29 Oct 2018
Brazil Establishes New Preferences for Oil/Gas Equipment
Brazil has unveiled a new special industrialisation regime for goods intended for the exploration, development and production of oil, gas and other liquid hydrocarbons. Under this regime, companies will be able to import or acquire domestically free of import duties, the tax on industrialised products (IPI) and social contributions (PIS/Pasep and Cofins) raw materials, intermediate products and packaging materials intended for any the aforementioned activities. Raw materials and intermediate products that are no longer used as authorised under the special regime must be exported, transferred to another special regime, destroyed under customs supervision, or destined to the domestic market prior payment of all applicable duties and taxes.
Companies wishing to take advantage of this special regime must obtain an authorisation from and comply with any provisions set forth by the Brazilian Federal Revenue Service (Receita Federal). Participation in this programme may initially be granted for one year and, under normal circumstances, may be renewed for a maximum of five years in increments of up to one year.