The latest issue of our Brazil On The Record Newsletter is out! Every Saturday, we bring you the most important laws, decrees, administrative acts, and executive orders which have been approved by the Brazilian government — and published on the Federal Register (the Diário Oficial da União).

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Suspension of antidumping measures

To the core: After changes to the structure of the Ministry of the Economy, as we have explained in previous issues, now the internal procedures of the Special Department of Foreign Trade and International Matters have also been changed, to lead to the potential termination of antidumping policies and compensatory measures.

To this end, there is the so-called “evaluation of public interest,” which occurs when someone highlights negative effects on the Brazilian economy as a result of a (protectionist) antidumping measure adopted by the government. “Public interest” comes into play when the damage is larger than the benefit. The new ordinance says the following:

  • Evaluation of public interest requests will not be accepted while antidumping
    measures are in force, only during the original investigation which may result in antidumping measures, or at the evaluation at the end of the measure&#8217;s term, when the government analyzes whether it intends to extend the measure. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">In cases of original investigations of dumping and subsidies, the public interest evaluation will be mandatory. In reviews at the end of a measure, the evaluation is optional. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">These evaluations of public interest will be decided by the Sub Department of Trade Defense and Public Interest. </span></li> </ul> <p><b>Source: </b><a href=""><span style="font-weight: 400;">Portaria nº 8, de 15 de abril de 2019</span></a></p> <hr /> <h4><b>Electronic duplicate invoices</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> It will be the exclusive responsibility of the Central Bank to authorize agencies to record book-entry invoices. In other words, only by the direct authorization of the Central Bank may agencies use the system instituted by law last December, creating electronic duplicate invoices. This was a pending aspect of the law. With these electronic duplicate invoices, which are less liable to fraud, the idea is that it will be easier to use payment agreements as guarantees to obtain, for instance, bank loans for small and medium-sized businesses.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Decreto nº 9.769, de 16 de abril de 2019</span></a></p> <hr /> <h4><b>Bank limits</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The Central Bank established a series of technical changes to the rules for financial institutions to fill out the document concerning the Operational Limits Statement, through which the Central Bank controls the limits that banks must respect, with regard to aspects specifically controlled by the Central Bank—such as limits for promised operations, credit for the public sector, among others. Those from the sector may examine the changes in depth in the link below.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Carta Circular nº 3.946, de 12 de abril de 2019</span></a></p> <hr /> <h4><b>Revision of bank fees</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The administration fee currently paid to the Caixa Econômica Federal as an operator of the FGTS fund will be put under review. Currently, Caixa receives 1 percent per annum of the total assets of the fund. This rate is considered to be proportionally high on the market, due to the size of the fund, and generates around BRL 4 billion each year for the bank. A working group was created to carry out this revision. </span></h5> <p><span style="font-weight: 400;">Three government representatives will take part: two from the Ministry of the Economy and one from the Office of the Chief of Staff. Besides them, there will be representatives from trade union centers CUT and Força Sindical, as well as the National Confederation of the Commerce of Goods, Services and Tourism, and the National Confederation of the Financial System. The group&#8217;s results must be submitted to the curation board before its meeting in July.</span></p> <h5><b>Other aspects to bear in mind:</b></h5> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Forecast to be submitted in the first meeting of the FGTS Curation Board this year, the proposal for another change—in the fees for banks who grant loans with FGTS funds—is now likely to be submitted in the board&#8217;s July meeting. A working group has been studying this matter since December.</span></li> </ul> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução nº 920, de 11 de abril de 2019</span></a><span style="font-weight: 400;"> and </span><a href=""><span style="font-weight: 400;">Resolução nº 918, de 11 de abril de 2019</span></a></p> <hr /> <h4><b>Change in FGTS Investment Committee</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> Caixa Econômica Federal is now no longer a part of the Investment Committee of the FGTS. In the bank&#8217;s place, a representative of the Office of the Chief of Staff was included. The name of this representative have yet to be defined. The seat for the Ministry of Regional Development has been maintained, but the occupant, appointed in March, asked to leave. With this, the position is empty. </span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução nº 917, de 11 de abril de 2019</span></a></p> <hr /> <h4><b>Formulation of normative acts</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> For internal agencies of the Ministry of the Economy, whenever proposing any normative acts (bills, ordinances, etc) they must submit their proposal to the Ministry&#8217;s executive department, including information about its tax, budget and financial impact, as well as deadlines for the conclusion or publication of the normative instrument. Until now, the matter of tax and budgetary impact was not compulsory. </span></h5> <h5><b>Other aspects to bear in mind:</b></h5> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">When receiving proposals of normative acts, the executive department must consult, when applicable, other relevant areas of the ministry to carry out technical and legal evaluations, establishing deadlines for each case in accordance with its complexity. By current rules, there were specific deadlines for the analysis of normative acts. The executive department, for example, had to evaluate the proposals in up to four working days, after receiving the statements from technical areas.</span></li> </ul> <p><b>Source: </b><a href=""><span style="font-weight: 400;">Portaria nº 170, de 17 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;"> CULTURE AND SOCIETY</h2> <h4><b>Foreign trips of Ancine</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> In all cases of Ancine (National Cinema Agency) board members taking trips abroad, the visit must first be approved by the board of directors, including any trips of civil servants on missions abroad representing Ancine. Upon their return to Brazil, these employees must submit a report to the board on the actions carried out and the results achieved. Until now, any trips of civil servants for professional development (for courses, seminars, etc.) had to be approved by the board. Now this authorization will be given directly by the agency president—who, incidentally, is the only exception to this rule. Whenever the agency head leaves the country, it must be authorized directly by the Minister of Citizenship.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução nº 86, de 16 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;"> DEFENSE AND HOMELAND SECURITY</h2> <h4><b>Strategic Defense Planning</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The Minister of Defense approved the method to be used by the department in drafting the Sectoral Strategic Planning report for 2020-2031. However, its contents are restricted. The full measure was not published on the Federal Register and it only available via the Special Planning Department of the ministry and on the Ministry of Defence&#8217;s internal network.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Portaria Normativa nº 23/GM-MD, de 15 de abril de 2019</span></a></p> <hr /> <h4><b>Extinction of Alcântara Cyclone Space</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The binational company Alcântara Cyclone Space, a result of the partnership between the Brazilian government and Ukraine, is now officially extinct. The extinction was already established last year by way of a decree, which has now been written into law after approval by Congress.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Lei nº 13.814, de 17 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;"> EDUCATION</h2> <h4><b>Delegation of powers in FNDE</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The Administrative Director of the National Education Development Fund (FNDE) will now be responsible for the entirety of bidding processes within the agency, and not just their costing analysis. The FNDE is the main policy execution branch of the Ministry of Education, overseeing everything from school transport to the procurement of textbooks. In the case of contracts and agreements, if the amount in question is less than BRL 1 million, the officer may sign off on these instruments by himself. </span></h5> <p><span style="font-weight: 400;">The Technology and Innovation Director also gains the power to sign contracts of a similar value, but only within its area of operations. Another change is that officers may now directly authorize the issuance of travel expenses and allowances for trips abroad. Previously, this was the exclusive jurisdiction of the FNDE president.</span></p> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Portaria nº 189, de 12 de abril de 2019</span></a></p> <hr /> <h4><b>Enade rules</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The rules for this year&#8217;s National Student Performance Exam (Enade) have been published. The test, which will be held on November 24, evaluates the performance of students who are concluding undergraduate degrees in specific courses. This year, the students evaluated will be from the area of engineering, medicine, agronomy, architecture, and physical education. </span></h5> <p><span style="font-weight: 400;">The general rules are basically the same as last year. The guidelines of the exam itself are yet to be established and will be drawn up by the committee to be set up by the National Institute of Educational Study and Research (INEP). The criteria for comprising these committees will be &#8220;technical&#8221; and the result of &#8220;indicators calculated for this purpose.&#8221; In the context of changes in vision about education in Brazil, it is worthwhile observing how this exam will be constructed.</span></p> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Portaria nº 828, de 16 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;"><b> </b>TRADE</h2> <h4><b>Controls on the Brazil-Paraguay border</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The customs control on the border between Brazil and Paraguay, on the Ponte da Amizade bridge, will now follow different rules. Previously, vehicles of any size, with products for export, were able to cross into Paraguay without a physical inspection, providing the cargo declared on receipts was in view and easily identifiable. </span></h5> <p><span style="font-weight: 400;">Now, only flatbed trucks and minivans will have this privilege (vehicles with a total weight of up to 3.5 tons), as long as they are not transporting medications or other products which depend on the authorization of other agencies (one exception established now is for live cargo or perishable products, which may pass without inspection providing they are permitted by the Ministry of Agriculture). </span></p> <h5><b>Other aspects to bear in mind:</b></h5> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The ordinance adapts the tax authorities in Foz do Iguaçu to the requirement of submitting Export Declarations (DU-E) online. This document was introduced last year by the Brazilian government and reduced the bureaucracy of a large part of cases involving foreign trade. If the DU-E is also classified as a &#8220;green channel&#8221; by the tax authorities, cargo may pass the Ponte da Amizade bridge without inspection. This classification involves a series of factors, including the record of the exporter and the nature of the exported cargo. If the classification is given the &#8220;yellow&#8221; level, clearance is not automatic, but the inspection only involves documents. Physical inspections will only take place in cases classified as &#8220;red.&#8221; </span></li> </ul> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Portaria nº 88, de 10 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;"><b> </b>HEALTHCARE</h2> <h4><b>Maternal and infant mortality</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The Tripartite Inter-Management Committee (made up of the Health Ministry, state health departments, and municipal health departments) has extended the original deadline for the submission of a plan to combat maternal and infant mortality, according to </span><a href=""><span style="font-weight: 400;">guidelines established last December</span></a><span style="font-weight: 400;">.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução nº 43, de 28 de março de 2019</span></a></p> <hr /> <h4><b>Organic Law of the Welfare System</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> This concerns Health Minister Luiz Henrique Mandetta&#8217;s ratification of a resolution approved alongside the National Health Board and National Social Welfare Board to apply an interpretation to a change made last year to the Organic Law of the Welfare System. A paragraph was added to the law providing that &#8220;full health care&#8221; is linked to the &#8220;situation of vulnerability or social and personal risk,&#8221; as well as in relation to the supply of &#8220;medications and products of interest to health.&#8221; </span></h5> <p><span style="font-weight: 400;">The case caused a </span><a href=""><span style="font-weight: 400;">strong reaction</span></a><span style="font-weight: 400;"> from social welfare organizations, which saw the measure as transferring the responsibilities of health policy to social welfare. The ratified resolution—which does not change the wording of the law—establishes that &#8220;full health care, including the acquisition, delivery and dispensation of medications, is the exclusive responsibility of health policy.&#8221;</span></p> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução Conjunta nº 608, de 8 de novembro de 2018</span></a></p> <hr /> <h4><b>Operating licenses for pharmaceutical companies</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> In January last year, the National Agency of Sanitary Surveillance (Anvisa) allowed the delegation of powers to sanitary surveillance authorities of states and municipalities to directly authorize operations and attest to good manufacturing practices by companies which manufacture medications, active ingredients of medications and health products with a risk class of III and IV (the highest on Anvisa&#8217;s scale), with the exception of medicinal gases. </span></h5> <p><span style="font-weight: 400;">Now, Anvisa establishes specific procedures which must be followed by states and municipalities for this delegation to be carried out. This comes at a time when Brazil is attempting to adapt its sanitary surveillance procedures to international standards. With regards to these procedures, the following aspects are worth highlighting:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">In order to be delegated these responsibilities, states and municipalities must meet all of the &#8220;critical&#8221; criteria considered by Anvisa, at least 70 percent of the &#8220;very important&#8221; criteria, and 50% of the important criteria. Still, even once receiving the delegation, they must submit an action plan to correct the points not fulfilled until reaching the level of 80 percent of &#8220;very important&#8221; criteria and 70 percent of &#8220;important&#8221; criteria. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The analysis of compliance with the requirements will be carried out separately, by group (active pharmaceutical inputs, health products with risk class III and IV, and medications). The delegation, therefore, will be carried out for each group. Therefore, a state may be authorized to give operating licenses for companies manufacturing inputs, but not authorized to do the same for companies manufacturing health products.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The evaluation of this quality management system in states and municipalities will be carried out by Anvisa in triennial cycles. For states, the cycle runs from 2019 to 2021; for municipalities, 2020 to 2022. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">If a state has less than eight factories manufacturing high-risk health products and less than eight (combined) factories making medications and pharmaceutical inputs, it will not receive this delegation and the responsibility for authorization will be solely of Anvisa.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">In the case of states which have the minimum number of factories mentioned above, the delegation becomes automatic as of now, but may be reviewed once Anvisa concludes its analysis of criteria, of which there are 78 in total. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The municipalities which currently have these powers may retain them until the end of 2022, but must work alongside states until they comply with the requirements demanded by Anvisa. If the state does not have the delegation from Anvisa, the agency will work alongside the municipality instead. </span></li> </ul> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Instrução Normativa nº 32, de 12 de abril de 2019</span></a></p> <hr /> <h4><b>Condom sales</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> In response to an old demand of the sector, Anvisa has scrapped the limit of 12 condoms sold per package in pharmacies and supermarkets. Now, each manufacturer may decide the quantity to be sold.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução da Diretoria Colegiada nº 276, de 16 de abril de 2019</span></a></p> <h4><b>Doping control</b></h4> <h5><b>To the core: </b><span style="font-weight: 400;">Anvisa significantly loosened its control over the import and export of biological samples (of urine and blood, for example) for doping controls, as well as the kits used for the collection of these samples from athletes. </span></h5> <p><span style="font-weight: 400;">Whenever these kits are intended solely for doping controls, their import and export will be exempt from sanitary surveillance controls. In the case of samples, they only need to be submitted to Anvisa inspections when they are imported by laboratories which are not licensed by the Brazilian Doping Control Authority and do not have active registrations in the World Anti-Doping Agency (Wada). Previously, the import of these kits had to comply with a series of bureaucratic requirements, such as the delivery of forms on CD-ROM or flash drives.</span></p> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução da Diretoria Colegiada nº 279, de 16 de abril de 2019</span></a></p> <hr /> <h4><b>Traditional Chinese Medicine</b></h4> <h5><b>To the core</b><span style="font-weight: 400;">: On April 25, the deadline given by Anvisa for the clearance of the manufacture and sale of mineral and vegetable products and mushrooms used in techniques of Traditional Chinese Medicine (TMC) is set to expire. This clearance was granted in 2014 and will now remain in force until Anvisa regulates the manufacture and sale of these products. At the end of last year, Anvisa created a working group to regulate not only TMC products, but also floral and other alternative products of traditional medicines. This regulation should be confirmed soon, therefore.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução da Diretoria Colegiada nº 280, de 16 de abril de 2019</span></a></p> <hr /> <h4><b>Therapeutic equivalence of nasal medications</b></h4> <h5><b>To the core: </b><span style="font-weight: 400;">Anvisa established a regulatory framework to establish the so-called therapeutic equivalence between inhaled oral medications and nasal medications (sprays, for instance). This is what allows the registration of a medication as a generic drug, for example. The rules established by Anvisa are very technical, without anything particularly surprising. </span></h5> <p><span style="font-weight: 400;">In its justification to put the matter up for public consultation last year, Anvisa explained that these medications, unlike others, &#8220;must show therapeutic equivalence not only in their formulation, but also in their devices, therefore the studies are more specific and complex.&#8221; Another aspect is that these requirements were not &#8220;internationally harmonized, and therefore Anvisa has taken decisions on a case-by-case basis on the proposals submitted by companies which manufacture this type of product.&#8221; In theory, this lack of legal security no longer exists. </span></p> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução da Diretoria Colegiada nº 278, de 16 de abril de 2019</span></a><span style="font-weight: 400;"> and </span><a href=""><span style="font-weight: 400;">Instrução Normativa nº 33, de 16 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;"> INFRASTRUCTURE AND LOGISTICS</h2> <h4><b>Revenue of port operators</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The National Agency of Waterborne Transport (Antaq) has begun the testing phase of the Port Prices Monitoring System. By way of this system, companies which work in the sector will have to report their gross revenues every month for the provision of port services with third-party cargos. This information must be supplied directly, detailing the type of service provided and the type of cargo, among other information. COmpanies must register on the system within the next two months, counting from now.</span></h5> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Resolução Normativa nº 31, de 15 de abril de 2019</span></a></p> <hr /> <h4><b>Merging of agencies</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The Ministry of Infrastructure created a working group which it seems will be able to propose the merging of Antaq and the National Agency of Land Transport (ANTT). This is not specifically described in the ordinance, but was</span><a href=""><span style="font-weight: 400;"> floated by the minister</span></a><span style="font-weight: 400;"> during the transition phase of the new government. The idea would be to create the National Agency of Transports. </span></h5> <p><span style="font-weight: 400;">The working group is heading in this direction by involving servants from both agencies and having among its objectives the &#8220;revision of the administrative structure, highlighting potential needs for adjustments&#8221; and the &#8220;standardization of procedures for uniformity in the management, decision, social control and regulation of modes of transport.&#8221; The deadline to complete the work and submit a potential draft of legislative changes is 90 days, but may be extended for a further three months. </span></p> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Portaria nº 448, de 17 de abril de 2019</span></a></p> <hr /> <h4><b>Fraud in concession contracts</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> In light of allegations of fraud in concession contracts for federal highways, the ANTT established guidelines to &#8220;eliminate or mitigate systemic risks,&#8221; which may affect the work of the Oversight Department of Exploration of Highway Infrastructure. These guidelines will be observed in the drafting of an action plan to be published on the ANTT website. </span></h5> <p><span style="font-weight: 400;">Among the more general orientations are, among others, the prioritization of hiring companies to supervise the inspection of concession contracts, evaluate the current situation of stretches of highway in relation to obligations forecast in contracts, and improving the &#8220;transparency of data and information relative to concession contracts of federal highways, particularly in relation to monitoring, inspection and tariff revision/adjustment.&#8221;</span></p> <p><span style="font-weight: 400;">Source: </span><a href=""><span style="font-weight: 400;">Portaria nº 127, de 17 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;">BUSINESS AND INVESTMENTS</h2> <h4><b>Opening of affiliates of foreign companies</b></h4> <p><b>To the core: </b><span style="font-weight: 400;">This normative instruction reduces the bureaucracy for the opening of affiliates and other units of foreign companies in Brazil. Now, the requests to open these units will be made exclusively online, by way of the new government portal &#8220;</span><a href=""><span style="font-weight: 400;"></span></a><span style="font-weight: 400;">.&#8221; Previously, companies had to submit their requests to the Department of Corporate Registration and Integration so that the case could be sent to another internal department of the Economy Ministry, which would decide on the request. Now, requests will be examined directly by the National Department of Corporate Registration and Integration.</span></p> <p><span style="font-weight: 400;">Source: </span><a href=""><span style="font-weight: 400;">Instrução Normativa nº 59, de 15 de abril de 2019</span></a></p> <hr /> <h4><b>Registration of companies in the waterway transport sector</b></h4> <h5><b>To the core: </b><span style="font-weight: 400;">There has also been a reduction in bureaucracy in the registration of foreign companies working with waterway transport. The ratification of charters of these companies from abroad in the Merchant System of Antaq will no longer need sworn translation. However, &#8220;according to necessity,&#8221; Antaq may solicit the translation of the documentation. </span></h5> <h5><b>Other aspects to bear in mind:</b></h5> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The authorization requests for passenger transport boats and ferries—which includes Brazilian companies—will now no longer require the submission of authenticated copies of the required documentation. When Antaq is in doubt about the authenticity of the document, it may solicit an authenticated copy.</span></li> </ul> <p><span style="font-weight: 400;">Source: </span><a href=""><span style="font-weight: 400;">Resolução Normativa nº 30, de 15 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;">PUBLIC ADMINISTRATION</h2> <h4><b>New guidelines for FGTS investments</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> Later this year, we may see important changes in the way the Guarantee Fund for Length of Service (FGTS) finances social policies and public works. The Curation Board of the fund, valued at hundreds of billions of reais, will carry out a broad re-evaluation of the general guidelines for the investment of resources of the fund. The last time these guidelines were updated was 2011. </span></h5> <p><span style="font-weight: 400;">These guidelines establish, for example, that the fund may invest in housing, basic sanitation, and urban infrastructure, or that individuals may receive benefits in purchasing construction materials. A working group was created today with the specific purpose of discussing this re-evaluation. </span></p> <p><span style="font-weight: 400;">The themes discussed will be broad, including &#8220;target audience,&#8221; liquidity reserves (how much the fund may lend without affecting its ability to pay unemployment insurance), the limits for the amount and sale of property, waiting times, discount policies, the remuneration of financial agents and the interest rates on loans granted with fund resources. </span></p> <h5><b>Other aspects to bear in mind: </b></h5> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Proposals for modifications must be submitted to the Curation Board before its 4th meeting of this year, scheduled for September 10.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Besides four representatives of the government, trade union centers CUT and Força Sindical, and employers unions CNI and CNSF will form a part of the working group. </span></li> </ul> <p><span style="font-weight: 400;">Source: </span><a href=""><span style="font-weight: 400;">Resolução nº 919, de 11 de abril de 2019</span></a></p> <hr /> <h4><b>Social organizations and personnel spending</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> State and municipality spending on personnel from civil society organizations which carry out primary activities of public administration (specifically social organizations, responsible for managing hospitals) will no longer be calculated as part of the limits of spending on civil service personnel—an essential part of the Fiscal Responsibility Law. </span></h5> <p><span style="font-weight: 400;">This requirement will only come into force as of 2021. Until then, the Public Treasury will establish &#8220;the routines and accounts, as well as budgetary classifications&#8221; so that this spending record may be carried out in an adequate fashion. And, until the end of 2020, states will have to adapt their accounting procedures to these social organizations.</span></p> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Portaria nº 233, de 15 de abril de 2019</span></a></p> <hr /> <h4><b>Nepotism in the Ministry of Justice</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The Ministry of Justice and Public Security established rules to avoid nepotism in the department and the agencies it oversees. So-called &#8220;crossed nepotism&#8221; is prohibited—when a relative of someone from agency A is appointed to agency B, and the relative appointed in agency B is given a post in agency A. Regardless, these are timid rules, limited to what is established in a </span><a href=""><span style="font-weight: 400;">decree from 2010</span></a><span style="font-weight: 400;">. </span></h5> <p><span style="font-weight: 400;">In February, Incra also established more restrictive rules about nepotism. For example, according to Incra rules, when the appointee (even without a link to public service) takes a post hierarchically superior to that of the relative who already works in Incra, the hiring process may continue, providing that the relative is not directly subordinate to the appointee. </span></p> <p><span style="font-weight: 400;">In the case of the Justice Ministry, the hiring of personnel to permanent posts hierarchically above relatives who already work in the ministry is permitted, without any provision to dismiss the relative at the lower level.</span></p> <p><b>Source:</b> <a href=""><span style="font-weight: 400;">Portaria nº 430, de 15 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;">SOCIAL PROGRAMS</h2> <h4><b>Clarifications about benefit</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> In March, the government announced that it would pay BRL 600 to families from the Brumadinho mining disaster which also received Bolsa Família or the Continuous Payment Benefit (BPC). This week&#8217;s ordinance merely specifies that the payments will only be made to people who already received the benefit in January of this year. In other words, those who began receiving either benefit after January will not receive the BRL 600.</span></h5> <p><span style="font-weight: 400;">Source: </span><a href=""><span style="font-weight: 400;">Portaria nº 677, de 13 de abril de 2019</span></a></p> <hr /> <h2 style="text-align: center;">VIOLENCE AND CRIMINAL MATTERS</h2> <h4><b>Community police</b></h4> <h5><b>To the core:</b><span style="font-weight: 400;"> The National Department of Public Security established a series of guidelines about community policing, to be followed throughout Brazil. For example, it establishes that, preferably, all new police graduates should be deployed in activities of community policing &#8220;for a period which allows for the creation of trust with the local community.&#8221; The relationship with the community is central to these guidelines, which, however, include no procedures to verify their completion. Apparently, the guidelines serve more as a letter of intent. Other aspects worth mentioning include:</span></h5> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">&#8220;Social police actions,&#8221; such as music classes and sports, which do not require the direct participation of police, should be seen as ways of community rapprochement and should &#8220;preferably&#8221; be carried out by &#8220;volunteers from the community.&#8221;</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The guidelines also include the &#8220;importance of the structuring and regulation of Community Security Councils,&#8221; where the concerns of the community should be &#8220;heard and taken into consideration with regard to the planning and operational action of the institutions.&#8221;</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The efficacy of community policing should be &#8220;measures by the perception of security and absence of crime and disorder, and not only by the number of arrests, seizures of illicit goods, operations, among others.&#8221;</span></li> </ul> <p><b>Source: </b><a href=""><span style="font-weight: 400;">Portaria nº 43, de 12 de abril de 2019</span></a></p> <p><span style="font-weight: 400;">

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