BRASILIEN AKTUELL: IMPEACHMENTVERFAHREN GEGEN DILMA ROUSSEFF FREIGEGE...

BRASILIEN AKTUELL: IMPEACHMENTVERFAHREN GEGEN DILMA ROUSSEFF FREIGEGE...: Das ist die Meldung des Tages und viele Brasilianer werden sich den 2.12.15 rot anstreichen:  CUNHA AKZEPTIERT ANTRAG UND AMTSENTH...

S.O.S. Importação: ENTENDENDO UMA COTAÇÃO DE FRETE INTERNACIONAL...

Este blog tem me surpreendido. Posts excelentes.

A gente que trabalha na área acaba se acostumando com a terminologia e não percebe como ela pode ser complicada.

Parabenizo à autora por este post, que explica  a nomeclatura envolvida na cotação de fretes internacionais;



S.O.S. Importação: ENTENDENDO UMA COTAÇÃO DE FRETE INTERNACIONAL...:



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How to Scale Your Startup into the Booming LatAm Markets | Go South! Consulting Inc.

I'm not part of this event, but it seems promising:



How to Scale Your Startup into the Booming LatAm Markets | Go South! Consulting Inc.:



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Out Now: Reithmann/Martiny on International Contract Law

Out Now: Reithmann/Martiny on International Contract Law:



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7 Ways to Reduce Taxes on Import of Products to Brazil - The Brazil Business

This articles is very interesting.Specially the comments about adding mark up inside of Brazil.

It deserves a few small corrections, though. The arbitraty reduction of CIF value is not permitted. Also, the use of state tax benefits is far more complicated than what is stated at the end.

7 Ways to Reduce Taxes on Import of Products to Brazil - The Brazil Business:



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Never open a branch or representative office in Brazil. Incorporate a new company instead.

The option for incorporating a new company is almost always the best one. 

This happens because the oppening of a branch is burdened by several difficulties. The main ones being: 

i) branches are subject to previous authorization by the Federal Government, which must be obtained in Brasilia;

ii) the foreign entity that owns the branch must print, in an official newspaper in Brazil, all its financial statements and main board decisions. This is not required when a new company is incorporated;

iii) every year, the local branch must publicize, in an official newspaper in Brazil, its financial statements and L&P reports. This is not required for Brazilian Limited Liability Companies, except when they reach considerable size;

iv) branches are subject to direct overview by the public prosecutor's office;

v) registration procedures are lengthier and more complicated;

vi) according to Brazilian law, acts of the branch may generate direct liability to the controlling company, abroad. 

On top of that, there is no tax advantage in operating via a branch instead of using a 

new corporate vehicle.

New regulatory framework of the Brazilian Telecom infrastructure

A guest post by Monica Salles, esq. She is my classmate from college and a very succesful and respected lawyer, practicing on administrative and regulatory law. 

New regulatory framework of the Telecom infrastructure

Special article by Monica Salles, esq.

The new law provided a simplified licensing procedure of supporting infrastructure installation in urban areas.

Tuesday, July 7, 2015

On April 22 it was enacted the Federal Law 13,116 (General Law of antennas) which stablished general rules for the procedures of licensing, installation and sharing telecommunications infrastructure. The new law is the result of a long-standing demand of the mobile phone and internet market, which suffered from the diversity and divergence contained in more than 250 local laws on the matter.

Focusing on reducing bureaucracy, the new law provided a simplified licensing procedure for the installation of supporting infrastructure in urban areas. The license request will be sent to a single administrative unit of each organism and if an environmental licensing is necessary, this should occur in an integrated manner. Procedures must meet the deadline of 60 days within which the responsible administrative unit may request clarifications and additional information just once. States and municipalities have spoken about the failure of this term, considering that until then the processes demanded about 6 months. Nevertheless they will have to adapt themselves to the new rules.

In order to encourage investments in the sector, it was established that the term of the license may not be less than 10 years and it will be renewable for equal periods. Still, it was forbidden to charge, by the federal agencies, the right of passage of the structures in public roads and other public property of common use (even when they are delegated to private entities). The licensee shall pay only the costs of installation, maintenance and removal of the structures.

The optimization of the installed structures was also sought with the new law. Therefore, the sharing of the capacity in excess becomes mandatory, observed reasonable conditions and prices. The non-sharing will be possible only in cases of justified technical reasons. As for the new antennas, these should be designed to allow sharing the capacity in excess by the largest possible number of providers. In order to prevent the market reserve in the use of towers, sharing shall occur, moreover, in a "isonomic, non-discriminatory fair and reasonable prices and conditions."

The new regulation also provides about the preservation of the landscape and the urban aspects of cities. It started to be required, for example, that the structures cause the least possible impact on the landscape and respect the use of squares and parks and the movement of pedestrians, cars and cyclists. The expansion of the stations structures required, moreover, a concern with the health of people who are exposed to the electromagnetic fields generated. Therefore, it determined the establishment and the compliance with limits for human exposure to the fields.

It is interesting to note that six of the Law devices have been object of veto by the President: the item III of art. 4, item II of art. 13, the heading and § 2 of art. 21 and articles 22 and 23.

The item III of art. 4 predicted that the Government should promote the necessary investments and make the installation process or frequent replacement of the network elements and their supporting infrastructure. However, it was understood that this forecast could lead to the understanding that the Government would be responsible for bearing the investments required for the expansion of the facilities or for the replacement of the network elements and infrastructure, which would reverse the funding assumption of private investment on the sector.

Vetoes of caput and §2 of the art. 21, and of the articles 22 and 23 came from the understanding of the Ministry of Finance, that such devices would end up restricting excessively the freedom of the companies which provide the services in the definition of the investment strategies, what could hamper the implementation of technological innovation and the competition.

Finally, we refer to the veto of item II of art. 13, which would stablish the responsibility of the Federal Government body to grant the authorization for the installation of the antenna, if the municipality does not fulfill the deadline of 60 days. On one hand the veto had an important role to maintain the federal pact, considering the division of powers established in the Constitution, on the other hand, there remained a gap in the Law about the consequences of the failure to meet the deadline of 60 days by the municipality. This can be a source of disagreement about the consequences of disregard of deadlines by the federal entities, and even jeopardize the purpose of the standard to reduce the bureaucracy on the procedures.

Translated by Jessica Holl, from Brazilianlawblog

Original in Portuguese available at:

http://www.migalhas.com.br/dePeso/16,MI223013,101048-Novo+marco+regulatorio+das+infraestruturas+de+Telecom

Nuova sessione UNCITRAL sul commercio elettronico | Diritto&Internet

A UNCITRAL está discutindo normas internacionais para troca de registros digitais. O Brasil está bastante atrasado neste aspecto. Ainda nem adotou as convenções modelos sobre comunicação eletrônica (uso de email como meio de prova, etc.)

Pensem no seguinte: que meios de prova o direito brasileiro pediria para comprovar trasnsações puramente eletrônicas, produzidas no exterior? Pensem em Bitcoins, ordens de pagamento de corretoras, etc.








New york: nuova sessione UNCITRAL sul commercio elettronico | Diritto&Internet: "English version (4)
"



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Cross-Border restructurings in Brazil

An interesting article by Felsbert, a Brazilian law firm (not affiliated to me).





 Adoption of insolvency proceedings and staff restructuring measures





The Brazilian economy is in deep water: after years of prosperity on the back of high commodity prices
combined with an ever growing middle class leading to high domestic consumer demand, GDP flatlined
in 2014 (+0.1%). Especially the propensity to invest was on a very low level, with less than 18% of GDP. At
the same time, the scandal involving Petrobras, its suppliers and the political establishment unsettles
not only Brazil and its entrepreneurs and the population but the whole region and international investors
as well. Christian Moritz (Felsberg Advogados, São Paulo) and Dr. Alexander Verhoeven
(WELLENSIEK) comment on the relevance of these recent developments for German companies.





 Some 1.200 German companies are doing business in Brazil
under the conditions of a volatile (emerging) market – do
you see first signs for an intensifying crisis?





Verhoeven: Well, the dominant topic at the moment is
the scandal at Petrobras and its disastrous effects on the
Brazilian economy: a) the currency (Real) has depreciated
significantly against the Dollar (up to an 11-year
low), b) the economy is trapped in a state of stagnation
because many of Petrobras‘ suppliers are involved in the
scandal; one by one getting into financial distress themselves
and c) at the same time politicians (especially the
ruling coalition) are loosing the backing of the population,
businesses and investors alike because of their involvement
in the investigations of the public
prosecutor’s office. It should be outlined, however, that a
decline in the Brazilian overall economic data had already
been in the making before Petrobras.





What exactly are the reasons for these negative developments
– do you see signs for hope?



Verhoeven: The surge in commodity prices lead to a sudden
rise in economic growth for the Brazilian market and
other emerging markets. Unfortunately the steady revenue
stream stemming from this economic boost was not
used to fund much needed new infrastructure projects or
to stimulate diversification of domestic industries. In
consequence the aforesaid negative economic status
quo is also the outlook for the near future; a budget deficit
combined with the introduction of a fiscal austerity
policy will not make it easier for the economy to bounce
back on a growth path. However, a gleam of light comes
from the labor market with a comparatively low unemployment
rate of about 5 %, signaling a steady and
strong consumer demand on domestic markets.



What are the biggest risks of liability when a Brazilian subsidiary
enters a state of distress?



 Moritz: Particularly in an insolvency scenario the liability
of directors and shareholders as well as of other group
members (including their shareholders) becomes a factor
to be aware about. In theory, Brazilian companies in
the legal form of a sociedade limitada or a sociedade em
ações (comparable with the German GmbH or AG respectively)
are granted exclusion of liability of its shareholders
and directors. But in fact Brazilian law offers (...)



Read more at:



http://www.felsberg.com.br/wp-content/uploads/2015/04/Cross-Border-Restructurings-in-BRAZIL_2015-04-15.pdf



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Letter from Sao Paulo

Letter from Sao Paulo:

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EDGAR | Petrobras 6-K/A on Corruption | The New World Lusophone Sousaphone

EDGAR | Petrobras 6-K/A on Corruption | The New World Lusophone Sousaphone:



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Brazil's president names progressive lawyer to Supreme Court | Reuters

It is not exactly the progressive ideology that worries me, but the fact the this judge would be the second one that has been clearly affiliated to PT and that may still be a supporter of the party.







Brazil's president names progressive lawyer to Supreme Court | Reuters:



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Brazilian IT Associations Raise Concerns About New Tax Legislation - Nearshore Americas | The New Axis of Outsourcing

This is about social security. Not to mention the constant shifting of rules regarding importation of sotware, services and IT infrastructure.





Brazilian IT Associations Raise Concerns About New Tax Legislation - Nearshore Americas | The New Axis of Outsourcing:



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Did Apple and its ad designers steal from Brazilian artist Britto? | Ars Technica

Apple and Brazil, a constant struggle for intellectual property (as posted here before, this is not the first time).





Did Apple and its ad designers steal from Brazilian artist Britto? | Ars Technica:



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'Long Arm' of NY Courts Can Reach Brazil, Panel Rules | New York Law Journal

Can it be useful to predict the outcome of the lawsuits against Petrobras?





'Long Arm' of NY Courts Can Reach Brazil, Panel Rules | New York Law Journal:



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Banks close accounts that leave opening for money laundering | Valor International

Banks close accounts that leave opening for money laundering | Valor International:



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How To Import Batteries To Brazil - The Brazil Business

Interesting post from The Brazil Business.





How To Import Batteries To Brazil - The Brazil Business:



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Brazil has a new Civil Procedure Code

After 05 years of discussions, the new civil procedure code has finally passed into law.

It comes into effect in one year from today.

I see that is has brought innovations in class actions and in the use of legal precedent, but I haven't studied it in depth.

I will start workin on it and will share my findings with you.



Source of image: http://gilbertosilvaconsultor.blogspot.com.br/2011/01/cnj-divulga-justica-em-numeros.html

UPDATE - Opening a Brazilian Bank account for non-residents...

Brazilian Law Blog: Opening a Brazilian Bank account for non-residents...: See also: - Financial investments by non-resident in the Brazilian financial and capital markets -  Getting money into your Brazi...

Exporting to Brazil in a nutshell

Dear Adler,

What we have been looking into is the process and requirements needed to import into Brasil. 

 Which type of declaração de importação is needed and which type of company needs to be set up? 

  We believe this is all based on the amount of money that the company generates.  Does the company need have a physical address or can it be a virtual office? 

 Does it matter which State it is set up in?   

Muito Obrigado

Regards

John Proudstar

-----------------------------------------

John, 

In a nutshell: 

i) any company can obtain an import license for small amounts of operation. i.e. 150,000.00 USD per year;

ii) for higher ammounts, the company must upgrade its registration. This depends on the company financial capabilty;

iii) each state has its own requirements about the place of business. Most will require at least a front store shop or a small warehouse in order to allow for importation and distribution;

iv) some states have special benefits for imports, but they are being reviewed or contested by courts or by other states.


I hope this helps your planning. Please get in touch if you need more details. 

Regards, 

Adler

BRASILIEN AKTUELL: Werden in der augenblicklichen Wirtschaftskrise no...

BRASILIEN AKTUELL: Werden in der augenblicklichen Wirtschaftskrise no...: Im gerade zu Ende gegangenen Februar ja, 58 M&A-Transaktionen für 23,07 Mrd. R$ wurden abgeschlossen, allerdings  mengenmäßig etwas weni...

Cost sharing agreements regulated in Brazil - SISCOSERV

From now on, Cost Sharing Agreement among units of a multinational group must be declared to the Brazilian government, through the Siscoserv system.

It is another atempt to tax transference of technology, services and intangibles.

I'm studying the issue to find ways around this draconian regulation. 

Financial investments in the Brazilian capital market

Below, you will find the rule that describes the procedures to be followed by foreign investors who wish to invest in the Brazilian stock market directly. 

The main disposition is the need for prior registration with the Brazilian Securities and Exchange Commision (CVM) and the need for a custody agent (a bank or similar institution):

Art. 2. Prior to the beginning of its operations, the non-resident investor must:

I - constitute one or more representatives in the Country;

II - obtain registration before the Securities and Exchange Commision; and

III - constitute one or more custodians authorized by the Real Estate Values Commission.

§ 1 The representative referred to in item I must be a financial institution or an institution authorized to operate by the Central Bank of Brazil and is not confused, necessarily, with the one required by the tributary law.

This is also the hardest part. Currently, Brazilian banks and stock brokers are too severe when they evaluate the profile of foreign investors. The market is focused on high net worth individuals and large investment companies. I`d say that anyone with less than 10 million USD would have little chance of convincing a bank to provide custody services. 

RESOLUTION No. 4373, OF 29 SEPTEMBER 2014

Provides about financial applications of non-resident investors in the financial and capital markets in Brazil and give other measures.

The Central Bank of Brazil, pursuant to art. 9 of the Law No. 4,595 of December 31 1964, announces that the National Monetary Council, at session realized on September 25 and 29 of 2014, based on the arts. 4, sections V, VIII and XXXI, and 57 of the mentioned Law, on the art. 1^st of the Law No. 4,728, of July 14, 1965, on the art. 3 of the Law No. 6,385, of December 7, 1976, and on the art. 65, § 2, of the Law No. 9,069, of June 29, 1995, and considering the provisions of the Law No. 4,131, of September 3^rd, 1962, on the Decree-Law No. 1,986, of December 28, 1982, on the Decree-Law No. 2,285, of July 23, 1986, on the art. 52 of the Act of the Transitory Constitutional Provisions of the Constitution of the Republic of 1988, art. 32 of the Law No. 8,383, of December 30, 1991, on Law No. 10,303, of October 31, 2001, on the Law No. 11,312, of June 27, 2006, and on the Provisional Measure No. 2,189-49 of August 23,2001,

DECIDED:

Art. 1 The applications in the financial and capital markets in Brazil and the financial transfers to and from outside, in national or foreign currency, of investors non-resident in Brazil, shall comply with the provisions of this Resolution, in addition to the exchange norms and the specific legislation standards.

§ 1 The applications through Depositary Receipts mechanism should observe the Regulation Annex II to this Resolution.

§ 2 The applications to which refers the caput must be executed in the same instruments and operational modalities available for investors resident in Brazil.

§ 3 are excluded from the provisions of this Resolution applications of non-resident investors which are holders of national currency deposit accounts in the country that they perform applications in saving or time deposits in the bank itself that is depositary of the account.

Art. 2 The Regulations annexed to this Resolution are approved , which discipline:

I - the application in financial and capital markets of external resources entered in the Country by non-resident investors, even from the accounts in national currency from resident, domiciled or headquartered abroad; and

II - foreign capital investments in the Country through the Depositary Receipts mechanism.

Art. 3 The investments made under this Resolution are subject to registration before the Central Bank of Brazil, in the form of the Regulations Annexes I and II.

Art. 4 Non-resident investors referred to in the Regulation Annex I to this Resolution are subjected to registration before the Securities and Exchange Commission (CVM).

Art. 5. For the purposes of this Resolution the term:

I - non-resident investors, individual or collective, are natural or legal entities, funds and other collective investment entities resident, domiciled or headquartered abroad;

II – registration before the Central Bank of Brazil is the launch of information in the Central Bank Information System (Sisbacen, for the original name in Portuguese) - Electronic Declaratory Registry (RDE, in Portuguese).

Art. 6 Those responsible for the registration, listed in the Regulations Annexes to this Resolution, shall make available for the Central Bank of Brazil the documentation evidential of all the information declared in the RDE, for a period of 5 (five) years from the date of each update.

Art. 7 For the purposes of the registration mentioned on this Resolution, are subject to the conducting, simultaneous exchange operations or international transfers in Reais, without effective delivery of resources and independently of prior authorization of the Central Bank of Brazil:

I – converting the property of non-residents into investments in the financial and capital markets mentioned on this Resolution;

II - the non-resident investor application transfer through the Depositary Receipts mechanism, in accordance with Annex II of this Resolution, to the modality of foreign direct investment in the Country, dealt on the Resolution No. 3,844 of 23 March 2010;

III - the non-resident investor application transfer through the Depositary Receipts mechanism, in accordance with Annex II of this Resolution, for non-resident investors application in the financial and capital markets in the Country, in accordance with Annex I of this Resolution;

IV - the non-resident investor application transfer on the financial and capital markets, in accordance with the Regulation Annex I to this Resolution, for the modality of foreign direct investment in the country, dealt on the Resolution No. 3,844, of 2010, and vice versa.

Art. 8. Failure to comply with the rules mentioned on this Resolution which govern the registration of foreign capital in the Country implies on the prohibition of making financial transfers under the protection of the registration while the irregularities are not solved, without impairment to the application of the applicable penalties under the terms of the law or other regulations.

Art. 9 The Central Bank of Brazil and the Real Estate Values Commission, within their respective areas of competence, are authorized to issue supplementary rules and to take the necessary measures to give enforcement to this Resolution, including what concerns the imposition of penalties.

Art. 10. This Resolution shall enter into force on March, 30 of 2015.

Art. 11 Are hereby repealed, as from March 30, 2015, the Resolutions. No. 1,289, of March 20, 1987, 1,927, of May 18, 1992, 2,247 and 2,248, both of February, 8, 1996, 2,628, of August 6, 1999, 2,689 of January 26, 2000, 2,742, June 28, 2000, 2,786, of October 18, 2000, 3,245, of November 25, 2004, 3,349, of February, 23, 2006, 3,760 of July 29, 2009, and 3,845, of March 23, 2010.

Alexandre Antonio Tombini

President of the Central Bank of Brazil

 REGULATION ANNEX I TO RESOLUTION No. 4,373, OF SEPTEMBER, 29, 2014 NON-RESIDENT INVESTOR APPLICATION ON FINANCIAL AND CAPITAL MARKETS

Art. 1 The applications on the financial and capital markets of external resources entered in the Country by non-resident investors, even from the accounts in national currency of residents, domiciled or headquartered abroad, must comply with this Regulation.

Art. 2. Prior to the beginning of its operations, the non-resident investor must:

I - constitute one or more representatives in the Country;

II - obtain registration before the Securities and Exchange Commision; and

III - constitute one or more custodians authorized by the Real Estate Values Commission.

§ 1 The representative referred to in item I must be a financial institution or an institution authorized to operate by the Central Bank of Brazil and is not confused, necessarily, with the one required by the tributary law.

§ 2. In situations in which, at the entry into force of this Resolution, the representative referred to in item I does not fit in the provisions of §1, the non-resident investor will have 180 (one hundred and eighty) days to promote the regularization of their representation.

§ 3. The Real Estate Values Commission shall regulate the non-resident investor's registry referred to in the item II.

Art. 3. The act of constituting the representative referred to in the item I of Art. 2 of this Regulation shall expressly provide the following powers and obligations to the exercise of the representation function:

I - make and keep updated the registries mentioned in the arts. 3 and 4 of this Resolution;

II - provide the Central Bank of Brazil and the Real Estate Values Commission with the requested information and maintain for a period of 5 (five) years, the individualized control, by represented, of the inputs and remittances undertaken under this Regulation and the proofs of compliance with contractual obligations and of fund transfers;

III - immediately report to the Central Bank of Brazil and the Real Estate Values Commission, considering their respective powers, the termination of the representation contract as well as the occurrence of any irregularity of which he or she becomes aware; and

IV - receive, on behalf of the non-resident investor, subpoenas and notifications concerning judicial or administrative proceedings based on laws regarding financial and capital markets, related to the operations which are object of the representation contract signed with the non-resident investor.

Single paragraph. In case of noncompliance with the obligations mentioned in this Article, the representative is subject to the impediment to the exercise his or her functions of representation, without impairment to the application of any applicable penalties, and the non-resident investor must appoint a new representative.

Art. 4 The financial assets and real estate values traded, as well as the other types of financial transactions carried out by a non-resident investor, resulting from the applications referred to in this Regulation must, in accordance with their nature:

I - be registered, kept in a book or in custody or maintained in a deposit account in an institution or entity authorized to provide such services by the Central Bank of Brazil or by the Real Estate Values Commission, according to their respective competences; or

II - be duly recorded in systems of chambers and of providers of clearinghouse, settlement or registration services duly authorized by the Bank Central of Brazil or by the Real Estate Values Commission.

Art. 5 It is prohibited the use of the financial resources entered in the Country under the terms of this Regulation on transactions with real estate values for purchase or sale out off an organized market, except in the cases mentioned on the regulation of the Real Estate Values Commission.

Art. 6 The institutions mentioned on the items I and II of the art. 4 of this Regulation must, on request, make available to the Central Bank of Brazil and to the Real Estate Values Commission, individualized by the final principal, the registers related to the applications referred to in this Regulation.

Art. 7 Transfers of investments or commercial papers and real estate values ​​owned by a non-resident investor are prohibited if they are not in accordance with the forms provided on the regulation of the Central Bank of Brazil or of the Real Estate Values Commission.

Art. 8 Foreign investments registered before the Central Bank of Brazil resulting from applications on investment funds must be conformed to the provisions of this Regulation, including Mutual Fund of Investment in Emerging Companies (FMIEE, in Portuguese) and Real Estate Investment Fund (FII, in Portuguese).

Single paragraph. The conformation of the applications of non-resident investors in FMIEE and IFI must occur within 180 (one hundred and eighty) days of the entry into force of this Resolution.

REGULATION ANNEX II TO RESOLUTION No. 4373, OF SEPTEMBER, 29, 2014 NON-RESIDENT INVESTOR APPLICATION THROUGH DEPOSITARY RECEIPTS

Art. 1 Must comply with the provisions of this Regulation, non-resident investments through the Depositary Receipts mechanism.

Art. 2 For the purposes of this Regulation, are applied the following definitions:

I - Depositary Receipts: certificates issued abroad by a depositary institution, representative of the assets listed below, deposited in specific custody in the Country:

a) real estate values issued by Brazilian public companies;

b) real estate values eligible to compose the Reference Equity (PR in Portuguese) issued by financial institutions and other public institutions authorized to operate by the Central Bank of Brazil;

II – custodian institution: the institution, in the Country, authorized by the Real Estate Values Commission to provide custody services;

III – depositary institution, depositary bank or issuing bank: the institution that, abroad, and based on the assets listed in the sub items "a" and "b" of the item I, issues the corresponding Depositary Receipts;

IV - sponsoring company: the institution, in the Country, which issues the assets listed in the sub items "a" and "b" of item I object of the Depositary Receipts program and signatory of a specific contract with a depositary institution.

Art. 3 The financial resources which entered the Country for the acquisition of the assets listed in the sub items "a" and "b" of the item I of the Art. 2 of this Regulation in order to integrate Depositary Receipts programs, sponsored or unsponsored, are subject to the application of this Regulation.

Art. 4 Are qualified for the purpose of registration in the Depositary Receipts programs the resources entered the Country for the purchase, in the primary market and in secondary one, of the assets listed in the sub items "a" and "b" of the item I of the Art. 2 of this Regulation, provided that they are negotiated in organized markets.

Art. 5 It competes to the Real Estate Values Commission to approve the Depositary Receipts programs.

Single paragraph. The Real Estate Values Commission shall regulate the process of approval of the Depositary Receipts programs referred to in the caput.

Art. 6 The financial institutions headquartered in the Country may apply for permission before the Central Bank of Brazil in order to participate in Depositary Receipts programs, prior to the approval of the Real Estate Values Commission.

Single paragraph. The launch of Depositary Receipts backed by shares with voting rights or by debt instruments eligible to compose the PR, convertible into shares with voting rights, of financial institutions based in the Country is limited to the percentage of foreign participation allowed under the applicable law.

Art. 7. The registry referred to in art. 3 of this Resolution must be made by the custodian institution on behalf of the depository institution.

Single paragraph. The registry of the external resources entered in the Country based on art. 3 of this Regulation must be made in the form to be set by the Central Bank of Brazil, being linked to the issuing company, to the quantity and to the real estate value or debt instrument eligible to compose the PR object of the Depositary Receipts program.

Art. 8. The custodian institution can accept deposit on the custody of the Program of the assets listed in the sub items "a" and "b" of the item I of the Art. 2 of this Regulation, which are in circulation and are owned by investors resident, domiciled or headquartered in the Country, for the purpose of backing the issue of Depositary Receipts abroad.

Art. 9 The issuing companies as well as individuals or legal entities, resident, domiciled or headquartered in the Country, which deposit real estate values in custody to back the issuance of Depositary Receipts may keep the product of their disposal abroad.

§ 1. If there is no entry in the Country of the value obtained with the disposal mentioned in the caput, the custodian institution must update the investment registry before the Central Bank of Brazil.

§ 2 The power conferred in the caput does not apply to Depositary Receipts programs sponsored by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Art. 10. It is the custodian institution responsibility, before the Bank Brazil Central, the processing and control of the disposals mentioned in the art. 9 of this Regulation.

See also:
Opening a Brazilian Bank account for non-residents