applicable to contracts with outstanding L/C, D/P or D/A payment? 
Is the understanding of "cargo may be clea red and leased by the local authorities and 
other entities without presentation of orig inal bill of lading" in the policy correct? WT/TPR/M/283/Add.1 
 
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We believe there is a misunderstanding on this issue. First of all, a bill of lading is an obligatory 
support document for customs clearance, as mentioned in Article 553 of the Decree No. 6,759/2009 and in Article 18 of the Normative Instruction No. 680/2006.  
On this issue, the Normative Instruction No. 1, 356/2013 established the possibility of electronic 
submission of the bill of lading for custom s clearance, instead of paper documentation, 
consequently, the importer does not need to produce it to the customs authorities. WT/TPR/M/283/Add.1 
 
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CHINESE TAIPEI 
WT/TPR/S/283 
 2  Trade Policy Regime: Framework And Objectives 
2.4  Foreign Investment Regime 
Page 35, paragraph 2.19  
Investment in all forms must be registered with the Central Bank through the Electronic 
Statement of Registration - Foreign Direct Investment Module (RDE-IED), on the Central Bank's Information System (SISBACEN). Fore ign capital must be registered within 
30 days of the date it enters Brazil or afte r customs clearance in the case of goods. 
Remittances abroad, reinvestment of prof its, dividends, and other resources, and 
repatriation of invested capital must also be  registered with the Central Bank. Foreign 
capital does not require Central Bank auth orization provided it is registered. The 
invested sum must be registered in the currency in which the investment was made. 
 1. Is the Central Bank responsible for the management and approval  of foreign direct 
investment in Brazil?  
 In general, there is no pre-approval process for investing in Brazil. The Central Bank of Brazil is responsible for the registration of the foreign direct investment. 
 
2. Which agencies can offer assistance on matters concerning foreign business 
investment in Brazil? 
 
There are 3 main government entities that work in cooperation offer support to foreign investors in 
Brazil: 
 
a) Brazilian Trade and Investment Pr omotion Agency (Apex-Brasil)  is an 
independent government agency aimed at promoting Brazilian products and services 
abroad and attracting foreign investments to strategic sectors of the Brazilian 
economy. It provides free of charge suppo rt through market intelligence, assessment 
of local attractiveness to foreign investors, guidance on legal and regulatory 
framework, seminars and provision of strategic data about Brazil. Website: 
www.apexbrasil.com.br  
 
b) RENAI  is a National Investment Information Network that provides entrepreneurs 
with investment opportunities in Brazil . It is supported by the Ministry of 
Development, Industry and Foreign Trade and is networked with state Departments of 
Industry and Trade as well as entrepreneurial trade associations. The network aims 
(i) to provide the necessary information investors need in their business decision-
making process; (ii) to promote and facilitate the investment process; and  (ii) to 
stimulate and aid Federal and state Departments to support foreign investments. To 
reach its aims, RENAI maintains a website that provides an extensive data bank of 
announced investment projects and investment opportunities across Brazil. It 
organizes workshops and seminars, and provides support for potential investors. 
RENAI´s team can also forward an investment proposal to all of the Brazilian states 
and other public entities. Those offices can help foreign investors concerning 
investment opportunities, legal framework and local incentives. Website: 
www.mdic.gov.br/renai   
 
Trade Promotion Sections (SECOMs)  are linked to the Department of Trade and Investment 
Promotion (DPR) at the Ministry of External Rela tions (MRE). These bureaus are present in over 
100 strategic points overseas, in Brazilian Embassies and Consulates around the world. They are in 
charge of gathering and disseminating data on business and investment opportunities. They also 
assist Brazilian exporting firms looking for new markets and help organize fairs, corporate missions 
and other events. Website:  www.brasilglobalnet.gov.br  
 WT/TPR/M/283/Add.1 
 
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Page 37, paragraph 2.29 
 As indicated in the Report, Brazil has sign ed 14 BITs, however none of these are in 
force, either because the Executive did not submit the agreement to Congress or 
because it withdrew the agreement before Co ngress had voted. The authorities note that 
concerns raised by Congress with respect to the BITs signed by Brazil included: (i) the preferential treatment accorded to foreign investors as a result of the BITs dispute 
settlement mechanisms;(ii) the broad defini tion of investment contained in the 
BITs;(iii) the requirement in the BITs for pr ompt payment of expr opriations in freely 
convertible currencies, which was consid ered incompatible with the Federal 
Constitution. 
 
3. If none of the BITs signed by Brazil are in force, which laws and regulations  
provide protection to fore ign investors in Brazil? 
 
The Brazilian Constitution grants the right to property in article 5, XXII. This provision is reaffirmed by the Civil Code in articles 1.228 to 1.388. Therefore, Brazil provides safe and 
predictable investment regulatory conditions for foreign investors. 
 2.5  International Relations 2.5.2  Preferential agreements 
2.5.2.1  General features 
Page 39, paragraph 2.36  
Brazil is a founding member of the Southe rn Common Market (MERCOSUR), together 
with Argentina, Paraguay, and Uruguay. In  accordance with MERCOSUR document 
CMC/27-12, the Bolivarian Republic of Vene zuela was ratified as a full member of 
MERCOSUR in 2012. As part of MERCOSUR, Brazil has preferential trade agreements 
(Economic Complementarity Agreements) with  Chile, Bolivia, Mexico, Peru, Colombia, 
Ecuador, Venezuela, and Cuba. In the peri od under review, two further MERCOSUR 
agreements entered into force with India and Israel. In addition, Brazil has preferential 
agreements with Guyana and Suriname within the framework of the Latin American 
Integration Association. The scope of the di fferent preferential agreements varies 
widely. 
 
4. Most preferential trade agreements sign ed with MERCOSUR are with countries in 
Central and South America, and between 2008 and 2012 only two agreements entered 
into force. In light of the fact that most countries around the world are trying hard to 
sign FTAs with trade partners, what is Br azil's (and MERCOSUR's) strategy in this 
respect, and which countries (apart from the EU) will be its next targets for FTA negotiations? 
 
Mercosul and the European Union are in the process of negotiating a Free Trade Agreement. At the same time, Venezuela has joined the block and Bolivia and Ecuador are discussing 
their entrance. After the finalization of those processes, Mercosul will deliberate the next 
targets for FTA negotiations.  
3  Trade Policies And Practices By Measure 
3.1  Introduction Page 44, paragraph 3.2   
Besides customs tariffs, imports are subject to  a number of internal taxes, including the 
Tax on Industrial Products (IPI); Tax on th e Circulation of Goods and Services (ICMS); 
contributions to the social integration prog ramme (PIS) and to finance social security 
(COFINS); and Tax on Services (ISS). The app lication of these taxes may vary depending 
on the product type, the competent sub-federa l authority, and the importer's tax regime 
status, thus rendering Braz il's tax system complex.  
 
5. The structure of Brazil's internal tax re gime concerning the import of goods and 
foreign direct investment is very complicated . Does Brazil have any plans to simplify its 
internal tax system to facilitate trade and foreign direct investment? WT/TPR/M/283/Add.1 
 
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Brazilian Government is committed to continuously promote a better business climate for domestic 
and international investors by seeking to rationalize and to simplify tax obligations and reducing administrative and operational costs for taxpayers. 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).  
 3.2  Measures Directly Affecting Imports 
3.2.9  Sanitary and phytosanitary measures
 
Page 66, paragraph 3.92 
 Plants and plant products commercialized in Br azil, including imports, must comply with 
quality-related characteristics (e.g. size, pu rity, and maturity) laid out in the Brazilian 
classification system. In addition, the impo rtation of seeds for commercial purposes is 
strictly limited to the species and varieties contained in the National Register of Plant 
Varieties (RNC) maintained by MAPA. 
 6. Could Brazil please describe the re lationship between SPS measures and the 
regulations regarding the quality-related char acteristics of plants and plant products, 
and the RNC list for seeds.  The National Register of Cultivars - RNC seeks to  ensure the production of cultivars with high 
technology and quality, which are essential for agricultural development. The regulation aims to 
standardize quality characteristics of the products sold in the country, due to market demands. This legislation is notified to the TBT/WTO Committee, since it is not directly related to sanitary 
and phytosanitary measures. 
 7. Would the regulations regarding the qua lity-related characteristics of plants and 
plant products, and the RNC list for seeds, be  limiting factors as far as the new market 
access applications of foreig n countries are concerned? 
 There are no distinctions between national or fo reign products; therefore the same requirements 
on domestic producers are required from imported products. 
 3.4  Measures Affecting Production and Trade 
3.4.1  Competition policy and price controls 
3.4.1.1  Competition policy Page 83, paragraph 3.169 
 
The fines for infractions committed by comp anies have also been modified; formerly 
ranging from 1% to 30% of gross turnover in the last fiscal year, they are currently set 
at 0.1% to 20% of gross turnover in "the branch of activity" af fected by the anti-
competitive conduct in the fiscal year pr eceding the administrative investigation's 
commencement. This may result in a lower de terrent effect with respect to previous 
legislation, since prospective fines may be lower, and their application complicated by 
the need to determine the branch of acti vity of an infraction. Modalities for the 
implementation of this new concept have  yet to be adopted. According to the 
authorities, the reduced range for the fines was motivated by the inability of managers 
to pay in cases where both the company and its managers were fined for an infraction. 
 8. Does Brazil plan to introduce any comp limentary measures to the revisions in 
order to effectively deter anti-c ompetitive business practices? 
 
Advancing Law 12,529 establishments, CADE may make clarifications to the law, regarding the procedure, as long as such Resolutions do not pose against Law 12,529. For instance CADE has 
recently released new rules for settlement proceedings, through Resolution 05 of March 6th 2013. 
The main precepts of the recent settlement regulation are the ones that require that in cartel cases the agreement's proposer must recognize its participation in the conduct, pay a pecuniary 
contribution and collaborate with the remaining investigations. Also, the regulation established 
concrete parameters of reduction in the pecuniary contribution's amount, according to the degree of collaboration of the proposer, as well as the moment of the settlement proposition.  WT/TPR/M/283/Add.1 
 
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9. What is the impact of the revisions likely to be on anti-competitive cases 
challenged in the Courts?  The judicial review may take a lo ng time, but, CADE's attorney general's office has been working 
on the quality of CADE's decisions among judges. Such initiative has paid off when we evaluate 
that, in 2012, there was a 71% rate of favorable decisions to CADE. Additionally, we point out the 8 search and seizure requests that were used in the dawn raids held by the General 
Superintendence. 
 4  Trade Policies By Sector 4.4  Energy 
4.4.3.2  Regulatory framework 
Page 141, paragraph 4.99  
Local-content commitments have been among the selection criteria in all concession 
rounds carried out to date. Since October 20 05, the ANP has set item-specific minimum 
local-content thresholds for bidders' overall local-content offers. Since November 2007, 
concessionaries are required to present to the ANP certificates of local content issued by 
accredited institutions. Concessionaries that fail to fulfil their local-content 
commitments are subject to fines, which vary according to the shortfall.  
10. To our knowledge, all the regimes coveri ng the exploration and production of oil 
and natural gas in Brazil require local content requirements to be sa tisfied. Could Brazil 
please provide details of these local conten t requirements, in particular the machines 
and equipment required to be manufactured locally?  
 In the modality of concession, the grade that defines the winning bidder is composed of three 
factors and their respective weights, which are signing bonus (40%), minimum exploration 
program (40%) and local content (20%). The offer of each bidder for each of these factors is spontaneous, from a minimum and shall not exceed a previously defined maximum. In the case of local content, there are charts with minimum pe rcentages for certain items and sub-items of the 
subsystems of the exploration phase and the de velopment phase of production, corresponding 
goods and services of interest to development in the country (all regulations corresponding to local content is contained in Resolutions No. 36 to 39, fr om 2007, of National Oil Agency – ANP, as well 
as in tenders and contracts for each round, which can be accessed by  http://www.anp.gov.br 
website). Thus, each bidder in their strategy to bind off certain block, can choose to offer bigger values, in relation to the minimum, for each one of these factors. In case the bidders choose to 
offer bigger values for local content, they can offer less in terms of bonuses and / or minimum 
exploration program.  Even so, if any bidder has offered spontaneously any percentage of local content that has difficulty 
to comply, due to price, time or quality, the contract provides the possibility for compensation in 
other items (waiver clauses). In this case, the contracted party is bound to keep the overall percentage of local content in the exploration ph ase and the stage of development of production. 
However, as the values offered to this title served to bind off the block, in case it doesn't reach the 
values committed in the bidding, the bidder is subject to penalties for noncompliance. Thus, as it depends on which offer obtained the highest grade, we only can determine which machines and 
services each contractor (operator of the block) gave priority to build locally analyzing case by 
case.   11. At the same time, we would also like to know whether these requirements could 
possibly have any adverse effects on contra cts being awarded to foreign tenderers? 
 In Brazilian biddings, which are public and transp arent processes, all the bidders compete in equal 
terms and are subject to the same conditions, regard less of the nationality of the contracted party, 
since it may be a national oil company or a foreign one.  WT/TPR/M/283/Add.1 
 
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WT/TPR/G/283 
 4.  Trade Institutional And Regulatory Framework 4.1  Cross-Cutting Issues 
4.1.1  Technical standards 
Page 19, paragraph 4.5  
Under the framework of MERCOSUR, Brazil has worked with other members to develop a 
system of harmonization of technical requ irements. After each MERCOSUR member has 
carried out domestic consultations, and befo re they are adopted by MERCOSUR in the 
form of Resolutions, technical regulations are notified to the WTO. Brazil also has 
bilateral cooperation initiatives on technical regulations with Argentina, Bolivia, China, 
Chile, Cuba, Costa Rica, the Dominican Repub lic, Ecuador, Germany, Guatemala, France, 
India, Italy, Japan, Lebanon, Mexico, Moza mbique, Panama, Paraguay, Peru, Portugal, 
the Republic of Korea, Singapore, South Af rica, Russia, Trinidad and Tobago, Turkey, 
Ukraine, the United Kingdom, the Un ited States, Uruguay and Venezuela. 
 
12. Would Brazil consider these type of c ooperation initiatives with more trading 
partners with a view to expanding the scop e of bilateral commercial relations in the 
future?  
The INMETRO has Technical Cooperation Agreements with counterparts in the countries mentioned 
aiming at technical exchanges on various topics, fo r example, scientific metrology, legal metrology 
and consumer safety, and is open to deal on  new agreements with other trading partners. 
 
4.1.2  Trade facilitation Page 20, paragraph 4.13 
 
In the period under review, despite the conti nuing decline in the percentage of import 
and export declarations selected for verifica tion, there was a substantial increase in the 
volume of seizures of goods and payment of taxes otherwise evaded. Brazil currently 
has a selection index of approximately 12% of  foreign trade operations for verification, 
with a decreasing trend. Also during this pe riod, the percentage of imports released by 
Customs in less than one day has increased, reaching 81.16% of the total imports 
in 2012. The average clearance time has been decreasing year by year, albeit with a 
slight increase in 2012, and is currently 53 hours for imports and 11 hours for exports.  
13. Considering that, according to current average clearance times, imports continue 
to be more costly and less efficient than ex ports, does Brazil have any plans to reduce 
the average clearance time for imports?  
Brazil is concerned about the issue of modernizat ion of its Customs system. Improvements to this 
are an ongoing exercise. Relating to reducing customs clearance time, the following initiatives can be highlighted: 
 
- In August 2012, a National Center for Customs Risk Management (CERAD) was set up 
to improve the risk management and targeting of transactions;  
- The "certified enterprise" scheme (Blue Line), under which companies benefit from 
streamlined customs procedures, is currently under revision with a view to encourage more companies to join it; 
- A new computerized customs and foreign trade system is under construction. The aim 
is to create a more efficient single foreign trade window, through which many 
documents, formalities and data items will be simplified; 
- By the end of 2013, non-intrusive inspection equipments, for containerized cargo 
inspection, will be in place at the major points of entry into Brazil;  
- Since May 2013, 24/7 working hours for customs clearance has also been adopted at 
8 major seaports. 
 WT/TPR/M/283/Add.1 
 
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4.2  Sectoral Issues 
4.2.4  Renewable energy Page 25, paragraphs 4.55-56  
According to the Report, Brazil has one of th e world's cleanest energy mixes. It is 
forecast that renewable sources will continue  to account for a large share of supply, 
mostly due the use of hydropower and bioene rgy, including biofuels. The potential for 
increased production of this renewable and a ffordable energy source is an integral part 
of the country's long-term strategy for th e sector. Brazil is, therefore, investing 
significant amounts in research and in new technologies to improve the generation and 
distribution of energy.  
 
Brazil also considers bioenerg y, including biofuels, an indispensable tool for the 
expansion and diversification of the ener gy matrix. By 2021, biomass and wind 
generation are expected to supply 16% of  the country's energy needs. In the 
transportation sector, the use of ethanol and biodiesel plays a key role in the pursuit of 
sustainable development, climate chan ge mitigation and energy security. 
 
14. Would Brazil please explain in more detail how it will achieve the target of 
supplying 16% of the country's energy through biomass and wind?  
The target is to supply 16% of the country's electricity demand through biomass and wind. It is 
worth noting that biomass from sugar cane derivatives (ethanol, bioelectricity, etc.) already supplies 15.4% of the country's energy demand  as a whole. Biomass fuelled power plants 
currently generate 8% electricity consumed in Brazil. This share is expected to be roughly the 
same by 2021. On the other hand, the installed wind power capacity is expected to increase eightfold by 2021, reaching 16 GW (close to 9% of  the electricity generation). The expansion of 
biofuels (ethanol, specifically) that is forecast ed by the Brazilian Energy Plan indicates that 
Brazilian ethanol market will demand a significant expansion of sugarcane production. Thus, there will be a surplus of bagasse that will be converted into bioelectricity in the same facilities that produce ethanol and sell electricity to the grid.  
 
15. Could the Government of Brazil please  also describe its efforts to promote 
international cooperation regarding research  and new technologies in the production 
and distribution of renewable energy? 
 As a pioneer in the research and development of re newable energy, Brazil maintains an active role 
in the promotion of the sustainable use of energy  from renewable sources. On bioenergy alone, 
Brazil has signed cooperation agreements (including MoUs, partnerships and other agreements signed directly by any Federal Government Departme nt or Agency or public enterprise) with close 
to 80 countries. Brazil also works in close cooperation with international agencies and Forums, 
such as the International Energy Agency (IEA) and the Global Bioenergy Partnership, to promote 
the use of renewable energy. The Brazilian government understands that bioenergy is a way to promote sustainable development. The support o ffered by Brazilian Government includes both 
policy making process and technology aspects. WT/TPR/M/283/Add.1 
 
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COLOMBIA 
4.1.6  Propiedad intelectual 
 El párrafo 4.33 del Informe de Gobierno ...  "El Consejo Nacional de Lucha contra la 
Piratería y los Delitos de Propiedad Intelectua l (CNCP) se estableció en 2004, a raíz de 
que una comisión parlamentaria recome ndara medidas paragraph reforzar la 
coordinación entre los organismos gubernamen tales que participaban en la lucha contra 
la piratería y la falsificación. El Consejo es  responsable de la formulación y aplicación del 
Plan Nacional de Lucha contra la Piratería y Otros Delitos de Propiedad Intelectual y está 
integrado por representantes de los sectores  público y privado, incluidos titulares de 
derechos y representantes de la sociedad civ il. La iniciativa brasileña es singular e 
innovadora porque reúne en un consejo co njunto, con los mismos derechos de voz y 
voto, a entidades privadas y representantes de l Gobierno. La premisa en que se basa el 
Consejo es que la lucha contra las infraccion es de los derechos de propiedad intelectual 
requieren medidas tanto paragraph limitar la  oferta de esas mercancías, mediante 
actividades represivas, como paragraph hacer frente a la demanda de esas mercancías, 
mediante actividades educativas y económic as. Por consiguiente, las actividades del 
CNCP tienen un triple enfoque: re presivo, económico y educativo." 
 1. ¿Nos parece muy interesante el Consejo Naci onal de Lucha contra la Piratería y los 
Delitos de Propiedad Intelectual (CNCP) qu e fue creado en el año 2004. Llama la 
atención que está integrado por representa ntes de los sectores público y privado, 
incluidos titulares de derechos y repres entantes de la sociedad civil y que sus 
actividades tienen un triple enfoque: repres ivo, económico y educativo. Dado que es un 
modelo interesante del cual podríamos to mar experiencias paragraph reforzar la 
observancia en PI, sería muy útil que nos dieran más información sobre las actividades que desarrollan y sobre todo, sobre sus resultad os, si es posible en cifras y porcentajes? 
 
The creation of the CNCP is consequence of an assessment carried out by the Government 
regarding the need of improving coordination among relevant actors in order to successfully tackle 
IP infringements in Brazil. The active participation of stakeholders from the private sector is one of 
the envisaged ways of such improvement, considering the relevant information that they may 
provide. The Government of Brazil is open fo r further discussing the subject with Colombian 
officials. 
 
For a detailed description of the activities and results of the Council, please refer to paragraphs 3.306 to 3.309 of the Secretariat's Report. 
 
4.2.2  Agricultura  El párrafo 4.40 del informe del Gobierno indi ca que ... "La política agropecuaria brasileña 
está orientada al mercado y concede especial importancia al crédito rural y la gestión de 
riesgos basada en seguros rurales privados. El  crédito rural depende en gran medida de 
fuentes privadas y ha aumentado constantem ente. El sostenimiento de los precios de 
mercado es limitado y consiste en el pago de  primas establecidas en un número reducido 
de subastas públicas."  
2. ¿Nos gustaría conoce en detalle cómo funcionan los seguros rurales privados? 
 Private rural insurance in Brazil operates under market conditions as any other economy. Insurance is offered for agribusiness in economically viable, based on technical studies of the soil 
and climate conditions, being usually directed to  large and medium farmers. The rural insurance 
subsidies aim at expanding the use of this import ant tool to support the producer, reducing the 
risks inherent in agriculture. 
 
El párrafo 4.41 del informe de la Gobierno señala que ... "Las principales fuentes de 
financiación del sector agropecuario son los recursos procedentes de depósitos a la vista 
y ahorros rurales destinados obligatoriamente al crédito rural, y las líneas de crédito 
gestionadas por el Banco Nacional de Desarro llo Económico y Social (BNDES), así como 
los Fondos Constitucionales, cuyo objeto es reducir las desigualdades regionales y promover el desarrollo económico y social median te la financiación de la agricultura, la WT/TPR/M/283/Add.1 
 
- 66 - 
 
agroindustria y otros sectores, además de la infraestructura, la innovación y la 
tecnología. Estos fondos están dirigidos a las re giones del norte, el nordeste y el centro 
occidental (FNO, FNE y FCO).  
Las principales fuentes de financiación de l sector agropecuario son los recursos 
procedentes de depósitos a la vista y aho rros rurales destinados obligatoriamente al 
crédito rural, y las líneas de crédito gestio nadas por el Banco Nacional de Desarrollo 
Económico y Social (BNDES), así como los Fondos Constitucionales, cuyo objeto es 
reducir las desigualdades regionales y pr omover el desarrollo económico y social 
mediante la financiación de la agricultura, la agroindustria y otros sectores, además de 
la infraestructura, la innovación y la te cnología. Estos fondos están dirigidos a las 
regiones del norte, el nordeste y el centro occidental (FNO, FNE y FCO)." 
 3. ¿Podría el Gobierno de Brasil especifica r en qué porcentaje han participado los 
recursos de depósitos a la vista, los ahorros rurales, los créditos del Banco Nacional de 
Desarrollo Económico y Social (BNDES) y l os Fondos Constitucionales dentro de las 
fuentes de financiamiento del sector ag ropecuario en los últimos tres años? 
 
Los datos del Banco Central de Brasil se dan a continuación. Cabe destacar que no es obligatorio registrar en el Banco Central el crédito agrícola a tasa de interés libre. Por lo tanto, el crédito total al sector agrícola puede ser superior a lo indicado por el Banco Central. 
 
 2012/2013  2011/2012  2010/2011  
Depósitos a vista 41,21%  41,75%  43,24%  
Ahorros rurales 29,27%  35,97%  37,14%  
Créditos del BNDES  7,94%  5,77%  8,71%  
Fondos Constitutionales 7,47%  7,86%  7,23%  
La suma total no alcanza 100% porque hay otras fuentes de recursos.  
 
El párrafo 4.43 del informe del Gobierno se ñala que ... "El programa de reducción del 
carbono en el sector agropecuario ("Programa  ABC"), cuyo objeto es financiar prácticas 
agrícolas que reduzcan las emisiones de gase s de efecto invernadero, abarca programas 
de inversión destinados a impulsar la re cuperación de bosques (PROFLORA) y la 
producción agropecuaria sostenible (PRODUSA)."  
4. ¿Qué otras medidas cubre el programa ABC? 
 El programa también financia la recuperación de áreas degradadas, el despliegue y la expansión 
de servicios integrados de cultivos-ganadería-bosque,  la aplicación de prácticas de conservación de 
suelos, la aplicación de la agricultura orgánica, la restauración de áreas de preservación permanente y las reservas legales y otras prácticas que implica producción sostenible y culminan con baja emisión de gases de efecto invernadero. 
 
5. Podría indicarnos el Gobierno de Brasil si se  tiene alguna medición el impacto en el 
nivel de emisiones del Programa  de reducción del Carbono? 
 
En razón de que el programa se encuentra en sus inicios y se direcciona a inversiones a largo plazo, no hay manera en este momento de medir su impacto en la reducción de las emisiones de 
carbono.  
 El párrafo 4.44 del informe del Gobierno señala que ... "En 2012 se estableció el 
programa de inversión PROCAP-AGRO con el ob jetivo de incrementar el capital de las 
cooperativas agropecuarias proporcionándo les crédito preferencial paragraph la 
adquisición de acciones."  
6. ¿Podría indicarnos el Gobierno de Bras il qué  resultados ha arrojado este 
programa?  
Se ha registrado una gran demanda de las cooperativas por el PROCAP-AGRO. 
 WT/TPR/M/283/Add.1 
 
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4.2.3  Servicios 
 El párrafo 4.53 del informe del Gobierno se ñala que ... "El Gobierno brasileño está 
aplicando actualmente iniciativas paragraph me jorar el comercio exterior de servicios 
del país. Una de las innovaciones introduc idas paragraph realizar un seguimiento de 
este comercio es el Sistema Integrado de Co mercio Exterior de Servicios, Intangibles y 
otras Operaciones que Producen Variacione s en el Patrimonio (SISCOSERV). El 
SISCOSERV, que empezó a funcionar el 1º de agosto de 2012, registra las operaciones 
de comercio exterior de servicios y las tran sacciones intangibles entre residentes y no 
residentes. No se utiliza pa ragraph determinar el cumplim iento de los requisitos en 
materia de licencias ni paragraph otros tip os de control. Es un instrumento importante 
paragraph la formulación y seguimiento de  las políticas públicas y paragraph la 
recopilación de estadísticas sobre comercio exterior de servicios, y abarca todas las 
posiciones de la Clasificación Central de Pr oductos (CPC) de las Naciones Unidas y los 
cuatro modos de suministro, de conformidad con el Acuerdo General sobre el Comercio 
de Servicios (AGCS) de la OMC. Es gestio nado conjuntamente po r la Secretaría de 
Ingresos Federales (SRF) del Ministerio de Hacienda y la Secretaría de Comercio y 
Servicios del Ministerio de Desarrol lo, Industria y Comercio Exterior." 
 7. ¿Podría  el Gobierno de Brasil Quisiéra mos brindarnos más información acerca del 
funcionamiento del Sistema Integrado de Come rcio Exterior de Servicios, Intangibles y 
otras Operaciones que Producen Variacio nes en el Patrimonio (SISCOSERV)? 
 SISCOSERV - The Integrated System of Foreign Trade in Services and Intangibles - is managed by 
the Secretariat of Commerce and Services (of the Ministry of Development, Industry and Foreign 
Trade) and the Federal Revenue of Brazil (Ministr y of Finance), and is structured in accordance 
with the GATS/WTO concepts and definitions. 
 
The System is available online, where operations are registered, and is accessed by Digital Certificate. Transactions between Brazilian and foreign natural persons or enterprises are to be registered when the corresponding service (or intangible) provision has already begun; hence, 
there is no need for previous approval of the regi stry by the government. Operations are classified 
according to the NBS (Brazilian Nomenclature of Services and Intangibles), and the 4 GATS modes of international service provision are easily identifiable.  
 
SISCOSERV can be accessed through two separate  modules: the Sales Module, for services and 
intangibles exports by Brazilian natural persons or enterprises to foreign, and the Acquisition 
Module, for services and intangible imports. Both modules comprise services supplied under GATS 
modes 1, 2 and 4, and the Sales Module includes services supplied under GATS mode 3, ultimately 
targeting foreign affiliate trade in services (FATS).   
Detailed information on the Siscoserv is available online user manuals for both Modules (in 
Portuguese) on the Ministry of Development, Industry and Foreign Trade's website, at: http://www.desenvolvimento.gov.br/sitio/i nterna/interna.php?area=4&menu=3407 
 
WT/TPR/S/283  
Resumen 
Políticas comerciales, por medidas  El párrafo 14 del Informe de la Secretaría señala que... "El Brasil mantiene un sistema 
de licencias automáticas y no automáticas paragraph las importaciones de diversos 
productos, independientemente de su origen . Las licencias son intransferibles y válidas 
durante 90 días. Las licencias de import ación no automáticas son expedidas por 
16 organismos; el plazo reglamen tario paragraph el trámite de  las solicitudes es de 60 
días naturales. Las importaciones de determ inados productos pueden requerir licencias 
de más de una entidad. Las denegaciones de concesión de licencias se pueden impugnar 
ante el organismo competente. Algunos or ganismos pueden gravar la licencia de 
importación con un derecho o tasa que, según las autoridades, refleja el costo de los 
servicios prestados. Las licencias no automáticas también se utilizan en la administración de las concesiones de derech os e impuestos; paragraph beneficiarse de WT/TPR/M/283/Add.1 
 
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esas concesiones, las importaciones deben someterse a una "prueba de similitud" a fin 
de determinar que no existe pr oducción nacional equivalente." 
 8. ¿Colombia quisiera recibir más informació n respecto de los fundamentos legales y 
los criterios sobre los que se basan las au toridades brasileras paragraph adoptar  las 
licencias automáticas y no automáticas?   
9. ¿Cuáles son las entidades intervinientes  en la adopción de las medidas y 
especialmente el alcance de cada interv ención; sobre qué disciplinas y tipos de 
importaciones intervienen?   
10. ¿Ha pensado el gobierno de Brasil simplific ar los trámites, los procedimientos y el 
número de organismos que intervienen paragraph el estudio y aprobación de las licencias, en especial, las no automáticas? 
 
[8, 9 & 10] Imports are grouped into the following three categories: (1) those that do not require 
licenses (most common), (2) those subject to automatic import licenses, and (3) those subject to 
non-automatic licenses. In general, imports are exempt from approval requirements. However, 
some require approval (i.e., an import license) from the Secretariat of Foreign Trade (SECEX) or another government agency. This approval is promptly given to importers if the licensing requirements are fulfilled. As a rule, licenses are valid for 90 days with the opportunity for an 
extension if the delay is justified by the importer. Import licenses for certain imports may be 
obtained after the goods have arrived but before customs clearance.   
The products subject to automatic and no- automatic licensing are listed in the Administrative 
Treatment of the Integrated System of Foreign Trade (SISCOMEX) and can also be found on the web page of the Ministry of Development, In dustry and Foreign Trade (www.mdic.gov.br). The 
legal basis for each import licensing requirements and the corresponding licensing agency is 
available at http://www.mdic.gov.b r/arquivos/dwnl_ 1308919721.pdf . 
 11. ¿Podría brindarnos el Gobierno de Brasil más información sobre el funcionamiento 
del sistema de notificaciones en materia de  medidas que acogen reglamentos técnicos? 
 The Focal Point for TBT in Brazil notifies the technical regulations and conformity assessment 
procedures established by national regulatory agencies that have an impact on international trade. 
Despite the recommendation of the WTO TBT Agreem ent exempting notification regulations based 
on international standards, Brazil has adopted a policy of reporting regulations that have an impact 
on trade even if based on international standards. 
 12. ¿Quisiéramos tener más información sobre el  trámite de elaboración y emisión de 
estos reglamentos, dependiendo de la temáti ca sobre la cual versan, así como, conocer 
cómo opera la coordinación entre entidade s (a manera de ejemplo, podemos citar 
sectores como el de energía y salud)?  
Brazil has published the Guide to Good Regulatory Practices, of a voluntary nature, prepared under 
the Brazilian Regulatory Committee which involves major national regulatory agencies. Inmetro adopts the practices recommended by the Guide, which provide guidance and recommendations 
for the preparation, adoption and implementation  of technical regulations for the purpose of 
contributing to the improvement and enhancement of  the Brazilian regulatory practices. The guide 
is intended to Brazilian authorities responsible for the preparation, adoption and implementation of technical regulations for products, se rvices, goods, processes or people. 
 
The Spanish version of the Guide is on the link below: 
 
http://www.inmetro.gov.br/qualid ade/pdf/22995_guia_espanol.pdf 
 INMETRO technical regulations are devised through a Four-Year Action Plan (PWP), which presents 
the priorities for the development of Regulati ons and Conformity Assessment Programs in the 
Brazilian System of Conformity Assessment (SBAC) fo r the following four years. This Plan is drawn 
from a set of demands for conformity assessment presented to INMETRO by the general public, represented by public and private sector organiza tions, such as government agencies, consumer 
protection agencies, associations representing cla sses of productive sectors, industry and services, WT/TPR/M/283/Add.1 
 
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conformity assessment bodies, academia, standardization committees, groups of local productive 
arrangements and State Institutes of Weights and Measures.  Depending on the definition of the object to be regulated, it will be submitted to the Regulatory 
Impact Assessment for defining the appropriate measure to solve the problem. At this stage, 
possible actions to assist in implementation of the regulations are also identified, with special focus on micro, small and medium enterprises. Later, it  begins the development of regulations involving 
stakeholders through the establishment of a Techni cal Committee and the end of the process, after 
the public consultation period, the final version is published.  3  Políticas Y Prácticas Comerciales, Por Medidas 
3.1  Introducción 
 El párrafo 3.2. del Informe de la Secretaría señala que …  "Además de los aranceles, se 
aplican a las importaciones diversos impu estos internos: el impuesto sobre los 
productos industriales (IPI); el Impuesto sobre la Circulación de Mercancías y la 
Prestación de Servicios (ICMS); las contribu ciones al Programa de Integración Social 
(PIS) y a la financiación de la seguridad social (COFINS); y el Impuesto sobre los 
Servicios (ISS). La aplicación de estos impues tos varía según el tipo de producto, la 
autoridad subfederal competente y la condició n fiscal del importador, todo lo cual añade 
complejidad al sistema fiscal." 
 
13. ¿Colombia solicita a Brasil mayor inform ación sobre el impuesto a productos 
industriales (IPI) y su relación con la Política Industrial? 
 
In the web site http://www.receita.fazenda.gov.br /  one can find all the information available 
regarding IPI.  
 
The IPI has a regulatory and selective nature and may be raised or lowered in order to desestimulate or to stimulate specific industries or products. It is a tax that is applied equally upon national production and imports. 
 
14. Dado que la aplicación de estos impuestos varía según el tipo de producto, la 
autoridad subfederal competente y la condició n fiscal del importador, todo lo cual añade 
complejidad al sistema fiscal, quisiéramos re cibir información sobre el funcionamiento 
de esta medida y la compatibilidad de la mi sma frente a los compromisos en el marco de 
la OMC.? 
 
In the web site http://www.receita.fazenda.gov.br/  one can find all the information on Brazilian 
taxes.  
 The Brazilian system of tax administration is fully  compatible with world trade rules.  
 3.2  Medidas Que Afectan Direct amente A Las Importaciones  
3.2.1  Procedimientos 
 El párrafo 3.13 del informe de la Secret aría señala que ... "Todos los servicios y 
transacciones de intangibles entre residentes  brasileños y extranjeros deben registrarse 
en el Sistema Integrado de Comercio Exte rior de Servicios, Intangibles y Otras 
Operaciones que produzcan Variaciones Pa trimoniales (SISCOSE RV), que se hizo 
efectivo el 1º de agosto de 2012. Este requis ito se aplica a la parte brasileña (residente) 
que participa en la transacción. Pueden  otorgarse exenciones en el caso de 
transacciones cuyo valor mensual no exceda de 20.000 dólares EE.UU., si las realizan 
personas físicas; también pueden beneficiar se de exenciones las personas jurídicas 
comprendidas en el Régimen Tributario Si mplificado y las personas físicas que se 
desempeñan como microempresarios."  
15. ¿Podría Brasil ampliar la información sobre el funcionamiento de este sistema. 
Como es el proceso de registro y que tipos de controles se realizan paragraph verificar 
que los servicios prestados y las transacci ones de intangibles son registradas? 
 WT/TPR/M/283/Add.1 
 
- 70 - 
 
SISCOSERV - The Integrated System of Foreign Trade in Services and Intangibles - is managed by 
the Secretariat of Commerce and Services (of the Ministry of Development, Industry and Foreign 
Trade) and the Federal Revenue of Brazil (Ministr y of Finance), and is structured in accordance 
with the GATS/WTO concepts and definitions.  
 
The System is available online, where operations are registered, and is accessed by Digital Certificate. Transactions between Brazilian and foreign natural persons or enterprises are to be 
registered when the corresponding service (or intangible) provision has already begun; hence, 
there is no need for previous approval of the regi stry by the government. Operations are classified 
according to the NBS (Brazilian Nomenclature of Services and Intangibles), and the 4 GATS modes of international service provision are easily identifiable. Registering transactions into Siscoserv is 
considered an ancillary obligation by the Federal Revenue of Brazil, who manages the system for 
tax inspection purposes.  
SISCOSERV can be accessed through two separate  modules: the Sales Module, for services and 
intangibles exports by Brazilian natural persons or enterprises to foreign, and the Acquisition Module, for services and intangible imports. Both modules comprise services supplied under GATS 
modes 1, 2 and 4, and the Sales Module includes services supplied under GATS mode 3, ultimately 
targeting foreign affiliate trade in services (FATS).   Detailed information on the Siscoserv is available in online user manuals for both Modules (in 
Portuguese) on the Ministry of Development, Industry and Foreign Trade's website, at: 
 
http://www.desenvolvimento.gov.br/sitio/i nterna/interna.php?area=4&menu=3407 
 
3.2.9  Medidas sanitarias y fitosanitarias  
El párrafo 3.87 del informe de la Secretar ía indica que ... "Entre los servicios de 
información del Brasil se incluyen los si guiente: La Secretaría de Relaciones 
Internacionales paragraph la Agroindust ria del MAPA, la Oficina de Asuntos 
Internacionales (anteriormente Servicio de Asistencia paragraph las Cuestiones 
Internacionales) de la ANVISA y la CGSAP del MPA.  El Ministerio de Relaciones 
Exteriores es el organismo brasileño encarg ado de las notificaciones relacionadas con 
cuestiones sanitarias y fitosanitarias.  Co mo norma general, las medidas sanitarias y 
fitosanitarias propuestas se publican en el Diario Oficial del Brasil y se notifican a la 
OMC; entre enero de 2009 y enero de 2013 se  presentaron a la OMC 362 notificaciones 
ordinarias y 3 notificaciones urgentes. Al igual que cuando se realizó su anterior 
examen, el historial del Brasil en materi a de notificaciones sigue mostrando un 
predominio de plazos paragraph la presentaci ón de observaciones de menos de 60 días 
(85% de las 362 notificaciones ordinarias); por otra parte, se hace un uso limitado de 
las disposiciones que prevén un plazo de seis  meses entre la publicación de la medida y 
su entrada en vigor. Según las autoridades, en general se han tomado en consideración 
las observaciones de las partes interesadas,  incluso después de los plazos estipulados." 
 
16. ¿Nos gustaría saber además de las razone s de emergencia que otros motivos han 
impedido que el Gobierno de Brasil no cumpla con estos tiempos?  
Brazil is constantly working for the improvement of its information system. It should be stressed 
that comments from WTO members have been consid ered by the Brazilian authorities even after 
the closure of the pre-defined period for receiv ing them. Brazilian SPS regulations are based on 
international standards and notified to the WTO. Most notifications are for purposes of market 
opening. 
 3.4  Medidas que afectan a la producción y el comercio 
3.4.5  Derechos de propiedad intelectual 
3.4.5.2.4  Otras formas de propiedad industrial 3.4.5.4  Observancia 
 
En el párrafo 3.307 del informe de la Secret aría indica que ... "Durante el período 2008-
2012, el Consejo Nacional llevó a efecto 23 proyectos estratégicos de lucha contra la 
piratería y otras infracciones de los dere chos de propiedad intelectual, asignando 
prioridad a seis de ellos: Ciudad Libre de  Piratería, Curso paragraph Agentes Públicos, WT/TPR/M/283/Add.1 
 
- 71 - 
 
Feria Jurídica, Comercio contra Piratería, Po rtal de Internet paragraph Combatir la 
Piratería, y Asociaciones y Cooperación con Proveedores de Servicios de Internet. Las 
autoridades señalaron que, además de los proyectos estratégicos, el Consejo tiene 
previsto reforzar sus actividades promoviend o el establecimiento de alianzas con el 
sector privado y otros organismos gubernam entales; estructurando procesos internos 
relacionados con la gestión financiera, l os recursos humanos y las comunicaciones; 
instrumentando mecanismos de búsqueda e intercambio de información; iniciando 
nuevas campañas educativas y perfeccionan do la comercialización institucional; 
adoptando medidas paragraph la moviliz ación y vinculación de los organismos 
gubernamentales encargados de lograr la  observancia; elaborando soluciones 
innovadoras paragraph frenar la comercializac ión de mercancías ilegales, y formulando 
y gestionando las políticas paragraph combat ir las infracciones de los derechos de 
propiedad intelectual."  
17. ¿El sector privado ha hecho propuestas re levantes que hayan tenido impacto en las 
actividades?  
Yes, the private sector actively participates in the meetings and activities of CNCP. Many of the 
projects in place are managed by private sector's representatives, with periodical reports to the Council. Examples of such projects are the "National Award for Fighting Piracy" and the 
implementation of the project of "City Free of Pi racy" in Brazilian cities that will host major 
sporting events. 
 18. ¿Podría indicarnos el Gobierno de Br asil de dónde provienen los recursos 
paragraph las actividades que se han desarrollado? 
 Funding for the projects is shared between the private and the public sectors according to the 
participation of each in specific projects. 
 3.3.4.7  Régimen Especial de Tributación pa ragraph la Plataforma de Exportación de 
Servicios de Tecnología de  la Información (REPES) 
 
El párrafo 3.128 del informe de la Secretar ía indica que ... "El REPES suspende los 
impuestos PIS y COFINS sobre las compras de bienes nacionales o importados nuevos y 
servicios de tecnología de la información na cionales o importados, así como el IPI sobre 
las importaciones de mercancías nuevas (en caso de que no haya productos nacionales 
equivalentes) paragraph su incorporación como  activos fijos. Las empresas beneficiarias 
deben dedicarse exclusivamente al desarrollo de software y a la provisión de servicios 
informáticos, y comprometerse a exportar software y servicios informáticos por al menos un 80% de sus ingresos brutos anuales."  
19. ¿Cómo funciona el Régimen Especial de Tributación paragraph la Plataforma de 
Exportación de Servicios de Tecnolog ía de la Información (REPES)?  
 
The regular regime for the suspended taxes (PIS  and COFINS) is a non-cumulative taxation 
system based on a credit mechanism. This regime allows the taxpayer to calculate and deduct the 
respective tax credits relating to goods (including capital goods) and services used as input on the 
provision of services or production of goods for further sale.  
 By this system, however, companies that export a significant amount of their production often have insufficient tax liabilities or debits to offset their tax credits. As a result, many companies 
accumulate credits throughout the fiscal year. 
 REPES only target is to simplify the use of the mentioned credits to which companies are already 
entitled.  
 Also on competition, REPES is designed to keep  tax neutrality. RECAP therefore suspends taxes, 
which, in turn, do not generate credit to be used along the value chain.  
 20. ¿Cómo se hace el registro de la empresa?  
 WT/TPR/M/283/Add.1 
 
- 72 - 
 
Enterprises may benefit from REPES only in case they are in a regular situation before the 
Revenue Service and Exercise exclusively the activities of software development activities or the provision of information technology, together or separately, and export no less than 80% of its annual gross revenues from sales of goods and services. 
 
21. ¿Qué tanto uso ha tenido el mecanismo?  
 
Full statistics on the usage of REPES are not currently available. 
 22. ¿Se ha medido el impacto en la industria? 
 
The impacts on the industry are not fully assessed at the moment. 
 3.3.5.2  Programa de Financiaci ón de las Exportaciones (PROEX) 
 
El párrafo 3.137 del informe de la Secret aría señala que ... "El PROEX utiliza dos 
modalidades: la financiación directa (Financiac ión PROEX) y la equiparación de los tipos 
de interés (Equiparación PROEX). En 2012, las operaciones de exportación amparadas 
por el programa ascendieron a 4.880 m illones de dólares EE.UU.: 495,4 millones de 
Financiación PROEX y 4.390 millo nes de Equiparación PROEX." 
 
23. ¿Cómo se materializan el financiamiento de l PROEX, a través de la banca privada o 
la banca estatal?   
PROEX is a federal government programme administered by the Banco do Brasil S.A. 
 24. ¿Cómo es la valoración del riesgo de las compañías de servicios?  
 
Risk classification of companies is made by Seguradora Brasileira de Crédito à Exportação 
(Brazilian Export Credit Insurance Company - SB CE), a private company hired by the Brazilian 
Government to provide services related to credit insurance. The model used for the classification is 
based on those established by the OECD. 
 25. ¿Qué modalidad de financiamiento (i. e. financiación directa o equiparación) ha 
tenido mejor recepción por las empresas? 
 Since PROEX Financing is mainly designed to support enterprises (MSEMs) with an annual turnover 
of up to R$600 million (about US$300 million), it is more popular with micro, small, and medium 
sized companies. PROEX Equalization is more popular with bigger companies.  
 El párrafo 3.139 del informe de la Secretar ía señala que... "El programa Equiparación 
PROEX asume parte del costo del crédito a la  exportación concedido por las entidades 
financieras -en el Brasil o en el extranjero- con el fin de que los tipos de interés sean 
equivalentes a los del mercado internacional. Esta modalidad es aplicable a las empresas 
exportadoras brasileñas, con independen cia de su tamaño, que han obtenido 
financiación de una entidad financiera. El po rcentaje financiado puede alcanzar el 100% 
del valor de las exportacione s, y el porcentaje suscepti ble de equiparación se ha 
aumentado recientemente al 100% del valo r de las exportaciones. El período de 
equiparación varía entre 60 días y 15 años (has ta hace poco 10 años), según el valor de 
las exportaciones y la complejidad de l os servicios prestados (véase infra). Las 
condiciones de financiación (tipo de interés,  plazo, porcentaje financiado y garantías) 
pueden ser negociadas entre los bancos y el exportador. El importe de la equiparación 
se paga al banco que concede el crédito a la  exportación, mediante la emisión de Bonos 
del Tesoro Nacional del Brasil (NTN-I). En  2012, se registraron unas 2.119 operaciones 
con 38 exportadores mediante el programa  Equiparación PROEX. Los principales 
sectores que se beneficiaron de esta modalid ad fueron la maquinaria y equipo (57%), 
los servicios (26%) y el equipo de transporte  (17%). Los principales destinos fueron los 
Estados Unidos, Angola, el Perú y Chile." 
 26. ¿Cómo trabaja el Estado Brasilero con la  banca privada nacional y extranjera?  
 
Kindly refer to answer to question 24. WT/TPR/M/283/Add.1 
 
- 73 - 
 
27. ¿Cómo se incentiva el uso este mecanismo de  financiación por parte de los bancos?  
 Kindly refer to answer to question 25.  
3.3.5.4  Programas de financiación  de las exportaciones BNDES-EXIM 
 E l  p á r r a f o  3 . 1 4 3  d e l  i n f o r m e  d e  l a  S e c r e t a r í a  i n d i c a  q u e  …   " E l  B N D S  o f r e c e  v a r i o s  
programas de financiación de las exportacio nes. Uno de los principales es el BNDES-
EXIM, que concede créditos previos y poster iores al envío paragraph exportaciones 
brasileñas de bienes y servicios. BNDES-EX IM tiene varios subprogramas o modalidades 
de financiación. En general, los bienes admi tidos están enumerados en la Circular del 
BNDES Nº 74/2012, de 27 de diciembre de 20 12, aunque algunos programas se dirigen 
especialmente a determinados productos o indust rias (p. ej. los automóviles y el sector 
de la aviación). La lista de los bienes ad mitidos comprende tres grupos de productos, 
que abarcan cerca del 70% de las líneas ar ancelarias brasileñas. Las condiciones 
paragraph beneficiarse de algunos de los programas BNDES-EXIM incluyen el 
cumplimiento de un determin ado índice de nacionaliz ación (normalmente un 60% 
definido en términos de valor y/o peso), límites  de producción nacional u otros criterios 
establecidos por el BNDES (cuadro A3.1).  Las autoridades brasileñas han destacado que 
estas condiciones son aplicables solo paragr aph beneficiarse automáticamente de la 
financiación, y que los productos que no las cumplen también se pueden beneficiar de 
los programas con sujeción a un procedim iento de análisis no automático". 
 28. ¿Qué servicios están cubiertos en el pr ograma de financiamiento BNDES-EXIM?  
 
Detailed information may be found at BNDES website: http://www.bndes.gov.br/S iteBNDES/bndes/bndes_pt/Institucio nal/Apoio_Financeiro/Produtos/BN
DES_Exim/index.html. 
 29. ¿Hay algunos subprogramas espe cializados en servicios?  
 
Kindly refer to question 28. 
 30. ¿Cómo eligieron los servicios cubiertos? 
 
Kindly refer to question 28.  
4  Políticas Comerciales, Por Sectores 
4.2.3.2  Crédito rural 4.2.3.2.2  Programas de crédito rural del Gobierno  
El párrafo 4.38 del informe de la Secretaría señala que ... "Durante el período objeto de 
examen, el Gobierno suprimió el Programa de  Generación de Empleo e Ingresos Rurales 
(PROGER), que suministraba crédito a pequ eños agricultores con ingresos anuales 
inferiores a 80.000 reales. En 2010, el prog rama fue reemplazado por el Programa de 
Apoyo a los Agricultores Medianos (PRONAMP), que estableció unas condiciones de admisibilidad más estrictas.  Los fondos para graph este programa proceden de diversas 
fuentes, en particular los recursos obligator ios, el ahorro rural y fondos del BNDES. El 
Gobierno prevé suministrar créditos por valo r de 11.000 millones de reales en el marco 
del PRONAMP en la campaña agrícola 2012- 2013, frente a 5.000 millones de reales 
desembolsados en el período 2010-2011." 
 
31. ¿Cuáles fueron las razones pa ragraph eliminar el PROGER? 
 
El PRONAMP representó una reformulación del PROGER en la cual se mantuvieron los objetivos del 
programa pero se cambió su base de financiaci ón, dejando de utilizar recursos del Fondo de 
Amparo al Trabajador (FAT).  
 
32. ¿Nos gustaría saber que tan exitoso ha sido  el Programa de Cédula de Producto 
Rural (CPR)?  WT/TPR/M/283/Add.1 
 
- 74 - 
 
Las CPRs físicas son ampliamente utilizadas por los agricultores y aceptadas por el mercado, visto 
que son títulos seguros y líquidos, exigibles de acuerdo a las cantidades de productos especificadas. Sin embargo, las CPRs financieras, de registro obligatorio, sólo se utilizan cuando el productor quiere obtener de los Bancos los anti cipos correspondientes a sus respectivos valores. WT/TPR/M/283/Add.1 
 
- 75 - 
 
COSTA RICA 
WT/TPR/S/283 
 Página 53, párrafo 3.15 
 
En el supuesto de que un agente actúe en re presentación de un tercero, y éste comenta 
un error en la declaración aduanera (mala clasificación de mercancías, errores de 
digitación, errores en la  declaración del or igen de las mercancías, entre otros) y esto 
genere una diferencia de impuestos.  1. ¿Podría Brasil indicar quién sería el responsable ante el Estado brasileño? 
 
El importador sigue siendo responsable por los impuestos, aunque haya contratado a un agente que lo represente. 
 
Página 53, párrafo 3.16  
El Brasil también ha introducido un mecanism o paragraph la tramitación de resoluciones 
anticipadas en materia de clasificación ar ancelaria. El período de validez de las 
resoluciones no está limitado.  
2. ¿Cómo funciona el mecanismo para graph la tramitación de resoluciones 
anticipadas en materia de clasificación ar ancelaria? ¿Se encuentra disponible algún 
sistema por medios electrónicos? 
 
La Instrucción Normativa No. 740, de 2 de mayo de 2007, establece el procedimiento de consulta relativo a la interpretación de la legislación tributaria y aduanera y también sobre la clasificación 
arancelaria. Esa normativa no establece un plazo máximo paragraph la emisión de una resolución 
anticipada, pero, hasta 30 días después de la respuesta, el peticionario no puede sufrir penalidades ni interés moratorio respecto a la materia consultada.  
El artículo 13 de la Normativa 740 determina que un extracto de la resolución anticipada sea 
publicado en el boletín oficial federal. También es posible consultar extractos de las resoluciones anticipadas en la página web: 
 
http://decisoes.fazenda.gov.br/netah tml/decisoes/decw/pesquisaSOL.htm 
 
Página 60, párrafo 3.36 
 De conformidad con las normas del MERC OSUR, el Brasil mantiene una serie de 
exenciones del AEC temporales y unilaterales; el alcance de esas excepciones se amplió 
con la adopción, en diciembre de 2011, de un nuevo mecanismo del MERCOSUR que 
prevé aumentos temporales de los aranceles aplicados a los pr oductos no originarios.  
La finalidad declarada de la excepción es hacer frente a los desequilibrios comerciales 
derivados de la coyuntura económica inte rnacional. Los Estados miembros deben 
presentar una solicitud a la Secretaría de l MERCOSUR en la que justifiquen cada 
aumento arancelario propuesto; si otros Estados miembros presentan objeciones, la 
cuestión es dirimida por la Comisión de Comercio del MERCOSUR. Este mecanismo, que 
entró en vigor el 6 de septiembre de 2012, limita el marco temporal aplicable a un período de 12 meses (prorrogable hast a 12 meses más) y el número de líneas 
arancelarias admisibles (de 8 dígitos) a 1 00 por cada Estado miembro. Aprovechando 
este mecanismo, el Brasil aumentó los tipos aplicados a 100 líneas arancelarias (el 
máximo número autorizado) por un período de  12 meses; el aumento entró en vigor el 
1º de octubre de 2012.  A consecuencia de  estos aumentos, que van de 6 a 23 puntos 
porcentuales, el promedio simple de l os tipos arancelarios aplicados a estas líneas 
aumentó del 13,5% al 22,2%. Al mes de marzo de 2013, se encuentra pendiente de incorporación en la legislación nacional de los Estados miembros una Decisión del 
MERCOSUR por la que se au mentará a 200 el número de  líneas arancelarias. Dicha 
incorporación constituye una condición prev ia paragraph la entrada en vigor de la 
Decisión.  WT/TPR/M/283/Add.1 
 
- 76 - 
 
3. ¿Cuáles son las exenciones del AEC temp orales y unilaterales que Brasil mantiene? 
¿Paragraph cuáles productos?  According to Decisions CMC No. 58/10 and 49/12 of MERCOSUR, Brazil can maintain a list of 
exceptions to Common External Tariff (CET) of up to 100 tariff lines. 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 No. 08/08) of up to 
45 MERCOSUR tariff lines; iii) increase tariffs, within WTO bound levels, of up to 100 tariff lines, as 
established in Decision CMC No. 39/11.  Brazil also maintains a national regime of imports of Capital Goods and of Telecommunications and Computer Goods, as authorized by Decision CMC No. 65/12.  
 
All exceptions to CET applied by Brazil can be found in the following websites:  
- Ministry of Development, Industry and Foreign Trade:  
 http://www.desenvolvimento.gov.br//sitio /interna/interna.php?area=5&menu=3361 
 
- CAMEX: 
 http://www.camex.gov.br/leg islacao/interna/id/986 
 Página 62, párrafo 3.42 
 
El Brasil otorga preferencias arancelarias en el contexto de sus acuerdos comerciales 
bilaterales y regionales (capítulo 2.5); no  se han adoptado formalmente cuadros de 
correspondencia con el SA 2012. Algunos de estos acuerdos se superponen en cuanto a 
los interlocutores comerciales, pero difi eren en lo que respecta a los productos 
abarcados y las normas de origen. En ciert os acuerdos, la cobertura de productos es 
bastante limitada. Las autoridades han se ñalado que normalmente los importadores 
conocen la clasificación arancelaria de sus productos y los criterios paragraph acceder a 
las preferencias y solicitan el tratamiento ap ropiado. El promedio aritmético del tipo 
arancelario NMF es del 11,7%, mientras qu e los promedios aritméticos de los tipos 
arancelarios paragraph los interlocutores co merciales preferenciales del Brasil oscilan 
entre el 6,8% (Perú) y el 11,6% (Guyana y la India) (cuadro 3.4).  
4. ¿Podría Brasil ampliar a qué se refiere cuando se indica que la cobertura de 
productos es bastante limitada en ciert os acuerdos? ¿Cuál es el porcentaje de 
cobertura? 
 
Brazil has trade agreements with several members of the Latin American Integration Association (ALADI) under the scope of the Treaty of Mo ntevideo (1980). Some agreements, e.g. ACE-35 
MERCOSUR-Chile, are Free Trade Agreements, covering most of the tariff lines. Others agreements 
have a more partial scope, covering only a fe w products or a specific sector (e.g. ACE-55 
MERCOSUR-Mexico, which covers 153 tariff line s from the automotive sector).Information 
regarding the coverage of the MERCOSUR trade agreements can be found in Table 2.3, 
"Preferential Trade Agreements, 2008-12" (Bureau report, page 41). 
 Complete information regarding the coverage of the MERCOSUR trade agreements can be found in 
Table 2.3, "Preferential Trade Agreements, 2008-12" (Bureau report, page 41). 
 Página 64, párrafo 3.44  
Las importaciones están sujetas a diversos impuestos internos: el Impuesto sobre los 
Productos Industriales (IPI); el Impuesto sobre la Circulación de Mercancías y la 
Prestación de Servicios (ICMS); las contribu ciones al Programa de Integración Social 
(PIS) y a la financiación de la seguridad social (COFINS); y el Impuesto sobre los 
Servicios (ISS). La aplicación de estos impues tos varía según el tipo de producto, la 
autoridad subfederal competente y la condició n fiscal del importador, todo lo cual añade 
complejidad al sistema fiscal. 
 5. Entendemos que los impuestos internos varían en cada Estado de Brasil, ¿es 
correcta nuestra interpretación? Si es así, ¿ una mercancía importada podría ingresar por 
el Estado que tiene tasas de impuestos internos más bajas? WT/TPR/M/283/Add.1 
 
- 77 - 
 
Only ICMS is a state tax and may vary from state to state in operations that do not cross state 
lines. When a good crosses state lines, there is a fl at 4% rate that is applied, regardless of the 
origin. Importations are submitted to the same regime, so there is no difference with regards to the port of entry. 
 
Página 80, párrafo 3.103  
La Ley Nº 9.716, de 26 noviembre de 1998, y el Decreto Nº 6.759, de 5 de febrero 
de 2009, prevén la aplicación de un impues to a la exportación del 30%, cifra que la 
Cámara de Comercio Exterior (CAMEX) pu ede reducir o aumentar (hasta el 150%) 
paragraph alcanzar objetivos de divisas o de  política comercial. En la práctica, los 
impuestos a la exportación tienen un tipo nul o, a excepción de algunos productos (véase 
el cuadro 3.6). El impuesto se calcula en función del valor f.o.b. o el precio de las 
mercancías en el mercado internacional en el momento de la exportación.  Ese precio no 
puede ser inferior al costo de adquisició n o de producción, incrementado con los 
impuestos y otras contribuciones, más un marg en comercial del 15% sobre la suma de 
los costos y los impuestos. 
 
6. ¿Los impuestos de exportación son aplicables a todos los productos?  Brazil has only three products for which the export taxes apply: wet blue leather; firearms, 
weapons and devises; and tobacco. The reasons for application are different. The export tax on 
wet blue leather was adopted in 2001 in a context where most leather importers apply tariff escalation to the leather chain. The export tax on firearms, weapons and devises was adopted for 
national security reasons. The reason for the application of an export tax on tobacco was to avoid 
smuggling related to the re-entrance of Brazilian tobacco products in Brazil's territory. The application of the last two export taxes is regionally limited.  
 
Página 82, párrafo 3.112  Las autoridades consideran que establecer  la neutralidad fiscal paragraph las 
exportaciones es un elemento fundamental al respecto, y con el fin de cumplir ese 
objetivo se recurre a la exención de impues tos indirectos sobre las exportaciones y a la 
implementación de mecanismos como el sistem a de desgravación fiscal a la exportación 
(que también cubre la compra de insumos nacionales paragraph la elaboración de 
productos de exportación), las zonas de el aboración paragraph la exportación y otras 
concesiones conexas en materia de impuestos y derechos.  
 
7. ¿Aplica el programa paragraph el caso de  insumos importados que se incorporen en la elaboración de productos dirigidos a la  exportación?  En caso de que no aplique, 
¿Cómo garantiza Brasil la no violació n del principio de Trato Nacional? 
 
Yes. According with Law No. 11.945 of 4 June 2 009, the scheme allows for the suspension or 
exemption of taxes both on imported and locall y purchased inputs used on the production of 
exporting goods. 
 Exports are exempt from indirect taxes, and impo rted inputs benefit from the exemptions as well 
as domestic imputs. 
 Página 82, párrafo 3.115  
Las empresas que exportan bienes manufactura dos en el Brasil pueden refinanciar hasta 
el 3% de sus ingresos brutos derivados de la s exportaciones, que se puede utilizar como 
crédito paragraph sus pasivos fiscales federales o como pago en efectivo. 
 
8. ¿Cómo garantiza el Brasil que este 3% no sobrepasa el total de lo adeudado o 
abonado por el exportador, tal como se indi c a  e n  l a  n o t a  a l  p i e  1  d e l  A c u e r d o  s o b r e  
Subvenciones y Medidas Compensatorias? 
 The calculations made are a least-common denominator for returning tax residue that was lost and therefore not offset throughout the production chain. The amount is lower than the taxes 
effectively due by the enterprises. WT/TPR/M/283/Add.1 
 
- 78 - 
 
Página 85, párrafo 3.127 
 Las empresas que producen de manera pred ominante paragraph la exportación pueden 
optar a la suspensión de los gravámenes PIS, COFINS e IPI sobre las compras de 
insumos, ya sean nacionales o importados,  o pueden optar por un régimen especial 
como el RECAP. Se considera que una empr esa está predominantemente orientada a la 
exportación cuando exporta más del 50% de sus ingresos brutos derivados de la venta 
de bienes y servicios.  Si no se cumple  esta condición, los impuestos suspendidos 
deberán abonarse, con las correspondiente s penalidades e intereses de demora. 
 9. ¿Los beneficios están siendo condicionados paragraph las empresas orientadas a la 
exportación? 
 The regular regime for the suspended taxes (PIS  and COFINS) is a non-cumulative taxation 
system based on a credit mechanism. This regime allows the taxpayer to calculate and deduct the 
respective tax credits relating to goods (including capital goods) and services used as input on the 
provision of services or production of goods for further sale.  
 
By this system, however, companies that export a significant amount of their production often have insufficient tax liabilities or debits to offset their tax credits. As a result, many companies accumulate credits throughout the fiscal year. 
 
RECAP is only target to simplify the use of the mentioned credits to which companies are already entitled.  
 
Also on competition, RECAP is designed to keep  tax neutrality. RECAP therefore suspends taxes, 
which, in turn, do not generate credit to be used along the value chain.  
 
Página 166, párrafo 4.114  El Gobierno Federal es titular del 54,46% de las acciones con derecho a voto de 
ELETROBRAS, que sigue desempeñando una im portante función en el sector de la 
electricidad. En 2010, la empresa representa ba un 36% de la capacidad de generación 
instalada del Brasil y un 55% de sus líneas de transmisión.  Aproximadamente un 35% 
del total del capital social de la empresa es tá en manos de inversores privados, en su 
mayoría extranjeros.  La distribución de electricidad es prestada por 64 empresas, 
estatales y privadas. 
 
10. ¿Cuál es el porcentaje de participació n privada fuera de EL ETROBAS? ¿Cuáles son 
las restricciones a la participación extranjera?  
Detailed information on shareholders of ELET ROBRAS may be found at http://www.eletrobras.com. 
 Página 169, párrafo 4.130 
 
El establecimiento de nuevas institucione s financieras extranjeras requiere la 
aprobación mediante Decreto Presidencial. En  la práctica, el establecimiento de esas 
instituciones se ha permitido, y el 17% de los activos pertenecen a bancos extranjeros. 
El Brasil participó en las negociaciones de la  OMC sobre servicios financieros; aunque no 
ha ratificado el Quinto Protocolo, las modifi caciones introducidas en su legislación sobre 
seguros en 2007 pueden hacer posible esa ratificación. Entre otras cosas, las 
modificaciones permiten, en determinadas cond iciones, el suministro transfronterizo de 
servicios de seguros, que ante riormente estaba prohibido. 
 
11. ¿Los requisitos que deben cumplir las instituciones financieras están 
debidamente establecidos en la ley o tamb ién existen criterios discrecionales al 
momento de firmar el decreto presidencial?  
 
Brazil is undertaking every effort to complete the analysis concerning the ratification of the Fifth Protocol on Financial Services and is carrying out internal consultations regarding the matter. Current regulations in Brazil take into account the framework established by the Protocol.  
 WT/TPR/M/283/Add.1 
 
- 79 - 
 
Página 171, párrafo 4.139 
 Desde el último examen de las políticas  comerciales del Brasil, las condiciones 
paragraph la participación del capital extranje ro en instituciones financieras no se han 
modificado. En virtud del artículo 192 de la Constitución Federal y el artículo 52 de las 
Disposiciones Transitorias, mientras no se definan las condiciones paragraph la 
inversión extranjera no está permitido establ ecer nuevas dependencias de instituciones 
financieras domiciliadas en el exterior, y las personas físicas y jurídicas extranjeras no 
pueden invertir en el capital de institucio nes financieras brasileñas. No obstante, el 
artículo 52 también determina que por Decret o Presidencial pueden levantarse estas 
restricciones si se considera que una inversió n es de interés nacional. En la Exposición 
de Motivos Nº 311 del Ministerio de Hacienda, de 1995, se reconoció como asunto de 
interés nacional el establecimiento y el in cremento del capital de bancos nacionales y 
extranjeros. El Banco Central puede autorizar el establecimiento de nuevas instituciones 
financieras extranjeras al amparo de decret os presidenciales. Además, las restricciones 
no se aplican si las autorizaciones se conc eden en virtud de acuerdos internacionales o 
de condiciones de reciprocidad. 
 
12. ¿Puede Brasil explicar a qué se refi ere con "dependencias" de instituciones 
financieras domiciliadas en el exterior? ¿P or qué persisten estas restricciones a la 
participación de capital extranjero? ¿Se tien e planeado reformar esta normativa en el 
corto plazo? 
 In order to ensure financial stability (the 2007-2014 crisis highlighted the socioeconomic 
consequences arising from inadequately regulated financial systems), the Banco Central do Brasil 
– BCB (Central Bank of Brazil) is rigorous in the review and authorization process of financial institutions, without any distinction between domestic and foreign institutions – the focus is to 
ensure financial stability. Once incorporated in Brazil, the foreign financial institution will be 
treated as domestic. The rules and procedures for establishment are publicly available for consultation at the BCB website, under the Sisorf (National Financial System Organization Manual) link (http://www.bcb.gov.br /?NFSMANUAL). The applicants will  receive official responses and 
explanations for any rejections – including access to the full content of the process analysis at 
BCB, and they will have a specific timeframe for appeals. The "Presidential Decree" requirement to the establishment of foreign financial institutions is a constitutional provision – Article 52 of the 
Temporary Constitutional Provisions Act – ADCT (based infra is § 2 of art. 10 and art. 18 of 
Law 4595). It is noteworthy to highlight the restrictions have already been eased by the Presidential Decree 1996 (Decree unnumbered of December 9, 1996 – 
http://www.planalto.gov.br/ccivil_03/DNN/Anteri or%20a%202000/1996/Dnn4857.htm), when it 
became national interest the purchase of financial institutions non-voting shares by persons or entities domiciled or headquartered abroad. In order to conduct an impartial technical analysis, the BCB does not make distinction to the origin of capital and the in the practice the Presidential 
Decree follows the recommendation of the Central Bank. The Brazilian law determines the financial 
services have to be provided in Mode 3 – Commercial Presence, as described in the GATS (Article I.1.(c)). Every foreign financial institution that wants to provide services in Brazil is 
required to be also established in Brazil, abiding to Brazilian laws. Finally, there is no restriction to 
foreign capital participation, as it was well mentioned in P.4130 "In practice, the establishment of new foreign financial institutions has been allowed, and 17% of assets are in the hands of foreign 
banks." 
 WT/TPR/G/283  
Página 9, párrafo 2.27 
 La liberalización del mercado de reaseguros,  hecha posible por la Ley Complementaria 
Nº 126, de enero de 2007, creó un nuevo ma rco paragraph las compañías de reaseguros 
al abrir el sector a las compañías extran jeras y a las compañías con sede en el 
extranjero. Sobre la base de este nuevo reglamento, las operaciones de reaseguro y 
retrocesión pueden ser realizadas con la co mpañía de reaseguros local (establecida 
como sociedad de capital, con el único objeti vo de efectuar operaciones de reaseguro y 
retrocesión), con la compañía de reaseguros admitida (con sede en el extranjero, con 
oficina de representación en el Brasil, re gistrada en la SUSEP paragraph realizar 
operaciones de reaseguro y retrocesión); y con la compañía de reaseguros extranjera WT/TPR/M/283/Add.1 
 
- 80 - 
 
(compañía de reaseguros extranjera con se de en el extranjero sin oficina de 
representación en el Brasil también registrada como tal en la SUSEP). La expansión de este sector se ajusta a las expectativas y objetivos del Gobierno y cuenta con una 
participación significativa de compañías extranjeras. La consolidación de la 
liberalización del mercado de reaseguros ha  impulsado el desarrollo del sector de 
seguros interno al proporcionar productos más globales e innovadores y aumentar la 
competencia en el mercado local. 
 
13. ¿Tiene el gobierno de Brasil cifras sobre la participación significativa de 
compañías extranjeras en el mercado de reaseguros?  
The number of local reinsurers has more than doubled and several are awaiting final authorization 
by SUSEP. Competition has increased in local markets with innovative products, lower prices, larger coverage and higher quality. Several foreign companies are now established as local 
reinsurers. As to foreign reinsurers market share, the total amount of premiums ceded to 
occasional reinsures (foreign companies without a representative office in Brazil) increased from R$ 6.1 million in 2003 to R$ 183.6 million in 2012,  while the total amount of premiums ceded to 
admitted reinsurers (foreign companies with a representative office in Brazil) increased from 
R$ 2.5 million in 2004 to R$ 1.8 billion in 2012. The amount of premiums paid to local reinsurers (which include companies with foreign capital participation) increased from R$ 3.0 billion in 2003 to R$ 3.5 billion in 2012.  
 
Página 11, párrafo 2.38  
Tampoco hay requisitos de aprobación paragr aph llevar al Brasil capital extranjero. Sin 
embargo, todo el capital extranjero que en tre en el Brasil –incluidas las inversiones 
extranjeras directas y las inversiones de cartera, y el crédito y la financiación 
extranjeros– deben inscribirse en el regist ro del Banco Central. Esta inscripción se 
efectúa mediante formularios electrón icos de declaración en los módulos 
correspondientes del Registro Declarativo El ectrónico (RDE) del Sistema de Información 
del Banco Central (SISBACEN) . La repatriación de las inversiones y los ingresos 
relacionados con el capital extranjero, como la  liquidación de inversiones en acciones y 
obligaciones, los pagos de dividendos y los pagos correspondientes a préstamos 
extranjeros, se realizan tamb ién sin necesidad de una auto rización del Banco Central. 
 
14. Pareciera que la inscripción de los fluj os de inversión extranjera directa en el 
registro del Banco Central es de carácter obligatorio. ¿Podría Brasil detallar sobre los 
mecanismos de control paragraph verifi car la información proporcionada ? 
 There is ex post follow-up on the registries by the Central Bank. Foreign capital inflows are registered with the Central Bank in a declaratory and individualized form, in local or foreign 
currency. The Central Bank registration is intended to monitor and evaluate the capital flows. In 
relation to direct investment, after complying with the Central Bank and other government agencies formal registration requirements, includin g the tax authority, there is no restriction for 
international transfers to and from Brazil, for capita l, profits, dividends, fees and expenses related 
to investment. Regarding the portfolio investment, to make investments in the country, a non-resident investor must appoint a representative who will be responsible for providing information 
and records to the Central Bank and the Securities Commission. If the representative is an 
individual or a non-financial corporation, the investor must also appoint an institution authorized to operate by the Central Bank to be jointly responsi ble for the obligations of the representative. The 
appointment will be formalized in a contract of representation. The Central Bank is also required 
by federal law to maintain a registry of information on all bank account holders that can be 
accessed in case of suspicion of involvement in criminal activity. The Central Bank's anti-money laundering (AML) unit DECON supervises compliance on AML regulations. WT/TPR/M/283/Add.1 
 
- 81 - 
 
DOMINICAN REPUBLIC 
1. Con relación a las licencias de importación (página 10, párrafo 14, del informe de 
la secretaría), deseamos saber si Brasil tien e alguna facilidad de Ventanilla Única de 
Comercio Exterior paragraph manejar los permisos de importación emitidos por las 
diversas instituciones del estado que inci den en la autorización de despacho de 
mercancías. ¿En caso que no exista tal si stema, tiene Brasil algún proyecto paragraph 
proveer esta facilidad?   
 
As a rule, the Brazilian importation regime does not require licensing. However, for some products, automatic import licensing and non-automatic import licensing are foreseen by means of the Integrated System of Foreign Trade (SISCOMEX). All import licenses shall be required through the 
Integrated System of Foreign Trade (SISCOMEX). The importer may require the import licensing 
directly from his/her institution if it is registered in SISCOMEX. It is also possible for authorized representatives to require the import licensing through the system. SISCOMEX is under 
improvement to better comply with single window requirements. 
 2. En relación al párrafo 2.19, página 35, n os gustaría saber ¿Qué tipo de sanciones 
se aplica a los inversionistas extranjeros que no realizan su inscripción en el "Foreing 
Direct Investment Module (RDE-IED)".  The Law 4,131 (1962) establishes penalties for lack of information and sending of incorrect, 
incomplete or overdue information. CMN Resolution (4,104/2012) establishes criteria for the 
application of penalties. There is ex post follow-up on the registries by the Central Bank.  
3. En lo que se refiere a ayuda paragraph el comercio, Capítulo 2, párrafo 2.6, 
página 43:   
- ¿Cuáles son los mecanismos que la ag encia de cooperación Brasileña tiene 
establecidos paragraph que los países del Caribe puedan tener acceso a los 
fondos destinados a la ayuda paragraph el comercio?  
 
Detailed information on the programas maintained  by the Brazilian Cooperation Agency may be 
found at www.abc.gov.br.  
- ¿Se tienen identificados temas prioritarios de ayuda paragraph el comercio 
paragraph la región del Caribe, o el Pa ís puede someter solicitudes según su 
necesidad? 
 
Detailed information on the programas maintained  by the Brazilian Cooperation Agency may be 
found at www.abc.gov.br.  
 
4. Respecto al Párrafo 3.131, página 74, acerca de las Zonas Procesadoras de 
Exportación (EPZ), nos gustaría que expliq uen cómo funciona este mecanismo y qué 
sucede si no se cumple el mínimo (8O%) exportable.   
 
Brazilian EPZ are characterized as industrial area s intended for exports. Companies established in 
Brazilian EPZ may import or purchase goods and services in the local market with suspension of 
import duties and the IPI, COFINS, PIS, and AFRMM taxes. These companies must export 80% of 
their gross income sales of goods. In the case of  not fullfilling the 80% requirement all suspended 
taxes and applicable fines must be paid with interest at the SELIC rate.  
OTRAS PREGUNTAS 
 Régimen de Inversión Extranjera 
 
5. En materia de captación de inversión extranjera Brasil es siempre referente como uno de los principales receptores, a pe sar de no tener en vigencia acuerdos 
internacionales de inversión. 
 WT/TPR/M/283/Add.1 
 
- 82 - 
 
Tal como indican, el país ha firmado 14 Acue rdos Bilaterales de Inversión y 2 Protocolos 
de Inversión, los cuales no entraron en vigencia debido, entre otras, a las 
preocupaciones manifestadas por el Co ngreso respecto del contenido de estos 
acuerdos.2 
 
Considerando la importante cantidad de inve rsión extranjera en Brasil no obstante la 
ausencia de acuerdos internacionales de in versión, y las preocupaciones respecto del 
contenido de los mismos, interesa saber si el  tema relativo a la firma y/o entrada en 
vigor de estos acuerdos, es una política definida de Estado o dependerá de una 
determinación respecto de cada acuerdo o instrumento futuro de manera particular? 
 
Brazil has signed 14 bilateral investment agreemen ts (BITs). Brazil has negotiated two MERCOSUR 
protocols on investment: the Buenos Aires Protocol (extra-MERCOSUR), and the Colonia Protocol (intra-MERCOSUR). However, none of these agreements  or protocols is in force, either because the 
Executive did not submit the agreement to Congress (e.g. Colonia Protocol) or because it withdrew 
the agreement before Congress had voted (e.g. Buen os Aires Protocol and the BIT with France). 
This reflects the concerns held in Congress about the constitutionality of the agreements with 
respect to issues such as upholding the principle of full equality for investors under the law. The 
authorities note that concerns raised by Congress with respect to the BITs signed by Brazil included: (i) the preferential treatment accorded to foreign investors as a result of the BITs dispute settlement mechanisms; (ii) the broad definition of investment contained in the BITs; 
(iii) the requirement in the BITs for prompt pa yment of expropriations in freely convertible 
currencies, which was considered incompatible with the Federal Constitution, which specifies that expropriations for reasons of agrarian reform ar e to be compensated by Agrarian Reform Bonds, 
for example; and (iv) the ambiguity caused by the concept of indirect expropriation.  
 6. Considerando que el país no es parte de l Centro Internacional paragraph el Arreglo 
de Diferencias relativas a Inversiones (CIA DI), contemplan en lo inmediato unirse a 
dicha instancia?  At the moment, the Brazilian Government do es not envisage membership of ICSID. 
 
7. Tal como se indica en el reporte, en Br asil, la inversión en todas sus formas debe 
ser registrada ante el Banco Central. 
 
En ese sentido, interesa saber si la ley disp one algún tipo de penalidad o sanción por la 
falta de registro de la inversión, y si existe  algún tipo de mecanismo de supervisión a la 
inversión luego de su registro.  
 The Law 4,131 (1962) establishes penalties for lack of information and sending of incorrect, incomplete or overdue information. CMN Resolution (4,104/2012) establishes criteria for the 
application of penalties. There is ex post follow-up on the registries by the Central Bank. 
                                               
2 Las Preocupaciones principales giran en torno al Me canismo de Arbitraje Invers ionista-Estado y el trato 
preferencial que concede el mismo a los inversionistas extranjeros; la amplia definición de inversión, el 
requisito de pronto pago de las expropiaciones realizadas, en moneda libremente convertible, y las 
incompatibilidades respecto de la Constitución Federal; así como la ambigüedad causada por el concepto de expropiación indirecta.  WT/TPR/M/283/Add.1 
 
- 83 - 
 
ECUADOR 
WT/TPR/S/283 
 2  Regimenes De Política Comercial Y De Inversiones 
 
De conformidad con el Capítulo 2, página 42, párrafo 2.29., se menciona que Brasil ha 
firmado 14 acuerdos bilaterales sobre inve rsión. Ha negociado dos protocolos del 
MERCOSUR relativos a las inversiones: el Protocolo de Buenos Ai res (referente a las 
inversiones procedentes del exterior) y el  Protocolo de Colonia (referente a las 
inversiones dentro del MERCOSUR). No obstante, ninguno de estos acuerdos o 
protocolos está en vigor, debido a que el po der ejecutivo no presentó el instrumento al 
Congreso (por ejemplo, el Protocolo de Colo nia) o porque lo retiró antes de que el 
Congreso lo votara (por ejemplo, el Protoc olo de Buenos Aires y el acuerdo bilateral 
sobre inversión concluido con Francia).  
 
1. ¿Podría informamos Brasil si esta situac ión ha influido, de alguna forma, en sus 
flujos de inversión extranjera directa, y cu ándo Brasil aprobaría dichos instrumentos? 
 
The non adoption of those instruments had no influence on financial flows of international investment towards Brazil. Those financial flows have augmented substantially since the withdrawal of the respective projects from the Brazilian Congress. The financial flows of 
international investment towards Brazil are basically correlated to international liquidity and to the 
fundamentals of the Brazilian economy. Thus, th is indicates that the international investors' 
perception about regulatory risk on Brazilian ec onomy have improved significantly and dispense 
such instruments of legal protection. 
 2. De conformidad con el Capítulo 2, pá gina 43, párrafo 2.32 se menciona que el 
Quinto Protocolo fue aprobado en segunda lectura en el Congreso brasileño en el 
año 2008, pero sigue pendiente de plena aproba ción. Según se ha señalado en sucesivas 
notificaciones al Comité del Comercio de Se rvicios Financieros, se están llevando a cabo 
los correspondientes procedimientos internos y no es posible indicar una fecha exacta 
paragraph su ultimación. 
 Please refer to footnote 24, page 49, on the Secretariat's Report. 
 
3  Políticas Y Prácticas Comerciales, Por Medidas  
Capítulo 3, página 75, "Punto 3.2.9 sobre las medidas sanitarias y fitosanitarias: en el 
párrafo 3.86 indica que "la Secretaría de Defe nsa Agropecuaria (SDA), es responsable de 
proteger la salud de los animales y preser var los vegetales. La SDA está facultada 
paragraph controlar los aspectos sanitarios y fitosanitarios de la producción y el 
comercio internacional de todo tipo de gana do, frutas, legumbres y hortalizas, cereales, 
plantas, medicamentos paragraph uso veteri nario, plaguicidas y sus componentes; 
también registra e inspecciona product os y actividades en los que se emplean 
organismos modificados genéticamente, en no mbre de la Comisión Técnica Nacional de 
Bioseguridad (CTNBio), que expide la s autorizaciones pertinentes."  
 
3 .  A n t e  e l  c a s o ,  e s  d e  p a r t i c u l a r  i n t e rés paragraph AGROCALIDAD conocer sobre la 
normativa, requisitos, inspección y contro les que realiza la SDA paragraph dar la 
certificación de los productos que emplean organismos vivos modifi cados (OVM) y cómo 
Ecuador puede saber si los productos que prov ienen de Brasil tienen la declaración de 
ser un transgénico, ya que en nuestra Constitución indica su prohibición." 
 The matter is regulated by Decree 4,680 / 2003. 
 
Capítulo 3, página 77, " El párrafo 3.92 in dica que las plantas y productos vegetales 
comercializados en Brasil, incluidas las import aciones, deben responder a características 
relacionadas con la calidad (por ejemplo, ta maño, pureza y desarrollo) establecidas en 
el sistema de clasificación del Brasil, siempr e que haya una norma específica en vigor a 
tal efecto). WT/TPR/M/283/Add.1 
 
- 84 - 
 
4. Respecto a este punto, existe la inqu ietud de saber qué hacen o qué normativa se 
acoge paragraph calificar la calidad de un prod ucto de interés comercial de otro país que 
puede ser nuevo e innovador y que aún no es tá establecido en el sistema de Brasil." 
 
Si no hay normativa paragraph calificar la calidad de un producto establecida en Brasil, el producto 
puede ser comercializado sin restriciones de ese tipo.  
5. Párrafo 3.1 Ampliar la justificación del aumento del promed io aritmético del ad 
valorem  producto del cambio de clasificación como a las excepciones temporales al 
Arancel Externo Co mún del MERCOSUR. 
 
El incremento de 0,2 puntos porcentuales en el  arancel NMF promedio entre 2008 y 2012 se debió 
a la suma de dos factores.  
Por una parte, a los cambios ocasionados por la incorporación, a la Nomenclatura Común del 
M E R C O S U R  –  N C M  y  s u  r e s p e c t i v o  A r a n c e l  E x t e r n o  C o m ú n ,  d e  l a  V  E n m i e n d a  a l  S i s t e m a  Armonizado de Codificación y Designación de Mercancías (SA), que ocasionaron una adición de 
266 códigos arancelarios, como muestra la tabla 3.2 - Structure of the MFN tariff schedule, 2008 
and 2012, p. 50 del Reporte del Secretariado. El resultado de la acomodación de alícuotas en virtud de la eliminación e creación de códigos fue una muy ligera suba en el promedio.  
Por otra parte, cabe aclarar que, a partir de octubre de 2012, tuvo inicio la suba arancelaria 
aplicada a 100 códigos de la NCM, al amparo de la Decisión No. 39/11 de l Consejo Mercado Común 
del MERCOSUR, relativa a Acciones Puntuales en el Ámbito Arancelario por Razones de 
Desequilibrios Comerciales Derivados de la Coyuntura Económica Internacional. En Brasil, la 
medida fue adoptada por la Resolución Camex No. 70/12.  
6. Párrafo 3.2 Ante la complejidad del sist ema fiscal, ¿no existe alguna propuesta de 
simplificación de la misma?  Brazilian Government is committed to continuously promoting a better business climate for 
domestic and international investors by seeking to rationalize and to simplify tax obligations and 
reducing administrative and operational costs for taxpayers. It is worth mentioning that there are on-going plans with the intention of simplify ing the most elaborate taxes – PIS and COFINS 
(Federal taxes) and ICMS (State taxes).  
 It must be highlighted the endeavor of the Braz ilian government to reduce the tax burden on 
capital goods. There was a permanent reduction of the IPI, gradual reduction of the period for 
return of PIS / COFINS on capital goods, from 12 months to immediate recovery, and, besides that, the increasing numbers of "ex-tarifários" (special administration of the import tariffs). Moreover, in December 2012, the government appr oved an accelerated accountancy depreciation 
for up to date brand new machinery, equipmen t, devices and instruments, purchased between 
September and December 2012.  
7. Párrafo 3.18 ¿Se utilizan medios de inspe cción no intrusivos dentro de los canales 
de examen fiscal?  
En lo que respecta las cargas en contenedor, Bras il ya utiliza escáners de rayos X en algunos de 
los principales puntos de entrada en el país, pero su uso es todavía limitado a la inspección de containers declarados como vacíos detección de mercancía oculta, estupefacientes e armas.  
El uso regular de este tipo de tecnología paragraph soporte o sustitución de la actividad de 
reconocimiento físico de cargas seleccionadas durante el despacho de aduanas, como medida de facilitación comercial y perfeccionamiento de esta actividad, está previsto paragraph ser 
implementado en 2014. Esto en razón de la necesidad de que la inspección sea precedida de un 
estudio de riesgos eficiente y de contar con escáners más modernos.  
La legislación actual determina que hasta el final del 2013 todos los recintos aduaneros con 
movimiento de cargas superior al equivalente a 100 contenedores/día deberán disponer de escáners paragraph inspección no invasiva, los cuales serán utilizados principalmente paragraph agilizar y mejorar el flujo del despacho 
 WT/TPR/M/283/Add.1 
 
- 85 - 
 
8. Párrafo 3.29 ¿Qué acuerdos comerciales Brasil no ha notificado a la OMC y por 
qué?  Please refer to footnote 24, page 49, on the Secretariat's Report. 
 
9. Párrafo 3.43 ¿Hay algún contingente pa ragraph los productos agropecuarios en los 
acuerdos MERCOSUR-Países Andinos? 
 
Brasil no ha establecido contingentes paragraph los productos agropecuarios originarios de los países andinos. Todos los productos agropecuarios llegaran al 100% de reducción arancelaria.  
10. Párrafo 3.55 ¿Cuál es el criterio que se utilizó paragraph dete rminar los productos 
que requieren licencia automática y no automática?  
The products subject to automatic licensing are listed in the Administrative Treatment of 
SISCOMEX and can also be found on the web page of the Ministry of Development, Industry and Foreign Trade (www.mdic.g ov.br). Products under the special customs regime of drawback are 
also subject to automatic licensing. The products subject to non-automatic licensing are listed in 
the Administrative Treatment of SISCOMEX and can also be found on the web page of MDIC. In their majority, they are products which may cause damage to human, plant or animal health; products capable of causing environmental damage; products classified as weapons or made for 
warlike purposes; products subject to non-tariff quotas as established in the agreements of the 
Uruguay Round; products subject to tariff quotas; and products subject to trade remedies measures established in accordance with the WTO agreements. Licensing is applied to all origins, 
without distinction. 
 The purpose of automatic licensing is to allow, through information collected by the SISCOMEX, 
the statistic follow-up of trade flows of drawback operations, involving legal suspension of taxes or 
some products of interest to the Foreign Trade policy.  Most import licensing is statutorily required. For most goods mentioned in the relevant legislative 
texts, legal coverage is defined within and is not subjected to administrative discretion. Statutorily 
required licensing cannot be abolished without legislative approval. Other products are left to administrative discretion. The list of products subjected to licensing is available at the Ministry of 
Development, Industry and Foreign Trade's website: www.mdic.gov.br. 
 11. Párrafo 3.90 ¿A qué países y que prod uctos aplica mayores medidas sanitarias y 
fitosanitarias Brasil, basado en su análisis del riesgo? 
 Los procesos de análisis de riesgo se realizan de acuerdo a las directrices internacionales pertinentes paragraph establecer los requisitos de importación en la medida necesaria paragraph 
evitar la entrada de plagas en Brasil. No hay mayores o menores medidas sanitarias y 
fitosanitarias, sino se aplica sólo lo necesario paragraph lograr el nivel adecuado de protección paragraph el país.  
 
12. Párrafo 3.91 ¿Bajo qué consideraciones se decide los productos que deben cumplir 
con requisitos adicionales? ¿A qué productos se aplica requisitos adicionales, como la 
autorización previa de cada envío al Brasil y la inscripción en un registro? 
 Las operaciones de importación son registradas y controladas por el "Sistema de Comercio Exterior" (SISCOMEX). Los controles del MAPA se rigen por la normativa nacional y se efectúan a 
traves de licencias no automáticas. Ese sistema está constantemente siendo mejorado. 
 13. Párrafo 3.122 ¿En qué página web se puede consultar información adicional del 
RECOF? 
 The website http://www.receita.fazenda.gov.br/ has all the information on federal taxes and tax 
regimes in Brazil. 
 14. Párrafo 3.126 ¿Puede ser beneficiario  del RECAP una empresa multinacional? 
 WT/TPR/M/283/Add.1 
 
- 86 - 
 
Yes, the report states that some 265 companie s are already benefitting from RECAP, including 
several multinational companies.  The main beneficiary economic sectors are as follows: 
 
Qty. Sector 
187 Manufacturing 
35 Mining and quarrying 
18 Agriculture, forestry and fishing 
15 Wholesale trade, except of motor vehicles and motorcycles 
 
15. Párrafo 3.151 ¿Qué bienes son considerados de Equipo Ligeros, en el tema de 
Seguros y Garantías? 
 Detailed information may be found at  http://www.sbce.com.br/aEmpresa.asp. 
 
16. Párrafo 3.169 ¿Cuándo se aplicará la nueva modalidad de multas paragraph las empresas que cometan infracciones? 
 
The fining policy is applicable to the company as a private person and to the companies' executive members. The new fines imposed for anticompetitive transactions range between 0.1 and 20% of the company's gross turnover covering the financial year preceding the beginning of the 
authority's investigations.  The previous law provid ed for a fining range of 1 to 30% of the gross 
revenue. The executive members of the company are liable to a fine ranging from 0.1 to 20% of the fine imposed to their company. These rules are already being used. 
 
17. Párrafo 3.182 ¿Dónde se puede encont rar más información sobre estos programas 
de incentivos industriales? ¿Dónde encont rar cuales son clausulas paragraph poder 
ingresar quienes se beneficiar on (detalles) y porqué se decidió a llevar a cabo estos 
programas?  Detailed information may be found  at www.brasilmaior.mdic.gov.br. 
 
18. Párrafo 3.187 ¿Dónde se puede encontra r información sobre el impacto que tienen 
estos programas regionales en la economía y que sectores han sido los que más los han 
aprovechado? ¿Estos programas están diri gidos a empresas nacionales o también 
pueden acceder empresas que tengan capital del exterior? 
 
Benefits apply equally to foreign and domestic investors, as stated in paragraph 3.187, page 88, of 
the Secretariat Report. The full impact of these regional programs in the economy has not yet been accessed.  
19. Párrafo 3.194 Los programas FINAM, FINO R y FUNRES que se prevé que finalicen 
el 31 de diciembre del presente año ¿tienen en plan alguna renovación o se llevará a 
cabo alguna substitución por otros programas? 
 
The question falls outside the period under review.  
20. Párrafo 3.197 Cuadro 3.15 ¿A qué se de bió la baja en los préstamos de FCO en 
el 2009 y de FNO en 2011? 3.215 ¿Qué diferenc ia hay entre TJLP y el TJPL? ¿Cuál es tu 
tipo de interés?  
Although a definite assessment is not yet availa ble, as a number of effects may have contributed 
to the fluctuations pointed out including, but not limited to, seasonal and climatic factors as well as external ones such as the effects of the international crisis. 
 
21. Párrafo 3.223 ¿Cuáles son las condiciones que deben cumplirse paragraph suspender la aplicación de los trib utos federales y de los Estados? 
 WT/TPR/M/283/Add.1 
 
- 87 - 
 
In general terms, any suspension of taxes must be authorized by law, which shall establish the 
specific conditions for a company to request the be nefit. In other words, each regime has its own 
rules for qualification.  
22. Párrafo 3.251 En las licitaciones internacionales del año 2011, ¿De qué países son 
la empresas extranjeras que participaron, a qué sector se enfocaron y con qué bienes o 
servicios lo hicieron? 
 
It is not possible to give details from all international bidding process. However, at Comprasnet website (www.comprasnet.gov.br) it is possible to  consult the quotas and the results of bidding 
processes.  
 
23. Párrafo 3.270 ¿Cuáles son los docume ntos anexos que se presentan junto a la 
solicitud de patentes? 
 
The documents an applicant shall present when a pplying for a patent are: (i) a request of a 
patent; (ii) a filled standard form; (iii) a descriptive report; (iv) one or more claims; (v) drawings 
(if applicable); (vi) biological sequencing list (if applicable); (vii) an abstract; and (viii) the receipt 
of payment of the deposit tax.   24. Párrafo 3.271 ¿Cuánto debe pagar el so licitante por concepto de impuesto de 
patente? 
 The tax for an initial application in paper is R$ 235,00, value which is reduced to R$ 95,00 in case 
of (i) individuals, (ii) micro-entrepreneurs, (iii) micro, small and cooperative companies, 
(iv) educational and research institutions; and (v) non-profit entities. In addition to that, a granted patent also requires other taxes, such as annuities, to be paid by the applicant in order to keep it 
valid. The full list is available at INPI's web-site. 
 25. Párrafo 3.299 ¿Cuáles son las sancione s paragraph quienes cometan infracciones 
al derecho de autor? 
 
Please refer to paragraph 3.305 of the Secretariat's Report for the penalties available against violation of copyrights. 
 
4  Políticas Comerciales, Por Sectores  
En el Capítulo 4, página 169, párrafo 4.13 0 se señala que el Brasil participó en las 
negociaciones de la OMC sobre servicios financieros; aunque no ha ratificado el Quinto 
Protocolo, las modificaciones introducidas  en su legislación sobre seguros en 2007 
pueden hacer posible esa ratificación. La s modificaciones permitirían en ciertas 
condiciones, el suministro transfronterizo de servicios de seguros, que anteriormente 
estaba prohibido.   
2 6 .  E n  v i r t u d  d e  l o  e x p u e s t o ,  ¿ p o d r í a  i n d i carnos Brasil si existe alguna disposición 
paragraph la plena aprobación de este Protoc olo y esta no aprobación estaría afectando 
el suministro de un determinado servicio? 
 
Brazil is undertaking every effort to complete the analysis concerning the ratification of the Fifth Protocol on Financial Services and is carrying out internal consultations regarding the matter. Current regulations in Brazil take into account the framework established by the Protocol. 
 
27. De conformidad con el Capítulo 4, pági na 169, párrafo 4.129. ¿Podría citar Brasil 
otras medidas adoptadas en el sector fina nciero, a parte de la disminución de los 
diferenciales de los tipos de interés y la ad aptación de la regulación de los servicios 
financieros a los clientes de  bajos ingresos, que le han permitido sostener un sector 
financiero saludable y en evolución? 
 
The Central Bank of Brazil is addressing the main spreads components with special emphasis on four aspects: Firstly, Information System of Credit of Central Bank (SCR), which is a instrument for registration and query information about the loans, sureties and guarantees and credit limits 
granted by financial institutions to individuals and companies in the country – currently, the WT/TPR/M/283/Add.1 
 
- 88 - 
 
system records every customers operation starting from BRL1,000.00 (this system allow the 
financial system to identify and properly evaluate the risks). Secondly, the "Cadastro Positivo" ("Positive Credit Bureau"), an expanded credit bu reau that register the history of payments of 
credit operations, utilities' bills and other debts of households and enterprises – providing 
information that will help banks to identify good borrowers which in turn is expected to allow for 
further spread reductions. Thirdly, the New Bank ruptcy Law that emphasizes on judicial and 
extrajudicial recovery of businesses thus facilitate the repayment of credit operations and the 
recover of assets, reducing the risks. Finally, in order to foster competition, Central Bank 
regulation improves the comparability of bank services and the portability of credit operations. This process has been benefited from progress on the de-indexation of Brazilian economy, 
especially on the elimination of a fixed minimum interest rate stipulated by legal regulation to 
savings account "caderneta de poupança". 
 28. ¿Podría indicarnos Brasil en qué consiste "la adaptación de la regulación de los 
servicios financieros a los clientes de baj os ingresos" incluida en el capítulo 4, 
párrafo 4.128, página 169 y si únicamente los clientes de bajos recursos han sido 
objetos de regulación?  
 
All clients have been regulated. In 2009, Central Bank of Brazil (BCB) formulated the Financial Inclusion project, the objective of which is to rethink, together with those already involved, the model of ﬁnancial inclusion in the country, with the ai m of providing the Brazilian population with 
access to ﬁnancial services that are adequate to their needs. In November 2011 the National 
Partnership for Financial Inclusion (PNIF) was created. This partnership aims to promote effective ﬁnancial inclusion in Brazil, by addressing these new challenges in a manner consistent with the 
G20 Principles for Innovative Financial Inclusion. This partnership is a network of public and 
private actors engaged in coordinated efforts to promote appropriate ﬁnancial inclusion in Brazil, 
including (i) the Ministry of Finance (MF); (ii) the Federal Public Prosecutor's Office (MPF); (iii) the 
Consumer Protection Department (DPDC) of the Ministry of Justice (MJ); (iv) the Consumer 
Protection Commission of the Chamber of Deputies ; (v) the Ministry of Social Development (MDS); 
(vi) the Ministry of Agricultural Development (M DA); (vii) the Ministry of Labor and Employment 
(MTE); (viii) trade associations, such as the Organization of Brazilian Cooperatives (OCB), the 
Brazilian Federation of Banks (F ebraban), the Brazilian Association of Banks (ABBC), the Brazilian 
Association of Credit Societies for Micro-entrepreneurs and Small Enterprises (ABSCM), the Brazilian Association of Microcredit Entities (A BCRED), the Brazilian Association of Development 
Financial Institutions (ABDE); (ix) the Brazilian Service of Support for Micro and Small Enterprises 
(Sebrae); and (x) the Permanent Forum for Micro and Small Enterprises. Support was also provided by the academic community, by other national entities, including the President's 
Secretariat for Strategic Affairs (SAE-PR) and the Brazilian Institute of Geography and Statistics 
(IBGE), and by international organisations, including the Alliance for Financial Inclusion (AFI), the Consultative Group to Assist the Poor (CGAP) and the Bill & Melinda Gates Foundation. The efforts to increase and improve access to ﬁnancial services in the country, have resulted in the 
identi ﬁcation of new challenges that must be addressed in order to move forward with ﬁnancial 
inclusion and guarantee the quality of ﬁnancial services provision. These new challenges include: 
(i) adapting ﬁnancial offerings to the needs of busine sses and individuals; (ii) improving the 
ﬁnancial literacy of Brazilians as a means of preventing over-indebtedness; (iii) encouraging 
household saving; (iv) strengthening consumer protection mechanisms for ﬁnancial service users; 
(v) promoting the sustainable development of mi crocredit for income generating activities; 
(vi) guaranteeing the stability and ongoing impr ovement of the country's correspondent banking 
model; and (vii) improving measurement and data on ﬁnancial inclusion to assess the situation in 
Brazil. The details of the initiatives related to financial inclusion can be seen in the following text:  
Initially the topic of microfinance gained importance in the Central Bank of Brazil (BCB). Between 
2002 and 2008 we conducted nine seminars, with the objective of spreading the importance of the theme and calling the attention of public and privat e sectors to the subject. With that, we aimed in 
bringing together the main national stakeholders  w i t h  a  r e l e v a n t  r o l e  i n  t h e  d e s i g n  o f  n e w  
strategies for the field of microfinance.  
In 2009 the Central Bank started to discuss microfinance on another level, focusing on the 
diagnosis of obstacles and challenges (strengths and weaknesses) of the microfinance sector in Brazil, and building joint solutions (through a netw ork of stakeholders). In this new context, we 
put efforts in the promotion of effective access and usage of financial services by the public, both 
individuals and small business. Since then, we have held four Forums on Financial Inclusion. Thus, WT/TPR/M/283/Add.1 
 
- 89 - 
 
the promotion of financial inclusion of the population has grown to become one of BCB's strategic 
objectives, contributing to the efficiency of th e financial system. During this period, several 
improvements were made in the regulation. Among the most recent, we highlight the creation of 
new types of credit cooperatives: the ones with free admission, micro-entrepreneurs of varied 
business lines, and businessmen linked to a trade union or employer. 
 In 2010 the BCB launched the 1st Report on Financial Inclusion, covering aspects of Brazil's 
macroeconomics, the composition of the formal financial system, statistics regarding points of 
access to financial services, usage (credit and deposit/savings accounts), and finally the challenges for financial inclusion in Brazil. (The report is available online at http://www.bcb.gov.br/?ENGLISH). One of the interest ing findings of this first report was that 
banking correspondents were the most popular ch annel for the payment of bills and taxes, and 
also for bank transfers.  
In 2011 we proceeded with a review of the report, launching the 2nd Report on Financial Inclusion, 
trying to focus on the developments from the po pulation's perspective, for example, finding the 
number of people who actually uses credit in Brazil. The report presented also some data on 
quality, like the average interest rates paid by companies, as well as the evolution in the last 
decade in terms of geographic coverage of acce ss channels. Finally, the report launched a first 
version of the Financial Inclusion Index, comprised of access and usage indicators.  
In November 2011 the BCB launched the National Partnership for Financial Inclusion (PNIF), a 
network of public and private actors engaged in coordinated actions for the promotion of adequate 
financial inclusion of the Brazilian population. The PNIF is focused on three objectives: to expand 
and improve the population's access to financial services, to promote financial responsibility and 
access to information about financial services through financial education and increasing transparency, and to act so that the supply of financial services is more appropriate to the needs 
of the economy and the population. 
 After the objectives of the partnership were defined, the actions needed to achieve them were identified, culminating in the Action Plan for Strengthening the Institutional Environment, which 
deals with three priority lines: diagnosis, regulation, and education and transparency. Based on 
the objectives of the PNIF and these three priority  lines, eight specific actions were established. 
The eight actions to be implemented between 2012 and 2014 are as follows: 
 
1. Improve the regulatory framework of microcredit and institutions specialized in 
microfinance, for adequate support to micro-entrepreneurs, as well as to micro and 
small enterprises (action in progress). 
 
Coordinating entities: BCB, Ministry of Finance (MF), and Ministry of Justice (MJ).  
Purpose: To contribute to the expansion of productive microcredit in Brazil and to 
strengthen the role of specialized microfinance institutions in the financial inclusion of entrepreneurs, micro and small enterprises. 
 
Current Stage: two resolutions already launched: – Resolution 4152/2012, which defines the specific methodology featuring a microcredit operation, distinguishing it 
from other lines of credit to low-income customers, and Resolution 4153/2012, which 
enhances the targeting rules for micro-entrepreneurs and low-income customers.  
2. Encourage the diversification and improv ement of financial services, making them 
more suitable to the needs of the population. 
 
Coordinating entities: BCB, MF, National Superintendence of Pension Funds (Previc), 
and Superintendence of Private Insurance (Susep). 
 Purpose: To assist the Brazilian population, in particular the low-income portion, to 
achieve increased access to financial services, appropriate to their needs, including 
savings instruments, insurance and pensions.  
3. Define legal and regulatory framework for mobile payments (action in progress). 
Coordinating entities: BCB and Ministry of Communications (MC). WT/TPR/M/283/Add.1 
 
- 90 - 
 
Purpose: To enable the provision of payment services via mobile phones and other 
devices connected to the mobile network, in an environment of competition among providers, and to ensure consumer confid ence and efficiency in service delivery. 
 
Current Stage: developed in conjunction with MC and the Brazilian Agency of 
Telecommunications (Anatel), a draft of a new law providing on payment arrangements and payment institutions, members of the Brazilian Payment System 
(SPB), with the aim of promoting the financial inclusion of the population currently 
without access to bank accounts. 
 
4. Strengthen the network of channels serving the population (action in progress). 
  Coordinating entities: BCB, MF. 
  Purpose: Troubleshoot barriers to a balanced dissemination of access channels to 
financial services, boosting the capacity of the financial system. 
 
Current Stage: Already launched the Resolution 4072/2012, which simplifies and 
eases the installation of points of access, allowing the offering of services more suited 
to the needs of the local public.  
5. Contribute to the promotion of financial education. 
 
Coordinating entities: BCB, Previc, Securi ties and Exchange Commission of Brazil 
(CVM), Susep, MJ, Ministry of Social Development (MDS), and the Brazilian Service of 
Support for Micro and Small Enterprises (Sebrae). 
 Purpose: In line with the National Strategy for Financial Education (ENEF), to improve 
 people's decision-making in their relationship with financial institutions. 
 
6. Intensify the dissemination of financial consumer rights and conflict-solving 
alternatives (action in progress). 
 
Coordinating entities: BCB, Previc, CVM, Susep, Federal Prosecutor (MPF), MJ.  
Purpose: Facilitate financial consumers' kn owledge of their rights and the procedures 
for solving conflicts, increasing safety for the use of financial services.  
Current Stage: publishing newsletters (Consumption and Finance) in partnership with 
the MJ's National Consumer Secretariat (Senacon). Creation, by the BCB, of a specific area of Institutional Relations and Citizenship (Direc). Negotiating the definition of an action plan to be performed in the years 2013/14, under the Cooperation Agreement 
with Senacon. Performing surveys regardin g the over-indebtedness of the population. 
 
7. Improve the methodology used in the study of financial inclusion and incorporate 
quality indicators (action in progress). 
 
Coordinating entities: BCB, Previc, Susep. 
 
Purpose: To strengthen the diagnostic methodology and monitoring of the Brazilian reality, in order to use better information in the action-structuring for the promotion of financial inclusion. 
 
Current Stage: Ongoing reformulation of the Index of Financial Inclusion. Expected publication of the new index of Financial Inclusion in November 2013. Formulation, 
within the Alliance for Financial Inclusion, and under the coordination of BC, of a set of 
quality indicators of financial inclusion in a number of countries. 
 
8. Conduct researches on the behavior and perceptions of the population regarding the 
use of financial services (action in progress). 
 
Coordinating entities: BCB, Previc, CVM, Su sep, Brazilian Statistics Institute (IBGE), 
The President's Secretariat of Strategic Affairs (SAE), MDS. WT/TPR/M/283/Add.1 
 
- 91 - 
 
Purpose: To increase the knowledge about the access and use of financial services, 
barriers to the process of inclusion, and quality of service based on users' information.  Current Stage: Talks held with the Institute for Applied Economic Research (IPEA), 
which is to perform a research on financial inclusion in 2013. Establishment of 
partnerships in order to conduct other surveys. Ongoing discussions regarding the progress of the Working Group with IBGE, aiming at the incorporation of issues 
relating to financial inclusion in regular national statistics. 
ECUADOR (Follow-up questions) WT/TPR/S/283  
 
1  Ambiente Económico 
 1. Párrafo 1.3 Página 16: Sobre las medi das que Brasil ha implementado paragraph 
dinamizar su competitividad, las que incl uyen: un aumento temporal de aranceles, 
incremento de márgenes de preferencia a bienes y servicios objeto de compras gubernamentales y mayores créditos a las ex portaciones; ¿podría Brasil explicar la 
compatibilidad de estas medidas con el sistema multilateral del comercio y bajo qué 
normativa del MERCOSUR se amparagraph la  implementación de dichas medidas? 
 The measures adopted by Brazil related to the temporary increase of the Common External Tariff 
(CET) and to the margins of preference to goods and services in government procurement are all 
in compliance with both WTO and MERCOSUR rules.  
The temporary increases of import duties due to trade imbalances caused by the international 
economic crisis are based in the MERCOSUR Common Market Council Decision No. 39/11. The rates were raised respecting WTO bound levels. 
 
Brazil does not have any international commitment relating to government procurement. The MERCOSUR Protocol is still in the process of negotiation. Brazil is not a signatory to the Government Procurement Agreement (GPA) of the WTO.  Brazil's position is grounded on Article III, 
Section 8, paragraph (a) of the GATT, which explicitly excludes government procurement from the 
obligations relating to national treatment. The application of margins of preference in government procurement, established by Law 12,349 in December 2010, to some economic sectors has not the 
purpose of being trade restrictive. The policy aims at granting efficiency to the bidding processes. 
In this sense, the policy is in consonance with the promotion of social and economic development and in accordance to the fundamental principles governing the public sector action. 
 
In relation to export credit, the introduced changes are horizontal and in line with international practices.  
2. Párrafo 1.12 Página 19: ¿Podría Brasil ampliar la información sobre la 
profundización de la liberalización comercial que planea alcanzar a fin de apalear sus 
problemas estructurales, sobre todo por la pérdida de competitividad de las 
exportaciones de manufacturas? 
 En el ámbito del Programa de Acceleración de Crescimiento (PAC 1 y PAC 2) el Gobierno planea 
invertir US$ 650 mil millones adicionales entre ha sta 2014 en logística, en energía, y en la 
infraestrutura social y urbana del pais.  En otras áreas, Brasil está mejorando su marco normativo, a fines de promover más inversiones 
privadas, tales como aeropuertos, carreteras y ferrocarriles. Un ejemplo en este sentido es el 
sector portuario. A principios de este año, Brasil promulgó una ley destinada a promover la inversión privada (estimada en más de 30 millones de dólares hasta el año 2017) y, al mismo 
tiempo, estimular la competencia en este sector. Como resultado, los comerciantes nacionales y 
extranjeros podrán disfrutar de un mejor servicio y menores costos al utilizar los puertos brasileños. 
 WT/TPR/M/283/Add.1 
 
- 92 - 
 
3. Párrafo 1.32 Página 25: Sobre la prop uesta de Brasil a la OMC acerca de los 
desajustes en las paridades monetarias, ¿pod ría Brasil ampliar la información sobre los 
componentes de dicha propuesta y los efecto s que tendría sobre los países de menor 
desarrollo de la región suramericana pr incipalmente, a quienes les afectan las 
devaluaciones por parte de socios importantes como Brasil? 
 More detailed information on the components of the Brazilian proposal can be found in the three 
documents submitted to the Working Group on Trade, Debt and Finance (WT/WGTDF/W/53, 
WT/WGTDF/W/56 and WT/WGTDF/W/68). With those submissions, the Government of Brazil intended to encourage the debate on the relati onship between exchange rates and international 
trade. At first, since the discussion is at a preliminary stage, the focus has been on the horizontal 
effects of currency fluctuations and misalignments on international trade. Eventually, as the 
debate moves forward, specific impacts on small and less developed nations might be examined.  
2  Regimenes De Política Comercial Y De Inversiones 
 4. Párrafo 2.4, Página  38.  En el marco de Ayuda paragraph el Comercio, ¿prevé Brasil 
ampliar su cooperación a los países de Áfri ca, América Latina y el Caribe en otros 
ámbitos diferentes a apoyo técnico y crea ción de capacidad? ¿Cuáles serían las 
perspectivas de redirigir la Ayuda paragrap h el comercio proveniente de Brasil, a la 
cooperación paragraph el acceso real a los mercados? 
 
South-South cooperation is a priority for the Brazilian Government. We are deeply aware of its potential and its positive impact across developing-country partners, including in the promotion of 
international trade as a tool for achieving development goals. In this regard, Brazil is of the view 
that promoting South-South Cooperation can be a means to address supply-side constraints from the developing members in a cost-efficient manner. 
 
Brazil's South-South cooperation is demand-driven, deprived of conditionalities and always provided at the partner Government's request. It does not have any commercial links, nor does it aims at the generation of profits. It is execut ed by Brazil's Cooperation Agency (ABC) and other 
Brazilian institutions mainly in the form of technical cooperation and capacity development, in 
areas in which these institutions have recognized excellence. The partner Governments participate in all the steps of the projects and actions jointly developed, in line with the principles that guide 
our activities, such as alignment, ownership and equality. 
 Brazil is currently approaching a cooperation port folio of 50 countries (many of them LDCs) in its 
South-South activities. Our strategy does not envisage a fast expansion of the total number or 
partners or initiatives; we choose rather to invest, under a "program approach", on projects that have greater potential to generate a powerful impact on the participation of developing partners in world trade. 
 
A number of cooperation initiatives carried by the Brazilian Government have positive results for the promotion of market access. The ongoing trilateral cooperation carried by Brazil, Mozambique 
and Germany's Standardization institutes (respectively, INMETRO, INNOQ and GIZ/PTB, which 
aims to improve the quality of Mozambican products and to increase the country's competitiveness in the international market, results in increased market access for the country, through the 
adoption of international standards and practices and the gain of expertise by Mozambique's 
authorities regarding the work developed in WTO under the TBT Agreement).  5. Párrafo 2.34 Página 44: ¿En referencia a las notificaciones obligatorias de Brasil 
ante la OMC, podría Brasil referirse a la impo sición de medidas restrictivas al comercio, 
tales como: exigencia de requisitos de certific ación en materia sanitaria y fitosanitaria, 
reglamentos técnicos sobre la identidad y cali dad del producto, criterios microbiológicos 
del producto final, entre otros? 
 Some technical requirements and some sanitary and phytosanitary measures are needed to ensure 
the quality of products available in the Brazilian  market. Brazil seeks to conduct its regulatory 
process in a public and transparent manner, so that the measures adopted do not constitute 
barriers to trade.  WT/TPR/M/283/Add.1 
 
- 93 - 
 
6. Párrafo 2.45 Página 48: ¿Podría Brasil am pliar la información sobre el estado de 
situación de las negociaciones con la Unión Europea y en qué disciplinas no han podido llegar a acuerdos?  
The negotiations between MERCOSUR and the Euro pean Union have not yet been completed and 
therefore specific disciplines are still a matter of ongoing discussions between the parties. The member countries of MERCOSUR and the European Commission are still working towards 
concluding negotiations successfully. At the ministerial meeting held in January in Chile, it was 
agreed that the exchange offers would be made no later than the last quarter of 2013.  3  Políticas Y Prácticas Comerciales, Por Medidas 
 
7. Párrafo 3.71 Página 72: ¿En referencia a las medida s de salvaguardia, podría 
explicar Brasil qué medidas de ajuste se pu eden aplicar  entre los países miembros del 
MERCOSUR paragraph resguardar a sus sector es productivos sensible, además de la 
aplicación del Acuerdo de Salvaguardias en la  OMC? ¿Es posible aplicar alguna medida 
paragraph contrarrestar los desajustes cambiarios?   
 
MERCOSUR follows the WTO Agreement on Sa feguards and lacks its own mechanism of 
safeguards. The Treaty of Asunción established, however, in its Annex IV, the possibility of 
application of safeguards between the States Parties of the block until December 31, 1994. The 
main reason for this authorization was to prevent the State Parties of MERCOSUR from having 
their domestic production affected by possible outb reaks of import during the period of adaptation 
to the CET.  
 
It is understood that the application of safeguards between States Parties goes against the spirit of the block, which aims at the creation of a Co mmon Market. Therefore, MERCOSUR has opted to 
resolve trade differences without resorting to safeguards measures, including those related to 
money exchange situations. In relation to the application of other measures to safeguard sensitive productive sectors in the trade relation of State Parties, there is not such authorization.  
8. Párrafo 3.85 Página 75: ¿Podría Brasil ampl iar la información sobre la incidencia 
en la reducción de sus importaciones debido  a la aplicación de reglamentos técnicos? 
¿De qué forma ha beneficiado la aplicación de éstas medidas en el comercio intra-bloque 
MERCOSUR? 
 In relation to paragraph 3.85, the Report by the Secretariat does not mention impacts on Brazilian 
imports nor benefits to MERCOSUR Member States derived from the application of Brazil's 
technical regulations.  We emphasize that technical regulations do not have the intention of reducing nor contribute to 
reduce imports. 
 Furthermore, this study has never been conducted in Brazil and the Brazilian Government does not 
have any knowledge about the existence of similar studies in other countries. 
 Regarding MERCOSUR, there are not any studies that inform how the application of harmonized  
technical regulations has affected trade in the block since 1991. WT/TPR/M/283/Add.1 
 
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EL SALVADOR 
WT/TPR/G/283 
 2.2  Marco Jurídico Y Normativo General 
2.2.1  Entorno empresarial 
 De conformidad al gobierno de Brasil  se indica que desde el mes de agosto de 2011 se 
introdujo el programa "Crecer", en el marc o del Programa Nacional de Microcrédito 
Productivo (PNMPO), con el fin de promover la democratización del sistema crediticio y 
bancario.   
El programa se indica, están dirigidas a empr esarios del sector informal y a empresarios 
y microempresas con unos ingresos de hasta 120.000 reales brasileños al año.   
Tomando en consideración la relevancia de es te programa y los planes nacionales de mi 
país con relación al apoyo a la micro y pequeñas empresas, se agradecerá que el 
gobierno del Brasil pueda proporcionarnos la información  que a continuación se detalla: 
 
1. Objetivo del programa CRECER  The main purpose of the program (CRESCER) is to provide credit at lower interest rates to 
individual micro-entrepreneurs and micro-enterpri ses.  The program is open to individuals and 
companies that undertake economic activities of small business, with annual gross income of up to R$ 120 thousand, according to the Ministry of Labour. 
 
2. Entidad gubernamental responsable del programa  
The Worker Support Fund (FAT) is the main funding source of the program, which may be 
provided by Caixa Economica Federal, Banco do Brasil, Banco do Nordeste, Banco da Amazônia and the Banco Nacional do Desenvolvimento Econômico e Social (BNDES). Any institutions, since enabled by the Ministry of Labour, can act as inte rmediary agents or as on-lending of funds, as 
development agencies, central credit unions and cooperative banks. 
 3. ¿Ante quién y qué tipo de registro deberán realizar las Micro y Pequeñas 
Empresas? 
 Small and micro entrepreneurs should register for credit at the participating financial institution of 
their choice. 
 4. ¿Qué tipo de garantías deberá br indar el Micro y Pequeño Empresario?  
 
A guarantor ("avalista") may be required, in some cases, at the discretion of the participating 
financial institution. WT/TPR/M/283/Add.1 
 
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EUROPEAN UNION 
WT/TPR/S/283 
 Summary 
Page 9, paragraph 11 
 Foreign investors in Brazil receive the same legal treatment as local investors in most 
economic sectors. However, foreign investme nt is restricted in health, mass media, and 
telecommunications, aerospace industry, rura l property, maritime and air transport. 
 1. In the search of transparency on in vestments in agroindustries, could Brazil 
specify the special requirements, if any, for fo reign companies on the purchase of land in 
Brazil?  
Brazil does not prohibit the acquisition by foreign investors of rural or urban real state. However, 
due to national security concerns, a number of regulations apply to the acquisition of rural land. Foreign natural persons with permanent residence in Brazil and foreign juridical persons authorized 
to operate in Brazil are able to acquire or lease rural land, subject to the limits set by the law.  
These restrictions apply fully to Brazilian companies with foreign equity control.  Foreigners may acquire or lease up to three indefinite exploitation units (MEIs) without seeking 
approval, except if the land is located in a Border Area. Acquisitions above three MEIs require 
approval by the National Institute of Colonization and Agrarian Reform – INCRA of the Ministry of Agricultural Development and may demand prior authorization by the Executive Secretariat of the 
National Defense Council – SE/CDN. 
 For foreign natural persons, there is a limit in acquisition or lease of fifty units; for foreign juridical 
persons, there is a limit in acquisition or lease of one hundred units, both in a continuous or 
discontinuous area. Foreign companies can only acquire rural land for previously approved agricultural, cattle-raising, industrial or settlement projects, related to their Articles of Association. In any given municipality, foreign entities cannot own or lease more than one quarter of the total 
area and foreigners of the same nationality cannot own or lease more than ten% of the area. 
 Foreign natural or juridical persons desiring to acquire shares in a Brazilian company which owns 
any real estate right over rural land located in the Border Area must request for prior authorization 
of the National Defense Council - CDN.  
1  Economic Environment 
 1.2  Output and Employment Page 17, paragraph 1.12  
 
The report states that import constraints in  some sectors, in part icular manufacturing, 
have led to losses in competitiven ess both domestically and abroad. 
 
2. In the light of these import constrai nts that hamper competitiveness of some 
sectors of Brazilian industry, how do the Braz ilian authorities explain their decisions to 
adopt import restrictions such as the raise of tariffs (e.g. current list of MERCOSUR 
Common External Tariff – CET– exemptions)?   The proper management of MERCOSUR's tariff po licy must address challenging international 
economic situations with the adoption of common trade policy instruments. It is important to 
highlight the fact that the rates applied, as auth orized by the MERCOSUR instruments, do not in 
any case exceed the maximum World Trade Organization (WTO) bound tariffs. 
 WT/TPR/M/283/Add.1 
 
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1.3  Fiscal Policy 
Page 19, paragraph 1.20  The report stresses that the Government ha s taken steps to address some tax reform 
issues in recent years, adding that more comprehensive reforms are needed to 
streamline Brazil's highly  complex tax system.  
 
3. What are the Government plans for reform  in this area? What concrete steps will 
the Government take to reduce compliance c osts and tax complexity and to remove tax 
distortions among the states of the Braz ilian federation?  Are Brazilian authorities 
planning to simplify and make more transparent the system of reductions  and 
exemptions applicable to virtually a ll taxes at federal and state level? 
 The Brazilian Government is committed to continuously promote a better business climate for 
domestic and international investors by seeking to rationalize and to simplify tax obligations and 
reducing administrative and operational costs for taxpayers. It is worth mentioning that there are on-going plans with the intention of simplify ing the most elaborate taxes – PIS and COFINS 
(Federal taxes) and ICMS (State taxes). 
 1.6  Structural Issues and Policy Responses Page 24, paragraph 1.40 
 
The report cites World Economic Forum that says that tax regulations and rates are cited among the three most problematic factors for doing business in Brazil. Not only are tax 
rates relatively high compared with othe r Latin American countries, but Brazil's tax 
system is also especially burdensome. Heavy ta xation is also reflected in Brazil's energy 
costs for industry, which are among the highest in the world. In spite of the efforts from 
the Brazilian government on simplifying its fisc al system, this issue is still a problem. 
 4. Does Brazil envisage any measure, in the fiscal area, that could contribute to the 
trade openness of its economy? 
 
The Brazilian Government is committed to promoting a better business climate by seeking to rationalize and to simplify tax obligations and reducing administrative and operational costs for 
taxpayers. 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).  
5. In particular, is Brazil envisaging any po licies designed to reduce the high energy 
cost?  Brazil has sought to implement initiatives to reduce energy costs. 
 
In January, ANEEL approved new tariffs that reduce the electricity prices. The average reduction will be of 20.2%. For residential customers, the minimum reduction will be  18%. For high voltage 
consumers, the discount could reach 32%. 
 The reduction is a result of Law No. 12.783/20 13, which has promoted the renewal of the 
transmission and power generation's concessions th at would expire by 2017, and of the Provisional 
Measures 591/2012 and 605/2013. The following ch anges have allowed the reduction of energy 
costs: (i) allocation of energy quotas resulting from power generators with renewed concessions; (ii) reduction of transmission costs; (iii) reduction of sector charges. 
 
2  Trade Policy Regime: Framework And Objectives 2.4  Foreign Investment Regime 
Page 36, paragraph 2.25 
 According to this paragraph, FDIs is restricted in certain activities. It is mentioned that 
postal services are regulated under Law No. 6,538/78. 
 6. Could Brazil explain what conditions are a pplicable to FDIs in the postal services? 
 WT/TPR/M/283/Add.1 
 
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Except for the activities restricted to the designated postal operator, the requirements applicable 
to FDI in the courier services sector are essentially the same applicable to FDI in general.  7. As Brazil continues to consider the monopo ly in postal services as necessary, could 
Brazil submit a precise definition of the prod ucts falling within its ambit together with 
the indication of the precise legal basis? Is  Brazil envisaging to create an independent 
regulatory authority in this sector? 
 
Postal services are regulated by the federal government, according to the Federal Constitution of Brazil. Courier services may be provided by enterprises legally constituted in Brazil, in the terms of Law 6,538 of 22-6-1978, be them domestic or foreign. 
 
Page 36, paragraph 2.26: authorisations for fishing activities  
In paragraph 2.26 it is mentioned that "B razilian nationals, foreigners that reside 
permanently in Brazil, and companies estab lished in the country (regardless of the 
origin of their capital) may participate in fi shing activities in Brazilian territorial waters 
provided they are authorized by the Specia l Secretariat for Aquaculture and Fisheries." 
 8. Could Brazil explain how the fishing au thorisation regime works in Brazil? More 
specifically: 
 
 Are fishing licences/authorisations alloca ted to individuals, to companies, to 
vessels?  
 What are the requirements to obtain a fi shing authorisation/license in Brazil?  
 Can foreign flagged, foreign owned vessels obtain such an 
authorisation/license for fishing op erations in waters, under Brazilian 
jurisdiction, for instance in the context of a charter contract? 
 Brazil, as a continental country, with a large variety of species, important and different ecosystems and several economic operators involved in fishing activities, adopts a fishing policy that tries to 
conciliate an optimum equilibrium between the sustainability principle of fishing resources and 
better economic and social outcomes. In that sense, scientific information, sustainability and transparency are key elements for the operatio nal process of the Ministry of Fisheries and 
Aquaculture in the concession of fishing and aqua culture licenses, registrations and permissions. 
The concession of fishing licenses are carried out based on scientific data, with constant exchange 
of information between the academia and other governmental bodies, mainly the Ministry of 
Environment and the Brazilian Navy. 
 Fishing licenses, which allow for the capture, extracti on or collection of fishing resources, are only 
issued after review and analysis, on a case by case basis, within technical and scientific 
parameters. The fishing license is individualized by fishing vessel and it contains specific 
information about the fishing methods that will be used, the target-species and where the fishing operation will take place. 
 
Fishing vessels that are not engaged in capture, collection or extraction are exempted from getting a fishing license. Those vessels are engaged exclusively to conservation or processing of fish. In 
addition, fishing boats up to 8 meters are also exempted from getting a fishing license. The 
licensing system in Brazil is associated to the registration system that has a national registrar that contains record for all agents involved in the fishing and aquaculture sector in Brazil, such as professional, artisanal and industrial fishermen; fishing apprentices; vessels owners, as well as the 
vessels themselves. All vessels and all operators that have a fishing license must be registered in 
this national registrar system in their respective categories.  
More details about the fishing license regimes, registration and permissions in Brazil can be 
consulted in the following legislation (available only in Portuguese):  
- Decreto-Lei nº 221, de 28/2/1967 (disponível em 
http://www.planalto.gov.br/ccivil_03/decreto-lei/del0221.htm) 
- Lei nº 11.959, de 29/6/2009 (disponível em 
http://www.planalto.gov.br/ccivil_03/ _Ato2007-2010/2009/ Lei/L11959.htm) WT/TPR/M/283/Add.1 
 
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- Instrução Normativa nº 3, de 12/5/2004 (disponível em 
http://sinpesq.mpa.gov.br/rgp_cms/images/publico/CGRA/instrucao_normativa_03_de_12mai04-rgp.pdf) 
 
Foreign flagged vessels can only operate in commercial fishing in Brazil (including in its Economic 
Exclusive Zone) if chartered by juridical persons established in Brazil and granted a governmental 
authorization. 
 
In theory, Brazil has a dual system for fishing chartered vessels in connection with which flag the vessel shall use.  
The oldest and most traditional form of charter in Brazil is "time chartering". In this form of vessel 
chartering, the fishing company in Brazil hires a fo reign fishing vessel for a specific period of time. 
In this form of chartering, the foreign owner of the fishing vessel continues to manage the fishing 
vessel, but all the operations of the vessels are directed and oriented by the Brazilian fishing 
company (the charterer). The Brazilian fishing company is also legally responsible for any wrongdoing in fishing operations, since the fishing license for a foreign chartered vessel is issued 
on a case-by-case basis. For the "time chartering",  the fishing vessel is provisionally registered at 
the Brazilian Navy and the original flag of the country of origin is kept at the vessel. The regulations concerning this kind of chartering can be found onhttp://www.planalto.gov.br/ccivil_03/decreto/ 2003/D4810.htm#art22,h ttp://www.planalto.gov.
br/ccivil_03/Leis/L7652.htm  andhttps://www.dpc .mar.mil.br/normam/n_04/n_04.htm (available 
only in Portuguese).  
The newest form of charter in Brazil, which was legally enacted in December 2006, is a chartering 
modality known as "bareboat charter". In this type of charter, the Brazilian fishing company obtains possession and full control of the fishing vessel and the foreign vessels are temporarily 
registered at the Brazilian Navy. With this temporarily registration, there is also a transitory 
substitution of the original country flag of the fi shing vessel by the Brazilian flag. All the operations 
of the vessels continue to be directed and or iented by the Brazilian fishing company (the 
charterer) and it continues to be legally responsible for any wrongdoing in fishing operations, since 
the fishing license for a foreign chartered vessel is also issued on a case-by-case basis. For 
"bareboat chartering", the regulations for this type of chartering are http://www.planalto.gov.br/ccivil_03/_Ato2 004-2006/2006/Le i/L11380.htm, http://www.plana
lto.gov.br/ccivil_03/Leis/L7652.htm  andhttps ://www.dpc.mar.mil.br/normam/n_04/n_04.htm. 
 However, it is necessary to stress that the law fo r the "bareboat charter" has not been regulated in 
Brazil yet. Like in the EU, the implementation of  norms in Brazil is based on a two-layer system. 
This norm was a Brazilian Law promulgated by Cong ress, but it still have to be regulated by the 
Executive Branch through an Executive Decree. Ther efore, for the moment, all fishing charters in 
Brazil are performed in the modality of "time chartering". 
 
2.5.2.2  MERCOSUR Page 40, paragraph 2.39 
 
After 20 years of MERCOSUR, th e issue of the double collection of the CET has not been 
finalised yet. 
 
9. What are the plans and the timing to achi eve the elimination of double collection of 
the CET?   
The negotiations for the elimination of double collection of the CET are still ongoing.  
 2.5.2.3  Other trade arrangements and agreements 
Page 42, paragraph 2.46 
 The report mentions Brazil's participation to  the Global System of Trade Preferences 
among Developing Countries (GSTP) .  As it is the first time that developing countries in 
South-America, Asia and Africa agree on re ciprocal commercial preferences within the 
GSTP:  WT/TPR/M/283/Add.1 
 
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10. Has Brazil carried out any evaluation to  estimate the economic effects of its 
participation to the GSTP?   No. The corresponding GSTP legislation in Brazil is under the process of ratification.  
 
3.2  Measures Directly Affecting Imports  
3.2.1  Procedures 
Page 45, paragraph 3.21  The paragraph describes the procedures to be followed for importing goods, giving 
details on the SYSCOMEX system. 
 11. The SISCOMEX system requires the person in charge of the process to be Brazilian, 
while the exporter cannot have any role in the process. This system restraints the 
freedom of the foreign company in the import  process. Has Brazil considered changing 
this requirement? 
 
As part of the process of modernizing the customs system, Brazilian Customs Administration has already started process-mapping, reviewing and re -engineering its customs operations and this 
issue may be addressed in the future. 
 
12. Concerning imported textiles, they are du e to price and origin control in Brazil. Is 
Brazil considering ways to streamline an d shorten the textile customs clearance 
procedure (that may last up to 180 days)? 
 The customs clearance procedure of textile products follows the same rules applied to any other 
product. However, in some specific cases, basically when there are sufficient grounds for 
suspecting of commercial fraud and when the applicable penalty is the seizure, the imported goods can be detained for up to 90 days. Depending on the case, this timeframe can be extended for 90 days more. That is the case of the grey channel. Frequently, the detained goods are seized at 
the end of this procedure. The average customs clearance time in 2012 for the grey channel was 
57,10 days. Fraudulent operations of imported textiles frequently occur.  
Page 48, paragraph 3.23  
 The report notes that the 2013 World Bank Doing Business survey reports that the 
overall time to import merchandise into Braz il (17 days) has not changed over the past 
three years.  13. Does Brazil intend to introduce measures  that would facilitate access by reducing 
the time and decreasing the costs for im porting merchandising to the country?  
 Regarding customs activity, Brazil has been adop ting a series of measures to modernize the 
customs system, including investment in infrastructure, technology and streamlining of 
procedures. Improvements in this regard are an ongoing exercise. As to reducing customs 
clearance time, the following initiatives can be highlighted: 
 
- In August 2012, a National Center for Customs Risk Management (CERAD) was set up 
to improve the risk management and targeting of transactions; 
- The "certified enterprise" scheme (Blue Line), under which companies benefit from 
streamlined customs procedures, is currently under revision with a view to encourage 
more companies to join it; 
- A new computerized customs and foreign trade system is under construction. The aim 
is to create a more efficient single foreign trade window, through which many 
documents, formalities and data items will be simplified; 
- By the end of 2013, non-intrusive inspection equipments, for containerized cargo 
inspection, will be in place at the major points of entry into Brazil; 
- Since May 2013, 24/7 working hours for customs clearance has also been adopted at 
8 major seaports. 
 WT/TPR/M/283/Add.1 
 
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3.2.2 Customs valuation and rules of origin 
Page 48, paragraph 3.27  According to the report, the transaction value of the imported goods is used for the 
valuation of imports. 
 14. Can Brazil confirm that the transaction va lue of the imported goods is used for the 
valuation of imports and that minimum or reference prices are not used? 
 According to Article 75, I, of the Decree 6,759 of 5 February 2009, the taxable base of the ad 
valorem  customs duty in Brazil is the customs value assessed under the provisions of the 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994. 
In such a way, the Brazilian Customs Service does not use any minimum or reference price for that purpose. 
 
3  Trade Policies And Practices By Measure  3.2.3.1  Applied MFN tariff 
 
Page 52, paragraph 3.36 - Tariff rate exemptions to the CET  According to the report, the mechanism, which entered into force on 6 September 2012, 
caps the applicable time-frame to 12 months (renewable for up to 12 additional months) 
and the number of admissible (8-digit) tariff  lines to 100 per Member State. Taking 
advantage of this mechanism, Brazil raised the rates applied on 100 tariff lines (the 
authorized maximum) for a 12-month period, effective 1 October 2012. As a result of 
these hikes, which range from 6 to 23 percentage points, the simple average rate on these lines increased from 13.5% to 22.2%. These tariff' hikes focus on  machinery, 
plastics and articles thereof, electrical machinery and equipment and parts, iron and 
steel products,  chemicals, paper and pape rboard and wood and articles thereof. 
Furthermore, as at March 2013, a MERCOSUR Decision to increase  the number of tariff 
lines to 200 was pending incorporation into th e national legislation of member states, a 
prerequisite for its entry into force. 
 At the time of this review, the three MERCOSUR mechanisms in place for members to 
deviate from the CET. A major concern for many businesses is the regular changes in 
these mechanisms, including: how many tari ff lines each MERCOSUR member is allowed 
to exempt from the CET; the tariff lines affect ed; the rapid pace of the application of the 
increase in applied tariffs; and the process by which those tariff lines are chosen, and 
how they impact business.  We appreciate current efforts by the Brazilian Government 
to improve its public consultation process,  but are concerned with previous decisions 
(for example, raising the applied tariff on lu xury yachts) based on import data that was 
recognised by the Brazilian Go vernment to be in error. 
 15. Would Brazil please elaborate the back ground of having increased its applied 
tariffs with focus on these specific sectors (especially chemical products and plastics)? 
 The list of Brazilian temporary tariff increases, which was published by the CAMEX Resolution 
No. 70/2012 on October 1, 2012, was authorized by the mechanism provided for in Council 
Decision Common Market MERCOSUR No. 39/11 and developed based on analysis of claims submitted by the private sector, without prior restraint to specific sectors. It is important to highlight the fact that the rates applied, as auth orized by the MERCOSUR instruments, do not in 
any case exceed the maximum World Trade Organization (WTO) bound tariffs. 
 16. What is the policy for 2013? In particul ar, will Brazil terminate after 12 months the 
rates (based on MERCOSUR decision CMC 39/2011) applied on 100 tariff lines since 
1 October 2012? Will Brazil apply another tempor ary list of 100 tariff lines for 12 months 
in 2013?  Has Brazil considered the impact of higher applied tariffs? What are the 
reasons for the temporary tariff hikes and th e expected results?  Why have certain 
specific sectors been targeted? Will Brazil eliminate the CET exceptions (with higher 
tariffs than the CET) based on CMC Decisi on 58/10 earlier than end of December 2015 
and what policy is applied when chan ging rates of affected tariff lines? 
 WT/TPR/M/283/Add.1 
 
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Decision of the Council of the Common Market MERCOSUR No. 25/12 is in the process of being 
incorporated into the Brazilian legal system. Th erefore, the agreement has not yet entered into 
force and will be in force only after a presidential decree on the subject is issued.  
Nevertheless, the Brazilian government held public consultation regarding the claims made by the 
private sector with a view to lifting the temporary tariff protection of the CMC Decision No. 39/11. The products that were the subject of these claims are listed in Annex II of the CAMEX Resolution 
No. 12 of 08 February 2013. 
 At the moment, the Technical Group on Tariff Modifications of the MERCOSUR Common External Tariff (GTAT-TEC) is conducting an analysis of claims submitted to the Brazilian Government 
intending to make use of mechanisms of tariff mo difications authorized by the rules of MERCOSUR. 
The technical analyses will be used to subsidize the Council of Ministers of Foreign Trade Camera (CAMEX) on the matter, which will decide on the de sirability and advisability of any new tariff 
changes as well as the extent of such measures. 
 The GTAT-TEC also ordinarily analyzes requests of tariff modifications in relation to measures 
already in force. These analyses are also submitted to consideration of the CAMEX for deliberation.  
Finally, it is worth mentioning that the Council Decision MERCOSUR Common Market No. 58/10, which authorizes Brazil to unilaterally adopt a list of exceptions to the Common External Tariff of MERCOSUR (CET), is valid through December 31, 2015.   
 
17. What is the impact of the tariff hikes on the competitiveness of Brazil's economy 
and on prices of local produc ts protected by tariff hikes? 
 
The Technical Group on Tariff Modifications of the MERCOSUR Common External Tariff (GTAT-TEC) 
conducted technical studies in order to support decisions taken by the CAMEX on the matter. 
Among other factors, product-to-product analysis of competitiveness and price in the context of 
their supply chains were taken into account.  18. Could Brazil confirm that CET exceptions will remain within its WTO bound tariffs? 
 
Yes.  
3.2.4  Other charges affecting imports 
Page 55, paragraphs 3.44 and following  
Brazil applies certain charges on goods at the time of their importation which, according 
to the Brazilian authorities, correspond to internal taxes (see Brazil's replies in the 
context of its 2009 TPR). This concerns especi ally the PIS and COFINS taxes, described 
in the Secretariat's report. There appear to  be some differences in the application of 
such taxes to domestic producers and to impo rted goods and, as a matter of fact, those 
two cases are subject to separate sets of rules.  
19. Can Brazil provide the legislative referenc es of the laws and regulations currently 
in force concerning, on the one hand, the a pplication of PIS and COFINS to domestic 
producers and, on the other hand, the applicat ion of PIS and COFINS to imported goods? 
 
The main rules applied to PIS and COFINS are those provided in:  
- Law 10.833 of 29 December 2003, Articles 1
st to 16th. (COFINS - domestic) 
- Law 10,637 of 30 December 2002, Articles 1st to 12th. (PIS - domestic) 
- Law 10,865 of 30 April 2004, Articles 1st to 31st. (COFINS and PIS to imported goods) 
- Normative Instruction SRF 247 of 21st November 2002 
- Normative Instruction SRF 404 of 12 March 2004. 
 20. Following from the previous question, can Brazil explain how the PIS and COFINS 
taxable base is established in each of those  two situations (i.e. domestic producers and 
imported goods)? Specifically in the case of domestic companies: 
 WT/TPR/M/283/Add.1 
 
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Other electric accumulator of nickelcadmium,  weight <= 2,500 kg          8507.30.19 
  IMPORT   
   Customs Value (R$) 100.000,00  
Taxes Tax rate (%) Taxable base   
II 18,00 CV II 18.000,00  
IPI 15,00 (CV + II) IPI 17.700,00  
PIS 1,65 (CV + ICMS + PIS + COFINS) PIS 2.359,78  
COFINS 7,60 (CV + ICMS + PIS + COFINS) COFINS 10.869,28  
ICMS 18,00 (CV + II + IPI + ICMS) ICMS 29.787,80  
   Cost to import 178.716,86  
  INTERNAL MARKET   
   Sales 178.716,86  
Taxes Tax rate (%) Taxable base   
IPI 15,00 Value of the goods IPI 19.574,51  
ICMS 18,00 Value of the goods + ICMS ICMS 28.645,62  
   Value of the sold goods 130.496,73  
   Company's turnover * 130.496,73  
PIS 1,65 Company's turnover PIS 2.625,85  
COFINS 7,60 Company's turnover COFINS 12.094,82  
* Turnover = gross revenue (goods, services, others)  
 
Specifically in the case of domestic companies: 
 
 - Are PIS and COFINS calculated on th e basis of the companies' turnover?  
 
Yes, they are. 
  - How is turnover established?  
 
The turnover is the company's total revenue, that means, all earnings from regular business transactions after some deductions, such as customer discounts and cancelled sales, and deducted of the IPI. 
 
 - Are there any applicable exemptions or reductions?  
 
The exemptions and reductions are those established on the law applied to specific cases, such as 
sales to churches, governments, international organizations, political parties.  
 
21. Following from the previous question, ca n Brazil provide details on the method of 
calculation of PIS and COFINS in each of th ose two situations (i.e. domestic producers 
and imported goods)? How are the tax rates applied?  
See answer to question 20. 
 Specifically in the case of imported goods: 
 
- Is Normative Instruction SRF No. 572 of 22 November 2005 the applicable 
regulation? (cf. footnote 53 of  the Secretariat's report)  
 
Actually this Normative Instruction provides some guidelines to help importers to calculate manually the taxes levied on an importation. In fact, it is no longer necessary because any interested party can use a calculator that has been available on the customs website.  
 
- Could Brazil illustrate through examples how the formulae in that Instruction 
apply in a given case? 
 WT/TPR/M/283/Add.1 
 
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See the answer for the question 21. 
 Page 56, paragraph 3.46  
The report states that "The IPI on imports is  levied upon customs clearance and is based 
on the c.i.f. value plus the import duty an d other applicable fees and foreign exchange 
charges. (…) in some cases, IPI rates are spec ific. In principle, the same rates apply on 
domestically produced and imported goods."  
 22. Can Brazil explain how the different comp onents in the formula for calculation of 
the IPI on imports are derived?  Can Br azil provide a clear-cut example of the 
calculation of the IPI rate for a domestic ally produced good and for an imported, 
substitute good?  
Although the Article 14 of the Law 4,502 of 30 Nove mber 1964 states that the taxable base of the 
IPI includes foreign exchange charge, there is no  longer this expenses to be added. Thus the 
taxable base of the IPI is the customs value of  the imported goods, plus customs duty when 
applicable.   IPI = (CV + CD) * Rate 
 
For domestic goods, the taxable base is the value of the goods. (see answer to question 20.) 
 
23. Can Brazil clarify how it is planning to  ensure that IPI reductions conceded to 
certain producers (e.g. for computing and au tomating goods linked to value added from 
R&D and innovation activities in Brazil) whic h de facto result in lower rates of IPI are 
compatible with the principle that same rates apply on domestically produced and 
imported goods?  
The programs aim at fostering innovation and a qualified workforce to promote sustainable 
development and do not discriminate upon the origin of inputs. Some of them set out production and technology requirements to help achieve these goals. The IPI suspensions do not result in de 
facto lower rates of IPI, the rates are the same. Consequently they do not discriminate between 
imported and domestic inputs.  
3.2.6  Import prohibitions, restrictions, and licensing  
Page 57, paragraph 3.53  According to the report, by and large, Brazil maintains import prohibitions on health and 
moral grounds, and to comply with internatio nal conventions to which it is a party.  
 Nitrocellulose (NC) is considered as a contro lled product of strategic importance by the 
Brazilian authorities as it can be used as an  explosive for military purposes. Therefore, 
in order to import it – industrial NC incl uded – importers need to obtain an import 
licence granted by the Ministry of Defence, on top of an International Certificate of 
Import (ICI). Nevertheless, it appears that , de facto, no import licences at all are 
granted for the importation of NC not even for the kind of NC used for industrial purposes, the official reason being the dual-use nature of this product. Industrial NC is a 
different product from NC used  for military purposes: the use of industrial NC and its low 
nitrogen content make it a safe product th at does not pose any problems related to 
national security – therefore it is not justifia ble to impose a de facto import ban on this 
product. Moreover, already more than tw o years ago Brazil has set up an inter-
ministerial study group to look into this i ssue. However, so far the study group has not 
presented any results of its investigation – this  process should not be used as a pre-text 
for maintaining the de facto import ban.  
 
24. As the Industrial NC does not pose prob lems related to security, can Brazil justify 
the import ban on this product? Is Brazil en visaging to modify the current legislation 
allowing imports of nitro-cellulose for industrial use?  
 
The Brazilian Government does not necessarily agr ee with the opinion that Industrial NC does not 
pose problems related to security, as industrial NC, even at low concentrations, may be used as an 
explosive. The Brazilian Government is currently reviewing its policy and legislation on controlled 
products. WT/TPR/M/283/Add.1 
 
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Page 59, paragraph 3.57 
 Lists of products subject to automatic and non-automatic import licensing are published online by the MDIC68, but the most up-to-date information is available to registered 
users of SISCOMEX. In February 2013, g oods subject to non-automatic licensing 
significantly outnumbered those subject to automatic licensing. During 2009-11, non-
automatic import licensing requirements were  introduced on, inter alia, motor vehicles, 
apricots, and wheat flour. In 2009 TPR of Braz il, the country indicated that it existed a 
high percentage of tariff lines  that required a non-automatic license due to the nature of 
the electronic system that directly issue and register non-automatic import licences 
Known as SISCOMEX. 
 
25. Taking into account that "in February 2013 goods subject to non-automatic licensing significantly outnumbered those subj ect to automatic licensing", does Brazil 
envisage any measure to ease the automatic import licensing concession in order to 
accelerate these import licensing procedures?  
The products subject to automatic licensing are listed in the Administrative Treatment of the 
Integrated System of Foreign Trade (SISCOMEX) and can also be found on the web page of the Ministry of Development, Industry and Foreign Trade (www.mdic.gov.br). Products under the special customs regime of drawback are also subject to automatic licensing.   
 
The products subject to non-automatic licensing are listed in the Administrative Treatment of SISCOMEX and can also be found on the web page of MDIC. In their majority, they are 
products which may cause damage to human, plant or animal health, products capable of 
causing environmental damage, products classified as weapons or made for warlike purposes, products subject to non-tariff quotas as established in the agreements of the Uruguay Round, 
products subject to tariff quotas and products subject to trade remedies measures 
established in accordance with the WTO agreements.   Imports are grouped into the following three categories: (1) those that do not require 
licenses (most common), (2) those subject to automatic import licenses, and (3) those 
subject to non-automatic licenses. In general, imports are exempt from approval requirements. However, some require approval (i.e., an import license) from the Secretariat 
of Foreign Trade (SECEX) or another government agency. This approval is promptly given to 
importers if the licensing requirements are fulfilled. As a rule, licenses are valid for 90 days with the opportunity for an extension if the delay is justified by the importer. Import licenses 
for certain imports may be obtained after the goods have arrived but before customs 
clearance.  The Brazilian normative framework related to similarity examination and import licensing 
procedures is based on the following legislatio n: i) Decree-Law No. 37 of 18 November 1966; 
ii) Decree No. 6,759 of 5 February 2009; and iii) SECEX Ordinance No. 23 of 14 July 2011.  
Any person, enterprise or institution may request import licensing. The only requirement is 
the registration in the Integrated System of Foreign Trade (SISCOMEX). All import licenses shall be required through the Integrated System of Foreign Trade (SISCOMEX). Such 
administrative procedure – which integrates the registration activities and monitors imports 
and exports – is based on a sole flow of computerized information so as to make the process efficient and fast. The importer may require the import licensing directly from his/her institution if it is registered in SISCOMEX. 
 
26. What WTO compatible measures are just ifying non-automatic licensing for a very 
high number of goods (tariff lines)?  
 
As mentioned before, the products subject to non-automatic licensing are listed in the Administrative Treatment of the Integrated System of Foreign Trade (SISCOMEX) and can 
also be found on the web page of the Ministry of Development, Industry and Foreign Trade 
(www.mdic.gov.br). In  their majority, they are products  which may cause damage to human, 
plant or animal health, products capable of causing environmental damage, products classified as weapons or made for warlike purposes, products subject to non-tariff quotas as 
established in the agreements of the Uruguay Round, products subject to tariff quotas and WT/TPR/M/283/Add.1 
 
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products subject to trade remedies measures established in accordance with the WTO 
agreements. The normative framework related to import licensing procedures is based on the following legislation: i) Agreement on Import Licensing Procedures and ii) SECEX Ordinance No. 23 of 14 July 2011. 
 
The WTO Secretariat report recognizes that Brazil has made severa l efforts to improve 
customs procedures. However, companies co mplain for the long customs clearance 
procedure (6 days on average). 
 27. Is Brazil promoting the cooperation, espe cially in customs clearance, with other 
countries and precisely with the European Union? 
 
Brazil maintains international cooperation with customs administrations of neighbour countries to promote harmonization and unification of customs procedures, mainly through Integrated Control 
Areas. 
 Brazilian Customs authorities participate in various committee and working group meetings within 
MERCOSUR. At these meetings, legislation and decisions are prepared to ensure that customs 
measures are as uniform as possible within the MERCOSUR, and customs cooperation operations are agreed on.  
Brazilian Customs participates in the work of the World Customs Organization in its aims of 
harmonise the implementation of conventions under  its administration and to globally simplify 
customs procedures. 
 
Brazil is also engaged in the Trade Facilitation  negotiations in the context of the DDA, which 
include Customs Cooperation. 
 
Various bilateral customs cooperation agreements have entered into force or are under negotiation, so as to built cooperative partnership with countries around the world. These agreements enable to mutually provide various assistances, including information exchange, so 
that each customs administration can properly implement its customs laws and regulations, and 
realize prompt customs clearance and effective bo rder enforcement on harmful goods, such as 
illicit drugs and firearms, and goods infringing intellectual property rights. 
 
MERCOSUR is currently negotiating a bi-regional Association Agreement with the European Union, which also covers a cooperation pillar. Under this agreement Brazil intends to enhance the 
administrative and technical assistance cooperation on customs matters with EU. 
 3.2.7.2  Anti-dumping and countervailing measures  3.2.7.2.1  Legislation and institutions  
Page 60, paragraph 3.62 
 According to the report, under the Brazilian law,  an AD or CV duty may be equal to or 
less than the margin of dumping or the amount of the subsidy. 
 28. Under what circumstances could it be decided that the full margin of dumping / 
subsidization be applied despite a tec hnical recommendation for a lesser duty? 
 Even if DECOM proposes the application of a lesser duty, Ministers at CAMEX are not bound by that proposal and may decide differently if, taking into account public interest considerations, they 
conclude that the application of the full margin is required. 
 3.2.8  Technical regulations, conformity assessment and standards  
Page 62, paragraph 3.75 
 The paragraphs describes the competences of INMETRO and noted that INMETRO and 
ANVISA work together in the mandatory cert ification of products subject to sanitary 
control; INMETRO puts in practice the co nformity assessment process, whereas the 
relevant rules and requirem ents are set by ANVISA. 
 WT/TPR/M/283/Add.1 
 
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Cumbersome requirements and audits, includin g visits to third countries, in order to 
obtain a certificate by ANVISA represent exce ssive costs in terms of fees and costly and 
unnecessary delays for imported products (i.e . for Medical Devices certification of Good 
Manufacturing Practice (GMP), the waiting ti me before receiving the audit is and can 
easily reach 18 months, after requesting the audit). Furthermore, since 2012, a 
certification from the National Institute of  Metrology, Standardization and Industrial 
Quality (INMETRO) is required at the sa me time for some industrial products.  
 
29. Is Brazil considering any way to facilit ate certification on industrial products 
avoiding duplicating controls on the same product?  
Please refer to answer to question 30. 
 30. Is Brazil considering the possibility of enhancing cooperation agreements with the 
competent agencies of exporting countries in order to facilitate trade in certain 
industrial products such as medical devices?   
It is under the consideration of Anvisa (Brazil Health Surveillance Agency) Board of Directors the 
issuing of a Technical Regulation which will allow the recognition of GMP certificates issued by other countries Health Authorities, provided there is reciprocity, ie., mutual recognition of GMP certificates. The draft technical regulation will be opened to public consultation, which will provide 
a period for comments by interested parties. After the consolidation of the comments received, the 
Anvisa Board of Directors will take its final decision.  
It is important to clarify that Anvisa will publish the draft Technical Regulation for comments after 
the publication of the amendment of Decree 79094/77, which defines requirements for the 
commercialization of pharmaceutical products in Brazil. This Decree is being revised at the 
moment. 
 Inmetro seeks to adhere to recognition agreements  under the boards of accreditation, even when 
they are voluntary in nature, aiming to facilitate and provide for confidence in the acceptance of 
conformity assessment results. 
 INMETRO is a signatory to the following agreements: International Laboratory Accreditation 
Cooperation (ILAC), Inter American Accreditation Cooperation (IAAC) and International 
Accreditation Forum (IAF) and, in 2011, INMETRO has been recognized by the OECD as the official 
organ of monitoring compliance with the Principl es of Good Laboratory Practice GLP-. This 
demonstrates that Brazil considers relevant mechanisms of trade facilitation. 
 The rules of acceptance of conformity assessment results are provided in INMETRO / MDIC number 361 of 06/09/2011 - General Requirements for Product Certification - RGCP. Note that 
there must be a national body that takes responsibility for acceptance tests carried out by foreign 
body.  
31. Is Brazil considering to follow inte rnational standards, when possible?  
 Brazil adopts the recommendations of the WTO also with regard to regulation and standardization, 
except in cases where there are specific needs to be met, or issues related to geography and 
climate. Brazilian SPS measures are based on the available international standards. However, in order to preserve access to important markets, the country has been in some cases compelled to adapt temporarily its sanitary system to other countries' requirements, pending the adoption of 
said standards. 
 3.2.9  Sanitary and phytosanitary measures  
Pages 66-67, paragraphs 3.91 and 3.93 
 The EU welcomes the explanations provided by Brazil on its SPS procedures to access 
the safety of imported products. However,  the EU noted that in many cases, the 
requirements for control, inspection and appr oval of individual specimens of a product 
are not limited to what is reasonable and ne cessary to provide the necessary assurances 
and to achieve its level of sani tary protection, as foreseen in  point 1(e) of Annex C of the 
WTO SPS Agreement. For example, in some cases, many overlapping procedures are WT/TPR/M/283/Add.1 
 
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applicable, as described in the point 3.93 (rec ognition of the sanitary inspection systems 
in the exporting country as equivalent to  Brazil's; accreditation of the exporting 
establishments; and approval of the products and their labels), and in in point 3.91 (requirement of a non-automatic licence for any product subject to SPS controls; prior 
authorization of each shipment to Brazil and inscription in several registers at central 
and local levels). Furthermore, products have to be accompanied by the relevant official 
sanitary or phytosanitary certification, whic h already includes the relevant assurances 
for the SPS guarantees as requested by Brazil. 
 32. How does Brazil assure that any requirem ents for control, inspection and approval 
of individual specimens of a product are limit ed to what is reasonable and necessary?  
 
Brazil is constantly working for improvement of its import procedures and controls. Border controls are important to ensure that pests and diseases do not affect the country's agriculture, one of the 
main economic sectors of the country. In this sense, Brazil remains highly committed to the SPS 
Agreement.  
33. Is Brazil planning to review and simp lify its import rules by identifying and 
eliminating overlapping procedures whic h creates extra administrative burden 
unnecessary to achieve its level of sani tary and phytosanitary protection?  
 
Brazil is constantly working for improvement of its import procedures and controls. Border controls 
are important to ensure that pests and diseases do not affect the country's agriculture, one of the main economic sectors of the country. In this sense, Brazil remains highly committed to  the SPS 
Agreement. 
 In particular in relation to the Brazilian procedures leading to the recognition of the sanitary 
inspection systems in the exporting country as equi valent to Brazil's and the accreditation of the 
exporting establishments of products of animal origin, the EU has experienced long delays, often 
for many years, in the way Brazil organises its inspection missions, reports on its findings, and finally allows countries and establishments to start exporting its products to Brazil. The 
requirements laid out by MAPA for importation of products of animal origin into Brazil include 
(i) recognition of the sanitary inspection systems in the exporting country as equivalent to Brazil's; (ii) accreditation of the exporting establishments (iii) approval of the products and their labels. In 
practical terms, the application of such import approval procedures revealed to be cumbersome 
and excessively time consuming. Point 1of Annex C of the WTO SPS Agreement foresees that "Members shall ensure, with respect to any procedure to check and ensure the fulfilment of 
sanitary or phytosanitary measures, that: (a) such procedures are undertaken and completed 
without undue delay and in no less favourable manner for imported products than for like domestic products; and (b) the standard processing period of each procedure is published or that the anticipated processing period is communicated to the applicant upon request; when receiving an 
application, the competent body promptly exam ines the completeness of the documentation and 
informs the applicant in a precise and complete manner of all deficiencies; the competent body transmits as soon as possible the results of the procedure in a precise and complete manner to the 
applicant so that corrective action may be taken if necessary; even when the application has 
deficiencies, the competent body proceeds as far as  practicable with the procedure if the applicant 
so requests; and that upon request, the applicant is informed of the stage of the procedure, with 
any delay being explained". 
 34. Could Brazil indicate the proced ure and timeframes for carrying out 
audit/inspection missions to access the sanita ry controls and inspection systems in the 
exporting countries, before ex ports to Brazil can begin? 
 Import risk assessment involves complex processes for the protection of life and health of people, 
animals and plants. They are extremely dependant on the information provided by stakeholders 
concerning diseases, pests, animals, plants, the environment and the interaction among these elements. 
 
The complexity of each PRA varies according to the commodity in question and its intended use, as well as the quarantine pests that may be spread, and a case by case approach is thus required. For the same reason, it is not feasible to work under a single timeframe. 
 WT/TPR/M/283/Add.1 
 
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Agriculture has high economic importance in Brazil and requires solid, science-based measures for 
its protection.  35. Could Brazil specify whether it plans to organise inspection missions in the near 
future? 
 Brazil faces strong demands for sending such inspec tions abroad, and it is often very difficult to 
satisfy them at the pace expected by some expo rting countries. Nevertheless, Brazil continuously 
evaluates the elements of its risk analysis proc edures, taking into account needs and priorities. 
 36. When and how will Brazil improve su ch auditing/inspection and approval 
procedures with the objective of minimising negative trade effects and to ensure that 
such procedures are undertaken an d completed without undue delay? 
 
The Brazilian approval and control procedures ar e under constant improvements, with a view to 
facilitate trade as well as to reduce risks related to the entry of pests and diseases potentially harmful for the local production. 
 
3.3.2  Export taxes  3.3.3.2  Export restrictions, quotas, and licences Page 69, paragraphs 3.103 and 3.104 
 
These paragraphs give an overview of the le gal basis and the main characteristics of the 
export taxes applied in Brazil. According to the report, during the review period, Brazil 
maintained unchanged the export taxes it ap plies on: raw hides and skins, cigarettes, 
and arms and ammunition. In the case of raw hides and skins, taxes apply on all exports 
with the stated purpose of ensuri ng supply to the domestic market. 
 
37. Could Brazil explain whether there is an y plan to dismantling the raw hides and 
skins export tax, especially on the "Wet-Blue type (hide) export tax?  
 
For the time being, there is no phasing-out or plan to eliminate this tax. 
 38. What are the reasons and justifications that export taxes on leather raw materials 
are still in place? Why is this measure still in  place if the local leather article industry 
has no domestic shortage of these raw materials?   
The export tax on wet blue leather was adopted in 2001 in a context where most leather 
importers apply tariff escalation to the leather chain.   3.3.4.2  Reintegra programme  
Page 71, paragraphs 3.115-3.116  
 According to the report Reintegra, an expo rt subsidy scheme, was applied to exports 
made in 2012.  The report mentions that Brazil has no plans to extend the Reintegra 
programme. In the updated Plano Brazil Ma ior published by the MDIC in April 2013, 
more specifically in its strategic sectorial pl an, covering 19 different  sectors, a specific 
target is set to extend Reintegra Programm e to include new sectors relevant for the 
agroindustry, such as fruits, bovine  and pork meat by December 2014. 
 39. The Brazilian authorities are invited to ex plain how they ensure that the Reintegra 
scheme complies with the requirements spelle d out in Item (i) of Annex I, Annex II and 
Annex III of the ASCM.  
Reintegra is aimed at reducing the residual ta xes of products to be exported which lack 
appropriate instruments of refund. That is to say, it is a system for the refund of taxes that have been accumulated along the productive chain which could not be previously credited. The 
calculations made are the lowest-common denominator for returning tax residue that was lost and 
therefore not offset throughout the production chain. The real percentage eligible to be refunded could be higher, due to the difficulty of redeeming tax credits throughout the productive chain in Brazil, and the amount is lower than the taxes effectively due by the enterprises. 
 WT/TPR/M/283/Add.1 
 
- 109 - 
 
40. Could Brazil please clarify whether th eir authorities intend to extend the 
programme?   
 REINTEGRA has not been renewed, since the Provisional Measure 601/2012 is not effective 
anymore. 
 3.3.4.3  Drawback 
Page 72, paragraphs 3.117-3.121  
 Paragraph 3.117 of the report mentions th at Brazil operates a drawback scheme 
designed to reduce the tax costs associated wi th inputs used in the production of goods 
for export. The scheme provides for the susp ension or exemption of import tariffs and 
indirect taxes such as IPI, PIS, COFINS, ICMS and AFRMM levied on inputs used to 
produce exportable goods.  
 
The drawback regime was amplified by, not mentioned in the report, Decree 8.010/13.  
 
41. The Brazilian authorities are invited to explain how they ensure that the Drawback 
scheme complies with the requirements spelle d out in Item (i) of Annex I, Annex II and 
Annex III of the ASCM.  
Please refer to answer to question 42.  
 42. The Brazilian authorities are invited to elaborate on the scope of the export 
support granted within the aforementioned dr awback regime and its compatibility with 
the provisions of the Agreement on Subsidies and Countervailing Measures. 
 
Although the scheme is internally called "drawbac k" it actually provides for the suspension or 
exemption of import tariffs and indirect taxes on inputs used on the production of exiting goods. 
Therefore, the Brazilian drawback scheme is mo re similar to an inward processing scheme. 
Therefore, since no actual remission or drawback  of taxes is given and since the taxes exempted 
are indirect and limited to inputs, the item (i ) of Annex I does not apply to the scheme. The 
Brazilian drawback scheme involves  the exemption of prior-stage cumulative indirect taxes levied 
on inputs that are consumed in the production of the exported product (making normal allowance 
for waste). The exemption is never in excess than what would be normally levied if the goods 
should be consumed internally.  
Furthermore, an electronic system (Drawback-Web) is used to apply for and to authorise to 
receive goods under Drawback scheme. The Drawback-Web uses pieces of information read from the Siscomex System about the import and export declarations under the scheme and the fulfillment of all obligations that are requir ements under drawback scheme, including, as 
applicable, a manufacturing bill of materials.  
 In sum, Brazil has in place and applies a syst em or procedure to confirm what inputs are 
consumed in the production of the exported product and in what amounts.   
 3.3.4.5  Special Regime for the Purchase of Capital Goods for Exporting Enterprises 
(RECAP) 
Page 73, paragraph 3.126  The report gives a short description of the regime 'RECAP'. 
 
43. The Brazilian authorities are invited to explain the reason why RECAP benefits are 
open only to "predominantly export-oriented companies". 
 
The regular regime for the suspended taxes (PIS  and COFINS) is a non-cumulative taxation 
system based on a credit mechanism. This regime allows the taxpayer to calculate and deduct the 
respective tax credits relating to goods (including capital goods) and services used as input on the 
provision of services or production of goods for further sale.   WT/TPR/M/283/Add.1 
 
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By this system, however, companies that export a significant amount of their production often 
have insufficient tax liabilities or debits to offset their tax credits. As a result, many companies accumulate credits throughout the fiscal year.  
RECAP is only target to simplify the use of the mentioned credits to which companies are already 
entitled. Also on competition, RECAP is designed to keep tax neutrality. RECAP therefore suspends 
taxes, which, in turn, do not generate credit to be used along the value chain.  
 
3.3.4.6.  Definition of Predomin antly Export-oriented Enterprises 
Page 74, paragraph 3.127  
The report gives the definition of 'Pre dominantly Export-oriented Enterprises'. 
 44. The Brazilian authorities are invited to  explain whether "pre dominantly export-
oriented companies" benefit from the tax suspension described in the Secretariat's 
report with regard to their entirety of their output, whether for export or for domestic sale. 
 
Under the Brazilian tax system, companies that export a significant amount of their production often have insufficient tax liabilities or debits to offset their tax credits. As a result, many companies accumulate credits throughout the fiscal year. Tax suspension, although sometimes 
include output not directly aimed for exports, will still apply on taxes for which these companies 
would acquire credit, but have difficulties in offsetting them with liabilities.   
3.3.5.2  Export Financing Programme (PROEX)  
Pages 75-76, paragraphs 3.135-3.141  
The report seems to indicate that PROEX is targeted for exporters of manufactured 
products only.   45. Could Brazil please confirm that this  program does not concern agricultural 
exporters? If it concerns also agricultural exporters, what is the share agricultural 
exporters make up in this programme?  
PROEX Financing is mainly designed to support  micro, small, and medium- sized enterprises 
(MSEMs) with an annual turnover of up to R$600 million (about US$300 million). Since agricultural exports are generally made by big companies, on ly a very small share of the PROEX budget is 
allocated for agricultural exports. As for PROEX Equalization, no unprocessed agricultural products 
is included in the list of eligible products.  3.4.2  Incentives 
Page 84 and subsequent 
 This section of the report mentions a heft y number of incentives programmes providing 
for preferential credits and certain fiscal bene fits upon observance of conditions that are 
appear in many cases focuse d on local content requirements. The measures involved 
provide inter alia for exemptions or substantia l reductions of such internal taxes as IPI, 
PIS or COFINS constituting a competitiv e disadvantage for imports to Brazil in 
comparison with domestically manufactured goods. The report clearly explains that 
some of these incentives are linked to Basi c Productive Process (PPB) criteria, which 
stipulate among other things which stages of  the manufacturing process must be carried 
out in Brazil. Thus, eligibility to the in centives depends on local productions. 
46. Would Brazil elaborate on the backgro und of these programmes (such as Inovar-
Auto, REPNBL-Redes, and other incentives in the field of information technologies) and 
address the issue of apparent ly discriminatory internal taxation applied to the 
disadvantage of imported good s? Could Brazil provide its views on the consistency of the 
mentioned incentives linked to local co ntent criteria with the GATT and TRIMs 
agreements? 
 The programs set out technology and production requirements for the tax benefits that aim to attract investments in research, development and technological innovation as well as the 
p e r f o r m a n c e  o f  p r o d u c t i v e  s t e p s  i n  B r a z i l .   N o t h i n g  i n  t h e  W T O  A g r e e m e n t s  s h o u l d  b e  r e a d  a s  WT/TPR/M/283/Add.1 
 
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prohibiting a Member to establish conditions on production or on technology in a certain territory 
or to define levels of production or of technology thereupon. Domestic and imported inputs can be equally used. The exemption granted in the regimes would otherwise be converted in tax credits that can be offset, therefore the programs are fiscally neutral.  
 
47. Brazil is invited to elaborate on paragr aph 3.175 of the Secretariat's report, in 
particular the sentence "According to the authorities, compliance with PPB criteria 
ensures automatic (fast-track) approval of applications, but does not constitute a 
requirement for eligibility; this explanation is  not clearly stated on official websites." 
Could the Brazilian authorities provide specific  references to official sources supporting 
their explanation of the link between PPBs and incentives? 
 
PPBs are defined in Law 8.248/91 and Decreto-Lei 288. Further legislation may reference PPBs with regards to a particular regime. 
 
48. Footnote 216 of the Secretariat's repo rt states that PPBs "do not involve any 
thresholds for domestic value added, inputs or labour". However, PPBs "stipulate which 
stages of the … manufacturing process must be  carried out in Brazil" (paragraph 3.175). 
Brazil is invited to explain whether PPBs invo lve any conditions other than thresholds 
concerning domestic value added, inputs or labour.   
PPBs only stipulate production steps. 
 Table 3.10 Programmes notified to the WTO, 2009 and 2010 
 
In the Secretariat's Report, Table 3.10 "Programmes notified to the WTO, 2009 
and 2010" in page 85, mentions the total figure for subsidies provided to the fisheries 
sector under the "Programme for diesel o il support" and the "Programme for financing 
the enlargement and modernization of national fishing fleet (PROFROTA)". 
 49. Could Brazil provide figures (subsidies paid) for the years 2011 and 2012 in the 
context of the "Programme for diesel oil support" and the "Programme for financing the 
enlargement and modernization of na tional fishing fleet (PROFROTA)"? 
 
The Brazilian Government does not have yet consolidated data on those programmes for 2011 
and 2012.  
3.4.2.4  Free-trade zones 
Pages 92-94, paragraphs 3.201 to 3.208 (reference as well to paragraph 3.46)  The report gives an overview of the Brazil legislation defining the Free Trade Zone (FTZ). 
In particular, according to the paragraph 3.207 of the report, relating to the Free 
Manaus Free Trade Zone, goods imported into Brazil from the ZFM are subject to all import duties and taxes normally assessed,  with some exceptions concerning duties 
imported inputs, goods sold solely to FTZ and obsolete machinery and equipment. In 
addition to that, paragraph 3.46 on the IPI tax says that the same tax rates apply on domestically produced and imported products and that the only suspensions and 
reductions were granted solely to limited products originating in some of Brazil´s 
preferential trade partners. However accordin g to Chapter V and in particular its Art 81 
of Decree 7.212/2010, not mentioned in the report,  the vast majority of goods produced in the Manaus FTZ is generally exem pted from the IPI tax upon its importation 
to the rest of the national territory.  
 50. The Brazilian authorities are invited to ex plain in detail which the eligibility criteria 
for a company to be established in a FTZ are. 
 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 national 
tributes (Federal, State and Municipal).  51. The Brazilian authorities are invited to provide more details on Western Amazon 
Export Special Programme which grants exem ption of import duties and taxes on the WT/TPR/M/283/Add.1 
 
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importation of raw material, inputs and industrial components exclusively for export. In 
particular, the Brazilian au thorities are invited to provide explanations on how 
consistency with Article 3 of the SCM Agreement is ensured.  
They are drawback measures, within the sco pe of footnote 1 of the SCM Agreement. 
 52. Considering the fact that a total or pa rtial exemption from internal taxes with 
regard to goods produced in certain zones in  Brazil would lead to discrimination against 
imported goods, could the Brazilian Author ities elaborate the apparent discrepancy 
between the report and Brazilian legislation in force with regard to the taxation of goods 
produced in Manaus (or other FTZs) and market in  other parts of the Brazilian territory? 
Could the Brazilian authorities elaborate on th e policy reasons for this tax exemption?  
 The exemptions mentioned in the report aim at fostering sustainable development and reducing 
regional economic disparities in the Amazon region. 
 3.4.2.5  R&D and other programmes 
Page 94 
 The report gives an overview of the R&D programmes running in Brazil. The EU acknowledges that the sectorial S, T& I funds are an important R&D financing 
mechanism in Brazil since their establishment in  1999.  Problems related to taxation of 
"technological knowledge" transfer due to the di scriminatory nature of the CIDE tax (tax 
on the contribution for intervention in th e economic domain) which was established by 
Law 10168/2000 and further complemented by Law 10332/2001. CIDE is levied on 
payments made by Brazilian companies to fo reign suppliers which provide inter alia 
some kind of "technological knowledge" (e.g. patent assignments, but also trademarks 
or technical assistance servic es). CIDE amounts to 10% of the underlying transaction. 
By contrast, Brazilian companies which pay fo r the acquisition or use of domestically 
produced "technology" are not subj ect to the aforementioned tax. 
 
53. When does Brazil end the discrimination  that Brazilian companies do not pay CIDE 
tax for the acquisition or use of domestic ally produced "technology", but only for 
technology transfers from abroad?  
 
Foreign enterprises established in Brazil are gran ted national treatment, including identical tax 
treatment. CIDE is levied on payments made by companies established in Brazil (either of national 
or foreign capital) to foreign suppliers relative to certain transactions involving transfer of 
technology. CIDE rate is 10%. However, Brazilian Tax System provides mechanisms to ensure tax neutrality. In transactions on which CIDE is levied, the income tax rate is 15%, in contrast to the rate of 25% levied on other transactions. The net tax paid in both circumstances is the same.  
 
3.4.2.6  BNDES credit facilitation schemes Pages 96 and 97, paragraphs 3.219 and 3.221  
 
According to paragraph 3.219 the BNDES promotes Brazil's economic and social 
development through tailored financing, equity  participation, non-reimbursable financial 
support, and guarantees. In paragraph 3.221 it  is mentioned that projects eligible for 
credit include (…) production of certain goods for export.  
 54. The Brazilian authorities are invited to clarify if the non-reimbursable financial 
support applies for projects that concern prod uction of certain goods for export and, if 
yes, to provide more details showing that consistency with article 3 of the SCM Agreement is en sured. 
 
Detailed information on BNDES programs may be found at "http://www.bndes.gov.br/SiteB NDES/bndes/bndes_pt/".  
 
BNDES does not offer non-reimbursable financial su pport related to production of certain goods for 
export.  WT/TPR/M/283/Add.1 
 
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Page 97, paragraph 3.221  
With reference to the BNDES schemes:   55. The Brazilian authorities are invited to provide details on the extent to which 
various programmes implemented by BNDES requ ire from beneficiaries the fulfilment of 
conditions concerning local content. See for instance BNDES information on local content requirements for wind turbine manufacturers.   
 
(http://www.bndes.gov.br/SiteBNDES/bnde s/bndes_pt/Ferramentas_e_Normas/Crede
nciamento_de_Equipamentos/creden ciamento_aerogeradores.html). 
 
BNDES programmes do not require from the beneficiaries the fulfillment of conditions concerning 
local content. As explained in the Secretariat's report, the parameters set out by BNDES only simplify certain bureaucratic procedures, the progra ms benefit equally products that do not comply 
with the parameters. 
 3.4.2.7  Other schemes 
Page 99, paragraph 3.226 
 According to the report, "INOVAR-AUTO wa s created with the purpose of supporting 
technological development, innovation, sa fety, environmental protection, energy 
efficiency, and the quality of vehicles and automotive parts. INOVAR-AUTO is set to 
expire on 31 December 2017; its beneficiar ies are companies that produce or plan to 
produce in Brazil products classified under headings 87.01 to 87.06 of the Tax on 
Industrial Products-TIPI schedule, approv ed by Presidential Decree No. 7,819 of 
3 October 2012, or commercialize them. To be nefit from INOVAR-AUTO a joint permit by 
the MDIC and the MCIT is required. This pe rmit is contingent upon meeting energy 
efficiency standards for the vehicles produc ed or commercialized and the commitment to 
making R&D and infrastructure investments in  Brazil, as well as participating in a 
nationwide vehicle labelling programme, exce pt for diesel or semi-diesel vehicles. 
Permits have a12-month validity and ar e renewable for 12-month periods.  
 
Approved companies may benefit from IP I credit for expenses on research, 
technological development, strategic inputs , tooling, engineering, and industrial 
technology. This credit is not subject to PIS/ Pasep or COFINS contributions, nor must it 
be computed for income tax purposes."  
The EU is concerned about the local content requirements in the automotive and other 
sectors. In particular:  56. How can Brazil justify the discrimination  that programmes such as INOVAR-AUTO 
include as regards the treatment of imported  inputs, in particular in the sector of 
automotive parts and components, due inter a lia to certain domestic manufacturing or 
investment conditions?   
 
There is no discrimination in the program, both manufacturers and importers may equally benefit from INOVAR-AUTO, as long as they meet energy-efficiency requirements. Law 12.715 gives tax 
credits both to accredited companies producing or importing automobiles in Brazil in a manner 
consistent with WTO agreements. The beneficiaries are entitled to choose freely which expenditures listed under the Law they may perform in order to acquire the credit.  
57. Is Brazil considering the extension of this  kind of local content conditions in the 
programmes covering othe r industrial sectors? 
 
They are not local content conditions 
 Page 99, paragraph 3.227 
 
The Special Taxation Regime for the Nation al Broadband Programme for the Deployment 
of Telecommunications' (REPNBL-Redes) is of concern to the extent that it appears to 
include local content requirements as a prer equisite for qualifying for the programme's 
IPI and COFINS/PIS tax credit. Furtherm ore, we are concerned that ANATEL's WT/TPR/M/283/Add.1 
 
- 114 - 
 
June 2012 radio spectrum auction in the 450 Mhz and 2.5 Ghz bands for commercial 
mobile service required winning bidders to commit to purchase goods, products, 
equipment, and systems for telecommunicati ons and data networks with national 
technology, and ensure that, after five year s, 50% of the equipment, telecommunication 
systems, and networks be produced locally , and 20% be produced with technology 
developed in the country. Foreign compan ies that would have otherwise proven 
competitive bidders may have decided not to participate in the auction process, due to 
not being able to fulfil ANATEL's  local content requirements.  
 58. Does the Brazilian Government have any plans to discontinue local content 
requirements in the REPNBL-Redes progra mme? Will the Brazilian Government pursue 
future auctions without local content conditions? 
 There are no local content requirements in the REPNBL-Redes program. They are technology and 
production requirements and do not function by means of auction. 
 With regards to auctions, the radio spectrums are considered a public resource. In this sense, the 
auctions fulfil a governmental purpose and take into account the need to economic and social 
development and the greatest possible availability of the service.  3.4.4  Government Procurement  
3.4.4.1  General features 
Page 102 and subsequent  
The introduction of preferential treatment to  goods and services produced in Brazil by 
Law No. 12,349 of 15 December 2010 is a cause for serious concern. As of 
September 2012 the Brazilian Government has issu ed at least eight decrees establishing 
preference margins ranging from 8% to 25%, and cover goods including textiles, 
apparel, footwear, backhoe loaders, motor graders, and pharmaceutical and medical 
products in tendering procedures, making the granting of preferences a permanent feature of the regime. The justification of the price preference is dubious, as Brazil is not 
a developing country anymore. This Law al so allows for procurement contracts in the 
technology and communication sector to be restricted to goods and services developed 
in Brazil, which is very worrying. The nece ssity or foreign suppliers to be legally 
established in Brazil to take part in tend ering procedures declared to be national 
tendering is also cause for concern. Beside s, there are discriminating local content 
requirements, e.g. for procurement by PETROBAS.  In EU's view, all these are clearly 
protectionist measures.  
 59. Could Brazil clarify whether they envisage to revise this law with a view to give non-discriminatory access for foreign bidders  to the public procurement market of 
Brazil? 
 The introduction of margins of preference in pu blic procurement does not have the purpose of 
being discriminatory or trade restrictive. The definition of the sectors and the respective 
preferential margins is based on studies that take a number of criteria into account, including job and income generation, effect on tax revenues as well as technology development and innovation 
performed in Brazil. 
 60. Could Brazil clarify to what extent and to which sectors these provisions have been 
applied in practices. Could you provide an overview on the implementation of these 
measures fixing margins? 
 
Sector Margin (%) 
Clothing, footwear and artifacts 20% 
Backhoes and graders 15% to 25% 
Drugs and medicines 8% a 25% 
Medical products 8% a 25% 
Paper currency 20% 
Vehicles for railways 20% 
Trucks, vans and road implements 14% a 17% 
Drills and mechanized patrols 15% a 20% WT/TPR/M/283/Add.1 
 
- 115 - 
 
3.4.4.2  Legislation  
Page 105, paragraph 3.253  According to the report, in 2011 37% of the total value negotiated in federal 
administration procurement contra cts did not require tendering.  
 61. Could Brazil explain the reasons why in this large shared of procurement the 
requirement to tender were waived? 
 Brazilian General Law foresees procurement contracts negotiated directly, without the need of running a tendering process. In general, the reasons for deciding for a direct negotiation are 
related to those situations in which a tendering process would turn the procurement into a more 
expensive procedure to the public administration, without attaining the normally expected gains of 
efficiency. 
 
Page 105, paragraph 3.255   
In terms of appeal mechanism, the Secretar iat report explains that the TCU is not 
required to issue decisions within specific time frames.   62. Is Brazil considering amending the procurement law to establish specific 
timeframes for decisions which would ensure  predictability of the appeal mechanism? 
 The General Law of tendering processes foresees all timeframes for administrative appeals on its 
Article 109. Participants may also appeal to superior courts, which may determine the suspension 
or interruption of the tendering process while a decision is not rendered.  
3.4.5  Intellectual property rights 
3.4.5.1  General features  Page 107, paragraph 3.262  
It is mentioned that Brazil has not joined any WIPO-administered IPR treaties since its 
previous TPR.   
63. Is Brazil intending to become a party to any WIPO-administered treaties in the 
near future such as the Madrid  Protocol, the WCT and WPPT?  
 
While Brazil is in the process of acceding to the Madrid Protocol, there is no intention to accede 
neither to the WCT nor to the WPPT, since it considers that those treaties are outdated and were hasty at attempting to regulate the digital enviro nment in 1996, with provisions that do not duly 
regulate all the possible use of works in the internet – uses of which arose since 1996. 
 
Page 107, paragraph 3.263  
It is mentioned that Brazil is working on an updated notificati on of its legislation to be 
submitted to the TRIPS Council.   
64. When can WTO members expect this to happen? 
 Considering that only minor amendments to existing legislation occurred in Brazil since the last notification and that a reform of the Brazilian Copyright Law is currently under way, Brazil intends 
to submit a notification of its legislation as soon as the Copyright Law is promulgated. 
 Page 107, paragraph 3.264 
 
It is mentioned that discussions regarding IPRs within MERCOSUR have taken place in 
recent years; however no harm onisation efforts have ensued. 
 
65. Can Brazil explain why, in their view, there has been no harmonization of IPR 
amongst the MERCOSUR countries?  WT/TPR/M/283/Add.1 
 
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MERCOSUR's Subgroup No. 7 was created to discuss and negotiate issues related to the industrial 
policies of the member countries of the block in order to contribute to the integration of production and move towards a common industrial policy.  
Among the permanent themes of discussion are those relating to Small and Medium-Sized 
Industries and Handicrafts, Intellectual Property and Quality and Innovation. A common framework of harmonized IP law has been discussed for some time in the group. Negotiations are in an 
advanced stage. 
 Further information may be found at MERCOSUR's web-site, including minutes of the meetings.  
Page 107, paragraph 3.265 
 According to the report, considerations of in tellectual property are included in the Plano 
Brasil Major. The aims are: to reduce costs and stimulate the productivity of companies; 
to foster foreign trade by fa cilitating credit and increasing access to technologies and 
markets, to attract investments in R&D,  to improve the business environment by 
simplifying procedures for regist ration, legalization and taxation. 
 66. Are the measures indicated in this pa ragraph linked to local content conditions? 
 
No, those measures are linked to the fulfillment of productive steps and investments in R&D. 
 67. When will Brazil eliminate tax discrimina tion of payment (royalties) for foreign 
technology transfer to proprietary compan ies in foreign countries (15% withholding 
tax)?  
Brazil does not intend to modify its legislation re garding the payment of taxes related to royalties, 
since it considers it an important source of income and fully in compliance with all the international instruments in force in the country. In addition, there is no tax discrimination considering that there is an equitable treatment between national and foreign companies in this regard. Please 
refer to question 53 for further information. 
 3.4.5.2.2  Industrial property  
3.4.5.2.2.2  Patents an d industrial designs  
Page 110, paragraph 3.275  
This paragraph briefly describes the improv ements done in these recent years for 
processing the patent. Despite the actions de scribed, the EU industry encounters still 
extremely extended time to have trademark and patent applications duly evaluated and 
approved by INPI. Furthermore, there are lim ited possibilities to consult documents in 
patent awards procedures, limited access to and shortcomings regarding the status of 
patents etc. New procedures were introd uces as from March 2013. Against this 
background: 
 
68. Could Brazil explain whether these me asures will help in  speeding up the 
procedures? Does Brazil envisage addition al new procedures aiming at reducing 
substantially the backlog of patents? When will Brazil allow that licences fees can be 
collected before a patent has been granted? When will Brazil extend the registrations of 
licenses and approval of technology transf er agreements to more than 5 years? 
 
The growing number of backlog of patent applicatio ns is a problem affecting not only Brazil, but 
also other major Patent Offices. The country has been permanently investing in expanding and modernizing the National Institute of Industrial Pr operty (INPI). Please refer to paragraphs 4.30 
to 4.32 of the Government's Report for further information. 
 Regarding licence fees before a patent is granted, the Brazilian Law only extends rights related to 
a patent after an application is duly examined an d granted by INPI. Thus, such rights are deemed 
existing and are subject to licence f ees only after they are constituted. 
 WT/TPR/M/283/Add.1 
 
- 117 - 
 
Lastly, the Brazilian Government observes that the limitation to contracts licensing IP rights is 
limited to the remaining term of protection of the right, that is, the extension of the contract may 
not be superior to the term of protection of the licensed right.  
Page 110, paragraph 3.270 
 The report mentions the "e-patentes" system  that will be functional in the future. 
 
69. When will the "e-patentes" system be fully functional? 
 The "e-patentes" system is due to be fully functional in July, 2013. 
 
Page 113, paragraph 3.287   
Article 229-C of Brazil's Patent Law No. 10. 196 requires ANVISA to provide "prior 
consent" before INPI grants any patents rela ting to pharmaceutical product or process 
inventions.  The stated goal of this scheme  is to "verify [whether] the object of the 
patent application is against public health ."  The process is now under review and 
ANVISA should provide Prior Consent based on an assessment of the impact of the pharmaceutical product or pr ocess on public health.  
 
70. The EU believes that it is unclear what the impact on public he alth will be defined 
and measured and therefore would like Brazil to clarify what criteria are to be used to 
define health concerns.  
 
The examination of pharmaceutical patent applications with the participation of ANVISA is part of a complex administrative act of the Executive branch, which relies on the combined expertise of 
ANVISA and INPI. The three criteria of patentabilit y are a good basis for evaluating the impact on 
Public Health of pharmaceutical patent applications.   ANVISA relies on a specialized and experienced te chnical staff to carry out its examination. The 
examination is carried out in full compliance with the Industrial Property Act and the Agreement on 
trade-related aspects of intellectual property rights  (TRIPS). In light of that, ANVISA's rules on the 
examination of patentability of pharmaceutical patent applications focus on the three patentability 
criteria, provided for in the TRIPS Agreement as well as in the Brazilian legislation: novelty, 
inventive step and industrial application  
Additionally, ANVISA also verifies if the invention contained in the patent application includes 
substance(s) the use of which is not allowed in the country and the prevention within Brazil's territory of the commercial exploitation is necessary to protect human, animal or plant life or health. 
 
Lastly, it is worth recalling that the TRIPS Agreemen t, in Article 1.1, provides that "Members shall 
be free to determine the appropriate method of implementing the provisions of this Agreement 
within their own legal system and practice". 
 71. Could Brazil further clarify the nature of ANVISA's role in its examination of 
pharmaceutical patent applications? 
 Kindly refer to answer to question 70.  
72. Could Brazil describe how ANVISA de termines whether an affected patent 
application is "against public health" and ho w such a requirement is  consistent with the 
obligation to make patents available for "any inventions … provided that they are new, 
involve an inventive step and are capabl e of industrial application" in TRIPS 
Article 27.1?   
Kindly refer to answer to question 70. 
 73. Article 4 of ANVISA's Regulation No. 21 requires ANVISA to determine whether an 
affected invention meets the patentability requir ements outlined in Brazil's Patent Law.  WT/TPR/M/283/Add.1 
 
- 118 - 
 
Could Brazil explain ANVISA's competen cy to substantively examine patent 
applications?  ANVISA's competency is provided by Article 229- C of the Industrial Property Law and pertinent 
regulations. ANVISA's role is fully in compliance with Article 1.1 of the TRIPS Agreement, which 
states that "Members shall be free to determin e the appropriate method of implementing the 
provisions of this Agreement within their own legal system and practice". 
 
74. Generally, TRIPS Article 27.1 requires Br azil to make patents "available … without 
discrimination as to … the field of technolo gy."  Could Brazil provide the legal and policy 
rationale for promulgating Article 229-C of Brazil's Patent Law and respective 
regulations? 
 The granting of pharmaceutical patents with the participation of the ANVISA is part of a complex 
administrative act of the Executive branch, which relies on the combined expertises of ANVISA and 
INPI. Additionally, it is worth recalling that TR IPS Agreement, in Article 1.1, provides that 
"Members shall be free to determine the appropriate method of implementing the provisions of this 
Agreement within their own legal system and practice". 
 75. TRIPS Article 39.3 generally requires WT O members, including Brazil, to protect 
test data submitted to market authorizing regulatory bodies "against unfair commercial 
use." Could Brazil explain how Article 195 of  Brazil's Patent Law complies with the 
requirements of TRIPS Art. 39.3 without provid ing fixed data protecti on time periods?   
 
Article 39.3 of the TRIPS Agreement stipulates  protection against unfair commercial use and 
disclosure without fixing any specific time period. This protection is accordingly provided by Article 195 of the Brazilian Industrial Property Law. 
 
76. Similarly, could Brazil clarify whether pharmaceutical related data submitted to 
ANVISA are treated as trade secrets or as protected information that is exclusively 
owned and controlled by the originator applicant?  
 
Brazil protects pharmaceutical-related data against unfair commercial use and unauthorized disclosure in the terms of Article 39.3 of the TR IPS Agreement. Please refer to Table 3.25 and 
paragraph 3.298 of the Secretariat's Report for further information. 
 77. Could Brazil clarify how ANVISA treats or iginator generated data submitted to gain 
market approval for non-patented products ? Assuming that a non-patented product 
receives market authorization, when is th e earliest a generic applicant (not data-
generating) can rely on the originator data in the course of receiving generic market 
authorization? 
 
Any data submitted to ANVISA is treated as undisclosed information and accordingly protected as such. Furthermore, ANVISA's public servants are under legal obligation to protect any information 
to which they have access to against unauthorized disclosure and unfair commercial use. The use 
of such information by ANVISA to authorize the marketing of pharmaceutical products for human medicinal use is not constrained by time frame and is deemed to be in full compliance with 
pertinent national law and international agreements in force in Brazil.  
 78. How ANVISA will conduct technical ex amination of patent applications? Will 
ANVISA recruit patent examiners? What ty pe of "technical examination" (formalities-
related examination, or patentability criter ia-related (novelty and inventiveness) 
examination) will be conducted by ANVI SA? Which is the different between the 
"technical examination" to be conducted by ANVISA and the one by the IP Agency 
(INPI)?   
 Kindly refer to answer to question 70. 
 
79. Do the patent law and practice in Braz il allow for patentability of "microbiological 
process"?  WT/TPR/M/283/Add.1 
 
- 119 - 
 
The exclusions from patentability in the Brazilian law are provided for in Article 10 of the Industrial 
Property Law. Please refer to Table 3.25 for a su mmary of exclusions from patentability in the 
Brazilian law. If an invention is not comprised in that list, the application must then comply with the three patentability criteria in order to be granted. 
 
80. Does Brazil plan to review the procedur es for granting patents or to enhance the 
c a p a c i t y  o f  A N V I S A  t o  s p e e d  u p  t h e  p r o c ess in order to comp ly with time limits 
stipulated by law for processing the requests?  
 As provided in the Government and the Secretariat's Report, Brazil has been heavily investing in its intellectual property system, including in those areas responsible for the examination of 
patents, in order to accelerate the examination of industrial property applications and reduce the 
backlog.   
3.4.5.2.3 Trademarks  
Paragraph 3.292, page 114 and Table 3.27  
This paragraph describes the trends of the trademarks. 
 81. Can Brazil explain why the number of tr ademark registrations has declined and 
fluctuated since 2007 propor tionately to the number of applications received? What 
further actions is Brazil planning to redu ce the backlog of trademarks registration? 
 These fluctuations are due to variations in th e number of trademark examiners at INPI. The 
Institute has already received authorization from the Presidency to hire 95 (ninety-five) additional 
trademark examiners, an expected increa se of 180% in the available workforce. 
 
3.4.5.2.4.1  Geographical indications 
Page 114, paragraph 3.293   Article 22 of WTO TRIPS defines a GI.  A GI can take any form and does not have to be a 
geographical name.  For example, 'Scotch Whisky ' qualifies as a GI and is entitled to the 
protection afforded by WTO TRIPS.  
In contrast to WTO TRIPS, however, the Br azilian Industrial Proper ty Institute (INPI) 
has advised the SWA that under Law 9,279 of 14 May 1996 only GIs which are the geographical name of a country, region or locality (in the Portuguese language) are 
eligible for registration. In other words, 'Sco tch Whisky' could not be registered as a GI 
because 'Scotch' is not a place in terms of  Brazilian law (the Brazilians would require 
'Whisky Escocia').  As WTO TRIPS does not re quire that a GI be a place name, many UK 
and EU GIs could be prevented from registering in Brazil. 
 
82. What action will Brazil take to ensure it s Industrial Property Law's provisions on 
geographical indications are in full comp liance with the terms of the WTO TRIPS 
Agreement, allowing geographical indications that do not take the form of a place name 
to be registered and appropriately protected?  
According to the TRIPS Agreements, "Members sha ll provide the legal means for interested parties 
to prevent: (a) the use of any means in the designat ion or presentation of a good that indicates or 
suggests that the good in question originates in a geographical area other than the true place of 
origin in a manner which misleads the public as to the geographical origin of the good; (b) any use 
which constitutes an act of unfair competition within the meaning of Article 10bis of the Paris 
Convention (1967)."  
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) as below.   
"Art. 177. Indication of source shall mean the ge ographical name of a country, city, region or 
locality in its territory, which has become known as a center of extraction, production or manufacture of a given product or of provision of a given service.  WT/TPR/M/283/Add.1 
 
- 120 - 
 
Art. 178. Denomination of origin shall be the ge ographical name of a country, city, region or 
locality in its territory, that designates a product or service whose qualities or characteristics are due exclusively or essentially to the geograph ical environment, including natural and human 
factors." 
 
In addition to such protection, Article 195 of the Industrial Property Law provides the legal means 
for interested parties to prevent acts of unfair competition which: (i) create confusion by any 
means whatever with the establishment, the goods, or the industrial or commercial activities, of a 
competitor; (ii) discredit the establishment, the good s, or the industrial or commercial activities, of 
a competitor by false allegations in the course of  trade; and (iii) mislead the public as to the 
nature, the manufacturing process, the characterist ics, the suitability for their purpose, or the 
quantity, of the goods. These acts include but are not limited to the use by competitors of 
indications which designate or present a good indica ting or suggesting that the good in question 
originates in a geographical area other than the true place of origin in a manner which misleads 
the public as to the geographical origin of the good. 
 Therefore, and in light of the preceding paragraphs , the pertinent provisions of the Industrial Law 
regarding geographical indications provide sufficient flexibility for regulatory procedures to comply 
with Article 22 of the TRIPS Agreement.  With regard specifically to the indication "Scotc h Whisky", Brazil observes that "The Scotch Whisky 
Association" recently applied for registration as GI at INPI. Affirmations regarding the possibility or 
not of its registration as a GI in Brazil are mere inferences before the formal and substantive examination by INPI are complete. In spite of that , "The Scotch Whisky Association" may, at any 
time, resort to the unfair competition provisions to prevent acts by third parties which they deem 
are using such indication in ways that constitute an act of unfair competition or misleads the public as to the geographical origin of the good. 
 
3.4.5.2.4.4  Other forms of IP: Undisclosed information 
Paragraph 3.298, page 115  
Brazil's Law No. 10.603 from 17 December 2002 provides data protection time frames 
for veterinary and agricultural products, but omits any reference to biopharmaceutical products.   
 
83. Could Brazil demonstrate the rationale for not providing innovative biopharmaceutical manufacturers clea r data protection time frames? 
 
Article 39.3 of the TRIPS Agreement only requires an effective protection against disclosure or any 
unfair commercial use of undisclosed test or other data submitted as a condition of approving the marketing of pharmaceutical products for human medicinal use. Such protection is provided 
by Article 195 of the Industrial Property Law, as described above. 
 3.4.5.3  Copyright 
Paragraph 3.299, page 115 
 The report mentions that the copyright issues are regulated by Law No. 9,610/1998. 
 
84. Does the draft bill to update Copy right Law 9,610/1998 contain provisions to 
protect copyright and related rights in the internet context, including rules for the 
enforcement of such rights online? 
 
Considering that the reform of the Brazilian Copy right Law is not complete and the draft bill is 
under protection against unauthorized disclosure, specific details may not be currently provided. 
Nevertheless, Brazil understands that addressing  the issue of the protection of copyright and 
related rights in the internet context is unavoidable in modern legislations.  WT/TPR/M/283/Add.1 
 
- 121 - 
 
4  Trade Policies By Sector 
 4.2  Agriculture, Forestry, and Fisheries  
With reference to fisheries, the EU acknowledg es the active role played by Brazil in the 
negotiations to clarify and improve WTO di sciplines on fisheries subsidies. More 
specifically Brazil has made, or cospon sored, numerous written submissions with 
detailed proposals on new WTO rules on  subsidies to the fisheries sector. 
 One of the key issues addressed in these submissions is the role that a fisheries 
management regime (national, international) can play in mitigating the fishery adverse 
effects of some subsidies. 
 85. Could Brazil briefly outline what are the main elements of its fisheries 
management regime? Could Braz il provide key figures on its fisheries and aquaculture 
industries?  
Brazilian fisheries management regime is in line with international standards and practices, 
especially those set by FAO. The regime encompasses conservation and management measures based on the best scientific evidence available; fisheries management control measures (fisheries monitoring, surveillance, control and enforcement mechanisms); mechanisms established to 
identify and quantify fishing capacity; vessel re gistration and licensing system; limited entry 
systems, catch quotas, limits on fishing effort or allocation of exclusive quotas to vessels, besides others. 
 
For the statistical data, the Brazilian Institute for Geography and Statistics distributes the figures for capture fishing and aquaculture. This information is available at 
http://seriesestatisticas.ibge.gov.br/series.a spx?vcodigo=IU17&t=producao-pescado-maritima-
continental  4.2.3 Domestic support measures  
4.2.3.1 General features  
Pages 121-122, paragraph 4.17  
According to the report, "food aid to all destinations totalled 47,284 tonnes over 
the 2008-10 period; in 2009, some 94% was rice".  
86. Could Brazil specify if this amount of food aid was granted to beneficiary countries 
in cash or in-kind form and to which extent  was the aid an emergency food aid. If in-
kind food aid was granted, was pa rt of the food aid monetised? 
 
The food aid provided by the Brazilian Govern ment over the 2008 – 2010 period was granted in 
kind to beneficiary countries and was not monetized.  The referred food assistance was provided in 
emergency situations, mainly through international organizations, and strictly in accordance with 
the demands and the needs officially expressed by  the countries affected by socio-environmental 
disasters.  
The food aid provided by the Brazilian Go vernment over the 200 8 – 2010 period was 
granted in kind to beneficiary countries and was not monetized. The referred food 
assistance was provided in emergency si tuations, mainly through international 
organizations, and strictly in accordance with the demands and the needs officially 
expressed by the countries affected by socio-environmental disasters. 
 4.2.3.2 Rural credit  
Pages 122-125  
 The provision of credit at fixed interest rate s remains one of the most important tools to 
promote the agriculture sector in Brazil. P ossibilities to reorganize the rural credit 
remain vast for the agricultural producers.   87. After reorganization of the rural credits which portion of them ends up unpaid and 
what are the consequences of that for the agricultural producer?  WT/TPR/M/283/Add.1 
 
- 122 - 
 
The rural portion of the rural credits that ends up unpaid is not predictable, varying according to 
the climatic season, once the production is the main collateral for those credits and that climate events remain the main reason of production losses. For family farmers, it is mandatory to hire the PROAGRO, rural insurance or other market instruments of financial protection in order to access 
rural credit lines, in a way that losses on its production and the following incapacity of payment 
are not charged over them, affecting only its expect ations of gains but not depleting its capital. For 
other agricultural producers, the same mechanisms of financial protection are available, but as an 
option and not as a mandatory rule. 
 4.3  Manufacturing  Pages 131 to 135, paragraphs 4.67 to 4.75 
 
Brazilian economy has played a positive role  throughout the international economic 
crisis, undertaking numerous fiscal re form packages to improve domestic 
competitiveness and growth. We are deeply co ncerned by the economic trade distorting 
and systemic implications of the discrimi natory local content, R&D and investment 
requirements contained within the INOV AR-AUTO programme and its predecessor, 
which offers a discriminatory 30 percentage points IPI tax relief for automotive 
products originating in Brazil and its pr eferential trade partners (MERCOSUR and 
Mexico).  
88. The Brazilian authorities are invited to  explain how INOVAR-AUTO's incentives 
linked to localization conditions comply with  WTO rules. The Brazilian authorities are 
furthermore invited to explain how the differe nt more favourable treatment accorded to 
some WTO Members comply with most-favoured-nation obligations. 
 Furthermore, there is concern that the Braz ilian Government intends to use the INOVAR-
AUTO programme as a model for additional incentive programmes announced in 
April 2013 as part of the Brasil Maior programme, currently being designed for the chemicals and petro-chemicals industries and 18 other sectors, including defence, 
health, oil and gas, aerospace, bio-ethano l and renewable energies, plastics, capital 
goods, and ITC.  
 
The new tax regime is designed to allow Brazil's domestic automotive industry to regain its 
competitiveness, by means of providing support to  technological development, innovation, safety, 
environmental protection, energy efficiency and improvement the quality of cars, trucks, buses 
and auto parts. Brazilian consumers will also bene fit from the effects of the new regime, as they 
will be able to enjoy a market with better, safer and more environmental friendly vehicles. 
 
The incentives given to products from MERCOS UR and Mexico stem from preferential trade 
agreements, and companies still need to be accredited in the regime and comply with its terms. 
 
89. Could Brazil please provide guarantees that the packages under development by the Brazilian Government for these industries will not include discriminatory tax benefit 
and that any such incentive package will give fair and equal treatment to both local and 
foreign content?  
Brazil firmly believes that nothing in the WTO agreements should be read as to prevent a Country 
from pursuing its developmental goals in manner consistent with its international commitments.  4.4  Energy 
4.4.3  Hydrocarbons 
4.4.3.1  Market features Page 137, paragraph 4.85 
 
According to the report, sector of refi neries needs some structural changes.  
 
90. Could Brazil specify its investments an d possibly its cooperation plans to enhance 
this sector?  The Secretariat Report refers to "structural changes" in the sector of refineries regarding the 
processing of light and heavy oil. Definite plans and investment in this area are still under way. WT/TPR/M/283/Add.1 
 
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91. Considering that on the basis of severa l published studies, Brazil has a significant 
shale gas potential, the EU would welcom e some comments on the current geologic 
potential, the legal framework and exploration activities.  
Based on studies published and other inputs, a national strategy for the natural gas in Brazil sector 
is under consideration.  
4.4.3.2  Regulatory framework 
Page 141, paragraph 4.99   According to the report, local-content commitments have been among the selection 
criteria in all concession rounds carried out to date.  
 92. The EU is concerned about the extensive use of local content requirements. Are 
there intentions from the Br azilian Government to increase  the requirement for local 
content for the oil sector?  
The purchases in the oil sector fulfil distinct gove rnmental purposes, to ensure the stable supply of 
energy and guarantee the proper exploitation of Brazilian natural resources. They go beyond a 
commercial rationale and are fundamental for the sustained development of Brazil's economy  
4.5  Services 
4.5.1.4  Insurance  Pages 152 to 154 
 
The EU notices that the report does not mention of the obstacles to access Brazil's 
reinsurance market. In this respect, it wo uld be worth to recall that on 31 March 2011 
two new resolutions came into force in Braz il; CNSP Res. 225 and CNSP Res. 232. These 
regulations dramatically restrict the ability of private reinsurers, especially foreign 
(re)insurers, to do business in Brazil. Restrictions on affiliate's transactions – 
Resolution 232 prohibits local (re)insurers from transferring more than 20% of the 
insurance premium on each coverage to re lated companies located outside of Brazil. 
Moreover, the resolution dictates that contra cts already signed will be subject to the 
20% limit either at renewal or on March 31, 2012, whichever is earlier. Previously, as is 
the international norm, reinsurance placemen ts made to companies in the same group 
were treated in a similar way to reinsurance placements with any other reinsurer. Compulsory reinsurance business with local participants - Under CNSP Res 225, with 
effect from March 31st 2011, insurance comp anies must cede at least 40% of each 
reinsurance cession to local reinsurers (previ ously local reinsurers just had a right of 
first refusal ‛). In August 2011 Mr Moreira Mend es, Brazilian Congressman, filed an 
appeal to the Brazilian General Attorney requ esting his opinion on the constitutionality 
and legality of the regulations. This opinion woul d be a very strong position if positive as 
it could be enforced in the Court, with immediate effect.   
93. Could Brazil indicate when the opinio n will be released? In any case how does 
Brazil intend to address and settle this issue?" 
 
Brazilian authorities have no record of any appeal  regarding the subject. Furthermore, there is no 
issue to be settled, since the resolutions were enacted in accordance with Brazilian law.   4.5.2  Communication services 
4.5.2.2  Regulatory framework 
Page 160, paragraph 4.198  
The report describes the specif ic conditions that are set by ANATEL for auctioning radio 
bands and underlines that those conditions m a y  b e  w a i v e d  b y  A N A T E L  u n d e r  c e r t a i n  
circumstances.  
 
94. Could Brazil explain how the local-content provisions in the auction bid are compatible with the WTO rules?   WT/TPR/M/283/Add.1 
 
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The auction provisions establish obligations for purchasing goods, products, equipments, and 
systems for telecommunications and data networks which meet certain technical requirements, described as Basic Production Process (Processo Produtivo Básico – PPB). No discrimination on the origin of capital of the producer is envisaged. Moreover, if auction winners find it impossible to 
comply with the criteria, for instance due to the lack of suppliers that meet the requirements, the 
obligations are waved.  
Nothing in the WTO Agreements should be read as prohibiting a Member to establish conditions on 
production or on technology in a certain territory or  to define levels of production or of technology 
thereupon.  
4.5.3  Air transport and airports 
4.5.3.2  Regulatory framework  4.5.3.2.1  Air transport services 
Page 162, paragraph 4.208 
 According to the Brazilian law, regular air transport services ar e granted only to 
Brazilian legal persons with he adquarters in Brazil, managed exclusively by Brazilians, 
and in which four fifths of voting rights are in Brazilian hands. In 2009, the Brazilian 
Senate approved a bill increasing the limit of  foreign ownership in Brazilian airlines from 
20% to 49%; however, the bill is still under consideration in the Chamber of Deputies. 
Domestic public air transport services (c abotage) are reserved to Brazilian legal 
persons. Foreign enterprises wishing to pr ovide regular international air transport 
services must be designated by the Govern ment of their home country, and obtain an 
authorization to operate in Brazil and an  authorization to operate air services. 
 95. Does Brazil foresee the opening of th e air transport services sector with any 
change in the criteria applied to foreig n enterprises wishing to provide regular 
international air transport services?  There are some Bills at Brazilian Congress regarding the increase of the limit for foreign 
investments in Brazilian air carriers. The limit today is 20% and the Bill number 6716/2009 
proposes the increase of this limit to 49%. This Bill was approved by the Senate and is under discussion at the Chamber of Deputies. Despite the debates at the Brazilian Congress, it is not 
possible to predict if the limit for foreign investments in Brazilian air carriers will be increased from 
the current 20% to 49% or more.  
There are some Bills at Brazilian Congress regard ing the increase of the limit for foreign 
investments in Brazilian air carriers. The limit today is 20% and the Bill 
number 6716/2009 proposes the incr ease of this limit to 49%. This Bill was approved by 
the Senate and is under discussion at the Chamber of Deputies. Despite the debates at 
the Brazilian Congress, it is not possible to pr edict if the limit for foreign investments in 
Brazilian air carriers will be increased fr om the current 20% to 49% or more. 
 
4.5.4  Maritime transport and ports 
4.5.4.2  Regulatory framework  4.5.4.2.1  Maritime transport services 
Page 166, paragraph 4.230 
 Cabotage is reserved for Brazilian-flag vessels operated by Brazilian shipping 
companies. Foreign vessels may only partic ipate in cabotage when chartered by a 
Brazilian shipping company, for which an  authorization must be obtained.  
 96. Are the Brazilian authorities considerin g any modification in both the present 
cabotage regulation and the system to author ize the transit of fishing boats in Brazilian 
ports?  
Foreign vessels may only participate in cabotage restricted to the transport of goods when 
chartered by a Brazilian shipping company, for which an authorization must be obtained in accordance with articles 9 and 10 of Law No. 9.432/97.  No modification in the current legislation is 
envisaged at the moment. 
 WT/TPR/M/283/Add.1 
 
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Page 166, paragraph 4.231  
 According to the report, Brazil still maintain s the Additional Freight Charge for the 
Renovation of the Merchant Navy, a fede ral tax levied on maritime freight. 
 
97. The Brazilian authorities are invited to provide explanations on the exemption of 
export cargos from the Additional Freight Ch arge for the Renovation of the Merchant 
Navy (AFRMM) which appears to constitute an  indirect export subsidy. This is of 
significant importance as around 90% of Brazilian exports are carried by sea 
(paragraph 4.239).  
The fees of the AFRMM are applied on a non-discrim inatory basis regarding the flag of the vessel. 
Rates are differentiated for long course shipping, cabotage, and lake and river navigation, in order 
to take account of the economic situation and market structure of the different sectors. Funds are 
collected to the Merchant Maritime Fund (FMM). The Fund finances the construction and repair of 
Brazilian vessels.  
4.5.5  Professional services 
Page 169, paragraph 4.249  The report mentions that procedures for re validation of foreign diplomas are complex 
and time consuming and mentions Brazil's in tention to review revalidation rules of 
foreign diplomas, titles, and certificates  in order to speed up the process.  
 
98. Could Brazil elaborate more on the state of play of this review and its roadmap? 
 A review of the current policy is in its early stag es of development by the Ministry of Education, 
along with representatives of public universities. The aim is to establish criteria to streamline the 
process of revalidation. 
EUROPEAN UNION (Follow-up questions) WT/TPR/S/283 
 
1.2  Output and Employment Page 17, paragraph 1.12 
 
Initial EU question 2: In the light of  these import constraints that hamper 
competitiveness of some sectors of Brazilian industry, how do the Brazilian authorities 
explain their decisions to adopt import restri ctions such as the raise of tariffs (e.g. 
current list of MERCOSUR Common Exte rnal Tariff – CET– exemptions)?  
 Initial reply: The proper management of MERCOSUR's tariff policy must address challenging 
international economic situations with the adoption of common trade policy instruments. It is 
important to highlight the fact that the rate s applied, as authorized by the MERCOSUR 
instruments, do not in any case exceed the maximum World Trade Organization (WTO) bound 
tariffs. 
 Follow-up question 1: Could Brazil explain wh at is the economic rationale behind the 
decision to adopt import restrictions su ch as the raise in tariffs (MERCOSUR CET 
exemptions)?  As previously informed, the product-by-product analysis undertaken by the GTAT-TEC has taken 
into account issues pertaining to competitiveness and price, as well as the effects of the 
international financial crisis in the Brazilian productive sector.  WT/TPR/M/283/Add.1 
 
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2  Trade Policy Regime: Framework And Objectives 
2.4  Foreign Investment Regime Page 36, paragraph 2.25  
According to this paragraph, FDIs is restricted in certain activities. It is mentioned that 
postal services are regulated under Law No. 6,538/78.  
Initial EU question 6: Could Brazil explain what  conditions are applicable to FDIs in the 
postal services?  Initial reply: Since March of 2013, the Department of Trade Remedies (DECOM) counts on 47 new 
investigators. In all, DECOM has 63 investigators carrying out trade defence investigations. 
 Follow-up question 2: the above answer must have been wrongly attributed; therefore 
we ask again to Brazil to kindly explain what  conditions are applic able to FDIs in the 
postal services.   
Please see page 97 a "corrigendum" to Brazil's initial replies. 
 Initial EU question 12: Concerning imported textiles, they are due to price and origin 
control in Brazil. Is Brazil considering wa ys to streamline and shorten the textile 
customs clearance procedure (tha t may last up to 180 days)? 
 Initial reply: The customs clearance procedure of te xtile products follows the same rules applied to 
any other product. However, in some specific cases, basically when there are sufficient grounds for 
suspecting of commercial fraud and when the applicable penalty is the seizure, the imported goods can be detained for up to 90 days. Depending on the case, this timeframe can be extended for 
90 days more. That is the case of the grey channel. Frequently, the detained goods are seized at 
the end of this procedure. The average customs clearance time in 2012 for the grey channel was 
57,10 days. Fraudulent operations of imported textiles frequently occur.  
Follow-up question 3: Could Brazil provide an indication of the share of imported textile 
products into Brazil that go thro ugh the grey channel procedures? 
 
Year Share (%) 
2010 0.18 
2011 0.29 
2012 0.66 
 
3  Trade Policies And Practices By Measure  
 3.2.3.1  Applied MFN tariff 
Page 52, paragraph 3.36 - Tariff rate exemptions to the CET 
 Initial EU question 17: What is the impact of the tariff hikes on the competitiveness of 
Brazil's economy and on prices of loca l products protected by tariff hikes? 
 
Initial reply: The Technical Group on Tariff Modi fications of the MERCOSUR Common External Tariff 
(GTAT-TEC) conducted technical studies in order to support decisions taken by the CAMEX on the 
matter. Among other factors, product-to-product analysis of competitiveness and price in the 
context of their supply chains were taken into account.  
Follow-up question 4: Have the GTAT-TEC and CAMEX concluded that the import tariff 
hikes would improve the competitiveness of the Brazilian domestic industry?  
 GTAT-TEC concluded that, before the great economic imbalance caused by the international 
financial crisis in major world markets, the temporary tariff increase for some products would be 
vital to maintaining the survival of some Brazilian industries and the level of employment. WT/TPR/M/283/Add.1 
 
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Initial EU question 23: Can Brazil clarify how it  is planning to ensure that IPI reductions 
conceded to certain producers (e.g. for computing and automating goods linked to value added from R&D and innovation activities in Brazil) which de facto result in lower rates 
of IPI are compatible with the principle that  same rates apply on domestically produced 
and imported goods? 
 Initial reply: The programs aim at fostering innovation and a qualified workforce to promote 
sustainable development and do not discriminate upon the origin of inputs. Some of them set out 
production and technology requirements to help achieve these goals. The IPI suspensions do not 
result in de facto lower rates of IPI, the rates are the same. Consequently they do not discriminate between imported and domestic inputs. 
 
Follow-up question 5: Can a producer benefit from these IPI suspensions if it performs 
the production and technology requirements abroad?  
 
As previously stated the IPI suspension is conceived in a non discriminatory basis to foster innovation and promote sustainable development in Brazil benefiting inputs from both domestic 
and imported origin.  
 3.2.6  Import prohibitions, restrictions, and licensing  
Page 59, paragraph 3.57 
 
Initial EU question 26: What WTO compatib le measures are justifying non-automatic 
licensing for a very high number of goods (tariff lines)? 
 
Initial reply: As mentioned before, the products subject to non-automatic licensing are listed in the Administrative Treatment of the Integrated System  of Foreign Trade (SISCOMEX) and can also be 
found on the web page of the Ministry of  Development, Industry and Foreign Trade 
(www.mdic.gov.br). In their majority, they are pr oducts which may cause damage to human, plant 
or animal health, products capable of causing environmental damage, products classified as 
weapons or made for warlike purposes, products subject to non-tariff quotas as established in the 
agreements of the Uruguay Round, products subject to tariff quotas and products subject to trade 
remedies measures established in accordance with the WTO agreements. The normative framework related to import licensing procedures is based on the following legislation: 
i) Agreement on Import Licensing Procedures and ii) SECEX Ordinance No. 23 of 14 July 2011. 
 Follow-up question 6: Could Brazil explain on which "agreements of the Uruguay Round" 
the high number of products under non-automa tic import licensing would be justified, 
for purposes other than the implementation of  quantitative restrictions in line with the 
Agreement on Import Licensing Procedures, Article 3?  
In Brazil's view, nothing in the WTO Agreements limit the number of products that can be 
subjected to non-automatic import licencing, prov ided that the rules of the Agreement on Import 
Licensing Procedures are respected. As previously stated, the Brazilian Government is committed 
to manage its non-automatic import system in a transparent and non-distortive manner.  
 3.2.9  Sanitary and phytosanitary measures  
Pages 66-67, paragraphs 3.91 and 3.93 
 Initial EU question 32: How does Brazil a ssure that any requirements for control, 
inspection and approval of individual spec imens of a product are limited to what is 
reasonable and necessary?  
 Initial reply by Brazil: Brazil is constantly working for improvement of its import procedures and 
controls. Border controls are important to ensure that pests and diseases do not affect the 
country's agriculture, one of th e main economic sectors of the country. In this sense, Brazil 
remains highly committed to the SPS Agreement. 
 
Follow-up question 7: Could Brazil specify ho w its efforts to improve import procedures 
and controls, will lead to a simpler system , and limit any requirements for control, 
inspection and approval of individual specim ens of a product to what is reasonable and 
necessary, as foreseen in point 1(e) of Annex C of the WTO SPS Agreement? WT/TPR/M/283/Add.1 
 
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The Brazilian Government is evaluating whether or not any improvement is necessary in its 
importing control system, with a view to maintaining the country's appropriate sanitary and phytosanitary level of protection. Some possibilities that might be considered are related to pre-licensing and the number of products subject to non-automatic licensing.  
 
Initial EU question 33: Is Brazil planning to review and simplify its import rules by 
identifying and eliminating overlapping proc edures which creates extra administrative 
burden unnecessary to achieve its level of  sanitary and phytosanitary protection?  
 Initial reply by Brazil: Brazil is constantly working for improvement of its import procedures and controls. Border controls are important to ensure that pests and diseases do not affect the 
country's agriculture, one of th e main economic sectors of the country. In this sense, Brazil 
remains highly committed to the SPS Agreement.  
Follow-up to questions 8: Could Brazil specify whether its efforts to improve import 
procedures and controls, includes identify ing and eliminating overlapping procedures 
which create extra burden with no added va lue for achieving its level of sanitary and 
phytosanitary protection?   
 Please, see answer to follow-up question 7.   
Initial EU question 34: Could Brazil indicate  the procedure and timeframes for carrying 
out audit/inspection missions to access the sa nitary controls and inspection systems in 
the exporting countries, before exports to Brazil can begin? 
 
Initial reply: Import risk assessment involves complex processes for the protection of life and health of people, animals and plants. They are extremely dependant on the information provided 
by stakeholders concerning diseases, pests, animals, plants, the environment and the interaction 
among these elements.  The complexity of each PRA varies according to the commodity in question and its intended use, as 
well as the quarantine pests that may be spread, and a case by case approach is thus required. 
For the same reason, it is not feasible to work under a single timeframe.  
Agriculture has high economic importance in Brazil and requires solid, science-based measures for 
its protection.  
Follow-up question 9: As part of process to approve imports into Brazil from a third 
country, could Brazil inform about the procedur es of inspections/ audits performed in 
exporting countries? The EU is  particularly interested in information that allows 
predictability and transparency to the approval process.  
 
In particular could Brazil explain:  
a) Procedures and timeframes for the en tire approval process, including an 
updating of the calendar of visit to EU  MSs (first proposed by Brazil in 2010)? 
b) The procedure followed by brazil to carry out audit/inspection missions in 
the exporting countries to evaluate  their sanitary and phytosanitary 
inspection and certification systems, including the scope of these missions 
and the information required from the exporting country before the mission 
takes place?  
c) The procedure and timeframes to ca rry out PRA specifically for plant and 
plant products? 
 
a) Brazil continues to send missions to the EU as well as non-EU countries in order to inspect / 
audit establishments and sanitary and phytosanitary inspection and certification systems. There is no pre-determined timeframe, since it varies accord ing to the sanitary risk posed by the product to 
be imported. 
 b) The calendar for inspections/audits abroad is established through bilateral negotiations. The procedures vary in a case by case basis, and depend on the products in question. 
 WT/TPR/M/283/Add.1 
 
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c) The procedures for approval of plant and plant products may vary depending on the risks 
assessed with the elements involved (plant, pest , disease, animal, commodity), which define the 
scope of missions when necessary. These proc edures follow the IPPC standards and are 
established in 06/2005 
(http://www.in.gov.br/visualiza/in dex.jsp?jornal=1&pagina=3&data =17/05/2005 ). There is no 
pre-determined timeframe since it varies according to the phytosanitary risk posed by the plant or 
plant product to be imported. 
 
Initial EU question 38:  What are the reason s and justifications that export taxes on 
leather raw materials are still in place? Why is this measure still in place if the local 
leather article industry has no domestic  shortage of these raw materials?  
 
Initial reply: The export tax on wet blue leat her was adopted in 2001 in a context where most 
leather importers apply tariff escalation to the leather chain.  
 
Follow-up question 10: does Brazil still cons ider that the current context justifies the 
export taxes? 
 
Yes, because the context which led to the applic ation of the export tax has not changed and is 
exactly the same as 2001.  
3.3.4.2  Reintegra programme  
Page 71, paragraphs 3.115-3.116   
Initial EU question 40: Could Brazil please clarify whether their authorities intend to 
extend the programme?   
Initial reply: REINTEGRA has not been renewed, since the Provisional Measure 601/2012 is not 
effective anymore.  Follow-up question 11: Could Brazil specify wh ether (despite the expiry of Provisional 
Measure 601/2012) there are any plans or intentions to re-introduce the Reintegra 
program? In particular, are there any plans to introduce respective provisions to some 
other Provisional Measures in force (i.e. Provisional measure 6 15/2013) which, based 
on the views of Brazilian Ministry of Finance,   de facto would ensure continuity of the 
Reintegra program as it does not include any monthly payments?   
For the moment, no decision has been made on this issue.  
 3.4.2  Incentives Page 84 and subsequent 
 
Initial EU question 46: Would Brazil elaborate on the background of these programmes (such as Inovar-Auto, REPNBL-Redes, and othe r incentives in the field of information 
technologies) and address the issue of appa rently discriminatory internal taxation 
applied to the disadvantage of imported g oods? Could Brazil provide its views on the 
consistency of the mentioned incentives linke d to local content criteria with the GATT 
and TRIMs agreements? 
 Initial reply: The programs set out technology and production requirements for the tax benefits that aim to attract investments in research, development and technological innovation as well as 
the performance of productive steps in Brazil.  No thing in the WTO Agreements should be read as 
prohibiting a Member to establish conditions on production or on technology in a certain territory or to define levels of production or of technology thereupon. Domestic and imported inputs can be 
equally used. The exemption granted in the regimes would otherwise be converted in tax credits 
that can be offset, therefore the programs are fiscally neutral.   
Follow-up question 12: Can Brazil confirm that  it considers the performance of a certain 
number of productive steps in its territory as  an acceptable condition for granting tax 
benefits, under WTO rules?   WT/TPR/M/283/Add.1 
 
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As Brazil has already stated that nothing in the WTO Agreements should be read as preventing a 
Member from promoting sustainable development in a manner consistent with its international commitments.    
3.4.2.5  R&D and other programmes 
Page 94  
Initial EU question 53: When does Brazil end the discrimination that Brazilian companies 
do not pay CIDE tax for the acquisition or use of domestically produced "technology", 
but only for technology transfers from abroad?  
 
Initial reply:  Foreign enterprises established in Brazil are granted national treatment, including 
identical tax treatment. CIDE is levied on pa yments made by companies established in Brazil 
(either of national or foreign capital) to foreign suppliers relative to certain transactions involving 
transfer of technology. CIDE rate is 10%. However, Brazilian Tax System provides mechanisms to 
ensure tax neutrality. In transactions on which CIDE is levied, the income tax rate is 15%, in contrast to the rate of 25% levied on other transactions. The net tax paid in both circumstances is 
the same.  
 Follow-up question 13:  Why is the 10% CIDE  tax needed if it is tax neutral (normal 
income tax rate 25% but reduced to 15% if CIDE is levied)? Why should companies be 
burdened with complex justifications (isolat ing transactions which are CIDE levied) or 
with income taxes (CIDE tax neutrality depe nds on income tax which depends on the 
income tax situation of a company and ca n be in many cases lower than 25%)?  
 
The Contribution for Intervention in the Economic Domain (CIDE), levied on certain transactions involving transfer of technology, was created by Law 10.168/2000. The resources raised through 
the contribution are allocated to the National Fund for Scientific and Technological Development 
(FNDCT), which finances programs of scientific research and technological cooperation between 
universities, R&D centers and the private sector. As stated, for the companies the net tax rate applied is the same, regardless of whether CIDE is levied or not. It is a budgetary fiscal issue. 
CIDE contributions have a particular destination, whereas income taxes are destined to the overall 
budget.  
3.4.2.7  Other schemes 
Page 99, paragraph 3.226  
Initial EU question 56: How can Brazil justif y the discrimination that programmes such 
as INOVAR-AUTO include as regards the treatm ent of imported inputs, in particular in 
the sector of automotive parts and compon ents, due inter alia to certain domestic 
manufacturing or investment conditions?   
 
Initial reply: There is no discrimination in the program, both manufacturers and importers may equally benefit from INOVAR-AUTO, as long as they meet energy-efficiency requirements. 
Law 12.715 gives tax credits both to accredited companies producing or importing automobiles in 
Brazil in a manner consistent with WTO agreements . The beneficiaries are entitled to choose freely 
which expenditures listed under the Law they may perform in order to acquire the credit. 
 
Follow-up question 14: Could Brazil specify what, other than discriminatory taxation 
against imported goods, is the nature of the requirement to perform most of the production stages for cars and car pa rts established in Decrees 7.819/2012 
and 8.015/2013. How can cars and car parts ma nufacturers that comply with energy-
efficiency requirements but do not perfor m the required production stages in the 
Brazilian territory benefit from the 30 percentage point IPI reduction?  
 
As already stated, as long as they are accredited, both importers and producers benefit equally from the programme that do not cover auto-parts or inputs.   
 
Initial EU question 57: Is Brazil considering the extension of this kind of local content 
conditions in the programmes covering other industrial sectors?  
Initial reply: They are not local content conditions. WT/TPR/M/283/Add.1 
 
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Follow-up question 15: Could Brazil confir m that none of the planned incentive 
programmes (particularly for sectors such as  chemicals, textiles and apparel, metallurgy 
and capital goods) will consist of measures providing preferential fiscal treatment to 
products that comply with a certain percenta ge of locally aggregated value or with a 
certain number of production stages pe rformed on the national territory?  
 
Please, see answer to follow-up question 12. 
 3.4.4  Government Procurement  3.4.4.1  General features 
Page 102 and subsequent 
 Initial EU question 59: Could Brazil clarify wh ether they envisage to revise this law with 
a view to give non-discriminatory access fo r foreign bidders to the public procurement 
market of Brazil?  
Initial reply: The introduction of margins of preference in public procurement does not have the 
purpose of being discriminatory or trade restrictive.  The definition of the sectors and the respective 
preferential margins is based on studies that take a number of criteria into account, including job and income generation, effect on tax revenues as well as technology development and innovation 
performed in Brazil. 
 Follow-up question 16: Could Brazil explain if  there are criteria to designate a tendering 
procedure national as opposed to international? 
 The choice by a national or international te ndering is a discretionary decision of the 
government, based on the national interest.  
 Initial EU question 60: Could Brazil clarify to what extent and to which sectors these 
provisions have been applied in practice s. Could you provide an overview on the 
implementation of these measures fixing margins? 
 Initial reply: 
 
Sector Margin (%) 
Clothing, footwear and artifacts 20 
Backhoes and graders 15 to 25 
Drugs and medicines 8 a 25% 
Medical products 8 a 25 
Paper currency 20 
Vehicles for railways 20 
Trucks, vans and road implements 14 a 17 
Drills and mechanized patrols 15 a 20 
 Follow up question 17: Could Brazil clarify if any study on the application of these 
margins has been undertaken and if some statis tics on the rate of implementation of 
these measures can be provided? Could Braz il also clarify if the preferences margins 
also apply to procurement by  State-owned Enterprises? 
 In accordance with Law 12.349/2010, the applicat ion of the margins of preference must be 
grounded in studies and these margins can be us ed in procurement by State-owned Enterprises. 
 
3.4.5  Intellectual property rights 3.4.5.1  General features  
Page 107, paragraph 3.262 
 Initial EU question 63: Is Brazil intending to become a party to any WIPO-administered 
treaties in the near future such as the Madrid Protocol, the WCT and WPPT?  
 Initial reply: While Brazil is in the process of acceding to the Madrid Protocol, there is no intention to accede neither to the WCT nor to the WPPT, since it considers that those treaties are outdated WT/TPR/M/283/Add.1 
 
- 132 - 
 
and were hasty at attempting to regulate the digital environment in 1996, with provisions that do 
not duly regulate all the possible use of works in the internet – uses of which arose since 1996.  Follow-up question 18: Could Brazil specify when it intends to complete the accession 
procedure to the Madrid Protocol? Brazil has announced its intention to accede to it 
several years ago but no developmen t has been registered since.  
 
The legislative process for acceding to a treaty  demands an adequate period of time for due 
evaluation of the costs and benefits of the agreement, especially when it introduces major changes in the applicable law and practice in place. WT/TPR/M/283/Add.1 
 
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HONG KONG, CHINA 
WT/TPR/S/283 
 4  Trade Policies By Sector 
 
Page 154, paragraph 4.170 Securities 
 
The Brazilian Securities Exchange Commission (CVM) is in charge of supervising the securities markets in Brazil.  It is empowe red to regulate the activities of market 
participants. The CVM also has the authority to suspend the trading, issuance, or 
distribution of securities as well as stock ex change operations.  As auxiliary entities of 
the CVM, stock exchanges and other market  associations have been granted self-
regulatory power.   
 
1. What factors are taken into account by  the CVM when suspending the trading, 
issuance, or distribution of securities? Is there any mechanism for operators to appeal 
against the decisions of the CVM?  How are the regulatory roles and responsibilities 
divided between the CVM and stock exch anges and other market associations? 
 The factors taken into account by CVM when suspen ding the trading, issuance, or distribution of 
securities are provided for in Article 9, Paragraph 1 of the Securities Act (Law 6.385/76). In order 
to prevent or correct abnormal market situations, CVM may suspend trading of securities or declare the recess of a stock exchange; suspend or cancel the registrations provided for in this 
law; publish information or recommendations for the purpose of informing or advising market 
participants; and prohibit market participants, under the penalty of fine, from performing any activities it may specify, which it considers to be harmful to normal market functioning.  
 
The distribution of securities issues in the market ; the purchase of securities for resale, for their 
own account; the intermediation or brokerage on op erations involving titles; and the clearing and 
settlement in operations involving securities, shall all require prior authorization from the 
Securities Commission of Brazil. According to the Securities Act, CVM shall order the suspension of 
any issuance or distribution that is not being made in accordance with the registration provisions of Article 16 of the same Act and particularly wh en the issuance has been deemed fraudulent or 
illegal, even after it has been registered. Also, when the offer, release, promotion, or 
announcement of the securities is being made under conditions other than those contained in the registration, or with false, fraudulent, or substantially inaccurate information. 
 
All decisions of CVM are subject to appeal as set forth by CVM Deliberation 538/08. The decisions of the technical areas are subject to appeal to the Board of Commissioners. The final decisions of 
the Board of Commissioners are subject to appeal to the National Financial System Appealing 
Council (CRSFN). Any technical decision of any sort shall ultimately not be prevented from being 
taken to the Judiciary Power.  
The regulatory roles and responsibilities of CVM are NOT divided between the CVM and stock 
exchanges and other market associations. They are rather shared and CVM has always the final word upon any decision it might want to review. As provided by Article 17 of the Securities Act, 
the stock exchanges, futures exchanges, organize d over-the-counter market entities (OTC) and 
securities clearing and settlement entities shall have administrative and financial autonomy, and shall operate UNDER the supervision of the Securities Commission of Brazil. They are 
auxiliary/supplementary entities of the Securities Commission of  Brazil, which are required to 
supervise their respective members and the securities transactions carried out by them.  
 Page 156, paragraph 4.180 
Communication services 
 The prices of fixed telephony services provid ed under a concession are controlled by the 
National Telecommunications Agency (ANATEL) .  ANATEL ordered th e reduction of the 
retail price of a call from a fixed line to a mobile phone for 2012, 2013 and 2014.      WT/TPR/M/283/Add.1 
 
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2. Please share with us the procedures in formulating the retail price of a call from a 
fixed line to a mobile phone.  Did ANATEL  refer to any international practices or 
standards in formulating the price?  Has ANATEL taken any measures to consult or 
inform the stakeholders before placing the order? 
 
Retail tariffs for fixed line services provided by concessionaires (incumbents) are subject to regulation by Anatel, according to article 19, VII, of the General Telecommunications Law.  
 
Recently, ANATEL approved Resolution No. 576, of October 31, 2011, establishing rules on calls between fixed line services (Serviço Telefônico Fixo Comutado – STFC) and mobile services (Serviço Móvel Pessoal – SMP and Serviço Móvel Especializado – SME, also known as 
"trunking"). These rules were established as an intermediate stage to the implementation of a Cost 
Model. The Resolution states that a Reduction Fact or will be applied over a three-year period, in 
the next three readjustments of the fixed-mobile retail rates, as follows: 
 
- For the first adjustment, ANATEL will apply a Reduction Factor of 18% to the fixed-
mobile retail rates, which will result in a net reduction of approximately 10% of the 
amounts currently paid by users, considering the application of the 
Telecommunications Services Index (TSI) for the period between June 2009 and June 2011; 
 
- For the following adjustment, a Reduction Factor of 12% will be applied, resulting in a 
net reduction of about 10%, considering the application of the Telecommunications Services Index for the period between June 2011 and June 2012; 
 
- If the Cost Model has not yet been implemented, the third adjustment will include the 
application of 10% Reduction Factor, resulting in a net reduction of  7%, considering 
the application of the Telecommunications Services Index for the period between 
June 2012 and June 2013. 
 Overall, the application of these reducers should decrease the current value of fixed-mobile retail 
prices as indicated in the table below: 
 
 
In the process of establishing these criteria, ANATEL took into consideration market surveys, 
international benchmarks, preliminary cost estimates of the fixed-mobile rates and the prospect that the cost model will be implemented in the co ming years. The adoption of the resolution was 
preceded by Public Consultation No. 37, of October 11, 2010, which received contributions from 
different stakeholders, including telecom operators, civil society and members of the 
telecommunications sector.  
Page 162, paragraph 4.208 
Air transport services  
A bill that increases the limit of foreign owne rship in Brazilian airlines from 20% to 49% 
was passed in the Brazilian Sena te in November 2009. Howe ver, the bill is still under 
consideration in the Chamber of Deputies.    
3. We are interested to know the latest pr ogress of the bill.  What factors are being 
considered by the Chamber of Deputies?  Is there any target date for passing the bill?  When will the bill be effective once it is passed? 
 
There are some Bills under discussion at the Brazilian Congress regarding the increase of the limit for foreign investments in Brazilian air carriers. The limit today is 20% and the Bill 
number 6716/2009 proposes the increase of this limit to 49%. This Bill was approved by the 
Senate and is under discussion at the Chamber of  Deputies. Despite the debates at the Brazilian 
Congress, it is not possible to predict if the limit for foreign investments in Brazilian air carriers will be increased from the current 20% to 49%, or more. Current value R$ 0,54 
2012 R$ 0,484 
2013 R$ 0,449 
2014 R$ 0,425 WT/TPR/M/283/Add.1 
 
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Page 168, paragraph 4.240 
Ports  Provisional Measure No. 595 maintains a decent ralised system of port administration 
and allows the leasing of public ports areas an d facilities to the private sector, including 
foreign companies.  Firms supplying auxiliar y port services must be established in 
Brazil, but foreign capital may particip ate and receive national treatment. 
 
4. Do you have any statistics of foreign participation in port activities since the adoption of the Provisional Measure No. 595?  While foreign capital may participate in 
auxiliary port services, is there any foreig n equity cap?  Can companies wholly or 
majority owned by foreign capital also enjoy national treatment? 
 There are no available statistics on foreign participation in ports activities since Provisional 
Measure No. 595/2012 was issued. Even before th e publication of the PM No. 595/2012 there was 
no restriction on foreign participation in the Brazilian port sector. As examples of foreign participation in the sector, it could be mentioned (i) the Container Terminal of the Port of Suape - 
in the state of Pernambuco - controlled by the ICTS I Group;  and (ii) the Container Terminal of the 
Port of Itajai – in the state of Santa Catarina – controlled by Maersk Group. In these examples, the 
port terminals are located within the public port s and were leased through a bidding process.  
 
There is no limit for the participation of foreign capital in the port sector, as long as the company 
owned by foreign capital has headquarters in the Br azil and it is duly registered under Brazilian 
law, condition which enables the company to benefit from national treatment.  
 
Page 169, paragraph 4.249 Professional services 
 
Professionals with foreign qualifications, wh o would like to practise in Brazil, must 
obtain revalidation of their degrees from a university recognised by the Ministry of 
Education and meet the requirements established by law.  The procedures for 
revalidation of foreign diplomas by recogn ised universities in Brazil are complex and 
time consuming.  In order to speed up th e process, Brazilian Government is reviewing 
the revalidation rules. 
 
5. Grateful if the Brazilian Government coul d share with us the scope and details of 
the review, its latest progress, an d the proposed follow-up actions.  
 
A review of the current policy is in its early stag es of development by the Ministry of Education, 
along with representatives of public universities. The aim is to establish criteria to streamline the process of revalidation. WT/TPR/M/283/Add.1 
 
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INDIA 
WT/TPR/S/283 
 Page 75, paragraphs 3.135-3.141 
 
1. Could Brazil provide details of the Export Financing Programme (PROEX) being 
implemented by it, especially the eligib ility criteria and the main beneficiaries 
(industry/sector/individual recipients) under  it in the last three fiscal years? 
 PROEX has two programmes: PROEX Financing and PROEX Equalization. PROEX Financing provides 
direct credit to the exporter or importer of Brazilian goods and services in similar conditions to 
those practiced in international markets. It is mainly designed to support micro, small, and 
medium sized enterprises (MSEMs) with an annual turnover of up to R$600 million (about US$300 million).  
 
PROEX Equalization aims at reducing interest rates provided by financial institutions in Brazil or abroad, so as to make interest rates equivalent to those in the international market. 
 
Page 77, paragraphs 3.143-3.147   2. (a) Could Brazil provide details of the various export financing programmes 
being operated by BNDES?  
 The export financing programmes operated by BNDES are described in Table A3.1 of the Report by 
the Secretariat (WT/TPR/S/283). 
 
(b) In particular, could Brazil provide details of the BNDES-EXIM programme, 
which are geared to promote exports with local value added, and where the 
stated conditions for participation ofte n include domestic content/product on 
thresholds? Are these domestic content/production requirements mandatory in nature? Who are the main benefi ciaries (industry/sector/individual 
recipients) under this programme in the last three fiscal years? 
 BNDES Exim credit lines do not require mandatory domestic content/production. The main 
beneficiaries of BNDES export credit lines are detailed at: 
 http://www.bndes.gov.br/S iteBNDES/bndes/bndes_pt/Institucio nal/BNDES_Transparente/Estatisti
cas_Operacionais/exportacao.html 
 Page 97, paragraph 3.222  
3. (a) Could Brazil provide details of the Automatic BNES credit facilitation schemes 
 of up to R$10 million through financia l institutions for the implementation, 
 expansion, modernisation or company relocation projects, including the 
 acquisition of new machinery and equipment of domestic manufacture, 
 accredited by BNDES and associated working capital? 
 
The Automatic BNDES credit line is described at: 
 http://www.bndes.gov.br/S iteBNDES/bndes/bndes_pt/Institucio nal/Apoio_Financeiro/Produtos/BN
DES_Automatico/ 
 
 (b) In particular, could Brazil provid e details regarding the requirement of 
"acquisition of new machinery and eq uipment of domestic manufacture"? 
Which domestic manufactures have  benefitted majorly from this 
requirement?  
 
Acquisition of new machinery and equipment of domestic manufacture is not a requirement but 
only an example of a certain type of projects' cost which could be financed under Automatic WT/TPR/M/283/Add.1 
 
- 137 - 
 
BNDES credit line.  Automatic BNDES credit line is operated by accredited financial institutions and 
BNDES does not have the detailed data on domestic manufacturers indirectly supported.  Page 128, Table 4.5 
 
Policy of Guaranteed Minimum Prices (PGP M) and Federal Government Acquisition 
Programme (AGF) 
 
- The PGPM fixes minimum guaranteed prices annually for some of Brazil's 
main crops. Prices are promulgated by  the National Monetary Council (CMN) 
through portarias (previously thro ugh decrees). Portaria No. 701 of 
30 July 2012 fixes minimum prices for a number of products for the 
2012/13 summer harvest. 
 
- The AGF allows producers and cooperat ives to sell their products to the 
CONAB at a guaranteed minimum price,  so as to support farmers' income 
stability and form public stocks. The instrument is applied on specific 
products and regions, for up to 100% of a farmer's production. Products 
purchased under the AGF must be stored in warehouses accredited by the CONAB. 
 
4. Brazil implements minimum support price policy for agriculture sector. 
Government announces minimum support price fo r some crops. It is requested to clarify 
whether total production of a particular cr op is eligible for procurement or whether 
government sets a target for the procurem ent. How is this policy treated in WTO's 
notification on domestic support?  
After consulting other areas of the government, MAPA assigns budgetary allocations according to 
the current needs and conditions of each commodity market. The access to different "Policy of Guaranteed Minimum Prices" (PGPM) programs is  decided according to the available budgetary 
allocations and the specific conditions of the market.  
 
In order to make use of any PGPM program, at least two conditions apply: i) the market price should be noticeably below the minimum price; and ii) there are available budgetary allocations. It 
is not unusual that the market price is below the minimum price in some part of the country, but 
no supporting program is used. Depending on each specific situation, one or more of the programs available is implemented, and the basis fo r the notification varies accordingly.  
 
In the case of the procurement program, the eligib le production notified is the quantity actually 
benefited by the measure. This is the case for the Federal Government Acquisition Program (AGF) and the Public Contract Options. Regarding the programs based on direct payments, the budgetary 
outlays are the notified figures. 
 Page 147, paragraph 4.130 
 
Brazil participated in the WTO negotiations on financial services; although it has not 
ratified the Fifth Protocol, amendments made  to its insurance legislation in 2007 may 
make this possible. Among other things, the amendments allow, under certain 
conditions, the cross-border supply of in surance services, which was previously 
forbidden.  
5. Brazil is requested to inform about the conditions applicable for allowing cross-
border supply of insurance services?  
Complementary Law 126/2007 establishes that co mpulsory insurance, as well as and non-
compulsory insurance contracted by natural persons residing in Brazil or legal entities of any form domiciled in Brazil to protect against risks within  the country, shall be contracted exclusively in 
Brazil. Contracting insurance abroad is restricted to the following cases: coverage of risks for 
which there is no insurance in Brazil; coverage of risks abroad in which the insured is a natural person resident in Brazil, for which the term of the insurance contract is confined exclusively to the period in which the insured is abroad; insurance envisaged in international agreements; WT/TPR/M/283/Add.1 
 
- 138 - 
 
and insurance contracted abroad in accordance with existing legislation prior to the enactment of 
Complementary Law 126/2007.   Moreover, Law 9.432/1997 allows the contracting of maritime insurance/reinsurance abroad for 
hull, machinery and civil liability under the provisions of the Brazilian Special Registry of ships, as 
long as that the national market does not provide such coverage or prices similar to those of international markets.  
 
Page 151, paragraph 4.149  In order to engage in banking activities , foreign banks must be established as a 
subsidiary or branch, and are in principle su bject to the same prudential requirements 
as domestic banks. These are set by th e CMN and include capital requirements, 
prudential regulations, and specific qua lifications for the administrators of the 
institution. 
 6. Brazil is requested to provide the details of specific qualifications applicable for 
the administrators of the banking institutions? 
 In order to ensure financial stability (the crisis of 2007-2013 highlighted the socioeconomic consequences arising from inadequately regulated financial systems), the Banco Central do Brasil 
(Central Bank of Brazil) is rigorous in the revi ew process and authorization for FIs. There are no 
distinctions between domestic and foreign – this process only aims to ensure financial stability. Once the financial institution being established in Brazil, it will be treated as domestic institution. 
The rules and procedures for installation are public  and available for consultation on the website of 
the institution – Sisorf (National Financial System Organization Manual), elaborated by the Banco Central do Brasil (Central Bank of Brazil) (http://www.bcb.gov.br/?NFSMA NUAL). The applicant 
receives official response, explaining the reasons in case of rejections – including access to the full 
content of the internal process of BCB – be ing open-term to appeal. The requirement of 
"Presidential Decree" to foreign FIs is prescribed by the Federal Constitution in the Article 52 of the Temporary Constitutional Provisions Act – ADCT (based infra is § 2 of art. 10 and art. 18 of 
Law 4595). Restrictions have been eased in the Presidential Decree of 1996 (Decree unnumbered 
of December 9, 1996 – http://www.planalto.gov .br/ccivil_03/DNN/Anterior%20a%202000/1996/ 
Dnn4857.htm), when it began to consider the nation al interest to purchase shares of non-voting 
FIs by persons or entities resident, domiciled or headquartered abroad. From the technical analysis 
of the Banco Central do Brasil there are no restrict ions as to the origin of capital and the practice 
has been for the Decree to follow the technical recommendation of the BCB. Moreover, the Central 
Bank's Resolution 4.122/2012 publishes the requirements and procedures for constitution, 
authorization for operation, cancellation of authorization, control changes, reorganizations and conditions for holding positions in statutory bodies or contract that specifies the institutions.  
Page 152, paragraph 4.156 
 Brazil currently has information-sharing ag reements with the financial supervisory 
authorities of 15 countries: Argentina, the Bahamas, the Cayman Islands, China, 
Germany, Indonesia, Italy, Mexico, Panama, Paraguay, Portugal, South Africa, Spain, 
Uruguay, the, and the United States. Informal  arrangements are in place with the United 
Ki ngdo m,  w i t h w ho m a  f o rma l  a gr eeme nt  i s  been negotiated, as well as with Austria, 
Korea, and Switzerland.  7. Brazil is requested to provide inform ation on how the informal arrangements 
with the UK work? 
 There is no informal arrangement, but a very clos e cooperation. Brazil would like to clarify that 
supervisory agencies of Brazil and the UK are working very close to each other, which is 
tantamount to an arrangement. A formal agreemen t is being negotiated between Brazil and the UK 
as well as with Austria, Korea, and Switzerland. 
 
Page 158, paragraph 4.189  Prices for local, and national and internationa l long-distance calls are subject to specific 
regulations. WT/TPR/M/283/Add.1 
 
- 139 - 
 
8. Brazil is requested to pr ovide the details of specific  regulations that apply to 
prices for local, and national and international long-distance calls?  Fixed voice services in Brazil operate under two models: public regime and/or private regime. In 
the public regime prices are set by the regula tor, according to the General Telecommunications 
Law (Law No. 9.742/97), the tariffs regulation for fixed services (Anatel's Resolution No. 424/2005) and the Concession Contracts sign ed with the fixed operators (last revision 
in 2010). In the private regime prices are freely established by the companies who operate under 
an authorization licence.  Mobile and Fixed Broadband services all operate under the private regime and have prices freely 
established, see Resolutions 477/2007 (Mobile) and 614/2013 (Fixed Broadband). 
 In the private regime operators are requested to of fer service plans that contain all details of the 
service that is being offered. 
 Page 160, paragraph 4.198 
 
In June 2012, ANATEL auctioned radio spectrum in the 450 Mhz and 2.5 Ghz bands for commercial mobile services. The notice re quired that winning bidders commit to 
purchase goods, products, equipment, an d systems for telecommunications and data 
networks with national technology, and en sure that, after five years, 50% of the 
equipment, telecommunications systems, and networks be produced locally (regardless 
of the origin of capital), and 20% be pr oduced with technology developed in the 
country. These conditions may be waived by ANATEL under certain circumstances. 
 9. Brazil is requested to clarify the circ umstances under which these conditions are 
waived? 
 The auction established obligations for purchasi ng goods, products, equipment's, and systems 
for telecommunications and data networks with the following criteria: 
 
1. Between 2012 and 2014, operators must comply with 60% of investment: 50% 
that follow the Basic Production Process (Processo Produtivo Básico – PPB) and 
10% that have national technology; 
2. Between 2015 and 2016, operators must comply with 60% of investment: 50% 
that follow the Basic Production Process (Processo Produtivo Básico – PPB) and 
15% that have national technology; 
3. Between 2015 and 2016, operators must comply with 60% of investment: 50% 
that follow the Basic Production Process (Processo Produtivo Básico – PPB) and 20% that have national technology. 
 
The auction allowed for operators not to comply with these percentages only if they prove to Anatel that there are not enough goods, products, equipment's, and systems for 
telecommunications and data networks available in the country. 
 Page 161, paragraph 4.204 
 
The Brazilian Government has committed to addressing these bottlenecks through public and private investments in infrastructure under the Growth Acceleration Programme 
(PAC), and has adopted a concessions prog ramme to allow private participation in 
expanding infrastructure and operating airports. 
 10. Brazil is requested to describe salient  features of the Growth Acceleration 
Programme and whether the benefits are also  available to foreign service providers? 
 According to Law 9.394/1996, foreign degrees must be  revalidated by a Brazilian public university 
that offers an equivalent degree recognized by the Brazilian government. The following 
requirements are necessary: I) consular legalization of documents related to the degree; II) application for revalidation in a Brazilian public university; III) copies of the degree and related documents translated into Portuguese; and IV) payment of administrative fees. In case of doubt as 
to the equivalence of the degree, the evaluation  committee may require additional exams, which WT/TPR/M/283/Add.1 
 
- 140 - 
 
shall be performed in Portuguese. The applicant may also be required to perform additional 
studies, if minimum conditions are not met.   Since the revalidation process is decentralized, it  is not possible to provide an average time-frame 
for its conclusion.   
 Page 169, paragraph 4.249 
 
In practice, procedures for revalidation of  foreign diplomas are complex and time 
consuming.  
11. Could Brazil provide information about the steps involved in revalidation of 
foreign diplomas and how much time does it take generally in getting such revalidation? 
 
According to Law 9.394/1996, foreign degrees must be  revalidated by a Brazilian public university 
that offers an equivalent degree reco gnized by the Brazilian government.  
 
The following requirements are necessary: I) consular legalization of documents related to the 
degree; ii) application for revalidation in a Brazilian public university; III) copies of the degree and related documents translated into Portuguese; and IV) payment of administrative fees. In case of 
doubt as to the equivalence of the degree, th e evaluation committee may require additional 
exams, which shall be performed in Portuguese. The applicant may also be required to perform 
additional studies, if minimum conditions are not met. Since the revalidation process is decentralized, it is not possible to provide an average time-frame for its conclusion.   WT/TPR/M/283/Add.1 
 
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INDONESIA 
WT/TPR/S/283 
 Summary 
Page 8, paragraph 2 
 "Further action is required to address long -standing structural shortcomings affecting 
the Brazilian economy's competitiveness, such as inadequate infras tructure, insufficient 
access to credit, and high taxes. The Governme nt has taken measures to deal with these 
problems but in its quest to support sectors affected by a loss of competitiveness it has 
also adopted some measures that may have a re strictive impact on trade. Given the size 
and importance of Brazil's economy, it is impo rtant for it to continue to open its market 
to trade and investment flows and for its policies be conducive to growth." 
 
1. Could Brazil please clarify what the po licy measures have been taken to support 
the loss of economics competitiveness?  
In recent years, Brazil has undertaking a series of policy measures to support sectors affected by 
loss of competitiveness in the context of global economic and financial crisis, some of those measures are encompassed in the Plano Brasil Maio r. Detailed information regarding the industrial 
policy of  Plano Brasil Maior can be found at:  _www.bras ilmaior.mdic.gov.br 
 
Trade and investment policy framework Page 9, paragraph 11 
 
"Foreign investors in Brazil re ceive the same legal treatment as local investors in most 
economic sectors, following Constitutional amendments passed in 1995, which prohibit 
all forms of discrimination not explicitly foreseen in the law. However, foreign 
investment is restricted in health, ma ss media, and telecommunications, aerospace 
industry, rural property, maritime and air transport. The Federal Government seeks to promote private investment, particularly  in transport infrastructure, energy, 
aeronautics, and other technology-intensive sectors, in order to overcome production 
bottlenecks, spur competitiveness, and uphold economic growth. The investment incentives offered to invest ors generally consist of tax exemptions and low-cost 
financing; normally, they do not distinguis h between domestic and foreign investors." 
 2. What is the reason of restriction for   foreign investment in such sector? Does 
Brazil plan to open up this area fo r foreign investment in near future? 
 Foreign investment is restricted in some activities in Brazil, such as health services (except health 
insurance). Nuclear energy and postal services activities are under Federal Government monopoly. 
Courier services may be provided by enterprises legally constituted in Brazil. Foreign investors 
may not manage newspapers, magazines, and other publications, or television and radio networks, 
or hold more than 30% of their capital, except for naturalized citizens settled in Brazil for more 
than ten years. Under the provisions of Law No. 12,485, cable TV services are completely open to 
foreign investment. The Brazilian Congress is discu ssing the new Aeronautics Code, which includes 
a proposal for increasing the participation of foreign capital in the air transport sector. 
 
3. Could Brazil give the negative list of in vestment for foreign investment in Brazil? 
In addition, could Brazil list the web links  where this information could be found? 
 
The following prohibitions and limitations apply to foreign capital in the Brazilian economy:  
 
(A) Prohibitions: Foreign capital investment is prohibited in the following activities: - 
activities involving nuclear energy; - health services; - post office and telegraph 
services; and – certain sectors in the aerospace industry, such as Launching and orbital positioning of satellites and spacecraft.  
 
(B) Limitations - Following the 1995 constitutional reform, Brazilian companies (even if 
foreign owned) may now acquire, operate and lease rural lands. However, acquisition WT/TPR/M/283/Add.1 
 
- 142 - 
 
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 
limitations apply to the acquisition of prop erties by foreigners in border areas. 
Purchase of such lands requires authorization by the General Secretariat of the 
National Security Council. - There are also some restrictions on the participation of foreign capital in financial institutions; however, these restrictions may be waived in 
the national interest. This matter is to be the subject supplementary legislation that is 
likely to apply to insurance companies. - A concession is required for operation of public air transport services. By law, such concessions, are granted only to Brazilian 
corporate entities (meaning those incorporated and managed in Brazil), in which at 
least 80% of the voting capital is owned by Brazilians (this limitation which also 
applies in increases capital stock). Moreover, such companies must be under the management of Brazilians. Finally, foreign capital participation may not exceed the 
authorized limit of 20% of voting capital,  and requires approval by aeronautical 
authorities. - Some restrictions apply to foreign ownership and management of newspapers, magazines and other periodicals, and of radio and television networks. - 
Brazilian companies, even if under foreign control, may request and obtain permission 
to operate in the mining sector. - Law 9.074/95 states that the Concession Law (Law 8.987/95) applies to participation of private companies in the generation and transmission of electric power, and to th e operation of customs posts and terminals, 
highways, and dams. There are no restrictions on foreign capital investments in such 
companies.  
 
1  Economic Environment 
 1.6  Structural Issues and Policy Responses 
 
Page 24, paragraph 1.40  "In a recent survey conducted by the World Economic Forum, tax regulations and rates 
are cited among the three most problematic fa ctors for doing business in Brazil. Not only 
are tax rates relatively high compared with  other Latin American countries, but Brazil's 
tax system is also especially burdensome given its complexity and fragmentation. 
Brazilian companies disburse on average 67% of  their profits on taxes and charges, and 
spend some 2,600 hours calculating and paying  taxes (the average in Latin America is 
392 hours). Heavy taxation is also reflected in  Brazil's energy costs for industry, which 
are among the highest in the world." 
 4. Could Brazil deliberate more about th e recent high tax issue and complex tax 
regulation? 
 
The Brazilian Government is committed to continuously promote a better business climate for domestic and international investors by seeking to rationalize and to simplify tax obligations and 
reducing administrative and operational costs for taxpayers. It is worth mentioning that there are 
on-going plans with the intention of simplify ing the most elaborate taxes – PIS and COFINS 
(Federal taxes) and ICMS (State taxes). 
 
5. Does the policy regarding the reduction on tax burden apply effectively for this 
past years? If so, could Brazil give more da ta about the amount of tax reduction applied 
and the programs or policy that  reduce the barriers on tax? 
 
Aggregate data is not available at present.  
Page 24, paragraph 1.41 
 "Brazil's inadequate infrastructure has been identified as the second most problematic 
factor for businesses. In the WEF's Global Competitiveness Report, the country's overall 
infrastructure is ranked 107th out of 144 in terms of quality. Port and air transport 
infrastructure is particular ly deficient, with numerous terminals operating beyond 
capacity (Chapter 4.5.4 and 4.5.5). Invest ments in infrastructure remain limited, 
reflecting low public savings as well as rest rictions on private sector participation." WT/TPR/M/283/Add.1 
 
- 143 - 
 
6. The long term inadequate infrastructure issue also be the major concern for our 
business actors, does the government of Braz il have such long term plan or adequate 
provisions that will certainly reduce such barr ier, because all the impact of it will erode 
financially for our business actors? 
 
The Secretariat report is focused on trade polic y aspects and provides a very general overview, 
drawing upon the analysis of other sources about the economic environment. Thus, Brazil does not 
share completely the evaluation on the report that lists and qualifies some structural problems 
supposedly affecting the Brazilian economy's competitiveness. Despite that, several important actions have been taken to improve infrastructure and tax system.   
For example, Brazil is improving the regulatory ru les for various sectors of infrastructure, with the 
goal of enabling greater private investment. An  example is the recent approval of the new 
regulatory rules for the port sector (Law 12.815/2013). Also great effort has been made to 
increase private funding for investment in infrastructure, mainly through infrastructure bonds 
(Law 12.431/2011). The Government is also changi ng the taxation charged on the payroll, which 
is gradually starting to focus on revenue. This measure, applicable to some sectors of the 
economy, represents a reduction of the effective tax burden and labor costs. Several others tax 
exemptions are also underway for different economic sectors.  Page 24, paragraph 1.42 
 
"Brazilian labour laws are perceived as overly  restrictive by business, particularly in 
regard to wage determination and hiring and firing practices. Exce ssive payroll taxation 
is also considered as a factor affecting the competitiveness of labour-intensive 
industries. Moreover, there is a lack of skil led workers in some sectors, reflecting gaps 
in the country's educational system." 
 
7. The Labor tax issue should be implemented along with the development program for increasing the number skilled workers in some sectors. Is that any recent program 
that other government could review such de velopment program? if yes, how do other 
government could review the said programs? 
 The Brazilian Ministry of Labour implements a number of programs aimed at increasing the 
number of skilled workers in some sectors. Such programas are currently under development and 
implementation. Further information may be obtained at http://portal.mte.gov.br/portal-mte/  
2  Trade Policy Regime: Framework And Objectives 
2.4  Foreign Investment Regime  Page 35, paragraph 2.19 
 
"Investment in all forms must be registered with the Central Bank trough the Electronics 
Statement of Registration—Forei gn Direct Investment Module (RDE-IED), on the Central 
Bank's Information System (SISBACEN). Fore ign capital must be registered within 
30 days of the date it enters Brazil or afte r customs clearance in the case of goods. 
Remittances abroad, reinvestment of prof its, dividends, and other resources, and 
repatriation of invested capital must also be  registered with the Central Bank. Foreign 
capital does not require Central Bank auth orization provided it is registered. The 
invested sum must be registered in the cu rrency in which the investment was made." 
 
8. Why the Remittances abroad, reinvestme nt of profits, dividends, and other 
resources, and repatriation of Invested Capital must also be registered with central bank 
of Brazil? 
 
The requirement is established by Law 4,131 (1962).  
9. If it is still restricted acts for busi ness area, how much amount limitation of field 
that mentions and what the rules base on that? Please ex plain furthermore? 
 Investment in all forms must be registered with the Central Bank through the Electronic Statement 
of Registration - Foreign Direct Investment Module (RDE-IED), on the Central Bank's Information WT/TPR/M/283/Add.1 
 
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System (SISBACEN). Foreign capital must be registered within 30 days of the date it enters Brazil 
or after customs clearance in the case of goods.  Remittances abroad, reinvestment of profits, 
dividends, and other resources, and repatriation of invested capital must also be registered with the Central Bank. Foreign capital does not require Central Bank authorization provided it is 
registered. The invested sum must be registered in the currency in which the investment was 
made.   
There are no restrictions on remittance of dividends or profits abroad, other than their adequate 
registration in the RDE-IED module. Remittances paid to foreign shareholders or partners are not taxed. The same conditions apply for reinvestment. The capitalization of profits, dividends, interest on equity capital and profit reserves in the receiving company in which they were produced are 
registered under the reinvestment item of the DFI module of the RDE. The registration of 
reinvestment is made in the currency of the country to which income could have been remitted, or in local currency. 
 
Page 35, paragraph 2.20  
"Repatriation of capital is also exempt from income tax, unless it exceeds the original investment 
(capital gains), in which case a 15% income tax is withheld."  10. What is the benefit and facilitation for th e foreign investor in investment in Brazil 
if like that? (Please elaborate if any rules wh enever the investor must to repatriate their 
capital?)   
Repatriation of foreign capital registered with the Central Bank of Brazil to its country of origin 
requires no prior authorization. Article 690, inset II of the 1999 Income Tax Regulations, states that foreign currency registered with the Central Bank of Brazil as non-resident investments may 
be repatriated and is not subject to income tax withheld at source. However, sums in foreign 
currency, which proportionally exceed the original investment (capital gains), are subject to withholding of income tax at the rate of 15%. In the specific case of repatriation of capital, it should be noted that the Central Bank of Brazil generally examines the net worth of the company 
involved, as shown on its balance sheet. If the net worth is negative, the Central Bank of Brazil 
may deem that a dilution of the investment has occurred, and may thus deny authorization for repatriation of part of the investment in proportion to said negative result. 
 
FDI flows and stocks have significantly increased over the past 15 years in Brazil, making the country the largest host for foreign investment in Latin America and second only to China among 
developing countries. The main enabling factors behind this encouraging trend include Brazil's 
welcoming attitude toward FDI.  Foreign investors may enter the Brazilian market directly through a branch or a subsidiary or 
through third parties by means of distribution and sales representation activities. 
 Laws regulating the formation of legal entities in Brazil are applicable to foreign and Brazilian 
entities or individuals in substantially the same manner. Nonresident individuals or legal entities 
may adopt any type of legal entity recognized by Brazilian legislation, such as, but not limited to, 
Limitadas (Limited Liability Comp anies) or SAs (Corporations). 
 
The general policy is to admit foreign capital and treat it in the same way as local capital, although certain restrictions do apply to foreign investment in certain sectors (subject to national security concerns). All inward investment must be registered at the Central Bank to ensure ultimate 
repatriation rights. There are no special exchange rates for specific transactions. 
 The basic legal concepts regulating foreign capital in Brazil are defined in Laws 4131 of 1962 
and 4390 of 1964, which were regulated by Decree  55762 of 1965. The legal concept of foreign 
capital includes tangible and intangible assets.  
An important note is that the constitutional principle that guarantees equal treatment to all affords 
foreign capital invested in Brazil the same legal treatment as that given to local capital on equal conditions. To qualify for the remittance of profits and to ensure ultimate repatriation rights, foreign capital entering Brazil must be registered at the Central Bank within 30 days. Foreign 
capital may take the form of cash, rights and assets sent to Brazil at fair market value, reinvested WT/TPR/M/283/Add.1 
 
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earnings, conversion of foreign-currency loans or current-account balances, liabilities and others. 
Reinvested earnings in this context are defined as profits earned in Brazil on registered foreign capital that have been formally allocated to increase capital. Capital increases from this source are registered in the currency of the country to which the profits could have been remitted. 
 
No restrictions are applied to the distribution and remittance of profits abroad. Dividends or profits distributed to shareholders or partners of comp anies headquartered in Brazil, even when remitted 
abroad, are not taxed, except those derived from profits booked before January 1
st 1996. Profit 
remittances must be registered as such through the RDE-IED Module at the Central Bank of Brazil, considering the stake held by investor in the total shares or stock as a proportion of paid-up corporate capital in the company. 
 
3  Trade Policies And Practices By Measure 3.1  Introduction 
 
Page 44, paragraph 3.1  
"Brazil's 2012 applied MFN customs tariff is entirely ad valorem , with rates ranging from 
zero to 55%. The simple average MFN tariff applied in 2012 was 11.7%, up from 11.5% in 2008. The increase is due to both the change in classifica tion and temporary 
derogations from the MERCOSUR Common External Tariff. Some 8% of tariff lines are 
duty free. The average applied tariff for the manufacturing sector is 12%. Brazil bound 
its entire tariff during the Uruguay Round. Tariffs on agricultural products (WTO 
definition) are bound at rates between 0% and 55%, while bound rates for non-
agricultural products range from 0% to 35%. 
 11. Given the large disparities between bound  and applied rates, Indonesia exporters 
face siginificant uncertainty in the Brazilia n market because the government routinely 
changes tariffs to protect fledging domestic industries from import competition or to 
manage prices and supply. Indonesia calls for the Brazil government to decrease the bound rates and applied rates for agri culture and non-agriculture product. 
 
According to Decisions CMC No. 58/10 and 49/12 of MERCOSUR, Brazil can maintain a list of exceptions to Common External Tariff (CET) of up to 100 tariff lines. 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 No. 08/08) of up to 45 MERCOSUR tariff lines; iii) increase tariffs, within WTO bound levels, of up to 100 tariff lines, 
as established in Decision CMC No. 39/11.  Brazil also maintains a national regime of imports of 
Capital Goods and of Telecommunications and Computer Goods, as authorized by Decision CMC No. 65/12. All exceptions to CET applied by Br azil can be found in the following websites: 
 
Ministry of Development, Industry and Foreign Trade:  
http://www.desenvolvimento.gov.br//sitio/i nterna/interna.php?area=5&menu=3361 
 
CAMEX: 
http://www.camex.gov.br/leg islacao/interna/id/986 
 
Page 44, paragraph 3.1 
 "Besides customs tariffs, imports are subject to a number of internal taxes, including the 
Tax on Industrial Products (IPI); Tax on th e Circulation of Goods and Services (ICMS); 
contributions to the social integration prog ramme (PIS) and to finance social security 
(COFINS); and Tax on Services (ISS). The app lication of these taxes may vary depending 
on the product type, the competent sub-federa l authority, and the importer's tax regime 
status, thus rendering Braz il's tax system complex." 
 12. The complexities of domestic tax system may effectively double the actual cost of 
imported products in Brazil. Indonesia seeks explanation of the rationale background on 
this complex tax system?  Kindly refer to the answer to question 4. 
 WT/TPR/M/283/Add.1 
 
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Page 44, paragraph 3.6 
 "Brazil maintains a number of programmes de signed to promote the competitiveness of 
export-oriented companies, in particular small-scale enterprises, and to increase 
exports. The authorities consider that en suring tax neutrality for exports is a key 
element in this regard, and that this objective is served through the exemption of indirect taxes on exports, and the implemen tation of schemes such as the drawback 
system, export-processing zones, and other export-related duty and tax concessions. 
Since the last Review of Brazil, several ex port support programmes have been modified 
or expanded, and some have been introduced."  
13. Indonesia seeks a detailed information an d explaination regarding several export 
support programmes that have been modi fied or expanded and some have been 
introduced since the last review of Brazil 
 
Regarding changes in the Brazilian EPZ legal framework, Law No. 12,507 of 11 October 2011 
extended from 12 to 24 months the time-limit for beginning the construction of an EPZ and Law 
No. 12,767 of 27 December 2012 enables The National Council of Export Processing Zones to 
extend this deadline.  3  Trade Policies And Practices By Measure  
3.2  Measures Directly Affecting Imports 
3.2.1  Procedures Page 48, paragraph 3.23 
 
"The 2013 World Bank Doing Business survey reports that the overall time to import 
merchandise into Brazil (17 days) has not ch anged over the past three years, after 
having decreased from 19 days in 2009 to 16 days in 2010. However, the corresponding 
cost per container was estimated to have  almost doubled over 2009-13, reaching 
US$2,275.21 According to the authorities, th e average time for customs clearance was 
41 hours in 2011 and 53.5 hours in 2012; the increase is partly attributable to Brazil's 
congested sea ports, and strikes by public sector workers. In 2012, 87.8% of goods 
cleared through customs went through the green channel, 7.1% through the yellow channel, and 5.1% through the red channel; less than 0.1% of the goods went through 
the grey channel." 
 14. Have the average time  requirements to import caused any delays or hindrances in 
import? If yes, will the Government of Braz il reduce the cost of demurrage and how will 
it work?  Brazil is working on the modernization of its Customs system. Improvements to this are an 
ongoing exercise. Relating to reducing customs clearance time, the following initiatives can be 
highlighted:  
- In August 2012, a National Center for Customs Risk Management (CERAD) was set up 
to improve the risk management and targeting of transactions.  
- The "certified enterprise" scheme (Blue Line), under which companies benefit from 
streamlined customs procedures, is currently under revision with a view to encourage 
more companies to join it. 
- A new computerized customs and foreign trade system is under construction. The aim 
is to create a more efficient single foreign trade window, through which many 
documents, formalities and data items will be simplified. 
- By the end of 2013, non-intrusive inspection equipments, for containerized cargo 
inspection, will be in place at the major points of entry into Brazil. 
- Since May 2013, 24/7 working hours for customs clearance has also been adopted at 
8 major seaports. 
- Furthermore, Brazilian customs service has already started process-mapping, 
reviewing and re-engineering its customs operations in order to improve import and 
export procedures in near future. 
 15. Why is the average time for customs clea rance of the products increase in 2012?  
 WT/TPR/M/283/Add.1 
 
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Although all the efforts to streamline the import  and export procedures, the average time for 
customs clearance was negatively impacted by infrastructure problems and other difficulties.  3  Trade Policies And Practices By Measure 
3.2  Measures Directly Affecting Imports 
3.2.6  Import prohibitions, restrictions, and licensing 
 
Page 58, paragraph 3.54 
 "Brazil's most recent notification on impo rt licensing procedures dates from 2011. 
During the review period Brazil has replied to questions by Canada, China, Mexico, 
Thailand, and the United States, regarding its non-automatic import licensing 
procedures; questions on the same topic ha ve also been submitted by Switzerland." 
 
16. Could Brazil please provide advice ab out its intention to submit an updated 
notification on its import licensing  covering the years 2011 onwards? 
 
Brazil's 2012 notification will be submitted to the WTO soon.  
 Page 58, paragraph 3.55  
"Brazil maintains a system of automatic and non-automatic licences for imports of 
various products, regardless of their origin. Requests for both types of licences, made 
either directly by the importer or by an  authorized representative, are processed 
through SISCOMEX to ensure a centralized flow  of computerized information; all licences 
are non-transferrable and valid for 90 days . Non-automatic import licences are issued 
and registered directly in SISCOMEX by 16 agencies; the statutory timeframe for 
processing requests is 60 calendar days. Th e authorities noted that, although there are 
no overlaps in the licensing entities' compet ences, imports of certain goods may require 
licences from more than one entity. Refusals to grant a licence may be appealed before 
the relevant licensing agency. Some agencies may levy a fee for the import licence; 
according to the authorities, the fees re flect the cost of services rendered." 
 17. "All licences are non-transferrable and valid for 90 days. Non-automatic import 
licences are issued and registered directly in SISCOMEX by 16 agencies; the statutory 
timeframe for processing requests is 60 calendar days."  
Indonesia has a view  that 90 days validation of all licenses and 60 calendar days 
timeframe for processing the request of non-automatic import licences may made burdensome for trade flow to Brazil. Coul d Brazil please provide advice about its 
rationale background of this timeframe? 
 
The 60 days timeframe for issuing an import license is the legal maximum timeframe, as provided by the Agreement on Import Licensing Procedures. The actual time necessary for 
issuing a license depends on the specific circumstances of the case. However, licenses are 
usually issued in a much shorter time than the legal maximum permitted.  90 days is the period when a license should be due as valid for the import. It is considered a safe timeframe 
to preserve importer rights and assure the compliance with license requirements without 
being trade burdensome. In case it is necessary to extend their validity under exceptional circumstances, the validity may be extended to more 90 days by the importers request.  
3  Trade Policies And Practices By Measure 
3.2  Measures Directly Affecting Imports 3.2.7  Contingency measures 
3.2.7.3  Safeguard measures 
Page 62, paragraph 3.71  
"Safeguard measures are not applied amon g MERCOSUR members, but may apply to 
MERCOSUR's associate members, i.e. Chile and Plurinational State of Bolivia. In the 
respective bilateral agreements with these two countries, there are specific regulations 
on the application of preferential safegu ard measures, which consist of temporary 
suspension or reduction of tariff preferences." WT/TPR/M/283/Add.1 
 
- 148 - 
 
18. Could Brazil explain how it will ensure that this policy will be consistent with 
paragraph 1 of Article 9 Agreement on Safeguards?  The use of preferential safeguards must be di stinguished from the use of general safeguards. 
While general safeguards shall be applied pursuant to the conditions established in WTO's 
Agreement on Safeguards, preferential safeguards sh all only be applied in the specific situations 
set out in the bilateral agreements which provide for the use of such measures. Therefore, when 
general safeguards are in order, paragraph 1 of Ar ticle 9 of the Agreement on Safeguards shall be 
applied. However, where the characteristics of the situations allow for the imposition of preferential safeguards, the provisions in the re spective bilateral agreement shall be observed. 
 
3  Trade Policies And Practices By Measure 
3.2  Measures Directly Affecting Imports 3.2.8  Technical regulations, conf ormity assessment, and standards 
Page 63 paragraph 3.76 
 "Brazil does not grant equivalence to tech nical regulations adopted by any trading 
partner, but accepts equivalence in test resu lts. Brazil did not notify to the WTO of any 
new mutual recognition agreements (MRAs)  on conformity assessment during the 
review period; its five notifications dating back to 2003 were cove red in the Secretariat 
Report for Brazil's previous Review ..." 
 
19. Could Brazil please provide advice ab out its intention to submit an updated 
notification on its new mutual recognition agreement (MRAs) on conformity assessment 
as an obligation under Article 10.7 Agreem ent on Technical Barrier to Trade?  
 Brazil has notified to the WTO all agreements on mutual recognition under the TBT Agreement. 
Any new agreement reached will be notified. 
 3  Trade Policies And Practices By Measure 3.3  Measures Directly Affecting Exports 
3.3.4 Export support and related tax measures 
3.3.4.1 Export subsidies Page 71 paragraph 3.114 
 
"In March 2009, Brazil notified the WTO Co mmittee on Agriculture that it had not 
granted export subsidies to agricultural prod ucts in calendar years 2002 to 2007.  In a 
further notification, Brazil submitted that it had not granted agricultural export 
subsidies during the period 2008-10."  20. Could Brazil please provide advice ab out its intention to submit an updated 
notification on its agricultural export su bsidies covering the years 2011 onwards?  
 Brazil had not granted export subsidies to agricultural products in the calendar years 2011 
and 2012. The corresponding notification will be submitted soon. WT/TPR/M/283/Add.1 
 
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JAPAN 
WT/TPR/S/283 
 1  Economic Environment 
1.6  Structural Issues and Policy Responses 
Page 25, paragraph 1.46  
1. The Brazilian Government has been taking  a number of trade re strictive measures 
during the review period. This has included  temporary tariff increases, including of 
certain pharmaceuticals.  
- Is the temporary tariff also applied to the imports from member countries of 
ALIDA and MERCOSUR? If not, what is the tariff rate in force to the import of pharmaceuticals from member co untries of ALIDA and MERCOSUR, 
respectively? 
 As determined by Decisions CMC N. 58/10 (Lists of National Exceptions to the CET) and 39/11 
(Specific Measures Regarding Tariffs), temporary tariff increases do not apply to the members of 
MERCOSUR. Notwithstanding, they do apply to the members of ALADI. It is important to remark 
that Brazil, both bilaterally and through MERC OSUR, has Preference Trade Agreements signed 
under the ALADI that may affect the applied tari ffs temporarily increased. Applied tariffs will 
depend on a schedule of tariff reduct ion established for each Agreement.  
 
- Could Brazil clarify which t type of  pharmaceuticals are subject to the 
increased tariff rates? 
- How long will the temporary tariff be in force? - The Brazilian Government imposes the high  rate tariff on pharmaceuticals. It 
seems to be inconsistent with the Br azilian Government's policy to increase 
the affordability of pharmaceuticals. Could Brazil kindly explain the consistency of the policy? 
 
In the case of pharmaceuticals, only the code  NCM 2937.29.50 was object of temporary increase, 
of 14% to 20%, under Decision CMC No. 39/11, effective until October 1st, 2013. It is worth mentioning that, while modifying tariffs in the health sector, the Brazilian government seeks to 
reconcile the procurement of drugs and their imported inputs to the development of supply chains 
in Brazil.  
3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.2  Measures Directly Affecting Imports 3.2.1  Procedures Pages 45-46, paragraph 3.13 
 
2. The Secretariat notes that "All servic es and intangible transactions between 
Brazilian and foreign residents must be register ed in the Integrated System of Trade in 
Foreign Services, Intangible Assets and Ot her Operations (SISCOSERV), which became 
operational on 1 August 2012."  
Please explain in more detail about SISCOSER V, for example, operational difficulties or 
positive outcomes and so on.  SISCOSERV - The Integrated System of Foreign Trade in Services and Intangibles - is managed by 
the Secretariat of Commerce and Services (of the Ministry of Development, Industry and Foreign 
Trade) and the Federal Revenue of Brazil (Ministr y of Finance), and is structured in accordance 
with the GATS/WTO concepts and definitions. 
 
The System is available online, where operations are registered, and is accessed by Digital Certificate. Transactions between Brazilian and foreign natural persons or enterprises are to be 
registered when the corresponding service (or intangible) provision has already begun; hence, 
there is no need for previous approval of the regi stry by the government. Operations are classified WT/TPR/M/283/Add.1 
 
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according to the NBS (Brazilian Nomenclature of Services and Intangibles), and the 4 GATS modes 
of international service provision are easily identifiable.   SISCOSERV can be accessed through two separate  modules: the Sales Module, for services and 
intangibles exports by Brazilian natural persons or enterprises to foreign, and the Acquisition 
Module, for services and intangible imports. Both modules comprise services supplied under GATS modes 1, 2 and 4, and the Sales Module includes services supplied under GATS mode 3, ultimately 
targeting foreign affiliate trade in services (FATS).  
 Detailed information on the Siscoserv is available online user manuals for both Modules (in Portuguese) on the Ministry of Development, Industry and Foreign Trade's website, at: 
 
http://www.desenvolvimento.gov.br/sitio/i nterna/interna.php?area=4&menu=3407 
 
3.2.8  Technical regulations, conf ormity assessment, and standards 
 Pages 65, paragraph 3.85 
 
3. (1) Review period in the registra tion process of new drug approvals 
It is said that the review period between NDA dossier application and ANVISA approval 
is getting longer. 
 
- How long is the average review period for approvals of the new 
pharmaceuticals? 
 
The average review period is between 12 to 16 months.  
- Could Brazil kindly show the change of  the average review period over time, 
if possible? 
 The increased number of technical human resources incorporated to ANVISA since 2005 has 
contributed to reduce the average review period across the years. It is important to note, 
however, that, as all the other Health Regulatory  Authorities worldwide, some approval requests 
are based on very innovative technologies, which pose new challenges during the review process, 
as well as demand complex technical studies from the industries that take longer periods to be 
undertaken.  
(2) ICH/CTD (Common Technical Documents) 
 
It is said that the Brazilian govern ment is preparing electronic CTD. 
 
- Are there any CTD guidelines currently applied to the required dossier for 
NDA? If so, where can they be obtained? 
 
We do not automatically incorporate ICH guidelines as national technical resolutions. However, 
they are used as technical reference for the na tional legal instruments adopted/approved by 
ANVISA. All ANVISA's national legal instruments in the pharmaceutical field are available in the 
Agency's website (Resolutions RDC 136/03, RDC 55/10, RDC 48/09 e RDC 49/11 e RDC 39/05 are 
the main ones).  
- Has the electronic CTD been implemen ted? If not, when will it start? 
 
It has not been implemented yet. For the pharmace utical sector, the electronic platform is the 
"electronic registration process", which is not the proper eCTD. We still don't have a deadline for 
eCTD implementation in Brazil for the pharmaceutical field.  
 WT/TPR/M/283/Add.1 
 
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3.3  Measures Directly Affecting Exports 
3.3.4  Export support and related tax measures 3.3.4.3  Drawback Page 72, paragraph 3.120 
 
4. Please provide details of eligibility, te rms and conditions for using the integrated 
drawback regime. 
 
The procedures for granting the drawback scheme were consolidated in SECEX Ordinance No. 23 of 14 July 2011. Users of the integrated drawback regime include agri-business, industrial, and commercial enterprises engaging in foreign trade. 
 
3.3.4.5  Special Regime for the Purchase of Capital Goods for Exporting Enterprises 
(RECAP) 
Pages 73-74, paragraph 3.126 
 5. The report said that some 265 compan ies were benefitting from RECAP as of 
February 2012. Please explain what indu strial sector the companies belong to. 
 The main beneficiary economic sectors are as follows:  
Qty. Sector 
187 Manufacturing 
35 Mining and quarrying 
18 Agriculture, forestry and fishing 
15 Wholesale trade, except of motor vehicles and motorcycles 
 3.3.5  Export finance, insurance, and guarantees 
3.3.5.2  Export Financing Programme (PROEX) 
Pages 76, paragraph 3.141  6. According to the report, Brazil anno unced several measures to increase 
competitiveness of Brazilian exports. These measures include extension of the maximum 
period of equalization from 10 to 15 years and increasing the limit for credit operations 
that do not require approval from the COFIG from US$10 million to US$20 million. 
 
Please provide information on the modified  PROEX including the guidelines for its 
measures. 
 
Could Brazil also clarify the schedule of th e scheme? Has it been already implemented? 
If not, when will it take effect?  
The modified PROEX scheme is already in force. 
 3.3.5.3  Export Financing Fund (FFEX) 
Pages 76, paragraph 3.142 
 7. Please provide information on the following points: 
 
- the industrial sectors that can benefit from FFEX 
 All industrial sectors that are eligible for PROEX support, essentially manufactured goods. 
 
- the difference and relationship be tween the PROEX scheme and the FFEX 
scheme 
 
The scope of both schemes is the same. All oper ations supported by FFEX will comply with Proex 
rules. The difference refers to the funding. While Proex funding comes from the Federal budget, 
FFEX money comes from a private financial fund to which capital the Federal government will 
contribute.  WT/TPR/M/283/Add.1 
 
- 152 - 
 
- the schedule of the FFEX scheme. Has it  been already implemented? If not, 
when will it be take effect? 
 No FFEX was not implemented yet. It will be effective by the end of 2013. 
 
3.4  Measures Affecting Production and Trade 3.4.1  Competition policy and price controls 
3.4.1.2  Price controls 
Pages 84, paragraph 3.172  8. (1)  Price controls 
 
Prices for some 90% of pharmaceutical pr oducts are regulated; the Drug Market 
Regulation Chamber (CMED), an inter-minist erial body, sets maximum manufacturer and 
consumer prices which are adjusted annually. 
 In the case of Category I of patented new pharmaceuticals, prices  are set not higher 
than the lowest price of the referencing countries/Australia, Canada, Spain, USA, 
France, Greece, Italy, New Zealand.  In the case where the product of Category I is not sold marketed in these countries, how 
is the maximum price decided? Are there any other references for it? 
 According to Article 5 of Resolution No. 2 of Ma rch 5th, 2004, issued by the Board of Market 
Regulation of Medicines - CMED, the price approval of a product qualified under Category 1 
requires that the product must be in marketing in at least three of the countries mentioned in Resolution: Australia, Canada, Spain, United States , France, Greece, Italy, New Zealand, Portugal; 
and the manufacturer price practiced in the country of origin of the product. If this condition is not 
met, it will be set a provisional price and a term of commitment should be signed, in which the company agrees to submit the provisional price agreed to be reviewed every six months until the release of the product in at least three countries in the resolution. 
 
If there is commercialization of this product in any of the aforementioned countries, the CMED`s  
Technical Executive Committee may also establish a provisional price until its release in three 
countries of the Resolution. 
 
(2)  Law No. 9.656 of 3 June 1998 
 
Oral antineoplastic drugs have not been incl uded in the reimbursement list yet, although 
the law proposes the inclusion of oral antine oplastic drugs in mandatory private health 
care plans. 
 
- Could Brazil update their current posi tion (to include oral antineoplastic 
drugs) on the health care plans? If so, when will the reimbursement start? 
 
3.4.5  Intellectual property rights 3.4.5.1  General features 
Pages 106, paragraph 3.260 
 9. The Secretariat's report in 3.4.5.1 on pa ge 106 states that contracts for industrial 
property rights and technology transfer must be registered by the INPI. Japan 
understands that there are a couple of li mitations, such as a limitation on the 
remittances of royalties abroad applied to contracts between foreign companies and local manufacturers and a limitat ion on terms of technology transfer contracts.  Japan 
would like to know whether Brazil has a plan  to remove or ease such limitations. 
 There are no foreign currency controls or limitations in Brazil. The applicable legal framework is 
currently under revision in Brazil. 
 WT/TPR/M/283/Add.1 
 
- 153 - 
 
3.4.5.2  Legal and institutional framework 
3.4.5.2.2  Industrial property 3.4.5.2.2.2  Patents an d industrial designs 
Page 112, paragraph 3.282 
 
10. The Secretariat's report explains that  no compulsory licenses under Article 71 of 
the Law on Industrial Property (in cases of national emergency or public interest) have 
been granted since Efavirenz's case in 2007. Are there any case in which compulsory 
license under Article 68 has been granted?  No, the only case of a compulsory license being granted in Brazil so far is described in 
paragraph 3.282 of document WT/TPR/S/283. 
 Pages 112, paragraph 3.282 
 
11. According to Article 68.1.I of the Law on Industrial Property, failure to manufacture the patented product within Br azilian territory, unless the manufacturing is 
not economically feasible, would give ground s for the grant of compulsory license even 
if the product is imported and sold in Braz ilian territory. Are there any cases in which 
compulsory licenses have been granted on the grounds of failure to manufacture within 
the Brazilian territory? If yes, please provide a brief summary of the cases. 
 
No, the only case of a compulsory license being granted in Brazil so far is described in paragraph 3.282 of document WT/TPR/S/283. 
 
Pages 113, paragraph 3.287  
12. Article 229-C of Brazil's Law on Indust rial Property Law (No. 10.196) requires 
ANVISA to provide "prior consent" before  INPI grants any patents relating to 
pharmaceutical products or process inventions . The stated goal of this scheme is to 
"verify [whether] the object of the patent a pplication is against public health." Could 
Brazil describe how ANVISA determines whet her an affected patent application is 
"against public health"?  
The examination of pharmaceutical patent applications with the participation of ANVISA is part of a 
complex administrative act of the Executive branch, which relies on the combined expertise of ANVISA and INPI. The three criteria of patentabilit y are a good basis for evaluating the impact on 
Public Health of pharmaceutical patent applications.  
 ANVISA relies on a specialized and experienced te chnical staff to carry out its examination. The 
examination is carried out in full compliance with the Industrial Property Act and the Agreement on 
trade-related aspects of intellectual property rights  (TRIPS). In light of that, ANVISA's rules on the 
examination of patentability of pharmaceutical patent applications focus on the three patentability criteria, provided for in the TRIPS Agreement as well as in the Brazilian legislation: novelty, 
inventive step and industrial application. 
 Additionally, ANVISA also verifies if the invention contained in the patent application includes 
substance(s) the use of which is not allowed in the country and the prevention within Brazil's 
territory of the commercial exploitation is necessary to protect human, animal or plant life or health.  
Lastly, it is worth recalling that the TRIPS Agreemen t, in Article 1.1, provides that "Members shall 
be free to determine the appropriate method of implementing the provisions of this Agreement 
within their own legal system and practice". 
 
Page 113, paragraph 3.287  
13. How long on average does it take for ANCISA to issue a final decision on patent 
applications (from patent filing to grant or  final rejection) of the pharmaceutical 
products or processes which were the subjec t of ANVISA's review? How long on average 
does it take for the final decision to be taken on the patent applications in other WT/TPR/M/283/Add.1 
 
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chemical technical areas that are not subject to ANVISA's review? Is there difference 
between the two periods?  The average deadline to the first manifestation of ANVISA in the examination of patent 
applications is 180 days. This period tends to decrease from the implementation of the new 
procedures foreseen in Resolution - RDC No. 21, 2013. It's important to note that ANVISA participates only in one stage of the grant procedure, the so-called "previous consent". The other 
steps on the granting cycle are under responsibility of INPI. It is also important to remember that 
the analysis of applications in the pharmaceutical area has undergone major changes since the publication of the Law No. 9.279/1996 (Law of In dustrial Property - LPI), once the previous 
legislation restricted the patenting in this area, which has generated many questions about the 
onset of granting such requests in Braz il: mailbox, the pipeline mechanism, etc. 
 Page 113, paragraph 3.287 
 
14. Article 4 of ANVISA's regulation RDC #21 of 2013 released on April 10, 2013, provides that "ANVISA will perform its exam ination in light of public health" and its 
paragraph 1 states that "The patent applicatio n shall be considered against public health 
when: I – (omitted); or II - The patent applic ation of pharmaceutical product or process 
is of interest to the public policies of a ccess to medicines and pharmaceutical assistance 
of the Public Healthcare System and does  not meet patentability requirements and 
further criteria established by Patent Statute #9,279 of 1996." According to the 
regulation, will ANVISA continue to conduct review for patentability requirements such 
as novelty and inventive-step? Could Brazil explain ANVISA's competency to 
substantively examine patent applications? 
 ANVISA's previous consent analysis, from the publication of Resolution RDC No. 21 of 2013, 
suffered some modifications as to its object, in order to make the whole work of the Agency in the 
field of analysis of patent applications in the phar maceutical sector more efficient. According to this 
Resolution, ANVISA should analyze only the patent applications that may cause health risks to the population, either because they contain substances wi th prohibited use in Brazil, either by creating 
an unjustified restriction to the access to medicines considered important for the maintenance of 
health policies. The Agency, as a member of the National Health System (NHS), guided by the 
principles of comprehensive care and universal access, must ensure, through the examination of 
patents considered of interest to pharmaceutical policies within the NHS, that patents without 
merit (i.e. patents that do not meet legal requirement), are not granted, in order to avoid that they become obstacles to access of medicines by the population. 
 
Pages 113, paragraph 3.287  15. If so, examination regarding patentab ility requirements such as novelty and 
inventive-step is conducted dually by INPI and ANVISA.   Does the application of such 
"dual examination" only to pharmaceutical pa tent applications impose extra complicated 
and costly procedures, or entail unwarranted  delays only in the prosecutions for 
pharmaceutical patents? 
 As noted, the average period for the examination of  patent applications by Anvisa are reasonable 
and do not add any significant delay in the whole granting cycle. The procedures related to the 
ANVISA's analysis are tax free, with no addition al costs charged to the depositor. Any demand 
associated to technical information not presented within the application, as well as eventual decisions to deny previous consent, are sent to prosecutors depositors, and those have all the 
procedural guarantees respected. 
 Remember that Article 1.1, Part 1 of TRIPS Agreement allows Members States to freely determine 
the appropriate method of implementing the pr ovisions of the Agreement according to their 
respective legal system and practice.  
Pages 113, paragraph 3.287 
 16. If ANVISA issues a rejection as the resu lt of prior examination, could an applicant 
take any measures to appeal against the decisi on? If there exists such a procedure, does 
it satisfy the provision of Articles 62.4 and 62.5 of the TRIPS Agreement? WT/TPR/M/283/Add.1 
 
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The Resolution RDC No. 21 of 2013 amended certain provisions of Resolution - RDC No. 45, 2008, 
but has not revoked it. This resolution already provides all these procedural guarantees to depositors, such as the right to know the reasons for the ANVISA's denial of previous consent; the right to present counter-arguments before a final decision; and the right to appeal to the Board of 
the Agency. Remember that the Brazilian Constituti on, in its article. 5, XXXV, ensures judicial 
review of any administrative deci sion. These guarantees satisfy the requirements of Articles 62.4 
and 62.5 of TRIPS. 
 
Pages 113, paragraph 3.287  17. On December 3, 2007, the Federal District Court of Rio de Janeiro rendered a 
decision that new uses of pharmaceutical  products do not represent therapeutic 
methods, and are not included among the prohibitions of Article 10, VIII of Law 9279/96. On October 17, 2012, the Braz ilian Congress rejected Bill No. 2511/07, 
which sought to prohibit the patenting of "second medical use patents". Will ANVISA 
continue not to grant prior approval on "s econd medical use patents"? If so, could you 
clarify the grounds of rejection? 
 
The granting of any patent in Brazil must necessar ily fulfill the conditions set out in the Industrial 
Property Law, that is, that the invention is new, involves an inventive step and is capable of industrial applications. Patent applications which do not satisfy such conditions are rejected. 
Additionally, it is worth pointing out that Bill No. 2.511/2007 was appended to other Bills and 
therefore was not rejected by the Congress.  
3.4.5.2.3  Trademarks 
 Pages 113-114, paragraph 3.290 
 
18. Does Brazil have a plan to accede to the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, adopted at Madrid on June 27, 1989 ("Madrid Protocol (1989)"), as amended on October 3, 2006, and on 
November 12, 2007? 
 Brazil is currently in the process of acceding to the Madrid Protocol. 
 
Pages 114, paragraph 3.292  
19. How long is the average pendency period (the period from the filing date to the 
date of the first office action by INPI) for trademark applications and the average 
processing time (the period from the filing date to the date of the final decision in 
examination phase) in Brazil? 
 
With regard to trademarks, the current average pendency period is 24 (twenty four) months, while the average processing time is approximately 30 (thirty) months.  
 
3.4.5.4  Enforcement  
Pages 116, paragraph 3.305 
 20. According to paragraph 3.305 of the Secr etariat Report, only State Courts have 
jurisdiction over criminal acts of infringe ment of intellectual property rights. Could 
Brazil provide the average pendency period of  criminal suits and the average pendency 
period of civil suits?  
Such data is currently not available. 
 Pages 117, paragraph 3.310 
 
21. Does Brazil have a system which enables IPR holders to register their trademarks 
and other IPR information with the Customs fo r ex-officio suspension of counterfeit or 
pirated goods at the borders? If not, does Br azil have a plan to introduce such a system 
in the future? WT/TPR/M/283/Add.1 
 
- 156 - 
 
Brazilian Customs Administration has not yet set up a specific procedure to IPR holder to apply for 
protection. However, the enforcement measures adopted by Brazil are in compliance with the TRIPS Agreement. Additionally Brazilian Customs receives regularly information and demands from IPR holders to act ex-officio. Brazil does have pl ans to introduce such a system in the future.  
 
Pages 117, paragraph 3.310  
22. How does Brazil's Customs authority deal with the distribution of counterfeit or 
pirated goods in markets and free-trade zones?  Enforcement cells regularly coordinate with the en forcement agencies such as the police work to 
conduct raids with a view to reduce trademark counterfeit and copyright piracy. Many actions have 
been taken by Customs Administration to enforce Customs law provisions, including those related to counterfeit and piracy. The results of these ac tions are regularly published at Custom website 
(http://acoesdareceita.receita.fazenda.gov.br/). In  2012, more than one billion products were 
intercepted or seized throughout Brazilian territor y by Customs authority, most of them regarding 
counterfeit or pirated goods.  
 
4  Trade Policies By Sector 4.3  Manufacturing  
Pages 133-135, paragraphs 4.67-4.74 
 23. (1) As to the INOVAR-AUTO programme, do es the "strategic input" or "tooling" 
stipulated in Article 12 of the Decree No. 7819  mean domestic inputs or tooling, through 
which the Brazilian Government seems to impose local contents requirement on 
participants to the programme? Japan has concerns about recent proliferation of 
imposition by Brazil of indirect taxes on  various sectors including the automotive 
industry for the purpose of supporting do mestic manufacturing and exports. If the 
answer to the above question is yes, in lig ht of the fact that Decree No. 7819 does not 
set out seemingly local contents requiremen t, Japan would like to request the Brazilian 
Government to provide the laws and regu lations that set out the local contents 
requirement.  
There are no domestic content requirements to be eligible to INOVAR-Auto in any of the rules of 
the program.   
(2) In the case Decree No. 7819 and/or ot her laws and regulati ons require a local 
contents requirement, are there any standard s or criteria in order for the "strategic 
input" and "tooling" to be regarded as a domestic one? If so, which laws and/or 
regulations specify such standards or criter ia? If not, does the Brazilian Government 
plan to introduce such standards or criteria in the near future? 
 There are no domestic content requirements to be eligible to INOVAR-Auto in any of the rules of 
the program.  
 4.5  Services 
4.5.1  Banking, finance, and insurance 
4.5.1.1  Overview Pages 147, paragraph 4.130  
24. Japan hopes that Brazil will adopt the Fi fth Protocol on Financial Services to the 
General Agreement on Trade in Services as soon as possible. Japan would like to know 
when the domestic procedures for the accept ance of the Protocol will be completed. 
 
Brazil is undertaking every effort to complete the analysis concerning the ratification of the Fifth Protocol on Financial Services and is carrying out internal consultations regarding the matter. 
Current regulations in Brazil take into account the framework established by the Protocol. WT/TPR/M/283/Add.1 
 
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JAPAN (Follow-up questions) 
WT/TPR/S/283 
 3  Trade Policies And Practices By Measure 
3.3  Measures Directly Affecting Exports 
3.3.5  Export finance, insurance, and guarantees 3.3.5.2  Export Financing Programme (PROEX) 
 
Page 76, paragraph 3.141  1. Concerning Q6 of the advance written ques tions. Please describe  exactly how to fix 
an interest rate applied under PROEX Equalization. 
 The mechanism of PROEX Equalization takes Comm ercial Interest Reference Rates (CIRRs) as 
benchmark. So, the percentage of equalization is calculated so that the borrower has a CIRR 
equivalent cost.  
Page 76, paragraph 3.141 
 2. Concerning Q6 of the advance writte n questions. Please provide details of 
eligibility for using the modified PROEX. 
 
There were no changes in the eligibility for using PROEX Equalization during the period. WT/TPR/M/283/Add.1 
 
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MALAYSIA 
3.  Trade Policies And Practices By Measure 
3.2.9  Sanitary and phytosanitary measures  Page 67, paragraph 9 
 
3.93. The requirements laid out by MAPA for importation of products of animal origin 
into Brazil include: (i) recognition of the sa nitary inspection systems in the exporting 
country as equivalent to Brazil's; (ii) accr editation of the exporting e establishments; 
and (iii) approval of the products and thei r labels.125 The requirements for importation 
of aquatic animals and reproductive material  include: (i) recognition of the aquatic 
animal health system (natural  or reproduction environments) in the exporting country 
as equivalent to Brazil's; and (ii) when de emed necessary, import risk analysis. All 
imports of animal products and their sub-pr oducts must be inspected at the port of 
entry. In principle, physical inspections ar e performed on 1% of the lot comprising all 
packages classifiable under the same tariff line, with a minimum of two and a maximum 
of ten packages. For products in bulk, fi ve samples are collected separately for 
inspection; different rules apply for containers. Samples from the packages that were 
physically inspected may also be used for la boratory testing; testing requirements are 
product-specific and do not follow a general ru le. Testing should be carried out at MAPA 
laboratories; when necessary, laboratories o fficially accredited by MAPA may also be 
used. Testing costs are paid by the owner of the products. 
 
1. Does the Government of Brazil accept equivalent testing and inspection system 
from other exporting countries? 
 
Please refer to answer to question 2.  
2. In practice where countries fail to comply  to the requirements laid out by MAPA for 
importation of products of animal origin into Brazil, would the Government of Brazil 
inform the reasons of the failure?  
All related procedures are established in Portaria MAPA 183/98. 
 4.5.2 Communication services 
 
3. Reference is made to paragraph 4. 176, where it mentions there are five 
concessionaires, would appreciate what do es this concessionaire cover telephony 
services within the telecommunication sector.  
 Does the main legislation i.e. the Genera l Telecommunications Law (LGT) alone govern 
the concessions? 
 
Concessionaires cover only fixed lines. In the public regime, concessionaires must comply with obligations of standardization and continuity, and the National Telecommunications Agency 
(Anatel) can establish the pricing structure for each type of service, while in the private regime, 
freedom is the rule, except in the case of prohibitions, restrictions and interference from the government (article 128, I). Under the LGT, concessions do not have an exclusive nature 
(article 84) and it is possible to exploit, concomitantly, the same service in both the private and 
the public regime (article 65, III).  Does the main legislation i.e. the Genera l Telecommunications Law (LGT) alone govern 
the concessions? 
 No, concessionaires are also submitted to universal services, standardization, consumers, 
competition and continuity rules. E.g. competition in the telecommunications sector has specific 
characteristics in relation to the regime of Law 8.884/1994. Article 7 of the LGT established that the general rules governing the protection of the economic order apply to the telecommunications 
sector, when consistent with the LGT.  Law No. 8,078 of September 11, 1990 – Brazilian 
Consumer Protection Code also applies to the telecommunication consumers.  WT/TPR/M/283/Add.1 
 
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4.5.3  Air transport and airports 
 4. Reference is made to paragraph 4.203,  where it mentions in Brazil there are 
1,875 airport and airstrips that are private, from this number how many are foreign 
owned or with foreign shares. 
 According to the International Civil Aviation Organization (ICAO), "a private airport serves 
primarily small privately owned aircraft, flying clubs, etc.", unlike commercial airports that are 
used by the general public. The Brazilian government does not establish any property control or limitation on private aerodromes.  
5. Reference is made to paragraph 4.208,  where it mentions concessions for the 
provision of Brazilian-based regular air transp ort services are granted only to Brazilian 
legal persons etc. … We would like to know what is considered as regular air transport 
services and who qualifies as Brazilian legal person.  
 Brazil adopts the concept of the International Civil Aviation Organization (ICAO) for regular air 
transport services, considered the transportation engaged in scheduled air service, typically "open 
to use by the general public and operated according to a published timetable or with such a regular frequency that it constitutes an easily recognizable systematic series of flights". Foreign air carriers cannot operate air services inside Brazil (cabotage). In other words, they cannot transport 
passengers or cargo between two airports in the Brazilian territory. The limit for foreign 
investments in Brazilian air carriers today is 20%. WT/TPR/M/283/Add.1 
 
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MEXICO 
WT/TPR/S/283 Y WT/TPR/G/283 
 El Entorno Económico 
 
Página 16, párrafo 1.2.   
1. ¿Podría nombrar la fuente que respalda  la afirmación sobre "los salarios mínimos 
más elevados", igualmente especificar si son los más elevados en la historia de Brasil o 
si la comparación es a nivel mundial?  
The current Social Policy in Brazil has guaranteed an annual real increase of the minimum wage of 
the average GDP growth on top of  the inflation adjustment. The real minimum wage historical 
series can be assessed at http://www.ipeadata.g ov.br/. Furthermore, the high minimum wage 
comparison is within Brazilian history, since the 1980's, and not worldwide. 
 Página 16, párrafo 1.2. 
Sobre la mejora de los datos sobre el empleo 
 2. ¿Podría enunciar los datos en mención,  y especificar respecto a qué mejoraron? 
 
The employment figures refer to unemployment rate, which has reduced in the last decade, 
reaching in December of 2012 the lowest level since the beginning of the series.  
Página 19, párrafo 1.12. se indica que "... Los obstáculos a la importación en algunos 
sectores, en particular en el manufacturero,  han provocado pérdidas de competitividad 
tanto a nivel nacional como en el extranjero ..."  
 
3. ¿Podría Brasil indicar cuáles son los obstáculos que se imponen a las importaciones y a qué sectores específicos se aplican?  
The Secretariat report is focused on trade polic y aspects and provides a very general overview, 
drawing upon the analysis of other sources about the economic environment. Thus, Brazil does not share completely the evaluation on the report that lists and qualifies some structural problems 
supposedly affecting the Brazilian economy's competitiveness. Despite that, several important 
actions have been taken to improve infrastructure and tax system.  
Página 28, párrafo 1.46.  Se indica que Brasil en su esfuerzo por apoyar sectores 
económicos que sufren una pérdida de compet itividad, dicho país adoptó una serie de 
medidas restrictivas del comercio, entre ella s un aumento temporal de los aranceles.  
 
4. México desearía saber ¿cuáles son esas  medidas restrictivas al comercio? ¿A 
cuánto ascendió el incremento temporal de los aranceles y, a nivel de facción 
arancelaria, cuáles fueron los prod uctos afectados por dicha medida? 
 
According to Decisions CMC No. 58/10 and 49/12 of MERCOSUR, Brazil can maintain a list of exceptions to Common External Tariff (CET) of up to 100 tariff lines. 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 No. 08/08) of up to 45 MERCOSUR tariff lines; iii) increase tariffs, within WTO bound levels, of up to 100 tariff lines, 
as established in Decision CMC No. 39/11.  Brazil also maintains a national regime of imports of 
Capital Goods and of Telecommunications and Computer Goods, as authorized by Decision CMC 
No. 65/12.   
All exceptions to CET applied by Brazil can be found in the following websites: 
 
Ministry of Development, Industry and Foreign Trade:  
http://www.desenvolvimento.gov.br//sitio/interna/interna.php?area=5&menu=3361  
 WT/TPR/M/283/Add.1 
 
- 161 - 
 
CAMEX: 
http://www.camex.gov.br/leg islacao/interna/id/986 
 2  Régimen De Política Comercial: Marco Y Objetivos 
 
Página 40, párrafo 2.16. El programa "Plano Brasil Maior" menciona que  las principales 
medidas paragraph la ejecución de l programa son las siguientes: 
 
1. Estímulos a la inversión y la innovación 
 5. ¿Cuáles serían las exenciones tributar ias a ejecutarse y si estas exenciones 
también serán aplicables a los inversionistas extranjeros? 
 The tax measures comprised by the "Plano Brasil Maior" are under the general framework of 
Brazilian legal system. Taxes may be levied by th e three levels of government, according to their 
specific competence, as provided for in the Constitution. Some fundamental constitutional rules must be complied, especially the rule of equality (according to which taxpayers in equivalent 
situations must receive identical tax treatment) . Therefore, established foreign investors are 
always subject to the same taxes in order to ensure tax neutrality.  
2. Comercio exterior 
 
6. ¿Cuáles serán las exenciones o benefici os a las exportaciones? ¿Qué productos se 
estarían considerando? ¿Cuáles son las gara ntías a las exportaciones que se aplican 
actualmente y cuáles garantía s más se pretenden aplicar? 
 Detailed information on the programs including in Plano Brasil Maior including measures on exports 
may be found at www.br asilmaior.mdic.gov.br 
 
3. Defensa de la industria y del mercado interno  
7. ¿Cuál es el grado de ambición respecto  a la exoneración del pago a la nómina? y 
finalmente, si se pretende trasladar las ex oneraciones en otros impuestos o en nuevos 
impuestos. 
 
Brazilian Government's programs are aimed at boosting technological development and innovation and improving the Brazilian economy. The reduction of the tax burden on the payroll is an example 
of measure to improve labour in the economy. Each target sector is chosen after a thorough 
analysis of the costs and benefits involved. There are also on-going plans to simplify the most complex taxes – PIS and COFINS (Federal taxes) and ICMS (State taxes).  
3  Políticas Y Prácticas Comerciales, Por Medidas 
 Página 51, párrafo 3.2.  En dicho párrafo se menciona que además de los aranceles, se 
aplican a las importaciones diversos impuestos internos, como, el impuesto sobre los 
productos industriales (IPI); el Impuesto sobre la Circulación de Mercancías y la 
Prestación de Servicios (ICMS); las contribu ciones al Programa de Integración Social 
(PIS) y a la financiación de la seguridad social (COFINS); y el Impuesto sobre los 
Servicios (ISS).   8. México desearía saber ¿Cuál es la base de cálculo de cada uno de estos impuestos? 
¿Podrían proporcionarnos un ejemplo real de cálculo de dichos impuestos en una 
importación marítima y de embarque aére o? ¿Mencione cuáles de estos impuestos 
internos son acumulativos y cuáles no? ¿Existen  otros impuestos a nivel federal, estatal 
o local que se tengan que pagan al import ar un producto? ¿Cuáles son los principales 
impuestos (tributos) al consumo, a la renta y a la nómina en Brasil?  
La información está disponible en el síti o eletrónico: http://www.re ceita.fazenda.gov.br. 
 WT/TPR/M/283/Add.1 
 
- 162 - 
 
Ejemplo de aplicación: 
 
Importación de otros acumuladores eléctricos de níqu el cadmio, peso <= 2,500 Kg          8507.30.19 
     Valor en aduana (R$) 100.000,00 
 Impuesto Alícuota (%) Base imponible   
 II 18,00 VA II 18.000,00 
No cumulativo IPI 15,00 (VA + II) IPI 17.700,00 
No cumulativo PIS 1,65 (VA + ICMS + PIS + COFINS) PIS 2.359,78 
No cumulativo COFINS 7,60 (VA + ICMS + PIS + COFINS) COFINS 10.869,28 
No cumulativo ICMS 18,00 (VA + II + IPI + ICMS) ICMS 29.787,80 
 
El impuesto sobre servicios (ISS) no grava las importaciones y es un impuesto municipal.  
Página 51, párrafo 3.5. Se indica que "La le gislación brasileña autoriza la aplicación de 
un impuesto a la exportación del 30%, que pu ede ser disminuido o ser aumentado hasta 
el 150% paragraph atender a objetivos re lacionados con divisas o con la política 
comercial. En la práctica, el impuesto a la exportación tiene un tipo nulo, con la 
excepción de un pequeño número de productos.  El impuesto se calcula en función del 
valor f.o.b. o el precio de las mercancías en  el mercado internacional en el momento de 
la exportación, que no puede ser inferior al costo de adquisición o de producción de las 
mercancías, incrementado con los impuest os y otras contribuciones, más un margen 
comercial del 15% sobre la suma de  los costos y los impuestos."  
 
9. ¿Cuáles son las consideraciones de po lítica comercial que toma en cuenta el 
gobierno paragraph aumentar o dismi nuir el impuesto a la exportación? 
 
Brazil has only three products for which the export taxes apply: wet blue leather; firearms, 
weapons and devises; and tobacco. The reasons for application are different. The export tax on wet blue leather was adopted in 2001 in a context where most leather importers apply tariff escalation to the leather chain. The export tax on firearms, weapons and devises was 
adopted for national security reasons. The reason for the application of an export tax on 
tobacco was to avoid smuggling related to the re-entrance of Brazilian tobacco products in Brazil's territory. The application of the last two export taxes is regionally limited.  
 
Página 53, párrafo 3.16. Con respecto al desp acho de las importaciones comerciales, se 
menciona la selección de una declaración de  importación paragraph proceder a realizar 
exámenes documentales o físicos.  
 10. Brasil puede explicar bajo qu é criterios realiza la selección. 
 
La aduana hace la selección bajo criterios basados en análisis de riesgo, tales como, tipo, valor y 
origen de la mercancía, tratamiento tributario e historial del importador. Se aplica además un porcentaje variable de aleatoriedad, a los efectos de mantener la percepción del operador sobre la 
posibilidad de tener sus operaciones sometidas a inspección. 
 Página 54, párrafo 3.17. Se menciona que si fuese necesario demorar la determinación 
definitiva del valor de aduana de las merc ancías importadas, se permite efectuar el 
levante de las mismas bajo garantía.   11. México requiere conocer en qué regulaci ón de Brasil se encuentra establecido este 
procedimiento de desaduanamiento, ¿Qué tan recurrente es la aplicación de garantías? 
 La principal legislación aduanera de Brasil es el Reglamento Aduanero aprobado por el Decreto 
N° 6.759, de 5 de febrero de 2009. En su Título I hay disposiciones sobre el Despacho Aduanero. 
Adicionalmente, la normativa general del despacho aduanero de importación es la Instrucción Normativa SRF N° 680, de 2 de octubre de 2006. 
 
En lo que respecta el levante bajo garantía, el párrafo 1 del Artículo 48 de la Normativa 680 y la Portaría MF N° 389, de 13 de octubre de 1976, regulan este procedimiento en general. Respecto al valor en aduana, se puede también efectuar el levante antes de la determinación definitiva del WT/TPR/M/283/Add.1 
 
- 163 - 
 
valor en aduana, pero sin garantía, según los términos del artículo 22 de la Instrucción Normativa 
N° 327, de 9 de mayo de 2003.  Página 54, párrafo 3.19. Se menciona que existen medidas encaminadas a mejorar la 
lucha contra importaciones fraudulentas, señala ndo la transformación de la división de 
gestión de riesgos que ha intensificado la inve stigación de las prácticas de elusión fiscal, 
en particular de las declar aciones de origen falsas.  
 
12. México desea conocer qué otras medida s han implementado paragraph mejorar la 
lucha contra las importaciones fraudulentas.  
Además de la creación del CERAD, paragraph mejorar la gestión de riesgo y la selección de 
operaciones paragraph reconocimiento físico, recientemente se ha implementado el Plan Estratégico de Fronteras del Gobierno Brasileño, con miras a fortalecer la prevención, l controle, la 
inspección y contención de los delitos por las fronteras. En ese contexto se ha criado la Operación 
Frontera Blindada, que es una acción permanente de la Aduana de Brasil con miras específicamente al combate al contrabando, piratería y contrafacción. Se puede conocer más sobre 
la operación e sus resultados en la página web 
<http://acoesdareceita.receita.fazenda.gov.br/pagina_inicial> .  También con miras a combatir los fraudes aduaneros se estableció nuevos procedimientos 
especiales de controle de mercancías con indicios de fraude. Bajo esta normativa, en la presencia 
de indicios de infracciones cuya penalidad sea el  decomiso de la mercancía (fraudes de valor, 
contrabando, interposición fraudulenta de persona, entre otros) se puede detener la mercancía 
bajo despacho paragraph investigación con la finalidad de obtener la evidencia necesaria a la 
aplicación del decomiso.  
Se puede también destacar que hasta el final del 2013 todos los recintos aduaneros con 
movimiento de cargas superior al equivalente a 100 contenedores/día deberán disponer de escáneres paragraph inspección no invasiva, los cuales serán utilizados paragraph agilizar y mejorar el flujo del despacho pero también paragraph combatir los fraudes contrabando. 
 
Página 55, párrafo 3.23. El pá rrafo señala el tiempo que se requiere en Brasil paragraph 
importar mercancías (17 días).  
 
13. ¿Bajo qué ordenamiento se establece el tiempo de duración paragraph realizar una 
importación en Brasil? ¿Qué medidas a adop tado Brasil paragraph poder remediar el 
congestionamiento en los puertos y problema s que impiden un flujo expedito paragraph 
la importación de mercancías?  Hasta la fecha no hay disposiciones expresas sobre el tiempo máximo de duración de una 
importación. 
 Página 56, párrafo 3.24. El  párrafo menciona que ante las decisiones de la 
Administración de Aduanas se recurre a ci ertas instancias paragraph realizar los 
procedimientos paragraph la solución de diferencias.  
14. ¿Podría ahondar Brasil en qué consisten es tos procedimientos y cuál es el sustento 
jurídico?  Los procedimientos de solución administrativa de diferencias en materia aduanera se basan en el 
Decreto N° 70.235, del 6 de marzo de 1972. Este Reglamento reúne todas las normas y 
procedimientos aplicables a la solución de diferencias relacionadas a tributos y penalidades, tanto los aduaneros cuanto los de tributos internos. En esencia, el reglamento precisa las autoridades 
responsables de la toma de decisiones en primera y segunda instancias, marcando todos los plazos 
y los requisitos paragraph peticionar.  
Página 56, párrafo 3.28. Entre otras cuestion es, Brasil informa 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 este tipo pa ragraph mercancías similares atribuidas al 
mismo exportador. 
 WT/TPR/M/283/Add.1 
 
- 164 - 
 
15. ¿De qué manera se identifican la s declaraciones de origen falsas? 
 It shall be considered as false declarations of origin those which claim that a merchandize is originating from a certain country, which, however, does not comply with the provisions of 
Law No. 12,546, from 2011. Verifications of non-preferential origin are carried out by the 
Secretariat of Foreign Trade (SECEX) at the import licensing stage, as well as by the Secretariat of Federal Revenue of Brazil (RFB) during customs clearance and postclearance 
audits. False declarations of origin may trigger rejection of an import license application and 
refusal to grant such licenses for similar goods traced to the same exporter.  It shall be considered as false declarations of origin those which claim that a merchandize is 
originating from a certain country, which, however, does not comply with the provisions of 
Law No. 12,546, from 2011. Verifications of non-preferential origin are carried out by the Secretariat of Foreign Trade (SECEX) at the import licensing stage, as well as by the 
Secretariat of Federal Revenue of Brazil (RFB) during customs clearance and postclearance 
audits. False declarations of origin may trigger rejection of an import license application and refusal to grant such licenses for similar goods traced to the same exporter. 
 
Página 56, párrafo 3.29. El párrafo indica qu e con los países andinos aplican reglas que 
prevén la acumulación cruzada.  
16. ¿Cómo funciona la acumulación cruzada, en  qué sectores la aplican, con qué países 
se lleva a cabo? Asimismo, México desea cono cer la información relacionada con el tema 
de acumulación cruzada que aplica Brasil con los países andinos. 
 
The matter is regulated in "acordo de alcance parcial de complementação econômica N° 18". further information may be found at http ://www.desenvolvimento.gov.br/sitio/interna/ 
interna.php?area=5&menu=1385&refr=374 Página 56 / Párrafo 3.30. El párrafo menciona que las 
normas de origen de MERCOSUR se aplicarán hasta el 31 de diciembre de 2016.  17. ¿Qué normas de origen se aplicarán, o qué sucederá después de esa fecha? ¿Qué 
procedimiento de verificación de origen aplican con mayor frecuencia los Estados 
Miembros del MERCOSUR?  
Member States of MERCOSUR will continue to apply an intra-regional Regime of Origin for as long 
asymmetries in the Customs Union prevent the block from eliminating the mechanism. It is expected that the rules of origin should be revised and extended before December 31, 2016. The 
procedures related to verification of origin in MERCOSUR are applied in accordance with the 
Chapter VI of the Common Market Council Decision No. 01/2004.  Página 65, párrafo 3.47.  Al final de dicho párrafo se menciona que paragraph ciertos 
productos específicos pueden aplicarse la ex ención (temporal o permanente) del ICMS.  
 18. México desearía saber ¿Paragraph qué productos en específico y paragraph que 
Estados se aplica la exención temporal o permanente del ICMS? Entendemos que cuando 
un producto se importa por los estados de Santa Catarina, Espíritu Santo, Paraná, 
Pernambuco, Goiás y Alagoas, no se cobra el  ICMS en los puertos, ¿esto es cierto? 
¿Además de los estados antes mencionados, ha y otros Estados que no cobren el ICMS en 
los puertos?  Un Estado puede conceder beneficios fiscales por intermedio de autorizaciones concedidas por 
todos los demás estados o por intermedio de leyes específicas del propio estado. Por lo tanto, las 
posibilidades son demasiado variables paragraph se enumerar, sin embargo sean aplicables a las mercancías nacionales e importadas. 
 
Con relación al no pago del ICMS en los Estados que se enumera, creemos haber una mala interpretación, una vez que no es correcta la afirmación. Todos los Estados cobran el ICMS sobre 
las importaciones, aunque pueda haber diferentes alícuotas entre ellos, en razón de lo expuesto.   
 Página 65, párrafo 3.48.  Al final de dicho párrafo se menc iona que los Estados fijan tipos 
del ICMS en forma independiente, y los tipos del ICMS son del 7 o el 12%, en relación a 
esto, entendemos que a partir del 1 de enero de 2013 el ICMS aplicado a las mercancías WT/TPR/M/283/Add.1 
 
- 165 - 
 
importadas a nivel interestatal se armonizarí a a nivel nacional y se reduciría al 4%, de 
acuerdo a la Resolución N° 13 del Sena do Federal de 25 de abril de 2012.  
 19. Dada la discrepancia en este párrafo  (3.48) con la Resolución 13 del Senado 
Federal, México desearía saber ¿Cuál es  el verdadero ICMS que pagarían las 
importaciones del exterior de bienes y serv icios en cada uno de los Estados y en las 
transacciones interestatales e intermunicipales? 
 
El ICMS que grava una importación es aquel establ ecido en la ley del estado donde se efectuó la 
importación. Como regla general, la tributación es igual cualquier que sea el estado, con las excepciones mencionadas en la respuesta  anterior. 
 
El ICMS es un impuesto al valor adicionado y,  paragraph una venta entre Estados diferentes, la 
regla general es que aproximadamente dos tercios del impuesto total sea percibido por el Estado 
de origen y un tercio por el Estado de destino de la mercancía. 
 Ocurre que, desde enero de 2013, paragraph las mercancías importadas o paragraph aquellas 
producidas con más de un 40% de insumos importados, solamente 4% del ICMS es percibido por 
el Estado de origen y el restante por el Estado de destino. Eso significa que, en tales casos, aproximadamente un 75% del total del ICMS que grava la venta de esos productos en el mercado interno es percibido por el Estado de destino. 
 
Paragraph resumir, el ICMS total que grava la venta de un determinado producto en el mercado interno es siempre el mismo, sin interesar su contenido importado. Sin embargo, puede sí variar el 
reparto de ese impuesto entre dos Estados  diferentes, según el contenido importado. 
 Página 67, párrafo 3.53  
 
20. Sobre los neumáticos recauchutados, ¿Pod ría justificarse que exclusivamente los 
neumáticos importados sean perjudiciales al medio ambiente? por otro lado, ¿Cuál es 
tratamiento doméstico que se les da a es os neumáticos cuando no provienen del 
comercio exterior? 
 The import ban on retreaded tyres was aimed at protecting public health and preserving the 
environment. Brazilian measures regarding retreaded tyres are consistent with the 
recommendations of the Dispute Settlement Body (Dispute DS332. Viewed at: http://www.wto.org/english/tratop_e /dispu_e/cases_e/ds332_e.htm.) 
 
ADPF 101, the case heard in the Brazilian Supreme Court ("Supremo Tribunal Federal") became res judicata in June 11th, 2012. By that decision, all imports of used or retreaded tyres, regardless of origin, are prohibited. Brazil fully complied with the WTO decision. 
 
Página 73, párrafo 3.75. Se señala que IN METRO actúa como Secretaría Ejecutiva de 
CONMETRO. 
 
21. ¿Podría informar con más detalle cómo se  encuentran divididas las funciones como 
Secretaría Ejecutiva y de qu é manera se coordinan las actividades de normalización? 
 
The National Council of Metrology, Standardization and Industrial Quality (Conmetro) is a Council of Ministers who exercises the function of the re gulatory body and has Sinmetro - INMETRO as its 
secretariat. Conmetro members are the Ministers of Development, Industry and Foreign Trade, 
Science, Technology and Innovation, Health, Labour and Employment, Environment, External 
Relations, Justice, Agriculture, Livestock and Supply, Defence; INMETRO President and the Presidents of the Brazilian Association of Technical Standards - ABNT, the National Confederation 
of Industry - CNI, the National Confederation of  Trade in Goods, Services and Tourism - CNC and 
the Office of Consumer Affairs - IDEC.  
Incumbent upon Conmetro: 
 
- Develop, coordinate and oversee the national policy metrology, industrial 
standardization and quality certification of products, services and personnel, providing WT/TPR/M/283/Add.1 
 
- 166 - 
 
consultation mechanisms to harmonize the interests of public, industrial enterprises 
and consumers; 
- Ensuring uniformity and rationalization of units of measurement used throughout the 
national territory; 
- Encourage voluntary standardization activities in the country; 
- Establish technical regulations concerning industrial products and materials; - Set criteria and procedures for certifying the quality of materials and industrial 
products; 
- Set criteria and procedures for the application of penalties in cases of violation of 
provision of the legislation relating to metrology, industrial standardization, certification of quality industrial products and normative acts resulting there from; 
- Coordinate national participation in international activities of metrology, 
standardization and quality certification. 
 
The standardization activity is handled primarily by the Brazilian Committee for Standardization 
(CBN), which is one of the Committees set up to provide technical advice to Conmetro beside others the following Committees: Brazilian Co mmittee on Conformity Assessment (CBAC); 
Brazilian Committee of Metrology (CBM); Brazilian Regulatory Committee (CBR); Coordination 
Committee on Technical Barriers to Trade (CBTC); Codex Alimentarius Committee of Brazil (CCAB); Brazilian Committee on Life Cycle Assessment (CBACV). 
 
The Executive Secretariat has technical functions and is responsible for administrative support and 
organization of Conmetro.  
Página 73, párrafo 3.76. Se argumenta qu e Brasil no otorga equivalencia a los 
reglamentos técnicos adoptados por interlocut ores comerciales, pero si acepta la 
equivalencia en los resultados de pruebas.  
 
22. En ese sentido, ¿podría explicar có mo funcionan los reglamentos técnicos 
generados en el marco de MERCOSUR, y si éstos no son considerados como 
equivalentes? En caso contrario, ¿cómo son considerados? 
 
Among the various technical groups belonging to the MERCOSUR structure, there is the Working 
Subgroup No. 3 (SGT No. 3) - "Technical Regulati ons and Conformity Assessment", whose national 
coordination is performed by INMETRO in order to  establish and harmonize technical regulations. 
The SGT No. 3 is a mechanism for harmonization of technical regulations and procedures of 
conformity assessment which aims to facilitate the intra-MERCOSUR trade and with other countries 
and / or economic blocs and is based on adopting existing standards and international systems as 
reference. For harmonization should be understood that the same shall be adopted by all member 
countries of the bloc. 
 
More information about the regulations already harmonized, as well as the Technical Committees 
that are developing the harmonization of new regulations can be accessed through the Portal: 
http://www.inmetro.gov.br/barreiras tecnicas/SGT3organograma.asp 
 
Página 73, párrafo 3.77. Se menciona la elaboración de las normas técnicas en el marco de MERCOSUR, sin embargo, no queda cl aro como el Grupo mercado Común (GMC) 
funciona, y cómo éste interactúa por ejemplo con INMETRO.  
 23. En este sentido, ¿podría ampliar esta información?  
The Common Market Group (GMC), as the execut ive body of MERCOSUR, has instructed its 
Working Group Nº 3 (SGT 3) to assume the role of permanent technical forum for the coordination 
of policies related to the harmonization of technical norms (TN) and conformity evaluation 
procedures (CEP) in the Customs Union. In order to perform this task, the SGT 3 presents to the 
GMC drafts for TN and CEP to be adopted by ME RCOSUR. Once approved, the GMC converts said 
TN and CEP into MERCOSUR Resolutions, as establis hed by Article 15 of the Ouro Preto Protocol of 
MERCOSUR. 
 The SGT 3 national coordinator for Brazil is the National Institute of Metrology, Quality and Technology (INMETRO) of the Ministry of Deve lopment, Industry and Foreign Trade (MDIC). 
 WT/TPR/M/283/Add.1 
 
- 167 - 
 
Página 74, párrafo 3.78. Se establece un pe riodo paragraph presentar comentarios a los 
reglamentos técnicos.  24. ¿podría especificar de cuánto tiempo y si Brasil da posibilidad de que el tiempo 
propuesto sea ampliado? 
 Brazil seeks to provide a period of at least 60 days for the submission of comments to the 
requirements notified. In general, there is an effo rt of the Brazilian regulatory agencies in meeting 
requests for extension of time requested.  Página 75, párrafo 3.82.   
 
25. De acuerdo a lo establecido en el párrafo, ¿cómo un país podría solicitar que sus organismos de Acreditación o labora torios sean reconocidos en Brasil? 
 
The process of applying for accreditation is described on the INMETRO website and can be 
accessed through the following links: 
 
- Laboratory Accreditation  http://www.inmetro.gov.br/cre denciamento/sobre_lab.asp 
 
- Accreditation of Certification Bodies 
 http://www.inmetro.gov.br/crede nciamento/sobre_org_cert.asp 
 
- Accreditation of Inspection Bodies 
 http://www.inmetro.gov.br/crede nciamento/sobre_org_insp.asp 
 
More general information about the accreditation process INMETRO are at: 
http://www.inmetro.gov.br/c redenciamento/index.asp 
 Página 75, párrafo 3.83.  
 
26. Podría señalar de las 721 entidades co n acreditaciones activas paragraph llevar a 
cabo las evaluaciones de la conformidad,  ¿cuántas de ellas tienen acuerdos de 
reconocimiento mutuo? 
 Recognition agreements in the field of accreditat ion for specific areas occur between accrediting 
bodies. INMETRO is a signatory to the agreements in the area of accreditation of testing 
laboratories, calibration, certification and inspection. The accredited bodies that provide conformity assessment results can enter into agreements pursuant to applicable law.  
Página 75, párrafo 3.86.  
 27. ¿Podrían detallar las actividades en las que se emplean organismos modificados 
genéticamente? ¿Se tiene acceso al regist ro de productos en los que se emplean 
organismos modificados genéticamente? ¿Dón de se puede ver el contrato de gestión 
donde está vinculada la Agencia Nacional de  Vigilancia Sanitaria (ANVISA)? ¿Cuáles son 
los puntos de entrada de Brasil en donde se realizan inspecciones sanitarias? 
 The matter is regulated by Decree 4,680 / 2003.  
Página 76, párrafo 3.88.  
 28. ¿Cómo son los trabajos técnicos en l os que participa Brasil dentro del MERCOSUR, 
el Comité de Sanidad Vegetal del Cono Sur (COSAVE) y el Comité Veterinario 
Permanente del Cono Sur (CVP)? ¿Podría compartir el acuerdo o fundamento legal que permite el desarrollo de dichos trabajos en los foros citados? ¿Se comparten los 
resultados de dichos trabajos técnicos? En ca so afirmativo, ¿podrían indicar la liga a 
dichos resultados?  The said technical work is carried out in coordination with and with the consent of the MERCOSUR 
members, taking into account the regulations issued by the regional technical forums. WT/TPR/M/283/Add.1 
 
- 168 - 
 
The legal basis and the results of that technical work can be found on the official website: 
http://www.mercosur.int/.  Página 76, párrafo 3.89.  
 
29. ¿Cómo opera el sistema informatizad o (SIGVIG) y qué beneficios trae a los 
productos e insumos agrícolas que pasan en tránsito por el Brasil? 
 
The SIGVIG aims to control and monitor the goods imported and exported through ports, airports and borders, under a single register of establis hments, authorized representatives and import and 
export requirements. 
 
Página 76, párrafo 3.90.  
30. ¿Qué tiempo toma, en promedio, llevar a cabo una evaluación de riesgo paragraph 
la importación de animales? ¿Cuál es el fundamento legal donde se establece dicho 
tiempo? ¿Qué tiempo les toma en promedio llev ar a cabo una  evaluación de riesgo de 
plagas de las plantas? ¿Cuál es el fundam ento legal donde se establece dicho tiempo? 
 PRAs are complex processes extremely dependant on information concerning pests, plants, the 
environment and the interaction among these elements. 
 
The complexity of each PRA varies according to the commodity in question and its intended use, as well as the quarantine pests that may be spread , and this makes the establishment of a single 
timeframe impossible.  
 Agriculture has high economic importance in Brazil and requires solid, science-based measures for 
its protection. 
 Página 77, párrafo 3.91.   
31. ¿Dónde se pueden consultar las licencia s que expide la Secretaria de Defensa 
Agropecuaria (SDA) y que se realizan a tr avés de SISCOMEX? ¿Podrían indicarnos una 
liga electrónica? 
 
Those licenses are available on the SISCOMEX webs ite, which is open to previously registered 
persons. 
 
http://www.receita.fazenda.gov.br /aduana/siscomex/siscomex.htm 
 Página 78, párrafo 3.94.  
 
32. ¿Podría especificar la información que in corpora el Ministerio de Medio Ambiente 
relativa a los productos en mención? 
 
Detailed information may be found at http://www.agricultura.gov.br/servicos-e-
sistemas/sistemas/agrofit 
 
Página 80, párrafo 3.107.   33. ¿Podría mencionar, de ser el caso,  aquéllos compromisos internacionales que 
motiven la prohibición de exportación bajo el  principio de protección al medio ambiente? 
¿Podrían nombrar algunos ejemplos de prod uctos prohibidos por este motivo o qué 
compromisos internacionales lo justifican? 
 
The matter is regulated by IBAMA, under Portaria 93 / 1998.  
Página 80, párrafo 3.107.   
 34. ¿Cuáles son los criterios de aprobación del Instituto Brasileño del Medio Ambiente 
y de los Recursos Naturales Renovables (IBAMA ) a fines de prohibir la exportación de 
ciertas sustancias químicas orgánicas? WT/TPR/M/283/Add.1 
 
- 169 - 
 
The matter is regulated by Law 6,938 / 1981. 
 Página 82, párrafo 3.112.   
 
35. ¿Podría Brasil especificar cuáles son l os programas diseñados paragraph aumentar 
la competitividad de las empresas orientadas  a la exportación, tanto paragraph PyMEs, 
como aquéllos paragraph potenciar las expo rtaciones, así como los productos que 
cubren estos programas? ¿Cuál es el princi pal beneficio de estos programas y de qué 
manera ha repercutido en las exportacione s a partir de su implementación? ¿Podría 
explicar Brasil la aplicación del sistema de desgravación fiscal a la exportación y su 
relación con la compra de insumos nacionales  paragraph la elaboración de productos de 
exportación, y si esta medida no constituye  un requisito de desempeño? ¿Podría indicar 
Brasil, cuáles son los nuevos programas de apoyo a la exportación que se han establecido? 
 
All the information regarding export and production support can be found at: 
_www.desenvolvimento.com.br and www.planobrasilmaior.com.br.  
 
Página 82, párrafo 3.116.   
 36. Si bien se establece que no se prevé la prórroga del Programa Reintegra ¿Podría 
Brasil aclarar la conformidad de este programa  con las normas de la OMC, al limitar las 
importaciones de los productos industriales, supeditando con ello el otorgamiento de 
este beneficio a la utilización de insumos nacionales? 
 
REINTEGRA is no longer in force, since the Provisional Measure 601/2012 is not effective anymore. Reintegra was aimed at reducing the residual ta x e s  o f  p r o d u c t s  t o  b e  e x p o r t e d  w h i c h  l a c k  
appropriate instruments of refund along the produc tion chain. Imported products are taxed all at 
once, in customs clearance, whereas domestic products are taxed along the production chain. Some of the tax credit created on the production of a domestic good is diluted or lost and cannot be used to offset taxes along the chain, whereas imported products generate tax credits more 
easily. The REINTEGRA calculation took this fact into account and simply offsets tax residue 
primarily from imperfections of tax collection in the Brazilian chain of production.  
Página 85, párrafo 3.129.   
 37. ¿En qué consisten las zonas mencionadas,  y porqué están exentas de permisos a la 
importación? Aun cuando los relacionados con medio ambiente estén exentos, se solicita 
mayor información.  Brazilian EPZ are characterized as industrial area s intended for exports. Companies established in 
Brazilian EPZ may import or purchase goods and services in the local market with suspension of 
import duties and the IPI, COFINS, PIS, and AFRMM taxes. These companies must export 80% of their gross income sales of goods. Companies in EPZ are exempted of licenses or authorizations to 
import raw material and capital goods, and to expo rt its products, if applicable. The exemptions of 
licenses or authorizations are an administrative incentive to their operations. However, theses exceptions are not applied to sanitary, national security, and environment controls. 
 
Página 87, párrafo 3.135.   
 38. ¿Podría Brasil indicar los sectores que se benefician del apoyo PROEX, y si se 
aplican a sectores específicos? ¿Cuáles son los requisitos que deben cumplir las 
empresas paragraph poder acceder al financ i a m i e n t o  d e  P R O E X ?  S i  e l  o b j e t i v o  d e l  
PROEX es financiar las exportaciones brasile ñas de bienes y servicios en condiciones 
similares a las que se pueden obtener en  los mercados internacionales paragraph 
empresas que de otro modo no tendrían a cceso al financiamiento o podrían acceder solo 
con tipos de interés más elevados en el mercado nacional ¿podemos entender que las 
tasas que otorga PROEX son más bajas que la s que se otorgan en condiciones normales 
de mercado?  WT/TPR/M/283/Add.1 
 
- 170 - 
 
PROEX aims at giving Brazilian exporting companies access to credit in similar conditions to those 
practiced in foreign markets, and not at favorable conditions. The interest rates practiced are similar to those practiced by other export-credit agencies in other countries.  
PROEX has two programmes : PROEX Financing and PROEX Equalization. PROEX Financing 
provides direct credit to the exporter or impo rter of Brazilian goods and services in similar 
conditions to those practiced in international markets. It is mainly designed to support micro, 
small, and medium sized enterprises (MSEMs) with an annual turnover of up to R$600 million 
(about US$300 million).   PROEX Equalization aims at reducing interest rates provided by financial institutions in Brazil or 
abroad, so as to make interest rates equivalent to those in the international market. 
 Página 93, párrafo 3.162.  
 
39. ¿Cuáles son las principales ventajas y de sventajas del diseño institucional actual 
vis a vis del anterior, en el combate a prácticas anticompetitivas?  
 
Before the new Law in 2012, the Brazilian Compet ition System was integrated by three different 
government units – the Ministry of Finance, the Ministry of Justice and CADE. This meant that 
before reaching CADE's analysis and final decision , a merger or a conduct case would be analyzed 
by two other entities. Such process represented, in several cases, ineffective delays, added to a 
significant allocation of public resources. The new Law withdrew the participation of these other agents in merger and anticompetitive conducts enforcement. There is now a single agency in 
charge of this task in Brazil: CADE. 
 The new legislation also conveyed a staff and bu dget increase and newer and bigger facilities. All 
was done to adapt to a needed expansion of the Brazilian cartel and unilateral conducts 
enforcement and merger analyses efforts. In the first year, the Brazilian antitrust authority had to adapt its structure and efforts to this scenario. As demonstrated by the numbers, CADE has improved greatly in resource management and has become more effective by focusing on 
potentially strong cases. Certainly one of the main changes in the Brazilian Competition System 
established in 2012 was the adoption of a pre-merger control regime. The new Competition Law now states that mergers must be notified beforeha nd for CADE's analysis and approval, similarly to 
other antitrust jurisdictions. This major alteration places Brazil's merger enforcement alongside the 
best international practices in terms of procedure. The new regime also established new notification thresholds. The former legislation determined that if any of the parties involved in the 
merger presented a US$ 200 million annual gross revenue in Brazil the merger should be notified. 
The previous Law also imposed the notification of mergers that represented a concentration of 
20% or more of a given relevant market.  
The 2012 legislation eliminated the market share cr iteria, due to its subjectivity and difficulties 
related to predicting relevant markets definitions beforehand. Regarding the revenue criteria, its amount was updated and a second threshold was created. Currently, a merger must be notified for 
CADE's approval if one of the parties attains an a nnual gross revenue in Brazil equal or superior to 
US$ 375 million and a second party involved reaches a revenue of US$ 37.5 million. The new criteria aimed at bringing clarity and objectivity to merging companies. Also the second threshold 
and the amounts' update attempted to address the in creasing number of merger filings in Brazil in 
the past few years, which were mostly approved without any restrictions. The new thresholds diminish costs to companies doing business in Brazil and at the same time that it lessens the unnecessary expenditure of scarce public resources applied by CADE in merger review, allowing 
the agency to focus in clearer anticompetitive cases.  
 The 2012 Competition Law also corrected flaws in the former legislation related to the time spent 
by the authorities with merger analysis. Until the recent changes in the Law, the agency's 
deadlines were suspended each time some new information was requested from the parties. Such system, combined with the above mentioned three instances analysis1, often resulted in long 
waiting periods until a final decision was rendered.  
 The present legislation fixed a 240 day period in which a decision on the mergers approval or disapproval must be delivered. If CADE fails to render a decision within such time, the merger 
would be automatically approved. The experience under the new law so far gathered shows that WT/TPR/M/283/Add.1 
 
- 171 - 
 
the agency has been taking much less than 240 days  to deliver a final statement. Particularly in 
simpler (short form) mergers, CADE has made a commitment to deliver its decisions within 30 days – a deadline that has been thoroughly fulfilled.   
Regarding the content of merger analysis the ne w legislation did not bring relevant changes, 
although CADE's new structure is also designed to constantly push for quality increases of its analysis and decisions. The deepening of the ag ency's contacts with foreign authorities and 
forums, investments in infrastructure and staff training, the constitution of a Department of 
Economic Studies and current reviewing of its mergers guidelines are examples of such initiatives, amongst others brought by the new law.  
Página 94, párrafo 3.163.  
 40. ¿Qué ventajas/desventajas tiene el he cho de que el Tribunal Administrativo de 
Defensa Económica y la Oficina del Fiscal es tén dentro del Consejo Administrativo de 
Defensa de Económica (CADE)?  
Before the new Law in 2012, the Brazilian Compet ition System was integrated by three different 
government units – the Ministry of Finance, the Ministry of Justice and CADE. This meant that 
before reaching CADE's analysis and final decision , a merger or a conduct case would be analyzed 
by two other entities. Such process represented, in several cases, ineffective delays, added to a 
significant allocation of public resources. The new Law withdrew the participation of these other 
agents in merger and anticompetitive conducts enforcement. There is now a single agency in 
charge of this task in Brazil: CADE.  
 
Página 94, párrafo 3.164.   
41: ¿Cómo se implementa el pr oceso de revisión judicial de las resoluciones del CADE? 
 CADE is in charge of all competition enforcement matters, including investigations of anticompetitive practices and merger review. In exercising this role, CADE may reject or impose 
remedies to anticompetitive mergers, as well as apply sanctions towards companies and 
individuals that engage in anticompetitive conducts. All of CADE's decisions are taken within the administrative branch of power. According to Brazilian constitution basic rights all administrative 
decisions may be reviewed by the judiciary, all in agreement with the constitutional right to 
petition. In this regard, the judicial review is do ne in accordance to Brazilian due process of law 
and shall follow all regular procedures.  
 
Página 94 / Párrafo 3.165.   42. ¿Puede el CADE implementar medidas cautelares y caución? ¿Tiene el CADE 
atribuciones paragraph implementar visita s de verificación? ¿Qué elementos son 
considerados paragraph priorizar investigaciones?  
CADE may hold precautionary measures and it has done so successfully in several occasions. It is 
important to point out that such enforcement acti ons only occur after a judge's positive decision, 
in the first 6 months of the 2012 Law alone, 04 search warrants and dawn raids were conducted 
by the agency's Superintendence.  
 Página 95, párrafo 3.166.  
43. ¿Cómo interviene el CADE sobre leye s y reglamentos que pudieran genera o 
incentivar conductas anticompetitivas?  
CADE keeps a close contact to the legislative power in order to follow any changes to Brazilian 
Competition Policy and it is often requested to participate in discussions involving the matter. Aside from that, CADE may publicize specific regulations on matters of its concerns, for instance, 
in January 2013 CADE approved new rules for the negotiation program of Cease and Desist 
Agreements ("TCC" for its acronym in Portuguese). The changes aim at improving the agreements: considering that the TCCs are important tools to obtain evidence that can be decisive in investigations of anticompetitive behavior, they may, as a result, be decisive for the effective 
resolution of cases.  WT/TPR/M/283/Add.1 
 
- 172 - 
 
Página 95, párrafo 3.167.  
 44. ¿Cómo se determina en la práctica que una empresa tiene posición dominante? ¿Qué tipo de evidencia puede ser utilizada pa ragraph demostrarlo? ¿Se ha clarificado el 
tipo de evidencia requerida paragraph acredi tar que un acuerdo es anticompetitivo, así 
como el tipo de prueba que un potencial infr actor puede presentar en su favor paragraph 
demostrar que no ha incurrido en esta prác tica? ¿Se ha evaluado si los métodos de 
detección de cárteles reactivos (por ejemplo:  sistema formal de denuncias, programa de 
clemencia, asistencia de informantes) han sido más/menos efectivos que los métodos 
proactivos (por ejemplo: cooperación in terinstitucional con otras agencias de 
competencia, asistencia de entidades gube rnamentales, monitoreo de prensa y/o 
asociaciones comerciales, programas de difusi ón de la política de competencia) en la 
práctica?  
All evidence that is obtained legally and that is considered significant to the case may be used to 
support CADE's decisions, in this regard we must call attention to the extreme care that is given to evidence gathering by CADE's staff added to the respect of the parties' full right of defense. CADE 
has a much esteemed leniency program, the new law highlights that the head and leader of a 
given cartel can now benefit from the leniency a ccorded by the authority. Besides the leniency 
granted to company is, under the new law, extended to other cartel related crimes.  
The agency's leniency program, along with its settlements policy, is thus object of increasing 
efforts directed at improving the management of the cases, speeding up decisions and diminishing uncertainties, encouraging more leniency applicants and agreements to come forward, with deeper 
collaboration with investigations. Within Brazil's leniency program, the first company to come 
forward (as well as individuals), confess its participation in a cartel and effectively collaborate with the investigations may be granted full immunity. If the authority was already aware of the 
practice, fines may be reduced from 1/3 to 2/3. 
 Anticompetitive conducts may also be subject of settlements with the antitrust authority. Advancing in its transition process from the former legislation, CADE has recently released new 
rules for settlement proceedings, through Resolution 05, of March 6
th 2013. 
 The regulation established concrete parameters of reduction in the pecuniary contribution's 
amount, according to the degree of collaboration of the proposer, as well as the moment of the 
settlement proposition. The first party to propose a settlement (that excludes a former lenient party ) may be granted a reduction of 30% to 50%; the second party, a reduction of 25% to 40%; 
the third party, a reduction up to 25%. Such changes are aimed at giving more predictability and 
transparency to the negotiation process, as well as strengthening cartel's enforcement and investigations. Additionally, we would like to mention that CADE may start investigations ex officio through research and based on partnership with the police and the parquet for cartel cases. CADE 
is developing a project to detect cartels by means other than leniency using statistic and 
information technology mechanisms, for instance.  
Página 95, párrafo 3.168.  
 45. ¿Qué tipo de evidencia se consider a paragraph acreditar que los beneficios 
obtenidos de eventuales eficiencias económic as, producto de una integración económica 
determinada, efectivamente ex ceden un potencial impacto negativo de la operación? 
 All evidence that is obtained legally and that is considered significant to the case may be used to 
support CADE's decisions, in this regard we must call attention to the extreme care that is given to 
evidence gathering by CADE's staff added to the respect of the parties' full right of defense.  
 
Página 96, párrafo 3.169.  
 46. ¿A quién se destina el ingreso obtenido por las multas? ¿Qué tipo de elementos se 
consideran como atenuantes/agravantes al im poner sanciones administrativas/penales?  
 All fines imposed by CADE are to be collected by the Brazilian Diffused Rights Fund ("FDD" for its 
acronym in Portuguese), which entrusts the money to public agencies and civil nonprofit projects WT/TPR/M/283/Add.1 
 
- 173 - 
 
that aim at the recovery of assets and protection of diffuse rights like those entrenched within the 
ambit of environment protection, historical and cultural heritage or consumer rights.  
 Página 96, párrafo 3.170.  
 
47. ¿Qué limitantes tienen los acuerdos de  cooperación implementados por el CADE 
paragraph sancionar cárteles internacio nales? ¿Es posible sancionar cárteles 
conformados por empresas que no tienen presencia en Brasil a través de subsidiaras 
pero que proveen sus productos desde su pa ís de origen? ¿Cómo es el procedimiento 
paragraph investigar y condicionar/sancio nar concentraciones internacionales con 
efectos anticompetitivos en Brasil? ¿Qué lim itantes tienen los acuerdos de cooperación 
implementados por el CADE paragraph sanc ionar fusiones internacionales? ¿Cómo 
podría mejorarse la cooperación internacio nal entre el CADE y otras agencias de 
competencia? 
 
CADE has  s i g ne d more  than 1 0 M oUs  with juris d i c tions  from al l ove r the  world . T hroug h those agreements and especially through soft cooperation, CADE is able to exchange information and 
hold a fluent relation with many jurisdictions. There are, however, two main concerns that need to 
be addressed every time: all cooperation acts must be done in accordance to Brazilian law and confidential information must not be exchanged, unless it is done in accordance to waivers of confidentiality given by the parties. As to the possibility of sanctioning cartels that might have 
effect in Brazil, even though they are not established within our territory, please refer to article 2 
of our law below:  
CHAPTER II 
TERRITORIALITY  
Art. 2. This Law applies, without prejudice to conventions and treaties of which Brazil is a 
signatory, to practices performed, in full or in part, on the national territory, or that produce or may produce effects thereon. § 1 A foreign company that performs transactions or has its branch, agency, subsidiary, 
office, establishment, agent or representative in Brazil shall be considered domiciled in 
national territory. § 2 The foreign company shall receive service of process regarding all procedural acts set 
forth in this Law, regardless of any power-of-attorneys or contractual or statutory 
provisions, by means of its agent, representative or person responsible for its branch, agency, subsidiary, establishment or office installed in Brazil. 
 
4  Políticas Comerciales, Por  Sectores Página 163, párrafo 4.102.   
48. ¿Podría enlistar los productos que se  identifican como protectores del medio 
ambiente?  
Please refer to "Instrução Normativa RFB 884 / May, 9th, 2008". 
 Página 181, párrafo 4.183.   
 
49. Sobre la revisión de la regulación de la telefonía fija, ¿Existe alguna política 
nacional paragraph fomentar buenas prácticas regulatorias, o la revisión en mención es 
una acción aislada? 
 
La revisión de la reglamentación de la telefonía fija es una determinación prevista en los contratos de concesión firmados por el gobierno de Brasil con los proveedores de servicios. En estos 
contratos hay una cláusula que considera la posibilidad de revisión a cada cinco años. En 
consecuencia, dos años antes  del período de revisión, la Anatel tiene que empezar a trabajar en el proceso de revisión, poniendo las propuestas en consulta pública y en discusión con la sociedad. 
Ese proceso incluye la revisión de diversos instrumentos normativos más allá de los propios 
contratos de concesión, como el reglamento del servicio, el reglamento de la calidad del servicio, el Plan General de Servicio Universa l (PGMU), y otros, según corresponda.  
 WT/TPR/M/283/Add.1 
 
- 174 - 
 
5  Otras Preguntas De Mexico 
 De carácter general  
50. ¿Los préstamos otorgados por BNDES se real izan con tasa de interés igual a la de 
fondeo?  
BNDES credit lines charge interest rates higher than  its cost of funding. The terms of financing to 
the loan recipient include a sum of costs, which always reflect the cost of funding to BNDES, plus the BNDES Basic Spread (margin that covers operat ional expenses),  plus the Credit Risk Spread 
(margin to cover nonperforming loans). 
 
51. ¿Cómo se cumple con el trato nacional a las importaciones del sector automotor a 
la luz del programa INOVAR auto? Requisitos de desempeño – Establecimiento en Brasil. 
 
The program sets out technology and production requirements for the tax benefits that aim to attract investments in research, development and technological innovation as well as the 
performance of productive steps in Brazil.  Prod ucers and importer may benefit equally from the 
program, and there is no discrimination with regards to origin. Domestic and imported inputs can be equally used. The exemption granted in the regimes would otherwise be converted in tax 
credits that can be offset, therefore the programs are fiscally neutral.  
 
52. PIS y COFINS ¿Cómo aplican a los prod uctos importados y a los producidos en 
Brasil? Trato Nacional. 
 
Los tributos PIS y COFINS que gravan a las importaciones fueron criados paragraph establecer la equidad de tratamiento tributario entre el producto nacional y el importado. En el mercado interno 
igualmente hay el cobro de las contribuciones PIS y COFINS pero ellas gravan la facturación de la 
empresa.  La legislación general que regula la tributación por las contribuciones PIS y COFINS es: 
 
 - Ley 10.833 de 29 diciembre de 2003, Artículos 1 al 16. (COFINS - facturación)  - Ley 10.637 de 30 diciembre de 2002, Artículos 1 al 12. (PIS - facturación) 
 - Ley 10.865 de 30 abril de 2004, Artículos 1 al 31. (COFINS y PIS - importación) 
 - Instrucción Normativa SRF 247 de 21 de noviembre de 2002  - Instrucción Normativa SRF 404 de 12 marzo de 2004. 
 
53. ¿Lo producido en la Zona Franca de Ma naos (con exención de diversos impuestos) 
se destina también al consumo interno?  
In general, goods produced in the ZFM and destined for internal consumption in Brazil are taxed as 
if they were imports.  
54. Recientemente la Confederación Nacional de la Industria de Brasil (CNI) mencionó 
que "Brasil quedará aislado si no busca nue vos acuerdos comerciales", ¿Cuáles son los 
retos y la postura de Brasil ante la confor mación de una nueva geopolítica comercial? 
¿Existe la posibilidad de flexibilizar el MERCOSUR paragraph que los países miembros 
alcancen acuerdos comerciales de su  interés de manera bilateral?  
 Under current MERCOSUR rules, in particular the CM C Decision 32/00, there is not such possibility.  
 
En materia de procedimientos ad uaneros y reglas de origen 
 
55. ¿El sistema aduanero de Brasil es cent ralizado o está formado por un conjunto de 
administraciones aduaneras regionales que establecen sus propios lineamientos dentro 
de su área geográfica de competencia? 
 
La estructura organizacional de la RFB es conformada por tres niveles: Central, encargada de las funciones de administración general y de las actividades normativas, de coordinación supervisión y de planificación; Regional, que abarca un conjunto de 10 Superintendencias, ejerciendo el rol de 
supervisión y control, a su nivel, de las actividades de las oficinas aduaneras locales; y Local, WT/TPR/M/283/Add.1 
 
- 175 - 
 
donde se llevan a cabo las funciones operativas, bajo las directrices provenientes del Nivel Central 
de coordinación. Todas las informaciones están disponibles en el Regimento Interno de la RFB, aprobado por la Portaria MF N° 203, de 14 de mayo de 2012. Véase en el link http://www.receita.fazenda.gov.br/Legislacao/Po rtarias/2012/MinisteriodaFazenda/portmf203.htm 
 
56. ¿Cuáles son los procedimientos que se  aplican en los casos que establece el 
párrafo segundo del artículo decimoquinto de l Régimen General de Origen de la ALADI, 
especialmente cuando se aplican garantías?  ¿Qué otros ordenamientos legales y que 
artículos regulan estos procedimientos? ¿Cuá les son los plazos paragraph su devolución 
y que procedimientos  debe seguir un importad or paragraph tal fin? ¿Qué tan recurrente 
es el recurso a la aplicación de garantías? 
 
Cuando hay dudas sobre la veracidad y autenticidad de un certificado de origen, durante el despacho de importación de las mercancías, se puede pedir informaciones adicionales al país 
exportador, de conformidad con los plazos y procedimientos establecidos en el Régimen de Origen 
del MERCOSUR o en uno de los distintos regímene s de origen preferenciales negociados por el 
MERCOSUR. 
 
Si persisten las dudas, puede iniciarse una investigación de origen, cuando son requeridas informaciones, documentaciones cuestionarios, visitas a las instalaciones del productor, según proceda. 
 
La garantía es requerida cuando: hay indicios de irregularidad en la certificación de origen e informaciones adicionales son requeridas al país exportador; cuando detectarse errores formales 
en el certificado; y cuando hay una investigación de origen en curso sobre mercadería idéntica del 
mismo productor.  
Concluída la investigación con la calificación del origen de la mercadería y de la validación del 
criterio de origen invocado en el certificado de origen, son liberadas las garantías, en un plazo no superior a 30 días corridos.  
Concluída la investigación con la descalificación del criterio de origen de la mercadería invocado en 
el certificado de origen cuestionado, se ejecutar án los gravámenes como si fuera importada desde 
terceros países y se aplican las sanciones previstas en la normativa. 
 
57. De conformidad con la Ley Aduanera de Brasil, ¿en qué casos se solicita la 
consularización de una factura? 
 
Brasil no utiliza la práctica de consularización de factura ni cualquier otro documento paragraph fines de importación de mercancías.  
58. ¿Cuáles son los procedimientos aduane ros aplicables a muestras comerciales? 
¿Tiene Brasil una definición de "mue stra comercial" paragraph tal fin? 
 
Las muestras sin valor comercial podrán utilizarse del procedimiento de Declaración Simplificada 
de Importación o de Exportación, en formulario papel, en los términos de la IN SRF nº 611/2006. Además, tales muestras son exentas del pago de tributos. 
 
De conformidad con el art. 153, I, del Reglamento Aduanero (Dec. 6.759/2009), sólo se consideran sin valor comercial las muestras representadas por cantidad, fragmentos o partes de cualquiera mercadería, estrictamente necesarios paragraph dar a conocer su naturaleza, especie y 
calidad. 
 59. ¿Cuál es el procedimiento paragraph la  solicitud de resoluciones oficiales en 
materia de clasificación arancelaria y valoraci ón de las mercancías? ¿Qué plazos existen 
paragraph obtener una respuesta?  
La Instrucción Normativa No. 740, de 2 de mayo de 2007, establece el procedimiento de consulta 
relativo a la interpretación de la legislación tributaria y aduanera y también sobre la clasificación arancelaria. Esa normativa no establece un plazo máximo paragraph la emisión de una resolución anticipada, pero, hasta 30 días después de la respuesta, el peticionario no puede sufrir WT/TPR/M/283/Add.1 
 
- 176 - 
 
penalidades ni interés moratorio respecto a la materia consultada. Brasil no ha implementado 
todavía el procedimiento de resolución anticipada sobre el valor en aduana. 
60. ¿Ya tiene implementado Brasil el sist ema de Operador Económico Autorizado 
previsto por la OMA? ¿Cuál es la experienci a que se ha ganado hasta la fecha? ¿Han 
negociado reconocimientos mutuos? 
 En Brasil está en marcha el desarrollo del Programa de Operador Económico Autorizado (OEA) 
basado en los conceptos preconizados la OMA, por lo cual no tenemos todavía acuerdos firmados 
paragraph reconocimiento mutuo. Sin embargo, hay iniciativas piloto con EEUU y MERCOSUR, en el marco de dicho Programa, con el objetivo de alcanzar el reconocimiento mutuo paragraph un flujo específico de comercio acordado entre las partes, bajo criterios técnicos definidos a los 
efectos de evaluar el modelo que se propone implementar. 
 Asimismo, se debe resaltar que la Aduana de Brasil ha implementado el Despacho Aduanero 
Expreso, conocido como "Línea Azul", por intermedio de la Instrucción Normativa No. 476, de 
13 de diciembre de 2004, por lo cual se brinda tratamiento expreso a importadores y exportadores 
habilitados, bajo determinadas condiciones y previo demostrar alto grado de cumplimiento de la 
legislación aduanera y tributaria y de requisitos de seguridad física de su cadena logística. 
Paragraph ellos, son concedidos beneficios tales como el canal de selectividad preferiblemente verde (sin conferencia) y prioridad de tratamiento en las formalidades de despacho aduanero, siempre que sea seleccionado paragraph aforo documental o físico. Más informaciones pueden ser 
consultadas en la página web 
http://www.receita.fazenda.gov.br/Adu ana/LinhaAzul/LinhaAzul.htm.    
 
61. México desea conocer qué medidas ha implementado el gobierno de Brasil 
paragraph la facilitación del comercio.  
The Resolution CAMEX No. 16/2008 created the Tec hnical Group of Trade Facilitation (GTFAC). 
Since then, the Brazilian Government has adopted Trade Facilitation measures, which, among other benefits, led to reduced customs clearance times. These measures include:  a) Comprehensive review of legislation and licensing requirements for each non-tariff control 
agency with a view to reduce duplication and incr ease efficiency;  b) improvements to SISCOMEX 
in order to allow agencies to automatically approve less risky operations;  c) Incorporation of new software to SISCOMEX to allow the attachment of electronic documents to the system; and d) 
Nationwide evaluation of the available workforce of all Brazilian government agencies operating at 
borders, in order to provide adequate pers onnel to deal with increased trade flows. 
 
With regard to further trade facilitation activi ties, the GTFAC has been working on the following 
actions:  (i) the improvement of electronic syst ems with a view to reducing average clearance 
times, using the single window approach; (ii)  the improvement of an Instantaneous Imports 
Licensing Deferring tool, intend e d  t o  s p e e d  u p  a p p r o v a l  o f  i m p o r t  l i c e n s e s ;  a n d  ( i i i )  t h e  
development of governmental qualification and trai ning programs on trade facilitation for border 
control officials.  
62. ¿Se da la posibilidad a los operadores  económicos de coment ar los proyectos de 
modificación a las regulaciones en mate ria aduanera? ¿Cuál es el mecanismo? 
 
La Aduana de Brasil da la posibilidad de formular observaciones sobre la introducción o 
modificación de regulaciones respecto a regímenes o procedimientos aduaneros y que no demanden urgencia o secreto en su implementación o que promuevan apenas correcciones puntuales o no cambien substancialmente las reglas ya establecidas. Más información sobre el 
mecanismo se encuentra en la página web 
http://www.receita.fazenda.gov.br/automatic osrfsinot/2008/05/14/ 2008_05_14_10 _29_30_39001
0080.html y en la Portaría RFB nº 689, de 30 de abril de 2008. 
 
63. ¿Es Brasil miembro de la Convención Revi s a d a  d e  K y o t o ?  E n  c a s o  d e  n o  s e r l o ,  
explicar las razones. 
 
Brazil is in the process of acceding to the Convention.  WT/TPR/M/283/Add.1 
 
- 177 - 
 
64. ¿Cuál es la experiencia que se ha obtenido con la participación de especialistas 
como observadores en las investigaciones de origen? 
 Las investigaciones de origen preferencial son llevadas a cabo en Brasil por funcionarios 
aduaneros, especializados en esa materia y hasta la fecha no hay experiencia con la participación 
de observadores.  
WT/TPR/G/283 
 1  Panorama General  
Página 4, párrafo 1.2.  
 65. ¿Podría mencionar alguna de las polít icas que favoreció al sostenimiento del 
empleo en el periodo? 
 For example, consumers credit policies were used to stimulate domestic consumption, reducing the 
impacts of international recession. 
 Página 4, párrafo 1.4.   
66. ¿Qué esfuerzos en concreto está realiz ando el país paragraph el cumplimiento de 
los compromisos asumidos en Doha?   
Brazil has consistently reiterated its commitment to the conclusion of the Doha Round and with its 
objective of promoting a more equitable and development-oriented international trading system. In concrete, Brazil is working, for example, on proposals for customs cooperation and trade 
facilitation of perishable goods under the NGTF in the DDA, among other relevant initiatives. 
 Página 4, párrafo 1.5.   
67. ¿Se considera que actualmente algún acue rdo comercial o negociación en curso, de 
la cual Brasil no sea parte, pueda crear obst áculos al comercio, mencionar cuál o cuáles? 
 
This kind of consideration has to be made on a ca se by case basis. It is not possible to prejudge 
the impacts of barriers to trade of future agreements.  
2  Entorno Económico General 
 Página 6, párrafo 2.9.   
68. ¿Por qué se toma de manera aislad a la disminución del papel frente a la 
conservación del medio ambiente?   
The Brazilian Government is trying to reduce paper procedures not only to simplify trade 
procedures, but also in order to give yet another contribution to sustainable development around the world. 
 
4  Marco Institucional Y Normat ivo Del Comercio Internacional 
 Página 20, punto 4.1.1. Sobre Normas Técnic as, se establece que se atribuyeron nuevas 
facultades al Instituto Nacional de Metrol ogía, Calidad y Tecnología (INMETRO), entre 
ellas, la participación en el Organismo de l Sistema Integrado de Comercio Exterior 
(SISCOMEX).  
 
69. ¿Podría profundizar en qué consiste este  sistema y de qué ma nera sirve paragraph 
mejorar las evaluaciones de la conformidad, en particular antes de que las mercancías 
entren al país? 
 SISCOMEX is a computerized system responsible for integrating the activities of registration, monitoring and control of foreign trade operations through a single, automated flow of information. 
SISCOMEX is useful in facilitating evaluations and import licensing to the Brazilian market. WT/TPR/M/283/Add.1 
 
- 178 - 
 
Página 20, Punto 4.1.1.  
 70. ¿Cómo funciona el SISCOMEX paragraph lle var a cabo dichas evaluaciones ex ante, 
es decir, antes de que la autoridad las pueda evaluar en su territorio? 
 
Through information provided by the importer to SISCOMEX, INMETRO evaluates the product and its formal compliance to Brazilian technical regulations. 
 
Página 20, párrafo 4.2.   71. Se señala que Brasil ha notificado 382 reglamentos técnicos, procedimientos de 
evaluación de la conformidad, entre otros. Podría señalar sobre qué sectores son estos 
reglamentos y si incluyen también reglamen tos correspondientes a Medidas Sanitarias y 
Fitosanitarias. 
 
Notifications under the TBT agreement and noti fications under the SPS agreement are treated 
differently, and notified as disposed by under each agreement. 
 
Página 20, párrafo 4.2.  72. ¿Podría señalar si las notificaciones de Brasil se han incrementado a lo largo del 
tiempo y en qué sectores producti vos se ha llevado esto a cabo? 
 Brazil's technical regulations are under continuous monitoring and reviewing, regardless of sector 
or subject. 
 Página 21, párrafo 4.4. Se mencionan los Acuerdos de Reconocimiento Mutuo que Brasil 
ha firmado con organismos de acreditación. 
 73. ¿Podría señalar con qué países y en qué sectores Brasil ha suscrito este tipo de Acuerdos? 
 
Information available at: < http://www.inmetr o.gov.br/barreirastecnicas/recmutuo.asp> 
 
Página 21, párrafo 4.5. Establece que en el  marco de MERCOSUR, Brasil ha colaborado 
en la elaboración de un sistema de armonización de requisitos técnicos. 
 
74. ¿Podría profundizar en cómo se lleva a cabo la coordinación entre los países del 
MERCOSUR paragraph la elaboración de ésto s reglamentos técnicos, así como comentar 
en su efectividad?  
Kindly refer to answer to question 22. 
 Página 21, párrafo 4.5.  
 
75. ¿Podría mencionar cuánt os reglamentos técnicos de ME RCOSUR se han elaborado y 
en qué sectores? 
 
More information about the regulations already harmonized, as well as on the Technical 
Committees that are developing the harmonization of new regulations can be accessed through the 
Portal: <http://www.inmetro.gov.br/barre irastecnicas/SGT3organograma.asp > 
 
Página 21, párrafo 4.5. Se menciona que Brasil sostiene actividades de cooperación 
bilateral sobre reglamentos técnicos con varios países.  
 
76. ¿Podría profundizar en qué cons isten este tipo de actividades? 
 
Information available at: <http://www.inmetro. gov.br/barreirastecnicas/cooptecnica.asp> 
 WT/TPR/M/283/Add.1 
 
- 179 - 
 
Página 26, párrafo 4.43.  
 77. En relación al Programa de Reducción de carbono en el sector agropecuario, ¿de 
dónde provienen los recursos paragr aph ejecutar este programa?  
 
Los recursos provienen del Banco Nacional de Desarrollo Económico y Social (BNDES) y del Banco de Brasil. 
 
Página 26, párrafo 4.43.   78. En relación al Programa de Reducción de  carbono en el sector agropecuario, ¿cuál 
es el periodo programado de implementación? 
 El Programa ABC ha estado en vigor desde 2010 y no hay fecha límite paragraph su 
implementación. Sin embargo, se establecieron varias metas paragraph el período 2010-2020. 
 Página 28, párrafo 4.55. 
 
79. Sobre las inversiones en investigación y nuevas tecnologías paragraph mejorar la 
generación y distribución de energía, ¿cuá l es la Institución y/ o Agencia local 
responsable de dichas investigaciones?  
 
Research in new technologies to improve the generation and distribution is done in several institutions, including Federal Universities, such as the Federal University of Rio de Janeiro (Alberto 
Luiz Coimbra Institute – Graduate School and Research in Engineering – COPPE/UFRJ) and the 
University of São Paulo (IEE/USP). One of the le ading centers for innovation in the electricity 
generation and distribution is the "Centro de Pesq uisas de Energia Elétrica – CEPEL, which is part 
of Eletrobras. The Ministry of Mines and Energy (MME) and the National Electricity Agency (ANEEL) 
are also responsible for promoting research and development in this area.   Página 28, párrafo 4.55.  
 
80. Sobre las inversiones en investigación y nuevas tecnologías paragraph mejorar la 
generación y distribución de energía, ¿se cuenta con un monto estimado de lo que 
representa la inversión en este sentido? 
 The INOVA Plan for Energy is expected to invest around R$ 3 billion in the period 2013-2016 in 
three lines of research, including the development of "smart grids", Ultra-High Voltage 
transmission lines, and recharging stations for electric and hybrid vehicles.  Página 28, párrafo 4.56.  
 
81. ¿Cómo se llevó a cabo el proceso de ad aptación hasta el nuevo uso del etanol? ¿Se 
recibió cooperación internacional paragraph estos fines? 
 
Since 1975, Brazil has gradually increased the sh are of ethanol in the fuel mix. With the 
implementation of PROALCOOL, the country aimed at reducing its dependence on foreign oil. 
Financial and technical resources were mobilized to make the use of ethanol possible in light duty 
vehicles. The technology for adapting the vehicl es and engines running on E100 were developed 
by Brazil without the support of other countries nor international organizations. Subsequently, the U.S. developed the flex-fuel technology that was successfully adapted by Brazilian automotive 
industry in 2003.  WT/TPR/M/283/Add.1 
 
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NORWAY (1) 
1  Economic Environment 
Structural Issues and Policy Responses  
Paragraph 1.40 of the Secretariat report reads: "In a recent survey conducted by the 
World Economic Forum, tax regulations an d rates are cited among the three most 
problematic factors for doing business in Braz il. Not only are tax ra tes relatively high 
compared with other Latin American countries , but Brazil's tax system  is also especially 
burdensome given its comple xity and fragmentation." 
 1. Is the Brazilian government contempl ating steps to simplify the complicated 
taxation system?   
 The Central Bank of Brazil is addressing the main spreads components with special emphasis on 
four aspects: Firstly, Information System of Credit of Central Bank (SCR), which is an instrument 
for registration and query information about the loans, sureties and guarantees and credit limits granted by financial institutions to individuals and companies in the country – currently, the 
system records every customers operation starting from BRL1,000.00 (this system allow the 
financial system to identify and properly evaluate the risks). Secondly, the "Cadastro Positivo" ("Positive Credit Bureau"), an expanded credit bu reau that register the history of payments of 
credit operations, utilities' bills and other debts of households and enterprises – providing 
information that will help banks to identify good borrowers which in turn is expected to allow for 
further spread reductions. Thirdly, the New Bank ruptcy Law that emphasizes on judicial and 
extrajudicial recovery of businesses, thus facili tate the repayment of credit operations and the 
recover of assets, reducing the risks. Finally, in order to foster competition, Central Bank 
regulation improves the comparability of bank services and the portability of credit operations. This process has been benefited from progress on the de-indexation of Brazilian economy, 
especially on the elimination of a fixed minimum interest rate stipulated by legal regulation to 
savings account "caderneta de poupança".  3  Trade Policies And Practices By Measure 
Measures Directly Affect ing Imports Procedures 
 Paragraph 3.23 of the Secretariat report re ads: "The 2013 World Bank Doing Business 
survey reports that the overall time to impo rt merchandise into Brazil (17 days) has not 
changed over the past three years, after having decreased from 19 days in 2009 to 16 days in 2010. However, the corresponding cost per container was estimated to have 
almost doubled over 2009-13, reaching US§2,275. According to the authorities, the 
average time for customs clearance was 41 hours in 2011 and 53.5 hours in 2012; the increase is partly attributed to Brazil's cong ested sea ports, and strikes by public sector 
workers."  
 
2. Are any measures to reduce the overa ll time to import merchandise envisaged? 
 
Brazil is concerned about the issue of modernizat ion of its Customs system. Improvements to this 
are an ongoing exercise. Relating to reducing customs clearance time, the following initiatives can be highlighted: 
 
- In August 2012, a National Center for Customs Risk Management (CERAD) was set up 
to improve the risk management and targeting of transactions; 
- The "certified enterprise" scheme (Blue Line), under which companies benefit from 
streamlined customs procedures, is currently under revision with a view to encourage 
more companies to join it; 
- A new computerized customs and foreign trade system is under construction. The aim 
is to create a more efficient single foreign trade window, through which many 
documents, formalities and data items will be simplified; 
- By the end of 2013, non-intrusive inspection equipments, for containerized cargo 
inspection, will be in place at the major points of entry into Brazil; 
- Since May 2013, 24/7 working hours for customs clearance has also been adopted at 
8 major seaports. WT/TPR/M/283/Add.1 
 
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Furthermore, Brazilian customs has already started process-mapping, reviewing and re-
engineering its customs operations in order to improve import and export procedures in near 
future.  
Tariffs 
 The Secretariat's report point out that Brazil' s entire tariff schedule is bound. This is 
highly commendable. We do, however, regret that the simple average applied MFN tariff 
has been raised since Brazil's last trade policy review, from 11.5% in 2008 to 11.7% in 2012.   
Furthermore, paragraph 3.35 reads: "In aggregat e, the tariff continues to depict positive 
escalation: fully processed products attrac t the highest average applied rate, followed 
by semi-processed goods and raw materials. Th e pattern of escalation tends to act as a 
disincentive to improve international compet itiveness at the higher stages of value 
addition."   
3. Are any measures to reduce the simple average applied MFN tariff and the positive 
escalation on tariffs envisaged?  Brazil adopts a mechanism of tariff reduction for Capital Goods Goods and Telecommunications in 
which the rate of import duty is reduced to 14% or 16% to 2% for a period of up to two years. 
Moreover, there is also the possibility of tariff cuts for reasons of supply, provided for under 
Resolution MERCOSUR Common Market Group 08/08. 
 
Government Procurement   
Brazil has not signed the WTO Agre ement on Government Procurement 
(paragraph 3.239 of the Secretariat report).   4. Could Brazil please elaborate on their policy towards the GPA and why joining the 
GPA is not a current priority? 
 At the moment, Brazil has no plans to join the GPA. Brazil's position is grounded on Article III, 
Section 8, paragraph (a) of the GATT, which explicitly excludes government procurement from the 
obligations relating to national treatment.  
 
4  Trade Policies By Sector 
Energy Hydrocarbons  
In paragraph 4.88 of the Secretariat Repo rt it is explained that the Federal 
Government's participation in the voting ca pital of PETROBRAS must be at least 50% 
plus one share.  Although foreign and Brazilia n private investors retain the majority of 
PETROBRAS' capital stock, the Government  has increased its participation in the 
company since Brazil's last Review. In Se ptember 2010, PETROBRAS conducted a major 
public share offering, raising R$120 billion. In this process, the Brazilian Government 
increased its capital stock ownership from 40% to 48%. The Government also increased 
its voting shares to 64% in 2011, up from 55.7% in 2008.  5. Could Brazil please explain the rational e behind this increase in Government`s 
share of capital stock and voting shares? 
 
By means of Law No. 12.276, of June 30, 2010, the Union was authorized to grant Petroleo 
Brasileiro SA – Petrobras, the rights of explorat ion and production of oil, natural gas and other 
hydrocarbon fluids in areas located in the so-ca lled Pre-salt, with waiver of bidding proceedings, 
limited to the production of 5 billion barrels of oil equivalent (Mboe). Under the terms of 
Law 12.276, Petrobras would pay for that onerous concession primarily in government bonds, 
priced at market value. The Law also authorized  the Union to subscribe shares of Petrobras and 
pay them with government bonds. For the signing of onerous assignment, it was established that 
Petrobras would pay $ 74.8 billion in return for righ ts of exploration and production in the assigned 
area. WT/TPR/M/283/Add.1 
 
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Paragraph 4.99 reads: "Local-content commi tments have been among the selected 
criteria in all concession rounds carries ou t to date. (…) Concessionaries that fail to 
fulfill their local-content commitments are subjected to fines, which vary according to the shortfalls." 
 
6. What measures does the Brazilian gove rnment take to address the increased 
demand for qualified local labour, as a result of increased activity on Brazil's continental 
shelf? 
 The Program of Mobilization of the National Industry of Oil and Natural Gas (PROMINP), 
established by the Federal Government through Decree No. 4,925, of December 19, 2003, is 
coordinated by the Ministry of Mines and Energy (MME). 
 PROMINP is a program of governance of multiple initiatives, connected in order to enhance the 
development of national industry by articulating the government, the companies in oil and natural 
gas sector and the suppliers of goods and services. In this direction, we expect the opportunities 
generated by investments in the sector to be, as  much as possible, answered by the national 
market, generating wealth, employment and income in the country, besides attending the 
requirements of minimum local contents charge d in contracts of exploration and production. 
 In 2006, the "Plano Nacional de Qualificação Prof issional" (PNQP - National Plan for Professional 
Qualification for the Oil and Gas Industry) was established, which offers courses and scholarships 
for engineers and technicians to work in activities related to the oil and gas industrial chain. Since its inception up to 2012, more than 90 thousand students and professional have benefited from 
the Plan in 17 states of Brazil. 
NORWAY (2) Import Risk Analysis for shrimps 
 
In April 2011 a Norwegian seafood export compan y sent an application to the Ministry of 
Fisheries and Aquaculture to export shrimps from Norway to Brazil. In September 2011 the Ministry of Fisheries and Aquaculture de cided that it is necessary to conduct an 
Import risk analysis (IRA) for Norwegian sh rimps. Now, two years after the application 
was sent, the IRA process remains to be finalized. According to the SPS agreemet, risk analysis ought to be finalized with in a reasonable period of time.  
 
1. We would please ask Brazil to elaborate on 1) what is the current status of the 
ongoing IRA on Norwegian shrimps, and 2) what is the expected time frame for the 
completion of this IRA. 
 The matter is still under consideration. The completion of the Import Risk Analysis will be finished in due course. 
 
Registration form for labels and im ported products of animal origin 
 
Norway is a substantial exporter of farmed salmon. In order to facilitate for new trade, a 
mandatory approval procedure is conducte d by the Department of Inspection of 
Products Originated from Animals (DIPOA). Ne w products and labels are to be approved 
based on filling out the form REGISTRA TION FORM FOR LABELS AND IMPORTED 
PRODUCTS OF ANIMAL ORIGIN. Norwegian exporters are concerned about the time 
often consumed in relation to this approval  process, and furthermore that the mentioned 
form prescribe Portuguese or Spanish to be  the only accepted language options.  
 
2. We would kindly like Brazil to elabor ate on how these approval processes are 
conducted, and what measures are in place to grant a swift and predictable approval 
process. We would also like to know how Brazil considers the mentioned mandatory 
language instructions to be in line with WTO regulations.  WT/TPR/M/283/Add.1 
 
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The approval of the labeling of animal origin products is mandatory for national and foreign 
traders, without distinction, under the Rules of th e Industrial and Sanitary Inspection of Animal 
Products (RIISPOA) approved by Decree No. 30,691, 29 March 1952.  
During the labeling analysis the following data are taken into account: product ingredients, 
manufacturing process description, product identity, storage conditions, conservation forms and period, and other information necessary for food preparation. 
 
In that analysis it is also verified if the label contains denomination or description that conveys a false impression to consumers, or a wrong indication of product origin and quality.  
Amendments or new requirements are notified to the WTO. 
NORWAY (3) 1. Financial Markets 
 
The Secretariat's report points in section 4. 5.1 to the relatively large interest rate 
spreads in the banking sector, despite a de cline during the period under review.  
Paragraph 4.131 of the report refers to th e IMF and the World Bank Financial Sector 
Assessment Program (FSAP), which states that  "the financial system operates in a 
challenging environment … interest rate s are well above those in comparable 
countries." 
 
The Brazilian market is dominated by a few la rge banks and the interest rate spreads for 
both businesses and consumers are very high. Although BNDES provides very 
competitive rates for some new investments, there is no possibility to refinance for 
companies and deters investments. Also work ing capital and other sources of funding 
are very expensive for companies. 
 
1. What will the Brazilian government do to encourage more competition in its financial markets?   
The Central Bank of Brazil is addressing the main spreads components with special emphasis on 
four aspects: Firstly, Information System of Credit of Central Bank (SCR), which is an instrument for registration and query information about the loans, sureties and guarantees and credit limits 
granted by financial institutions to individuals and companies in the country – currently, the 
system records every customers operation starting from BRL1,000.00 (this system allow the financial system to identify and properly evaluate the risks). Secondly, the "Cadastro Positivo" 
("Positive Credit Bureau"), an expanded credit bu reau that register the history of payments of 
credit operations, utilities' bills and other debts of households and enterprises – providing information that will help banks to identify good borrowers which in turn is expected to allow for further spread reductions. Thirdly, the New Bank ruptcy Law that emphasizes on judicial and 
extrajudicial recovery of businesses, thus facili tate the repayment of credit operations and the 
recover of assets, reducing the risks. Finally, in order to foster competition, Central Bank regulation improves the comparability of bank services and the portability of credit operations. 
This process has been benefited from progress on the de-indexation of Brazilian economy, 
especially on the elimination of a fixed minimum interest rate stipulated by legal regulation to savings account "caderneta de poupança". 
 
2. Capital Regulations 
 Capital restrictions and lack of free float in  and out of the country causes added costs, 
Restrictions and delays on transfer  of money in and out of Brazil. 
 Brazil has a complex system for transferring  money from other countries. Transfers are 
further delayed by lack of information and kn owledge in local banks, which often causes 
delay in investments, payments and projects for several weeks.  WT/TPR/M/283/Add.1 
 
- 184 - 
 
2. Is the Brazilian government contemplat ing streamlining the transfer of money in 
and out of Brazil, in order to prevent de lays and costly exchange processes for 
companies trading or investing in Brazil? 
 
In recent years the Brazilian regulatory framew ork of the international capital and exchange 
market has been made more flexible continuously. It is important to highlight that a considerable liberalization had already occurred and that there are ongoing studies on the subject.  
 
Restrictions on operations with foreign currencies  The restrictions on only using BRL domestic ally puts a large exchange risk on many 
companies that are operating in sectors inte rnationally dominated by large currencies. 
Many companies, especially in the oil sector , are exposed to large USD risk, based on the 
fact that the commodity itse lf is traded in USD.  
 
The local requirements to operate in BRL expose these companies to large currency risks as well as high financing costs.  This redu ces the sectors' competitiveness compared to 
other countries where it is possible to oper ate in USD and obtain funding at very low 
rates without the need to hedge currency exposure.   3. Does the Brazilian government consider a liberalization of the requirements for 
companies to operate with foreign currencies, especially in industries based entirely on 
USD?  
In recent years the Brazilian regulatory framew ork of the international capital and exchange 
market has been made more flexible continuously. It is important to highlight that a considerable liberalization had already occurred and that there are ongoing studies on the subject. WT/TPR/M/283/Add.1 
 
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NEW ZEALAND 
WT/TPR/S/283 
 1  Economic Environment 
1.7.3 Foreign direct investment 
Page 30, paragraph 1.57  
Section 1.7 of the Secretariat Report, pg. 30 highlights the comparatively high levels of 
foreign direct investment (FDI) into Brazil as well as the relative  openness of Brazil's 
investment regime.  New Zealand applauds  this given the importance of foreign 
investment to increasing the competitivene ss of national industries including through 
the adoption of new technologies.  New Zeal and notes however that the report does not 
mention one restriction Brazil introduced during  this review period, being the limitations 
on the ownership of rural land by foreigners, introduced in 2010 through a 
reinterpretation by the executive of existing  legislation.  These limitations have had a 
significant impact on the plans of foreign companies, including from New Zealand, for 
investment in Brazil's ag ribusiness sector involving the purchase of land. 
 
1. Is consideration being given to estab lishing a new regime for approving FDI in 
rural land that differentiates more clearly between different types of investment in a way that productive investment supported by local industry is facilitated, while 
speculative acquisitions are su bjected to greater limitations? 
 Brazil does not prohibit the acquisition by foreign investors of rural or urban real estate. However, 
due to national security concerns, a number of regulations apply to the acquisition of rural land. 
Foreign natural persons with permanent residence in Brazil and foreign juridical persons authorized to operate in Brazil are able to acquire or lease rural land, subject to the limits set by the law.  
These restrictions apply fully to Brazilian companies with foreign equity control. 
 Foreigners may acquire or lease up to three indefinite exploitation units (MEIs) without seeking approval, except if the land is located in a Border Area. Acquisitions above three MEIs require 
approval by the National Institute of Colonization and Agrarian Reform – INCRA of the Ministry of 
Agricultural Development and may demand prior authorization by the Executive Secretariat of the National Defense Council – SE/CDN. 
 
For foreign natural persons, there is a limit in acquisition or lease of fifty units; for foreign juridical persons, there is a limit in acquisition or lease of one hundred units, both in a continuous or 
discontinuous area. Foreign companies can only acquire rural land for previously approved 
agricultural, cattle-raising, industrial or settlement projects, related to their Articles of Association. In any given municipality, foreign entities cannot own or lease more than one quarter of the total area and foreigners of the same nationality cannot own or lease more than ten% of the area. 
 
Foreign natural or juridical persons desiring to acquire shares in a Brazilian company which owns any real estate right over rural land located in the Border Area must request prior authorization 
from the National Defense Council – CDN. 
 3  Trade Policies And Practices By Measure 
 
3.2  Measures Directly Affecting Imports  WT/TPR/S/283, page 48, paragrap h 3.23; WT/TPR/G/283, page 20, 
paragraphs 4.11-4.13 
 Section 3.2 of the Secretariat Report, pg. 48 notes that according to the World Bank 
Doing Business survey, the overall time to im port merchandise into Brazil (17 days) has 
not changed over the past three years, while  the corresponding cost per container was 
estimated to have almost doubled over 2009-13.  Meanwhile Brazil's Government 
Report, page 20 notes that the percentage of  imports released by Customs in less than 
one day has increased, reaching 81.16% of  the total imports in 2012.  New Zealand 
exporters find that many consignments take considerably longer than one day to be WT/TPR/M/283/Add.1 
 
- 186 - 
 
cleared for importation, especially those a rriving at seaports.  New Zealand welcomes 
Brazil's plans to improve port infrastruc ture which should improve the situation 
considerably in the medium term, but ther e are wider issues of bureaucracy around 
import processes that could be addressed now. 
 
2. What if any plans does Brazil have to re duce the amount of paperwork involved in 
importing foreign products into Brazil, includ ing by shifting to electronic systems, as 
well as to increase the number of customs staff at ports processing documentation?   
 A new computerized customs and foreign trade system is under construction. The aim is to create a more efficient single foreign trade window, thro ugh which many documents, formalities and data 
items will be simplified. Since May 2013, 24/7 working hours for customs clearance has also been 
adopted at 8 major seaports. Several agencies are now studying the development of electronic systems.    
 
3.2.3.1  Applied MFN tariff Page 52, paragraphs 3.35 and 3.36 
 
Section 3.2 of the Secretariat Report, page 52  note the pattern of tariff escalation tends 
to act as a disincentive to improve internatio nal competitiveness at the higher stages of 
value addition, and that Brazil maintains a ra nge of temporary, unilateral exemptions to 
the MERCOSUR Common External Tariff (CET ). New Zealand welcomes the recent tariff 
reductions made through CET exemptions in or der to help lift industrial production and 
economic growth at this time, but would encourage Brazil to consider through 
MERCOSUR permanent reductions to tariffs, pa rticularly for fully pr ocessed products in 
order to improve its integration into glob al value chains and thereby the economy's 
competiveness.   
 
3. How long does Brazil anticipate it w ill maintain lists of exceptions to the 
MERCOSUR Common External Tariff?   
Both Decisions CMC 39/11 and 25/12 are related to specific actions in the tariff area arising 
from trade imbalances resulting from the international crisis. They are due to expire by 31 December 2014.  
 
4. Is the number of exceptions likely to remain at 200?  
Decision CMC 25/12 provides for the temporary establishment of tariff increases for 
200 products of the MERCOSUR Common Nomenclature and is due to expire by 31 December 2014.   
3.2.4  Other charges affecting imports (and 4.3 Manufacturing) 
 Pages 56 and 133-134, paragraph 3.46 and paragraphs 4.68–4.69 
 
Section 3.2 of the Secretariat Report, page  56 and Section 4.3, pages 133-134 states 
that while in principle the same rates of the IPI federal tax apply on domestically 
produced and imported goods, certain IPI re ductions or suspensions have been granted 
only to products originating in Brazil's preferential tradin g partners e.g. MERCOSUR and 
Mexico. New Zealand is concerned this may be  a discriminatory practice against foreign 
exporters.   
 
5. What is Brazil's justification for redu cing its IPI tax on products manufactured 
nationally and by preferential trading pa rtners, but not for products manufactured 
elsewhere?  
 These reductions were exceptional and temporary, and no longer apply. In the current program, 
companies importing products originated in all WTO countries are eligible to reductions and 
suspensions of the Tax on Industrial Products (IPI). Therefore, there is no discrimination 
related to origin of the products imported by  the companies which benefit from the program. 
 
6. How long will these IPI reductions remain in place? WT/TPR/M/283/Add.1 
 
- 187 - 
 
They are no longer in place. 
 7. Is Brazil considering including im ported goods in its IPI reductions? 
 
The current regime applies equally to goods originated in third countries. 
 3.2.7.2  Anti-dumping and countervailing measures 
 
Page 62, paragraph 3.68  Section 3.2 of the Secretariat Report, page  62 notes Brazil's use of anti-dumping 
generally showed an upward trend during the review period, with the number of new 
cases in 2012 as at 20 September exceeding the previous annual record, and Brazil now maintaining 83 measures in force.  New Zealand notes Brazil is one of the world's 
largest users of anti-dumping and that it ha s maintained measures for long periods on 
products that are no longer imported.   
8. Given the number of new anti-dumping  cases being opened, why is Brazil 
maintaining anti-dumping measures in force for over 10 years on products that may no 
longer be exported to Brazil?  
The Anti-Dumping Agreement provides for the possib ility of reviews of anti-dumping measures in 
force. Due to that, the Department of Trade Remedies (DECOM) carries out reviews of anti-dumping measures and, when it is verified that th e expiry of the duty would be likely to lead to 
continuation or recurrence of dumping and injury, the Department extends the period of imposition 
of the duty. Therefore, if during the review pr oceedings the likelihood of recurrence of dumping 
and injury is verified, measures can be extended even for products no longer being exported to 
Brazil. 
 3.4.1.2  Price controls  
Page 83, paragraphs 3.171, 3.172 and 3.178 
 Section 3.4 of the Secretariat Report, page  83 highlights petroleum as one of a number 
products that are subject to price controls.  According to the report, consumer prices of 
refined petroleum products are de facto fixe d by the state-contro lled PETROBRAS.  As 
well, New Zealand understands th at local prices for refined petroleum are below the cost 
of imported product and that this has affected the profitability of PETROBRAS.  The 
section also notes Brazil maintains a programm e for diesel oil support for its fisheries 
industry.  
9. Why does Brazil consider it needs to maintain price controls on petroleum when 
the country has a high level of  self-sufficiency in energy? 
 
In accordance with the Law No. 9,478, of August 6, 1997, since January 2002, the free pricing 
regime in the entire chain of production, distribution  and sale of fuel and oil products is applied in 
the country. Thus, there is no type of price-fixing, neither fixing minimum or maximum values, nor 
requirement of prior government authorization to ad justments in fuel prices. Therefore, agents are 
subject to market competition, forcing them to practice appropriate and fair prices for consumers.  10. How long does Brazil anticipate needing to maintain these price controls on 
petroleum when it is at the same time pursuing sustainable development policies 
including a greater use of renewable energy?   
The Brazilian petroleum price policy is designed in order to avoid the immediate transfer of 
international volatilities on oil and derivatives to the internal market. Petrobras works pursuing the convergence of internal market and international market prices in the medium-long term. This 
policy has been conducted since 2003 and allowed the Brazilian economy to have no abrupt 
variations on petroleum prices to the consumers that could be transferred to the economy if other policies were adopted.  WT/TPR/M/283/Add.1 
 
- 188 - 
 
According to the "International Fuel Prices 2010/201 1" report, elaborated by BMZ (Federal Ministry 
for Economic Cooperation and Development of Germany Government), Brazil petrol prices are among the Country Category 4 (Very High gaso line taxation) and among the most expensive 
gasoline prices in the world.  
 
The Brazilian Energy Plan indicates that there will be an expansion on biofuels/bioenergy 
production and use due to its competitiveness agai nst its competitor (gasoline). The energy policy 
design in Brazil will be shaped accordingly in orde r to give proper incentives to biofuels expansion. 
 11. What plans does Brazil have 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 Program of Subsidy for Diesel fuel aims to promote the equalization of the price of marine 
diesel fuel for the national fleet in relation to the price effectively practiced in selling to foreign 
vessels, allowing the increase of competitiveness of Brazilian fish in the international market and consequently the increase of the profitability of those workers involved in fishing activity.  The 
payment made under this programme encompasses the reimbursement of the difference between 
the price of maritime diesel in Brazil and intern ational markets, limited to 25% of the price of 
maritime diesel at the refinery level. The subsidy was created by the Law No. 9,445 of March 14, 1997, and currently is regulated by the Decree No. 7,077, of January 26, 2010, 
Instruction No. 18 of August 25, 2006, Normative Instruction No. 05 of March 14, 2007, 
Instruction No. 2 of January 27, 2010, and its Rectification of January 29, 2010. The Ministry of Fisheries and Aquaculture is responsible for the coordination of the Program and for the 
reimbursements of economic subsidy to the price of diesel fuel.  Sustainability analyses are 
conducted on a continuous basis in order to verify if all the persons or vessels engaged in fishing operations comply with general rules in Brazil, which include disciplines related to sustainability. 
 
3.4.2.1  Incentives – General characteristics  Page 86, paragraph 3.178 
 
Table 3.10 states that Brazil notified tw o fisheries support programmes to the WTO 
in 2009-2010: these were a programme for diesel support and a programme for 
financing the enlargement and mode rnisation of the fishing fleet. 
 12. Could Brazil elaborate on what the status  of these programmes is now – have they 
continued, and if so, how long does Brazil anti cipate these programmes will be in place?  
 The Brazilian Government has in place a system of  equalization for the price for maritime diesel 
used in the fisheries sector since 1997. This program has not an anticipated ending term. The 
main objective of this Program is to equalize the price of maritime diesel paid by fishing companies 
or fishermen to the price in the internationa l market. The payment made under this Program 
encompasses the reimbursement of the difference be tween the price of maritime diesel in Brazil 
and in the international market, limited to 25% of the price of maritime diesel at the refinery level.  
 The "National Program for Financing the Enlargement and Modernization of National Fishing Fleet – 
PROFROTA" was initially set to operate between 2004 and 2007. However, due to operational 
constraints, the Program has suffered from several implementation postponements, and it only became effective in 2006. Although being operational since that date, it has a reduced number of approved operations – only 13 ve ssels have benefitted from it. 
 
13. Could Brazil explain how it ensures that  these programmes do not contribute to 
overfishing or overcapacity? 
 
In order to benefit from the maritime diesel equalization scheme the fishing companies or fishermen must comply with administrative procedures set by regulation by the Ministry of 
Fisheries and Aquaculture, which take into account vessel control and other administrative issues. 
A sustainability analysis is made on a continuous basis in order to verify whether the persons or vessels engaged in fishing operations are complying with all legal and normative aspects in Brazil, including sustainability-related requirements. The Program in itself is not related to any increase in 
fishing effort for the beneficiary vessels. WT/TPR/M/283/Add.1 
 
- 189 - 
 
On the other hand, the "National Program for Financing the Enlargement and Modernization of 
National Fishing Fleet – PROFROTA" is a governmental program devoted to the construction, acquisition and improvements of fishing vessels. It only allows the increase in fishing effort for those species at the national jurisdiction that are non-exploited or underexploited or, for highly 
migratory species, for those that Brazil is far below any limit or fishing rights set by international 
conventions.  
PROFROTA includes the replacement of coastal and continental fleet fishing vessels with the 
objective to renew them, as well as the modernization, conversion, and adaptation of fishing vessels. For all these possibilities under this Progra m, environmental criteria of sustainability are 
taking into consideration, including the management of fishing effort. 
 
The Brazilian Government has in place a system of  equalization for the price for maritime diesel 
used in the fisheries sector since 1997. This program has not an ending term and, therefore, it is 
still in place. 
 The main objective of this Program is to equalize the price of maritime diesel paid by fishing 
companies or fishermen to the price in the international market. The payment made under this 
Program encompasses the reimbursement of the diffe rence between the price of maritime diesel in 
Brazil and international markets, limited to 25% of the price of maritime diesel at the refinery level.  
 
3.4.2.6  BNDES credit facilitation schemes (a nd 4.5.1  Banking, finance and insurance) 
 
Pages 97 and 147, paragraphs 3.219 and 3.221 and paragraph 4.128 
 According to Section 3.4 of the Secretariat Report, page 97 and Section 4.5, page 147 
support granted by the state development bank BNDES over 2008-12 totalled 
R$687 billion, and the BNDES maintains a numbe r of schemes that facilitate access to 
credit.  This has been a useful step toward s correcting the insufficient supply of medium 
and long-term private credit for small and medi um-size enterprises, identified in the last 
Review of Brazil.  However, the role of st ate banks in medium- and long-term financing 
remains very important, directly or through equalization initiatives, by which a portion 
of the interest rate charged to cred it users is taken up by the State. 
 
14. Why are private banks in Brazil not able to satisfy local demand for longer term 
credit?   
 
Brazil still has a relatively underdeveloped private long-term financial market compared to advanced economies. Private banks in Brazil focus on short-term loans. Aware of these challenges, 
the Government has been devising measures to foster long-term financing in Brazil, such as 
releasing compulsory deposits for long-term fi nancing and exempting banks from paying the 
financial transaction tax (IOF) when they provide credit from their own resources to finance infrastructure, capital goods, technology and innovation. 
 
15. It is possible that the BNDES' dominanc e of the market is crowding out private 
banks? 
 
BNDES stimulates the crowding-in of private banks in long-term financing. Furthermore, as noted in the answer to question 14, the Government searches to stimulate the supply of long-term 
financing. 
 
3.4.3  State-owned enterprises, privatization and state-trading  
Page 100, Table 3.20 
 Table 3.20 in the Secretariat Report, page 100 refers to the activities of a number of 
state-trading enterprises, including CONA B (Companhia Nacional de Abastecimento). 
Activities listed include managing agricultur al and supply policies, coordinating policies 
regarding buffer stocks of agricultural goods and importing food products under 
exceptional circumstances. 
 WT/TPR/M/283/Add.1 
 
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16. Has CONAB imported food products duri ng the reporting period, and under what 
circumstances were these imports made? We re these imports added to the strategic 
stock or distributed to meet basic needs?  
CONAB did not import any food product during the reporting period. 
 17. How does CONAB determine the size and composition of buffer stocks? What is the 
process of acquisition? How are these stocks  then distributed and what triggers such 
distribution?  Under the current agricultural policy, buffer stoc ks are composed by products purchased through 
the "Policy of Guaranteed Minimum Prices" (PGPM). Their size is negligible when compared to the 
Brazilian production of foodstuffs.   
According to the level (deficit) of production in certain areas of the country, CONAB may make 
equalization premiums payments to players who ag ree to convey the product in question to the 
regions needing it, at current market prices. Pr emiums are determined through public auctions, 
and the product may be supplied from either private or public stocks previously acquired under the 
PGPM.  3.4.4  Government Procurement 
 
Page 102, paragraphs 3.240, 3.244 and 3.246  
Section 3.4 of the Secretariat Report, page 102 refers to an OECD review that 
commended Brazil's progress in promot ing transparency and risk-management 
throughout the procurement cycle, but sugg ested efforts could be made to increase 
professionalism among public officials an d to develop performance indicators.  
Meanwhile a World Bank assessment noted i ssues concerning performance evaluation 
and appeal mechanisms.  New Zealand is cons cious during this review period Brazil has 
introduced national margins of preference up to 25% for domestic firms tendering for 
government procurement which makes impr ovements in processes all the more 
important.  
18. What is Brazil doing to implement the OECD and World Bank recommendations for 
improvement to its governme nt procurement processes? 
 
First, the Brazilian government continually st rives to improve transparency by publishing 
information related to tendering processes and contracts on government procurement official websites, such as Comprasnet – which is constantly updated to enhance transparency.  
 
Second, the Federal Government gives incentives to a relatively new modality of tendering, called 
Reverse Auctions (Pregão), performed electronically, positively evaluated for yielding more transparency, gains of efficiency as well as preventing anticompetitive practices such as collusion 
among the participants.  
 Finally, regarding the professionalism of Brazilian officials, the Federal Administration often 
promotes a range of specialization courses on tendering and government procurement as well as 
created performance indicators for its main procedures in order to evaluate the general situation of the government procurement processes in the country.  
19. How long will the national margins in pr eference remain in place for each sector? 
 In each Decree, there is a specific timeframe duri ng which the margin of preference  is to be 
implemented.  
 20. Does Brazil plan to include any more  sectors under its measure for national 
margins of preference? If so, which sectors? 
 The definition of sectors for which margins of preference apply is based on studies that take a number of criteria into account, including job and income generation, effect on tax revenues as 
well as technology development and innovation performed in Brazil. WT/TPR/M/283/Add.1 
 
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4  Trade Policies By Sector 
 4.2.3  Domestic support measures including rural credit and minimum price guarantees 
 
Pages 121–128, paragraphs 4.16–4.46 
 Section 4.2 of the Secretariat Report, page s 121–128 references an OECD contention 
that about two thirds of Braz il's Producer Support Equivalent support for agriculture is 
provided in "the most production and trade distorting forms" especially through price 
support measures and subsidized credit.  Ne w Zealand recognises that while  Brazil has 
become an agricultural powerhouse, the ma jority of its farms remains small family 
operations that are still in the process of mo dernisation.  However it is concerning if 
Government support for the industry is distorting production and trade.   
 
21. How long does Brazil intend to main tain price support measures for certain 
agricultural products?  
At present, Brazil considers that its agricultural regime is open and provides limited level of 
protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, except as a result of the DDA negotiations.  
22. Has Brazil considered other less distorti onary measures such as income support 
for farmers, and if so, why are these not implemented in Brazil?  
Although its agricultural regime is open, Brazil has been moving its policies further towards the 
adoption of less distortive measures, as the Brazilian figures regarding green box measures clearly show.  
 
23. Why are private banks, including internat ional banks that specialise in agricultural 
lending, not able to satisfy requirements for rural credit?  Are there elements of 
standard bank lending policies that family  farms in Brazil are not able to meet? 
 
Private banks – including international banks specialized in agricultural lending – do satisfy the requirements for rural credit in Brazil and can operate in this market if they want to. Brazilian rural 
credit is targeted to family farms, and, thro ugh the PROAGRO, rural insurance or other market 
instruments of financial protection, those producers are enabled to meet the bank lending policies, mostly designed to cope with climate and credit risk. 
 
4.5.3.2.1  Air transport services  Pages 161–163, paragraphs 4.210–4.212 
 
Section 4.5 of the Secretariat Report, page s 161–163 highlights Brazil's efforts to make 
Air Services Agreements more flexible and liberal which New Zealand applauds.  
New Zealand welcomes this including in the co ntext of its new bilateral ASA with Brazil.  
New Zealand is pleased Brazil is participatin g in the negotiations of the Multilateral 
Open Skies Agreement for member states of the Latin American Civil Aviation 
Commission, but notes Brazil's reservations regarding 7
th, 8th and 9th freedom rights.   
 24. Given the high demand for air services to, from and within Brazil, and associated 
high prices, why is Brazil reluctant to move  further with open skies agreements with 
bilateral and regional partners? 
 Brazil has significantly changed its policies related to international air services. Until 2007, the 
position adopted in air services agreements negotiations was mainly conservative. In July, 2007, 
the Brazilian Civil Aviation Council (CONAC) published a Resolution concerning civil aviation policy. This resolution aimed at promoting the expansion of international air transport through the 
negotiation of more liberalizing air services agreements. Since then, the Brazilian National Civil 
Aviation Agency (ANAC) has concluded open skie s agreements with most of the countries with 
which it has negotiated. Among the liberalizing positions adopted by Brazil, the following can be mentioned: defence of the criteria of principal place of business and regulatory control for the 
designation of airlines, free capacity, code shar e agreements with third countries airlines, free WT/TPR/M/283/Add.1 
 
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determination of tariffs, open route schedule and traffic rights up to sixth freedom. It is important 
to point out that cabotage rights (8th and 9th freedoms) are reserved by domestic law to Brazilian 
carriers. Regarding 7th freedom traffic rights, there is a lack of international literature necessary 
for the studies required to support this move in the Brazilian policy, as mentioned by the Brazilian 
delegation during the last consultation meeting Br azil/New Zealand. On that occasion the Brazilian 
delegation asked the New Zealand delegation to kindly provide any studies or documentation they might have on this subject. 
 
4.5.5  Professional services   Page 169, paragraph 4.249 
 
Section 4.5 of the Secretariat Report, page  169 notes that professionals with foreign 
qualifications must obtain revalidation of th eir degrees from a university recognised by 
the Ministry of Education, an d meet the requirements estab lished by law to practise in 
Brazil. According to the report, in practice , procedures for revalidation of foreign 
diplomas are complex and time consuming.  New Zealand welcomes the efforts of the 
National Education Council to speed up the process. 
 25. In light of Brazil's ambitions to lift leve ls of higher education, encourage greater 
international study, and attract foreign professionals in certain areas, is any 
consideration being given to allowing for auto matic recognition of foreign qualifications 
in specific disciplines and from specific countries?  
Under Brazilian legislation, public universities have the prerogative to carry out the revalidation of 
foreign degrees. Automatic revalidation conflicts with the university autonomy enshrined in Brazilian legislation, since it tends to suppress the universities' discretion over the process of 
recognition. 
 Brazil acknowledges the urgency in addressing the shortcomings of the current revalidation policy. 
However, automatic recognition is not considered to be an appropriate policy response. The 
Ministry of Education, along with the public uni versities, plans to redesign the revalidation 
procedures in order to accelerate the process, and to ensure that it is based on more reliable, transparent and equitable criteria.   
 
WT/TPR/G/283  
Section 4.1.2  Trade facilitation 
Page 20, paragraph 4.11  Section 4.1 of the Brazil Government Report, page 20 notes that since 2009, a calculator 
has been available on the Customs website th at allows importers and other stakeholders 
to calculate the value of all federal taxes le vied on imports of a given product and to 
consult information regarding licensing and trade remedy measures. New Zealand 
applauds this initiative but notes these tool s are apparently not available in English for 
its exporters to use.  
26. Would Brazil be able to make these tool s available on the English language version 
of its Customs website?  The Brazilian Customs is working to provide an English version of the calculator and other tools. WT/TPR/M/283/Add.1 
 
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PAKISTAN 
1. Brazil suffers from long-standing st ructural problems affecting Brazil's 
competitiveness, including: a complex and onerous tax system; infrastructure 
bottlenecks; highly regulated labour markets; high interest rates; and a high cost for 
industrial inputs. The Secretariat Report no tes that the Government has taken steps to 
address these and other structural issues under  the industrial plan Brasil Maior, but in 
its bid to support economic sectors sufferi ng from a loss of competitiveness, the 
Brazilian Government also took a number of trade restrictive measures during the 
review period, including temporary tariff in creases, alterations to procurement policy 
and introduction of preferential margins of between 8% and 25% for a limited number 
of domestic goods and services, mainly text iles and clothing, certain pharmaceuticals, 
and some transport equipment.  
 How does Brazil plan to limit the trade re strictive impact of the measures noted? 
 
The Secretariat report is focused on trade polic y aspects and provides a very general overview, 
drawing upon the analysis of other sources about the economic environment. Thus, Brazil does not 
share completely the assessment on the report that  lists and qualifies some structural problems 
supposedly affecting the Brazilian economy's competitiveness.   All the measures contribute to the fulfillment of the Brazilian Government's development goals in 
response to the crises and they are WTO consistent .  The broad, horizontal objectives pursued by 
such programs include promoting technologica l development and innovation, improving the 
competitiveness of the Brazilian industry, incr easing energy efficiency and diminishing the 
environmental impact of the economy as a whol e, expanding and modernizing infrastructure, 
promoting consumer protection, supporting smal l and medium-sized enterprises and reducing 
socio-economic and regional disparities. Thes e measures are being constantly reassessed in 
relation to their effects. 
 Specifically regarding public procurement, the intention was to use purchasing power of the State to foster economies of scale of industrial plants located in Brazil, regardless of the origin of their 
capital.  
 The decrees of preferential margins are due to end in five years from their edition. Besides, the 
policy is subject to recurring reviews. The maximum applicable margin is 25%. It is important to 
notice that Brasil is not part of the GPA.  
2. Brazil has signed 14 bilateral invest ment agreements and negotiated two 
MERCOSUR protocols on investment: the Bu enos Aires Protocol (e xtra-MERCOSUR), and 
the Colonia Protocol (intra-MERCOSUR). Ho wever, none of these agreements or 
protocols is in force, either because the Executive did not submit the agreement to 
Congress (e.g. Colonia Protocol) or because it  withdrew the agreement before Congress 
had voted (e.g. Buenos Aires Protocol and th e BIT with France). The Secretariat Report 
explains reasons for their not being in force.  
 
Could Brazil explain reasons for their non-su bmission to Congress or their withdrawal 
before Congress had voted? 
 
Brazil has signed 14 bilateral investment agreemen ts (BITs). Brazil has negotiated two MERCOSUR 
protocols on investment: the Buenos Aires Protocol (extra-MERCOSUR), and the Colonia Protocol (intra-MERCOSUR). However, none of these agreements  or protocols is in force, either because the 
Executive did not submit the agreement to Congress (e.g. Colonia Protocol) or because it withdrew 
the agreement before Congress had voted (e.g. Buen os Aires Protocol and the BIT with France). 
This reflects the concerns held in Congress about the constitutionality of the agreements with 
respect to issues such as upholding the principle of full equality for investors under the law. The 
authorities note that concerns raised by Congress with respect to the BITs signed by Brazil included: (i) the preferential treatment accorded to foreign investors as a result of the BITs 
dispute settlement mechanisms; (ii) the broad definition of investment contained in the BITs; 
(iii) the requirement in the BITs for prompt pa yment of expropriations in freely convertible 
currencies, which was considered incompatible with the Federal Constitution, which specifies that WT/TPR/M/283/Add.1 
 
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expropriations for reasons of agrarian reform ar e to be compensated by Agrarian Reform Bonds, 
for example; and (iv) the ambiguity caused by the concept of indirect expropriation. 
 3. Brazil did not ratify the Fourth Protoc ol on telecommunications while procedures 
to ratify fully the Fifth Protocol on fi nancial services are also still pending.  
 In what time frame Brazil envisages ratification of the Fifth Protocol? 
 
Brazil is currently undertaking the domestic procedures for the acceptance of the V Protocol. Notwithstanding, it is not possible to foresee the time-frame for their conclusion.  
4. The Secretariat Report states that the importation of any product subject to SPS 
controls requires a non-automatic licence.   
Could Brazil explain why imports of all produc ts subject to SPS requirements are subject 
to non-automatic licensing only?  
Importing operations are registered and controlled by the "Sistema de Comércio Exterior" 
(SISCOMEX). The controls established by MAPA are performed through non automatic licensing. 
The procedures are continually under improvement.  
5. The Secretariat Report notes that as at  August 2012, Brazil had issued no updates 
or new notifications under the WTO provisions. In the context of the Working Party on State Trading Enterprises, Brazil received a question from a WTO Member concerning its 
overdue notifications, but had not yet re sponded as at the time of writing.  
 Could Brazil explain reasons for inability to make the subject notifications? 
 
A new notification updating the previous one is under consideration by the Brazilian government.  6. The Secretariat Report points out that  Brazil maintains several domestic support 
measures, including subsidized credit lines and price support mechanisms, adding that 
disbursements with official rural credit cont inued to rise. It is also noted that the 
authorities consider this re quirement necessary to correct a market failure; however, 
pre-assigning credit may be introducing othe r distortions in the overall allocation of 
credit in the Brazilian economy.   
Brazil is requested to explain how it ensures th at this does not lead to distortions in the 
overall availability in Brazil's credit market?  These measures are being constantly reassessed in relation to their effects. Rather than causing 
market distortions, they address market failures that may constitute serious obstacles to the 
attainment of Brazil's development goals.  
7. The OECD contends that about two thirds of Brazil's PSE is provided in "the most 
production and trade distorting forms", espe cially through price support measures and 
subsidized credit.  
 
Does Brazil agree with this assessment, and if so, are any steps under consideration to 
correct this distortion?  
At present, Brazil considers that its agricultural regime is open and provides limited level of 
protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, except as a result of the DDA negotiations. Although its agricultural regime is open, Brazil has 
been moving its policies further towards the adopti on of less distortive measures, as the Brazilian 
figures regarding green box measures clearly show.  
8. Brazil's tariff continues to depict positive escalation that tends to act as a 
disincentive to improve international compet itiveness at the higher stages of value 
addition.   
Is Brazil considering reducing the persistence of tariff escalation? WT/TPR/M/283/Add.1 
 
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Pakistan's opinions are under consideration by the Brazilian government. 
 9. The 2013 World Bank Doing Business survey reports that the overall time to import merchandise into Brazil (17 days) has not ch anged over the past three years, after 
having decreased from 19 days in 2009 to 16 days in 2010. However, the corresponding 
cost per container was estimated to have  almost doubled over 2009-13, reaching 
$2,275.  
 
Has Brazil initiated any measures to br ing down the steep increase in cost? 
 According to the World Bank Logistics Performance Index (LPI), the cost per container dry bulk 20' 
in Brazil – including all port taxes, commissions and charges – has been reduced from 
USD 1,570.00/container, in 2010, to USD 274.00/container, in 2012.  
Brazil is pursuing various policies in order to enhance port logistics, such as Programa Porto 24h 
(to extend working hours by public agents at port  facilities), Porto Sem Papel ("paperless port") 
and Carga Inteligente (both programs aimed to re duce bureaucracy through eletronic procedures). 
Programa Porto 24h has already been adopted in eight public ports (Santos, Paranaguá, Rio de 
Janeiro, Rio Grande, Itajaí, Suape, Vitória and Fortaleza). 
 With the enactment of Law No. 12.815/2013 and Decree No. 7.861/2012, the newly established 
National Council of Ports (CONAPORTOS) will promote the reduction of bureaucratic procedures, in 
order to diminish delays associated with customs clearance and ship inspections, as well as to improve the logistics for cargo handling, ship berthi ng and distribution control of goods to trucks 
and trains. 
 Furthermore, the new regulatory framework will help to overturn some barriers and facilitate port 
investments. For instance, private terminals will no longer be obliged to handle only their own 
private cargos. They will be able to handle others cargoes as well. Competition must increase and a reduction in the cost per container is expected, as well as an increase in services supply and quality. 
 
10. Brazil is a significant user of trade re medies, particularly anti-dumping measures, 
and there are indications that these remedies may play an increasingly important role in 
its future trade policy, adding that the number of Brazil's AD investigations and 
measures in force has been increasing sinc e the last review period. Brazil has also 
become somewhat more active in initiating  countervail (CV) investigations, and in 2012 
initiated its first safeguar d investigation since 2008.  
 Has Brazil plans to scale back the stat ed increase in contingency measures? 
 
Although the Department of Trade Remedies (DECOM) has the prerogative of initiating trade 
defense proceedings ex officio, all of the investigations carried out by DECOM were initiated through petitions submitted by the domestic industry. Therefore, the increase or decrease in 
contingency measures does not depend on DECOM.  In addition, it must be stated that, even 
though there has been an increase in the number of investigators and petitions in the last years, the technical rigor of DECOM's work remained and shall remain the same, in a way 
that, on average, about 50% of the petitions filed do not result in investigations and, out of 
all investigations actually initiated by that Department, about 40% do not result in the imposition of defi nitive measures. 
 WT/TPR/M/283/Add.1 
 
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PARAGUAY 
WT/TPR/G/283  
 Con relación a los párrafos 3.12., 3.25. y 5.12., de las páginas 15, 18 y 33, respectivamente: 
 
1. El Protocolo de Ouro Preto, en su Artí culo 37, establece que las Decisiones de los 
órganos del MERCOSUR serán tomadas por co nsenso y con la presencia de todos los 
Estados Partes. ¿Cómo justifica el Brasil la ap robación de decisiones de los órganos del 
MERCOSUR sin la presencia del Paraguay? ¿Qué validez jurídica atribuye el Brasil a las 
decisiones de los órganos del MERCOSUR ad optadas sin la concurrencia del Paraguay? 
 
This question refers to an internal issue relate d to MERCOSUR and falls outside the scope of the 
Trade Policy Review (TPR). Nevertheless, the following clarifications are in order:  
Paraguay was suspended from MERCOSUR bodies and deliberations, following the rupture of the 
democratic order in that country, through a unanimous decision taken at the MERCOSUR Summit in Mendoza, Argentina, in June 29, based on ar ticle 5 of the Ushuaia Protocol on Democratic 
Commitment, with all legal implications stemming thereof. 
 This decision – duly approved by the Council of the Common Market (CMC) – was unsuccessfully 
challenged by Paraguay at the Permanent Tribunal of Revision of MERCOSUR.  
 
This answer also applies to questions 2 to 4.   
2. ¿Cómo justifica el Brasil la  adhesión de la República Bolivariana de Venezuela al 
MERCOSUR, teniendo en cuenta que el Artícu lo 20 in fine del Tratado de Asunción, que 
crea el organismo, dispone que la aprobación de las solicitudes de adhesión será objeto 
de decisión unánime de los Estados Partes  y que la República del Paraguay no ha 
prestado su consentimiento paragraph el efecto?  This question refers to an internal issue relate d to MERCOSUR and falls outside the scope of the 
Trade Policy Review (TPR). Nevertheless, the following clarifications are in order: 
 Paraguay was suspended from MERCOSUR bodies and deliberations, following the rupture of the 
democratic order in that country, through a Decision taken at the MERCOSUR summit in Mendoza, 
Argentina, in June 29, based on article 5 of the Ushuaia Protocol on Democratic Commitment. This decision was unsuccessfully challenged by Paraguay at the Permanent Tribunal of Revision of 
MERCOSUR. A similar unanimous decision was taken by the totality of South American countries at 
UNASUR.  During the suspension of Paraguay, legislation appr oved by MERCOSUR Members in full exercise of 
their capacities is fully valid.  
 3. ¿Cómo el Brasil explica la supuesta entr ada en vigor del Protocolo de Adhesión de 
Venezuela al MERCOSUR, y la consecuente ilegal incorporación de Venezuela como 
Estado Parte de la organización, teniendo en  cuenta que el Artículo 12 del mencionado 
Protocolo establece que entrará en vigencia el  trigésimo día contado a partir de la fecha 
de depósito del quinto instrumento de ratifi cación, y que este procedimiento no se ha 
cumplido, dado que el Congreso de la Re pública del Paraguay ha rechazado dicho 
Protocolo?  
This question refers to an internal issue relate d to MERCOSUR and falls outside the scope of the 
Trade Policy Review (TPR). Nevertheless, the following clarifications are in order:  
Paraguay was suspended from MERCOSUR bodies and deliberations, following the rupture of the 
democratic order in that country, through a Decision taken at the MERCOSUR summit in Mendoza, Argentina, in June 29, based on article 5 of the Ushuaia Protocol on Democratic Commitment. This 
decision was unsuccessfully challenged by Paraguay at the Permanent Tribunal of Revision of 
MERCOSUR. A similar unanimous decision was taken by the totality of South American countries at UNASUR. WT/TPR/M/283/Add.1 
 
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During the suspension of Paraguay, legislation appr oved by MERCOSUR Members in full exercise of 
their capacities is fully valid.   4. Teniendo en cuenta que el artículo 12, párrafo segundo, del Protocolo de Adhesión 
de Venezuela al MERCOSUR dispone que la Re pública del Paraguay será depositaria del 
Protocolo y de los instrumentos de su ratificaci ón y notificará a las Partes la fecha de los 
depósitos de esos instrumentos. ¿Cómo el Br asil justifica que el Protocolo de Adhesión 
de Venezuela al MERCOSUR haya entrado en vigor sin haberse efectuado el depósito de 
todos los instrumentos de ratificación necesa rios paragraph el efecto ante la República 
del Paraguay?  
This question refers to an internal issue relate d to MERCOSUR and falls outside the scope of the 
Trade Policy Review (TPR). Nevertheless, the following clarifications are in order:  
Paraguay was suspended from MERCOSUR bodies and deliberations, following the rupture of the 
democratic order in that country, through a Decision taken at the MERCOSUR summit in Mendoza, Argentina, in June 29, based on article 5 of the Ushuaia Protocol on Democratic Commitment. This 
decision was unsuccessfully challenged by Paraguay at the Permanent Tribunal of Revision of 
MERCOSUR. A similar unanimous decision was taken by the totality of South American countries at UNASUR.  
During the suspension of Paraguay, legislation appr oved by MERCOSUR Members in full exercise of 
their capacities is fully valid.  WT/TPR/M/283/Add.1 
 
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PERU (1) 
Del examen de las políticas comerciales de Brasil se presentan las siguientes 
interrogantes:  
1. ¿Cómo la Administración aduanera de Br asil determina el valor en aduana de las 
mercancías usadas o deterioradas.  
Así como paragraph las mercancías nuevas, en Brasil, el valor en aduana de mercancías usadas o 
deterioradas es determinado según las reglas del Acuerdo Relativo a la Aplicación del Artículo VII del GATT (Acuerdo de Valoración en Aduana de la OMC). Consecuentemente, en principio, el valor en aduana de las mercancías será el valor de transacción, ajustado de conformidad con lo 
dispuesto en el artículo 8 del Acuerdo. 
 2. ¿La Administración aduanera de Brasil ut iliza un mecanismo de control del valor de 
las mercancías importadas a fin de detectar  y evitar la presentación de fraudes en 
valoración como la subvaluación?  
La gestión de riesgo aplicada al control aduanero en relación con la importación es basada en 
criterios de selectividad, tales como, entre otros, el valor en aduana declarado paragraph las mercancías. Según corresponda, el control de va lor puede ser hecho durante el despacho de 
aduana o en procedimiento de auditoría posterior. 
 
3. ¿La Administración aduanera de Br asil utiliza un procedimiento simplificado 
paragraph determinar el valor en aduana de las mercancías ingresadas como envíos 
postales, menaje de casa o equipaje acompañado? 
 En Brasil, además del régimen común de tributac ión, basado en el Arancel Común del MERCOSUR 
y en el Acuerdo de Valoración en Aduana de la OM C, opcionalmente el importador puede utilizar un 
régimen de tributación simplificado, aplicable a los envíos postales y a los envíos urgentes (express shipments), o un régimen de tributación especial, aplicable a los equipajes.  
Paragraph los envíos postales, al igual que en el régimen común importación, en principio el valor 
en aduana es aquel declarado por el importador, sin embargo, la tributación es diferenciada, se les aplica una tarifa plana de un 60%. 
 
En el régimen de tributación simplificada no se lleva en cuenta la clasificación arancelaria de las mercancías en su tributación y se sustituye todos los demás impuestos que gravan la importación 
común por una tarifa plana de importación simplificada. 
 4. Al aplicar el numeral 2 de la Decisión 4.1 del Comité de Valoración en Aduana de la OMC referida a la valoración de soportes informáticos con software paragraph equipos 
de proceso de datos, nos gustaría conocer el tratamiento que se dan al valor de las 
licencias por el uso del software paragraph efectos de la determinación del valor en 
aduana. 
 
La Decisión 4.1 del Comité de Valoración en Aduana de la OMC fue incorporada a legislación nacional brasileña en 1998. De conformidad a lo dispuesto en el numeral 2 de la Decisión, 
paragraph determinar el valor en Aduana de los soportes informáticos importados que lleven datos 
o instrucciones, se toma en consideración únicamente el costo o valor del soporte informático propiamente dicho.  Por consiguiente, el valor en Aduana no comprende el costo del valor de los datos o instrucciones, siempre que éste se distin ga del costo o valor del soporte informático y 
tampoco comprende el valor de las licencias por el uso del software. 
 5. Según el punto 3.18, las declaraciones de importación se tramitan por cuatro 
canales: verde, amarillo, rojo y gris, en ese sentido, las preguntas sobre este punto son:  
 
- ¿Cuál es el tiempo promedio que de mora el canal rojo y el canal gris? 
 
En 2012, el tiempo promedio de despacho en el canal rojo fue de 9,59 días. Paragraph el canal 
gris, el tiempo promedio fue 57,10 días. Sin embarg o, es necesario recordar que el canal gris se WT/TPR/M/283/Add.1 
 
- 199 - 
 
aplica a casos muy específicos de sospecha de fraude cuya penalidad aplicable es el decomiso de 
la mercancía, razón por la cual la mercancía es retenida y el despacho interrumpido hasta el final de la investigación.  
- ¿En el caso del canal gris, son distin tos los funcionarios que realizan la 
revisión documentaria física e inspección? 
 
En principio sí, pero no hay una regla fija, una vez que eso depende del punto de entrada en el 
país, en especial depende del volumen de operaciones procesadas y de funcionarios aduaneros en la oficina de despacho.  
- ¿Cuál es la principal incidencia encontrada en el canal gris y en cuánto ha 
contribuido al hallazgo de incidencias? 
 
El canal gris es aplicable a los casos de sospecha de fraude cuya penalidad es el decomiso de la 
mercancía. Las principales incidencias son: fraude de valor u origen, piratería, contrafacción y contrabando. 
 
6. En el punto 3.23 relacionado al inform e Doing Business del Banco Mundial de 2013 
por el cual el tiempo total que se necesita paragraph importar mercancías en el Brasil 
(17 días) no ha cambiado en los últimos tres  años tras haber disminuido de 19 días en 
el 2009 a 16 en el 2010, ¿el tiempo estimado del despacho aduanero es calculado desde 
el pedimento de importación por parte del ag ente o apoderado aduanal hasta el levante 
(o autorización de aduanas paragraph di sposición de la mercancía por parte del 
importador)? O ¿qué otros momentos está n considerando paragraph estimar dicho 
tiempo en el despacho aduanero de importación?  
Las informaciones respecto a los tiempos promedio de despacho se refieren al tiempo necesario 
desde el registro de la declaración de importación hasta su levante. Por ahora, los tiempos necesarios paragraph controles sanitarios, licencias, descarga, almacenamiento y todo lo más hecho anteriormente al control ejercido por la aduana no está disponible. 
 
7. En relación al uso por parte de la Ad uana de Brasil de herramientas tecnológicas 
no intrusivas paragraph el cont rol del ingreso de me rcancías a su país por las diferentes 
vías de ingreso (terrestre, aéreo, maríti mo u otras), ¿cuáles son las principales 
herramientas usadas?, ¿cuáles son los principales hallazgos, utilizando dichas herramientas? 
 
Actualmente Brasil utiliza equipos o escáner de rayos X paragraph facilitar la inspección no intrusiva de equipajes y remesas postales y expr esas (courier) y la detección de infracciones 
aduaneras. Estos aparatos están disponibles en prácticamente todos los aeropuertos del país. 
 
En lo que respecta las cargas en contenedor, Brasil ya utiliza escáneres de rayos X en algunos de los principales puntos de entrada en el país, pero su uso es todavía limitado a la inspección de 
containeres declarados como vacíos detección de mercancía oculta, estupefacientes e armas. 
 El uso regular de este tipo de tecnología paragraph soporte o sustitución de la actividad de 
reconocimiento físico de cargas seleccionadas durante el despacho de aduanas, como medida de 
facilitación comercial y perfeccionamiento de esta actividad, está previsto paragraph ser implementado en 2014. Esto en razón de la necesidad de esa inspección ser precedida de un estudio de riesgos eficiente y escáneres más modernos. 
 
La legislación actual determina que hasta el final del 2013 todos los recintos aduaneros con movimiento de cargas superior al equivalente a 100 contenedores/día deberá disponer de 
escáneres paragraph inspección no invasiva, los cuales serán utilizados principalmente paragraph 
agilizar y mejorar el flujo del despacho.   
8. ¿Cuáles son las medidas de control para graph la protección en frontera de los 
Derechos de Propiedad Intelectual que aplica la Aduana de Brasil? 
 Brazil has an effective system in place for the en forcement of intellectual property rights. Border 
measures are available to right holders for the enforcement of copyrights and trademark rights, WT/TPR/M/283/Add.1 
 
- 200 - 
 
with the possibility of criminal and civil sanctions, including fines, against acts of infringements, in 
full compliance with the TRIPS Agreement. More details are available under Section 3.4.54 and paragraphs 3.304 to 3.311 of the Secretariat's Report.  
9. ¿Cómo la implementación del canal gris puede mejorar la operatividad y por tanto 
disminuir el riesgo de la comisión de ilícit os como el Tráfico Ilícito de Estupefaciente, 
Delitos contra el Patrimonio Cultural e Hist órico, Propiedad Intele ctual, entre otros? 
 
Una vez que el canal gris visa identificar y comprobar las infracciones cuya penalidad es el decomiso de la mercancía, Brasil entiende que un buen análisis de riesgo paragraph identificar 
operaciones con esas infracciones ya en el momento del despacho aduanero y decomisar las 
mercancías es la manera más eficaz de disuadir los infractores y reducir sus recursos paragraph 
financiar esos ilícitos.   
10. En el marco de la impugnación de act os administrativos por medios electrónicos, lo 
cual ha traído la disminución de nulidades, ¿cómo se afronta el tema de recepciones de 
las notificaciones y cómo se regula el cómputo de plazos? 
 
Las apelaciones se tramitan de conformidad con los procedimientos establecidos en el Decreto No. 70.235, del 6 de marzo de 1972. Aún que sea opcional el uso del sistema informático que controla los recursos administrativos (E-processo), todos los documentos presentados en medio 
físico son digitalizados y los trámites se dan por el sistema. Si el apelante tiene un certificado de 
firma digital esto se lo permite, entre otros, consultar todos los actos en el proceso y los documentos agregados, recibir comunicaciones en formato electrónico, añadir otras informaciones 
y documentos, pero los requisitos, plazos y procedimientos continúan reglados por el Decreto, es 
decir, el sistema no hace, por ejemplo, alertas de vencimiento de plazo.  
11. ¿El programa Reintegra de Brasil ha de tectado algún tipo de situación de malas 
prácticas a fin de obtener un beneficio indebi do y qué ha hecho el Gobierno paragraph 
neutralizar estas malas prácticas?  
El programa está vigente hace poco más de un año e informaciones al respecto todavía no están 
disponibles.  
Es importante destacar que el cálculo debe ser hecho con base en el volumen de las exportaciones 
de la empresa beneficiaria. Como la administración tributaria y aduanera de Brasil tiene el control sobre todas las exportaciones, no es esperado que una empresa intente alguna mala práctica al 
respecto. 
 12. ¿En Brasil pueden exportar libremente cu alquier tipo de especies de la fauna 
silvestre como por ejemplo las mariposas o es  que existen restricciones y prohibiciones? 
 
Kindly refer to the Secretary Report page 70 para graph 3.111. Wild animal exports are subject to 
authorization from IBAMA on grounds on native fauna protection. The list of products subject to 
prior authorization for exports comprises more than  a 1000 tariff headings at the HS 8 digit level 
and may be found at  "www.desenvolvimento/gov/br/arquivos/dwnl_1228234625.xls".  
 
13. Indican que la legislación brasileña en el tema de Propiedad Intelectual no ha 
sufrido modificación en los últimos tres añ os ¿no se han presentado nuevas modalidades 
de ilícitos en este tema, resultaron a la fecha efectivas las mismas?¿las medidas en 
frontera adoptadas han disminuido la re currencia en estas figuras delictivas que 
vulneran los Derechos de Propiedad Intelect ual? ¿En Brasil, existe un ente técnico, 
administrativo, competente en este tema o es  solamente El Consejo Nacional contra la 
Piratería, la Aduana y el Órgano Juri sdiccional, quienes ven este tema?  
 
As mentioned by the Secretariat in paragraph 3.266 of its Report, there have been no substantial modifications on the Brazilian legal framework si nce 2009. With regard to border measures, the 
growing number of arrests and apprehensions illustr ate the effectiveness of the activities of the 
Brazilian Government in the matter. The enforcement of IPRs is executed by the respective public authorities (e.g., Federal Police, Customs, Federal Highway Police, etc.) in accordance with their 
legal powers. CNCP's objective is to coordinate and monitor the implementation of the National 
Plan to Combat Piracy and Other Crimes Against Intellectual Property Rights, which includes a WT/TPR/M/283/Add.1 
 
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number of actions to fight IPR violations, such as repressive activities, as well as educational and 
economic activities. The elaboration of the National Plan has the participation of both Government and private sector institutions.  
14. Una de las medidas adoptadas paragraph mejorar la lucha contra las 
importaciones fraudulentas ha consistido en la  transformación de la división de gestión 
de riesgos de la RFB en el Centro Nacional  de Gestión de Riesgos Aduaneros (CERAD), un 
órgano interministerial que empezó a func ionar en agosto de 2012. Pese a que la 
medida adoptada es paragraph las import aciones fraudulentas, ¿el CERAD también 
podría ser el mecanismo por el cual se gestio ne el riesgo aduanero por efecto de control 
de las agencias de gobierno que autoricen mercancías restringidas? 
 
En realidad, es necesario corregir el párrafo 3.19 del informe del Secretariado de la OMC sobre Brasil, una vez que el CERAD no es un órgano interministerial, sino parte de la Aduana de Brasil. 
Una de sus principales funciones es coordinar la actividad de gestión de riego aduanero. En ese 
sentido, el CERAD trabaja también con informaciones de otras agencias de gobierno y hace trabajos conjuntos con ellos con miras a identificar infracciones a los controles ejercidos sobre las 
mercancías restringidas. 
 15. Se señala que por medio del SICOMEX se pueden realizar los trámites de licencia 
de mercancías, ¿este sistema (SISCOMEX) form a parte de la Administración Aduanera o 
a alguna otra agencia de gobierno de Brasil? 
 The Integrated System of Foreign Trade (SISCOMEX) was created by Decree No. 660 of 
25 September 1992. According to this Decree, the Secretariat of Federal Revenue of Brazil (RFB), 
the Secretariat of Foreign Trade (SECEX) and Brazil´s Central Bank are responsible for the Systems administration. Therefore, SISCOMEX is a governmental system managed by three 
agencies, including Customs.  
 16. En cuanto a las exportaciones señalan que se lleva un registro de exportaciones 
(RE) o registro de créditos (RC) con excepc ión a las exportaciones simplificadas hasta 
50.000 dólares EEUU, ¿qué tipo de beneficio re presenta al estado mantener este tipo de 
registro, y que tanta aceptación tiene por parte de los exportadores toda vez que 
pudiera representarles costos y tramite adicionales? 
 
All export goods must be registered in the export registry (RE) prior to submission of the export 
declaration. The RE is mostly used for statistical purposes and for export autorizations when 
needed. The RE is the base for the submission of customs export declarations. Therefore, there are 
no repetition of information submitted and no extra costs and requirements involved.   17. Conforme al régimen especial de adquis ición de bienes de capital (RECAP), una 
empresa debe haber dedicado a la exportación al menos un 50% de los ingresos brutos 
derivados de las ventas de bienes y servic ios en los años civiles que precedan a su 
solicitud de acogerse al Régimen, y co mprometerse a cumplir ese requisito de 
exportación paragraph los dos años civi les siguientes, ¿cómo han tomado los 
exportadores la meta fijada del 50% cuando gran parte de los países están tratando de 
salir de la recesión mundial desde el 2009 lo que ha motivado a reducir sus compras a 
nivel mundial y que impacto ha tenido en los exportadores?   
 RECAP is simply an instrument to help enterprises acquire taxes they have overpayed. The Brazilian non-cumulative taxation system is based on a credit mechanism. This regime allows the 
taxpayer to calculate and deduct the respective tax credits relating to goods (including capital 
goods) and services used as input on the provisio n of services or production of goods for further 
sale.  
 
By this system, however, companies that export a significant amount of their production often have insufficient tax liabilities or debits to offset their tax credits. As a result, many companies 
accumulate credits throughout the fiscal year. 
 RECAP is only target to simplify the use of the mentioned credits to which companies are already entitled.  
 WT/TPR/M/283/Add.1 
 
- 202 - 
 
Also on competition, RECAP is designed to keep  tax neutrality. RECAP therefore suspends taxes, 
which, in turn, do not generate credit to be used along the value chain.   Preguntas sobre el Marco Institucional y Normativo del Comercio Internacional 
(WT/TPR/G/283) 
 4.1.  Cuestiones transversales 
4.1.1  Normas técnicas 
 Párrafo 4.1  
18. ¿Cuáles son las medidas que ha consider ado Brasil en materia de reglamentación 
que ha considerado Brasil en materia de re glamentación paragraph impedir prácticas 
comerciales engañosas? 
 
Generally speaking, INMETRO considers that the ad option of procedures for conformity assessment 
are a mechanism necessary to prevent deceptive practices. 
 
Párrafo 4.1  19. ¿Cuál es el mecanismo que sigue la Polic ía Federal como colaborador paragraph el 
mejoramiento del procedimiento de evalua ción de la conformidad antes que la 
mercancía ingrese a su país?  
Actually, INMETRO institutionalized its operational integration with Receita Federal focused on 
intelligence efforts for enhancing the verification  of conformity assessment procedures in goods 
before entering Brazil, as well as improving joint surveillance of retail market. 
 
Párrafo 4.1  20. ¿Cuál es el periodo promedio que Brasil posee entre la publicación de un 
reglamento técnico y su entrada en vigor? 
 The period from the publication until the entry into force of the regulation depends upon the 
output of the regulator and the regulated. In so me cases, such as some products regulated by 
INMETRO, this period can be differentiated according to the activity related to the product: manufacturing, marketing, import. 
 
Párrafo 4.2  21. ¿Permite Brasil la participación de se ctores interesados pertenecientes a otros 
países en la elaboración de un reglamento técnico? 
 Yes, the participation of interested sectors belonging to other countries is allowed in the drafting of 
technical regulations.  
 Párrafo 4.2 
 
22. ¿Cuáles son los criterios utilizados por el  Gobierno de Brasil paragraph determinar 
la necesidad de elaborar un reglamento técn ico?¿Se realizan estudios de impacto en la 
economía, en particular sobre el comercio? 
 
Conmetro has guidelines for medium and Brazil de velopment and revision of technical regulations 
of various regulators through four-year plans with annual review. 
 
In addition, Brazil has the Guide to Good Regula tory Practices which, although voluntary, is 
observed by various regulatory agencies, includ ing the INMETRO. According to the Guide, the 
preparation of a technical regulation should be a systematic process involving several steps. 
 This guide, adopting practices widely used in international forums, makes recommendations for the development of a technical regulations. Some steps can be accomplished in different ways, 
and each authority under its jurisdiction, specificities, culture industry, magnitude, complexity and WT/TPR/M/283/Add.1 
 
- 203 - 
 
sensitivity of the subject to be regulated, can ma ke the choices that will seem more convenient 
and appropriate. Special attention should be given to the participation of interested parties and segments, involving them in discussions from the initial stages of the process, is aiming its effective contribution in drafting regulations is to consolidate support, either to legitimize their 
adoption. 
 The guide also provides for an assessment of th e impact of regulation on economic, social and 
environmental matters, with the objective to provide society with good regulation. The regulatory 
authority should be able to assess the impact of regulation and made sure that the positive impacts arising from the implementation of the regulation outweigh the negative, whether economic, environmental or social. 
 
Párrafo 4.2  
23. ¿Tiene pensado Brasil realizar algún ti po de inventario con el fin de eliminar 
aquellos reglamentos que hayan qu edado obsoletos con el tiempo? 
 
Under Conmetro, Brazilian technical regulations are constantly reviewed by regulatory authorities. 
Technical regulations are published in the Official Gazette when revised or revoked.  Párrafo 4.3 
 
24. ¿Cuáles son los principales sectores en  los que Brasil ha alineado sus normas y 
reglamentos técnicos con está ndares internacionales? 
 
Brazil adopts the recommendations of the WTO also with regard to regulation and standardization. 
 
Párrafo 4.5 
 25. ¿De qué manera el Brasil ha colabora do con otros miembros en el marco del 
MERCOSUR, paragraph la elaboración de un  sistema armonizado de los requisitos 
técnicos? 
 Brazil participates in the Sub Working Group 3 of the MERCOSUR aimed at harmonization of 
technical regulations and conformity assessment proc edures in the bloc, seeking thereby to reduce 
any technical barriers to trade. To date, more than 310 technical regulations were harmonized within the Sub-Group. 
 
Párrafo 4.5  26. ¿En cuáles de los Acuerdos Comerciales Bilaterales de Brasil existen provisiones 
relativas a OTC? ¿Cuáles son las caracterís ticas principales de dichos acuerdos y sus 
aportes con respecto a los derechos y obligacio nes existentes en el Acuerdo OTC de la 
OMC? 
 
Access to all the international agreements to which Brazil is a party can be obtained at: http://www.desenvolvimento.go v.br/sitio/interna/inter na.php?area=5&menu=405 
 
In all of them, the provisions relating to technical regulations and conformity assessment procedures follow the guidelines of the WTO TBT agreement. 
PERU (2) 
Dumping Y Subsidios 
 WT/TPR/G/183 
 
Medidas comerciales especiales  implementadas por Brasil 
 
1. Entre las medidas implementadas por Brasil en su legislación interna, sobre 
aspectos relacionados a la aplicación de medida s antidumping, es de particular interés WT/TPR/M/283/Add.1 
 
- 204 - 
 
del Perú contar con mayor información respec to a lo señalado en el Informe elaborado 
por la Secretaría de la OMC sobre los el ementos "circunstancias excepcionales" e 
"interés nacional", que son analizados por las autoridades brasileñas paragraph 
suspender la aplicación de medidas anti dumping o compensatorias definitivas. 
 
There is no definition of the terms "exceptional circumstances/reason of national interest". Any 
decision CAMEX might make based on those terms will be analyzed on a case-by-case basis. 
 
2. El Informe de la Secretaría señala qu e la Cámara de Comercio exterior (CAMEX) 
puede en "circunstancias excepcionales" e in vocando "interés naci onal" determinar la 
suspensión de la aplicación de medidas antidumping o compensatorias definitivas, 
previo informe del Grupo Técnico de Evaluaci ón de Interés Público (GTIP) que es el 
órgano encargo de examinar la pertinencia de  dicha decisión. Se solicita conocer cuáles 
son los criterios que evalúa el GTIP pa ragraph determinar la existencia de 
"circunstancias excepcionales" e "interés nacional" a fin que la CAMEX disponga la 
suspensión de la aplicación de medidas an tidumping y si se pu ede determinar dicha 
suspensión tanto en aquellos casos que han si do iniciados a solicitud de parte como en 
los iniciados de oficio por la autoridad investigadora. 
 The "Grupo Técnico de Avalição de Interesse Público – GTIP" (Technical Group for Public Interest Assessment) is competent to analyze the suspen sion or amendment of final antidumping and 
countervailing measures and the non-application of anti-dumping and countervailing measures, for 
reasons of public interest. The application for the suspension or amendment of final antidumping and countervailing measures and non-application of provisional antidumping and countervailing 
measures shall be submitted with the relevant ex planations. The suspension of the measures can 
be determined in cases initiated at the request of the concerned parties or by the investigation authority, provided that the deadlines of the investigation are respected. (CAMEX 
Resolution No. 13, dated of February 29, 2012). 
 The assessment of the Public Interest is not im plemented in each case, only when domestic 
producers, users of the product or public authorit ies question about the effects of antidumping or 
countervailing duties. In this case, additional information may be requested by GTIP, from 
participants in the domestic market.  
Apoyo a las exportaciones y medidas fiscales conexas 
 3. Entre los programas de apoyo a las ex portaciones, se aprecia un conjunto de 
mecanismos de financiación destinados a ayud ar a los exportadores; entre éstos, se 
encuentra el Programa de Financiación PROEX, el cual según se indica en el Informe de 
la Secretaría, tiene por objeto permitir qu e los exportadores puedan acceder a créditos 
con tasas de interés similares a las existentes  en el mercado internacional. El referido 
programa presenta dos modalidades: la financ iación directa y la equiparación de las 
tasas de interés.   
For detailed information on PROEX, please refer to 
http://www.mdic.gov.br/sistemas_web/aprendex/default/index/conteudo/id/194.  
4. La modalidad de financiación directa es tá dirigida a micro, pequeñas y medianas 
empresas. No obstante, este apoyo puede ser extendido a empresas de mayor envergadura en circunstancias especiales. En 2012, dicha modalidad abarcó a 205 exportadores, siendo los principales sect ores involucrados la agroindustria (56%); 
textiles, cuero y calzado (21%) y maquinaria y equipo (8%). 
 Kindly refer to the answer to question 3. 
 
5. La modalidad de equiparación de tasas d e  i n t e r é s ,  m e d i a n t e  e l  c u a l  e l  P R O E X  
asume parte del costo de financiamiento a la exportación, está dirigida a todo tipo de 
empresas exportadoras, permitiendo que ésta s puedan obtener un crédito a tasas de 
interés equivalentes a las del mercado intern acional. En 2012, dicha modalidad abarcó a 
38 empresas importadoras, siendo los sect ores más beneficiados el relacionado a 
maquinaria y equipo (57%), los servicios (26%) y el equi po de transporte (17%). 
 WT/TPR/M/283/Add.1 
 
- 205 - 
 
Kindly refer to the answer to question 3. 
 6. Dado que el PROEX fue redefinido por el  gobierno de Brasil como consecuencia de 
la constatación del Organo de  Solución de Diferencias de la OMC, de que el referido 
programa constituía una subvención a la expo rtación, se solicita conocer cuáles fueron 
las modificaciones efectuadas en su legi slación nacional paragraph adecuar dicho 
mecanismo a las disposiciones de la OMC, co n especial énfasis de las modificaciones 
efectuadas paragraph los sectores de la agroindustria, textiles, cuero y calzado.  
 PROEX equalization payments for regional aircraft were the subject of a dispute with Canada under the WTO dispute settlement mechanism. As a result  of the recommendations, Brazil redefined the 
criteria for the Equalization Programme, specifying that financial equalization operations involving 
export of aircraft for regional aviation must not result in net interest rates lower than the 
Commercial Interest Reference Rate (CIRR), as pu blished monthly by the OECD. Moreover, at that 
time, CAMEX Resolution No. 29 of 31 July 2007 reinforc ed the policy that Brazilian official support 
to the exportation of aircraft must follow the 2011 OECD Aircraft Sector Understanding on Export Credits for Civil Aircraft (ASU). 
 
Furthermore, according to Brazilian law, PROEX must be granted in line with international market conditions, what is applicable to all sectors. (Law  No. 10,184, of 12 February 2001). In the case of 
PROEX Equalization, the equalization spread is limited to the amount necessary to make the 
financial conditions compatible with those practiced in international markets (CMN Resolution 
No. 4,063, de 12 April 2012).  
Políticas de Competencia 
 7. El Perú considera positivas las reform as introducidas con la nueva legislación 
brasileña en materia de competencia, especialme nte lo relativo al sistema de control de 
concentraciones. Si bien el Perú no cu enta con esta herramienta paragraph la 
generalidad de los mercados, sería útil cont ar con información específica sobre el 
impacto de esta nueva legislación sobre los mercados de Brasil.  
 
There are not any specific studies about the impacts of the new Competition Law (No. 12,529 of 30 November 2011) on Brazilian Markets. However, it is important to highlight that the new 
legislation brought significant changes to the stru cture of the governmental agencies charged with 
competition enforcement in Brazil. The new Law extr acts the participation of the former agents in 
merger and anticompetitive conducts enforcement, th ere is now a single agency in charge of this 
task in Brazil: the Brazilian Administrative Council  for Economic Defense – CADE – is the center of 
the Brazilian Competition Policy System. CADE is in charge of all competition enforcement matters, including investigations of anticompetitive practices and merger review. The structure within CADE, however, was significantly changed. CADE is now divided into two basic units: the General-
Superintendence and the Administrative Tribunal. The General-Superintendence is responsible for 
investigating anticompetitive conducts (which includes search warrants and negotiation of leniency agreements) and for reviewing the merger filings. It is headed by a single Superintendent. The 
Tribunal, which is composed by a council of six Commissioners and CADE's President, renders final 
decisions regarding the imposition of sanctions against anticompetitive practices and remedies or rejections of anticompetitive mergers. 
 
The new law established the previous analysis of mergers, this tool increased the speed of CADE's procedures. Under the rules of the Law 12.529/11, 250 operations were approved in an average period of 25 days. In 2011, the year before the en try into force of the new law, the average time 
was 154 days. Another change was the establishment of fast track decisions that allow to General 
Superintendence decide on simpler cases on competitive point of view, hence, 227 of the 250 operations approved were decided by fast track in an average period of 20 days. As the 
former System, the new Law maintained the agency 's independence and transparency. All opinions 
and decisions are publicized (through the Official  Journal and CADE's website) and the Tribunal's 
trials are open to public view. The new legisl ation also conveyed a staff and budget increase. 
 
8. Asimismo, se solicita información sobre el impacto de las reformas estructurales 
del Sistema Brasileño de Política de Compet encia (SBPC) y los nuevos criterios que se 
utilizan paragraph la evaluación de conductas anticompetitivas. 
 WT/TPR/M/283/Add.1 
 
- 206 - 
 
Law No. 12529 does not establish new criteria for anti-competitive conducts. Please, for 
information on Brazilian Competition Policy Sy stem's structure refer to the answer above. 
 After the first year after the 2012 Competition Law was put into effect, some results of the new 
legislation and of CADE's transition strategy and management are already being felt, mostly 
positively.  
Although in the past few years there were important advances regarding the review period of 
merger cases, until 2011 the average time from notification until a final decision by the authority (including the Ministries of Finance and Justice's analysis) was approximately 154 days. After the new system was effected, this average dropped to  about 31 days. Ordinary cases are processed in 
43 days in average, and summary cases are decide d in an average of 19 days, always under the 
30 day period that CADE committed to.  
When the new Competition Law came into effect, in May 2012, CADE's Superintendence inherited 
approximately 320 conduct investigations, between  cartels and abuse of dominant position 
practices. Following its efforts towards greater efficiency and case prioritization, this number 
dropped, in March 2013, to about 208 investigations – a reduction of over 100 cases in 10 months, 
which were filed or sent to the Tribunal with condemnation recommendations. This willful decrease, however, did not translate into weaker enforcement, on the contrary.  
9 .  E n  r e l a c i ó n  c o n  e l  i n f o r m e  d e  l a  S e c r e t a r í a  d e  l a  O M C ,  e l  P e r ú  c o n s i d e r a  
importantes las observaciones en relación co n las normas que regulan la intervención 
del fuero judicial sobre los procedimientos po r infracción a las normas de competencia 
en Brasil. En particular, este informe indica  que estas reglas generarían determinados 
problemas, debido al inicio de  acciones paralelas y la dilata ción excesiva de los procesos 
ante las autoridades administrativas y judiciales.  
 
The judicial review may take a lo ng time, but, CADE's attorney general's office has been working 
on the quality of CADE's decisions among judges. Such initiative has paid off when we evaluate 
that, in 2012, there was a 71% rate of favorable decisions to CADE. Additionally, we point out the 
8 search and seizure requests that were used in the dawn raids held by the General 
Superintendence.  
10. En relación con el apartado sobre contro l de precios, se desprende del informe de 
la Secretaría de la OMC, que dicho control se presenta con relación a una reducida proporción de bienes y servicios, y además muestra una tendencia hacia la 
desregulación. En tal sentido, si bien en el Perú el control administ rativo de precios se 
encuentra limitado a las tarifas paragrap h determinados servicios públicos (energía, 
telefonía, agua y saneamiento, etc.) en razón de recientes in iciativas legislativas, sería 
importante contar con información específica  sobre el diseño, implementación e impacto 
de la fijación administrativa de precios en  Brasil, en particular, sobre el mercado de 
productos farmacéuticos y el de pl anes de atención de salud.  
 
Contratacion Publica 
 WT/TPR/S/283 
 
3.  Políticas Y Prácticas Comerciales, Por Medidas 3.4.4  Contratación pública  
3.4.4.1  Características generales 
 Párrafo 3.237 
 
11. ¿Puede expresar las cifras del gasto en  contratación pública también en dólares 
(USA)?  
 
Procurement by government bodies registered under the SIASG totalled US$30.9 billion in 2011. 
 WT/TPR/M/283/Add.1 
 
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Párrafo 3.238 
 12. ¿Puede otorgar el Gobierno Federal de Brasil  las cifras oficiales de las 
contrataciones sub-federales? 
 
This information, in a non-aggregate level, is not available to the Federal Government.  
Párrafo 3.239 
 13. ¿Puede señalarse qué disciplinas existen en el marco del MERCOSUR respecto a las 
negociaciones sobre el Protocol o de Contrataciones Públicas? 
 
As noted in the Government Report, the Protocol on Government Procurement is currently being revised. 
 
3.4.4.2  Legislación  
Párrafo 3.242 
 14. ¿En qué consiste el trato preferencial a las pequeñas empresas establecidas en el 
Gobierno Federal de Brasil? ¿Cómo se  definen estas pequeñas empresas?  
 
The preferential treatment to Micro and Small Enterprises in Brazil is regulated by the 
Complementary Law 123 of 2006: <http://www.plan alto.gov.br/ccivil_03/Leis/LCP/Lcp123.htm>. 
In the Third Article of that Law it is possible to find the definitions of Small Enterprises in Brazil. 
Articles 44 to 45 specify the preferential treatm ent as a margin of preference of 10% (5% in 
reverse auction) to the Micro and Small Enterprise, to cover the best offer from a non Small 
Enterprise. 
 Párrafo 3.243  
15. ¿A qué se refiere con los "contingente s" mencionados en la Ley General sobre 
Microempresas o Pequeñas empresas? ¿Cómo funcionan éstos?   
In specific cases, the goverment can establish  a quota up to 25% (twenty five percent) of the 
object to the hiring of micro and small businesses in a bidding process for the acquisition of goods and services. 
 
Párrafo 3.245  16. ¿A qué se refieren las "ordenanza s" paragraph otorgar los márgenes de 
preferencia? ¿Estas preferencias están cont empladas legalmente también paragraph los 
Estados miembros de la Federación, para graph sus municipalidades, y paragraph sus 
empresas públicas?  
 
The rules of origin for each product are established in specific legislation. The General Law (Law No. 8.666/93) and the preference policy apply to all levels of government in Brazil. 
 
Párrafo 3.254  17. ¿Posee el Gobierno Federal de Brasil po rtales electrónicos paragraph cada región? 
¿Podrían brindar información más detallada en caso éstos existan? 
 All entities at the Federal level are required to  publish tenders and tender documentation online, 
on Comprasnet. Although states and municipalities may adhere to use Comprasnet, there are no 
estimates on the proportion of contracts publishe d by them on that website, nor the number of 
states and municipalities using similar means.  
 
Párrafo 3.255  18. ¿Puede brindar mayor información sobre el uso de medios de impugnación a nivel 
sub-federal?  WT/TPR/M/283/Add.1 
 
- 208 - 
 
 
Sub federal levels are subjected by the same General Law: 8.666/1993. The appeal mechanism, 
specially the access to Superior Courts, is exactly the same as the mechanism applying to the Federal Level and is available in all stages of the bidding process.  
 WT/TPR/M/283/Add.1 
 
- 209 - 
 
REPUBLIC OF KOREA 
WT/TPR/S/183 
 3.  Trade Policies and Practices By Measures 
 
Page 63, paragraph 76  
Brazil does not grant equivalence to tec hnical regulations adop ted by any trading 
partner, but accepts equivalence in test resu lts. Brazil did not notify to the WTO of any 
new mutual recognition agreements (MRAs)  on conformity assessment during the 
review period; its five notifications dating back to 2003 were cove red in the Secretariat 
Report for Brazil's previous Review. Thro ugh INMETRO's General Coordination for 
Accreditation (CGCRE), Brazil has mutual re cognition agreements on accreditation and 
certification with 80 accreditation bodies in 66 economies. INMETRO also represents 
Brazil in relevant initiatives within MERCOS UR, KAIA, and the Organi zation of American 
States, and has signed technical cooperat ion instruments, including memoranda of 
understanding and agreements, with entities  in : Argentina, Bolivia, China, Chile, Cuba, 
Costa Rica, the Dominican Republic, Ecuador,  Germany, Guatemala, France, India, Italy, 
Japan, Lebanon, Mexico, Mozambique, Panam a, Paraguay, Peru, Portugal, the Republic 
of Korea, Singapore, South Africa, Russia, Tr inidad and Tobago, Turkey, Ukraine, the 
United Kingdom, the United States, Uruguay, and Venezuela. 
 
1. Please indicate whether the equivalences of all the test results issued by foreign 
conformity assessment bodies are accepted or  whether there are the conditions in which 
the test results can be accepted as equivalent. 
 
- If an MRA is required for the equiva lence of test results to be accepted, 
please provide the list of technical regu lations that have such requirement as 
well as the respective regula tory authority in charge.  
 Rules of acceptance of conformity assessmen t results are provided in INMETRO / MDIC 
number 361 of 06/09/2011 - General Requirements for Product Certification - RGCP. Note that 
there must be a national body that takes responsibility for acceptance tests carried out by foreign body. 
 
- Please provide the list of foreign conf ormity assessment bodies for technical 
regulation recognized or designated by  the Brazilian regulatory authority, if 
possible. 
 The list of conformity assessment bodies accredit ed by INMETRO is available in Portuguese at 
http://www.inmetro.gov.br/organismos/consulta.asp.  
 
Page 64, paragraph 82  
Assisted by CONMETRO's technical committees, INMETRO acts as Brazil's national 
accreditation body. It accredits entities enga ging in certification, inspection, training, 
calibration, and testing, including agri-tox ic laboratories and clinical analysis 
laboratories. In general, the accreditation pr ocess comprises the submission of a formal 
request, a review of supporting documentation,  and an in situ inspection; entities are 
subject to periodic evaluations to maintain their accreditation. According to the authorities, entities seeking accreditat ion to carry out compulsory conformity 
assessment activities are genera lly not required to have a pe rmanent office in Brazil, but 
a few technical regulations stip ulate it as a prerequisite.  
 
2. According to the report, it is not necessary for entities seeking accreditation to 
locate an office in Brazil to perform ma ndatory conformity assessment activities. 
However, we are aware that there are some te chnical regulations which provide for this 
as a prerequisite. Please provide the list of technical regulations wh ich requires entities 
seeking accreditation to set up an office in Brazil to perform conformity assessment 
activities. WT/TPR/M/283/Add.1 
 
- 210 - 
 
Accreditation is voluntary in nature and can be requested by organizations located in any country. 
More specific requirements may be established by regulators and depending on each specific regulation.  
4. Trade Policies by Sector 
 Page 133, paragraph 69 
 
From 1 January 2013, the automotive sector's  fiscal regime was superseded by the 
INOVAR-AUTO program, established by La w No. 12,715 of 7 September 2012; the 
previous tax breaks no longer apply. Comp anies eligible for the programme may benefit 
from an IPI tax reduction of up to 30% on automotive products. Decree No. 7,819 of 
3 October 2012 outlines a number of general and specific conditions under which three categories of eligible companies may benefi t from fiscal incentives; companies that 
(i) manufacture, (ii) commercialize or (iii) plan to manufacture products listed in 
Annex I of the Decree (covering 52 tariff lines ) in Brazil. In order to qualify for the 
INOVAR-AUTO, vehicle manufacturers must  comply with energy-efficiency of 
requirements and meet at least three of the following four conditions; perform a 
minimum number of manufacturi ng steps in Brazil for at least 80% of vehicles 
produced; invest in engineering, basic indu strial technology, and supplier training; and 
participate in the Brazilian vehicle ta gging programme (PBEV) for a minimum 
percentage of the company's output. These requirements are set to increase gradually, 
beginning in 2013 (Table 4.7).  
3. The INOVAR-AUTO program, as a replac ement of the Planco Brasil Maior, is 
designed to strengthen Brazil's competit iveness in the automobile industry by 
promoting technological development and to attract more foreign investment through 
tax incentives. Korea would lik e to underline the deep concerns over the possibility that 
the measures applied under the program would have a negative impact on trade, thus 
being inconsistent with Brazil's various obligations under the WTO Agreement. In 
particular, it is worrisome that the relevant Decree stipulates one of four conditions to 
get IPI tax reduction as 'to perform a mini mum number of manufacturing steps in Brazil 
for at least 80% of vehicles produced.' Su ch a provision seems inconsistent with the 
SCM Agreement, the TRIMS Agreement, and th e national treatment obligation under the 
GATT. In this regard, the Korean Government  would appreciate further explanation from 
Brazil regarding how to reconcile such p ossible inconsistency with relevant WTO 
provisions.    
 
First of all, it is noteworthy that the INOVAR-AUTO program has not replaced the Plano Brasil Maior. The first one comprises only the automotive industry whereas the latter deals with the industry as a whole. 
 
At the current automotive regime (Inovar-Auto , started 2013), companies importing automotive 
products originated in all WTO countries are eligible to tax reduction and "presumed credit" of the 
Tax on Industrial Products (IPI). Therefore, ther e is no discrimination related to origin of the 
automotive products imported by the companies which benefit from the program.   
It is important to recall that entering the program depends on the company's commitment to 
achieving minimum levels of energy efficiency and to complying with at least three out of four items. Namely:   
- Accomplishment of manufacturing activities and of engineering infrastructure, either 
directly or through third parties;  
- Accomplishment of investments in research, development and innovation, either 
directly or through third parties;  
- Accomplishment of expenditures on engineer ing, basic industrial technology, and of 
training to suppliers, either directly or through third parties; and  
- Adhesion of the company to the Brazilian vehicle labeling program, except for vehicles 
with piston engines, compression ignition engines (diesel or semidiesel). 
 WT/TPR/M/283/Add.1 
 
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Therefore, even established companies that do no t perform manufacturing activities in Brazil are 
eligible to the tax reductions, according to the Law. For those who decide to comply with manufacturing requirements, these requirements are value added based.  
4. Please provide us with further explanat ion on the extent of inclusion or exact 
meaning of 'companies that commercialize in Brazil' as a possible beneficiary of the IPI 
tax reduction according to the Decree No. 7,819. Please also provide relevant 
information regarding the PBEV (the Brazilia n vehicle tagging programme) stipulated as 
one of four conditions for tax reduction in the same Decree.    As stated in item II of art. 2 of Decree 7819/2013, companies that sell but do not produce vehicles 
in the country, can apply to the INOVAR-Auto Program.  
 The requirements for this are:  
 
1) the company must carry out expenditures on P& D (for 2013, amounting to 0.15% of 
gross sales of vehicles sold under the program); 
2) the company must make expenditures in  engineering (for 2013, amounting to 0.15% 
of gross sales of vehicles sold under the program); 
3) the vehicles must be enlisted in the PBEV (for 2013, at least 36% of enterprise models 
that are under the Program must be labeled in PBEV).  
 
The percentages of these three requirements are th e same for the other categories of qualification 
for the program. The importer must also have demonstrable relationship with the manufacturer of 
the vehicles to be imported. 
 Page 115, paragraph 229 
 
Copyright issues in Brazil are regulated by Law No. 9,610 of 19 February 1998(Copyright Law), and Law No. 10,695 of July 2003. Law No. 10,695/2003 amended the Criminal Code to include stiffer sanctions for copy right violations and to improve criminal 
procedures. In the context of this Review, th e authorities noted that a draft bill updating 
and amending Law No. 9,610/1998 is currently  under analysis at the Department of 
Intellectual Property in the Ministry of Cu lture before being forwarded to Congress. 
 
5. The Government of Korea recognizes that the current Copyright Law of Brazil is codified in Law No. 9,610 of 19 February 19 98 on Copyright and Neighbouring Rights. In 
the past 15 years, the copyright environm ent has changed greatly with the rapid 
development of technology and communication . Please indicate whether there is any 
plan to update and modify Brazil's legal regime  accordingly in the area of copyrights? If 
so, please provide relevant information. 
 
The draft bill for the reform of the current Copyri ght Law of Brazil is under discussion within the 
Government among the Ministries with responsibi lity over the subject. Under the Brazilian Law, 
such draft bills are protected against unauthorized disclosure and the Brazilian Government is thus 
not in a position to disclose specific details. Nevertheless, in general terms, the Brazilian Government intends that the draft bill contains provisions to revise the exceptions and limitations 
to the rights, new regulations for the contracts involving copyright and the reformulation of the 
provisions related to the collective management of rights, besides new specifications related to the circulation of protected work in the internet.  
Page 115, paragraph 301 
 In accordance with the Berne Convention, the TRIPS Agreement, and Law 
No. 9,610/1998, the protection granted to copyright works is independent of 
registration. However, right holders may regist er their works at accredited institutions, 
such as the Brazilian National Library; the Sch ool of Music or the School of Fine Arts of 
the Federal University of Rio de Janeiro; th e Federal Council of Engineering, Architecture 
and Agronomy, or the INPI. This registrati on provides a presumption of authorship 
which may be helpful, for instance, in judicial  procedures; therefore, it is a declaratory 
registration and does not constitute any right. 
 WT/TPR/M/283/Add.1 
 
- 212 - 
 
6. The Government of Korea understands that the Berne Convention and TRIPS 
agreement are already well reflected in the Co pyright Law of Brazil. However, Brazil has 
not signed the WIPO (World Intellectual Prop erty Organization) Copyright Treaty (WCT) 
or the WIPO Performances and Phonograms  Treaty (WPPT) which are also important 
treaties to cover new technology in the fiel d of copyright and related rights. Considering 
this, does Brazil have any plan to accede to the two treaties?   
The Brazilian Government does not intend to accede neither to the WCT nor to the WPPT, since it 
considers that those treaties are outdated and were hasty in attempting to regulate the digital environment in 1996, with provisions that do not duly regulate all the possible use of works in the internet – uses of which arose since 1996. 
 
WT/TPR/G/283  
2.  General Economic Environment 
 Page 5, paragraph 6 
 
Brazil has been one of the early adopters of macroprudential policies. The National 
Monetary Council (CMN) and the Central Bank of Brazil (BCB) played a major role in 
monitoring and acting to ensure financial st ability during the global financial crisis. The 
BCB has been actively developing its macr oprudential policy framework for some time, 
devoting resources to systemic risk monito ring, implementing various macroprudential 
or capital flow management measures and,  more recently, establishing a Financial 
Stability Committee within the BCB. 
 7. The rapidly rising household debt and NPLs have been indicated as key 
uncertainties with the slowing Brazilian ec onomy. Please elaborate on major trade-
related-macroprudential policies to ta ckle household leverage and NPLs. 
 Brazil has been an active user of both moneta ry and macroprudential policies. Its experience 
during the post-crisis period illustrates well the complementary relationship between the two 
policies. Monetary policy was focused on ensuring price stability, and macroprudential instruments were used to contain the potential buildup of sy stemic risks from rapid credit growth. As these 
policies leaned against the business and financial cycle, synchronized during this period, the policy 
mix was appropriate to meet two objectives — price and financial stability — with two instruments.  
Page 10, paragraph 32 
 Brazil has a decentralized proc urement system. Federal, Stat e and Municipal authorities 
can make public purchases, in accordance with the Tendering Law (Law 8.666 of 1993). 
According to the general Law, public enti ties cannot establish differential treatment 
between Brazilian and foreign companies. Five  procurement modalities can be used by 
public entities: open tendering; price consultation; invitation; contest; and public 
auction.  
 8. According to the general law on Braz ilian government proc urement (Law 8.666 
of 1993), public entities cannot discriminate against foreign companies. However, in the 
new industrial policy (Plano Brazil Maior), es tablished in 2011, the Brazilian government 
is giving more benefits to domestic compan ies through the introduction of "Buy Brazil". 
Please elaborate more concerning the potent ially discriminative influence of the "Buy 
Brazil" policy on foreign companies in th e areas of government procurement. Also, 
please indicate whether the Brazilian govern ment has any plan to accede to the WTO 
Agreement on Government Procurement. 
 
The introduction of margins of preference in pu blic procurement does not have the purpose of 
being trade restrictive. The definition of the se ctors and the respective preferential margins is 
based on studies that take a number of criteria into account, including job and income generation, 
effect on tax revenues as well as technology development and innovation performed in Brazil. 
 WT/TPR/M/283/Add.1 
 
- 213 - 
 
At the moment, Brazil has no plans to join the GPA. Brazil's position is grounded on Article III, 
Section 8, paragraph (a) of the GATT, which explicitly excludes government procurement from the obligations relating to national treatment.  
4.  Trade Institutional and Regulatory Framework 
 Page 18, paragraph 1 
 
The Brazilian institutional framework for te chnical regulations ha s remained broadly 
unchanged during the period under review. Th e National Institute of Metrology, Quality 
and Technology (INMETRO) was given new attributions by Law 12.545/11, which 
include taking part in SISCOMEX's consen ting body for non-automatic licensing of 
goods, regulating measures to prevent deceptive practices of trade and working 
together with the Federal Police to improve the conformity assessment of goods, before 
they enter the country. 
 9. The National Institute of Metrology, Quality and Technology (INMETRO) was given 
new responsibilities by Law 12.545/11, which in cludes taking part in consenting to non-
automatic licensing of goods, regulating me asures to prevent deceptive practices of 
trade and working together with the Federal Police to improve the conformity assessment to imported goods. Are there an y possibilities for this change to create 
unnecessary obstacles to trade such as a lo nger waiting time for licensing or more 
complex conformity assessment procedures?  
No. The process of establishing regulations an d conformity assessment procedures remains the 
same, being continuously improved on the basis recommendations of the WTO. With regard to the responsibility assumed to operate in non-auto matic licensing of goods, INMETRO promoted a 
restructuring in the Board for Conformity Assessment.  In order to prevent the creation of obstacles 
due to longer terms for the granting of import licenses, INMETRO has been working continuously to shorten them. Early in the deployment of this new activity, the average time for granting of import licenses was 20 days, and currently it is 4 days. 
 
Page 19, paragraph 8  
Some of the results achieved  by GTFAC include (i) the establishment of the Brazilian 
Foreign Trade Gateway (www.comexbrasil. gov.br), which contains the main 
requirements, procedures and regulations rela ted to foreign trade, especially imports, 
and links to the sites of all government agen cies involved with fo reign trade; (ii) the 
improvement of electronic systems with a vi ew to reducing average clearance times, 
using the single window approach; (iii) the setup of an Instantaneous Imports Licensing 
Deferring tool, intended to speed up appr oval of import licenses; and (iv) the 
development of governmental qualification an d training programs on trade facilitation 
for border control officials.   
10. Accomplishments by the GTFAC, which include the establishment of the Brazil 
Foreign Trade Gateway (online publicat ion), improvement of the electronic 
system(using single window), the developm ent of the governmental qualification and 
training program on trade facilitation for bord er control officials, are major issues in 
current WTO negotiations on trade facilitati on. Many other developing country members 
have difficulties in implementing these trad e facilitation measures due to lack of 
experience and/or financial limitations. Has the Brazilian Government carried out a cost-
benefit analysis on the trade facilitation measures? 
 The Working Group on Trade Facilitation (GTFAC) is  a technical advisory group of the Council of 
Ministers of CAMEX, acting as the National Trade Facilitation Committee in Brazil. It aims at 
monitoring, reviewing, reporting progress and prop osing measures, including updating procedures 
and regulations, promoting better coordination and streamlining risk assessment analysis by 
government agencies and harmonization of polici es. The measures implemented by Brazil under 
the coordination of GTFAC are deci ded on a case by case basis and they are usually presented by 
different Brazilian go vernmental agencies. 
 WT/TPR/M/283/Add.1 
 
- 214 - 
 
Furthermore, the GTFAC meeting agenda is set by common agreement based on possible impacts 
or benefits of the measures to the Brazilian foreign trade. In this sense, in order to set the main trade facilitation measures, GTFAC takes into consideration a cost-benefit analysis to define which measures will be implemented by the Group and its representatives. 
 
One of the main objectives of GTFAC is to upda te trade-related regulations and to eliminate red 
tape, streamlining control procedures with a view to reducing the burden of foreign trade and 
trade transaction costs. 
 Page 21, paragraph 18  
In May 2012, a new Competition Law entered in to force in Brazil (Law 12.529). The new 
law introduced significant changes to the st ructure of the governmental agencies in 
charge of competition policy enforcement in Brazil, which includes mergers and 
unilateral and coordinated anticompetitive cond ucts control. CADE became the center of 
the Brazilian Competition Policy System (SBD C). The System is also composed by the 
Secretariat of Economic Monitoring (SEAE), under the Ministry of Finance. SEAE is 
currently responsible for competition advocacy , which includes dialoguing with public 
agents and proposing pro-competitive actions.  CADE is in charge of all competition 
enforcement matters, including investigations  of anticompetitive practices and mergers 
review. In exercising this role, CADE may re ject or impose remedi es to anticompetitive 
mergers, as well as apply sanctions towards companies and individuals that engage in 
anticompetitive conducts.  
11. Could Brazil provide the latest inform ation on how the new Competition Law has 
functioned so far?  Please also indicate, compared to the previous Competition Law 
system, whether the number of cases agains t violations of the new Competition Law 
significantly increased. 
 The new regime established new notification thresholds. Until 2012, notification was based on the market share and the annual gross revenue of the merger. The new law eliminated the market 
share criteria and updated the revenue criteria. The new threshold has reduced the number of 
mergers that require examination by CADE, allowi ng the agency to focus on more significant 
anticompetitive cases. The improvements to the regulatory framework and the increase in the 
number of investigators and petitions in the last years do not represent any reduction in the 
technical rigor of the investigating authority work. On average, about 50% of the petitions filed do 
not result in investigations and, out of all investigations actually initiated, about 40% do not result 
in the imposition of definitive measures. 
 Page 21, paragraph 22  
The new regime also established new notifica tion thresholds. Until 2012, notification 
was based on the market share and the annual gross revenue of the merger. The new law eliminated the market share criteria an d updated the revenue criteria. Currently, a 
merger must be notified for approval if th e annual gross revenue in Brazil of one of the 
parties is equal to or greater than US$375 million and if the second party's revenue is 
greater than US$37.5 million. The new thre shold has reduced th e number of mergers 
that require examination by CADE, allowing the agency to focus on more significant 
anticompetitive cases.  12. Among a broad range of enterprises (SME versus Large enterprises), what group of 
enterprises are most likely affected by the updated revenue criteria based on the annual 
gross revenue of the merger?   
Currently, a merger must be notified for approval only if the one of the parties' annual gross 
revenue in Brazil is equal to or greater than US$375 million and if the second party's revenue is greater than US$37.5 million. In this sense, it is safe to affirm that the updated revenue criteria 
prioritize large enterprises over small and medium enterprises. This change is based on the 
likeability of anticompetitive impacts on market that is verified on acts involving large enterprises.   WT/TPR/M/283/Add.1 
 
- 215 - 
 
Page 22, paragraph 29 
 The improvements to the regulatory fram ework and the increase in the number of 
investigators and petitions in the last ye ars do not represent any reduction in the 
technical rigor of the investigating author ity work. On average, about 50% of the 
petitions filed do not result in investigatio ns and, out of all investigations actually 
initiated, about 40% do not result in the imposition of de finitive measures. 
 
13. According to WTO statistics on anti-d umping, Brazil was the most frequent anti-
dumping investigation initiator in 2012. What steps can Brazil take to deal with the so-
called chilling-effect? 
 
Although the Department of Trade Remedies (DECOM) has the prerogative of initiating trade defence proceedings ex officio, all of the investigations carried out by DECOM were initiated 
through petitions submitted by the domestic indu stry. Therefore, the increase or decrease in 
contingency measures does not depend on DECOM.  
Page 23, paragraph 33 
 The National Council to Combat Piracy and Cr imes against Intellect ual Property (CNCP) 
was established in 2004 following the conclu sion of a Parliamentary Commission that 
recommended actions to strengthen coordina tion among government agencies involved 
in the fight against piracy and counterfeitin g. The Council is responsible for the design 
and implementation of the National Plan to  Combat Piracy and Other Crimes against 
Intellectual Property and comprises represen tatives from both the Government and the 
private sector, including right holders and the civil society. By bringing together private 
entities and Government repres entatives, with equal rights to voice and vote, in a joint 
council, the Brazilian initiative is unique and innovative.  The underlying assumption of 
the Council is that the combat against IPR violations involves measures to constrain the supply of such goods – through repressive ac tivities – as well as those measures to 
address the demand of such goods – by educ ative and economic activities. Thus, in its 
activities, CNCP has a three-pronged appr oach: repressive, economic and educative 
 14. When pharmaceutical patent applications  involve sanitary issues as well, which 
authority handles the issue?  
 ANVISA is the agency for such matters. Please refer to paragraph 3.287 of the Secretariat's Report 
for further information. 
 Page 24, paragraph 46  
According to the OECD Producer Support Esti mates (PSE), Brazil is one of the countries 
that provide the least subsidies to agricultur al producers, well below the OECD average. 
Brazil's price support mechanisms to family  farmers have been regarded by OECD 
studies as non-market-distorting schemes,  given the limited subsidies granted to 
commercial farmers facing high producti on and commercialization costs due to 
infrastructure deficiencies and long distan ces from ports and main domestic markets. 
 
15. Please explain the effectiveness of pr ice support mechanisms to family farmers 
thus far, as compared to the effectivene ss of other kinds of schemes with similar 
objectives. 
 
The Brazilian policy for family farmers encompasses a range of measures that enable them to overcome difficulties such as high production and commercialization costs. Price support 
mechanisms are just one of those instruments. 
 Brazil considers the said measures to be effective,  as they are aimed at a very specific group of 
farmers, who otherwise would not fulfill minimal conditions of keeping their small farm business. 
Those measures, however, are not designed nor result in the enhancement of the family farmers' competitiveness vis-à-vis the commercial farmers.   
 WT/TPR/M/283/Add.1 
 
- 216 - 
 
Page 25, paragraph 56 
 Brazil also considers bioenerg y, including biofuels, an indispensable tool for the 
expansion and diversification of the energy  matrix. Nowadays, biomass electricity – 
generated mostly from sugarcane processing plants – accounts for about 8% of Brazil's 
total energy consumption. By 2021, bioma ss and wind generation are expected to 
supply 16% of the country's energy needs. In the transportation sector, the use of 
ethanol and biodiesel 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. 
 
16. Brazil reduced its import tariff on et hanol from 20% to 0% in April 2010. 
Considering world energy/food market and climate change issues, does the Brazilian 
Government have any plan to adopt addition al policies and measures on biofuels?   
 The Brazilian government pursues in its policies the expansion of biofuels production and use in 
the next years. The energy planning indicates that this objective can be achieved through 
diversification of raw materials and also new processes and technologies. In order to promote the best utilization of natural resources, including land use, the Brazilian government launched its policy of Agro-Ecological Zoning for both sugarcane and palm oil.   
 
The National Agro-Ecological Zoning for Sugarcane (ZAE Cana), which defined lands suitable for sugarcane production, was based on environmental, economic and social criteria.  ZAE Cana is the 
largest crop survey in Brazil's history and the first ever to incorporate economic and social 
considerations into its proposed model for the sustainable development of the industry.   
The ZAE Cana proposal addresses the need to regulate the expansion of sugarcane production in 
light of the growing global demand for food and bi ofuels.  This proposal supports Brazil's goal to 
foster sustainable economic development and preser ve its indigenous lands, its biodiversity, and 
its natural resources. These criteria leave 64 million total hectares eligible for sugarcane planting, 
equivalent to 7.5% of the national land area . Sugarcane crops currently occupy an area of 
9.5 million hectares (2011 crop year).   
In addition to regulating future sugarcane expans ion, the federal government is proposing an end 
to burnings in existing production areas. The eradication will be enforced according to a transition schedule that ends burning by 2017 in 100% of ar eas suitable for mechanized harvesting.  This 
measure will allow for the reduction of greenhouse gases by six million tons of CO2 equivalent.  
 The ZAE Cana was presented as part of Brazil's platform to curb global climate change and promote environmentally sustainable development at  the United Nations' 15th Conference of the 
Parties (COP-15) held in Copenha gen, Denmark in December 2009. 
 In the case of Palm Oil Zoning, the Brazilian gove rnment policy aims the production of palm trees 
in already degraded areas in the fringes of the Am azon Bioma. The agro-ecological zoning (ZAE) of 
the palm tree was carried out under the coordination of the Brazilian Agricultural Research Organization - EMBRAPA, with the objective of id entifying areas that are most adequate for the 
sustainable expansion of the crop. The identification  of areas by the ZAE results from the adoption 
of the following methodology: Cross-checking of information about climatic and land aptitude for 
palm oil production according to various types of production management. There are 232.8 million hectares of land that fit in this criterion; exclusion of all areas covered with native vegetation, 
areas under protection (conservation units, national, state and municipal parks), indigenous 
people's land and fragile ecosystems.  
The area actually authorized for cultivation of palm oil trees in Brazil comprises all areas with 
aptitude for cultivation of the crop that had human  intervention up to 2008 (Estimate of Amazon 
Gross Deforestation Project - PRODES / National Institute for Space Research - INPE), except for 
any areas under legal and environmental restrictio n. The areas identified in the oil palm ZAE 
correspond to a total of 31.8 million hectares.  Brazilian biofuels legislation is being constantly reviewed and adapted to the energy and 
sustainable development needs of the country. Given the growing demand for fuels in the WT/TPR/M/283/Add.1 
 
- 217 - 
 
transportation sector, the Brazilian Government  recently adopted the following measures to 
expand ethanol production: a) increase in the ma ndatory blend of ethanol into gasoline from 20% 
to 25%; b) reduction to zero of the PIS/COFINS tax on ethanol; c) a R$ 4 billion credit line from BNDES to producers willing to renew their sugarcane fields with interest rates of 5.5%/year; d)  a 
R$ 2 billion credit line for ethanol storage with interest rates of 7.7%/year. Brazil is convinced that 
biofuels are important instruments for promoting sustainable development in its three dimensions: 
social, economic and environmental, as they generate jobs and income, promote rural 
development and reduce greenhouse gas emissions. Brazilian bioenergy policies are consistent 
with these objectives and the country has been ab le to increase the production of food, feed, 
energy and fiber.  WT/TPR/M/283/Add.1 
 
- 218 - 
 
RUSSIA 
WT/TPR/S/283 
 1. According to the Report by the Se cretariat (document No. WT/TPR/S/283 of 
17 May 2013, chapter 3.2.3.1 "Applied MFN ta riff", paragraph 3.36) in December 2011 
MERCOSUR adopted a new mechanism of temp orary tariff increase on non-originating 
goods (Common Market Council Decision No. 39 /11 of 20 December 2011). Brazil raised 
import tariffs on 100 tariff lines for a period of 12-month. The measure is effective since 
1 October 2012. This measure affects intere sts of Russian exporters of chemical 
products (HS code 38), rubber (HS code 39) an d electrical appliances (HS code 85). For 
instance, the import duty on rubber origin ating from the Russian Federation is now 
25%. This fact significantly affects the net c ost of rubber purchases by "Pirelli" (Brazil's 
company) from Russian manufacturers. Could Br azil specify the HS lines affected by this 
measure and comment on its necessity? 
 
The list of products subject to temporary increase  under Decision CMC No. 39/11 can be found  in 
CAMEX Resolution No. 70, 2012, and is available at the following address:  
 
http://www.camex.gov.br/legislacao/ interna/id/986. 
 It is noteworthy that prior to CAMEX deliberation on the matter, the Technical Group on Tariff 
Modifications of the MERCOSUR Common External Tariff - GTAT-TEC conducted technical studies in 
order to support the decision of that body.  
 
2. The import duty for diammonium phosp hate is 6% according to the MERCOSUR 
Common Nomenclature. At the same time, di ammonium phosphate with arsenic content 
of more than 6 mg/kg (3105.30.10) is contai ned in the Brazilian List of Exceptions to 
the Common External Tariff (LETEC), and therefor e for this item zero rate of import duty 
is applied. This measure has negative impa ct on the Russian exporters of the product 
concerned. Could Brazil explain the rationale behind this measure? 
 
Fertilizers and their inputs are in the List of Exceptions to the Common External Tariff (CET), with 
tariff reduction to 0%, as a goal to contributing to the competitive development of Brazilian agriculture. 
 
3. According to the report of the Se cretariat (document No. WT/TPR/S/283 of 
17 May 2013,  chapter 3.4.2.7 "Other sche mes", paragraph 3.223), since August 1997 
the Special Regime for the Exportation an d Importation of Goods Destined to the 
Exploration of Petroleum and Natural Gas (R EPETRO) was introduced (Law No. 9.478 of 
6 August 1997). This program allows the "fictitious exportation" and subsequent 
importation under the temporary admission customs procedure of goods produced in 
Brazil and sold in foreign currency to a person living abroad for use in the exploration of 
petroleum and natural gas in Brazil. The RE PETRO also allows the application of the 
drawback regime on imported inputs and parts used to produce those goods. The regime 
is granted with the waiver of all import taxes until 31 December 2020. In this respect 
could Brazil provide following clarifications:   
a) Please specify the aims of this me chanism and describe more precisely the 
mechanism of "fictitious exportatio n" and the procedure of temporary 
import. 
 
A "fictitious exportation" occurs when there is an export and a concomitant temporary admission 
of the same goods. In other words, the exported  goods do not leave the customs territory. Foreign 
concessionaries are the beneficiaries of this sp ecial procedure when they want to buy and use 
Brazilian equipment and parts in E&P activities without paying taxes levied on sales in the internal 
market  WT/TPR/M/283/Add.1 
 
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b) Is it possible for foreign companies to  be beneficiaries under this program? 
RFB 
 Answered above. 
 
c) Are there any local content requir ements according to this program? 
 
No. There are not any local content requirements.  
 
d) Could you provide the list of g oods covered by this program? RFB 
 
Only the products listed in Annex I to Normative Instruction 844 of 9 May 2008 and those 
mentioned in Article 2, paragraph 1, of this Instruction are eligible under REPETRO. Basically, equipment and spare parts necessary for direct use in oil and gas E&P activities (ships, machines, 
equipment, tools, drilling platform…) are eligible. WT/TPR/M/283/Add.1 
 
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SINPAPORE 
WT/TPR/S/283 
 2.  Trade Policy Regime: Framework And Objectives 
 
Trade Policies And Practices By Measure Pages 46 and 47, Paragraph 3.18  
 
1. Import declarations are processed acco rding to a risk assessment method that 
provides for four channels: green (automatic  clearance), yellow (document inspection), 
red (document and physical inspection), and grey (document, physical and fraud-related 
inspection). The risk analysis factors are re gularly updated and include: the importer's 
fiscal compliance record; operational and fi nancial capacity; frequency of use of the 
system; the nature, volume, and value of import s; taxation value; country of origin; and 
the import regime. The share of import declarations processed through the green 
channel increased during 2010-12 (Table 3. 1). A "blue line" express clearance facility 
remains in place for authorized companies with regular foreign trade operations. We 
would appreciate if Brazil could:  
  (i) share whether the authorized companies which qualify for the "blue line" 
 express clearance facility ar e also companies which possess the 
 "Authorized Economic Operator" status, and  
 The "blue line" provides express clearance to qu alified importers and exporters who fulfil certain 
requirements and conditions including high level of compliance with tax and Customs law and 
satisfy certain pre-determined security requirements.  
However this scheme does not meet all the requirements of the WCO SAFE Framework. Currently 
Brazilian Customs Administration is working on a new program completely based on the AEO concept in cooperation with the US Customs and Border Protection.  
(ii) explain the differences in the risk assessment methods for import 
declarations for such authorized comp anies compared to other companies. 
 
As qualified companies, they have a reduced number of operations selected to inspection, mainly 
by random selection.  
Page 49, paragraph 3.29 
 2. Brazil applies preferential rules of orig in in the context of its trade agreements 
(Chapter 2). Not all of these agreements have been notified to the WTO. Brazil's 
preferential agreements with Andean count ries have rules for cross-cumulation. We 
would appreciate if Brazil could share:   
(i) the detailed mechanism of these "rules for cross-cumulation" with the 
 Andean countries;  
 
The mechanism of cross-cumulation or diagonal accumulation of origin foreseen in the 
preferential agreements between MERCOSUR and Andean countries still needs to be regulated, that is, the mechanism is not in force yet  
(ii) how this mechanism of cross-cumulati on has been helpful for companies in 
Brazil so far; and  
 
The mechanism is not in force yet. 
 
(iii) whether there are plans to noti fy these agreements to the WTO. 
 
See above.  WT/TPR/M/283/Add.1 
 
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Page 53, paragraph 3.41 
 3. The WTO process of certifying Brazil's bo und tariff schedule in order to incorporate 
the changes resulting from the introduction of HS version 2012 has not been completed. 
Some 120 CET lines exceed, sometimes partia lly (due to differences in aggregation 
levels), Brazil's bindings; th e authorities note that in all such cases importers may 
request application of the bound rate. We woul d appreciate if Brazil could advise on the 
detailed procedures that importers are required  to carry out in order to request for the 
application of the bound rate for these 120 CE T lines. We would also appreciate if Brazil 
could share whether Brazil's bound tariffs rates at WTO is a function of Brazil's 
MERCOSUR CET commitments. If so, could Brazil specify in detail how are these two 
commitments linked?  
 The Brazilian government is working on this issue. 
 
Page 60, paragraph 3.62  
4. Under Brazilian legislation, an AD or CV duty may be equal to or less than the 
margin of dumping or the amount of the su bsidy, and is for the exclusive purpose of 
neutralizing the injurious effects of dumped or subsidized imports. Pursuant to its 
regulations, the lesser duty rule is mand atory as a recommendation of the reviewing 
agency and, in the majority of cases, Br azil has followed this recommendation, i.e. 
duties are applied to the extent necessary to remove the injury to the domestic industry, 
even if that implies a duty lower than th e dumping margin. However, since 2007 Brazil 
has applied the full margin of dumping on  suppliers who do not respond to the 
questionnaires sent by the SECEX during th e investigation. In May 2011, CAMEX decided 
that the full margin of dumping/subsidizatio n could be applied even in cases in which 
there is a technical recommendation for a le sser duty. We would appreciate if Brazil 
could clarify why this is so, since this goes against the lesser duty rule.  First of all, one should recall that the lesser duty rule is not mandatory. In the case of Brazil, there 
will be no recommendation for the application of the lesser duty rule in cases of non-cooperation 
by exporters. Otherwise, there would be a strong  incentive for exporters to be non-cooperative 
during the investigation. Nonetheless, even in situations in which there is a recommendation by 
the Department of Trade Defense (DECOM) to apply the lesser duty rule, Ministers at the Chamber 
of Foreign Trade (CAMEX) are not bound by that proposal and may decide differently if taking into account public interest considerations they conclude that the application of the full margin is 
required. 
 Page 68, paragraph 3.99  
5. All export goods must be registered in th e export registry (RE) prior to submission 
of the export declaration. The RE is reques ted by the exporters or their representatives 
through SISCOMEX, and if all required inform ation is complete and correct, registration 
will be issued within a maximum of 30 da ys. For financed exports (sales on terms 
exceeding 360 days or with interests) a cred it register (RC) is required in order to 
register the goods in the RE. Annex XV of  SECEX Ordinance No. 23 of 14 July 2011 
contains a list of exports exempted from ex port registration requirements. A simplified 
export declaration is availa ble for exports up to US$50, 000. We would appreciate if 
Brazil could:   
(i) explain the difference between the expo rt declarations for exports valued up 
 to US$50,000 and those beyond US$50,000, and   
(ii) share whether simplified export decl aration is only applicable to certain 
modes of transport (e.g. air courie r shipments) or for all modes.  
 
In fact, the requirements for using a simplified export declaration are: the value of the operation is 
under U$ 50,000 and no administrative control over the goods, i.e., any product subject to export restrictions, quotas, and licences are not eligible. There are no restrictions for using a simplified export declaration beyond those mentioned above. 
 WT/TPR/M/283/Add.1 
 
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Page 71, paragraph 3.113 
 6. Prior to this Review, the procedures of the Export Financing Programme (PROEX) were modified as a consequence of a WTO dispute settlement ruling that found that the 
manner in which they were applied to region al aircraft exports constituted an export 
subsidy. We would appreciate if Brazil could share on the modifications that have been 
made under the PROEX, and how the changes have helped diffuse concerns that the 
procedures of the PROEX constituted an export subsidy. 
 After the findings of the WTO DSB, Brazil impl emented a new methodology for PROEX-Equalization 
(PROEX III): the equalization for the export financing of aircraft could not make the interest rate 
lower than OCDE's Commercial Interest Refere nce Rates (CIRR). The new methodology has been 
found to be consistent with the SCM Agreement. In 2007, Brazil was one of the signatories to the OECD Aircraft Sector Understanding on Export Credits for Civil Aircrafts (ASU). 
 
Page 75, paragraph 3.134  
7. BNDES-EXIM programmes are geared to promote exports with local value added. 
The stated conditions to participate in some of these programmes include domestic 
content/production thresholds. The Brazilian authorities have emphasized that these 
conditions apply only to qualify automatically  for financing, and that products that do 
not meet these conditions may also benefit from the programmes subject to a non-
automatic analysis procedure. All exporting co mpanies, regardless of size, are eligible to 
apply for BNDES-EXIM financing, however MS MEs are granted special conditions under 
certain schemes, and some programmes ar e targeted at specific sectors (e.g. 
automobiles, aviation, pharmaceuticals). Duri ng the review period, BNDES introduced or 
re-launched two additional ex port financing facilities: the PSI-Export Pre-shipment 
programme to encourage exports of capital g oods, and the Revitalize Exports scheme to 
support exporters adversely affected by the in ternational economic crisis. We appreciate 
Brazil's provision of more de tails on selected BNDES-EXIM programmes in Table A3.1 
(page 190). We would appreciate if Brazil could: 
 
(i) Share the full list of all the BNDES-EXIM and PROEX programmes; 
 
The full list of BNDES Exim programmes is detailed in Table A3.1 of the Report by the Secretariat 
(WT/TPR/S/283). PROEX has two programs: PROE X-financiamento and PROEX-equalização. The 
first is aimed at providng credit in conditions similar to those practice in foreign markets to small 
and medium companies – with a turnover of up to  USD 600 million per year. The second aims to 
reduce interest rates of loans of companies of any size, making them closer to international practices.  
(ii) Comment on how each of these BNDES- EXIM programmes that "are geared to 
promote exports with local value added"  have been administered such that 
they remain WTO-consistent; and 
 
BNDES Exim credit lines are not contingent, neither in law, nor in fact, on local content requirements 
 
(iii) Share about the effectiveness of these programmes in helping exporters 
increase their business. 
 
BNDES Exim programmes do not aim at increasing exporters business as a measure of its 
effectiveness.  
Page 80, paragraph 3.157 
 8. APEX-Brasil works in partnership with private-sector associations representing 
81 manufacturing, commerce, and services se ctors. Sectoral support projects are 
divided into six broad categories: food and beverages; fashion; machinery and 
equipment; technology and health care; housing and civil construction; and entertainment services. Support for export promotion is given through the cofinancing 
of projects for up to 85% of the total value. As of Septem ber 2012, APEX-Brasil WT/TPR/M/283/Add.1 
 
- 223 - 
 
supported some 12,400 Brazilian companies, which accounted for 15% of total exports, 
and were destined to 132 markets. During 2009-11, APEX-Brasil allocated 
R$909.64 billion to trade and investment prom otion activities and R$129,831 million to 
operational expenses. We would appreciate if  Brazil could share the rubrics upon which 
the APEX-Brasil selects or dete rmines the worthiness of projects to co-finance, and how 
these endeavours have helped the companies increase their business.  
We appreciate Singapore´s interest in how Apex -Brasil´s resources are invested. First we would 
like to correct the data: the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) has not allocated 909 billion between 2009 and 2011 for export promotion and investment attraction;  
the correct figure is 929,933 million of reais. We would like to enquire the source for the 
Singaporean Delegation used, so that Apex-Brasil can provide clarifications. In 2012 
410,844 million of reais quere invested. APEX (www.apexbrasil.com.br) makes available the 
management reports from 2009 to 2011, including budget reports. 
 
Apex-Brasil promotes Brazilian products and services abroad and attracts foreign investments to strategic sectors of the Brazilian economy. Th e Agency organizes diversified trade promotion 
actions with the aim of promoting Brazilian expo rts and marketing Brazilian products abroad. The 
Agency´s efforts comprise, inter alia, business platforms like trade and prospective missions, business rounds, support to the participation of Brazilian companies in major international trade fairs, organization of technical visits of foreign buyers and opinion makers with the aim of 
introducing them to the Brazilian productive structure and other selected initiatives designed to 
strengthen Brazil´s brand. Apex-Brasil coordinates the actions related to foreign direct investment (FDI) attraction into Brazil, seeking to allocate resources in sectors of strategic relevance for the 
development of the competitiveness of Braz ilian companies and of the country itself. 
 The scope of activities comprehend: A) Market in telligence: market studies and analyses prepared 
with the aim of assisting companies and partners, identify the best opportunities for their business 
abroad; B) Entrepreneurial Training: building, cons ulting services and advice offered with the aim 
of increasing the competitiveness and promoting an export culture within the Brazilian business community, enabling companies to face the challenges posed by the international market. 
C) Internationalization Strategies: set of services designed to assist companies and partners in the 
definition of strategies for international market entry and the advance of their internationalization process. D) Business and Image Promotion: Actions developed with the aim of facilitating the 
access of Brazilian companies to international markets, diversifying the destinations of Brazilian 
exports and improving the international perception of Brazilian companies, products and services. The services comprised in this category enable entrepreneurs to keep direct contact with 
international business partners, who play a relevant role in the active and competitive insertion of 
Brazilian companies in foreign markets; and E) Investment Attraction: Actions developed to promote and facilitate foreign direct investment (FDI) attraction with the purpose of improving Brazil´s image as an attractive destination for the allocation of foreign capital, promoting the 
country´s development and competitiveness. Additionally, investment attraction actions are 
designed to encourage the transfer of innovative technology to Brazilian companies.  
Apex-Brasil works with 83 sectors of the Brazilian economy. The Agency has shown a strong 
partnership with the productive sectors, whic h is confirmed by the growing number of the 
companies involved in the initiatives. In 2006 Apex-Brasil worked with 46 sectors, in 2009 there 
were 74, reaching 83 in 2012. Furthermore the number of companies increased from 3.000 
in 2006 up to 12.414 in 2012. Sectors are selected taking into consideration the priorities of the industrial development planning of the Brazilian Government, as the last Production Development Program (Programa de Desenvolvimeto da Produção) and recently with the Major Brazil Plan 
(Plano Brasil Maior). Moreover, Apex-Brasil has an important role in contributing to the 
internationalization of small and medium enterprises´products, focusing also the exports of medium and high value added products. 
 
Page 97, paragraph 3.221  
9. The BNDES maintains a number of sche mes that facilitate access to credit. 
Operations under these credit lines may be ca rried out directly by the BNDES, or through 
accredited financial institutions. Projects e ligible for credit include: implementation, 
expansion, and modernization of fixed asse ts; new machinery and equipment produced 
in Brazil and accredited by the BNDES; produc tion of certain goods for export; offering WT/TPR/M/283/Add.1 
 
- 224 - 
 
or development of services for export; fore ign commercialization of eligible goods; and 
working capital associated with a fixed inve stment. We would appreciate if Brazil could 
share further details on how projects involv ing production of certain goods for export 
would be eligible for credit from BNDES, in particular, the specific production criteria, 
type(s) of goods and export criteria that projec ts have to fulfil to be  eligible for credit. 
 BNDES Exim Pre-Shipment credit line that finances production of certain goods for export is 
described at:  
 
http://www.bndes.gov.br/SiteBND ES/bndes/bndes_en/Instituci onal/The_BNDES_Abroad/For
eign_Trade/preshipment.html 
 
Trade Policies By Sector  
Pages 133 and 134, paragraph 4.69 
 10. In order to qualify for the INOVAR-AUTO,  vehicle manufacturers must comply with 
energy-efficiency requirements and meet at least three of the following four conditions: 
perform a minimum number of ma nufacturing 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 engineerin g, basic industrial technology, and supplier 
training; and participate in the Brazilian vehicle tagging programme (PBEV) for a 
minimum percentage of the company's output. These requirements are set to increase gradually, beginning in 2013 (Table 4.7).  
 
We would like to better understand how companies can qualify for the INOVAR-AUTO, specifically, the condition of "minimum numb er of manufacturing steps in Brazil for at 
least 80% of vehicles produced." Table 4. 7 – "Timetable for compliance with INOVAR-
AUTO Programme requirements (manufacturing  companies)" – states a total of 12 and 
14 manufacturing steps in Brazil for light vehi cles and heavy vehicles respectively. We 
would appreciate if Brazil could share the de tails of (i) the 12 manufacturing steps for 
light vehicles; and (ii) the 14 manu facturing steps for heavy vehicles. 
 The manufacturing steps are described in Decreto 7.819/2012, as amended by 
Decreto 8.015/2013. Please note that accredited companies choosing to manufacture automobiles 
in Brazil need only to perform part of the manufacturing steps.  
Page 161, paragraph 4.204 
 11. Brazil's airport infrastructure has not expanded at the same pace as economic growth and faces significant bo ttlenecks, in particular in São Paulo, the country's most 
important hub. According to IATA, 13 out of  20 major Brazilian airports are operating 
beyond capacity. Moreover, in addition to th e expected increase in domestic demand in 
the next few years, Brazil will host th e 2014 FIFA World Cup and the 2016 Summer 
Olympic Games, which will further strain its airport infrastructure. The Brazilian 
Government has committed to addressing thes e bottlenecks through public and private 
investments in infrastructure  under the Growth Acceleration Programme (PAC), and has 
adopted a concessions programme to allo w private participation in expanding 
infrastructure and operating airports (see pa ragraph 4.5.3.2.2). We would appreciate if 
Brazil could:  
(i) Share whether non-Brazilian companies would be able to participate in these 
concessionary programmes; 
(ii) If so, share details on  the criteria and procedures  for private (non-Brazilian 
companies) participation in thes e concessionary programmes; and 
(iii) How interested private participan ts would be able to find out more 
information on such programmes and opportunities for public-private 
investments in Braz il's infrastructure. 
 a. There is no restriction to the participation of foreign companies in national concession 
programmes provided that they comply with all the obligations established on the bidding 
documents; WT/TPR/M/283/Add.1 
 
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Brazil accepts FDI in almost all business activities, the more so after the constitutional distinction 
between foreign and national ownership of inve stment was removed in 1995. National treatment 
applies in principle and practice to foreign investment established through a Brazilian entity. No general FDI law exists in a modern sense
3 and no bilateral investment treaties (BITs) are in force. 
This appears not to have impeded FDI, since the legal framework for specific FDI measures offers 
workable conditions for foreign investors. Brazil's regulatory strategy towards FDI has been to operate a relaxed entry mode but to legislate specific constraints where typical commercial actions 
of foreign investors might not naturally conform to the national interest. In summary, Brazil is 
substantially open to FDI; restrictions apply to relatively few activities and even in these cases 
entry can be achieved by seeking approval.   
Aiming to attract investments and to foster synergies between Brazilian entrepreneurs and foreign 
investors, the Ministry of Development, Indust ry and Foreign Trade has published the Brazilian 
Official Guide of Investment Opportunities, gathering information on public projects and public-
private partnerships throughout the country, focusing mostly on infrastructure segments. The 
second edition of the Official Guide is soon to be published online at the Ministry's website: www.desenvolvimento.gov.br.  
 
b. All the criteria and procedures are normally informed for each specific Bidding process; 
 c. Bidding documents are normally published on the Sector Regulatory Agencies websites, as 
follows: 
 
Energy: 
 
National Electricity Agency: www.aneel.gov.br National Agency for Oil, Natural Gas and Biofuels: www.anp.gov.br 
 
Transport: 
 
National Land Transport Agency: www.antt.gov.br 
National Agency of Waterway Transportation: www.antaq.gov.br 
National Agency for Civil Aviation: www.anac.gov.br 
 
Concession rules for participation in the bid for the next airports to have their operational control 
transferred to private investors are still under public discussion. However, the rules applied to airports already conceded are as follows. It is allowed the participation of the following bidders, 
individually or in consortium: Brazilian or foreign legal entities, pension funds and investment 
funds. A single entity, its parent, subsidiaries, affiliates or entities under common control may not participate in more than one consortium. There can be no change in the consortium until the date of contract signature. Airport Operator must have at least 10% of consortium participation. 
Nevertheless, there are some restrictions in participation, such as entities convicted of 
environmental crimes, officials or technical managers who have worked at ANAC, Ministry of Defense (MD), Secretary of Civil Aviation (SAC) and Infraero in the last 180 days. Besides that, 
airlines, its parents, subsidiaries and affiliates, individually or in consortium, in a proportion equal 
to or greater than 2% and airlines parents and affiliates, controlled or also affiliated to Brazilian public law entities (or from another country that has signed air services agreement with Brazil) in 
a proportion greater than 20%. 
 Information on infrastructure projects and concession programmes can also be found on the following websites: 
 
Empresa de Planejamento e Logí stica – EPL: www.epl.gov.br  
Logistics Investments Program:  www.logisticsbrazil.gov.br 
 
                                               
3 That is, a national law with prin ciples and process governing the re gulation of FDI entry and setting 
out standards of foreign invest or treatment and protection. WT/TPR/M/283/Add.1 
 
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WT/TPR/G/283 
 Trade Policy Developments  
Page 13, paragraph 3.2, Page 19, paragraph 4.6 
 12. We note that the period 2009-2012 was marked by significant surpluses in goods 
trade: on average US$24 billion, with a pe ak of US$29.8 billion in 2011. During the 
period under review, Brazil has diversifie d the destination of its manufactured and 
agricultural goods. The Brazilian Chambe r of Foreign Trade (CAMEX) has also 
established principles and rules, to be observ ed by government agencies, with a view to 
improving trade procedures, creating a more  favourable environment and expediting 
commercial exchanges. CAMEX intends to reduce red tape and the regulatory burden, to streamline procedures, to improve transpar ency and to strengthen security. The 
objective is to reduce inspections by impr oving risk management systems; granting 
"Authorized Economic Operator" status fo r traders with good compliance records; 
reduce transaction costs; and develop auto mated systems and technologies to improve 
information exchange betw een border authorities. 
 We recognise that supply chain security will be more critical than before in view of the 
huge increase in Brazil's exports during the pe riod under review. We would appreciate if 
Brazil could explain the security compon ents implemented under the "Authorized 
Economic Operator" programme, and elaborate on how a Brazilian enterprise obtains its 
"AEO" status. 
 
The Brazilian project on Authorized Economic Op erators is still under discussion within Customs 
authorities, further clarification on its final form is not available at present. 
 
Trade Institutional and Regulatory Framework 
 Pages 19 & 20, paragraph 4.8  
 
13. Some of the results achieved by GT FAC include (i) the establishment of the 
Brazilian Foreign Trade Gateway (www.comexbra sil.gov.br), which contains the main 
requirements, procedures and regulations rela ted to foreign trade, especially imports, 
and links to the sites of all government agen cies involved with fo reign trade; (ii) the 
improvement of electronic systems with a vi ew to reducing average clearance times, 
using the single window approach; (iii) the setup of an Instantaneous Imports Licensing 
Deferring tool, intended to speed up appr oval of import licenses; and (iv) the 
development of governmental qualification an d training programs on trade facilitation 
for border control officials. We would apprec iate if Brazil could elaborate on the Single 
Window approach and share the names of  the government agencies which are 
supportive of and currently using this approach.  
The single window is definitely one of the main measures related to trade facilitation policies being 
discussed in Brazil. The current single window approach in Brazil focuses on integrating all trade r e l a t e d  s y s t e m s  u s e d  b y  d i f f e r e n t  a g e n c i e s  i n  B r a z i l  w i t h  S I S C O M E X  ( B r a z i l i a n  F o r e i g n  T r a d e  
System), which is traditionally the main system for registration of foreign trade operations.  
 However, after almost twenty years of the intr oduction of the SISCOMEX, different agencies 
adopted paper forms and independent electronic systems for the registering of  foreign trade 
operations.  
 The lack of integration of these independent elec tronic systems with SICOMEX introduced complex 
red tape and the requirement of registering the same data in different systems by different 
agencies. In this regard, it is essential to update SISCOMEX considering the latest development in the Brazilian foreign trade and the best practices observed internationally in trade facilitation. 
 
Among the participating agencies of the Brazilian single window approach are: the Secretariat of the Federal Revenue of Brazil (RFB), Secretaria t Foreign Trade (SECEX), National Agency of 
Petroleum, Natural Gas and Biofuels (ANP), Nati onal Agency for Sanitary Surveillance (ANVISA), 
National Council for Scientific and Technological Development (CNPq), National  Department for WT/TPR/M/283/Add.1 
 
- 227 - 
 
Mineral Production (DNPM), the Federal Police Department (DPF), the Brazilian Postal company 
(ECT), Army Command (COMEXE), Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), National Institute of Metr ology, Standardization and Industrial Quality 
(INMETRO), Ministry of Agriculture, Livestock an d Supply (MAPA), Brazilian Electricity Regulatory 
A g e n c y  ( A N E E L ) ,   N a t i o n a l  C i n e m a  A g e n c y  ( A N C I N E ) ,  M i n i s t r y  o f  S c i e n c e ,  T e c h n o l o g y  a n d  
Innovation (MCTI), Superintendence of the Manaus Free Zone (SUFRAMA) and the Secretariat of Ports (SEP). 
 
Page 20, paragraph 4.14  14. We note that the National Centre for Customs Risk Management (CERAD) was 
created in 2012 with the primary mission of  coordinating and guiding the studies and 
research aiming at the selection of operatio ns of foreign trade and for the verification 
and identification of areas of greater risk to  the customs control. We would appreciate if 
Brazil could share the names of the government agencies which are involved in the 
National Centre for Customs Risk Mana gement and the type of involvement. 
 
In fact, it is necessary to correct paragraph 3.19 of the report by the Secr etariat of the WTO, once 
the CERAD is not an inter-ministerial body, but does part of the Brazilian Customs. One of its main functions is to coordinate the activity of cu stoms risk management. In that sense, CERAD 
occasionally works with information from other government agencies and can work with them to 
identify violations of the controls applied over the restricted goods. WT/TPR/M/283/Add.1 
 
- 228 - 
 
SOUTH AFRICA 
WT/TPR/S/283 
 Banking, Finance and Insurance 
 
4.  Trade Policies by Sector : (4.5) Services (4.5.1) Finance, Banking and Insurance: 
paragraph 4.140, page 149 
 
The Secretariat's Report notes that an appl ication for authorisation, from the Central 
Bank, for the establishment of a new foreign financial institution, must specify the benefits to the Brazilian economy. 
 
1. Would Brazil elaborate on the criteria that  is applied in assessing applications for 
authorization? 
 
As mentioned on paragraph 4.140, the criteria named "Benefits to the Brazilian economy" is presumed on the simple establishment of foreign ba nks in Brazilian market, or the increase of the 
capital for the ones already present, as declared on  the Ministry of Finance Statement of Principles 
number 311/95. Notwithstanding, this presumption may be elicited by deficiencies of the application, referred on CMN Resolution nº 4.122 an d BCB Circular nº 3.317. Such deficiencies, as 
insufficient capital or unviable business plan, co uld represent a possible risk to the soundness of 
the Brazilian Financial System. It should be noted that the same criteria for approval are opposed 
to Brazilian and foreign postulants, what means equality of treatment. Also, in order to ensure financial stability (the crisis of 2007-2013 highlighted the socioeconomic consequences arising 
from inadequately regulated financial systems), the Banco Central do Brasil (Central Bank of 
Brazil) is rigorous in the review process and authorization for FIs. There are no distinctions between domestic and foreign – this process only aims to ensure financial stability. Once the 
financial institution being established in Brazil, it will be treated as domestic institution. The rules 
and procedures for installation are public and available for consultation on the website of the institution – Sisorf (National Financial System Organization Manual), elaborated by the Banco Central do Brasil (Central Bank of Brazil) (http://www.bcb.gov.br/?NFSMA NUAL). The applicant 
receives official response, explaining the reasons in case of rejections – including access to the full 
content of the internal process of BCB – be ing open-term to appeal. The requirement of 
"Presidential Decree" to foreign FIs is prescribed by the Federal Constitution in the Article 52 of the 
Temporary Constitutional Provisions Act – ADCT (based infra is § 2 of art. 10 and art. 18 of 
Law 4595). Restrictions have been eased in the Presidential Decree of 1996 (Decree unnumbered of December 9, 1996 – http://www.planalto.gov .br/ccivil_03/DNN/Anterior%20a%202000/1996/ 
Dnn4857.htm), when it began to consider the nation al interest to purchase shares of non-voting 
FIs by persons or entities resident, domiciled or headquartered abroad. From the technical analysis 
of the Banco Central do Brasil there are no restrict ions as to the origin of capital and the practice 
has been for the Decree to follow the technical recommendation of the BCB. 
 
4  Trade Policies by Sector: (4.5) Services (4.5.1) Financial servic es: paragraphs 4.165, 
page 153 
 
The Secretariat's Report notes that the establishment of a foreign life or non-life insurance company requires approval from SUSEP. 
 
2. Would Brazil describe the criteria by which foreign financial institutions are 
assessed?  
Resolution 166/2007 of the National Council for Private Insurance (CNSP) regulates the 
administrative process for the establishment of insurance companies in Brazil and for granting 
license for operation. According to said rule, those interested in such establishment and licensing 
have to apply for a previous authorization with SUSEP. Among other documents, this application 
must be accompanied by a business plan, proof of economic and financial capacity proportionate to 
the size, nature and objectives of the intended co mpany, including proof of the origin of the funds 
that will be allocated to the company by all participants of the controlling partner or partners and 
by those holding qualified interest in the company. WT/TPR/M/283/Add.1 
 
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It is important to note that (1) as stated in  paragraph 4.164, page 153, "Foreign insurance 
companies providing insurance of any kind, except reinsurance, are required to be incorporated under Brazilian law, in the form of a corporation", and (2) the requirements set by Resolution 166/2007 are the same for the establishment of a ll insurance companies, notwithstanding whether 
their partners are national or foreign investors. 
 Air Transport and Airports 
 
4  Trade Policies by Sector: (4.5) Servic es (4.5.3) Air Transport and Airports: 
paragraph 4.208, page 162  
According to the Secretariat Note it states that domestic public air transport services 
(cabotage) are reserved to Brazilian legal persons.  Foreign enterprises wishing to 
provide regular international air transpor t services must be designated by the 
Government of their home country, and obtain  an authorization to operate in Brazil and 
an authorization to operate air services.  
3. Can Brazil elaborate on this authorizat ion process for foreign service providers 
operating air services in Brazil?  It is important to clarify that foreign air carriers cannot operate services inside Brazil (cabotage). 
In other words, they cannot transport passengers or cargo between two airports in the Brazilian 
territory. In order to obtain the authorization to operate in Brazil (after Air Services Agreement 
(ASA) between the Parties), a foreign airline must appoint a legal representative in Brazil and 
produce the documentation required in conformity with the Brazilian Aeronautical Code – CBAer 
(all documents must be legally translated into Portuguese language). If the airline intends to operate air services to/from Brazil, and once it ha s the necessary authorization to operate, it has 
to apply for a specific authorization (operational authorization) which involves technical 
requirements.  
 Maritime Transport and Ports  
 
4  Trade Policies by Sector: (4.5) Servic es (4.5.4) Maritime Transport Services: 
paragraph 4.226, page 165  
 
According to the Secretariat Note it states that ships under construction in a shipyard located in Brazil may be registered in the Sp ecial Brazilian Registry (REB), and hence be 
eligible for incentives aimed at fostering the development of the national shipbuilding 
industry.  4. Can Brazil elaborate on the ty pe of incentives provided?  
 
The Special Brazilian Registry (REB) provides fo r tax exemption (II - when appropriate-IPI, PIS 
and COFINS) of inputs, parts and equipment, im ported or domestic, used for construction, 
maintenance, modernization and repair of vessels  pre-registered or registered this regime. 
 Moreover, the official financing to Brazilian shipping company, construction, conversion, 
modernization and repair of vessels pre-registered in the REB, will have interest rates similar to 
the vessel for export to be equalized by the Merchant Marine Fund.  Professional Services 
 
4  Trade Policies by Sect or: (4.5) Services (4.5.5 ) Professional services: 
paragraph 4.248, page 169 
 
The Secretariat Report notes that foreign providers are not allowed to own or manage companies specialized in invest igation and security services. 
 
5. Can Brazil elaborate on the policy ration al for the restriction imposed on foreign 
providers from owning or managing companie s specialized in investigation and security 
services?  
 WT/TPR/M/283/Add.1 
 
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Law 7.102/1981 restricts the property and manageme nt of private security companies to Brazilian 
nationals. Changes in legislation are not currently envisaged.    4  Trade Policies by Sect or: (4.5) Services (4.5.5 ) Professional services: 
paragraph 4.249, page 169 
 The Secretariat Report notes that Professional s with foreign qualifications must obtain 
revalidation of their degrees from a university recognized by the Ministry of Education, 
and meet the requirements establishe d by law to practice in Brazil. 
 6. Would Brazil provide details as to whet her revalidation and recognition of foreign 
degrees entail additional exams for foreign applicants?  
 According to Law 9.394/1996, foreign degrees must be  revalidated by a Brazilian public university 
that offers an equivalent degree recognized by the Brazilian government.  In case of doubt as to 
the equivalence of the foreign degree, the evaluation committee established to assess the application may require additional exams, which shall be performed in Portuguese. The applicant 
may also be required to perform additional studies, if minimum requirements are not met.  
 4  Trade Institutional And Re gulatory Framework (page 18) 
 
4.1.4  Competition policy (page 21) 
 4.22. The new regime also established ne w notification thresholds. Until 2012, 
notification was based on the market share and the annual gross revenue of the merger. 
The new law eliminated the market share cr iteria and updated the revenue criteria. 
Currently, a merger must be notified for a pproval if the annual gr oss revenue in Brazil of 
one of the parties is equal to or greater than US$375 million and if the second party's 
revenue is greater than US$37.5 million. Th e new threshold has reduced the number of 
mergers that require examinat ion by CADE, allowing the agency to focus on more 
significant anticompetitive cases. 
Table 1 Competition enforcement, 2008-12 
 2008  2009  2010 2011 2012  
Total complaints/requests: 783  548 835 858 955  
Merger notification filings 638 474 660 716 825 
 Reviewed 609  457 615 695 704  
 Not reviewed  18 11 30 13 112 
 Desisted 11  6 15 8 9  
Leniency applications 2 4 8 1 10 
Examinations and inquiries concluded: 803  538 765 814 822  
Mergers 609 457 615 695 704 
 Approved without restrictions 550  437 588 649 565  
 Approved with restrictions 58 19 27 48 36 
 Disapproved 1  1 1 0 8  
Total administrative fines (R$ million) .. .. .. 31 45 
Number of civil court sentences .. .. .. .. ..  
Appeals (against 1st instance decisions) .. .. .. .. .. 
Decisions reversed/amended on appeal ..  .. .. .. ..  
 
7. Explain what drives the rise in the merg er notifications despite the introduction of 
a new threshold which supposedly should ha ve reduced the number of mergers that 
need the attention of CADE? 
 
In May 2012, a new Competition Law entered into force in Brazil (Law 12.529). The new law introduced significant changes to the structure of the governmental agencies in charge of 
competition policy enforcement in Brazil, which includes mergers and unilateral and coordinated 
anticompetitive conducts control. CADE became the center of the Brazilian Competition Policy System (SBDC), and is in charge of all competition enforcement matters, including investigations 
of anticompetitive practices and mergers review. The rise in merger notifications occurred in 
early 2012, before the new Competition Law entered into force. This most certainly happened WT/TPR/M/283/Add.1 
 
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because the market and the enterprises were unsure of how CADE would work under the new Law, 
which probably stimulated a rush on the mergers that were being considered. However, after the entry into force of the new Law, the number of merger notifications was actually reduced, and CADE was able to reduce the average analysis time of the mergers to 25 days, building trust and 
confidence within the society towards the efficiency of the new Law and the New CADE itself. 
 3.4  Measures Affecting Production and Trade 
3.4.1  Competition policy and price controls 
3.4.1.1  Competition policy (page 81)  3.169. The fines for infractions committed by companies have also been modified; 
formerly ranging from 1% to 30% of gross tu rnover in the last fiscal year, they are 
currently set at 0.1% to 20% of gross turnover  in "the branch of activity" affected by 
the anti-competitive conduct in the fisc al year preceding the administrative 
investigation's commencement. This may result  in a lower deterrent effect with respect 
to previous legislation, since prospective fines may be lower, and their application 
complicated by the need to determine the bran ch of activity of an infraction. Modalities 
for the implementation of this new concept have yet to be adopted. According to the 
authorities, the reduced range for the fines was motivated by the inability of managers 
to pay in cases where both the company and its managers were fined for an infraction. 
 
8. Please explain how "the bran ch of activity" is determined? 
 There are 144 branches of activity that were liste d on Resolution n. 3 of the New Cade, issued on 
29 May 2012 – the same day of the new Competition Law. By doing so, CADE aims to give society 
more juridical security and predictability, which helped the new CADE earn the trust of both private and public sectors. 
 
9. Wouldn't reducing the fine be adequate to mitigate the severity of fines imposed 
on managers?  
Yes, it would. That was actually one of the mo tivations behind the reduction of the minimum and 
maximum percentage of the fines imposed on  companies and managers that hampered 
competition (the percentage went from 1% - 30%  to 0,1% - 20% of the gross turnover of the 
latest fiscal year). 
 Measures directly affecting exports 
 
10. Can Brazil explain which products are affected and what those special export 
procedures entail?  
3.101. A number of products are subject to special export procedures, including exports 
subject to specific standardization and classi fication requirements, export taxes, export 
licences, or country specific tariff quotas in certain markets under Brazil's international 
agreements. (page 68) 
 A number of products are subject to special export procedures, including exports subject to 
specific standardization and classification requirements, export taxes, export licenses, or 
country specific tariff quotas in certain markets under Brazil's international agreements. Annex XVII of SECEX Ordinance No. 23 of 14 July 2011 contains a list of goods subject to special export procedures. These include: export s of certain types of bovine meat to the EU 
under the "Hilton quota"; and exports of poultry meat and poultry meat preparations to the 
EU subject to country-specific tariff quotas; exports of sugar and confectionery products to the EU subject to export licenses; milk exported to Colombia under MERCOSUR quota; frozen 
lobster, pine wood, granite in block, and marble (all four products subject to 
standardization); cigarettes, and skins and hides subject to export tax; precious stones, which may be sold in foreign currency to non-residents; and arms and ammunition subject to 
export tax and other restrictions. 
 Since Brazil's last Review, two products have been removed from the list (Coffee – HS 0901.11.10 and ethylic alcohol - HS 2207.10.00 and 2207.20.10). 
 WT/TPR/M/283/Add.1 
 
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11. Is Brazil planning on notifying its ne w mutual recognition agreements (MRA's)? 
 Brazil has notified to the WTO all agreements on mutual recognition under the TBT Agreement. 
Any new agreement reached will be notified. 
 
(ref) 3.76. Brazil does not grant equivalenc e to technical regulations adopted by any 
trading partner, but accepts equivalence in te st results. Brazil did not notify to the WTO 
of any new mutual recognition agreements (M RAs) on conformity assessment during the 
review period; its five notifications dating back to 2003 were cove red in the Secretariat 
Report for Brazil's previous Review. (Page 63)  
12. Can Brazil explain what criteria it uses and how the tests are conducted on 
technical regulations to establish equivalence?  
Each of the 33 Brazilian regulators has the autonomy  to define acceptance cr iteria for equivalence. 
 (ref) 3.85. Between January 2009 and Janua ry 2013, Brazil adopted 782 standards, 
359 technical regulations, including those  harmonized at MERCOSUR level, and 
53 compulsory conformity assessment proced ures. During the same period, the WTO 
Committee on Technical Barriers to Trade was notified of 145 draft technical regulations 
and 71 conformity assessment procedure relati ng to international trade. A number of 
Brazil's notifications during the review period ran short of the minimum period 
(60 days) for the submission of comments by Members. (Page 65) 
 
13. Can Brazil provide a list of the sectors that were affected by the new additional 
standards introduced in the last five years?  
The regulations issued in the last five years having effect on international trade have been notified 
to the WTO under the TBT agreement.  (ref) 3.85. Between January 2009 and Janua ry 2013, Brazil adopted 782 standards, 
359 technical regulations, including those  harmonized at MERCOSUR level, and 
53 compulsory conformity assessment proced ures. During the same period, the WTO 
Committee on Technical Barriers to Trade was notified of 145 draft technical regulations 
and 71 conformity assessment procedure relati ng to international trade. A number of 
Brazil's notifications during the review period ran short of the minimum period 
(60 days) for the submission of comments by Members. (Page 65) 
 
14. Can Brazil explain if these technical regulations, standards and compulsory procedures are applicable to imported products or if it only applies to products produced 
in their domestic market? 
 
In conformity with the national treatment principle, all Brazilian technical regulations apply to products manufactured domestically or in a foreign country. 
 WT/TPR/M/283/Add.1 
 
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SWITZERLAND 
WT/TPR/S/283 
 Summary 
 
1. In paragraph 29 of the Summary, the Secretariat's report notes that, as from 1 January 2013, the automotive sector's fisc al regime was superseded by the INOVAR-
AUTO program. As a result, companies elig ible for the program may benefit from an 
Industrial Products Tax reduction of up to  30%. In order to qualify for the program, 
vehicle manufacturers must comply with en ergy efficiency requirements and with 
certain domestic manufacturing or investment  conditions. Could the Brazilian authorities 
indicate how they reconcile the local-cont ent requirements to benefit from the tax 
reduction with Article 3.1 b) of the WTO Agreement on Subsidie s and Countervailing 
Measures which prohibits subsid ies contingent, whether solely or as one of several other 
conditions, upon the use of domestic over imported goods? 
 INOVAR sets out technology and production requirements for the tax benefits that aim to attract 
investments in research, development and technological innovation as well as the performance of 
productive steps in Brazil.  Nothing in the WTO Agreements should be read as prohibiting a Member to establish conditions on production or on technology in a certain territory or to define levels of production or of technology thereupon. Domestic and imported inputs can be equally 
used. The exemption granted in the regimes would otherwise be converted in tax credits that can 
be offset, therefore the programs are fiscally neutral.   
2  Trade Policy Regime: Framework and Objectives 
2.5  International Relations 2.5.2  Preferential agreements 
2.5.2.2  MERCOSUR 
 2. The report of the Secretariat mentions in  paragraph 2.45 that the negotiations for 
a Free Trade Agreement between MERCOSUR and the European Union are ongoing after 
they have been relaunched in May 2010. Could the Brazilian authoritie s indicate when it 
intends to conclude these negotiations?  
Negotiations between MERCOSUR and the Euro pean Union are in progress and have seen 
significant improvements since the CELAC-EU Summit, when leaders from both sides met in Santiago, Chile, in January 2013. At this meeting,  it was agreed that both sides will exchange 
offers by the end of 2013. 
 3.  Trade Policies and Practices by Measure 3.1  Introduction 
 
According to paragraph 3.10., a revision to the Tendering Law introduced in 2010 significantly altered Brazil's procurement legisl ation to make the granting of preferences 
a permanent feature of the regime. To this en d, preferential margins of up to 25% may 
be granted for goods and services produced  nationally. The preference margins for 
particular products, services or sectors are determined by the Interministerial 
Commission for Public Procurement. This di sadvantages companies that - even though 
they create jobs and innovation locally - rely  on economies of scale with production sites 
abroad. Could the Brazilian authorities ex plain the rationale behind introducing 
preference margins of up to 25% in 2010? Does the government of Brazil intend to 
review this policy in the near future?  
 The idea behind the policy is to grant efficiency to  the bidding processes. In this sense, the policy 
is in consonance with the promotion of social and economic development and in accordance with 
the fundamental principles governing the public se ctor action. The policy of margins of preference 
is subject to constant evaluation, but at the moment Brazil has no plans to discontinue it. 
 WT/TPR/M/283/Add.1 
 
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3.2.  Measures Directly Affecting Imports  
3.2.1  Procedures  Paragraph 3.14: Switzerland understands that legal entities and individuals which wish 
to operate within SISCOMEX need a prior ac creditation from the Secretariat of Federal 
Revenue of Brazil. Companies can apply for three different types of habilitations: express, limited and unlimited habilitation. In order to obtain limited or unlimited 
habilitations, an estimated financial capacity  for foreign trade transactions during a 
period of six months is asserted. These two habilitations enable for transactions that 
either exceed a total of US$ 1 50'000 (unlimited habilitation) or that are equal to / less 
than US$ 150'000. Does a trader in possession  of a limited habilitation have to submit 
an application once again in order to be able to import more than the previously 
determined financial capacity estimate? Ar e there any possibilities for an accelerated 
and administratively less burdensome procedur e to do so? Do traders with an unlimited 
habilitation not have any import cap at all and can therefore substantially exceed the 
determined financial capacity estimate?  
There are two main reasons for the procedure of a ccreditation: to make possible for a trader to 
access the Integrated Foreign Trade System (SISCOMEX) through a password; and is a way to avoid fake companies and the interposition of third parties to international trade.  
In principle, this procedure needs to be done once , but a trader with a limited habilitation can any 
time apply for a limited one, provided he can produce additional information.  
As mentioned, this procedure is done, in principle, once. Insofar as this procedure is free of charge 
and is valid indefinitely, the Brazilian Customs believes this procedure is necessary and not as burdensome as it might seems. 
 
As the name itself translates, there is no limit of operations for an unlimited habilitation.  5. Could the Brazilian authorities please  explain in detail the procedures and 
information required in order to obtain an unlimited habilitation? What are the 
differences compared to the application procedures and information required for a limited habilitation? 
 
The application procedure for both are the same: the trader must apply on a specific form, available at Customs website, and present it to any Customs office including its constitutional 
documents and a copy of a manager's ID. Occasionally, traders can receive a visit from its 
supervising Customs office to ensure that record s and information submitted are adequate and to 
clarify details of the application.  
When a limited habilitation is issued, the trader can submit a new application and provide sufficient 
information to support its application.  
6. Could the Brazilian authorities furthermor e please elaborate on how Brazil ensures 
that this scheme is not more administrative ly burdensome than ab solutely necessary to 
administer the measure and does not result  in a de facto restriction on trade?  
 
Please, see answer to question 5.  7. We understand that Brazil do es not have a publicly available record of registered 
operators or their habilitation modalities. Such a record would, however, greatly 
increase transparency and facilitate export ing companies' decisions when choosing their 
prospective trading partners in Brazil. Whic h future steps do the Brazilian authorities 
foresee in order to provide transparency  on the trade habilitations granted? 
 In Brazil, the trader retains rights over some information submitted and its disclosure is prohibited. 
That's the case of information that could reveal the economical situation of the trader; therefore, 
Customs are not allowed to do so.  WT/TPR/M/283/Add.1 
 
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3.2.3. Tariffs  
3.2.3.1 Applied MFN tariff, paragraphs 3.36 to 3.38  8. According to paragraph 3.36, a MERCOS UR decision to increase the number of 
tariff lines to 200 for which temporary tari ff increases are possible was still pending in 
March 2013. Could Brazil indicate whether the decision has been taken and if the 
number of tariff lines has been increased to  200? Also could Brazil indicate when the 
decision has or will come into force? If th e number of tariff lines has been increased, 
could Brazil indicate which products would be  possible candidate for the inclusion on the 
list?  
Decision of the Council of the Common Market MERCOSUR No. 25/12 is in the process of 
incorporation into the Brazilian legal system. Th erefore, the agreement has not yet entered into 
force and will be in force after only the public ation of a presidential decree on the subject. 
 
Nevertheless, the Brazilian government held public consultation regarding the claims made by the private sector with a view to lifting the temporary tariff protection of the CMC Decision No. 39/11. 
The products that were the subject of these claims are listed in Annex II of the CAMEX Resolution 
No. 12 of 08 February 2013.  9. According to paragraph 3.37, Brazil can maintain a basic list of national 
exemptions until 31 December 2015. Up to 20% of the lines on that list may be altered 
within a six-month period. Could the Brazilian au thorities provide the actual list of those 
products (HS codes and product description an d level of the duty) or an Internet link 
where the information is available? 
 The list of exemptions from Brazil to the MERCOSUR Common External Tariff can be found on the 
following link: http://www.mdic.gov .br/arquivos/dwnl_1367843883.xls 
 10. According to paragraph 3.38, Brazil can maintain a list of IT and telecommunication equipment (BIT list) until end-2015. Rates are normally reduced to 
2%, or in a few cases to 0%. Could the Brazil ian authorities indicate the rate applicable 
for 2013? Could the Brazilian authorities, furt hermore, also indicate what will happen at 
the end of 2015, i.e. will the rates for the products on the BIT list be increased or 
maintained at 2%? 
 Exceptions to the MERCOSUR Common External Tariff applied to Telecommunications and 
Information Technology goods - BIT concern both goods with temporary reduction to support the 
mechanism of Ex Tariff, as the codes of the MERCOSUR Common Nomenclature in force in Exception List.  
The files relating to the above mechanisms can be found, respectively, in the links below: 
<http://www.mdic.gov.br/arquivos/dwnl_1370355 763.pdf> and http://www.mdic.gov.br/ 
arquivos/ dwnl_1345750734.xls>. 
 
Finally, it is worth mentioning that the MERCOSUR Common Market Council Decision 57/10 allows for exceptions to tariff codes of the MERCOSUR Common Nomenclature for BIT goods, in the 
particular case of Brazil, by the end of 2015. The aforementioned rule further provides that in the 
year 2014 a proposed common system for information technology and telecommunications goods not produced in MERCOSUR is expected to enter into force from 1 January 2016.  
3.2.3.2  Bindings, paragraph 3.40- 3.41 
 According to paragraph 3.40, Brazil has bound "other duties and charges" for only one 
line and the duty is not applied. Could th e Brazilian authorities indicate whether it 
applies "other duties and charges" for tari ff lines other than HS9014.80.0400 and if so 
what are the current rates? 
 
No.  12. According to paragraph 3.41, some 12 0 CET lines exceed, sometimes partially, 
Brazil's bindings; the authorit ies note that in all such cases importers may request WT/TPR/M/283/Add.1 
 
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application of the bound rate. Could Brazil ex plain why the importer has to request the 
application of the bound rate, instead of a mechanism that would automatically limit the 
level of the duty to the level of the bound rate? 
 
The Brazilian government is working on this issue. 
 3.2.4  Other charges affecting imports, paragraph 3.44 
 
13. In paragraph 3.44 (as well as in other paragraphs throughout the report, e.g. 
paragraph 2; 1.19; 1.2.; etc.) the report by the Secretariat repeatedly points out tax 
collection as a major structural shortcomin g due to the complexity of Brazil's tax 
system. The report indicates that Brazilian co mpanies disburse on average 67% of their 
profits on taxes and charges and spend some 2,600 hours calculating and paying taxes, 
while the average in Latin America is 392 hours. Considerable differences between 
federal entities further add to complexity. Do the Brazilian authorities have plans to 
simplify the country's complex tax system and if yes, what are th e measures that are 
envisaged? 
 
Proposals are being discussed by the Brazilian Nati onal Congress in order to review and update 
Brazilian tax regulations  
3.2.5  Duty and tax exemptions and concessions 
 14. Paragraph 3.52. indicates that Brazil ratified the Convention on Temporary 
Admission (Istanbul Convention) in August 2011. Parties to this Convention are to 
designate a national guaranteei ng organization, which is entitled to issue the so-called 
ATA-Carnets and may authorize local chambers on the national territory to deliver them 
on its behalf.  Could Brazil indicate whet her it has already fully implemented the 
Istanbul Convention?  Brazil has not yet fully implemented the Istanb ul Convention. In Brazil, the Convention was 
internalized by the Decree 7.545/2011, but the Convention has not yet been regulated and neither 
has defined the national guaranteeing organization. The Brazilian customs administration is still working to make the convention compatible with the domestic laws. Only after the publication of 
specific regulations establishing procedures for its operation, will the provisions established in the 
Decree enter into force in Brazil.  
3.2.7  Contingency measures 
 15. According to paragraph 3.58, trade defense has been identified as component of the Plano Brazil Maior. Could the Brazilian au thorities provide more details on how it 
intends to incorporate trade remedies in conf ormity with the relevant WTO rules into its 
future trade policy?  
All trade remedies investigations in Brazil are carried out in accordance with the relevant WTO 
rules. It is the Brazilian intention to keep this approach.  
16. Paragraph 3.63 states that in exceptiona l circumstances, for reasons of national 
interest, the Brazilian authorities (namely th e Chamber of Foreign Trade, CAMEX) may 
decide to suspend the application of de finitive Anti-Dumping or Countervailing 
measures, to impose a defi nitive measure in an amount different from the one 
recommended by DECOM. Could the Brazilian auth orities please elabor ate in more detail, 
what the terms "exceptional circumstance s/reason of national interest" mean? 
 
There is no definition of the terms "exceptional circumstances/reason of national interest". Any 
decision CAMEX might make based on those terms will be analyzed on a case-by-case basis.  
3.2.7.2  Anti-dumping and countervailing measures 
3.2.7.2.2  AD/CVD use during the review period  17. In paragraph 3.68, the Secretariat's report indicates that Brazil had 83 anti-
dumping measures in force as of 30 June 2012 and that 47 new investigations were WT/TPR/M/283/Add.1 
 
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initiated in 2012. Could the Brazilian authoritie s indicate how they reconcile the massive 
use of the AD instrument with the developmen t of Brazilian companies involved in global 
supply chains and which require as open as possible access to imported inputs? Also, have any studies been made in Brazil on th e impact of AD/CVD measures on Brazilian 
companies involved in global supply chains an d, if any, what were the results of these 
studies?  
Initiation of trade remedies investigations in Brazil is made in conformity with the relevant WTO 
rules. As far as Brazil is concerned, WTO trade remedies disciplines do not include any requirement regarding global supply chains.  
Concerning the impact of AD/CVD measures on Brazilian companies involved in global supply 
chains, no studies have been made yet in Brazil.  
3.2.9  Sanitary and phytosanitary measures 
 18. According to paragraph 3.91., importers of pharmaceutical products must obtain 
an authorization from the National Health Vi gilance Agency (ANVISA)  and a license from 
a state or municipal sanitary authority. In this context, ANVISA regularly carries out 
inspections abroad. The financial burden for companies is considerable and especially SMEs cannot afford the costs of these insp ections. The certificate delivered after a 
successful inspection is valid for two years.  According to an announcement by ANVISA 
of April 10, 2013, the government of Br azil currently studies the possibility of 
recognizing inspections of other national ag encies and certification bodies, reducing 
thereby by 70% the approximately 600 inspec tions performed by ANVISA every year. 
Has there been any progress in this regard recently? 
 
It is under consideration of the Anvisa (Brazil Health Surveillance Agency) Board of Directors to 
publish a Technical Regulation which will allow the recognition of GMP certificates issued by other countries' Health Authorities, provided there is reciprocity, i.e., mutual recognition of GMP certificates. The draft technical regulation will be opened to public consultation, which will provide 
a comment period to interested parties. After the consolidation of the comments received, the 
Anvisa Board of Directors will take its final decision.  
It is important to clarify that Anvisa will publish the draft Technical Regulation for comments after 
the publication of the amendment of Decree 79094/77, which defines requirements for the 
commercialization of pharmaceutical products in Brazil. This Decree is being revised at the 
moment. 
 19. With regard to paragraph 3.94, Switzerland would like to ask whether Brazil follows the FAO's International Code of Conduct on the Use and Distribution of 
Pesticides, the Guidelines for the Registra tion and Control of Pesticides, and the 
Guidelines for Legislation in the Control of Pesticides. In particular, Switzerland would 
like to ask Brazil to provide information on what measures its regulatory and 
institutional scheme provides to detect  and control illegal trade in pesticides. 
Furthermore, Switzerland would welcome clarifications on how Brazil assures 
registration practices for previously not ma rketed pesticides not to be more trade 
restrictive than necessary, that is, both in terms of availability of transparent 
requirements for registration and timely decisions on applications. 
 The procedures for registration and regulation of pesticides in Brazil are aligned with those 
recommended in the FAO's International Code of Conduct on the Use and Distribution of 
Pesticides. Pesticides can only be produced, imported, exported, sold or used if previously registered at the Ministry of Agriculture (MAPA) . All products are evaluated in terms of their 
toxicology and ecotoxicology by the heal th and environment protection bodies.  
 Brazil has introduced the principle of registration by equivalence based on FAO rules and have 
been improved it in order to ensure the chemical  equivalence of pesticides, what makes Brazil an 
international reference for this topic.   WT/TPR/M/283/Add.1 
 
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The official database of the Brazilian government  is the AGROFIT, which lists and details every 
pesticide registered for agricultural use. There are strategies developed by MAPA with the federal police, environmental agencies and state ag encies to prevent pesticide smuggling.  
 
Brazil has joined all relevant international conventions, and follows their recommendations on the 
restriction of substances in international transit or the acceptance of products with MRLs referenced on the Codex Alimentarius' standards,  guidelines and recommendations. Brazil has also 
imposed rules and deadlines for the evaluation of pesticides.  
 3.3  Measures Directly Affecting Exports 3.3.5  Export finance, insurance, and guarantees 
3.3.5.1  Overview 
 20. The link provided in Footnote 174 in Chapter 3.3.5.1  does not seem to be working, 
hence we would like to ask for some further details about the topic of national content: 
It is explained in the text that in certai n schemes a 60% National Content rule applies 
for the automatic procedure. How many export  financing transactions are granted within 
the non-automatic procedure (e.g. in % of total)? 
 The Brazilian Government does not have consolidat ed data on the percentage of products subject 
to the non-automatic analysis procedure. 
 
3.3.5.2  Export Financing Programme (PROEX)  
21. Paragraphs 3.135-3.141: Could the Braz ilian authorities explain whether Export 
Financing in Brazil does conclude reinsuranc e agreements with Export Finance Agencies 
of other countries? If so, for which countries? And if not are there any such plans for the 
near future? 
 No, Brazilian official credit doesn't reckon on reinsurance agreements with other countries ECAs.  
22. The summary mentions banking and expo rt financing. Are there also any private 
insurance companies providing export insura nce cover? If so, are there any specific 
markets where private insurance is active and the PROEX excluded?  
 
Yes, there are some private companies providing export insurance coverage in Brazil, but they 
work mostly in the short term operations. The relation between private insurance and Proex 
doesn't apply. Proex is a scheme of lending, not a scheme of credit insurance. 
 3.4  Measures Affecting Production and Trade 3.4.1  Competition policy and price controls 
 
23. Paragraph 3.164 indicates that due to the peculiarities of Brazil's judicial system 
and the number of distinct instances for appe als, appeals of CADE decisions may take 
several years to reach final settlement in co urt. Switzerland would like to know whether 
the government of Brazil has any plans to re medy this shortcoming in the framework of 
the undergoing changes in the competition policy system. If so, what are the measures 
the Brazilian authorities are planning to take? 
 Competition cases that are taken to the judiciary must follow regular Brazilian procedural Law, 
which means that, in order to make any changes in this regard a wider revision of the entire 
judicial procedural law should be enacted. 
 3.4.4  Government Procurement 
 
24. Paragraph 3.239: The Secretariat's report indicates, that Brazil is neither a party 
nor an observer to the WTO Plurilateral Agreement on Government Procurement (GPA) 
and that Brazil has presently no plans to jo in the agreement. Switzerland considers the 
opening of government procurement market s as an important objective and a basic 
pillar of economic relations and market access in a globalized world. The adoption of the 
revised GPA in 2012 provides appropriate instru ments to achieve this objective in more 
efficient way. Do the Brazilian authorities have  any future plan to become an observer WT/TPR/M/283/Add.1 
 
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and to start GPA-accession negotiations as it is the case for a number of other important 
trade partners ? If not, what are the reasons for it?  At the moment, Brazil has no plans to join the GPA. Brazil's position is grounded on Article III, 
Section 8, paragraph (a) of the GATT, which explicitly excludes government procurement from the 
obligations relating to national treatment.  
3.4.5  Intellectual property rights 
3.4.5.2  Legal and institutional framework 3.4.5.2.2  Patents and industrial design  
25. Paragraph 3.286 indicates that under Brazilia n law, a patent will be forfeited, ex 
officio or at the request of any party having  a legitimate interest, if, after two years 
since the granting of the first compulsory license, abuse or disuse has not been 
remedied, unless there are justifiable reason s. Could the Brazilian authorities please 
explain the procedure leading to a decision to  forfeit a patent and confirm that judicial 
review according to Article 32 TRIPS Agreement is available? 
 
Under the Brazilian law, a patent shall be forfeited,  ex officio or at the request by any party having 
a legitimate interest, if, after 2 (two) years have elapsed since the granting of the first compulsory 
license, that time period has not been sufficient to prevent or remedy the abuse or disuse, unless 
there are justifiable reasons. The patent shall be  forfeited when, on the date of the request for 
forfeiture or of the ex officio institution of th e respective proceedings, exploitation has not yet 
begun. The right-holder shall be notified upon pu blication to submit comments, within a period of 
60 (sixty) days, and the burden of proof with regard  to the exploitation shall be his. The decision 
shall be issued within 60 (sixty) days from the en d of the period mentioned above. The decision on 
forfeiture shall produce effects from the date of th e request or of the publication of the ex officio 
institution of proceedings. 
 With regard to judicial review, the right to petiti on is guaranteed by the Brazilian Constitution as a 
fundamental right.  
 
26. According to paragraph 3.287, the grant of  patents for pharmaceutical products or 
processes must receive the prior approval of  the Brazilian Sanitary Surveillance Agency 
(ANVISA). According to the ANVISA Regulation 21 of April 2013, the goal of this scheme 
is to "verify [whether] the object of the pa tent application is against public health." 
Could the Brazilian authorities please explain which criteria are used by the ANVISA to 
determine whether a pharmaceutical patent a pplication is "against public health" and 
how they differ from the patentability requir ements as set out by Article 27.1 of the 
TRIPS Agreement examined by the INPI (novelty, inventive step and industrial application)? Could the Brazilian authorities, furthermore, clarify how the rules on the 
examination of patentability of pharmaceutic al patent applications comply with the 
requirement not to discriminate as to the fi eld of technology under Article 27.1 of the 
TRIPS Agreement? 
 
The examination of pharmaceutical patent applications with the participation of ANVISA is part of a complex administrative act of the Executive branch, which relies on the combined expertise of 
ANVISA and INPI. The three criteria of patentabilit y are a good basis for evaluating the impact on 
Public Health of pharmaceutical patent applications.   ANVISA relies on a specialized and experienced te chnical staff to carry out its examination. The 
examination is carried out in full compliance with the Industrial Property Act and the Agreement on 
trade-related aspects of intellectual property rights  (TRIPS). In light of that, ANVISA's rules on the 
examination of patentability of pharmaceutical patent applications focus on the three patentability 
criteria, provided for in the TRIPS Agreement as well as in the Brazilian legislation: novelty, 
inventive step and industrial application  
Additionally, ANVISA also verifies if the invention contained in the patent application includes 
substance(s) the use of which is not allowed in the country and the prevention within Brazil's territory of the commercial exploitation is necessary to protect human, animal or plant life or health. 
 WT/TPR/M/283/Add.1 
 
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Lastly, it is worth recalling that the TRIPS Agreemen t, in Article 1.1, provides that "Members shall 
be free to determine the appropriate method of implementing the provisions of this Agreement 
within their own legal system and practice".  
27. According to paragraph 3.272, decisions by the INPI may be challenged by the 
applicant or by a third party through ad ministrative or judicial procedures. 
Paragraph 3.287 indicates that with respect to pharmaceutical patent applications, the 
INPI submits the patent applications to the ANVISA's for prior examination before 
taking a final decision regarding the patent application. Where the ANVISA doesn't give 
its prior consent, the INPI cannot conclude its own examination leading to the refusal of the patent application. In light of the prin ciples stated in Arti cle 62.4 of the TRIPS 
Agreement, could the Brazilian authorities pl ease clarify whether the affected patent 
applicant is entitled to challenge such a nega tive decision by the ANVISA on its own or 
as part of its challenge of INPI's fina l negative decision regarding the patent 
application? 
 Resolution RDC No. 21/2013 amended certain provisions of Resolution RDC No. 45/2008, thus 
maintaining substantial part of the latter Resolu tion. The amended Resolution therefore preserves 
all the procedural guarantees to depositors, such as the right to know the reasons for ANVISA's decision on a patent application; the right to present counter-arguments before a final decision; and the right to appeal to the Administrative Board of the Agency. In addition to that, final 
administrative decisions regarding the acquisition and maintenance of intellectual property rights 
are subject to review by a Brazilian judicial authority.  
3.4.5.2.4  Other forms of industrial property 
3.4.5.2.4.4  Undisclosed information  
28. According to paragraph 3. 298, the Brazilian legislation includes a specific law on 
the protection against unfair commercial use of data related to pharmaceutical products for veterinary use, fertilizers and pesticides  presented to the authorities for commercial 
approval (Law No. 10, 603 of 17 December 2002) . The term of protection is ten years for 
products that use new chemical or biological entities. This law however is not applicable 
to pharmaceutical products for human medici nal use. Undisclosed information is further 
protected by Article 195 of the Industrial Pr operty Law, which specifies crimes of unfair 
competition, including the use of undisclose d information without authorization or by 
breach of contract. Could the Brazilian author ities please explain how Brazil protects, in 
accordance with Article 39.3 of the TRIPS Agreement, undisclosed information/test data 
relating to such pharmaceutical products for human medicinal use in the context of 
marketing approval procedures  against unfair commercial use, e.g. against reliance by a 
second applicant for its own application on th e data submitted by an earlier applicant? 
 
Paragraph 3.298 of the Secretariat's Report describ es the implementation of Article 39.3 of the 
TRIPS Agreement in Brazil. The penalties against disclosure or any unfair commercial use of undisclosed test or other data submitted as a condition of approving the marketing of 
pharmaceutical products for human medicinal use ar e available under Article 195 of the Industrial 
Property Law, as correctly observed by the Swiss delegation.  
4  Trade Policies by Sector 
4.2  Agriculture, Forestry, and Fisheries 4.2.3  Domestic support measures 4.2.3.2  Rural Credit 
4.2.3.2.2  Rural credit government programmes 
 29. Paragraph 4.37: The secretariat's report states, that the "Special Marketing Credit 
Line (LEC)" operates under similar conditio ns as the "Federal Government Loan (EGF) 
programme". However, "the LEC may apply to  products not covered by the PGPM and 
need not use the minimum price as a parameter for calculating the amount to be 
financed". Could the Brazilian authorities plea se indicate which products are supported 
by the LEC in the period covered by the secretariat's report? What is the budget 
allocated to each of the different product categories?   WT/TPR/M/283/Add.1 
 
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Currently the LEC applies only to products not covered by the "Policy of Guaranteed Minimum 
Prices" (PGPM). The products covered by the LEC have been banana, guava, apple, orange, papaya, pineapple, mango, passion fruit, stra wberry, peach and acerola (Barbados cherry). 
Budgetary resources for the LEC are temporarily allo cated from the budget assigned for production 
and commercialization credits. The budget temporarily allocated to the group of fruits has reached 
approximately R$ 200 million per year.  
30. Could the Brazilian authorities, furtherm ore, indicate the parameters which are 
considered when determining the amount to be financed? What is the role of public 
purchase & sale for the LEC-related measures?   
The amount to be financed is determined by the banks. There is no link between Brazilian public 
purchase and sale and LEC since the products benefited with LEC are not part of the Policy of Guaranteed Minimum Prices (PGPM). 
 
31. Could the Brazilian authorities also expl ain whether the LEC part of the "Non-
product-specific production and marketing cr edit" described in Supporting Table DS:9 of 
notification G/AG/N/BRA/30? If so, which share of the 821,691,000 US-$ allocated to 
the measure is used for the LEC?   Budgetary resources for the LEC are temporarily allo cated from the budget assigned for production 
and commercialization credits. Therefore, the LEC is considered part of the "Non-product-specific 
production and marketing credit" described in Supporting Table DS:9. The share of the LEC is 
0.26% of the total amount notified. 
 
32. Furthermore, Switzerland would like to know how Brazil ensures that net-importing countries dependent on the availab ility of foodstuffs on world markets, in 
particular NFIDCs, do not suffer from the impact, the LEC mechanism is creating?  
 As the main products covered by the LEC are fr uits, Brazil understands it does not affect 
negatively the NFIDCs. 
 
33. What measures has Brazil undertaken to ensure that the principle of maximizing 
profits from the LEC mechanism does not domi nate the decisions of purchase and sale 
from public stocks?  
 Brazilian public purchases and sales are not relate d to the LEC, since the products covered by the 
LEC are not covered by the "Policy of Guaranteed Minimum Prices" (PGPM), the program under 
which those purchases and sales are operated.  34. Is Brazil intending to reduce the Gove rnment's impact on purchase and sale 
decisions? 
 As mentioned before, there is no link between Brazilian public purchases and sales and the LEC. 
 
4.2.3.3  Minimum price guarantees  
35. Paragraphs 4.44 & 4.45: The secretaria t's report indicates that the policy of 
guaranteed minimum prices (PGPM) operates intensively with the instrument of public 
stocks. The report equally states that the st ocks "are sold when conditions are deemed 
convenient by the Government". For the year 2011, "revenue exceeded costs, due to 
high market prices for agricultural products and the Government's efforts to reduce 
accumulated public stocks". The instruments available to the Government as well as the 
quantities concerned contain thus all elemen ts to influence world market prices by 
deciding upon the timing of purchase and sa le of public stocks. Equally, the Government 
h a s  a n  i n c e n t i v e  t o  b e n e f i t  f r o m  r i s i n g  w o r l d  m a r k e t  p r i c e s  i n  o r d e r  t o  m a x i m i z e  t h e  revenue of the PGPM mechanism. The economic  impact of this instrument is equal to 
public speculation and could show the charac ter of export restricting measures. Could 
the Brazilian authorities explain how Braz il assures that net-importing countries 
dependent on the availability of foodstuffs on  world markets, in particular NFIDCs, do 
not suffer from the impact, the PGPM mechan ism is creating? What measures has Brazil 
undertaken to ensure that the principle of maximizing profits from the PGPM mechanism WT/TPR/M/283/Add.1 
 
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does not dominate the decisions of purchase  and sale from public stocks? Is Brazil 
intending to reduce the Government's im pact on purchase and sale decisions? 
 Generally, the purchases by the Brazilian governme nt are made when the market prices are low, 
and the sales when the market prices are high. No netheless, the quantities purchased and sold by 
the government under the current agricultural regime are not sufficient to distort the international market. Furthermore, Brazil is a net importing count ry of the main products purchased/sold by the 
government (rice and wheat). 
 At present, Brazil considers that its agricultural regime is open and provides limited level of protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, 
except as a result of the DDA negotiations. 
 WT/TPR/G/283 
 
36. The report of the government of Brazil mentions in paragraph 3.13 that MERCOSUR and Canada have engaged in an exploratory dialogue with a view to determining the 
feasibility of initiating negotiations for an FTA. Could Brazil indicate with which other 
potential partners MERCOSUR has engaged in exploratory dialogues? Could Brazil 
further inform about any other ongoing or planned FTA negotiations?   
For information on MERCOSUR, please refer to w ww.mercosur.org. Brazil only negotiates FTAs 
together with MERCOSUR countries. MERCOSUR and the E.U. have agreed to exchange offers in 
the context of biregional nego tiations until the end of 2013. 
SWITZERLAND (Follow-up questions) 
4. Paragraph 3.14: Switzerland understands that legal entities and individuals which 
wish to operate within SISCOMEX need a prior accreditation from the Secretariat of 
Federal Revenue of Brazil. Companies can apply for three different types of habilitations: 
express, limited and unlimited habilitation. In order to obtain limited or unlimited 
habilitations, an estimated financial capacity  for foreign trade transactions during a 
period of six months is asserted. These two habilitations enable for transactions that 
either exceed a total of US$ 1 50'000 (unlimited habilitation) or that are equal to / less 
than US$ 150'000. Does a trader in possession  of a limited habilitation have to submit 
an application once again in order to be able to import more than the previously 
determined financial capacity estimate? Ar e there any possibilities for an accelerated 
and administratively less burdensome procedur e to do so? Do traders with an unlimited 
habilitation not have any import cap at all and can therefore substantially exceed the 
determined financial capacity estimate? 
 Initial reply: There are two main reasons for the procedure of accreditation: to make possible for a trader to access the Integrated Foreign Trade Sy stem (SISCOMEX) through a password; and as a 
way to avoid fake companies and interpositioning of third parties to international trade. In 
principle, this procedure needs to be done once, but a trader with a limited habilitation can apply for a limited one at any time, provided he can prod uce additional information. As mentioned, this 
procedure is done, in principle, once. Insofar this procedure is free of charge and is valid 
indefinitely, the Brazilian Customs believes this procedure is necessary and not so burdensome as 
it might seems. There is no limit of operations for an unlimited habilitation. 
 
Follow-up question 1: The answer of the dele gation of Brazil states that "this procedure 
is done, in principle, once". Could the Brazili an authorities kindly specify in which cases 
a trader needs to resubmit a new application ex ceptionally? Is this only the case when a 
trader in possession of a limited habilitatio n now applies for an unlimited habilitation? 
 That is the case. Traders can always resubmit an application if they want to do so. Normally,  an 
underestimation of trader's capacity is due to the lack of information and or underpayment of 
regular taxes that leads to miscalculation.  WT/TPR/M/283/Add.1 
 
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Follow-up question 2: In our view, the answer to question 4 does not cover all aspects 
of our questions 5-7. Could we therefore kind ly ask the delegation of Brazil to elaborate 
on the information enquired for in questions 5-7?  
Please see page 234 a "corrigendum" to Brazil's initial replies. 
 16. Paragraph 3.63 states that in exceptiona l circumstances, for reasons of national 
interest, the Brazilian authorities (namely th e Chamber of Foreign Trade, CAMEX) may 
decide to suspend the application of de finitive Anti-Dumping or Countervailing 
measures, to impose a defi nitive measure in an amount different from the one 
recommended by DECOM. Could the Brazilian auth orities please elabor ate in more detail, 
what the terms "exceptional circumstance s/reason of national interest" mean? 
 There is no definition of the terms "excep tional circumstances/ reason of national 
interest". Any decision CAMEX might make ba sed on those terms will be analyzed on a 
case-by-case basis.  
Follow-up question 3:  Switzerland thanks Br azil for the response we received. Could the 
Brazilian authorities provide (and briefly expl ain) one or two examples of recent cases 
where CAMEX decided to impose a definitive measure in an amount different from the 
one recommended by DECOM based on "excepti onal circumstances/reason of national 
interest"?   
 The decision, taken by the Brazilian government, for the application of an anti-dumping duty lower 
than recommended by DECOM in the case of the investigation of pens was based on the need to 
avoid burdening the costs of purchasing school mate rial as provided for in CAMEX Resolution 24, 
28 April 2010. 
 WT/TPR/M/283/Add.1 
 
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THAILAND 
3  Trade Policies And Practices By Measure 
 Pages 48-49, paragraph 3.28 
 
"Brazil enacted legal provisions establishi ng non-preferential rules of origin in 
December 2011 (
Footnote 23:  WTO document G/RO/N/78 of 16 April 2012 ).  To be 
considered as originating, products must  b e  w h o l l y  o b t a i n e d  o r  h a v e  u n d e r g o n e  
substantial transformation (becoming classi fiable under a different four-digit tariff 
heading) in the declared count ry of origin. Verifications of  non-preferential origin are 
carried out by the SECEX at the import licen sing stage, as well as by the RFB during 
customs clearance and postclearance audits. False declarations of origin may trigger 
rejection of an import licence application an d refusal to grant such licences for similar 
goods traced to the same exporter. At the point of entry, non-originating goods are 
liable to a fine of 30% of their c.i.f. value; those subject to a quantitative restriction will 
not be admitted into the customs territory and will be liable to a fine of R$5,000 per day, 
counted from the date of registration of th e import declaration until the date of their 
effective return abroad." 
 1. According to non-preferential rules of  origin, product will be considered as 
originating in the declared country of origin  if and only if such product is wholly 
obtained or has become classifiable under a different four-digit ta riff heading (CTH) in 
that country. Thailand would like to know how Brazil proceeds when it has doubt with regard to the declaration of origin.  What  are the criteria in  determining that a 
declaration may not be accurate?  What is th e usual procedure? How many cases of this 
origin declaration has Brazil encountered?  
In case of doubt to comply with non-preferential rules of origin, administrative proceedings are set 
up to carry out verification of origin. The verifica tion is done during the import license, based on 
information provided by the importer. It is then prompted the declaration of origin of the producer or exporter, certifying that the product complies with the rules of origin set forth by 
Law 12.546, 2011. Based on information from the impo rt license and the Declaration of Origin, the 
brazilian government decides whether or not to open the administrative procedure for verification of origin. 
 
For more information about the procedure, please access the website http://www.mdic.gov.br/sitio/intern a/interna.php?area=5&menu=3416 
 
Page 60, paragraph 3.61  "In December 2011, SECEX issued Directive No. 46, which contains revised guidelines 
relating to the information to be included in an application for the initiation of an AD 
investigation. According to DECOM, the new format simplifies the application process by 
eliminating requests for some information th at is not used during the investigation 
process. At the same time, it requires the application to include additional information 
that previously would have been gathered only  after the initiation of an investigation. 
This eliminates the need to alter the period  of investigation or update the data after 
initiation, thus permitting the authorities to  verify the applicants' information and to 
impose provisional measures, in the case  of affirmative determinations, within 
120 days."  
2. With regard to the revised guidelines under the Directive No. 46, it appears that 
the Directive no longer requires some info rmation while requests for some additional 
information which was not previously required with a view to simplifying the application 
process.  We would like Brazil to explain more  detail regarding the new process. What is 
the information that has been dropped and what has been added? Does Brazil request 
information both before and after the initiati on of an investigation?  What are those 
types of information? 
 WT/TPR/M/283/Add.1 
 
- 245 - 
 
Before Directive No. 46, DECOM requested less information in the petition and complemented such 
information through questionnaires sent to the petitioner after the investigation was initiated. With Directive No. 46, DECOM started requesting all the information the Department needed from the domestic industry before the initiation of the investigation, through the petition model provided for 
in the aforementioned Directive. Therefore, alth ough the information is requested at different 
moments, the type of information is the same. Nowadays, Brazil also requests information after the initiation of an investigation, but such information comes from foreign producers/exporters and 
from other Brazilian producers of the product under investigation, and serves the purpose of 
complementing the information provided by the petitioner through Directive No. 46. 
 WT/TPR/M/283/Add.1 
 
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TURKEY 
WT/TPR/S/283 
 Summary 
 
Trade Policy By Measure, page 10, paragraph 14  
It is mentioned in the report that "The  importation of some products may require 
licences from more than one entity."   1. What are those "some" products and wh ich entities issue the licences for those 
products at the same time? 
 All the information regarding licences' requirements can be found at: 
<http://www.mdic.gov.br/arqu ivos/dwnl_1370008910.pdf>. 
 2  Trade Policy Regime 
 
2.5.1  World Trade Organiza tion, page 38, Table 2.1 
 As it is known, there was a dispute settlement between Brazil and European 
Communities regarding measures affecting imports of re-treaded tyres. Panel report of 
this dispute settlement was announced in June 2007 and appellate body report was 
published in December 2007.  
 
2. In this regard, could you please prov ide detailed information about the current 
situation of afore mentioned dispute, in addition to implementations and import 
procedures for re-treated tyres in Brazil?  
 Brazilian measures regarding retreaded tyres are consistent with the recommendations of the Dispute Settlement Body (Dispute DS332. Viewed at: 
http://www.wto.org/english/tratop_e /dispu_e/cases_e/ds332_e.htm.) 
 ADPF 101, the case heard in the Brazilian Supreme Court ("Supremo Tribunal Federal") became 
res judicata in June 11th, 2012. By that decision, all imports of used or retreaded tyres, regardless 
of origin, are prohibited. Brazil fully complied with the WTO decision.  
Services, Securities, page 155, paragraph 173 
 In the Secretariat report it is noted that "n on-resident individual investors must appoint 
a Brazilian resident as their representative re sponsible for registration procedures with 
the Central Bank and the CVM." 
 3. Could Brazil explain the rationale behind this requirement?  
 
CVM must, at all times, know who or which institution is the end user, the final beneficiary of all financial transactions that take place in the Brazilian territory. This is not only necessary to comply 
with the IOSCO Principles, but also with the FATF Resolutions against money laundering and the 
finance of terrorism. CVM is part of both initiatives. In case an investigation within the financial market is deemed necessary, CVM must be able to reach all players (investors) and market intermediaries in order to assess risks, point out frauds, market manipulation and wrongdoers.  
 WT/TPR/M/283/Add.1 
 
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WT/TPR/G/283 
 4  Trade Institutional And Regulatory Framework  
4.1.2 Trade facilitation, page 19, paragraph 4.6  
 4. Could the Brazilian Delegation kindly info rm us about what the principles and rules 
to be observed by government agencies, with a view to improving trade procedures, 
creating a more favorable environment an d expediting commercial exchanges are? 
 The principles and rules to be observed by gove rnment agencies, with a view to improving trade 
procedures are established by different bodies in Brazil such as: Ministry of Development Industry 
and Foreign Trade (MDIC), Foreign Trade Chambe r (CAMEX), Brazilian Federal Revenue (RFB), 
Ministry of Agriculture (MAPA), Brazilian Institute of Environment and Renewable Natural 
Resources (ANVISA), National Institute of Metrology, Standardization and Industrial Quality 
(INMETRO) among others.  
Furthermore, international treaties have the status of ordinary law in Brazil and, in this sense, the 
WTO Agreements are also considered to be a Brazilian foreign trade rule. As the WTO Agreements are internalized as ordinary law the basic principle of non-discrimination, national treatment and most favored nations are mandatory when applying the Brazilian foreign trade rules. 
 
Regarding specifically the improvement of trade procedures and expediting commercial exchange 
it worth mention that Resolution CAMEX No. 16/2008 provides the general principles of 
implementing trade facilitation measures by the GTFAC. 
 For further research, the main Brazilian rules issu ed by different agencies on foreign trade are 
available at Brazil Foreign Trade Gateway (www. comexbrasil.gov.br) under  the topic entitled 
"Legislação".   4.1.2  Trade facilitation, page 19, paragraph 4.6  
 
5. Could the Brazilian Delegation kindly el aborate on the criteria for getting an 
"Authorized Economic Operator" status? 
 
(RFB): Since 2001, Brazil has had a "certified enterprise" programme under which authorized exporters or importers are given certain administrative facilities for the customs clearance of their 
goods. 
 December 2004 saw the launching of a new programme  (Linha Azul – Blue Line). This programme 
maintains its main focus on compliance but also on the security of the foreign trade logistics chain. 
The eligibility criteria for this programme are: 
 
- Industrial sector; 
- Appropriate record of compliance with customs and other related laws and 
regulations; 
- A system of managing records to allow for necessary internal controls; 
- Financial solvency; and 
- Minimum value and volume of export/import operations (100 export/import 
operations and US$ 10,000,000 during the 12 months preceding the application). 
 
Currently, Brazilian Customs is drafting a new certified enterprises scheme which will aim to 
enhance the security of the foreign trade logistics chain by implementing internationally recognized minimum security standards in cooperation with the private sector, and granting benefits to 
participating enterprises that comply with certain tax, customs and security obligations. 
 4.1.2  Trade facilitation, page 19, paragraph 4.8  
 
6. Could the Brazilian Delegation kindly el aborate more on "Instantaneous Imports 
Licensing Deferring tool"?  WT/TPR/M/283/Add.1 
 
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Brazilian authorities developed a mechanism of filters and operations selection criteria within 
Siscomex, managed by the authorizing agencies, to issue instantaneous importing licenses. The mechanism is fully operational.  
4.1.2  Trade facilitation, page 20, paragraph 4.9  
 7. When will Brazil start using "Detalhame nto Brasileiro de Nomenclatura" (DBN)? 
 
The Resolution CAMEX No. 36, 31 May 2013, has made  public the guidelines of the Working Group 
on management of the detail of Brazilian Nomenclature (GDBN). This Group will be responsible for the development and maintenance of the DBN and shall inform periodically to the Council of 
Ministers (CAMEX) about the time, costs and specifications related to the development and 
implementation phase of DBN.  
The GDBN estimates that all this process will be concluded in the 2nd half of 2014, due to the 
complexities involved in this task, which will require public consultation for manifestation of the private sector, in addition to the other government agencies involved in foreign trade. 
 
4.1.2  Trade facilitation, page 20, paragraph 4.15   8. How do the "new computerized system for documents" and "international express 
air shipments control" operate both for exporters and importers? 
 Up to now, this new system is operative only for import declarations. The export module of the 
system is currently under construction. 
 4.1.3  Sanitary and phytosanitary issues, page 20, paragraph 4.16  
 
It is mentioned in the Report that "Sanit ary and phytosanitary measures are mostly 
based on standards and guidelines produced by Codex Alimentarius, OIE, and IPPC."  
 
9. Are there any other sanitary and phyt osanitary measures which are used by 
Brazilian Government other than Codex A limentarius, OIE, and IPPC measures? 
 
Brazilian SPS measures are based on the available international standards. However, in order to 
preserve access to important markets, the country has been in some cases compelled to adapt temporarily its sanitary system to other countries' requirements, pending the adoption of the said 
standards. 
 4.2.3  Services, page 25, paragraph 53  
In the government report, it is stated that Brazilian Government is currently 
implementing initiatives to improve inform ation on the country's foreign trade in 
services. One of the innovations introduced to  monitor foreign trade of services is the 
SISCOSERV – Integrated System of Foreign Trade in Services, Intangibles and other 
Operations that Produce Variations in the Capital of the Entities. SISCOSERV started operating on 1 August 2012. It records fo reign trade transactions in services and 
intangible transactions between residents and non-residents. The system is not used for 
compliance with licensing requirements or ot her types of control. The system is an 
important tool for the formulation and monito ring of public policies and for gathering 
statistics on foreign trade in services, coveri ng all positions of the UN Central Products 
Classification and the four modes of supply in accordance to the General Agreement on 
Trade in Services (GATS) of the WTO.   
10. We would like to request Brazil to gi ve more information on the recently 
established system for gathering statis tics on foreign trade in services. 
 
SISCOSERV - The Integrated System of Foreign Trade in Services and Intangibles - is managed by 
the Secretariat of Commerce and Services (of the Ministry of Development, Industry and Foreign 
Trade) and the Federal Revenue of Brazil (Ministr y of Finance), and is structured in accordance 
with the GATS/WTO concepts and definitions. 
 WT/TPR/M/283/Add.1 
 
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The System is available online, where operations are registered, and is accessed by Digital 
Certificate. Transactions between Brazilian and foreign natural persons or enterprises are to be registered when the corresponding service (or intangible) provision has already begun; hence, there is no need for previous approval of the regi stry by the government. Operations are classified 
according to the NBS (Brazilian Nomenclature of Services and Intangibles), and the 4 GATS modes 
of international service provision are easily identifiable.  
SISCOSERV can be accessed through two separate  modules: the Sales Module, for services and 
intangibles exports by Brazilian natural persons or enterprises to foreign, and the Acquisition Module, for services and intangible imports. Both modules comprise services supplied under GATS modes 1, 2 and 4, and the Sales Module includes services supplied under GATS mode 3, ultimately 
targeting foreign affiliate trade in services (FATS).  
 Detailed information on the Siscoserv is available online user manuals for both Modules (in 
Portuguese) on the Ministry of Development, Industry and Foreign Trade's website, at: 
<http://www.desenvolvimento.gov.br/sitio/i nterna/interna.php?area=4&menu=3407>. 
 WT/TPR/M/283/Add.1 
 
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UKRAINE 
WT/TPR/S/283 
 1  Economic Environment 
1.3  Fiscal Policy 
 According to paragraph 1.21, "fiscal policy ha s been used as an instrument to assist 
sectors affected by competition from imports and the global economic crisis. During the 
review period, Brazil granted reductions of the Tax on Industrial Products (IPI) on a 
wide range of products, including automobile s, domestic appliances, and capital goods. 
The Government announced … the creation of  a new fiscal regime for the automotive 
sector (INOVAR-AUTO), for the period January 2013 to December 2017." 
 1. Could Brazil kindly provide informatio n on results of the taken measures (tax 
reductions, exemptions, suspensions), in particular, their impa ct on production, 
employment, export performance,  profitability, salaries etc. in the sectors being granted 
tax privileges in 2008-12? 
 
In recent years, Brazil has undertaking a series of policy measures to support sectors affected by 
loss of competitiveness in the context of global economic and financial crisis, some of those 
measures are encompassed in the Plano Brasil Maio r. Detailed information regarding the industrial 
policy of  Plano Brasil Maior can be fo und at:  _www.brasil maior.mdic.gov.br. 
 3  Trade Policies And Practices By Measure 
3.2.3  Tariffs 
3.2.3.1  Applied MFN tariff  
Paragraph 3.36 notes that "… Brazil main tains a range of temporary, unilateral 
exemptions to the CET; the scope for such derogations was increased with the adoption 
of a new MERCOSUR mechanism, providin g for temporary tariff increases on non-
originating goods, in December 2011. The dero gation's stated intent is to address trade 
imbalances due to the international econ omic environment… The mechanism, which 
entered into force on 6 September 2012, caps  the applicable time-frame to 12 months 
(renewable for up to 12 additional months ) and the number of admissible (8-digit) tariff 
lines to 100 per member State. Taking advant age of this mechanism, Brazil raised the 
rates applied on 100 tariff lines (the au thorized maximum) for a 12-month period, 
effective 1 October 2012. As a result of  these hikes, which range from 6 to 
23 percentage points, the simple average rate  on these lines increased from 13.5% to 
22.2%. As at March 2013, a MERCOSUR Decision to increase the number of tariff lines to 
200 was pending incorporation into the nati onal legislation of member states, a 
prerequisite for its entry into force." 
 
2. Taking into account the stated goal of  the tariff increases, namely, to address 
trade imbalances, could Brazil kindly elaborate on results of this measure, in particular, 
its impact on volumes of imports of goods su bject to the increased tariffs, as well as on 
the budget revenues?  
Information on Brazilian foreign trade is available at the following website: 
http://aliceweb2.mdic.gov.br.  3. What is the current status of the MERC OSUR Decision to increase the number of 
tariff lines to 200? 
 Decision CMC No. 25/12 has not yet entered into force. 
 
3.2.4  Other charges affecting imports  
4. According to paragraph 3.46, "… in princi ple, the same rates [of the IPI] apply on 
domestically produced and imported good s. However, certain IPI reductions or 
suspensions, such as on automotive produc ts, have been granted only to products WT/TPR/M/283/Add.1 
 
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originating in some of Brazil's preferenti al trading partners (e.g., MERCOSUR and 
Mexico)."  Since the tax privileges, granted only to goods originating in MERCOSUR and Mexico, 
seem to be in conflict with Article I of the GA TT, could Brazil kindly cite provisions of the 
WTO agreements, which justify the applicatio n of lower rates of internal taxes on 
products originating in pref erential trading partners? 
 
Nothing in the WTO Agreements should be read as prohibiting a Member to establish conditions on production or on technology in a certain territory or  to define levels of production or of technology 
thereupon.  
 
3.2.6  Import prohibitions, restrictions, and licensing 
 
5. Paragraph 3.56 notes that "… according to the authorities, the purpose of non-
automatic licensing is to prevent environm ental damage and harm to human, plant or 
animal health, as well as to control impo rts of products classified as weapons and 
products subject to (tariff and non-tariff) quotas or trade remedies."  
 At the same time, the paragraph further stat es that "the granting of non-automatic 
licences for imports of used machinery and eq uipment is conditional on proof that such 
items are not produced in Brazil and cannot be  substituted by a similar item currently 
produced in Brazil. Non-automatic licensing is  also used in the administration of duty 
and tax concessions; to benefit from su ch concessions, imports must undergo a 
"similarity examination", which must ascertai n that no equivalent domestic production 
exists …"  
Since the licensing regime for imports of  used machinery and equipment and the 
"similarity examination" system seem to be inconsistent with Articles III and XI of the 
GATT and the Agreement on Trade-Related Inve stment Measures, could Brazil kindly cite 
provisions of the WTO agreements, which ju stify the application of these measures? 
 
Nothing in the WTO Agreements should be read as prohibiting a Member to establish conditions on production or on technology in a certain territory or  to define levels of production or of technology 
thereupon.  
 3.2.7  Contingency measures 
3.2.7.1  Overview 
 6. According to paragraph 3.58, "Brazil is  a significant user of trade remedies, 
particularly anti-dumping (AD)  measures, and there are indications that these remedies 
may play an increasingly important role in  its future trade policy. Trade defence has 
been identified as a component of the Plano Brasil Maior, pursuant to which a number of 
steps have been taken to strengthen trade de fence. Brazil has announced its intention to 
increase the number of trad e remedy investigators …". 
 Could Brazil kindly provide information rega rding the current and the planned increased 
number of trade remedy investigators? 
 Since March of 2013, the Department of Trade Remedies (DECOM) counts on 47 new investigators. In all, DECOM has 63 investigators carrying out trade defence investigations. 
 
7. Does the intention to reinforce the inve stigative staff imply any plans to further 
increase the number of investigations? 
 
Although the Department of Trade Remedies (DECOM) has the prerogative of initiating trade defence proceedings ex officio, all of the investigations carried out by DECOM were initiated 
through petitions submitted by the domestic industry. 
 Therefore, the increase or decrease in contin gency measures does not depend on DECOM. In 
addition, it must be stated that, even though there has been an increase in the number of 
investigators and petitions in the last years, the technical rigor of DECOM's work remained and WT/TPR/M/283/Add.1 
 
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shall remain the same, in a way that, on average, about 50% of the petitions filed do not result in 
investigations and, out of all investigations actually initiated by that Department, about 40% do not result in the imposition of definitive measures.  
3.2.7.2.2  AD/CVD use during the review period 
 Paragraph 3.68 notes that "… Brazil's use of  A D  g e n e r a l l y  s h o w e d  a n  u p w a r d  t r e n d  
during the review period … DECOM recently noted that as of 20 September 2012 it had 
initiated 47 new investigations in 2012,  exceeding the previous record of 
40 investigations in 2010. In terms of measures in force, Brazil had 83 anti-dumping measures in force as of 30 June 2012 (up from  63 in October 2008), of which 20 related 
to imports from China and 10 to imports from the United States …". 
 8. Could Brazil kindly provide informatio n on the impact of the anti-dumping 
measures being applied on imports of goods su bject to such measures, as well as on an 
economic performance (production, sale s, market share, employment, export, 
profitability etc.) of domestic  producers of similar goods. 
 
There are no studies aimed at analyzing the econom ic performance of the domestic industry so as 
to evaluate the impact of anti-dumping measures. However, in cases in which there is a request for a review or there is a public interest petition , the situation of the domestic industry will be 
taken into consideration. 
 3.3.4  Export support and related tax measures 
 
9. According to paragraph 3.116, "… the authorities estimate that revenue forgone 
for the duration of this programme [Reintegra] was about R$6.96 billion."  
 
Paragraph 3.121 states that "during 2008-11, the revenue forgone under the drawback suspension modality amounted to R$5.4 billion and to R$256.9 million under the exemption modality. 
 
Paragraph 3.125 notes that "… the authorit ies indicated that during 2008-11, revenue 
forgone under the RECOF scheme amounted to almost R$6.5 billion. 
 
Could Brazil kindly indicate the total am ount of the revenue forgone under export 
support measures during 2008-12? 
 
The term "revenue forgone" is misleading, because it implies that the government did not collect taxes that were effectively due. The paragraphs cited deal with drawback regimes and REINTEGRA, which is a program that returns tax re sidue that was lost by the enterprises along the 
production chain. 
 3.3.4.5 Special Regime for the Purchase of  Capital Goods for Exporting Enterprises 
(RECAP) 
 10. According to paragraph 3.126, "… In orde r to benefit from RECAP, an enterprise 
must have exported at least 50% of its gross income from sales of goods and services in 
the calendar year preceding its request to use the scheme, and commit to comply with 
such export requirement for the following two calendar years …". 
 
Since the tax privileges (the suspension of the PIS and the COFINS) are contingent upon 
export performance and appear to be incons istent with the Agreement on Subsidies and 
Countervailing Measures, could Brazil kindly cite provisions of the WTO agreements, 
which justify the application of the RECAP? 
 The regular regime for the suspended taxes (PIS  and COFINS) is a non-cumulative taxation 
system based on a credit mechanism. This regime allows the taxpayer to calculate and deduct the 
respective tax credits relating to goods (including capital goods) and services used as input on the 
provision of services or production of goods for further sale.   WT/TPR/M/283/Add.1 
 
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By this system, however, companies that export a significant amount of their production often 
have insufficient tax liabilities or debits to offset their tax credits. As a result, many companies accumulate credits throughout the fiscal year.  
RECAP is only target to simplify the use of the mentioned credits to which companies are already 
entitled.   
Also on competition, RECAP is designed to keep  tax neutrality. RECAP therefore suspends taxes, 
which, in turn, do not generate credit to be used along the value chain.   3.3.5  Export finance, insurance, and guarantees 
3.3.5.4  BNDES export  financing programmes 
 11. Paragraph 3.143 notes that "… the condit ions to benefit from some of BNDES-EXIM 
programmes include meeting a certain index of  nationalization (usually 60% defined in 
value and/or weight terms); domestic pr oduction thresholds (PPB)… The Brazilian 
authorities have emphasized that these cond itions apply only to qualify automatically 
for financing, and that products that do no t meet these conditions may also benefit from 
the programme subject to a non-automatic analysis procedure.  Could Brazil kindly indicate the percentage of products subject to the non-automatic 
analysis procedure, which benefited from  the BNDES-EXIM programs requiring the 
nationalization index, the number and perc entage of companies manufacturing such 
products that received financing or othe r benefits under these programs, and the 
amount of support (financing, insurance, gu arantees) provided to products, which are 
not eligible to qualify automatically for participation in the programs?  
The Brazilian Government does not have consolidat ed data on the percentage of products subject 
to the non-automatic analysis procedure.  3.4  Measures Affecting Production and Trade 
3.4.1  Competition policy and price controls 
3.4.1.2  Price controls  
12. 3.173. Certain agricultural products re main subject to minimum producer prices; 
according to the authorities, these prices ar e used as a tool to support producers and 
not the corresponding market prices. 
 
Taking into account that according to the World Bank, 10.8 % of the Brazilian population still lived on less than US$2 a day (at 2005 in ternational prices) in 2009, could Brazil 
kindly elaborate on the impact of trad e-distorting price support measures on 
accessibility of foodstuffs to consumers? 
 The use of price-based instruments to support the ag ricultural sector is very limited, and it has 
limited impact on prices. As a net exporter of several agricultural commodities, the domestic price 
of foodstuffs in Brazil is usually lower then abroad . Thus, Brazil considers its agricultural policies do 
not affect negatively the access of consumers to foodstuffs. 
 
4  Trade Policies By Sector 4.2  Agriculture, Forestry, and Fisheries 4.2.3  Domestic support measures 
4.2.3.1  General features 
 13. According to paragraph 4.16, "… Disb ursements for price support mechanisms 
increased significantly in 2009 to R$3.7 billion, but fell to about R$1.6 billion in 2011.  
 Could Brazil kindly indicate major reasons fo r the significant increase in price support 
disbursements in 2009 and its further considerable reduction? 
 Paragraph 4.21 notes that "according to OECD calculations, Brazil's total support to agriculture averaged 0.55% of GDP in 2008-10, which was lower than the OECD average 
of 0.88%. In addition, the Producer Support  E q u i v a l e n t  ( P S E )  a v e r a g e d  5 %  i n  t h e  WT/TPR/M/283/Add.1 
 
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period, significantly below the OECD count ries' average of 20%. However, the OECD 
contends that about two thirds of Brazil's PS E is provided in "the most production and 
trade distorting forms", especially throug h price support measures and subsidized 
credit." 
 
The main reason was the 2008 financial crisis, which lowered commodities prices. This caused the Government to increase the disbursements related to market support measures.  
 
At present, Brazil considers that its agricultural regime is open and provides limited level of protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, except as a result of the DDA negotiations. 
 
14. Could Brazil kindly indicate the percenta ge of price support measures in the total 
amount of domestic support?  
 
4.2.3.3  Minimum price guarantees  
Paragraph 4.43 states that "Brazil operat es several programmes based on minimum 
price guarantees, which support the produc tion of a wide range of commodities, 
including corn, rice, cotton, and wheat. According to OECD estimates, price support schemes accounted for more than half of tr ansfers granted to farmers during 2008-10. 
Their overall effect, however, appears to be  modest, as annual budgets are limited and 
partly targeted at less developed regions and low-income farmers." 
 
According to paragraph 4.44 "the policy of guaranteed minimum prices (PGPM), 
launched in 1966, remains an important pillar of Brazilian agricultural policy. The PGPM 
is aimed at supporting producers when market  prices fall to levels deemed harmful to 
their income stability."  
 According to the last Brazilian notification on domestic support measures (G/AG/N/BRA/30), the total amount of price-related support (price  guarantees schemes and direct payments) 
represented 9.5% of the total domestic support (including non-specific AMS, Article 6.2 measures 
and green box measures) in the 2009/2010 crop year.  
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? 
 
At present, Brazil considers that its agricultural regime is open and provides limited level of 
protection. Therefore, there is no intention to reform substantially the Brazilian agricultural policy, except as a result of the DDA negotiations.  
Although its agricultural regime is open, Brazil has been moving its policies further towards the 
adoption of less distortive measures, as the Brazilian figures regarding green box measures clearly show. 
 WT/TPR/M/283/Add.1 
 
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UNITED STATES 
WT/TPR/S/283 
 1  Economic Environment 
1.1  Overview 
 1. Page 14, Paragraph 1.2:  The Secretariat report notes that longstanding structural 
problems have affected the Brazilian econom y's competitiveness (including inadequate 
infrastructure, a very high tax burden, high ly regulated labor markets, and relatively 
high overall production costs). What steps is  Brazil taking to address these structural 
issues? 
 
The Secretariat report is focused on trade polic y aspects and provides a very general overview, 
drawing upon the analysis of other sources about the economic environment. Thus, Brazil does not 
share completely the evaluation on the report that lists and qualifies some structural problems 
supposedly affecting the Brazilian economy's competitiveness. Despite that, several important actions have been taken to improve infrastructure and tax system.  
 
For example, Brazil is improving the regulatory ru les for various sectors of infrastructure, with the 
goal of enabling greater private investment. An  example is the recent approval of the new 
regulatory rules for the port sector (Law 12.815/2013). Also great effort has been made to 
increase private funding for investment in infrastructure, mainly through infrastructure bonds 
(Law 12.431/2011). The Government is also changi ng the taxation charged on the payroll, which 
is gradually starting to focus on revenue. This measure, applicable to some sectors of the 
economy, represents a reduction of the effective tax burden and labor costs.  Several others tax 
exemptions are also underway for different economic sectors.  
1.6  Structural Issues and Policy Responses 
 2. Page 23, paragraph 1.39:  The Secretaria t report notes that the lack of skilled 
workers in some sectors of the Brazilian econ omy is affecting the competitiveness of 
certain industries.  What sectors are affected by the lack of skilled workers?  What steps 
is Brazil taking to address this situation?     
First and foremost, the view that there is a widesp read lack of skilled labor in Brazil does not 
reflect available job data. Were this fact true, workers with higher education would receive higher salary increases than those with fewer years of education. In fact, one can notice a reduction in 
the supply of labor with fewer years of schooling, which is consistent with the increase in education 
of the workforce and reducing income inequalities.   Between 2001 and 2011, the population aged 10 or older with 11 or more years of schooling 
increased from 21.7% to 35.1% in the total population. In the same period, total public 
investment in education increased from 4.8% to 6.1% of GDP. Indeed, local and sector- related pressures will always exist, mostly in low-skill occupations in areas that have gone through large 
expansion in recent years (trade, construction, education market). These results are consistent 
with the average increase in income and the rece nt growth of the Brazilian middle class, which 
gave dynamism to these sectors, probably increasing the absolute demand for labor force. 
 
In any case, several measures were taken to address issues related to labor skills and productivity. It is worth noting the following:  
- The Programa Nacional de Acesso ao Ensino Técnico e Emprego (PRONATEC) (National 
Programme for Access to Technical Education and Employment), created to expand the provision of technical and professional co urses. It expanded the federal network of 
technical schools, provide free training places for young people from poor 
backgrounds and give financial support through loans and bursaries. There are 8 million school places by 2014, unpaid, offering expertise in over 400 fields of 
knowledge. 
- The granting of 101,000 scholarships through the Ciência sem Fronteiras (Science 
without Borders), program focused on promoting the consolidation, expansion and WT/TPR/M/283/Add.1 
 
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internationalization of science and technology, innovation and Brazilian 
competitiveness through the exchange and international mobility. 
- The Bill elaborated by the Executive and sent to the Congress that intends to allocate 
the full amount of royalties from oil exploration and 50% of income from the Social 
Fund in education. 
- The tax relief on the social security charges levied on the payroll. 
 
3.  Trade Policies And Practices By Measure 
3.2  Measures Directly Affecting Imports 3.2.3  Tariffs  
3. Page 56, paragraph 3.46:  The Secretar iat report indicates that reductions and 
suspensions of the Tax on Industrial Produc ts (IPI) on imports of certain products, 
such as automotive products, are granted only to products originating in some of 
Brazil's preferential trading partners (e.g ., MERCOSUR and Mexico). Please explain 
how Brazil views this program in lig ht of Article III of the GATT 1994? 
 
The temporary tax reductions on automotive products no longer apply. In the current 
program, companies importing automotive products originated in all WTO countries are eligible to reductions and suspensions of the Tax on Industrial Products (IPI). Therefore, there is no discrimination related to origin of the automotive products imported by the companies which 
benefit from the program. 
 3.2.6  Import prohibitions, restrictions, and licensing 
 
4. Page 58, Paragraph 3.54:  According to the Secretariat report, "Brazil's most recent notification on import licensing procedures dates from 2011." Brazil's 2012 
notification has, therefore, not been subm itted to the WTO. Does Brazil intend to 
respond to the annual Questionnaire on Import Licensing Procedures for 2012 in light of Article 7.3 of the Agreement on Import Lice nsing Procedures?  If so, when can Members 
expect a response?  If not, why not? 
 
Brazil's 2012 notification will be submitted to the WTO. However, it should be pointed out that there will be no changes in the contents of the WTO document G/LIC/N/3/BRA/9 of 
16 September 2011. 
 5. Page 58, Paragraph 3.55: Please clarif y the statement in the Secretariat report 
that "Non-automatic import licenses are issued  and registered directly in SISCOMEX by 
16 agencies…"How many administrative bodies must an applicant for an import license 
approach in connection with an application?  Please explain in light of Article 1.6 of the 
Import Licensing Procedures Agreement. 
 
Non-automatic licenses are instruments to integrate different control requirements, imposed by different agencies (16 in Brazil), within a single electronic system for the processing of 
import documentation – the Integrated System of Foreign Trade (SISCOMEX). 
 Each governmental agency in charge of imposing non-automatic import licensing 
requirements derives its specific competence from law and/or international treaties. The 
website of the Brazilian Foreig n Trade Gateway (www.comexbras il.gov.br) contains a list of 
those agencies, the legal basis for the controls imposed by them, and the justification for their implementation.  
 
Most of the non-automatic licenses require only one requirement imposed by one of these agencies. However, eventually, where it is strictly indispensable to approach more than one 
administrative body, applicants do not need to approach more than three administrative 
bodies, as established in article 1.6 of the Import Licensing Procedures Agreement.  
In order to minimize the impact of licensing requirements on Brazilian imports, all 
governmental agencies involved in import controls are periodically required to review their licensing requirements and to reduce their controls to the minimum necessary, considering the principles of reasonability, proportionality, public interest and efficiency. As an additional 
measure to minimize the impact of licensing on trade, Resolution CAMEX No. 70/2007 WT/TPR/M/283/Add.1 
 
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introduced a new process whereby the merit and the legality of agencies' demands for 
products to be subject to licensing are checked by the Working Group on Trade Facilitation (GTFAC), created by the Resolution CAMEX No. 16/2008, in order to avoid the occurrence of multiple authorizations and inspections, with a view to saving time and costs. 
 
The products subject to non-automatic licensing are listed in the Administrative Treatment of the Integrated System of Foreign Trade (SISCOMEX) and can also be found on the web page 
of the Ministry of Development, Industry and Foreign Trade (MDIC). When licensing is 
required, the license is usually issued by one agency. Imports of certain goods may require licenses from more than one government agency, never more than 3 agencies. It should be emphasized that there are no overlaps in the licensing entities' competences. Therefore, 
16 agencies are those that have legal competences for issuing import licenses in their 
particular area of concern. They do not all issue licenses for a certain given operation.  
Page 59, paragraph 3.56:  According to the Secretariat report, "The granting of non-
automatic licenses for imports of used machinery and equipment is conditional on proof that such items are not produced in Brazil and cannot be substituted by a similar item 
currently produced in Brazil. Non-automatic lic ensing is also used in the administration 
of duty and tax concessions; to benefit from  such concessions, imports must undergo a 
'similarity examination', which must ascertai n that no equivalent domestic production 
exists.  While most licensing requiremen ts are established and modified through 
appropriate legislation, produc t coverage may be subject to administrative discretion 
when allowed by the normative framework."    
6. How does Brazil justify its issuance of  import licenses depe nding on whether or 
not domestic production exists?    
The requirement to ascertain the absence of pr oduction of an equivalent national product 
aims at allowing the concession of a fiscal benefit of reduction or exemption of a tariff. If one detects the production of a local item similar to the imported good, the operation will not be denied and can be processed with the integral payment of the duties.  
 
As rule, imports of used goods are prohibited for environmental, safety and consumers rights reasons. In order not to impede the industrial development, an exception is made to the 
importations of used machines and equipment that are not available on Brazilian domestic 
market.  It is also possible imports of used factory's production lines related to specific projects and parts and equipment used for maintenance and repair of telecommunication and 
informatics goods even if domestic products are available. 
 7. What is "the normative framework"?  
The Brazilian normative framework related to similarity examination and import licensing 
procedures is based on the following legislatio n: i) Decree-Law No. 37 of 18 November 1966; 
ii) Decree No. 6,759 of 5 February 2009; and iii) Ordinance No. 23 of 14 July 2011. 
 
8. How does Brazil explain why product cove rage may be subject to administrative 
discretion when allowed by th e normative framework?    
 
When allowed by the national legal framework, licensing agencies can require a previous license to import a specific product or for those operations that demand certain control requirements. 
 
9. What products are now covered by such licenses and when were they notified to 
the Import Licensing Committee? 
 
The products subject to automatic licensing are listed in the Administrative Treatment of the Integrated System of Foreign Trade (SISCOMEX) and can also be found on the web page of 
the Ministry of Development, Industry and Foreign Trade (www.mdic.gov.br). Products under 
the special customs regime of drawback are also  subject to automatic licensing. The products 
subject to non-automatic licensing are listed in the Administrative Treatment of SISCOMEX and can also be found on the web page of MDIC. In their majority, they are products which 
may cause damage to human, plant or animal health, products capable of causing WT/TPR/M/283/Add.1 
 
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environmental damage, products classified as weapons or made for warlike purposes, 
products subject to non-tariff quotas as established in the agreements of the Uruguay Round, products subject to tariff quotas and products subject to trade remedies measures established in accordance with the WTO agreements. Brazil's 2012 notification will be 
submitted to the WTO. However, it should be po inted out that there will be no changes in the 
contents of the WTO document G/LIC/N/3/BRA/9 of 16 September 2011.  
3.2.7  Contingency Measures 
 10. Page 60, paragraph 3.59:  The Secretariat report states that with the exception of SECEX Circular No. 20 of April 1996 (pertaining to countervailing duty 
investigations), all of Brazil's legislation has been notified to the WTO and discussed 
in the Committees on Antidumping Practice s and/or on Subsidies and Countervailing 
Measures.  We note that CAMEX Resolution 64 of September 9, 2011 (published in 
Diario Oficial on September 12,  2011, which provides for th e collection of definitive 
antidumping (AD) duties that are entered for consumption within ninety days before the date of the application of provisional measures), has not yet been notified to the 
WTO.  When does Brazil intend to notify SECEX Circular 20 of April 1996 and CAMEX 
Resolution 64 of September 2011 to the Committee on Antidumping Practices? 
 Since SECEX Circular 20 of April 1996 is about to be replaced by new legislation, Brazil does 
not intend to notify it to the Committee on Antidumping Practices. As soon as the new piece 
of legislation is enacted, it will be notified. As far as CAMEX Resolution 64 of September 2011 is concerned, it shall be notified to the Committee in the coming weeks. 
 
Page 60, paragraph 3.60:  The Secretariat report explains that  Brazil's Department 
of Commercial Defense (DECOM) is respon sible for conducting AD, countervailing 
duty (CVD) and safeguard investigations, and that the Chamber of Foreign Trade 
(CAMEX) is responsible for final decisions regarding the application of provisional and definitive AD and CVD measures.  
 
11. Once DECOM has concluded its invest igation and has issued its technical 
recommendation to CAMEX, what opportunitie s exist for interested parties to make 
their views known to CAMEX?   
 
Interested parties have plenty of opportunities to make their views known to DECOM throughout the investigation. The period betwee n the issuing of the final recommendation by 
DECOM and the decision by CAMEX to apply duties is part of the decision-making process and 
therefore is not open to the interested parties.  Nonetheless, after CAMEX decides on the matter  and issues a CAMEX Resolution, not only the 
interested parties but the general public as well place administrative or judicial appeals 
regarding the decision. In the case of issues related to public interest, any claim will be analyzed by GTIP and its conclusions will be submitted to CAMEX Ministerial Council. 
 
12. Are interested parties made aware of  DECOM's recommendation(s) before the 
final decision is issued by CAMEX?   
 
Before any final determination, DECOM will hold a public hearing with interested parties in order to present the essential facts under consideration and provide them with an opportunity for final comments on the investigation. As explained in question 11, interested parties have no access to 
DECOM´s recommendation before a final decision issu ed by CAMEX. It should be pointed out that 
after a decision issued by CAMEX, DECOM´s re commendation is attached to the files and any 
interested party will have access to it. 
 
13. Does CAMEX issue a report addressing  the arguments made by the interested 
parties and describing its analysis and conc lusions reached?  If so, is this report 
made available to the interested parties?   
 Since there are no opportunities for interested parties to make their views known to CAMEX, before it issues its resolution, there is no report addressing the arguments made by the 
interested parties. However, CAMEX Resolutions contains a detailed Annex that almost WT/TPR/M/283/Add.1 
 
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reproduces DECOM´s recommendation. Resolutions and Annexes are made available through 
publication in the Official Gazette.  Page 61, paragraph 3.64:  The Secretar iat report states that in 2012 CAMEX 
established a technica l group for public interest asse ssment (named "GTIP") that is 
tasked with examining the meri ts of requests for the modification or suspension of 
AD or CVD duties for reasons of national interest.  The report further states that 
once GTIP completes its investigation, the conclusions are submitted to CAMEX, 
which then issues the final decision.    14. How are GTIP's conclusions transmitted to  CAMEX?  Does it issue a report?  If 
so, is this report made available to intere sted parties before CA MEX issues its final 
decision?    
Once public interest claims have been analyzed, GTIP issues its conclusions in a written form 
and send them to CAMEX. The period between the issuing of GTIP´s conclusions and any decision by CAMEX is part of the decision-mak ing process and therefore is not open to the 
interested parties. Nevertheless, based on GTIP´s conclusions, CAMEX will issue a Resolution 
with its final decision.     15. What opportunities exist for intere sted parties to comment on GTIP's 
recommendation while it is before CAMEX?   
 There are no opportunities for interested parties to comment on GTIP's recommendation 
while it is before CAMEX,  as explained above.  
 16. Page 61, paragraph 3.65:  The Secret ariat report notes a provision added to 
Brazilian law in 2008 that authorizes the extension of AD and CVD measures in 
instances where circumvention of the measur e  i s  f o u n d  t o  b e  t a k i n g  p l a c e .   I n  
instances where Brazil finds circumvention is  taking place, plea se explain whether 
Brazil extends the AD or CVD measure to a ll imports of subject merchandise from a 
third country found to be circumventing th e measure, or whether the extension of 
the measure is limited to the impo rts by the specific importers and 
exporters/producers found to have circ umvented the AD or CVD measure.   
 
If a circumvention of the AD or CVD measures is  found to be taking place, Brazil extends the 
measure to all imports of subject merchandise from a third country. 
 
17. Page 61, paragraph 3.67:  The Secret ariat report notes that DECOM plans to 
publish new AD regulations. When does  Brazil anticipate publishing its new 
AD regulations?   
 
Brazil's new antidumping regulations are expected to be published soon, but it is not possible to set a specific date. 
 
3.2.9  Sanitary and phytosanitary measures  
18. Page 65, paragraph 3.86: The Secretaria t report indicates that the Ministry of 
Fisheries and Aquaculture (MPA) carries out sa nitary controls for the imports of fish 
and aquatic animals and their reproductive ma terials. Can Brazil please confirm that 
the MPA is responsible for sanitary cont rols for such imports?  Does the MPA 
coordinate with the Ministry of Agricultur e, Livestock and Food Supply (MAPA) for 
such imports? If so, please explain.   
 
The sanitary control for aquatic organisms in Brazil operates under a two-tiered system. The 
Ministry of Fisheries and Aquaculture (MPA) is responsible for the analysis of aquatic animal health, whereas the Ministry of Agriculture, Livestock and Food Supply (MAPA) focuses on 
human public health issues. Therefore, the sanitary controls carried out by the Ministry of 
Fisheries and Aquaculture pertain only to Brazilian aquatic organisms and the sanitary issues that can affect their farmed and wild populations in the country. 
 WT/TPR/M/283/Add.1 
 
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Taking into consideration this two-tiered process, both Ministries operate in close cooperation 
for a comprehensive sanitary analysis and control. In practical terms, a request for the importation of an aquatic product for the first time in Brazil is first addressed to the Ministry of Agriculture, Livestock and Food Supply  (MAPA), which is the governmental body 
responsible for labeling registration and for the specific sanitary requirements regarding 
human public health.   
Afterwards, the Ministry of Fisheries and Aquaculture (MPA) proceeds to the analysis of the 
sanitary issues affecting the Brazilian aquatic animal health status. In this case, MPA uses the Import Risk Analysis as a main tool to evaluate the risks associated with the importation of a given product.   
 
3.3  Measures Directly Affecting Exports 3.3.2  Export Taxes 
 
19. Page 69, paragraph 3.104:  The Secretar iat report states that "In the case of 
raw hides and skins, taxes apply on all expo rts with the stated purpose of ensuring 
supply to the domestic market." It appe ars this export tax has been in place 
since 2008. How long does Brazil expect this  export tax to remain in place? Please 
explain the reason for mainta ining the export tax.    
 
The export tax on wet blue leather was adopted in 2001 in a context where most leather 
importers apply tariff escalation to the leather chain. For the time being, there is no phasing-out or plan to eliminate this tax. 
 
3.3.4  Export support and related tax measures  
20. Page 73, paragraph 3.126:  The Secr etariat report notes that the Special 
Regime for the Purchase of Capital Goods for Exporting Enterprises (RECAP) allows 
for the suspension of certain taxes provid ed the company exported at least 50% of 
its gross income from sales of goods and se rvices in the calendar year preceding its 
request to use the scheme, and the company commits to continue to do so for the 
next two calendar years. How does Brazil view  this program in light of Article 3 of 
the Agreement on Subsidies and Countervailing Measures? 
 
The regular regime for the suspended taxes (PIS  and COFINS) is a non-cumulative taxation 
system based on a credit mechanism. This regime allows the taxpayer to calculate and deduct the 
respective tax credits relating to goods (including capital goods) and services used as input on the 
provision of services or production of goods for further sale.   By this system, however, companies that export a significant amount of their production often 
have insufficient tax liabilities or debits to offset their tax credits. As a result, many companies 
accumulate credits throughout the fiscal year.  
RECAP is only target to simplify the use of the mentioned credits to which companies are already 
entitled.   
Also on competition, RECAP is designed to keep  tax neutrality. RECAP therefore suspends taxes, 
which, in turn, do not generate credit to be used along the value chain.   21. Page 74, paragraph 3.128:  The Secr etariat report notes that the Special 
Regime for the Information Technology Expo rtation Platform (REPES) allows for the 
suspension of certain taxes otherwise due contingent on a company committing to export software and IT services for at least 80% of its gross annual income. How 
does Brazil view this program in light of Article 3 of the Agreement on Subsidies and 
Countervailing Measures?  
REPES has the same logic as RECAP, its aim target to simplify the use of tax credits to which 
companies are already entitled (see answer for question 20).   WT/TPR/M/283/Add.1 
 
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3.3.5  Export finance, insurance and guarantees 
 22. Page 75, paragraph 3.134:   The Secr etariat report notes that the stated 
conditions for participating in certain ex port financing under BNDES-EXIM programs 
"include domestic content/production thre sholds."  Please explain these programs, 
including the specific conditions for participating in these programs. How does Brazil view these programs and associated co nditions, in light of Article 3.1(b) of 
the Agreement on Subsidies and Countervailing Measures?   
 As explained in the Secretariat's report, the parameters set out by BNDES only simplify certain bureaucratic procedures, the programs benefit equally products that do not comply 
with the parameters. 
 3.4  Measures Affecting Production and Trade 
3.4.1.  Competition Policy and Price Controls 
 Page 82, Paragraph 3.167:   The Secretariat report states that Brazil's competition law 
has been refined and expanded, "with a refe rence to the abusive use of intellectual 
property rights," in the non-exhaustive  list of anti-competitive practices. 
 23. Please provide illustrative examples of the types of "abusive  use of intellectual 
property rights" that would be considered  anti-competitive practices under this 
provision, especially as this standa rd may be applied to copyright law. 
 
The abusive use of intellectual property rights are defined as acts that characterize violation of the 
economic order, which in their turn are those that  (i) limit, restrain or in any way injure free 
competition or free initiative; (ii) control the relevant market of goods or services; (iii) arbitrarily 
increase profits, and (iv) abusively exercise a dominant position. 
 24. The Secretariat report further states  that in Brazil's new competition law 
"compulsory licensing of intellectual property  rights is explicitly mentioned among the 
possible remedies for conditio nal clearance of mergers and the possible penalties for 
anti-competitive conduct."  Please explain wh at specific practices or behavior trigger a 
compulsory licensing remedy and provide exampl es of how this remedy has been used.  
If this remedy has not yet been utilized, plea se provide examples of how it may be used 
in practice.   
Please refer to question 23 for the definition of specific practices or behavior that may trigger a 
compulsory licensing remedy. For cases of comp ulsory licenses in Brazil, please refer to 
paragraph 3.283 of the Secretariat's Report. For the process itself of determining if an specific act characterize violation of the economic order and the penalties in case of conviction, including 
compulsory licenses of IPRs, please refer to paragraphs 3.164, 3.165 and 3.167 of the 
Secretariat's Report.  
3.4.2.  Incentives 
 Page 97, paragraph 3.221:  The Secretariat states "The BNDES maintains a number of 
schemes that facilitate access to credit.  Operations under these credit lines may be 
carried out directly by the BNDES, or through accredited financial institutions.  Projects 
eligible for credit include: implementati on, expansion, and modernization of fixed 
assets; new machinery and equipment prod uced in Brazil and accredited by the 
BNDES …."  
 25. How are interest rates for BNDES loans conditioned on local content calculated?  In 
the response, please describe how interest ra tes for such loans compare to market rates 
available in Brazil.  
Interest rates for BNDES loans are not conditioned on local content. As far as interest rates are 
concerned, interest rates applicable to different medium to long term credit lines and programs 
operated by BNDES always reflect the cost of funding plus a basic spread (margin for operational expenses) plus a risk spread (destined to cover th e risk of nonperforming loans). As private banks WT/TPR/M/283/Add.1 
 
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in Brazil, as a rule, are focused on short-term financing, comparisons between interest rates 
charged cannot be properly performed.  26. It appears that certain BNDES loans ar e conditioned on the purchase or use of 
products of domestic origin.  Please discuss this requirement in the context of Article 2 
of the TRIMS Agreement and Article 3 of the SCM Agreement.  
BNDES' loans are not conditioned either on the purchase or the use of products of domestic origin. 
Aspects like technology, production steps and added value may be considered. In this sense, they do not fall within the purview of said Agreements.  
Page 97, paragraph 3.222:  The Secretariat report states "Products with a domestic 
content, in value terms, of at least 60% ar e automatically eligible for financing, while 
products with local content below the threshold are subject to a non-automatic analysis 
procedure." 
 27. Please describe the non-automatic analysis  procedure.  What criteria does a local 
company have to meet to qualify for fi nancing under the non-automatic analysis 
procedure?  The criteria that companies have to meet in order to qualify for financing under the non-automatic 
analysis procedure are described at: http ://www.bndes.gov.br/SiteB NDES/bndes/bndes_en/ 
Institucional/Corporate_Governance/Project_Selection_Process/index.html  
28. Please discuss this requirement in the context of Article 2 of the TRIMS Agreement 
and Article 3 of the SCM Agreement.  
Eligibility for BNDES financing is not contingent on local content requirements. Aspects like 
technology, production steps and added value may be considered. In this sense, they do not fall within the purview of said Agreements.  
3.4.4  Government Procurement 
 29. Page 103, paragraph 3.246: The Secretar iat report notes that Brazil has issued 
at least eight decrees establ ishing preference margins fo r certain national products 
in tendering procedures.   
Do additional preference ma rgins exist, established th rough other decrees? Are the 
details of such margins on the ComprasNet website? Is information on preference 
margins for a given product detailed in individual tender documents?  
It is important to note that, up to the end of 2012, the final year under the current TPR, there was 
only one decree establishing margins of preference  for national products in tendering procedures. 
As established in each Decree, information on preference margins has to be mentioned in all 
tender notices related to the procurement of the listed products.  
 30. Page 104, paragraph 3.251: The Secret ariat report states that "tendering 
procedures may be designated as national or international at the Government's 
discretion."  Additionally, the report notes that only 0.16% of the total value of procurement contracts awarded in 2011 was do ne through international tendering.   
 
What are the criteria for determining whet her the tendering procedures are national 
or international?  
The choice for international tendering is a discretionary decision of the government, based on 
the national interest.  
 
31. Page 105, paragraph 3.254: The Secret ariat report notes that substantial 
information on federal government pr ocurement is available online at the 
ComprasNet website.   WT/TPR/M/283/Add.1 
 
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Are procuring entities at the federal level in Brazil required to publish all tenders 
and tender documentation electronically though ComprasNet?  Is there an estimate of how many tenders, as a percentage of  the total number of procurements, are 
published on ComprasNet? How many su b-federal entities use electronic 
procurement portals si milar to ComprasNet? 
 All entities at the Federal level are required to  publish tenders and tender documentation online, 
on Comprasnet. Although states and municipalities may adhere to use Comprasnet, there are no 
estimates on the proportion of contracts publishe d by them on that website, nor the number of 
states and municipalities using similar means.  
 
3.4.5  Intellectual Property Rights 
 32. Page 113, paragraph 3.290:  The Secretar iat report states "The protection of 
trademarks in the Brazilian system grants th e right or priority (six months) and the 
protection to well-known trademarks. Brazilian law also offers protection for collective 
trademarks and famous trademarks." Does such protection exist against marks when 
the goods or services are not similar to the goods or services associated with the well-
known mark?  Yes, such form of protection against a trademark does exist, provided that use of that trademark 
in relation to those goods or services would indicate a connection between those goods or services 
and the owner of the registered trademark and pr ovided that the interests of the owner of the 
registered trademark are likely to be damaged by such use. 
 
Page 114, paragraph 3.294: The Secretariat reports notes that after a geographic 
indication (GI) registration application is file d, a formal examination of the application is 
conducted.   
 33. What are the grounds for refusing protection/registration of GI?   
A GI application may be refused (i) if the indication for which protection is sought is considered as 
the common name for designating such product or service or (ii) if the applicant does not comply with the formal requirements, that is, among others, a complete application form, the payment of 
taxes, a detailed specification of the area covering the GI, and, in case of foreign GIs, evidence 
that the GI is protected in the country of origin and the translation of official documents to Portuguese. 
 
34. The report also notes that an opportuni ty exists for third parties to file an 
opposition to the GI.  Are the grounds for opposition the same as those for the formal examination?  If not, please specify the grounds for opposition. 
 
Yes, the grounds for opposition are the same.  
35. Is there also an opportunity for intere sted parties to seek cancellation of a 
registered GI?  If so, please explain the procedure for seeking cancellation. 
 
Yes. Administrative processes in Brazil follow Law nº 9.784/1999, which stipulates that interested 
parties shall have the opportunity to dispute deci sions by public organs provided the allegations 
are not made in bad faith. In addition to that, the right to petition is a Constitutional principle, and interested parties are therefore entitled to initiate  judicial proceedings to seek cancellation of a 
registered GI. 
 36. Page 115, Paragraph 3.299:  The Secretar iat report indicates that a draft bill 
updating and amending Law No. 9,610/1998 is currently being reviewed at the 
Department of Intellectual Property in th e Ministry of Culture prior to its being 
forwarded to Congress.  Please explain what the draft bill covers, and provide an update 
on the status of the draft bill.  
 The draft bill for the reform of the current Copyri ght Law of Brazil is under discussion within the 
Government among the Ministries with responsibi lity over the subject. Under the Brazilian Law, 
such draft bills are protected against unauthorized disclosure and the Brazilian Government is thus WT/TPR/M/283/Add.1 
 
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not in a position to disclose specific details. Nevertheless, in general terms, the Brazilian 
Government intends that the draft bill contains provisions to revise the exceptions and limitations to the rights, new regulations for the contracts involving copyright and the reformulation of the provisions related to the collective management of rights, besides new specifications related to the 
circulation of protected work in the internet. 
 37. Page 116, Paragraph 3.303:  The Secretaria t report states that Brazilian law grants 
copyright holders the right to initiate proc edures for the prosecution of importers of 
pirated goods and that Decree No. 6,759/2009  provides the legal framework for border 
measures on goods suspected of piracy.   Please provide examples of the types of 
copyright piracy cases that have been pros ecuted under these provisions in the last 
year.  In addition, please explain what ha ppens to the suspected pirated goods during 
the judicial proceedings.  
The Secretariat report states that Decree nº 6.759/2009 provides the legal framework for border 
measures on goods suspected of piracy or counterfeit. Examples of piracy cases that have been prosecuted under these provisions are related to movies, software and games. These suspected 
goods are temporarily apprehended by the custom au thority for notification of the right-holder in 
order to allow the initiation of judicial proceed ings. In the process of such proceedings, the 
suspected goods are stored until the final decision is published.  
38. Page 116, Paragraph 3.307:  The Secretar iat report states that Brazil, through the 
National Council to Combat Piracy and Other Crimes Against Intellectual Property Rights 
(CNCP), has implemented 23 strategic projects to fight piracy and other IPR violations, 
six of which were given priority : City Free of Piracy; Course for Public Agents; Legal Fair; 
Commerce Against Piracy; Internet Gatewa y of the Combat Against Piracy; and 
Partnerships and Cooperation with Internet Service Providers.   
 
Please provide an update on the status of  these strategic projects and a summary of 
tangible benchmarks or milest ones achieved as a result. 
 
The activities of the CNCP are summarized in a biannual report available for consultation in the 
Council's website. The 2011/2012 report is not yet available, with publication planned for later in this year. 
 
39. Page 116, Paragraph 3.308:  The Secretar iat report provides statistics regarding 
arrests with regards to piracy and counterfeit ing.  Does Brazil have available statistics 
regarding prosecution of those arrests? Also,  what fines, penalties or sentences would 
apply to such arrests?  Overall prosecution statistics are not currently available. The fines, penalties or sentences 
applicable to such arrests are available under the Law nº 9.279/1996 (Industrial Property Law) 
and Law nº 9.610/1998 (Copyright Law). Please refer to paragraph 3.305 of the Secretariat's Report for further information. 
 
4.  Trade Policies By Sector  
4.2.3  Domestic support measures 
 Page 128, Table 4.5:  With regard to the table on "Price Support Programmes, 2012":  
 
40. The Secretariat report states that th e Brazilian government fixes minimum prices 
for various products, and "credit lines and commercialization instruments" are used to 
help maintain the guaranteed minimum pric e under the Policy of Guaranteed Minimum 
Prices (PGPM).  We note that Brazil does not notify to the WTO Committee on 
Agriculture all of these instruments of the PGPM as market price support measures.  
Please explain why this combination of inst ruments used to guarantee minimum prices, 
even in a targeted manner, is not notified as market price support measures? 
 Brazilian credit lines and commercialization instruments are not directed towards maintaining higher market prices, but may generate that result, as producers become more prepared to wait 
for the best time to sell their production. Therefore, Brazil does not consider these measures to WT/TPR/M/283/Add.1 
 
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constitute a market price support mechanism. Acco rdingly, all the support under those credit lines 
is notified under Supporting Tables DS:2 and DS :9 since they are generally available for all 
products.  
 
41. The table also states that the Federal Government Acquisitio n Program (AGF) is 
applied to specific products and regions, for up to 100% of a farmer's production.  
Please provide further detail, including th e regions from which rice was procured 
since 2009, the percentage of farmers' producti on that was eligible to be purchased in 
those regions, and the actual proc urement levels in those regions. 
 MAPA assigns budgetary allocations according to the current needs and conditions of each 
commodity market, after consulting other areas of the government. The access to different "Policy 
of Guaranteed Minimum Prices" (PGPM) programs , including the PEP, is decided according to 
available budgetary allocations and the specific conditions of the market.  
 
In order to make use of any PGPM program, at least two conditions apply: i) the market price should be noticeably below the minimum price; and ii) there are available budgetary allocations. It 
is not unusual that the market price is below the minimum price in some part of the country, but 
no supporting program is in place. Based on that fact, Brazil understands that the eligible production of AGF is the actual quantity procured.   
The table below shows the figures regarding the rice acquired under the AGF since the 2008/2009 
crop year.  
 
Crop year Region Government acquisition (MT) Region production (MT) 
2008/2009 South 292 9,116,400 
2009/2010 - - - 
2010/2011 South 176,401 10,091,100 
2011/20121 South 219,956 8,984,100 
 
1 Provisional. 
 
42. The table states that the Premium for Pr oduct Outflow (PEP) is used to shift the 
supply of agricultural products across region s so as to avoid shortages and prevent the 
accumulation of stocks, and is in additi on to guaranteeing minimum prices for 
producers.  We note that for certain commo dities, such as rice, much of the product 
channeled through the program is not shifted ac ross regions, but rather it is exported.  
Please confirm the products that are eligible  for export and what percentage of rice, 
wheat, and corn were exported in  each of the past five years? 
 The PEP program for rice and wheat is not contingent upon export performance. Its objective is to 
allow an even distribution of the said food staples across the country. The PEP's electronic control 
system presently does not contain information about the final destination of the products.  4.4  Energy 
4.4.3  Hydrocarbons 
 43. Page 141, paragraph 4.102:  The Secretaria t report states that the Special Customs 
Regime (REPETRO), "also allows for the "fictitious exportation" and subsequent 
importation, under the temporary admission  customs regime, of goods produced in 
Brazil and sold in foreign currency to an entity domiciled abroad for use in the 
exploration of petroleum and natural gas in  Brazil."  What is meant by "fictitious 
exportation"?  A "fictitious exportation" occurs when there is an export and a concomitant temporary admission 
of the same goods. In other words, the expo rted goods do not leave the customs territory. 
 Foreign concessionaries are the beneficiaries of this special procedure when they want to buy and 
use Brazilian equipment and parts in E&P activities without paying taxes levied on sales in the 
internal market.   WT/TPR/M/283/Add.1 
 
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44. Page 143, paragraphs 4.110-4.111:  The Secretariat report notes that National 
Agency for Petroleum, Natural Gas, an d Biofuels (ANP) holds annual "reverse 
auctions" of domestically produced biof uel, under which PETROBRAS purchases the 
entire volume of biofuel and resells the product to distribution companies.  How 
does Brazil view this program, includin g the requirement that the fuel purchased 
must be domestically produced, in light of  Article 3 of the Agreement on Subsidies 
and Countervailing Measures? 
 
Federal Laws No. 11.097/2005 and No. 11.116/2005 regulate biodiesel production, commercialization, imports and taxation. Biodiesel purchases for meeting the mandatory 5% blending target have distinct governmental purposes, to foment renewable energy and family 
agriculture. They constitute a government procurement undertaken by the National Agency 
for Petroleum, Natural Gas and Biofuels (ANP). According to the legislation, 80% of the production must come from biodiesel refiners possessing the "Social Fuel Seal" as the policy 
aims to promote rural development. There are no restrictions based on the source of the 
production for non-mandatory uses of biodiesel in the country.  
4.5  Services 
 Pages 152-154, paragraphs 4.161 and 4.168:  The Secretariat report notes that the 
reinsurance market in Brazil ha s been open to private reinsurance companies, including 
foreign-owned and foreign-based firms, since 2007.  However, in March 2011, Brazil 
implemented two resolutions that substant ially change the rules on reinsurance 
operations, and largely negate the gains of the 2007 reform.  Resolution No. 232 
prohibits reinsurers from transferring mo r e  t h a n  2 0 %  o f  t h e  p r e m i u m  t o  c o m p a n i e s  
belonging to the same financial group, while  Resolution No. 225 mandates that 40% of 
reinsurance be placed locally wi th reinsurers in Brazil.   
 
45. What is the status of these resolutions?    Resolutions No. 225/2010 and 232/2011 are in force. Regarding Resolution No. 232/2011, the 
restriction for transferring more than 20% of the premium is only applicable to companies 
belonging to the same financial group and headquartered abroad.  
46. Given that these resolutions ultimately  raise costs for insurers and insurance 
consumers in Brazil, reduce effective ri sk management strategies, and dampen 
competition, how do these resolutions compor t with Brazil's statement in its own report 
that the reinsurance market spurs the develo pment of the domestic insurance market by 
providing more comprehensive and innovative  products and increasing competition in 
the local market?  
Resolutions No. 225/2010 and No. 232/2011 were issued to address unethical and unfair 
competition practices that were detected, and that  were hindering the achievement of the primary 
goal of promoting a more intensive local reinsurance market, as set from the beginning in the new 
2007/2008 regulatory framework for the Brazilia n reinsurance market. Resolution No. 232/2011 
has also the intent to minimize concentration risk s. Therefore, such Resolutions did not represent a 
change, but instead an ordinary supervisory acti on in accordance with SUSEP´s role and the 
Federal Government objectives.  
 Capacity and variety of reinsurance coverage are in fact growing. The number of local reinsurers has risen to 14 as of May 2013 – most of them foreign capital reinsurers – against 6 at the end 
of 2010, and there are already 29 admitted reinsurers and 60 occasional reinsurers registered at 
SUSEP. Prices have fallen, capacity has grown, and the open reinsurance market in Brazil is actually, as intended, spurring development. 
 
WT/TPR/G/283  
2  General Economic Environment  
2.2.5  Government Procurement  47. Page 10, paragraph 2.36:  The Governme nt report notes the establishment of a 
"special procurement regime" in order to fa cilitate the organization of the upcoming WT/TPR/M/283/Add.1 
 
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s p o r t s  e v e n t s  t o  b e  h o s t e d  b y  B r a z i l .   W h at is the projected timeline for the "special 
procurement regime" for sporting events?  Is there an end date for this procurement regime?  The Special Procurement Regime, established by the Law No. 12.462/2011, was initially 
designed to facilitate the construction of public infrastructure for sporting events such as the 
Olympic and Paralympic Games in 2016, the 2013 FIFA Confederations Cup and the 2014 FIFA 
World Cup. However, due to the good results attained by its introduction, the Special Procurement Regime was extended for infrastructure works incl uded in the Government's Growth Acceleration 
Program (PAC), as well as for those regarding social policies of education and health. The 
amendment to the Law No. 12.462/2011, by  the Law No. 12.745/2012, withdrew the 
establishment of a limit of time for the ut ilization of the Special Procurement Regime.  
 
48. Page 11, paragraph 2.43: With respect to the domestic credit line, the Government 
report states:  "Credit lines offered by BNDES encompass long term financing for the development of investment projects and for the commercialization of new machines and 
equipments, as well as the financing of Braz ilian exports, taking into account ethical, 
environmental and sustainable development principles. BNDES' credit lines also 
contribute to strengthen the capital of pr ivate companies and to the development of 
capital markets."  Are the domestic lines of fered for the "development of investment 
projects and for the commercialization of new machines and equipment" offered to 
small agriculture aircraft manufacturers?  If  so, what are the terms and conditions of 
such financing?  Are these lines separate and distinct from the export credit lines 
referenced in paragraph 2.47?  
 Terms and conditions for commercialization of small agriculture aircraft in Brazil are separate and 
distinct from those applicable to export credit lines and may be known at: 
http://www.bndes.gov.br/Sit eBNDES/bndes/bndes_pt/Instituciona l/Apoio_Financeiro/Produtos/FIN
AME_Maquinas_e_Equipamentos/ 
 
49. Page 11, Paragraph 2.47:  The Government  report explains the rational for BNDES 
as follows: "BNDES offers two export credit lines: a) pre-shipment  credit, which supplies 
working capital for Brazilian exporters; and b) post-shipment credit, which targets the 
commercialization of exported goods and serv ices through buyer's or supplier's credit, 
in accordance with international standards. "  In accordance with which international 
standards are the lines being offered? What  are the terms and conditions associated 
with these credit lines? 
 BNDES export credit lines follow very traditional and well-known mechanisms and offer typical 
terms and conditions available for export financing. Those terms/conditions are detailed on 
Table A3.1 of the Report of Secretariat (WT/TPR/ S/283) and are consistent with all international 
commitments undertaken by Brazil.   
3  Trade Policy Developments (2009-12) 
3.3.1  MERCOSUR  
50. Page 15, paragraph 3.19:  The Government report states that the Common Market 
Council Decision 25/12, extended the authoriz ation for unilateral tariff increases to up 
to two hundred tariff lines until the end of 2014.  Further, the report notes that Decision 
CMC 25/12 is pending ratification  by all members to enter into force.  Please provide an 
update on the status of the Brazilian im plementation of this decision.     
 Decision of the Council of the Common Market MERCOSUR No. 25/12 is in the process of 
incorporation into the Brazilian legal system. Therefore, it will be in force after only the publication 
of a presidential decree on the subject.  
4.  Trade Institutional And Regulatory Framework 
4.1.  Cross-Cutting Issues 4.1.3  Sanitary and phytosanitary issues 
 
51. Page 20, paragraph 4.16: The Government report states that Brazil's SPS measures are mostly based on standard s and guidelines produced by Codex 
Alimentarius, OIE, and IPPC.  Can Brazil pl ease specify whether there are measures 
that are not based on the standards deve loped by international standard setting WT/TPR/M/283/Add.1 
 
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organizations?  If so, please identify  the measures and explain why they are 
maintained if they are not based on stan dards developed by international standard 
setting organizations?    
Brazilian SPS measures are based on the available international standards. However, in order to 
preserve access to important markets, the country has been in some cases compelled to temporarily adapt its sanitary system to other co untries' requirements pending the adoption of the 
said standards. 
 4.1.2  Trade facilitation   
52. Page 20, paragraph 4.13:  The Governme nt report notes that 81.6% of imports 
were cleared in one day or less in 2012.  What is the average time frame for the remaining percentage of imports?  Are steps being taken to decrease the clearance time 
for the remaining percentage of imports that  were not cleared in one day or less?   
 In 2012, the average customs clearance time for those imports cleared in more than one day was 
6,11 days. Brazil has been adopting a series of measures to modernize the customs system, 
including investment in infrastructure, technology and streamlining of procedures. Improvements to this are an ongoing exercise. Relating to reducing customs clearance time, the following initiatives can be highlighted: 
 
- In August 2012, a National Center for Customs Risk Management (CERAD) was set up 
to improve the risk management and targeting of transactions; 
- The "certified enterprise" scheme (Blue Line), under which companies benefit from 
streamlined customs procedures, is currently under revision with a view to encourage more companies to join it; 
- A new computerized customs and foreign trade system is under construction. The aim 
is to create a more efficient single foreign trade window, through which many documents, formalities and data items will be simplified; 
- By the end of 2013, non-intrusive inspection equipments, for containerized cargo 
inspection, will be in place at the major points of entry into Brazil; 
- Since May 2013, 24/7 working hours for customs clearance has also been adopted at 
8 major seaports. 
 
4.1.6.  Intellectual property  
53. Page 23, paragraph 4.33:  The Government report states that the CNCP has 
adopted a three-pronged approach to co mbat piracy, encompassing repressive, 
economic and educational initiatives.  Plea se provide examples of some of the anti-
piracy efforts conducted by CNCP in the last year, including specific efforts to 
address book piracy.  
 Please refer to paragraphs 3.307 to 3.309 of the Secretariat's Report for such examples. 
 
54. Page 23, paragraph 4.34:  The Government  report states, "It is expected that the 
work of the Council will continue to build up  respect for IP rights in a balanced way, 
ensuring also that the abuse of enforcement mechanisms by right-holders is effectively 
curbed."  What specific types of abuse of enforcemen t mechanisms has Brazil encountered?  What 
specific steps is Brazil taking to curb abuse of enforcement mechanisms by right-
holders?    
Work of the CNCP has the goal of disseminating respect for IP rights among the Brazilian society, 
providing information on the damages caused by the violation of these rights. In addition to it, the 
Council also participates in activities of dissemination of the damages caused by abuse of 
enforcement mechanisms. The Br azilian competition law (Law 12.529/2011) provides CADE with 
legal instruments to curb the abuse of enforcement mechanisms. While CADE has not at the present moment encountered any case of abus e of enforcement mechanisms by intellectual 
property right-holders, it has investigated and prosecuted other cases of sham litigation. 
 WT/TPR/M/283/Add.1 
 
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4.2.8  Telecommunications 
 55. Page 28, paragraph 4.80:  The Go vernment report notes Law 12.485 of 
12 September 2011, which changed and unified the regulatory framework for pay TV 
services.  Please provide additional detail  on the implementation of the aspects of 
Law 12.485 that establish requirements for the amount of locally-produced 
programming that must be carried by pay TV operators and on pay TV.   
 
As mentioned in the report, the main effects of Law 12.485, of 12 September 2011, regarding the telecommunications sector was the removal of the previously existing limit on foreign investment in Cable TV. Law 12.485 also eliminated previous limitations on fixed-line telephony 
concessionaires to provide cable-TV services and removed regional restrictions on telecom 
operators, allowing them to provide pay TV services anywhere in Brazil.  
In parallel, in order to encourage the developm ent of the Brazilian audiovisual sector, the Law 
provided rules determining the airing of a minimum number of hours of local content within certain channels and also establishing a minimum number of channels with Brazilian content to be 
provided to customers within each Pay TV package, as follows: 
 
- In "qualified space channels", at least three hours and thirty minutes of weekly 
primetime broadcast content should be Brazi lian, and half should be produced by an 
independent producer in Brazil. For the purposes of the Law, "qualified space 
channels" are those that, during primetime, mostly air audiovisual contents which are considered "qualified space", i.e., content which is not religious or political in nature, 
and which does not include rallies and sporting events, contests, advertising, 
telemarketing, infomercials, games, free airtime for political messages, news content and talk shows. 
- In all packages offered to the subscriber , for each three "qualified space channels" 
existing in the package, at least one must be a Brazilian "qualified space channel", up to a maximum of twelve "Brazilian qualifie d space channels". Among these "Brazilian 
qualified space channels", at least one third must be programmed by independent 
Brazilian programmers. 
- The law also establishes the possibility of  waiving or diminishing these requirements 
when the company proves that the conditions are impossible to be fulfilled or when 
there are technological limitations (for example, as may occur with companies 
operating satellite-based services). 
- It is important to note that these obligations will be introduced gradually and that the 
law establishes a "sunset clause" for these rules, which will apply only during the first 
twelve years that the Law is in force (a rt. 41, Law 12.485/2011). The supervision of 
these provisions is the responsibility of An cine – National Cinema Agency, linked to 
the Ministry of Culture.   
 
Other Questions  
56. When does Brazil plan to implement the 750,000 MT tariff rate quota for wheat 
(1001.100000) as indicated in Schedule III of Brazil's Uruguay Round goods schedule?  
 
Brazil considers that the current import regime for wheat (applied tariff of 10%) is more favorable 
to foreign suppliers of wheat than would be the im plementation of the said TRQ. Besides, for the 
record, Brazil has opened a duty free TRQ for 2,000,000 MT from March to July 2013.  
57. We understand that on 22 May 2013, Braz il's national council on fiscal policy 
(CONFAZ) approved a new calculation of th e state value-added tax (ICMS) charged on 
inter-state sales of any product that has ov er 40% of its content imported.  The new 
calculation is to apply uniformly to all states.  The new calculation establishes a scale 
that determines the level of  the tax depending on the amount of imported content 
contained in the final product.  Specifical ly, any product with less than 40% imported 
content will be considered Brazilian and exem pt from the tax.  If imported content 
constitutes between 40% and 70% of the fina l product, the product will be considered 
half Brazilian and subject to a two percent IC MS.  If the product has over 70% imported 
content, it will be subject to the full four percent ICMS. Can Brazil please explain how it WT/TPR/M/283/Add.1 
 
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views this tax in light of GATT Article III an d articles 1.1(a)(1)(ii) and 3.1(b) of the 
WTO Agreement on Subsidies and Countervailing Measures? 
 There is absolutely no discrimination between goods with domestic or imported content. The 
measures are part of the CONFAZ's ICMS Convention No. 38 of 22 May 2013, which regulated 
Senate Resolution No. 13 of 25 April 2012.  In fact , this measure has just established guidelines to 
implement a new apportionment rate of the ICMS tax levied on interstate sales in which the seller 
is located in one Brazilian state and the buyer in another. The total ICMS levied on a sale of a 
particular product in the internal market is always the same, no matter its imported content.  The ICMS is a state-imposed value-added tax and, as a general rule, about two thirds of the total 
ICMS levied on an interstate sale operation is collected by the state of origin and one third by the 
state of destination. From January 2013 on, for imported goods or those produced with more than 40% of imported content, only 4% of the ICMS ha s been collected by the state of origin and the 
rest collected by the state of destination. That means that, in such cases, about 75% of the total 
ICMS levied on the sale of these goods in the in ternal market is collected by the buyer state. 
 
To sum up, the total ICMS levied on a sale of a particular product in the internal market is always 
the same, no matter its imported content. Howeve r, the apportionment of this tax between two 
different states can vary, depending on the imported content. The Convention only clarified this calculation. 
UNITED STATES (Follow-up questions) 
WT/TPR/S/283 
 
56. When does Brazil plan to implement the 750,000 MT tariff rate quota for wheat 
(1001.100000) as indicated in Schedule III of Brazil's Uruguay Round goods schedule? 
Initial reply: Brazil considers that the current  import regime for wheat (applied tariff of 
10%) is more favorable to foreign suppliers of wheat than would be the implementation 
of the said TRQ. Besides, for the record , Brazil has opened a duty free TRQ for 
2,000,000 MT from March to July 2013.  
Follow-up question 1: We understand that  Brazil believes its current wheat import 
regime is more favorable to foreign wheat suppliers than implementation of the TRQ. 
Nevertheless, as part of its Uruguay Ro und (UR) commitments, Brazil agreed to 
establish a duty-free 750,000 MT TRQ for whea t, and in an April 16, 1996 Brazil notified 
the WTO of its intent to withdraw the wheat TRQ by initiating the Article XXVIII process. 
Thus, whether or not Brazil`s current import regime is more favorable does not alter its 
Uruguay Round commitment. We therefore ag ain ask that Brazil explain: When does 
Brazil plan to implement the 750,000 MT TRQ as  indicated in Schedule III of its Uruguay 
Round goods schedule?  
As stated before, Brazil considers that the current import regime for wheat represents a major 
achievement for foreign suppliers of wheat as Brazil has an applied tariff of 10% and a duty free TRQ for 2,000,000 MT (from March to July 2013). This treatment largely encompasses the results 
of the implementation of the said TRQ. 
 Page 114, paragraph 3.294: The Secretariat reports notes that after a geographic 
indication (GI) registration application is file d, a formal examination of the application is 
conducted.  33. What are the grounds for refusing protection/registration of GI?  
 
Initial reply: A GI application may be refused (i) if the indication for which protection is sought is considered as the common name for designating such product or service or (ii) if the applicant 
does not comply with the formal requirements, that is, among others, a complete application form, 
the payment of taxes, a detailed specification of the area covering the GI, and, in case of foreign GIs, evidence that the GI is protected in the co untry of origin and the translation of official 
documents to Portuguese. 
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Follow-up question 2: Will GIs be refused if they are likely to cause confusion with prior 
trademarks for related goods and/or services ? Also, is there an opportunity for prior 
trademark owners to oppose and/ or file a petition to cancel a registered GI on the basis 
that it is likely to cause confusion with  prior trademarks for related goods and/or 
services? 
 There is no jurisprudence regarding the compatibility of a trademark and a GI. The only related 
provisions in the Brazilian Industrial Property Law are those required by Articles 22.3, 23.2 and 
24.5 of the TRIPS Agreement.   34. The report also notes that an opportuni ty exists for third parties to file an 
opposition to the GI. Are the grounds for opposition the same as those for the formal 
examination? If not, please specify the grounds for opposition.  
Initial reply: Yes, the grounds for opposition are the same.  
 35. Is there also an opportunity for intere sted parties to seek cancellation of a 
registered GI? If so, please explain th e procedure for seeking cancellation.  
 Initial reply: Yes. Administrative processes in Brazil follow Law No. 9.784/1999, which stipulates that interested parties shall have the opportunity to dispute decisions by public organs provided 
the allegations are not made in bad faith. In addition to that, the right to petition is a 
Constitutional principle, and interested parties are therefore entitled to initiate judicial proceedings 
to seek cancellation of a registered GI. 
 
Follow-up question 3: Are the grounds for f iling cancellation proceedings the same as 
those for formal examination and opposition ? If not, please indicate the specific 
grounds. Furthermore, is it possible for an inte rested party to file a petition to cancel a 
registered GI on the basis that the GI has become the common name for the relevant good or service after the date of registration?  
Yes, the grounds for filing cancellation proceedings are the same, since GIs granted without 
compliance with the requirements of the Brazilian law are subject to such proceedings, ex officio or by any other interested party. With regard to the second question, there is no jurisprudence in this 
matter. 
UNITED STATES (ADDITIONAL FOLLOW-UP QUESTIONS)  
Follow-up question 4: With respect to the response to EU question 72, is the 
determination whether a patent application is  "against public health" based solely on a 
single criteria - i.e., the criteria set forth in the response to questions 70, (that ANVISA 
"verifies if the invention contained in the pa tent application includes substance(s) the 
use of which is not allowed in the country an d the prevention within Brazil`s territory of 
the commercial exploitation is necessary to  protect human, animal or plant life or 
health")?  
A patent application is considered to be against public health either if: (i) the invention contained 
in the patent application includes substance(s) the use of which is not allowed in the country and the prevention within Brazil's territory of the commercial exploitation is necessary to protect 
human, animal or plant life or health, or if (ii) the invention contained in the patent application 
does not comply with the requirements of novelty, inventive step and industrial application.  Follow-up question 5: With respect to EU question 78, what educational or work 
experience requirements exist for ANVI SA employees responsible for making 
determinations with respect to patentab ility criteria? For example, are there any 
minimum or specific degrees or work expe rience required of these employees under 
Brazilian law or practice? Do the same requir ements apply equally to the employees of 
INPI and ANVISA that review the patentability of the applications?  
As with any organ of the Brazilian Government, candidates to work at ANVISA undertake a public 
exam in order to verify their skills. Public exams also demand that candidates fulfill other WT/TPR/M/283/Add.1 
 
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requirements according to the area of work, such  as knowledge of Brazilian law and practice. In 
addition to it, ANVISA only accept employees with their major degrees in areas related to the pharmaceutical field (e.g. Chemical Engineering,  Biology and Pharmacy); furthermore, most of 
ANVISA's servants also have Master and/or Doctorate degrees on areas such as Chemistry, 
Pharmacy, Biology and Public Health. Lastly, ANVISA provides specific training on intellectual 
property as necessary.  
Follow-up question 6: Are there any ma ximum time limits under Brazilian law or 
regulations within which ANVISA must comple te its review of patent applications and 
render its decision on a patent applicatio n? If so, please specify the time limit. 
 
No, there are not. 
__________