Manual of Rules and Procedures on Privileges and Immunities

A Practical Guide for the Diplomatic Corps Accredited in Brazil

Ministry of External Relations

2010

Luiz Inácio Lula da SilvaPresident of the Republic

Celso Luiz Nunes AmorimMinister of External Relations

Antônio de Aguiar PatriotaSecretary-General

George Monteiro PrataChief of Protocol

José Wilson MoreiraPrivileges and Immunities General Coordinator

Daniella Xavier CesarPrivileges and Immunities Associate General Coordinator

Fernando Figueira de MelloFirst Secretary

Marcelo Grimberg Vaz de CamposThird Secretary

Paulo Henrique Sampaio Vianna FilhoThird Secretary

Ricardo Kato de Campos MendesThird Secretary

Marcio André Silveira GuimarãesThird Secretary

Revisers

Chancery Officer André Ricardo Caldas (Chief Reviser)Chancery Officer Raphael Pechir Fernandes FerreiraChancery Assistant Officer Ana Amélia Moreno Diniz

Staff of the Privileges and Immunities General Coordinating Office (CGPI)

Chancery Officers Maria Leonor Ramos BatesCristiane Magalhães da Costa ReisDavi de Oliveira Paiva BonavidesAndré Ricardo CaldasJoão Henrique Sardeiro de AlcântaraRaphael Pechir Fernandes Ferreira

Chancery Assistant Officers

Artur Augusto Alves de Araujo AzevedoEler Geraldo de OliveiraMiriam de Jesus Madeira Basto de CuadraAlmiro da Costa FariasAna Amélia Moreno DinizNestor Farias de Andrade Neto

Doorman Luiz Pereira dos Santos

Receptionist Ana Maria de Jesus Roldão

Office Boys Juliana de Arruda BarbosaWallacy Nascimento de Sousa

Trainees Matheus de Oliveira AndradeGabriel Antonietto de AbreuMarta Maria GomesBruno de Oliveira AndradeRafael dos Santos JoaquimClarissa Passos LacerdaWendel Henrique Vieira LimaJúlio Cesar Guimarães de SouzaSara Albuquerque de MirandaMariana Luiza Garcia do ValeBárbara Edenir Pinto Araújo

SUMMARY

INTRODUCTION......................................................................................11

CGPI’S FUNCTIONS..................................................................................12

1. GENERAL OBSERVATIONS ON DOCUMENTS TO BE SUBMITTED TO THE CGPI........................................................................................................14

2. CGPI SERVICES DESK............................................................................16

2.1. Documents Desk..............................................................................16

2.2. Detran-DF’s Diplomatic Corps Services Section................................16

3. FUNCTIONING OF DIPLOMATIC MISSIONS, CONSULAR POSTS, AND INTERNATIONAL ORGANIZATIONS, AND INSTALLATION OF THEIR FOREIGN FUNCTIONARIES : general measures........................................17

4. ACCREDITATION.................................................................................20

4.1. Establishing a Diplomatic Mission in Brazil.......................................204.1.1. Opening Diplomatic Mission Offices in the states.............................20

4.2. Accreditation of foreign functionaries.............................................204.2.1. Identity Cards...................................................................................21

4.2.1.1. Issuance..........................................................................................21

4.2.1.2. Renewal.........................................................................................24

4.2.1.3. Loss, theft, misplacement, or damage...........................................25

4.2.1.4. Termination of functions................................................................26

4.2.2. National Driver’s License (CNH)........................................................26

4.2.3. Courtesy enrollment (MATRICOR) ....................................................26

4.2.4. Health care at the Armed Forces Hospital (HFA)...............................27

4.2.5. Work by Dependents (TRADEP)........................................................28

4.3. Signature notarization, autograph card, and Signature Authorization Record Card (CARE)................................................................................29

5. GOODS................................................................................................31

5.1. “Simplified Importation Declaration” Form (DSI) ............................325.1.1. Unaccompanied baggage..................................................................33

5.1.2. Importation......................................................................................34

A) Technical, scientific, and cultural cooperation.......................................34

B) Goods Purchased For Official Or Private Use From Businesses Abroad 35

B.1) CONSOLIDATED INVOICE........................................................................35

C) Goods Purchased Abroad For Official Or Private Use Through The Brazilian Post And Telegraph Company (ECT) ...........................................36

D) Merchandise For Official Use Sent By A Foreign Government Or By The Headquarters Of An International Organization........................................36

E) Merchandise For Charity Fairs, Bazars, And Gastronomic Events.........37

5.2. Dufry duty free shop........................................................................37

5.3. “Simplified Exportation Declaration (DSE)” Form ............................38

6. PROCEDURES FOR IMPORTING PETS...................................................39

6.1. Household pets................................................................................396.1.1. Household pets from Mercosur member countries..........................39

6.1.2. Household pets from Mercosur nonmember countries....................40

6.2. Wilderness Pets...............................................................................41

7. SECURITY............................................................................................43

8. WEAPONS...........................................................................................44

8.1. Acquisition and Registration............................................................448.1.1. Importation......................................................................................45

A) First Steps................................................................................................46

B) Followup..................................................................................................46

C) Witholding And Inspection......................................................................47

8.1.2. Acquisition on the Brazilian market..................................................47

8.2. License to bear an arm.....................................................................488.2.1. Bearing institutional firearms for the security of temporary visits....48

8.3. Procedures for taking arms on departing from Brazil.......................49

8.4. Complementary Dispositions...........................................................49

9. VEHICLES.............................................................................................51

9.1. Acquisition.......................................................................................51

A) Official Use – General Rules...................................................................51

B) Private Use – General Rules....................................................................51

9.1.1. Acquisition of imported vehicles.......................................................52

9.1.2. Acquisition of Brazilian-made vehicles..............................................54

9.2. Licensing..........................................................................................569.2.1. Licensing of vehicles entitled to special blue plates with the letter combinations CMD, CD, CC, OI, ADM, AND CI.............................................57

9.3. Sale and transfer of vehicles............................................................589.3.1. Simple transfer of Brazilian-made vehicles.......................................59

9.3.2. Transfer of imported vehicles...........................................................60

9.3.3. Transfer of Brazilian-made vehicles to other than privilege holders. 61

9.4. Replacement in case of accident......................................................62

9.5. Cancellation or misplacement of documents...................................62

9.6. Vehicle accident resulting in total loss.............................................62

9.7. Vehicle exportation.........................................................................63

9.8 Traffic violations...............................................................................64

9.9. Legal references...............................................................................64

10. TAX EXEMPTION...............................................................................65

10.1. Urban Real Property Tax, Trash Collection Fee, and Public Lighting Contribution...........................................................................................65

10.2. State Sales Tax (ICMS)....................................................................66

A) Electricity And Telecommunications Services........................................66

B) Fuel..........................................................................................................67

C) Building Materials..................................................................................68

10.3. Inter Vivos Transfer (ITBI)..............................................................69

10.4. Motor Vehicle Tax (IPVA)...............................................................69

10.5. Tax on Financial Transactions (IOF)................................................69

10.6. Airport tariffs.................................................................................69

11. BRASILIA INTERNATIONAL AIRPORT.................................................71

11.1. Parking...........................................................................................71

11.2. Access to restricted areas...............................................................71

12. COMMUNICATIONS..........................................................................72

12.1. Installation of radio communication transmitters..........................72

12.2. Diplomatic Pouch...........................................................................72

13. REAL PROPERTY................................................................................73

13.1. Real estate acquisition and leasing................................................73

13.2. Donation and cession of land for the seat of a Diplomatic Mission73

13.3. Procedures for construction work at the seat of Diplomatic Missions, Special Delegations, and Representations of International Organizations in Brasilia.........................................................................74

14. LABOR RELATIONS – LOCAL CONTRACTS...........................................77

14.1. Jurisdictional immunity..................................................................77

14.2. Labor lawsuits................................................................................77

14.3 Consolidated Labor Legislation.......................................................78

A) Entries In The Worker’s Book And Registration With Social Security....78

B) Observance Of The Work Load...............................................................78

C) Overtime Pay...........................................................................................78

D) Rest Breaks..............................................................................................78

E) equal pay.................................................................................................78

F) Christmas Bonus Or Thirteenth Monthly Salary.....................................79

G) Vacation..................................................................................................79

H) Stability...................................................................................................80

I) Severance Pay Indemnity Fund (FGTS)....................................................80

J) Prior Notice...............................................................................................81

K) Transport Voucher...................................................................................81

L) Union Checkoff.........................................................................................81

M) Dignity....................................................................................................82

14.4. Social Security................................................................................82

15. FOREIGN EXCHANGE FOR TRAVELING...............................................85

15.1 Maximum amount of foreign exchange allowed for traveling abroad...............................................................................................................85

ACRONYMS AND ABBREVIATIONS USED ...............................................86

FOREWORD

The Chief of Protocol of the Ministry of External Relations compliments the Heads of Diplomatic Missions, Special Delegations, and Representations of International Organizations and has the honor of presenting to the Diplomatic Corps accredited in Brazil this Manual on Rules and Procedures on Privileges and Immunities.

This initiative has gathered the current rules and procedures into a single document and is directed at the large number of Diplomatic Missions, career Consular Posts, and Representations of International Organizations in Brazil. Its priority is to ensure greater efficiency and transparence in the relations with the foreign diplomatic personnel.

Based on the Vienna Convention on Diplomatic Relations, on the Vienna Convention on Consular Relations, on the Convention on Privileges and Immunities of the Specialized Agencies of the United Nations as well as on the classical Reciprocity Principle, this Manual presents in systematic form the procedures to be followed in regard to privileges and immunities, as they embody the laws and regulations in force in the country.

The Manual’s objective is to facilitate the understanding of routines and the daily administration of career foreign representations accredited in Brazil.

Brasilia, March 3, 2010.

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Introductory Note

All forms mentioned in this Manual may be found at the site of the Privileges and Immunities General Coordinating Office: www.cgpi.mre.gov.br

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INTRODUCTION

This Manual on Rules and Procedures has been prepared to provide Diplomatic Missions, career Consular Posts, and Representations of International Organizations with an easy-to-handle guide on relevant rules, practices, and procedures for their work in Brazil.

The Vienna Convention on Diplomatic Relations was signed by Brazil on April 18, 1961, ratified on April 25, 1965, and became law under Decree No. 56435 of June 8, 1965. The Vienna Convention on Consular Relations was signed by Brazil on April 24, 1963, ratified on May 11, 1967, and promulgated as law under Decree No. 61058 of July 26, 1967. The 1964 United Nations Convention on Privileges and Immunities became law in Brazil under Decree No. 27784 on February 16, 1950. And the 1947 Convention on Privileges and Immunities of the Specialized Agencies of the United Nations was made into law in Brazil under Decree No. 52288 of July 24, 1966.

The aforementioned Vienna and United Nations conventions, the agreements celebrated by Brazil with international organizations, and the Principle of Reciprocity provide the foundation for the rules and regulations followed by the Ministry of External Relations in regard to privileges and immunities. In its preamble, the Vienna Convention on Diplomatic Relations states that “the purpose of such privileges and immunities is not to benefit individuals but to ensure the efficient performance of the functions of diplomatic missions as representing States.”

The codification of diplomatic prerogatives by the Vienna Convention on Diplomatic Relations endowed them with uniformity but expunged from immunity its broad, absolute meaning by establishing both the cases when it cannot be invoked (Article 31) and the duties incumbent on its holders (Art. 41).

The preservation of the regime of diplomatic privileges and immunities is related to each country’s capacity to prevent abuses liable to compromise those prerogatives and to give rise to actions susceptible of leading to their progressive curtailment.

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CGPI’S FUNCTIONS

It is incumbent upon the Privileges and Immunities General Coordinating Office (CGPI):

I - To determine, promote, ensure, and oversee – all in accordance with Brazilian legislation and international law as well as with the principle of reciprocity – the benefits stemming from the privileges accorded Diplomatic Missions, Special Delegations, Consular Posts, International Organizations with main offices in Brazil, and Representations of International Organizations and their functionaries, as well as the benefits applicable under cooperation programs;

II - To handle issues related to immunity from territorial jurisdiction of foreign States, International Organizations and their representatives and functionaries accredited to the Brazilian Government;

III - To maintain a record of the names of the members of Diplomatic Missions, functionaries of International Organizations, experts under cooperation programs, and their dependents, as well as issuing their respective identity cards;

IV - To notarize signatures of the functionaries on record;

V - To keep up-to-date the record of reciprocity regarding the granting of privileges;

VI - To negotiate agreements on remunerated work by dependents of diplomatic, consular, administrative, and technical functionaries and process requests of permission for such kind of work;

VII - To handle the formalities regarding the duty-free importation and exportation of baggage, vehicles, and consumption goods destined for Diplomatic Missions, Special Delegations, career Consular Posts, International Organizations with main offices in Brazil, and Representations of International Organizations, and their functionaries, as well as goods destined for cooperation programs;

VIII - To handle the formalities regarding the tax-free acquisition and sale of Brazilian-made vehicles by Diplomatic Missions, Special Delegations, career Consular Posts, Representations of International Organizations with main offices in Brazil, and their foreign functionaries, as well as handling the formalities regarding the sale of vehicles imported duty free;

IX - To issue the registration certificates of vehicles of Diplomatic Missions, Special Delegations, Consular Posts, International Organizations with main offices in Brazil, Representations of International Organizations, and their functionaries holding privileges and immunities;

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X - To authorize and monitor the issuing and retrieval of license plates of the aforementioned vehicles; and

XI - To handle requests of:

a) Courtesy enrollment at Brazilian universities for foreign functionaries and their dependents;

b) Medical and hospital care at the Armed Forces Hospital for foreign diplomatic functionaries and their dependents;

c) Acquisition of and license to bear arms for holders of privileges and immunities;

d) Security for Diplomatic Missions, Special Delegations, Consular Posts, International Organizations with main offices in Brazil, Representations of International Organizations, and their functionaries;

e) Tax exemption or reimbursement; and

f) Registration with the Natural Persons Registry (CPF) and with the National Legal Persons Registry (CNPJ).

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1. GENERAL OBSERVATIONS ON DOCUMENTS TO BE SUBMITTED TO THE CGPI

I - Forms should be filled out in Portuguese as most of them will be addressed to Brazilian Public Administration bodies;

II - Documents submitted to the CGPI should not contain any erasures;

III - All copies should be properly signed by the Missions’ authorized individuals. Photocopies of signatures or stamps will not be accepted;

IV - The functionary’s name must be written in the following order: Name, followed by Last Name;

V - Below the functionaries’ and the Head of Mission’s signatures their respective full name should be entered;

VI - The Head of a Diplomatic Mission, Consular Post, or Representation of an International Organization may sign on behalf of all functionaries. The Head of Mission’s signature may be substituted by that of another foreign functionary duly registered with the CGPI or with the Consular Services Division (DAC) and authorized to sign on his/her behalf according to the Authorized Signatures Registration Card (CARE). In the case of a request for official use by Trade Offices, a Trade Office’s Chief should sign as the interested party. A Consul (if posted to a Consulate) or an Ambassador (if posted to an Embassy) or an authorized functionary, as the case may be, should sign as Head of the Diplomatic Mission or of the Consular Post. Requests for private use should be signed by the interested party himself/herself, while an Ambassador, Consul, or authorized functionary should sign as Head of the Mission or of the Office. Signatures that do not match those on record will not be accepted;

VII - The Mission’s stamp must be applied on the proper spot and initialed by the Head of Mission or the functionary authorized to sign on his/her behalf;

VIII - The forms for private requests (for nonofficial use) must include the interested functionary’s registration number as proof that he/she has been duly registered with the CGPI or the DAC as a privilege and immunity holder. In case of an “Importation Simplified Declaration” (DSI) pertaining to the baggage of a recently arrived functionary,1 a copy of the Verbal Note informing the MRE of the functionary’s arrival should be attached;

IX - The number of copies of each type of form must be carefully noted, as an incorrect number of copies may entail processing delays;

1 A functionary must obtain a diplomatic identification number from the CGPI within a maximum of two months after his/her arrival in Brazil.

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X - Copies of attachments, which must match the originals, should be attached to the set of documents submitted;

XI - Documents with illegible attachments (that do not permit the reading of relevant data such as the number of invoices or of the vehicle’s chassis, authorization dates, etc) will not be processed;

XII - Should the documentation submitted to the CGPI be incomplete, the Mission or Representations will be advised accordingly by e-mail, fax, or telephone or at the CGPI’s Documents Desk. Only after it is complete will the documentation be processed;

XIII - Incorrectly filled-out forms will be returned by the Documents Desk to be redone;

XIV - Only properly accredited Embassy or Representation functionaries may deliver or pick up documents; and

XV - Doubts about procedures may be solved by consulting the site www.cgpi.mre.gov.br. In addition, the CGPI may be contacted by telephone (3411-6060 or 3411-8040) as well as by the following sector telephones and e-mails:

Accreditation: 3411-8045/9642/6838

Goods: 3411-8042/9216

Tax Exemption: 3411-9508/6839/6837

Vehicles: 3411-8039/8041/6974/8049

Real Property: 3411-9506/8048

Weapons: 3411-8048

Courtesy Enrollment and signature notarizing: 3411-8040

cgpi@itamaraty.gov.br

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2. CGPI SERVICES DESK

2.1. Documents Desk

The CGPI maintains a services desk to assist members of the Diplomatic Corps and of Representations of International Organizations, for the sole purpose of receiving and returning documents. The CGPI does not receive documents addressed to the Consular Assistance Division2 (requests for identity cards for consular functionaries, for instance) or to the Immigration Division3

(such as resident alien ID and visa applications).

Hours: Tuesdays and Thursdays, from 10:30 am to 12:30 p.m.Location: Lower Floor of Anexo I (Security and Protection Section)

At this Services Desk all documents addressed to the CGPI are received and returned to the Diplomatic Missions, career Consular Posts (through their respective Embassies), and Representations of International Organizations.

2.2. Detran-DF’s Diplomatic Corps Services Section

Hours: Monday through Friday, from 8 a.m. to 12 noonLocation: Depósito do Detran-DF (next to Autódromo Nelson Piquet)

Documents required for obtaining and for returning license plates are received by the CGPI at its Documents Desk. But vehicles in the Federal District are registered and assigned license plates at the Diplomatic Corps Services Section of the Federal District Transit Department (Detran-DF). Before securing or returning a license plate, the interested parties should check with the Documents Desk to make sure that no mistake has been made in filling out the pertinent form or that all the required documents have been submitted.

For the registration of vehicles and the assignment of license plates in other states, the pertinent documents and plates will be delivered by the Documents Desk to functionaries of Embassies or International Organizations in Brasilia. The documents and plates should be taken directly to the respective state’s Detran for registration and for obtaining a license plate.

2 Please check www.portalconsular.mre.gov.br. 3 Information provided on dim@itamaraty.gov.br.

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3. FUNCTIONING OF DIPLOMATIC MISSIONS, CONSULAR POSTS, AND INTERNATIONAL ORGANIZATIONS, AND INSTALLATION OF THEIR FOREIGN FUNCTIONARIES : general measures

I - Accreditation: the first step to be taken for the accreditation of diplomats and other foreign functionaries should be to communicate by Verbal Note their names and the names of their dependents. A request should be submitted for the issuing of Natural Person Identification Cards (CPF) and IDs from the Ministry of External Relations so that they may open bank accounts in their own names and enjoy the privileges and immunities to which they are entitled;

II - Importation of personal baggage: the entry of personal possessions of a functionary posted to an Embassy in Brasilia (moving) and of the initial imports to which he/she will be entitled as a privilege holder must be processed through the CGPI and for this a DIS form must be filled out (DIS = Simplified Importation Declaration);

III - Importation of goods: subject to reciprocity, a foreign functionary is entitled to importing duty free the personal possessions he/she may need for settling in Brazil and for the proper discharge of his/her functions. The maximum amount of currency and the quantity of goods imported are subject to Protocol review. A holder of privileges and immunities may also make occasional or programmed purchases at a Duty Free shop-Dufry,4 subject to tax quotas and to reciprocity treatment;

IV - Acquisition of a tax exempt vehicle: diplomatic, consular, and administrative functionaries are entitled to importing a vehicle duty free; after three years, the vehicle may be sold also tax exempt. Should it be sold before the expiration of this period in case of the functionary’s transfer, the vehicle will be subject to a progressive tax reduction by the Internal Revenue Service (100 percent in the first year; 70 percent in the second year; and 30 percent in the third year).

If the right to import is waived, a functionary may purchase a Brazilian-made vehicle, which may be sold tax exempt after one year. In the case of administrative functionaries (and similar categories), the vehicle must be imported in the first six months after their arrival in Brazil.

Diplomatic functionaries posted in Brazil may purchase a second vehicle tax free, provided it is Brazilian-made. This vehicle cannot be replaced and may be sold only at the completion of their mission, but no earlier than after a year. A diplomat may thus choose to purchase two Brazilian-made cars tax free, one of

4 On the date this Manual was published, the Brasilia Dufry shop was in the process of being opened.

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which cannot be replaced and may be sold only after one year; or an imported car and a Brazilian-made car, which cannot be replaced.

Diplomatic Missions and Consulates my import cars and purchase Brazilian-made vehicles tax free in a number to be defined by Protocol. The reasonable average is one vehicle for each five functionaries;

V - Application for a diplomatic license plate: after acquiring an imported or a Brazilian-made vehicle, a functionary must submit to the CGPI an application for a diplomatic license plate;

VI - Application for exemption from the Automotive Vehicle Tax (IPVA) for official and private vehicles, on the basis of reciprocity;

VII - Application for reimbursement of state sales tax (ICMS) on telecommunications services and electric power. Subject to reciprocity, the Diplomatic Missions, Consular Posts, and their diplomatic and administrative functionaries are entitled to exemption from the ICMS levied on electricity and telecommunications bills (stationary and mobile telephones). Application for exemption from this tax should be submitted to the CGPI through a Verbal Note;

VIII - Application for reimbursement of ICMS levied on fuel purchased in the Federal District. Subject to reciprocity, Diplomatic Missions and career diplomatic and administrative functionaries are entitled to reimbursement of the ICMS levied on fuel purchased in the Federal District; a monthly ceiling is set at 400 liters per official vehicle and at 250 liters per private vehicle;

IX - Land donation for building Embassy premises (Chancery and Official Residence), subject to reciprocity;

X - Application for exemption from the ICMS and the Tax on Industrialized Products (IPI) levied on purchases of building materials, subject to reciprocity. The materials should be destined for the construction, expansion, or makeover of property for official use of a Diplomatic Mission, and the invoices should be issued in the name of the Embassy, Consular Post, or International Organization;

XI - Application for exemption, based on the Vienna Convention on Diplomatic Relations, from the Urban Property and Land Tax (IPTU), and from the Inter Vivos Transfer Tax (ITBI) pertaining to property owned by the accrediting State, for the installation of the Embassy and the Official Residence, subject to reciprocity;

XII - Request for medical-hospital care at the Armed Forces Hospital (HFA) for diplomatic and consular functionaries, civilian and military attachés and their aides, as well as for their dependents. Consultation and lab tests charges are subject to a fee schedule set by the Brazilian Medical Association;

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XIII - Request for courtesy enrollment, subject to reciprocity, in federal universities, especially in the University of Brasilia, for diplomatic functionaries and their legal dependents, pursuant to Decree no. 89758/84, which can be checked on the site www.cgpi.mre.gov.br;

XIV - Application for exemption from airport tariffs for holders of diplomatic passport accredited to the Brazilian Government or in transit in Brazil, subject to reciprocity;

XV - Request for security services to be provided by the Federal District Military Police’s Fifth Battalion (Barão do Rio Branco Battalion), which provides tactic mobile surveillance for all foreign missions in Brasilia; and

XVI - Authorization for engaging in professional work, provided it is supported by a Bilateral Agreement on Remunerated Work by Dependents of Diplomatic Personnel celebrated with the country of the interested functionary.

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4. ACCREDITATION

4.1. Establishing a Diplomatic Mission in Brazil

Itamaraty considers that a foreign Embassy begins its regular work in Brazil upon receipt of a Verbal Note officially notifying Itamaraty of the arrival on Brazilian territory of the first career diplomat of that Mission. This functionary should proceed to Protocol/CGPI to introduce himself/herself in person to the Chief of Protocol or to the Privileges and Immunities General Coordinator to be formally accredited.

On the occasion, the CGPI will see to the functionary’s registration with the Internal Revenue Service (CPF) and will issue a statement requesting the Internal Revenue Service to enter that Mission into the National Register of Legal Persons (CNPJ), so that both the functionary and the Mission may be eligible for opening bank accounts and engaging in financial transactions in Brazil. The application for opening a Consular Mission should be directed at the Consular Services Division.

4.1.1. Opening Diplomatic Mission Offices in the states

Application for the opening of offices in the states should be in the form of a Verbal Note. The requirements for opening offices (such as trade and tourism offices) in the states, should the sending Government wish to link these offices to the Embassy, according to Art. 12 of the Vienna Convention, are the following:

I - The office will be subordinated to the Embassy in Brasilia if there is no career Consular Post in the locality;

II - The office’s functionaries are not to discharge consular functions nor engage in trade acts; their sole role is to foster bilateral trade;

III - The office’s functionaries will be accorded consular privileges and immunities;

IV - The Office’s Chief and other functionaries enjoying diplomatic status will be granted a diplomatic visa;

V - The Office’s administrative functionaries will be granted official visas.

4.2. Accreditation of foreign functionaries

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As stated in Circular Verbal Note no. 22/06 of August 28, 2006, the CGPI takes care of the registration of foreign functionaries and issues them the following identification cards:

a) Brown card: diplomatic agents, civilian and military attachés and their aides posted in Brasilia;

b) Green card: military attaché assistants and foreign service functionaries posted in Brasilia, who discharge technical and administrative functions; and

c) Red card: non-Brazilian representatives of International Organizations and their aides, international functionaries and experts from International or governmental organizations who do not have Brazilian permanent visas. Experts must be covered by an agreement ensuring their enjoyment of privileges and immunities and do not need to be posted in Brasilia.

Legal dependents of the above-mentioned categories must also be registered with the CGPI, as long as they are not Brazilians, do not have Brazilian permanent visas, and are holders of the pertinent travel document and corresponding diplomatic or service visa, if required. Children are considered dependents up to age 21. Children over 21 will be registered only if enrolled in a Brazilian higher education institution and are not older than 24. For the registration of newly born children, birth certificates are required. For children over 24, the Diplomatic Mission should apply for a courtesy visa to the Immigration Division (DIM) through a Verbal Note.

Career consular functionaries, administrative functionaries, and chiefs of trade offices living in cities where their country has a Consulate, and their dependents, as well as honorary Consular Posts should be accredited by the Consular Services Division (DAC).

Members of the service staff (drivers, cooks, security officers, and so on) should apply for accreditation with the Immigration Division (DIM). Only functionaries holding a diplomatic or official visa are entitled to a CPF, which should be requested through a Verbal Note. In other cases, a CPF should be applied for directly to Banco do Brasil, Caixa Econômica Federal, or Post Office branches.

4.2.1. Identity Cards

4.2.1.1. Issuance

Application for identity cards should be addressed to the CGPI through a Verbal Note indicating the functionary to be replaced and the date of his/her departure or whether the accreditation requested is related to an addition to the

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number of Mission functionaries. The Note and its enclosures should be delivered to the CGPI through the Entry Desk (Anexo II of the MRE). To expedite processing, it is recommended that both the original Note and a copy authenticated by the Entry Desk be presented to the CGPI Documents Desk, together with the documents listed below:

MEMBERS DOCUMENTS NOTESHeads of Diplomatic Missions

1. “Foreign Functionaries” Form properly filled out with the data on the applicant and his/her dependents, if any, signed and initialed in fields 49 and 50.2. Copy of the following passport pages:- cover or page indicating the type of passport- page(s) containing personal information- expiration date- Federal Police stamp indicating entry in Brazil- diplomatic visa, if required3. Three recent 3 cm x 4 cm photographs4. Autograph card (Care)

If a dependent’s personal data have not been sent on the occasion of the office holder’s accreditation, a new form should be filled out with the information on each dependent and sent in with the requisite documents.

Diplomats 1. “Foreign Functionaries” Form properly filled out with the data on the applicant and his/her dependents, if any, signed and initialed in field 50 by the applicant and by the Head of Mission in field 49.2. Copy of the following passport pages:- cover or page indicating the type of passport- page(s) containing personal information- expiration date- Federal Police stamp indicating entry in Brazil - diplomatic visa, if required3. Three recent 3cm x 4 cm photographs

If a dependent’s personal data have not been sent on the occasion of the office holder’s accreditation, a new form should be filled out with the information on each dependent and sent in with the requisite documents.

Civilian and military attachés and their aides

1. “Foreign Functionaries” Form properly filled out with the data on the applicant and his/her dependents, if any, signed and initialed in field 50 by the applicant and by the Head of Mission in field 49.2. Copy of the following passport pages:- cover or page indicating the type of passport- page(s) containing personal information- expiration date- Federal Police stamp indicating entry in Brazil - diplomatic visa, if required3. Three recent 3 cm x 4 cm photographs

Passport needs not to be diplomatic. If a dependent’s personal data have not been sent on the occasion of the office holder’s accreditation, a new form should be filled out with the information on each dependent and sent in with the requisite documents.

Representatives of International Organizations

1. “Foreign Functionaries” Form properly filled out with the data on the applicant and his/her dependents, if any, signed and initialed in field 50 by the applicant and by the Head of Mission in field 49.2. Copy of the following passport pages:- cover or page indicating the type of passport

The travel document may be a common passport. If a dependent’s personal data have not been sent on the occasion of the office holder’s accreditation, a new form should be filled out with the

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- page(s) containing personal information- expiration date- Federal Police stamp indicating entry in Brazil- official visa3. Three recent 3cm x 4 cm photographs4. Autograph Card (Care) (see Item 4.3)

information on each dependent and sent in with the requisite documents.

International Representatives, aides, and functionaries

1. “Foreign Functionaries” Form properly filled out with the data on the applicant and his/her dependents, if any, signed and initialed in field 50 by the applicant and by the Head of Mission in field 49.2. Copy of the following passport pages:- cover or page indicating the type of passport- page(s) containing personal information- expiration date- Federal Police stamp indicating entry in Brazil- official visa3. Three recent 3cm x 4 cm photographs

The travel document may be a common passport. If a dependent’s personal data have not been sent on the occasion of the office holder’s accreditation, a new form should be filled out with the information on each dependent and sent in with the requisite documents.

Technical –administrative functionaries of Diplomatic Missions and assistants to military attachés

1. “Foreign Functionaries” Form properly filled out with the data on the applicant and his/her dependents, if any, signed and initialed in field 50 by the applicant and by the Head of Mission in field 49.2. Copy of the following passport pages:- cover or page indicating the type of passport- page(s) containing personal information- expiration date- Federal Police stamp indicating entry in Brazil- official visa, if required3. Three recent 3cm x 4 cm photographs

The travel document may be a common passport. If a dependent’s personal data have not been sent on the occasion of the office holder’s accreditation, a new form should be filled out with the information on each dependent and sent in with the requisite documents.

Experts (foreign technicians and specialists of Embassies or International Organizations)

1. “Foreign Functionaries” Form properly filled out with the data on the applicant and his/her dependents, if any, signed and initialed in field 50 by the applicant and by the Head of Mission/International Organization in field 49.2. Copy of the following passport pages:- cover or page indicating the type of passport- page(s) containing personal information- expiration date- Federal Police stamp indicating entry in Brazil- official visa, if required3. Three recent 3cm x 4 cm photographs

The travel document may be a regular passport. If a dependent’s personal data have not been sent on the occasion of the office holder’s accreditation, a new form should be filled out with the information on each dependent and sent in with the requisite documents.

OBSERVATIONS

1. For those under guardianship, a copy of the guardianship granting document must also be submitted with the other documents required for the accreditation of dependents.

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2. The validity of the identity cards issued by the CGPI is based on the validity of the travel document and of the visa, if the latter is required. In the case of experts, the duration of the project in point is also taken into consideration. For dependents of the members of the different categories, the validity of their identity cards is also based on the validity of the travel document and of the visa, if the latter is required, and may not exceed the validity of the office holder’s visa. The functionaries in the different categories and their dependents are thus advised to check the validity of their travel documents and visa before applying to the CGPI for identity cards.

3. For the purposes of accreditation by the CGPI, presentation of a visa is waived only in the case of the office holder or the holder of a diplomatic or an official passport at the service of a country with which Brazil has celebrated a visa waiver agreement.

4. All the fields in the “Foreign Functionaries” Form must be filled out and all the documents required for each functional category must be submitted so as to avoid delays in the issuing of identity cards. The “Foreign Functionaries” Form will be returned to the Mission or Representation at the CGPI Documents Desk if it is necessary to fill out any fields left blank.

5. On the “Foreign Functionaries” Form the fields pertaining to home address and telephone may be left blank in case this information is still unavailable at the time of the accreditation application. The Mission or Representation must notify the CGPI of the definitive address and telephone number through a Verbal Note to be delivered at the Entry Desk as soon as possible.

6. The termination of a functionary’s functions should be notified by a Verbal Note accompanied by the corresponding identity card.

4.2.1.2. Renewal

Application for renewal of identity cards issued by the CGPI to the different functional categories must be submitted solely through a Verbal Note with its enclosures delivered at the Entry Desk (MRE’s Anexo II). To expedite the process it is advisable to hand in the original of the Verbal Note and a copy authenticated by the Entry Desk at the CGPI Documents Desk, accompanied by the following documents:

a) Identity card to be renewed;

b) Copy of the page of the travel document required for each category, showing its validity (diplomatic or official passport or laissez passer); and

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c) Copy of the current visa, whether official or diplomatic, if required, according to each category.

OBSERVATIONS

1. This procedure applies also to dependents of members of the different functional categories.

2. The renewal of identity cards issued by the CGPI is also based on the validity of the travel document or visa (if the latter is required). In the case of experts, the duration of the project will also be taken into consideration.

3. The validity of a dependent’s identity card matches the validity of the office holder’s identity card. Accordingly, renewal of a dependent’s card can only be done in conjunction with the latter or after application for the renewal of the office holder’s identity card.

4. Representatives of International Organizations and their associates, as well as international functionaries, should pay attention to the validity of their laissez passer, as common passports of their countries of origin will not be accepted for the issuing or renewal of CGPI identity cards.

4.2.1.3. Loss, theft, misplacement, or damage

Notification of loss, theft, misplacement of or damage to an identity card issued by the CGPI and the application for a reissue should be submitted by a Verbal Note with its enclosures handed in to the Entry Desk (MRE’s Anexo II). It is advisable to hand in the Verbal Note through the Entry Desk, together with a copy authenticated by the Entry Desk, at the CGPI Documents Desk, accompanied by the following attachments:

a) Copy of the police report for the reissue of the identity document (only in case of misplacement, loss, or theft)

b) Recent 3 cm x 4 cm photograph; and

c) Damaged identity card, if such is the case.

OBSERVATION

Should the validity of the travel document or of the visa, if the latter is required, expire before 90 days, the two documents must be renewed before an identity card with a more extended validity may be issued.

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4.2.1.4. Termination of functions

The identity card must be returned accompanied by a Verbal Note indicating the exact date of the functionary’s departure.

4.2.2. National Driver’s License (CNH)

The Ministry of External Relations reports that in accordance with Contran Resolution No. 193/06 the holders of privileges and immunities are not required to bear a National Drivers License (CNH) for driving their vehicles. A valid driver’s license from their country of origin is sufficient.

Protocol recommends that a driver should always carry with him/her the valid original driver’s license from his/her country of origin together with a Portuguese translation thereof, so as to avoid any difficulties with transit authorities.

If a functionary’s driver’s license from his/her country of origin has expired, he/she should go directly to Detran and follow the standard procedures for obtaining a Brazilian CNH, including the payment of the pertinent charges.

4.2.3. Courtesy enrollment (MATRICOR)

Courtesy Enrollment (MATRICOR) is ensured under Decree No. 89758 of June 6, 1984 and is granted a foreign functionary or his/her dependent, subject to the following conditions:

a) He/she must hold a diplomatic or official visa (in case no visa waiver agreement exists);

b) He/she must be a national of a country that observes reciprocity; and

c) He/she must be registered with the CGPI or with the DAC.

MATRICOR application should be in the form of a Verbal Note addressed to the Ministry of External Relations, with indication of the name of the dependent and the number of his/her registration with CGPI or DAC, as well as the course to be taken and the name of the higher education institution to be attended.

Once reciprocity has been verified, it is up to the CGPI to request from the Ministry of Education (MEC) enrollment at the University desired. After the Ministry of Education grants its authorization, the student himself/herself should proceed with the enrollment at the University, which will indicate the documentation required. Any fees and annuities charged should be paid by the

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student. Should the student want to change course, a copy of his/her withdrawal notice will be required for requesting, through a Verbal Note, enrollment in another course.

After a diplomat returns to his country, his/her dependents that are studying at Brazilian higher education institutions as Courtesy Enrollment beneficiaries may remain in Brazil, if they so wish, to finish their studies. In this case, the Embassy should, before the expiration of the current visa and using the appropriate form, apply to the Ministry of Justice’s Foreigners Department (DEEST/MJ, Esplanada dos Ministérios) for a change from a diplomatic or official visa to a student’s temporary visa pursuant to Art. 39 of Law 6815/80. Alternatively, it may send a Verbal Note to the Immigration Division of the Ministry of External Relations requesting authorization for the issuance of a student visa at a border Consulate, at which the student should appear to obtain the visa. In this case, the following documents are required: common passport; application supported by proof of acceptance by or enrollment at a higher education institution; demonstration of having the means for maintaining himself/herself during the period of studies; and a good conduct certificate.

4.2.4. Health care at the Armed Forces Hospital (HFA)

Medical and hospital and dental care is provided by the Armed Forces Hospital (HAF) to functionaries accredited by the CGPI. The HAF offers free medical care to military attachés, aides, and assistants and their dependents if equal treatment is accorded Brazilian military functionaries and their dependents in their country of origin.

Diplomatic agents, civilian attachés, aides, and their spouses as well as their dependents (up to age 21, or up to the age of 24 in the case of university students) have access to courtesy medical services at the HAF. Consultations and tests, though, are subject to fees established by the Brazilian Medical Association.

For accreditation to the HFA, the Mission should fill out two copies of a “Request for Medical Hospital Care” form and hand it in at the CGPI Documents Desk, without attachments and including the following information:

a) Name of the Mission;

b) Name and registration number of the office holder;

c) Date, name, and signature of the Head of Mission or his/her proxy; and

d) Mission’s stamp.

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After processing, the form is returned to the Mission to be presented at the HAF’s Public Relations Division, together with a 3 cm x 4 cm photo of each dependent and the Identity Card issued by the CGPI.

4.2.5. Work by Dependents (TRADEP)

Brazil has endeavored to establish a legal framework to create room for foreign functionaries’ family members on the local market and for Brazilians posted abroad. By April 2009, Brazil had signed 44 bilateral agreements with the countries listed below on the performance of remunerated work by dependents of diplomatic and consular agents:

Germany Argentina Australia BelgiumBenin Bolivia Botswana Cape VerdeChile Colombia Costa Rica Denmark

El Salvador Ecuador Spain United StatesPhilippines France Guyana Hungary

India Israel Italy MaliMexico Nicaragua Norway New Zealand

The Netherlands Panama Paraguay PeruPortugal United Kingdom Dominican Republic Czech RepublicSenegal Sweden Switzerland Tanzania

East Timor Togo Uruguay Venezuela

Work authorization for dependents of Mission functionaries is granted on the basis of a Bilateral Agreement between Brazil and the sending country as published in the Official Gazette (DOU). The Mission should fill out one copy of the “Request for Authorization of Work by Dependents” form, without attachments and including the following information:

a) Name of the Diplomatic Mission or Consular Representation, city, and state;

b) Name, registration number, home address, parents’ names, and place and date of birth of the interested party;

c) Name, registration number, and position of the Office Holder;

d) Information on the contemplated job (employer’s name, CNPJ, duration of contract, and function to be performed); and

e) Date, Mission stamp, and name and signature of the Office Holder and of the Head of Mission or authorized functionary.

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The form should be handed in at the CGPI Documents Desk. After being processed, the form will be returned to the Mission and the interested party should present it to the Regional Labor Office (DRT) of his/her place of residence to obtain a Work and Social Security Card (CTPS).

4.3. Signature notarization, autograph card, and Signature Authorization Record Card (CARE)

The CGPI notarizes the signature of diplomatic, consular, and administrative functionaries as well as of international functionaries and experts of Representations of International Organizations accredited in Brazil.

The signature to be notarized must match exactly the signature on the autograph card that accompanies the “Foreign Functionaries” form signed at the time of a functionary’s accreditation with the CGTPI.

For identification and notarization of signatures on documents, the following is required:

a) Sheets with the Mission stamp; and

b) Stamp with the signer’s full name and position, or with his/her name typed below the signature.

Upon arrival in Brazil, all functionaries must send in their signatures to the CGPI on the autograph card that accompanies the “Foreign Functionaries” form.

CARE is also an autograph card that permits foreign functionaries to sign official documents of a Diplomatic or Consular Mission or of Representations of International Organizations. Only those functionaries authorized by the Head of Mission to sign Mission documents should fill out and sign the CARE.

The Mission or Representation should submit filled-out one copy of the filled out CARE, without attachments, containing the following information:

a) Full name of the Mission or Representation at the top of the form;

b) In fields 1 to 4, data on the functionaries authorized to sign should be entered. The Mission or Representation should fill out one field for each functionary. If the Mission or Representation appoints more than four functionaries, a second CARE must be filled out and equally signed by the Head of Mission or Representation;

c) Functionary’s full name as it appears on his/her Identity Card;

d) Registration/ID: functionary’s registration number;

e) Position: functionary’s position at the Mission or Representation;

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f) Signatures: a functionary must affix three signatures;

g) Initials: a functionary must affix his/her initials three times:

h) Date;

i) Mission stamp; and

j) Signature of the Head of Mission or Representation, and stamp with his/her full name affixed below the signature.

When there is a change of Head of Diplomatic Mission or International Organization Representation, a new CARE should be submitted with the name(s) of the functionary(ies) authorized by him/her to sign. Likewise, when any of the authorized functionaries leaves Brazil permanently, a new CARE should be submitted to the CGPI with the signature of and information on his/her replacement, if any.

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5. GOODS

Goods and personal possessions of foreign functionaries may enter Brazil in three different ways:

1. Unaccompanied baggage: unaccompanied baggage is the name given personal possessions brought in by a foreign functionary from his/her last post or country of origin. The shipping document should show the name of the functionary as the shipper or sender. In the “Complementary Information” field of the “Simplified Importation Declaration” form, the expression “unaccompanied baggage” should be entered.

The Internal Revenue Service considers as unaccompanied baggage the goods brought in by a functionary up to three months before and up to six months after his/her arrival.5 This time frame should be strictly observed.

2. Importation: all purchases made abroad. To internalize such goods, a DSI form must be submitted. The shipping document must indicate as shipper or sender the business issuing the invoice. To diplomatic and consular functionaries the importing privilege is granted throughout their stay in Brazil.

It should be noted that administrative functionaries and experts are granted the importing privilege only during their settling-in period (six months as of the date of their arrival in Brazil).

Packages that come through the Brazilian Post and Telegraph Company (ECT) and merchandise bought from the Peter Justesen Company and similar companies should be cleared on presentation of a DSI.

3. Programmed Sale Slip (NVP): in addition to being able to import goods, a foreign functionary entitled to the tax exemption privilege may use the facilities of a duty free shop – Dufry6 to purchase items tax free, provided this is done in quantities considered reasonable by Protocol; and in the case of administrative functionaries or experts, only during the first six months of their settlement in Brazil.

4. Live animals, plants, and unprocessed products: under Brazilian and international laws, the importation or exportation of live animals, plants and meats should be accompanied by a phytosanitary certificate issued by the competent authorities. Further information may be obtained in Brasilia from Fundação Zoobotânica (Telephones: (61) 3272-3650; 3274-2641).

5 SRF Normative Instruction No. 33 of May 9, 1995.6 At the time this Manual was being prepared, the Brasilia Dufry shop was in the process of being

opened.

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5.1. “Simplified Importation Declaration” Form (DSI)

Goods imported by foreign missions are accorded simplified customs clearance by the Internal Revenue Service, based on a “Simplified Import Declaration” form (DSI). On the basis of the information given in this form, exemption from the applicable duties may be granted.

For the proper filling out of a DSI, the interested party should, in addition to complying with the general dispositions under Item 1 of this Manual regarding the affixing of stamps and signatures, follow the procedure below:

Item 1 – Importer

1. “Name/Legal Entity’s Name”: fill in the name of the interested party, Diplomatic Mission, Consular Post or International Organization Representation that is ordering the merchandise, as the case may be.7 If, for instance, the imports are destined for a Consulate, enter the functionary’s full name, registration number, and CPF (in case of a consular functionary, attach copy of his/her Identity Card). If the interested party is not a natural person, enter its CNPJ and leave blank the other items that do not apply to a legal entity;

2. “Type of Visa”: the type of visa must be entered, as the exemption period varies according to the type of visa;

3. “Date of Arrival”: enter the date the functionary has arrived or will arrive in Brazil;

4. “Legal Representative”: is the natural person or legal entity responsible for entering the information in the DSI form.

Item 2 – Customs clearance

In the “Total value of goods (US$)” field the total value of the goods to be imported should be entered, even if it is only an estimate. The amount should be preferentially in dollars. The value of the merchandise may also be indicated in other currencies, such as the euro or the yen, provided this is precisely entered in the “Complementary Information” field.

“Complementary Information” field: in the case of unaccompanied baggage, enter “Unaccompanied baggage. No commercial value.” In this field enter also information pertaining to technical, scientific, and cultural agreement, as the case may be. For other imports, enter the following: “Decree No. 37 of November 18, 1996; Decree No. 6759 of February 5, 2009; and SRF Normative Instruction No. 338 of July 7, 2003.”

7 It should be noted that if there is a Trade Office in a city where there is a Consulate of the same country, this Trade Office is attached to the Consulate. In this case, it is recommended that the Consulate be entered as the interested party.

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Item 3 – Merchandise information

1. “Carrier”: enter the name of the carrier that will transport the merchandise;

2. “Means of transportation: enter the flight number, name of the ship, or license plate, as the case may be;

3. “Country of origin”: enter the name of the city from which the merchandise was shipped or, in the case of baggage, the city from where the functionary departed with this baggage;

4. “Date of arrival”: enter the date of the merchandise’s arrival in Brazil;

5. “Bill of Lading’s Number”: enter the number of the bill of lading or airway bill (AWB);

6. “Quantity of packages”: enter the quantity of packages according to the bill of lading;

7. “Gross weight”: enter the gross weight according to the bill of lading;

8. “Net weight”: enter the net weight of the merchandise according to the invoice or, in the lack of an invoice, enter the gross weight again; and

9. “Depositary/Warehouse”: enter the place where the merchandise will be kept while awaiting clearance.

Item 4 – List of goods

List all items, indicating quantity and unit price as well as the total value of the imports or baggage. Enter the total value, even if it is only an estimate (in case of a pro forma invoice). If the goods cannot be listed separately in this field, attach an extra sheet indicating the remaining items (see the definition of importation and of baggage under Item 5 of this Manual).

In the field “Importer’s/Legal Representative’s Signature” enter both the signature and the full name of the signer. In case of importation for official use, only a diplomatic functionary accredited with the CGPI may sign on behalf of the Mission and his/her full name must be entered below the signature. The place, date, the Head of Mission’s signature, and the Mission stamp must be entered below Item 4 of the description.

5.1.1. Unaccompanied baggage

The unaccompanied baggage consists in a functionary’s personal possessions brought in from his/her last post or country of origin. The bill of

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lading must be in the name of the functionary, whose name (or the name of the Ministry sending the merchandise) must appear as shipper or sender.

The baggage should enter Brazil within a period of three months before or of six months after the functionary’s arrival, pursuant to SRF Normative Instruction No. 23 of May 9, 1995.

It is important to note particularly the interested party’s registration number, which should be entered in the “Name/Legal Entity Name” field. The registration number is obtained as the functionary is accredited with the CGPI or DAC, as the case may be. It should be stressed that a functionary must obtain his/her registration number within two months after his/her arrival in Brazil.

A copy of the Bill of Lading must be attached to the DSI.

Goods purchased in a third country or that are not sent by the Foreign Ministry, or goods imported after the six-month deadline cannot be considered as baggage; for all purposes they will be treated as imports and be subject to the requirements listed below.

5.1.2. Importation

A) TECHNICAL, SCIENTIFIC, AND CULTURAL COOPERATION

Imports destined for cooperation projects should be always in the name of the Mission or Representation, and for official use. In the “Complementary Information” field enter the title of the cooperation project and the legal instruments that support it, with the dates these were published in the Official Gazette (DOU), as well as the name of the institution for which the goods are destined.

The DSI fields should be filled as follows:

a) “Importer”: enter the name of the Mission or Representation in the “Name/Legal Entity Name” field;

b) “Goods Information”: all fields must be filled out; and

c) “List of Goods”: list the items imported. Their value must be obligatorily entered.

ATTACHMENTS

1. Bill of Lading (copy): should show the name of the Mission or Representation, as well as the name of the project or institution for which the goods are destined.

2. Commercial Invoice: should also mention the project. If the goods are sent by the headquarters of the International Organization or by the competent

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foreign Government agency, a pro forma invoice is acceptable. Preferentially, a copy of the International Organization headquarters’ or competent foreign Government agency’s stock control list should be attached.

3. Invoice translation: the translation should follow the same order of the goods listed on the invoice (s), including the order of the addressees’ names. The goods must be individually listed, and their exact quantity and unit price must be entered.

B) GOODS PURCHASED FOR OFFICIAL OR PRIVATE USE FROM BUSINESSES ABROAD

Goods purchased from businesses abroad by a Mission or Representation or by a functionary must be cleared against presentation of a commercial invoice. This is the case of goods purchased from the Peter Justesen Company, for instance. In this case a pro forma invoice is not acceptable, even if the purchases are for official use.

The form should be filled out according to the instructions of Item 1 of this Manual.

The Bill of Lading or Airway Bill must be issued in the name of the interested party. The sender or shipper must be the company selling the goods and its commercial invoice must specify the goods and their quantity.

A translation of the invoice into Portuguese must be submitted and comply with the following:

a) Items should be translated in the order they appear on the invoice;

b) The quantity of each item must be specified; and

c) The Mission or Representation seal must be affixed to it.

The value of the goods must be entered under “Goods Description.”

B.1) CONSOLIDATED INVOICE

In case there is more than one addressee, the Internal Revenue Service asks that a “Consolidated Invoice” be issued in the Name of the Mission or Representation according to the following procedure:

a) Attach a list in Portuguese indicating under the name of the interested party the goods and their quantity and value. In this case, there is no need to translate the consolidated invoice, only the individual invoices that form part of it;

b) Attach a copy of the consolidated invoice and of all the other invoices that form part of it, showing that the sum of the individual invoices equals the total amount of the consolidated invoice;

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c) Indicate the functionary’s registration number on each invoice that forms part of the consolidated invoice; and

d) Attach a copy of the Bill of Lading.

C) GOODS PURCHASED ABROAD FOR OFFICIAL OR PRIVATE USE THROUGH THE BRAZILIAN POST AND TELEGRAPH COMPANY (ECT)

In this case, the procedure is the same as described under B above.

Under “Goods Information” enter the following:

a) “Carrier”: Empresa Brasileira de Correios e Telégrafo (ECT);

b) “Means of Transportation”: leave blank;

c) “Country of Origin”: enter the country of origin of the goods shipped from abroad;

d) “Date of the Goods’ Arrival in Brazil”; and

e) “Bill of Lading Number”: enter the number of the ECT invoice and the registration number, which should also be entered on the ECT document.

OBSERVATION

The bill of lading, the commercial invoice, and the notice issued by the ECT should be attached. If the functionary does not have a copy of the invoice, he/she may obtain if from the Post Office branch where the merchandise was received.

D) MERCHANDISE FOR OFFICIAL USE SENT BY A FOREIGN GOVERNMENT OR BY THE HEADQUARTERS OF AN INTERNATIONAL ORGANIZATION

The Internal Revenue Service accepts a pro forma invoice solely for the clearance of goods sent by the foreign Government or by the Headquarters of an International Organization.

The Bill of Lading must include the name of the foreign Government or of the International Organization’s Headquarters as sender or shipper.

Under “Description of Goods,” indication of their value is obligatory. In the case of a pro forma invoice, the value may be an estimate but has to be mentioned.

A translation of all the invoice items in the order they appear on the invoice must be submitted.

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E) MERCHANDISE FOR CHARITY FAIRS, BAZARS, AND GASTRONOMIC EVENTS

Under Brazilian law, donations for Brazilian institutions as well as goods for temporary entry must be cleared by Internal Revenue Service Offices at entry ports and airports.

Goods destined for fairs, bazaars or any other promotional events are cleared according to the following procedure:

1. Before the Diplomatic Mission takes any steps, it is up to the promoting institution to request authorization for staging the event from the Internal Revenue Service – Logistic Division (DILOG/BSB), giving the names of the Diplomatic Missions that will participate in the event.

2. The Diplomatic Mission must prepare a detailed description of the goods on Mission letterhead and submit it to DILOG/BSB for authentication and authorization.

3. Once authorization from the Internal Revenue Service has been obtained, the DSI form should be sent to the MRE, with the following attachments:

a) Copy of the commercial invoice;

b) Copy of the Bill of Lading; and

c) List of the goods, approved by the Internal Revenue Service.

The merchandise should be cleared before noon of the last day of the event. Thereafter the DSI loses its validity.

The DSI form should be filled out according to the instructions of this Manual. In the “Complementary Information” field, the following expression should be entered: “Merchandise destined for (name of the event).”

5.2. Dufry duty free shop8

In addition to being able to import goods, a foreign functionary holding the privilege of tax exemption subject to reciprocity may take advantage of the facilities of the Dufry duty free shop to make tax exempt purchases in quantities deemed reasonable by Protocol, and an administrative functionary or expert may enjoy this privilege for six months as of his/her arrival in Brazil.

Occasional and programmed purchases are subject to tax quotas in an amount of which the Missions have been notified by Circular Verbal Note No.

8 At the time this Manual was being prepared, the Brasilia Dufry shop was in the process of being opened.

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5/2006 of April 19, 2006, which can be accessed on the site www.cgpi.mre.gov.br/dsi-dse/documentos/nota-circular-no-005-06/view.

Goods purchased at the Dufry are cleared against presentation to the MRE of the form filled out by the shop, titled “Programmed Purchase Slip” (NVP). On this form, the following items should be shown:

a) Date of the functionary’s arrival (first field, on the forms upper corner); and

b) Number and date of the Verbal Note notifying the MRE of the functionary’s arrival.

In the “Mission Stamp” field, the Mission stamp should be affixed and initialed by a person accredited with the CGPI to sign on the Mission’s behalf.

The “Name of Purchaser” field is filled out by the Dufry but it should be checked if the functionary’s registration number has been entered correctly.

On the lower part of the form, the “Date/Purchaser’s Signature” field should be entered the functionary’s signature and full name.

5.3. “Simplified Exportation Declaration (DSE)” Form

Goods exported by foreign Missions are also subject to simplified customs clearance, for which a “Simplified Exportation Declaration (DSE)” form is used in the case of unaccompanied goods and baggage being shipped abroad. This form allows the Internal Revenue Service to grant the proper tax exemptions.

In the case of unaccompanied baggage, the DSE form is promptly released, provided that:

a) The functionary has not acquired any weapon in Brazil:

b) No vehicle in the functionary’s name is a pending situation (the DSE form should not be presented before the transfer process has been concluded, including the return of plates):

c) The baggage has entered the country under a DSI; and

d) The DSE is accompanied by a copy of the Verbal Note communicating the functionary’s departure from Brazil.

As regards a DSE for goods being sent abroad for repairs or as returned items, etc. the only requirement is that the goods have entered Brazil covered by a DSI.

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6. PROCEDURES FOR IMPORTING PETS

The Brazilian phytosanitary authorities do not require that animals entering Brazil be quarantined. Requirements to be met for the admission of house or wilderness pets are specified below.

6.1. Household pets

6.1.1. Household pets from Mercosur member countries

Directive No. 429 of October 14, 1997 issued by the Ministry of Agriculture, Livestock and Food Supply (MAPA) set Sanitary Rules for the Transit of Domestic Canines and Felines from Mercosur. These rules, which have been approved by Mercosur, apply to household canines and felines accompanying passengers. Canines and felines in transit should be covered by a zoosanitary certificate and by an antirabies vaccination certificate issued by an official veterinary or by an accredited veterinary.

ZOOSANITARY CERTIFICATE AND ANTIRABIES VACCINATION CERTIFICATE

The zoosanitary and the antirabies vaccination certificates should provide the following information:

a) Animal’s owner: full name, home address (street, street number, city, state, and country); and

b) Animal: name, breed, sex, date of birth, size, coat, and particular signs.

In addition to the preceding information, the zoosanitary certificate should indicate the country of origin and the destination country. Proof must be shown that the animal was examined within ten days prior to the date of entry in Brazil and does not show clinical signs of diseases peculiar to the species.

An antirabies vaccination certificate will be required for canines and felines over three months of age, and the vaccine must have been administered less than thirty days before the animal’s travel, in case of the first vaccination, with maximum validity of one year.

All documents must be authenticated at the Brazilian Consulate of the area of origin.

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6.1.2. Household pets from Mercosur nonmember countries

MAPA’s Directive No. 430 of October 14, 1997 set the Sanitary Rules for the Importation of Household Canines and Felines from Mercosur Nonmember Countries. These canines and felines must be covered by a zoosanitary certificate and by an antirabies vaccination certificate issued by an official or an accredited veterinary.

ZOOSANITARY CERTIFICATE AND ANTIRABIES VACCINATION CERTIFICATE

The zoosanitary and the antirabies vaccination certificates should provide the following information:

a) Animal’s owner: full name, home address (street, street number, city, state, and country; and

b) Animal: name, breed, sex, date of birth, size, coat, and particular signs.

In addition to the preceding information, the zoosanitary certificate should indicate the country of origin and the destination country. Proof must be shown that the animal was examined within ten days prior to the date of entry in Brazil and does not show clinical signs of diseases peculiar to the species.

An antirabies vaccination certificate will be required for canines and felines over three months of age, and the vaccine must have been administered less than thirty days before the animal’s travel, in case of the first vaccination, with maximum validity of one year.

In the case of animals from countries that officially report to the OIE the occurrence of African equine pest and/or Rift Valley fever in their territory, the certificate must also provide the following information:

a) At the place of origin no case of the abovementioned diseases has been reported within a radio of 50 (fifty) kilometers in the last three years; and

b) The animals have not been in regions affected by these diseases in the last three years.

Animals meeting the above requirements will not be subjected to quarantine. In case of suspicion of contagious infectious, zoonotic, or high-risk diseases, the veterinary authority will determine measures for the animals’ isolation and the requisite sanitary measures.

All required documents must be authenticated at the Brazilian Consulate in the area of origin.

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6.2. Wilderness Pets

The exportation and the importation of specimens, biological material, products and subproducts of the Brazilian wild fauna and of the exotic wild fauna, whether listed or not in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), need a license from the Brazilian Institute of Environment and Renewable Resources (IBAMA), an agency of the Ministry of the Environment. General requirements for obtaining such a license are as follows:

a) Application to IBAMA submitted through the SISCITES system. This service is available on the site http://serviços.ibama.gov.br/cogeq/;

b) Determination by IBAMA as to whether the importation will not jeopardize the species survival;

c) Presentation by the interested party of an exportation license to IBAMA or, in some cases, a certificate of origin from the country that authorizes the specimens’ exportation or reexportation; and

d) In the case of live specimens, the receiver must provide proof of appropriate facilities to house them.

Persons abroad may apply to IBAMA for an import license to return to Brazil bringing their pets with them. Under IBAMA Directive No. 93/98, it is forbidden the importation for commercial breeding, maintaining in captivity as pets or as ornament or for display at itinerant or fixed shows the following categories of live animals:

a) Invertebrates;

b) Amphibians;

c) Reptiles;

d) Birds of the Sicalis flaveola species and its subspecies: and

e) Mammals of the following orders: Artiodactyla, Carnivora, Cetacea, Insectivora, Lagomorpha, Marsupialia, Pennipedia, Perissodactyla, Proboscidea, Rodentia, and Sirenia.

The abovementioned documents should be submitted to the Coordination Office for the Management of the Use of Fauna Species (CODEFA), whose address is: SCEN, Trecho 2, Edifício-sede do Ibama, Bloco B, Brasilia, DF, CEP 70818-900. The interested party may retrieve the license at any IBAMA unit or may contact Ibama/COEFA by telephone (61) 3316-1171 to find out another way to retrieve the license. All documents must be authenticated at the Brazilian Consulate in the area of origin.

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7. SECURITY

The security of the Diplomatic Corps accredited in Brasilia is incumbent upon the Fifth Battalion of the Federal District Military Police – the “Barão do Rio Branco” Battalion, located at QI 11 AE, Lago Sul. Pursuant to Circular Note No. 22/07 of September 19, 2007, security services rendered by the “Barão do Rio Branco” Battalion are based on tactical-mobile surveillance, deemed the most appropriate by the Federal District public security authorities. The “Barão do Rio Branco” Battalion does not keep its vehicles permanently stationed in front of the main premises of foreign Missions.

To enhance the efficiency of its performance, the “Barão do Rio Branco” Battalion undertakes dynamic preventive operations, in which it uses vehicles, motorcycles, police officers on foot, teams under cover, and air and water patrolling. It also undertakes technical inspection visits aimed at improving security measures at the Missions established in Brasilia.

Requests for police protection on the occasion of visits by foreign authorities should be addressed to the Ministry of External Relations’s Protocol to be forwarded to the competent body. Policing at receptions may be requested directly to the Fifth Battalion at least 72 hours in advance.

The “Barão do Rio Branco” Battalion can be reached by the following telephones:

Administration: (61) 3248-1368Commander: (61) 3364-6018Fax: (61) 3364-6018Officer on duty: (61) 3364-3762

In case of theft or burglary at the seat of a Diplomatic Mission or at diplomats’ residences, a Police Report (BO) should be taken down at the 10ª Delegacia de Polícia Civil do Distrito Federal, located at SHIS, AE, QI 11/13, Lago Sul, Telephones (61) 3248-9600 and (61) 3248-9628.

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8. WEAPONS

The rules pertaining to the registration, bearing, and acquisition of firearms by functionaries of Diplomatic Missions, Special Delegations, Consular Posts, and Representations of International Organizations are set forth in the Disarmament Statute (Law 10826/03) and Decree No. 5123/04.

In addition to these legal texts, the rules here explained reflect the orientation transmitted to the representatives of Diplomatic Missions, Special Delegations, Consular Posts, and Representations of International Organizations on the occasion of the lecture delivered on November 10, 2006 by the representatives of the Controlled Products Inspection Board (DFPC) of the Brazilian Army and of the National Arms Service (SENARM) of the Federal Police Department’s General Coordination Office of Institutional Defense.

8.1. Acquisition and Registration

The acquisition of weapons and ammunition may be done on the Brazilian market or by importation. Weapons acquired on the Brazilian market are automatically registered with the National Arms System (SINARM), while imported weapons must be entered into the register of the DFPC, a body of the Brazilian Army, which is responsible for authorizing the importation of weapons, after the legal requirements have been met.

It should be noted that the mere registration of a weapon authorizes its use solely on the premises of the Diplomatic Mission or in its owner’s residence but does not grant the right to bear arms (Art. 5 of Law 10.826/03 and Art. 16 of Decree No. 5123/04). At registration, the applicant must choose the address where the firearm will be kept, as he/she will not have the right to bear it. If it is necessary to transport it, an authorization to bear arms should be obtained, the application for which must be accompanied by proof of real necessity, be it for reasons of professional activity or because of risk or threat to the applicant’s physical integrity.

To proceed with the acquisition, the Embassy should address a Verbal Note to the MRE describing the weapons envisaged, and giving the applicant’s name and number of his/her identity card issued by the MRE or passport, together with a copy of the pro forma invoice. A SINARM “Authorization for the Acquisition by a Natural Person of a Firearm of Permitted Use” form and the following documents should be attached (Arts. 5 and 6 of IN No. 23/05-DG/DPF):

I - Copy of the applicant’s passport or identity card issued by the MRE;

II - Two recent 3 cm x 4 cm photographs;

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III - Statement as to the actual need by reason of the applicant’s professional activity, which entails a risk or a threat to his/her physical integrity;

IV - Certificate of psychological evaluation for the handling of a firearm, in the form of a conclusive opinion issued by a psychologist of the Federal Police Department or accredited with said Department, both of whom must be registered with the Regional Psychology Council (CRP);

V - Certificate of technical capacity for handling a firearm issued by an armament and firing instructor of the Federal Police or accredited by it. The exam shall cover the following:

a) Knowledge of the concept of firearm and security norms;

b) Basic knowledge of a firearm’s parts and components; and

c) Demonstration at a firing stand of the correct use of a firearm.

The exam will be taken only after the applicant has passed the psychological evaluation for the handling of a firearm. To conclude the acquisition process, the applicant must pay the fee specified for Registration of a Firearm; this can only be done after the applicant has been approved in both the psychological evaluation and the firing test.

Functionaries of foreign Missions need not submit documents pertaining to his/her aptness (good conduct certificate and proof that he/she is not under police investigation or the subject of criminal proceedings), which are required from Brazilian nationals. Functionaries belonging to the police or military categories are also exempted from submitting proof of technical capacity and psychological aptness.

8.1.1. Importation

Firearms brought into the national territory for both official and private use, including those destined for functionaries in charge of security on Mission premises, must be registered with the DFPC.

The acquisition of a firearm through importation presupposes compliance with the normal importation procedures and the presentation of an International Importation Certificate (IIC) for the consideration of the Ministry of External Relations and of the Controlled Products Inspection Board.

Once authorization has been granted, a “Simplified Importation Declaration” (DSI) should be submitted to the CGPI, together with copies of the Ministry of Defense’s authorization, the lading bill, and the commercial invoice. The letter to the DFPC, the CII, and the DSI should be handed in to the Military Region in the area where the arms will arrive. The arms cannot be shipped until authorization is granted by the MRE in a Verbal Note.

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The importation of arms and ammunition, subject to reciprocity, follows the procedures listed below, which involve, in addition to the MRE, the Brazilian Army, the Internal Revenue Service, the Federal Police, and Infraero:

A) FIRST STEPS

1. The interested Diplomatic Mission should address a Verbal Note to the CGPI describing the armament and the ammunition it intends to import and giving the name of the foreign functionary that will bear it and attaching a copy of the pro forma invoice and a copy of said functionary’s identity card issued by the CGPI (or by the MRE’s Consular Services Division). It is crucial that a filled-out “CII” form be also attached to the Verbal Note, the model CII form can be accessed on the DFPC site: www.dfpc.eb.mil.br.

2. Through the CGPI, the MRE will forward the importation application to the DFPC.

3. The DFPC will review the application so as to approve the CII, a document that supports the first authorization needed for the armament’s importation.

4. After receiving an answer in favor of the importation from that body of the Brazilian Army, the CGPI, by Verbal Note, will forward the authorized CII to the requesting Diplomatic Mission.

The CGPI recommends that the arms to be imported be shipped only after the requesting Mission has received from the CGPI the Verbal Note communicating the actual authorization granted by the DFPC.

B) FOLLOWUP

1. To proceed with the armament importation process, the CGPI must be provided with four copies of the duly filled out DSI form, together with four copies of the CII already authorized by the DFPC as well as the Bill of Lading and the commercial invoice, as the case may be.

2. The DSI form and the instructions for filling it out are available for printing at CGPI’s site: www.cgpi.mre.gov.br.

3. The filled-out DSI should be handed in at the CGPI’s Services Desk, so that Itamaraty may give its assent to the importation of the armament at issue.

4. The interested Diplomat Mission should address itself again to the Services Desk during the hours it is open to retrieve the DSI already authorized by the CGPI and take it to the Internal Revenue Service to secure its specific consent to the envisaged importation.

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5. The arm can thus be unloaded on Brazilian territory after the International Importation Certificate issued by the DFPC has been obtained and the Simplified Importation Declaration has been duly authorized by both Itamaraty and the Internal Revenue Service.

C) WITHOLDING AND INSPECTION

1. As soon as the armament arrives on the Brazilian territory, the Internal Revenue Service will withhold the material and issue a “Withholding Notice”.

2. In possession of this document, the Diplomatic Mission should seek the SFPC of the Military Region where the airport of the arm’s entry in Brazil is located, to request an inspection of the armament, a sine qua non before the arm is handed over to the Diplomatic Mission’s authorized representative and for its legal registration.

3. Should the arm’s entry port be Brasilia, the 11th Military Region’s SFPC should be contacted [Esplanada dos Ministérios, Ministério da Defesa, Bloco O, sala 315, tel.: (61) 3317-3404].

4. Should the arm’s entry port be São Paulo, the 1st Military Region’s SFPC should be contacted [Av. Sargento Mário Kozel Filho, 222, Paraíso, tel.: (11) 3888-5464].

5. Should the arm’s entry port be Rio de Janeiro, the 2nd Military Region’s SFPC should be contacted [Palácio Duque de Caxias, Praça Duque de Caxias, 25, Centro, 4º andar, tels.: (21) 2519-5636; (21) 2519-5474].

8.1.2. Acquisition on the Brazilian market

The Embassy should send a Verbal Note requesting authorization for the acquisition of the desired firearm and cartridges, together with duly filled-out SINARM forms and pro forma invoices, with a description of the goods contemplated. The Verbal Note should also indicate the name and identity number of the foreign functionary that is to bear the arm, with a copy of the respective identity card issued by the CGPI (or by the MRE’s Consular Services Division) attached. The decision about the authorization is incumbent on the DFPC.

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8.2. License to bear an arm

Pursuant to Articles 4 and 9 of Law 10826/03, functionaries interested in keeping a firearm in their residence must clearly express the actual need as well as sending a document attesting to his/her technical capacity and psychological aptness for handling an arm. So that the Federal Police Regional Superintendence may process the application to bear firearms, the Embassy should issue a Verbal Note giving the applicant’s name, diplomatic passport number or the number of the identity card issued by the MRE, the duration of his/her mission, and the information on the arm at issue. In addition, the following documents must be presented:

a) A SINARM form of application for bearing an arm, signed by the applicant, and two 3 cm x 4 cm photographs;

b) A conclusive certificate of psychological evaluation for handling a fire arm, issued by a Federal Police psychologist or a psychologist accredited by it; and

c) A certificate of technical capacity for handling a firearm, issued by an armament and firing instructor belonging to the Federal Police or accredited by it.

Foreign members of a Mission staff are exempted from having to present documents proving their morals (good conduct certificate and proof that they are not the subject of police investigation or criminal proceedings), which are required from Brazilian nationals. Functionaries that belong to police or military categories are exempted from proving technical capacity and psychological aptness. An individual interested in purchasing a firearm will be granted authorization to do so only against presentation of the requisite documentation. These measures are aimed at restricting arm registration solely to those that meet all the conditions for keeping an arm under their responsibility at home.

Only adults aged 25 or older may purchase firearms. This has been determined by Brazilian law owing to the realization that the greatest number of murders and victims owing to the use of a firearm consists of young men aged 17-24. The minimum age for obtaining a firearm has thus been raised from 21 to 25.

8.2.1. Bearing institutional firearms for the security of temporary visits

The Protocol’s Deputy Chief’s Office is in charge of all the procedures for the entry of the arms of security agents that accompany visiting foreign authorities. A list of these security agents should be provided as much in advance as possible. The list should include their names, passport number and

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the model and caliber of the arm to be used. Whenever possible, a copy of the agents’ passports should also be provided. Once an agent has received authorization to bear the arm, he/she may follow the visiting authority to all his/her engagements on the national territory.

The application form for authorization to bear an arm temporarily can be obtained from the Ministry of External Relations’s Protocol site: www2.mre.gov.br/cerimonial. The registration and authorization to bear an arm are an exclusive prerogative of the Federal Police Department.

The transportation of arms not covered by an authorization to bear arms and that must be moved from one place to another requires authorization from the Army Command in the form of a “Transit Bill.” In the case of an arm for private use, authorization should be granted by the Federal Police in the form an “Authorization to Bear Arm in Transit.”

8.3. Procedures for taking arms on departing from Brazil

Before leaving Brazil permanently, a functionary must see to the cancellation of his/her arm registration and license to bear arms. To this end, he/she must fill out a “Simplified Exportation Declaration” form (DSE) and attach to it, in case the arm has been imported, a copy of the DSI form that supported the authorization for the arm’s entry into the country, a copy of the Ministry of Defense’s authorization, and the original copies of the arm’s registration and of the authorization to bear the arm. In the “List of Goods” field, the model and caliber of the arm should be entered as well as its registration number.

Clearance for exporting a functionary’s baggage that has been authorized to acquire or import a firearm will be subject to presentation of proof that the procedures for exporting the arm have been followed.

8.4. Complementary Dispositions

1. Federal Law forbids the sale or transfer of any arm acquired or imported by foreign functionaries.

2. Any change in the arm’s condition – disappearance, theft, robbery, or damage – should be reported to the CGPI, the Federal Police, and the Army Command.

3. Subject to reciprocity, the registration and authorization to bear institutional arms granted Mission securities are exempted from the applicable fees.

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4. In the absence of reciprocity or in case of authorization to bear a private arm, the competent agencies of the Brazilian Government will charge R$300.00 (three hundred reais) for the arm’s registration and R$1,000.00 (one thousand reais) for the authorization to bear the arm, pursuant to Annex I of Law 10826/03.

5. Information given by the Missions to the Army, Federal Police, and the CGPI are covered by confidentiality.

6. If an arm is stolen, the fact should be immediately reported to the MRE by Verbal Note, to which should be attached a copy of the Police Report (BO).

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9. VEHICLES

9.1. Acquisition

A) OFFICIAL USE – GENERAL RULES

Subject to reciprocity, Diplomatic Missions, career Consular Posts, and Representations of International Organizations may acquire, tax free, Brazilian-made or imported vehicles consistent with their purpose and in a number proportionate to the number of their functionaries. In the case of imported vehicles, exemption covers the Import Duty (II, Decree-Law 37 of November 18, 1966), the Tax on Industrialized Products (IPI, Decree No. 4544 of December 26, 2002), and the state sale tax (ICMS, ICMS Agreement No. 158 of December 14, 1994). In the case of Brazilian-made vehicles, the exemption applies to the IPI and the ICMS.

B) PRIVATE USE – GENERAL RULES

Functionaries of Diplomatic Missions, and Representations of International Organizations, foreign experts and technical personnel may, subject to reciprocity, acquire imported or Brazilian-made vehicles, exempt from the abovementioned taxes,

Diplomats, civilian and military attachés and their aides posted in Brasilia may, subject to reciprocity, acquire two tax-exempt vehicles for their private use, as follows:

a) One imported vehicle, which may be replaced, tax free, after three years (Decree No. 6759/09; Art. 136, I, c) and one Brazilian-made vehicle, which cannot be replaced tax free (Law 5799 and Art. 51, XIII of Decree No. 4544/02), or

b) One Brazilian-made vehicle, which may be replaced after one year, tax free (Art. 161 of Decree No. 37/1966 and Art. 51, XII of Decree No. 4544/02), and a second Brazilian-made vehicle, which cannot be replaced tax free (Law 5799 and Art. 51, XII of Decree No. 4544/02).

Career Consular Post agents, representatives of International Organizations and their associates as well as Chiefs of Trade Offices registered with the CGPI or with DAC may acquire tax free, for their private use, one imported vehicle, which can be replaced tax free after three years (Decree No. 6759/09; Art. 136, I c) or one Brazilian-made vehicle, which can be replaced tax free, after one year (Art. 161 of Decree No. 37/1966 and Art. 51, XII of Decree No. 4544/02).

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Administrative functionaries of Diplomatic Missions, Consular Posts, and International Organizations, military attaché assistants as well as foreign experts and technical personnel – the latter subject to an agreement – may acquire tax free one imported or one Brazilian-made vehicle within six months of their arrival; such vehicle cannot be replaced tax free (Decree No. 6759/09, Art. 136, I, c; Art. 51, XII of Decree No. 4544/02; and Art. 37 para. 2 of the CVRD).

As the privilege of acquiring a vehicle tax free is granted for facilitating a foreign functionary’s discharge of his/her functions in Brazil, the vehicle’s make and model should be consist with the hierarchy and the functionary’s actual needs.

Application for the acquisition of a Brazilian-made vehicle is valid for 60 days and for the acquisition of an imported vehicle is valid for 180 days as of the CGPI’s authorization. If not used within this period, the authorization loses its validity and should be returned to the CGPI. Subsequent applications may be accepted only if the authorization documents issued earlier are returned.

Under Brazilian law, the importation of passenger cars running on diesel oil is not permitted (DNC Directive No. 23/94 and DNC Directive No. 47/94).

9.1.1. Acquisition of imported vehicles

The procedure for acquiring imported vehicles tax free (Import Duty, IPI, and ICMS) consists of two phases:

1ST PHASE

To acquire imported vehicles for both official and private use, Diplomatic Missions, Consular Posts, and Representations of International Organizations must, prior to the vehicles’ shipment, submit to the CGPI, through the Documents Desk, a filled-out form titled “Application for Authorization to Import a Vehicle,” in three copies, together with the pro forma invoice, which must indicate the vehicles’ make, model, manufacturing year, fuel, and FOB price (including all accessories) expressed in dollars or euros. In case the pro forma invoice does not provide all this information, the Diplomatic Missions, Consular Posts, or Representations of International Organizations must submit a statement providing all the information to complement that provided in the pro forma invoice, with the stamp and signature of the Head of Mission or another foreign functionary authorized to sign.

If the vehicle to be imported is used, a copy of the vehicle document in the name of the interested party should be sent to the CGPI in lieu of a pro forma invoice. The document may be, for instance, a registration certificate accompanied by a Mission declaration providing information on the vehicle, such

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as make, model, manufacturing year, fuel, and price in dollars or euros, with the stamp and signature of the Head of Mission or a duly authorized functionary.

The MRE does not assume responsibility for any warehousing charges at the port.

To be admitted into Brazil, a vehicle must satisfy the specifications of the National Transit Council (Contran) pertaining to international safety and control standards, such as safety belts and chassis marks (pursuant to the Vehicle Identification Number-VIN code). It must also comply with the environmental norms established by the National Environmental Council (Conama) regarding the emission of polluting gases.

The MRE recommends that as they import their vehicles, the Diplomatic Missions should check with the manufacturers whether their vehicles are consistent with Brazilian standards.

The filled-out form handed in at the CGPI’s Documents Desk should indicate the functionary’s registration number. If the functionary has not been registered with the CGPI or DAC, he/she must register first before applying for authorization to import a vehicle.

After CGPI approval, two copies of the form will be returned to the Mission or Representation at the Documents Desk. In possession of the form, the functionary should order the vehicle’s shipment within six months.

Should the functionary desist from the purchase or exceed the six-month deadline, one copy of the original form should be returned to the CGPI for cancellation. Failure to do so will entail rejection of new applications.

2ND PHASE

After the vehicle’s shipment and the bill of lading and the commercial invoice are in the possession of the Mission or Representation, the form “Request for Customs Clearance-Entry (REDA-E)” should be filled out in four copies and returned to the CGPI Documents Desk.

A Request for a Specific Make/Model/Version Code (CAT) should also be filed. After this request is granted, the document should be retrieved at the Documents Desk and taken to the National Transit Department (Denatran) so that the CAT may be generated. In possession of the CAT, the Diplomatic Mission should attach a copy of it to the REDA-E to be presented to Customs.

All copies must be signed by the interested party and by the Head of Mission or Representation. Signature copies will not be accepted. All copies must have the Mission or Representation stamp on the verso, in the appropriate field, and the interested party’s full name must be written out or stamped below

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his/her signature. The same applies to the name of the Head of Mission or Representation. This document may not have any erasures.

Copies of the Lading Bill and the Commercial Invoice should be attached to the form’s copy.

All data pertaining to the vehicle must be provided and special attention should be given to the chassis number and to the color; the latter should be indicated in Portuguese. If the chassis number is incorrect, the vehicle will not be cleared at the landing port.

In the “Package Contents,” the vehicle’s price should be indicated in U.S. dollars or in euros, as well as the commercial invoice’s number and date. The data on the vehicle (make, model, year, color, and chassis number) must match those on the REDA-E.

The REDA-E will not be accepted if the information on the “Application for Authorization to Import a Vehicle”, the pro forma invoice, and the commercial invoice does not match the information on the REDA-E, particularly as regards the vehicle’s model and FOB price (without taxes).

Once the REDA-E is approved, three copies of it will be returned to the interested party at the Documents Desk. In possession of them, the interested party may proceed to clear the vehicle through customs with the Internal Revenue Service at the landing port.

9.1.2. Acquisition of Brazilian-made vehicles

The acquisition of Brazilian-made vehicles tax free (IPI and ICMS) requires the presentation of three copies of a filled-out form titled “Acquisition of Brazilian-made Vehicles with Exemption from the Tax on Industrialized Products.” In the “Name of the Mission, Agency, or Interested Party” field the name of the Diplomatic Mission or Representation must be entered, even in the case of vehicles for private use, as the interested party’s name and his/her registration number will be entered in the “Property of” field.

In the case of a vehicle for official use, in the “Property of” field should be entered the expression “Official Use.” The fields “Position, Function, or Qualification, “Arrival in Brazil,” “Communication to the MRE”, and “Communication Date” – which are fields for indentifying functionaries – should remain blank. In the case of a vehicle for private use, all fields should be properly filled out.

In the “Detran License in the State” field, the state where the vehicle will be driven should be entered.

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If the vehicle purchased is for the official use of the Mission or Representation no supporting legislation need to be cited on the back of the “Acquisition of Brazilian-made Vehicles with Exemption from the Tax on Industrialized Products” form. But if the vehicle is for private use, the interested party must indicate the legal basis on the document, as follows:

a) If the functionary wishes to acquire a Brazilian-made vehicle tax free instead of an imported vehicle, he/she should write the following: “In lieu of the right to import (Art. 161 of Decree-Law 37/66 and Art. 51, XII of Decree No. 4544).” In this case, the functionary may transfer the vehicle, tax free, after one year, and acquire another Brazilian-made vehicle or an imported vehicle;

b) If the functionary of a Diplomatic Mission intends to acquire a Brazilian-made vehicle tax free and preserve the right to import a vehicle, he/she should write the following: “ Pursuant to Law 5799/72 and to Art. 51, XIII of Decree No. 4544.” In this case, the functionary may transfer the vehicle tax free after one year but may not replace it by another tax free;

c) The functionary must indicate if the document pertains to the first acquisition of a Brazilian-made vehicle tax free or whether he/she has purchased a Brazilian-made or imported vehicle before. If so, he/she should indicate the pertinent application’s number and date. If the previously purchased vehicle has already been transferred, he/she must indicate the transfer’s number and date.

In the case of foreign experts or technical personnel, the legislation that supports the application should be cited, including the date of its publication in the Official Gazette (DOU), as well as the envisaged duration of their permanence in Brazil for the discharge of their mission.

All the notations on the back of the form must be signed by the interested party and by the Head of Mission or Representation, or by a foreign functionary authorized to sign on his/her behalf, and should display the Mission or Representation stamp.

It should be noted that career consular agents, representatives of International Organizations and their associates, and the Chiefs of Trade Offices accredited in Brazil must base their applications for the purchase of Brazilian-made vehicles, in lieu of the right to import on Art. 161, a of Decree-Law 37/66. The same applies to administrative functionaries of Diplomatic Missions, Consular Posts, and Representations of International Organizations, military attaché assistants, and foreign experts and technical personnel. Differently from the former, though, they cannot replace their vehicles purchased tax free.

After the CGPI’s approval, the first two copies of the form are returned at the Documents Desk to the interested party, who must present them to the

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Internal Revenue Service’s Regional Superintendence where the vehicle’s manufacturing company is located. This may be done by proxies or by the manufacturer’s dealer where the interested party lives.

The Internal Revenue Service’s Regional Superintendence will review the application approved by the CGPI and recognize the right to the tax exemption, as the case may be. After the request is approved, one copy of the form remains in possession of the Internal Revenue Service while the other copy is returned to the interested party, who should hand it over to the vehicle’s manufacturer.

Should the applicant desist from the purchase after the Internal Revenue Service’s review, the original copy of the form should be returned to the CGPI.

The invoice issued by the manufacturer should be presented to the pertinent Internal Revenue Service’s Regional Superintendence that has authorized the purchase, which will affix on it the stamp “Licensing Authorized,” so that the vehicle may obtain the license plates, pursuant to Contran Resolution No. 286/08.

It should be noted that the “Acquisition of Brazilian-made Vehicles with Exemption from the Tax on Industrialized Products” form is valid for 60 days after being approved by the CGPI to be presented to the Internal Revenue Service’s Regional Superintendence where the manufacturer of the vehicle to be purchased is located. Should the interested party desist from the purchase before presenting the form to the Internal Revenue Service or exceed the validity deadline of 60 days, the two original copies must be returned to the CGPI for cancellation of the application. Noncompliance with this requirement will entail rejection of new requests.

9.2. Licensing

Pursuant to the National Transit Council’s Contran Resolution No. 286 of July 29, 2008, the vehicle license plates referred to in Contran Resolution No. 231/07 and Contran Resolution No. 241/07 will have white characters on a blue background, and the numeric combinations will conform to the specific codes established by Renavam for the different states. On the upper middle, instead of a municipality identification, the following combinations will be displayed:

a) CMD – vehicles for the use of Heads of Diplomatic Missions and Special Delegations;

b) CD – vehicles belonging to Diplomatic Missions, Special Delegations, and diplomatic agents;

c) CC – vehicles belonging to Career Consular Posts and career consular agents;

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d) OI – vehicles belonging to Representations of International Organizations, International Organizations with main offices in Brazil, and their representatives;

e) ADM – vehicles belonging to foreign administrative and technical functionaries of Diplomatic Missions, Special Delegations, career Consular Posts, Representations of International Organizations, and International Organizations with main offices in Brazil; and

f) CI – vehicles belonging to foreign experts with no permanent visas, who come to Brazil under International Cooperation Agreements.

The vehicle’s registration, the issuance of the Registration Certificate, and the designation of the alphanumeric combination on the license plate will be done by the executive transit bodies in the states and in the Federal District against presentation of the authorization issued by the Ministry of External Relations’ Protocol.

The license plates and documents of vehicles from other states will be delivered through the Documents Desk to the pertinent Diplomatic Mission, which should forward them to the Consular Post or Trade Office for which they are destined. These license plates must be registered and installed by the state Detran.

Under Brazilian law, no vehicle may run without registration.

It is incumbent on the Diplomatic Missions, Consular Posts, and Representations of International Organizations to preserve the special license plates provided by the MRE and to keep them in good condition, and maintain their lettering legible.

9.2.1. Licensing of vehicles entitled to special blue plates with the letter combinations CMD, CD, CC, OI, ADM, AND CI

Vehicles purchased with tax exemption must be provided with special blue plates (pursuant to Contran Resolution No. 286/08) within 30 days after customs clearance (in the case of imported vehicles) or after the corresponding invoice is issued (in the case of Brazilian-made vehicles).

According to transit laws, no new vehicle may be driven for more than 48 hours without registration.

Each Diplomatic Mission is entitled to one CMD plate for the Head of Mission representation vehicle. In case there is no official vehicle for the use of the Head of Mission, he/she may request a CMD plate for his/her private use vehicle.

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After the documentation is presented to and reviewed by the CGPI, a blue license plate will be issued, with the letter combinations CMD, CD, CC, OI, ADM, OR CI, as the case may be.

The vehicle document will be issued only after payment of the DPVAT (compulsory insurance), which should be done at the time of licensing.

Every year the vehicle’s owner must submit to the CGPI a copy of a third party liability insurance, which must be annually renewed (insurance policy or insurance proposal together with proof of payment).

REGISTRATION/LICENSING

For registration and licensing, the following documents must be presented:

a) Two copies of the form “Renavam – Motor Vehicle Registration – Blue Plate,” (front and back)

b) Copy of the MRE identity card and CPF, in case of private vehicle;

c) Copy of the CNPJ of the Diplomatic Mission, Consular Post, or International Organizations (including in the case of private vehicles);

d) Brazilian-made vehicle: original and copy of the vehicle’s invoice, with the Internal Revenue Service’s stamp authorizing licensing;

e) Brazilian-made vehicle with a change from gray to blue license plate: original of the “Single Transfer Document (DUT)” issued by Detran;

f) Imported vehicle: original and copy of the CAT issued by Denatran and copy of the Importation Declaration and the Declaration Statement;

g) Copy of third party liability insurance policy (policy or insurance proposal with proof of payment); and

h) Label of the chassis decal affixed to the “Renavam” form.

9.3. Sale and transfer of vehicles

Vehicles acquired tax free cannot be transferred, put up for sale (at auctions, for instance) or ceded under any arrangement, unlicensed, donated, or ceded for the use of third parties without prior authorization from the MRE and the Internal Revenue Service, under penalty of the vehicle’s seizure and forfeit (IN/SRF No. 338/2003, Art. 11). Any fines must also be paid before any transaction may be completed.

Under current legislation, vehicles for official or private use may be transferred tax free according to the following timeframe:

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a) After one year, in the case of Brazilian-made vehicles, as of the date the Internal Revenue Service affixes on the invoice its stamp authorizing licensing; and

b) Three years, in the case of imported vehicles, as of the date of their clearance through Customs.

The MRE may allow longer periods, subject to reciprocity.

Earlier transfers are authorized only in case of the involved functionary’s transfer. In this case, there are three possibilities:

a) The vehicle’s reexportation, with tax exemption (REDA-S);

b) Sale to another privileges and immunities holder, tax free; and

c) Sale to others than privilege holders, subject to payment of the pertinent taxes to be assessed by the Internal Revenue Service taking into consideration the vehicle’s depreciation, as follows:

- Earlier than 12 months: 0 percent exemption;- Between 12 and 24 months: 30 percent exemption;- Between 24 and 36 months: 70 percent exemption;- After 36 months: 100 percent exemption.

9.3.1. Simple transfer of Brazilian-made vehicles

Simple transfer is the procedure followed for transferring (selling) a Brazilian-made vehicle purchased tax free, after the deadline set for Brazilian-made vehicles, free of taxes, for a non- privileges holding buyer.

Should the owner be transferred before expiration of the one-year deadline, he/she should ask the Internal Revenue Service (Taxation Division) to assess the taxes due and pay them. A foreigner functionary has the option of selling the vehicle to another privilege holder or to export it with tax exemption.

Application for simple transfer should be in the form of three copies of the form for “Vehicle Transfer (Sale) and Unlicensing” (Form 4).

The form should be handed in at the Documents Desk together with the original DUT (verso filled out). After CGPI’s notarization of the signature on the DUT and the granting of authorization to sell, the two copies of the form will be forwarded to Detran, together with the DUT. In the case of vehicles belonging to Consular Posts and their functionaries, the document will be returned at the CGPI Desk.

The CGPI will issue the authorization so that the buyer may purchase the grey license plate with the same alphanumeric combination as the blue license plate. At the time of unlicensing, the buyer should accompany the Diplomatic

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Mission’s functionary and present his/her documents and the grey license plate to Detran, which will proceed to the new licensing.

Should the transfer be aborted for any reason, the fact should be notified to the CGPI by Verbal Note, which should be handed in at the Documents Desk, together with the two original copies of the form for cancelling.

9.3.2. Transfer of imported vehicles

Simple transfer is the procedure followed for transferring an imported car purchased duty free, after three years of Customs clearance, tax exempt for other than a privilege holder or for the owner himself/herself (when the owner cannot find a buyer but needs to release the vehicle from obligations to the Internal Revenue Service).

In the case of private use vehicles, the simple transfer before the deadline for becoming free of tax obligations may be authorized, subject to a Verbal Note from the Mission or Representation confirming the termination of the functionary’s functions and the likely date of his/her definitive departure from Brazil. In such case, the taxes applicable to the premature sale must be paid. Otherwise, the foreign functionary may also transfer the vehicle to a privileges holder or reexport it tax free.

The simple vehicle transfer procedure has two phases:

1ST PHASE

In the first phase, the interested Party submits three copies of the “Transfer Authorization Request” (SAT), to be handed in at the Documents Desk.

Once the CGI has granted authorization, two copies of the form will be returned to the interested party at the Documents Desk to be presented to the Internal Revenue Service, Customs Inspection Section (SAFIA) at the Terminal de Carga do Aeroporto Internacional de Brasília, Tel.: 3365-1999, which will take steps to further the transfer request. This process consists of the following stages.

1. Delivery of the following Internal Revenue Service Protocol documents in the lobby of the Brasilia International Airport:

a) Two SAT copies;

b) REDA-E;

c) Copy of the Proof of Importation and of the Internal Revenue Service’s Importation Statement; and

d) Copy of the Bill of Lading.

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2. Presentation of the vehicle to the Internal Revenue Service for inspection

3. Publication of the Declaratory Act (document that releases the vehicle from obligations toward the Internal Revenue Service) in the Official Gazette (DOU).

Should the transfer fail for any reason, the MRE should be notified accordingly by Verbal Note, which should be delivered at the Documents Desk, together with the two original copies of the form, for cancellation of the request. Should the Internal Revenue Service have already started the transfer process and be in possession of the respective forms so that the interested party cannot return them to the CGPI, the fact should be communicated by Verbal Note, which should also request cancellation of the request with the Internal Revenue Service. This Verbal Note should be handed in at the Documents Desk.

2ND PHASE

In possession of the Declaratory Act published in the Official Gazette (DOU), the interested party should start the second phase of the simple vehicle transfer process, which consists in the presentation of three copies of the Form 4 – “Vehicle Transfer (Sale) and Unlicensing.”

The form should be handed in at the CGPI Documents Desk with a copy of the Declaratory Act published in the Official Gazette and a copy and the original of the vehicle’s DUT.

After approval, the unlicensing process will follow the same procedure required for Brazilian-made vehicles.

9.3.3. Transfer of Brazilian-made vehicles to other than privilege holders

The transfer of Brazilian-made vehicles between privilege holders requires the presentation of three copies of Form 3 – “Transfer of Brazilian-made Vehicle.”

The form should be handed in at the CGPI Documents Desk with the original and a copy of the DUT.

After approval of the application by the CGI, two copies of the form will be returned to the requesting Mission or Representation at the Documents Desk. The interested party should present the form with the first copy of the invoice with the stamp of the Internal Revenue Service showing the licensing authorization (usually on the verso). The Internal Revenue Service Regional Office where the interested party lives will then further the transfer process.

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After the Internal Revenue Service Regional Office issues the transfer document to the new owner, the applicant will submit the licensing request.

In the case of transfer between privileges holders, unlicensing is not necessary. However, the issuance of a Property Registration Certificate in the name of the new purchaser is obligatory. To this end, the licensing procedure described earlier shall apply. In the case of transfer between privileges holders of different categories, the change of license plates will be necessary.

Should the transfer fail for any reason, the MRE should be notified accordingly by Verbal Note to be delivered at the Documents Desk together with the first three originals of the “Transfer of Brazilian-made Vehicle” form, for cancellation of the application.

9.4. Replacement in case of accident

In case of duly proven theft or accident entailing total loss, the CGPI may authorize the vehicle’s replacement. However, the stolen or crashed vehicle will not be exempt from tax payments if the deadlines before which the vehicle could not be sold have not been reached yet.

For this reason, it is recommended that the Missions and Representations insure their vehicles based on the market value to make sure that all expenses will be covered, including the payment of taxes in case of accident.

9.5. Cancellation or misplacement of documents

The Missions and Representations should notify the MRE of the cancellation of any request submitted to the CGPI, by Verbal Noted, to which the pertinent originals should be attached.

The cases of theft, loss, or withholding of documents by third parties or any other irregularity should be promptly communicated to the MRE, also by Verbal Note.

9.6. Vehicle accident resulting in total loss

If the vehicle is involved in an accident resulting in total loss, this should be communicated by Verbal Note accompanied of the pertinent police report.

In such cases, duly corroborated, the CGPI may authorize the vehicle’s replacement. However, a stolen or crashed vehicle will not be exempt from tax

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payments if the deadlines before which the vehicle could not be sold have not been reached yet.

For the period of three years after importation and of one year after the purchase of a Brazilian-made vehicle, the Mission or the foreign functionary will remain entitled to the benefit granted earlier in connection with the vehicle that has now suffered an accident or been stolen. Thus, they cannot claim another exemption, unless they make the tax payments.

The assessment of such tax payments will be based on the price entered in the Importation Declaration (ID), as this is the price adopted by the law for the payment of taxes on normal property transfer before the elapsing of the periods set by the legislation (one year and three years). The calculation will take into consideration the reduction percentages (depreciation) as a result of the time elapsed between importation or acquisition and the tax payment. It is thus recommended that the vehicle be insured for its market value.

The procedure in this case is the same as for vehicles that have not been involved in an accident or stolen, and the name of the insurer should be given as the vehicle’s “purchaser.”

9.7. Vehicle exportation

If a foreign functionary wishes to take along his/her vehicle free of taxes when leaving the country, he/she should apply for its exportation.

The request for exporting the vehicle should be presented in four copies of the REDA-S form, the first copy of which is yellow.

The form should be handed in at the CGPI Documents Desk with a copy of the Verbal Note communicating the functionary’s departure.

Exportation requests will be granted only for vehicles whose situation before the CGPI and Detran is regular.

The interested party, in possession of the REDA-S, should appear at Detran for unregistering and unlicensing the vehicle.

In the case of vehicles that will leave Brazil over land and that must thus keep their license plates until they reach their destination, to the REDA-S should be attached, in addition to a Verbal Note communicating the functionary’s departure and providing information on the vehicle being exported (make, model, year, and chassis and license plate numbers), as well as requesting permission to return the special license plates later. In such case, after the

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vehicle has been unregistered at Detran, the REDA-S should be handed over to the Internal Revenue Service at the last customs post on the Brazilian border.

9.8 Traffic violations

Fines for traffic violations incurred by private and official vehicles of foreign Missions in Brazil must be paid. In view of the Contran Resolution No. 286/08 that regulated the inclusion of the diplomatic and consular fleet in the National Motor Vehicles Register (Renavam), the payment of fines incurred is a sine qua non for vehicles to be granted each year the Certificate of Vehicle Registration and Licensing (CRLV). Unpaid fines could impede the sale of the vehicle later on.

The owners of official and private vehicles in the diplomatic and consular fleet may, if they so wish, appeal the fines imposed. In this case, there are three levels of appeal:

a) First, prior defense may be raised before Detran;

b) Secondly, if this first attempt fails, appeal could be made to the Violation Proceeds Administrative Board (JARI); and

c) If the fine is not cancelled, it is still possible to appeal to the Federal District Transit Council (or to the Transit Council of the state where the fine was imposed).

9.9. Legal references

1. Decree No. 6.759 of February 5, 2009.

2. Decree-law No. 37 of November 18, 1966.

3. Decree No. 4.544 of December 26, 2002.

4. Law No. 5.799 of August 31, 1972.

5. Normative Instruction SRF No. 338 of July 7, 2003.

6. Resolution Contran No. 286 of July 29, 2008.

7. Resolution Contran No. 332 of September 28, 2009.

8. Directive DNC No. 23 of June 6, 1994.

9. Directive DNC No. 47 of December 6, 1994.

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10. TAX EXEMPTION

In accordance with the Vienna Conventions (VCDR, Art. 34 and VCCR, Art. 32), the Reciprocity Principle, and current legislation, Brazil accords the Representations of Foreign States exemption from federal, state, and municipal taxes and dues.

10.1. Urban Real Property Tax, Trash Collection Fee, and Public Lighting Contribution

The Urban Real Property Tax (IPTU) is a municipal tax. Exemption from this tax is granted solely to a foreign Government’s real property used as seat of Diplomatic Missions and Consular Posts. The equally municipal Trash Collection Fee (TLP) and the Public Lighting Contribution (CIP) may be levied as they are considered charges for “specific services rendered (VCDR, Art. 34, e).”

To claim exemption from IPTU, Missions located in the Federal District should submit the pertinent form duly filled out to the MRE, which will confirm the entitlement. Consular Posts and Representations of International Organizations located outside the Federal District should send the CGPI, through their Embassies, a Verbal Note requesting a Declaration of Reciprocity pertaining to this or to a similar tax. In case reciprocity prevails, the Declaration is prepared and the interested party should submit it to the respective Municipal Revenue Department.

In the Federal District, under the current legislation on the matter (Decree No. 3521 of December 28, 1993; Decree No. 15601 of April 28, 1994; and Decree-Law No. 82 of December 26, 1966), Foreign States are exempted from paying IPTU on their properties used as seat of their Diplomatic Missions (Chanceries and the Head of Mission’s Official Residence), provided the same benefit is accorded the Brazilian Government in reciprocity.

Should the Diplomatic Missions receive IPTU bills pertaining to the property of foreign Governments, these bills should be sent to the MRE, which will take the appropriate measures to ensure their exemption with the Municipal Revenue Departments.

Leased property and land with leisure facilities of Diplomatic Missions are not exempted from the IPTU. It should be noted that in the case of leased property IPTU payments are incumbent upon the landlord, although many lease contracts shift this obligation to the lessee.

In the Federal District, in addition to the IPTU and in accordance with current legislation (Law 4022 of September 28, 2007 and Decree No. 23499 of

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December 30, 2002), exemption is also granted, subject to reciprocity, from the TLP and the CIP due on real property belonging to a foreign Government. To claim this benefit, Missions located in the Federal District should send the pertinent form duly filled out to the MRE, which will verify the entitlement.

10.2. State Sales Tax (ICMS)

The tax on operations related to the movement of merchandise and the provision of interstate and intermunicipal transportation (ICMS) is a state tax, i.e., only states and the Federal District may levy it (see Art. 155, II of the Federal Constitution).

The ICMS’s main generating factor is the movement of goods, even when this movement begins abroad. Subject to reciprocity, the ICMS levied on telecommunications, electricity, fuel and building materials for expansion and remodeling of foreign Mission facilities may be reimbursed. This will depend on the current legislation of each state.

A) ELECTRICITY AND TELECOMMUNICATIONS SERVICES

On December 7, 1994, Convênio ICMS no. 158/94-Confaz [ICMS Agreement] authorized the states to grant permanent ICMS exemption on the supplying of electric power and telecommunications services to Diplomatic Missions, Consular Posts, and Representations of International Organizations. This exemption is subject to reciprocal tax treatment as verified by the MRE.

In 1995, the Brazilian states incorporated Convênio ICMS No. 158/94 into their internal legislation, and the exemption of this tax for Consular Posts and Representations of International Organizations was left to the State Revenue Departments or to the local power and telecommunications companies.

In the Federal District specifically, the ICMS Agreement was incorporated into the local legislation by Decree No. 16371 of March 24, 1995 and since then the Federal District Revenue and Planning Department and the MRE have worked together to ensure the granting of this benefit to all Diplomatic Missions, Consular Posts, and Representations of International Organizations.

To claim this benefit, the Missions located in the Federal District must provide the MRE, by Verbal Note, with the following:

a) The beneficiary’s CPF (or CNPJ, if the Mission is the beneficiary);

b) Copy of the functional identity card issued by the CGPI, if the beneficiary is a functionary;

c) Numbers of fax, telephone, and power meters used by the Chanceries and Official Residences of Heads of Mission and accredited functionaries;

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d) Copies of electricity and telephone bills of the functionaries of the Diplomatic Mission or Representatives and Associate Representatives (if foreigners) of International Organizations (if permanent);

e) Address of where the power meter is located and, in the case of telecommunications, the residential address of the beneficiary (even when the bill is paid by the Mission); and

f) In case of leased property and the bill is in the name of the proprietor, it is enough to provide a copy of the first page of the lease contract with the names of both lessor and lessee.

For Missions located other than in the Federal District, the benefit may be claimed two ways:

1. In the states of Rio de Janeiro, São Paulo, Paraná, and Rio Grande do Sul, the exemption may be requested directly from the State Revenue Department, which will verify reciprocity and forward the request to the companies; and

2. In the other states, a Reciprocity Treatment Declaration should be requested from the CGPI for claiming exemption from this tax. In possession of this declaration, the Mission should address itself to the State Revenue Department to further the exemption claim.

If in case of delays in the processing of the exemption claim the bills pertaining to the months subsequent to the request still charge the tax – this applies only to Missions located in the Federal District – reimbursement of the ICMS may be claimed. To request reimbursement of ICMS payment on electricity or telecommunications, the Mission should send the CGPI the following:

a) A Verbal Note indicating the CPF or CNPJ;

b) Copy of the CGPI identity card, in the case of a functionary;

c) A “Request for Tax Reimbursement” form duly filled out on a typewriter or computer, without erasures, with the name of the applicant below his/her signature, and the Mission stamp;

d) The original bills with proof of payment. In the case of automatic debit on a bank account, the bank statement should be attached; and

e) A separate stack of copies of all the documents cited.

B) FUEL

The reimbursement of ICMS levied on the purchase of fuel for passenger cars belonging to Diplomatic Missions, Consular Posts, and Representations of International Organizations of a permanent nature and their foreign functionaries is contemplated only in the Federal District (Convênio ICMS No. 34

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of July 6, 2001). Currently it applies to a monthly limit of 250 liters for each private use vehicle and of 400 liters for each official use vehicle.

To claim this benefit, the interested party should provide the CGPI with the following:

a) A Verbal Note indicating the CPF or CNPJ;

b) A duly filled-out “Request for Tax Reimbursement” form, without erasures, showing the name of the applicant under his/her signature and the Mission stamp. The Revenue Department requires that the digit identifying the bank branch be entered (for example: 1503-2)

c) A form demonstrating the purchases of fuel for the month and for each vehicle, specifying the type of fuel, and with all fields filled-out. Amounts should not be rounded off;

d) The original receipts of fuel payment showing the name of the vehicle’s owner, the name of the Mission, the license plate number, the exact quantity of liters, the type of fuel, the unit price and the total amount; and

e) Copies of the abovementioned documents, together with the originals.

As determined by the Federal District Revenue Department, global invoices, invoices from other than the Federal District or invoices with the license plate number or the owner’s name written with a pen or in handwriting different from that of the other data or receipt or statement or reimbursement claim with erasures will not be accepted. The Federal District Revenue Department has further requested that reimbursement claims be submitted each quarter or each time expenses for each vehicle reach R$1,000.00.

Only requests of reimbursement of ICMS paid on fuel purchases for vehicles registered with the CGPI will be accepted, and the time for processing requests of reimbursement is entirely up to the Federal District Revenue Department.

C) BUILDING MATERIALS

The reimbursement of the ICMS levied on the purchase of building materials for the construction, expansion, or remodeling of property used by foreign Missions in Brazil is contemplated by Convênio ICMS No. 34/01. As regards building materials, in addition to the reimbursement of the ICMS levied on them, the reimbursement of the IPI levied on such materials is also contemplated (SRF Normative Instruction No. 151 of December 21, 1999 and Decree No. 4544 of December 26, 2002).

The procedure for claiming this benefit is the same as for the reimbursement of the ICMS levied on electric power or telecommunications

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(Verbal Note, form, and invoices, both originals and copies). After these documents are returned by the revenue Department, the original should be submitted to one of the Internal Revenue Service offices for reimbursement of the IPI levied. It should be noted that to benefit from reimbursement, the invoices must be in the name of the foreign Mission.

10.3. Inter Vivos Transfer (ITBI)

Exemption from this tax applies to the transfer of real property acquired by foreign Governments and is regulated in the Federal District by District Law 1 of December 29, 1988 and by Chapter II, Art. 4 of District Law 16114 of December 2, 1994.

10.4. Motor Vehicle Tax (IPVA)

This is an annual tax levied on the licensing of any motor vehicle by the National Transit Department (Denatran). Exemption from this tax is automatic for vehicles with special license plates (CMD, CD, CC, OI, ADM or CI). For vehicles with common license plates, exemption is granted on the basis of an appropriate form.

10.5. Tax on Financial Transactions (IOF)

This is a tax levied on credit, exchange, and insurance transactions as well as on securities. It is a federal tax from which Missions accredited in Brazil are exempted, subject to reciprocity.

10.6. Airport tariffs

Subject to reciprocity, exemption from airport tariffs (landing, permanence, and other use tariffs) is granted foreign military or government aircraft using Brazilian airports. Also subject to reciprocity, bearers of diplomatic passports accredited to the Brazilian Government, or foreign passengers in transit are exempt from the boarding fee in Brazil’s major airports.

In this regard, a list of countries that are entitled to this benefit based on reciprocity is sent the competent bodies (Infraero and ANAC). A diplomatic passenger should purchase his/her ticket directly from an airline without paying the boarding fee and then go to the Infraero desk at the airport to confirm the right to the exemption. A bearer of diplomatic passport who is exempt from this boarding fee needs Infraero’s authorization to board.

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11. BRASILIA INTERNATIONAL AIRPORT

11.1. Parking

At the time this Manual was being prepared, four parking spaces (two in the departure area and two in the arrival area) were reserved at the Juscelino Kubitschek International Airport for vehicles with diplomatic license plates, which could park for free.

11.2. Access to restricted areas

To request access to special areas for receiving authorities, the Mission should send a Verbal Note to Protocol providing the following information: name of the diplomatic agent or authority to be met, flight number, date and time of arrival and name of the functionary that is to meet the diplomatic agent or authority. Protocol will send a letter to the Federal Police accordingly. A permanent accreditation is not necessary. The number of functionaries authorized to have access to the special areas, subject to reciprocity, is limited.

USEFUL TELEPHONES

Airport Security Superintendent:(61) 3312-3148(61) 3312-3394 (fax)

Federal Police (Brasilia International Airport): (61) 3364-9203(61) 3365-3414 (fax)

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12. COMMUNICATIONS

12.1. Installation of radio communication transmitters

Both Vienna Conventions (VCDR, Art. 27 and VCCR, Art. 35) provide that Diplomatic Missions and Consular Posts have freedom of communication for official use and the receiving State must recognize and protect this prerogative. However, the Missions should secure the receiving State’s consent for the installation of any type of radio communication transmitter, satellite repeater stations, or antenna.

In Brazil the MRE forwards the request for permission to install and use the requisite equipment to the Ministry of Communications, which is the Federal body responsible for reviewing and approving the technical requirements and specifications presented by the Diplomatic Mission, Special Delegation, Consular Post, or Representation of International Organizations.

12.2. Diplomatic Pouch

Pursuant to Art. 27, para. 3 of the VCDR and to Ar. 35 of the VCCR, the diplomatic or consular pouch may not be opened or withheld and must be properly identified and include only diplomatic documents and objects destined for the Mission’s official use. Art. 35, para. 7 of the VCCR establishes that the Consulate may send one of its members to take possession of the pouch directly and freely from the captain of the aircraft or ship that transports it.

Art. 26 of the VCDR and Art. 34 of the VCCR reserve to the receiving State the right to preserve zones entry into which is prohibited or regulated for reasons of national security. In Brazil the control and administration of bonded areas is incumbent upon the Internal Revenue Service pursuant to the following legislation:

a) SRF Directive No. 329 of April 5, 1973;

b) Decree No. 91030 of March 5, 1985 – Customs Regulations;

c) Decree-Law 37 of November 18, 1966 – Import Duty; and

d) SRF Normative Instruction No. 109 of September 14, 1998 – Clearance of Diplomatic Pouches.

The above legislation disciplines the entry into bonded areas for the discharge of functions connected with the inspection and clearance of accompanied baggage and the reception of passengers.

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13. REAL PROPERTY

13.1. Real estate acquisition and leasing

Art. 21 of the VCDR and Arts. 2, 3, and 4 of the VCCR establish that the receiving State should facilitate the acquisition and installation of Diplomatic and Consular premises on its territory but stress the obligation to consult the receiving State’s prior authorization for acquisition and localization of such premises.

Current Brazilian legislation establishes that foreign Governments in Brazil may own only property to be the seat of their Diplomatic Missions, Consular Posts, and International Organizations (paras. 2 and 3 of Art. 11 of Decree-Law 4657 of September 4, 1942, Law on the Introduction of the Civil Code-LICC). As regards specifically the Federal District, the Brazilian Government, so as to facilitate the installation of foreign Missions in the new Capital, temporarily lifted the restrictions of the abovementioned Decree-law. Indeed, Law 4331 of June 1, 1964, which was in force until June 30, 1977, exceptionally permitted the acquisition by foreign Governments of real property in the Federal District as residences of diplomatic agents and members of their respective Diplomatic Missions, subject to prior MRE authorization.

Accordingly, the establishment of seats of Diplomatic Missions (Chancery and Residence), Consulates, and foreign Trade Offices on Brazilian territory, as well as the leasing, acquisition, and localization of real property for such purpose are subject to prior MRE authorization.

As regards the opening of Trade Offices in the states the procedure is the same and such Offices must be directly connected to a Consulate, if any, or to the Diplomatic Mission in Brasilia. Their functionaries will be entitled to the same privileges and immunities as consular functionaries.

13.2. Donation and cession of land for the seat of a Diplomatic Mission

Subject to availability in the South and North Embassy Sectors in Brasilia, the donation of a lot to a foreign State with which Brazil maintains diplomatic relations is possible under the provisions of Law 6294 of December 15, 1975, on the condition that the donee, as a gesture of liberality, makes or commits itself to make the donation of real property to Brazil.

On the donated land and subject to the applicable municipal norms, the sending State may build, at its own expense, the premises destined as seat of the Mission, for the functioning of the Embassy services, and as residence or lodging

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of its diplomatic, technical, and administrative personnel who are in Brazil on a permanent, temporary, or occasional mission.

Diplomatic Missions interested in negotiating the exchange of lots should send a Verbal Note to the CGPI, as it is incumbent on the MRE to broach the requisite negotiations so as to ensure that the transaction occurs in a proper form and according to Law 6294.

If the sending State’s legislation does not contemplate the donation in perpetuity of land to another country, the Brazilian legislation permits cession of the land at use for a given, renewable period, gratuitously or under special conditions, to ensure reciprocity.

The cession of land is done in accordance with Law 9636 of May 15, 1998, which authorizes the Executive to cede federal property to legal entities, based on public or social interest. In this case, cession conditions must be established in a Memorandum of Understanding between the parties.

13.3. Procedures for construction work at the seat of Diplomatic Missions, Special Delegations, and Representations of International Organizations in Brasilia

For construction work or makeover at the sites destined for their respective seats in Brasilia, Diplomatic Missions, Special Delegations, and Representations of International Organizations must follow the procedures established by the applicable legislation, as follows:

I - Construction and makeover works must be under a Technical Person (RT)’s responsibility. To entrust the makeover project to a Technical Person, a “Registration of Technical Responsibility (ART)” must be filed with the Federal District’s Regional Engineering and Architecture Council (CREA-DF, located at SGAS 901, Conjunto D, Asa Sul), with a brief description of the professional engineering, architectural, and agronomic activities pertaining to all contracts for the execution of works, projects, or services related to these professions.

II - Construction work in urban or rural land, public or private, according to the Brasilia Regional Administration RA-I may be started only after a construction license or permit is obtained. Art. 51 of District Law 2105/98, Federal District Building Code, sets the following conditions for obtaining a building or construction license or permit:

Paragraph 1. Original construction, alteration works that increase or decrease the area and alteration works without area increase, with structural changes are licensed through the issuance of a building permit.

Paragraph 2. Alteration works without area increase and without structural changes are automatically licensed at the review time or on the

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occasion of approval of the alteration project and a new construction permit will not be required.

Paragraph 3. Temporary edifications, demolitions, works, and worksites that occupy public areas are subject to a license.

III - Diplomatic Mission projects entail shared responsibility and thus, as determined by the Brasilia Regional Administration RA-1, are subject to review (see VI) according to the following criteria:

a) Urbanistic (use, construction fee, minimum separation spacing, number of floors, maximum height, occupation rate, usefulness coefficient);b) Accessibility; andc) Parking, garage, and number of parking spaces.

IV - Application to the Brasilia Regional Administration RA-1for the architecture project, original construction, demolition, alteration, and substitution of project in urban areas as defined by the legislation on land use and occupation requires the presentation of the following:a) At least two copies of the architectural project signed by the owner and the architect, approved by prior consultation with the Federal District Military Firemen Corps (CBMDF), if required under specific legislation; b) A copy of the “ART” project filed with CREA-DF; andc) A copy of the architectural project or preliminary study subject to prior consultation.

V - The following works located within the lot boundaries, according to Art. 33 of District Law 2105/98, are exempt from presentation of a project and of licensing:

a) Modest passageway;b) Wall, except for supporting wall;c) Guard booth consisting of one structure, with a maximum of six square meters of built area;d) Guard booth consisting of two structures interconnected or not by a passageway, with a maximum of four square meters of built area per unit;e) Shelter for pets with a maximum of six square meters of built area;f) (NA)g) Work site that does not occupy public areas;h) Urbanization work within the lot boundaries, subject to the land use and occupation norms;i) Painting and finish of external and internal surfaces;j) Replacement of decorative elements and window and door frames;k) Protection rails on uneven terrain;l) Replacement of roof tiles and roof supporting elements; andm) Repairs and replacement of services installations.

Pursuant to Paragraph 2 of Art. 33, works referred to under items X, XI, XII, and XIII are those that:

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I - Do not alter or require reinforced concrete, metal, or wooden structures, trellis, or girds;

II - Are not done on facades within the lot boundaries or projections;

III - Do not entail expansion of the built area; and

IV - Do not hinder ventilation and lighting and other technical requirements.

The legislation, addresses, and contacts of the agencies cited can be accessed on the CGPI site: www.cgpi.mre.gov.br.

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14. LABOR RELATIONS – LOCAL CONTRACTS

14.1. Jurisdictional immunity

The Brazilian Judiciary does not recognize the jurisdictional immunity of foreign States as regards management acts, such as locally established labor relations. Art. 114 of the Federal Constitution establishes that “it is incumbent on the Labor Judiciary to judge: I – lawsuits stemming from labor relations, including those connected with external public law entities …”

Similarly, international practice is consolidating the idea that the norms of the country where the worker is located apply to locally established labor relations. Examples worth citing, among others, are the 1972 European Convention on State Immunity, the 1976 U.S. Foreign Sovereign Immunity Act, and the 1978 United Kingdom State Immunity Act.

Moreover, it should be stressed that Art. 33, para. 3 of the Vienna Convention on Diplomatic Relations and Art. 48, para. 3 of The Vienna Convention on Consular Relations determine the obligations which the social provisions of the receiving State impose upon employers should be observed in relation to local employees. The two Conventions further determine that without prejudice to their privileges and immunities, it is the duty of all persons enjoying such privileges and immunities to respect the laws and regulations of the receiving State (VCDR, Art. 41, para. 1 and VCCR, Art. 55, para. 1).

A large number of labor lawsuits involving foreign States could be avoided by compliance with local legislation. The MRE thus urges the Diplomatic Missions and Special Delegations accredited to the Brazilian Government to accord their locally contracted employees the rights granted them under the Consolidated Labor Legislation (CLT, Decree-Law 5452 of May 1, 1943), such as payment of the thirteenth monthly salary, remunerated annual vacation, and contribution to Social Security and to the Severance Pay Indemnity Fund (FGTS).

14.2. Labor lawsuits

If no representative of Diplomatic Missions and Consular Posts attend court hearings related to lawsuits brought against foreign States, the cases will be judged in absentia. Although the Diplomatic Mission or Consular Post may preliminarily decide to invoke immunity, it would be highly advisable for it to defend itself ad cautelam on merit. Itamaraty thus emphatically recommends that Diplomatic Missions and Consular Posts attend such hearings and abide by the decisions handed down by the Courts in labor cases.

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The MRE further reminds Diplomatic Missions and Consular Posts that owing to the separation of powers principle embodied in Art. 2 of the 1988 Federal Constitution (CF), the Executive is barred from any engaging in any initiative susceptible of being interpreted as interference with the attributions of another Branch.

14.3 Consolidated Labor Legislation

Some of the major rights of workers under the Consolidated Labor Legislation, which are often violated by Diplomatic Missions and career Consular Posts and give rise to a large number of labor lawsuits, are listed below. Further information may be obtained from the Urban Employer’s Manual for Embassies and International Entities in Portuguese, English, Spanish, and French on the CGPI site: www.cgpi.mre.gov.br.

A) ENTRIES IN THE WORKER’S BOOK AND REGISTRATION WITH SOCIAL SECURITY

Mandatory for any kind of employment.

B) OBSERVANCE OF THE WORK LOAD

A normal worker’s shift is in general eight hours a day and 44 hours a week (CLT, Art. 58; CF, Art. 7, XIII). Exceptionally, the daily shift may be lengthened by a maximum of two hours of overtime. This requires a written agreement between employer and employee. The agreement should indicate the remuneration per hour of overtime, which must be higher than one hour of normal shift by at least 50 percent (CLT, Art. 59, para. 1).

C) OVERTIME PAY

An increase of at least 50 percent on the payment for one hour of the normal shift (CLT, Art. 59, para. 1).

D) REST BREAKS

During any work shift lasting over six hours the granting of a break of at least one hour for rest or eating is mandatory, which save for a written agreement or collective bargaining to the contrary, may not exceed two hours. This break is not computed as part of the work shift (CLT, Art. 71).

E) EQUAL PAY

The Federal Constitution prohibits differentiated salaries for the same functions and recruiting criteria based on gender, age, color, marital status, as

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well as any salary discrimination against the handicapped (CF, Art. 7, XXX and XXXI).

F) CHRISTMAS BONUS OR THIRTEENTH MONTHLY SALARY

An employer must pay employees the first installment of the thirteenth monthly salary (equivalent to half the monthly pay) between February and November 30 of each year and the second installment by December 20, taking the remuneration due in this month as the basis. There is no obligation to pay the first installment to all employees at the same time (Art. 2 of Law 4749 of August 12, 1965). Employees may receive the first installment of the thirteenth monthly salary together with their vacation payment, provided they request it in January of the same year.

When a labor contract is rescinded, the thirteenth monthly salary should be paid the employee in proportion to the work period – 1/12 (one twelfth) for each month the employee has worked, fifteen or more days being counted as one month.

Cases in which the employee is entitled to the thirteenth monthly salary:

a) Unjustified termination;

b) Resignation; and

c) Expiration of fixed term contract.

G) VACATION

Employees are entitled to vacation after having worked 12 months (entitlement period).

Timeframe for granting vacation – An employer must grant employees vacation within the 12 months following the entitlement period. The timing of vacation time will be determined as it best suits the employer’s interest, provided the timeframe is observed (CLT, Art. 136). Members of one family who work for the same employer are entitled to taking their vacation at the same time, provided it is not disturbing the work.

Vacation period – The employee must be advised of his/her vacation period at least 30 days in advance (CLT, Art. 135). Vacation pay must be made no later than two days before vacation starts (CLT, Art. 145) against receipt in the amount of the employee’s remuneration, plus one third (CF, Art. 7, XVI).

Vacation bonus – An employee may convert one third of his/her vacation period into a vacation bonus. Thus, if an employee is entitled to 30 days of

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vacation, he/she may take 20 days of vacation and exchange the remaining 10 days for a cash payment (CLT, Art. 143). To receive this benefit, the employee must advise the employer accordingly at least fifteen days before completing the 12-month entitlement period (CLT, Art. 143, para. 1).

Granting of vacation outside the timeframe – If vacation is granted after the 12-month entitlement period, the employer is obligated to double the employees’ vacation remuneration (CLT, 137, para. 1).

Collective vacation – An employer may grant collective vacation to all employees or just to one sector, subject to notification to the Ministry of Labor and Employment’s local agency and to the pertinent unions, as well as affixing said notification at the workplaces at least 15 days in advance (CLT, Art. 139 ff).

Vacation payment when work contract is rescinded – A vacation payment must have of one third of the total amount added to it (CF, Art. 7, XVI). The employee is entitled to receiving the amount corresponding to the vacation earned if his/her work contract is rescinded for any reason. The indemnity shall be equal to the salary in force at the rescission time. This amount may be single our double (CLT, Art. 146). If rescission of the contract occurs during the 12 months following the entitlement period, the employee shall receive one monthly salary. If rescission occurs in the 12 months following the entitlement period, the employee shall receive two monthly salaries.

Proportional vacation – If the rescission of the contract occurs during the entitlement period, the employee will have the right to a vacation indemnity proportionate to the number of months worked (CLT, Art. 147).

H) STABILITY

Work accident – An employee who is a victim of a work accident is entitled to maintaining his/her work contract for at least 12 months after termination of the disability compensation owing to the accident, independently from the disability compensation ( Art. 118 of Law 8213 of July 24, 1991).

Pregnancy – Arbitrary or unjustified dismissal of a pregnant employee between pregnancy confirmation and five months after delivery is prohibited (Transitory Constitutional Provisions Act, Art. 10, II, b).

I) SEVERANCE PAY INDEMNITY FUND (FGTS)

The Severance Pay Indemnity Fund (FGTS), which is governed by Law 8036 of May 11, 1990, obligates an employer to deposit into the employee’s blocked bank account, by the 7th of each month, eight percent of the remuneration paid or owed the employee for the previous month.

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The employer is also obligated to deposit 0.5 percent of the remuneration paid or owed for the previous month as social contribution as required under Complementary Law 110 of June 29, 2001.

In case of the work contract’s rescission by the employer, he/she is obligated to deposit into the employee’s FGTS blocked account the amounts pertaining to the deposits corresponding to the rescission month and to the preceding month, without prejudice to other legal sanctions.

Unjustified termination – In case of unjustified termination, the employer must deposit into the employee’s FGTS blocked account an amount equivalent to 40 percent of all deposits made into that blocked account during the life of the work contract, adjusted for inflation plus interest, without regard for any withdrawals made from the account.

J) PRIOR NOTICE

This is a notification by one of the contracting parties notifying the other party that after a given period the contract will be terminated. This notice must be given at least 30 days in advance (CLT, Art. 487; CF, Art. 7, XXI). The purpose of this notice is to allow the employee to seek another job and the employer to contract another worker.

Failure of the employer to give this notice entitles the employee to the salaries due for the period corresponding to the prior notice and to have this period computed into his time of service (CLT. Art. 487, para. 1). Failure of the employee to give this notice gives the employeer the right to deduct the salaries corresponding to the notice period (CLT, Art. 487, para. 2).

K) TRANSPORT VOUCHER

The transport voucher is provided for by Law 7418 of December 16, 1985 and Decree No. 95247 of December 17, 1987 and must be supplied to all employees that must pay for public urban, intermunicipal, and interstate public transportation on the way to and from work.

An employee contributes to this scheme with 6 percent of his/her basic salary, any bonuses excluded. The employer is responsible for the amount in excess of this percentage (Law 7418/85, Art. 4). Employers may be exempted from this obligation if they can provide their own or contracted adequate means of transportation.

The replacement of transportation vouchers for cash is forbidden.

L) UNION CHECKOFF

Every year, employers must deduct from their March payroll the union dues of employees, whether they are union members or not. And every month

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of April they must deduct from their payroll the union dues of temporary workers and journeymen, while union dues pertaining to freelancers and liberal professionals will be deducted every month of February (CLT, Arts. 582 and 583).

M) DIGNITY

Precedent has been established, particularly through Regional Labor Court decisions, which systematically recognize that violation of human dignity gives rise to the right to collect damages for pain and suffering. Moral and sexual harassment are often the source of these lawsuits.

Under Brazilian law, sexual harassment is a crime (Art. 216-A of the Brazilian Penal Code, which uses the wording of Law 10224/91).

As to moral harassment, different bills are under consideration at the Chamber of Deputies aimed at setting down norms on the matter, including the possibility of making it into a crime. Moreover, some states and municipalities have already passed laws to protect workers from moral harassment, which has been defined by jurists, legislators, and experts as any abusive conduct (gestures, words, and attitudes meant to humiliate, for instance) that intentionally, frequently, and repetitively affects the dignity, functional reputation, and psychic and emotional integrity of a worker, thereby interfering with the good performance of his/her work, degrading the working environment, isolating the functionary, and causing different pathologies in the victim.

Further information on moral harassment can be found in the Urban Employer’s Manual for Embassies and International Entities on the CGPI site: www.cgpi.mre.gov.br.

14.4. Social Security

The purpose of Social Security, a social insurance, is to recognize and guarantee the rights of the insured. The revenue transferred to Social Security is used to replace the contributing workers’ income when they lose their capacity for work owing to illness, disability, old age, and even in the case of maternity, imprisonment, or death.

The Social Security General Regime (RGPS) provides protection to most workers in Brazil – salaried urban, independent, domestic, and rural workers. It is managed by the National Social Security Institute (INSS), is compulsory, and its policy is formulated by the Social Security Ministry. Retirement is based on age: men over 65 and women over 60 in urban areas, and men over 60 and women over 50 in rural areas; or based on contribution time: after 35 years for men and 30 years for women.

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Under the 1988 Constitution, Social Security, of which the RGPS forms part, is funded by the entire society, directly or indirectly, in the form of transfers from the federal, municipal, and Federal District governments, as well as of an equal contribution from corporations and similar entities, workers, and other insured by Social Security.

Pursuant to Law 8212 of July 24, 1991, which provides for Social Security’s organization, foreign Diplomatic Missions and career Consular Posts are placed on the same footing as corporations (Art. 15), with the same obligations, so that people who work for Diplomatic Missions, career Consular Posts, and for entities subordinated to them, or who are members of such Missions and Posts, except for non-Brazilians without permanent residence in Brazil, are all insured (Art. 12).

Diplomatic Missions and Consular Posts are under the obligation of deducting the contribution of their local functionaries according to the following social security contribution schedule:

BASE SALARY FOR CONTRIBUTION (R$) INSS TRANSFER CONTRIBUTION

Up to 965.67 8.0 percentfrom 965.68 to 1,609.45 9.0 percent

from 1,609.46 to 3,218.90 11.0 percentSchedule updated on February 1, 2009 by Interministerial Directive No. 48 of February 12, 2009. Schedule readjusted annually by the same index as that of benefits readjustment.

Social Security contributions by Diplomatic Missions and Consular Posts leveled with corporations are as follows:

a) 20.0 percent of the total amount of the monthly remuneration paid, owed or credited for any reason to insured employees, journeymen, and individual contributors (independent) that work for them (Art. 22, I and III);

b) 1.0 percent of the total amount of the monthly remuneration paid or credited to employees and journeymen to fund benefits for disability stemming from environmental hazards at work (Art. 22, II, a);

c) 15.0 percent of the gross amount of invoices for services rendered by cooperative members through work cooperatives (Art. 22, IV); and

d) Withholding and transferring to Social Security 11.0 percent of the total amount of invoices for outsourcing of cleaning, conservation, janitorial, guard, and security services (Art. 31).

In addition, Diplomatic Missions and career Consular Posts have the following obligations:

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a) To enroll uninsured employees and nonenrolled individual contributors;

b) To transfer social security contributions owed;

c) To establish a remunerations payroll;

d) To issue remuneration slips to workers;

e) To notify work accidents;

f) To notify, by using a FGTS Payment and Social Security Report Form (GFIP), all facts that generate contributions and other information of interest to Social Security;

g) To pay family-salaries and maternity-salaries and to deduct these from contribution payments; and

h) To implement a work environmental hazards management program, unless they do not have employees covered by the CLT (IN No. 3, Art. 381, para. 2).

LEGISLATION

1. Law 8212 and Law 8213, both of July 24, 1991.

2. Social Security Regulations, approved by Decree No. 3048 of May 6, 1999, and amendments.

FOR FURTHER INFORMATION

a) www.previdencia.gov.br;

b) Central de Atendimento: dial 135;

c) www.mte.gov.br.

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15. FOREIGN EXCHANGE FOR TRAVELING

15.1 Maximum amount of foreign exchange allowed for traveling abroad

SRF Normative Instruction No. 619 of February 7, 2006 established procedures for incoming and outgoing amounts taken by international travels in excess of ten thousand reais or the equivalent in foreign currency. The text, which is the subject of Circular Note No. 12/07 of July 10, 2007, can be found on the CGPI site: www.cgpi.mre.gov.br.

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ACRONYMS AND ABBREVIATIONS USED (in alphabetical order)

ANAC: Agência Nacional de Aviação Civil [National Civil Aviation Agency]Anvisa: Agência Nacional de Vigilância Sanitária [National Sanitary Surveillance

Agency]ART: Anotação de Responsabilidade Técnica [Record of Technical Responsibility]BO: Boletim de Ocorrência [Police Report]CARE: Cartão de Registro de Assinaturas Autorizadas [Authorized Signatures

Record Card]CAT: Concessão de Código Específico de Marca/Modelo/Versão [Assignment of

Specific Make/Model/Version Code]CBMDF: Corpo de Bombeiros Militar do Distrito Federal [Federal District Military

Firemen Corps]CF: Constituição Federal [Federal Constitution]CGPI: Coordenação-Geral de Privilégios e Imunidades [Privileges and Immunities

General Coordination Office]CII: Certificado Internacional de Importação [International Importation

Certificate]CIP: Contribuição para Iluminação Pública [Public Lighting Contribution]CITES: Convenção sobre o Comércio Internacional de Espécies da Flora e Fauna

Selvagens em Perigo de Extinção [Convention on International Trade in Endangered Species of Wild Fauna and Flora]

CLT: Consolidação das Leis do Trabalho [Consolidated Labor Legislation]CNH: Carteira Nacional de Habilitação [National Driver’s License]CNPJ: Cadastro Nacional da Pessoa Jurídica [National Register of Legal Persons]COEFA: Coordenação de Gestão do Uso de Espécies da Fauna [Fauna Species Use

Management Coordinating Office]Conama: Conselho Nacional do Meio Ambiente [National Environmental Council]Confaz: Conselho Nacional de Política Fazendária [National Financial Policy

Council]Contran: Conselho Nacional de Trânsito [National Transit Council]CPF: Cadastro de Pessoas Físicas [Natural Persons Registry]CREA: Conselho Regional de Engenharia e Arquitetura [Engineering and

Architecture Regional Council]CRP: Conselho Regional de Psicologia [Regional Psychology Council]CRLV: Certificado de Registro e Licenciamento de Veículo [Cetificate of Vehicle

Registration and Licensing]

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CTPS: Carteira de Trabalho de Previdência Social [Worker’s Record and Social Security Book]

CVRC: Convenção de Viena sobre Relações Consulares [Vienna Convention on Consular Relations]

CVRD: Convenção de Viena sobre Relações Diplomáticas [Vienna Convention on Diplomatic Relations]

DAC: Divisão de Assistência Consular do Itamaraty [Itamaraty Consular Services Division]

DCJI: Divisão de Cooperação Jurídica Internacional do Itamaraty [Itamaraty Division of International Juridical Cooperation]

DEEST/MJ: Departamento de Estrangeiros do Ministério da Justiça [Ministry of Justice’s Foreigners Department]

Detran-DF: Departamento de Trânsito do Distrito Federal [Federal District Transit Department]

DFPC: Diretoria de Fiscalização de Produtos Controlados do Exército Brasileiro [Brazilian Army Controlled Products Inspection Board]

DI: Declaração de Importação [Importation Declaration]DILOG/BSB: Divisão de Logística da Secretaria da Receita Federal [Internal

Revenue Service – Logistic Division/Banco do Brasil]DIM: Divisão de Imigração do Itamaraty [Itamaraty Immigration Division]DPF: Departamento de Polícia Federal [National Federal Police Department]DNC: Departamento Nacional de Combustíveis [National Fuels Department]DOU: Diário Oficial da União [Government Official Gazette]DPVAT: Seguro obrigatório contra danos pessoais causados por veículos

automotores de via terrestre [Mandatory insurance for third party liabilities caused by land motor vehicles]

DRT: Delegacia Regional do Trabalho [Regional Labor Office]DSE: Declaração Simplificada de Exportação [Simplified Exportation Declaration]DSI: Declaração Simplificada de Importação [Simplified Importation Declartion] DUT: Documento Único de Transferência [Single Transfer Document]ECT: Empresa Brasileira de Correios e Telégrafos [Brazilian Post and Telegraph

Company]FGTS: Fundo de Garantia do Tempo de Serviço [Severance Pay Indemnity Fund]FOB: Free On BoardGFIP: Guia de Recolhimento do FGTS e Informações à Previdência Social [FGTS

Payment and Social Security Report Form]HFA: Hospital das Forças Armadas [Armed Forces Hospital]Ibama: Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais

Renováveis [Brazilian Institute of Environment and Renewable Resources]

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ICMS: Imposto sobre Circulação de Mercadorias e Serviços [State Sales Tax]II: Imposto de Importação [Importation Tax]IN: Instrução Normativa [Normative Instruction]Infraero: Empresa Brasileira de Infra-Estrutura Aeroportuária [Brazilian Airport

Infrastructure Company]INSS: Instituto Nacional do Seguro Social [National Social Security Institute]IOF: Imposto sobre Operações Financeiras [Tax on financial Transactions]IPI: Imposto sobre Produtos Industrializados [Tax on Industrialized Products]IPTU: Imposto sobre a Propriedade Predial e Territorial Urbana [Urban Property

and Land Tax]IPVA: Imposto sobre a Propriedade de Veículos Automotores [Motor Vehicle Tax]ITBI: Imposto sobre a Transmissão Intervivos de Bens Imóveis [Inter Vivos

Transfer Tax] JARI: Junta Administrativa de Recursos de Infração [Violation Proceeds

Administrative Board]LICC: Lei de Introdução ao Código Civil [Law on the Introduction of the Civil

Code]MAPA: Ministério da Agricultura, Pecuária e Abastecimento [Ministry of

Agriculture, Livestock, and Food Supply]MATRICOR: Matrícula de Cortesia [Courtesy Enrollment]MEC: Ministério da Educação [Ministry oif Education]MMA: Ministério do Meio-Ambiente [Ministry of the Environment]MPAS: Ministério da Previdência Social [Ministry of Social Security]MRE: Ministério das Relações Exteriores (Itamaraty) [Ministry of External

Relations]MTE: Ministério do Trabalho e Emprego [Ministry of Labor and Employment]NVP: Nota de Venda Programada [Programmed Verbal Note]PMDF: Polícia Militar do Distrito Federal [Federal District Military Police]RA: Região Administrativa [Administrative Region]REDA-E: Requisição de Desembaraço Aduaneiro – Entrada [Request for Customs

Clearance-Entry]REDA-S: Requisição de Desembaraço Aduaneiro – Saída [Request for Vehicle

Customs Clearance- Exit]Renavam: Registro Nacional de Veículos Automotores [National Motor Vehicles

Register]RGPS: Regime Geral da Previdência Social [Social Security General Regime]RT: Responsabilidade Técnica [Technical Responsibility]SAT: Solicitação de Autorização de Transferência [Transfer Authorization

Request]

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SAFIA: Setor de Fiscalização Aduaneira [Internal Revenue Service, Customs Inspection Section]

SENARM: Serviço Nacional de Armas [National Arms Service]SFPC: Seção de Fiscalização de Produtos Controlados do Exército Brasileiro

[Brazilian Army Controlled Products Inspection Section]SINARM: Sistema Nacional de Armas [National Arms System]SRF: Secretaria da Receita Federal [Internal Revenue Service]TLP: Taxa de Limpeza Pública [Public Trash Collection Fee]TRADEP: Trabalho de Dependentes [Work by Dependents]Terracap: Companhia Imobiliária de Brasília [Brasilia Real Property Company]VIN: Vehicle Identification Number

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