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AGRIBUSINESS

Liberalization on the fields

To the core: Currently, every company, cooperative, or individual which processes, refines, manufactures, or packages products of vegetable origin must be enrolled in the CGC, which is the General Classification Registration of the Ministry of Agriculture. This is required in almost the entire productive chain, including crops such as coffee and soy, as well as fruit and veg.

Farmers not working with livestock need the CGC before they<div class="free rcp_restricted "><div class="paywall"></div><p> <div class="readmore-cta-block"> <p><strong>Read the full story NOW!</strong></p> <div class="readmore-cta-grid"> <div class="readmore-cta-half"> <a class="button black-text button-full" href="https://botr.brazilian.report/your-membership/login/?redirect_url=https://botr.brazilian.report/brazil-on-the-record/2019/06/01/may-27-may-31-2019-environment/">Login</a> </div> <div class="readmore-cta-half"> <a class="button black-text button-full" href="https://botr.brazilian.report/subscribe/">Subscribe</a> </div> </div> </div> </p> </div> can make money. Now, the Agriculture Ministry has decided to loosen these requirements. Registrations will be split into three categories: basic, intermediate, and complete. Only &#8220;complete&#8221; registrations will require technical visits to facilities before they can be approved. The Ministry of Agriculture has not yet established the exact classifications of products.</span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Some types of establishments, such as distributors, supermarkets, and markets, do not need to enroll in the CGC. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The classification of products will involve several factors, some which go beyond the product itself, such as the broadness of its sale, requirements from importing companies, risks associated to the product, and the past record of inspections and audits. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Registrations will be valid for five years. Previously, they only lasted two years. To renew registrations, a request must be made on the ministry&#8217;s website. No further technical visits will be made, for instance. </span></li> </ul> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUEGOwyAMfE25BQVCSDlwSLW734gMuC3aBCICjbKvX9LK9ki2R_J4LGR8xHToNW6ZlA3T5J3mTDKhFHG6HbgdDPHbdE-IC_hZk7WY2VvIPoaTLHo-kKfu5d3B4JQYmLSDldAzJYzssFbPeyDnhQmK8xgs6hjmY1rBOzLrZ87rpRsv_Kfmvu_UB_qIL2rS2aOp6GKp2NTyYcupWIhNiGmpKl7QhEY1DhvOTqwi47trmWpYJ3nX8l4Qr89B2_MrE3wQgjIqb6rG93X8Gls1dt1FtMuD0a2YLYP9pTYuJGksEOrGJPjzs4dAE64x5dOGqTKWEnw-JgxgZnS6akOSP3a-P87Hijrgvs2YM6bPsNomRcsYqbdcrIqDNglDtHUJ_x02hXM"><span style="font-weight: 400;">Instrução Normativa nº 9, de 21 de maio de 2019</span></a></p> <hr /> <h4>Modified seeds</h4> <p><b>To the core: </b><span style="font-weight: 400;">In a regulation of a 2016 decree, companies which request the so-called &#8220;crop protection&#8221; (in practice, the intellectual property on modified vegetables, such as seeds of corn, soy, beans, among others) will have to report on their request form whether they were genetically modified or if, to obtain the variety to be protected, the company had access to the national gene bank or the knowledge associated with it. At the very least, the measure will help to gather data on crops. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUNFuwyAM_JryFgQEQvrAw1ZtvxEZcDu0BCICjbKvH2kl-6SzLd35HBR8pHyYNW2F1A3zFLwRfODyeiXeMC2ctiRs0z0jLhBmQ9Zq5-CghBTPY6mEJj9GWSbGO1gGijHLRo0jR62u9o4IwJGcChNUHzA6NCnOx7RC8GQ2P6Wsl_7jIr5b7ftOQ6SP9KQ2nxxtQ59qw651iFvJ1UHqYspLc_GELna87zx2Qp_YXKYXY_zacakG1g-DJMGcA6Z6xiVjSlNOb2Mv1Kj0V38T8pOPF8mWB6dbtVsB90tdWkg2WCG2jc3wF-YAkWZcUy5nDlO7WGoM5Zgwgp3Rm2YOSXnn-Xq5HCuaiPs2YymY38OW2yDHUZCm5VNzHI3NGJNrS_gHKX2GHQ"><span style="font-weight: 400;">Instrução Normativa nº 13, de 27 de maio de 2019</span></a></p> <hr /> <h4>Fertilizers</h4> <p><b>To the core: </b><span style="font-weight: 400;">In March 2018, the Army defined a series of rules to be followed by people and companies who work with ammonium nitrate, with regard to the storage of the product. Ammonium nitrate is used exclusively in these cases as a component of fertilizers, being processed and mixed with other chemical products, such as phosphorus or potassium, or used directly on plants. Companies and individuals had one year to adapt to these new rules, but this deadline has now been extended to July 5. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMtuxCAM_JrlFkQIBHLg0K7a34h4eLOoBCICjdKvL9mV7JHGtjTjsbrAkvKptrQXVHfIs3eK9mPPpgk5RQS1wiC_z48MsGofFNqqCd7q4lO8jhmnAj2Ve0jDjBg5H5wYqJWMuGl6DKQfQAg9oUth1tV5iBZUiuGcN-0dCupZynYbPm70u9VxHNhHvKRfbPLFwTR0qTbsWm8pF5297mLHaWdTSEvnoKPywmYwvRjpp65nnI9klBPy6hoQ3swwQrjAPb7LgXLJxddwp-yzlzdG1qXHezV70fYH27SirKDq2DYm6z8fvI44w6V_RTC3i7VGX84ZojYBnCq5AirvKF_flnMDFeHYA5QC-T1skY1MSoqalkvNcVQmQ0y2LfU_LGiDJw"><span style="font-weight: 400;">Portaria nº 52 &#8211; Colog, de 28 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;"><b> </b>AVIATION</h2> <h4>Aviation punishments</h4> <p><b>To the core: </b><span style="font-weight: 400;">Anac published two administrative precedents on the measurement of penalties defined in the agency&#8217;s internal regulations, particularly concerning mitigating and aggravating circumstances of violations. In the most significant change, the civil aviation agency decided that it cannot apply aggravating factors when the circumstance provoking this punishment increase is &#8220;inherent to the wrongdoing.&#8221; For example, if a pilot exposes people&#8217;s physical integrity to risk, this is not an aggravating factor, as it is an infraction in itself. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMtuxCAM_JrlFgQEQnLg0K7a34h4OLuoBCICjdKvL9mVrJHHY8njsbrAI-VTbWkvqO6QZ-8UowPl04ScIpJZaZDf5yUDrNoHhbZqgre6-BSvZS6YRE_VswXIMAhnx0layZxcLCxUELPoRfaArguzrs5DtKBSDOe8ae9QUM9Stlv_cWPfrY7jwD7iR_rFJl8cTEOXasPu6sD6XacudrLvHHSMX9icpRcjdOooF2IghDHk1TUgoieUEyIkpvg-9kyMQn71d8Y_6XjjZH1QvFezF21_sE0rygqqjk0xWf_54HXEGbaUy_X73DbWGn05Z4jaBHCq5AqovDN8vVnODVSEYw9QCuT3sGU18HFkqN1yqTmOymSIyTZR_wM4x4E0"><span style="font-weight: 400;">Decisão nº 73, de 24 de maio de 2019</span><b> </b></a></p> <hr /> <h2 style="text-align: center;">BANKS AND FINANCIAL SYSTEM</h2> <h4>Money freed up for banks</h4> <p><b>To the core: </b><span style="font-weight: 400;">The Central Bank altered a part of its rules on the compulsory deposits that banks and other financial institutions must make to the Central Bank. As of July, deposits made by banks&#8217; leasing companies no longer need to be sent to the compulsory reserve established by the Central Bank. With this measure, the Central Bank will free up BRL 8.2 billion for banks to use as they please. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUNluwyAQ_JrwZsThGPuBh7RRf8Pi2CaoGCwMtdyv7zqRdkfaSzszzlR45HLoNW-VtA3KHLwWfOD9NBGvmRJOWRK2-bsALCZETdZmY3CmhpzO5f4qFHlqN8rJDeMknRUKbxizo1cg7CBMz5gi54fZNB8gOdA5xWNeTfAk6met60XeLuILY993GhJ95F9qy1mDRfS5IXaYLhTXoild6iSdetl56MQLkV1-VYxPHZeSC8HkSII-GwxZcuTBFeWUccE_-vuds8_xygW79Gx5cLo1u1XjfqjLCykamkk4scX8hRhMogXWXOqpf8aNpaVQjxmSsRG8rqUBqW8fX1LrsYJOsG8RaoXybqJfg7wqSfCXz8g4aVsgZYdD8w8Px4FV"><span style="font-weight: 400;">Circular nº 3.943, de 23 de maio de 2019</span></a></p> <hr /> <h4>Fintechs</h4> <p><b>To the core: </b><span style="font-weight: 400;">Good news for fintechs and other institutions working with so-called &#8220;payment accounts.&#8221; Unlike traditional checking accounts, these follow different rules to those applied to the conventional banking sector. Under current regulations, they are obliged to pay part of the money received from clients to the Central Bank, and another part to invest in public bonds. The entire amount deposited in current accounts must go to one of these two destinations. The main change this week is that the returns of investments in public bonds may now be used freely by these fintechs, who can opt to retain this money or distribute it to clients. Nubank, for instance, distributes a part of its profits from NuConta payment accounts to its clients. These rules also apply for prepaid cards. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMtuxCAM_JrlFgSEPDhwSLvNb0Q83F1UAhGBRunXl-zK9kgztmSPjcrwiOmUW9wzKjukxVnJaE-5EMhKMjAzaOT25TsBrMp5ibaivTMquxiuYd6xAT3lwK-wHReMMKPH3vKuZ4zanhpCuxFdGxZVrINgQMbgz2VTziIvnzlvt3a6sbnmcRzYBfyIv1ini4OuaGOp2NQyLpniVWpC02LBeWOhYeLCel18MUJFQ_kouBjpgJy8BNK1lHJWZUzxOM5f0zxM3cedTOT-eeNkfVC8F71nZX6wiStKEooKtaOT-nPeqYATbDHly_9SJ9YSXD4XCEp7sDKnAii___iyms8NZIBj95AzpLdY_9V3rSCo7rKxXhykThCiqU31D0sBgQI"><span style="font-weight: 400;">Circular nº 3.944, de 29 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;">BUSINESS AND INVESTMENTS</h2> <h4>Transparency in articles of organization</h4> <p><b>To the core: </b><span style="font-weight: 400;">The articles of organization of any limited liability company will now have to include a list of all real estate property considered part of the owners&#8217; capital. Members will have to include the book value of each one of them in the payment of stock, the identification of this property, its area, its deed, etc. Even when there is no real estate paid in, owners&#8217; capital will have to be described in a way that makes it clear how much relates to currency, and how much relates to property. This is quite a jump in transparency, and a helpful measure for investigative journalism. However, commerce registries may accept articles of organization which do not follow these standards, providing that all of the members opt for this voluntarily. The new rules take effect at the end of August. It is unclear whether existing companies will have the update their articles of organization or not.  </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUNuOhCAM_Rp5kwCiwgMPbnb3NwyXOkNWwSCMcb9-cSdtT9NL0tNjdYZHTJfa45FROSDN3ilGB8qlRE6RkdnRIH_MSwLYtF8V2otZvdXZx3Av856N6KkEECOWRdOuF0ZYMcjFARupoLIXI-PovjDr4jwECyqG9Zp37R1a1TPnvemmhn1XP88T-4Af8YVNumswFV0sFdsaPhw5FatjG2LaKouXbkM7sNZBS8mNlWW8MyNUtrQbGJNDNyKv7gbpmaCcjZxjiocPWe1LTJ8TkVPXNZxsD4qPYo6s7Q-2cUNJQdGhTkzSv371OuAEe0z51mGuG1sJPl8zBG1WcKqSA5Tfev6_nK8dVIDzWCFnSO9m1W3ghFJUb7lYGQdlEoRo61D_AW7QhZA"><span style="font-weight: 400;">Instrução Normativa nº 62, de 10 de maio de 2019</span></a></p> <hr /> <h4>Data on foreign investors</h4> <p><b>To the core: </b><span style="font-weight: 400;">Foreign investors registered on the Brazilian Securities Commission (CVM) already have to present a variety of information when requested by the government, among them data on final beneficiaries and administrators, even if they have small percentages of direct or indirect equity. Now, however, these investors are obligated to submit information on their partners and administrators within 90 days after registering. There are around 19,000 foreign investors registered on the CVM; the only information made available on them is their country and segment. It is unclear whether this information will be made public on the CVM website.</span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Bodies controlled by foreign sovereign funds, government agencies, central banks or multilateral or international organizations do not need to detail their final beneficiaries. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">In the case of shell or dummy corporations, when there is a complaint with evidence that is &#8220;considered to be consistent&#8221; by tax auditors, there will be no need to visit the company&#8217;s address (currently obligatory) to declare the firm unfit.</span></li> </ul> <p><span style="font-weight: 400;">Source: Instrução Normativa nº 1.895, de 27 de maio de 2019 </span></p> <hr /> <h2 style="text-align: center;">CRIME AND CORRUPTION</h2> <h4><b>Fight against corruption </b></h4> <p><b>To the core: </b><span style="font-weight: 400;">The Assistant Secretary of Anti-Corruption of the CGU gained the power to authorize special operations alongside the Federal Police and Federal Prosecution Service. In theory, this will add dynamism to anti-corruption activities involving the CGU.</span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUNFuwyAM_JryFgQBQvrAw1ZtvxEZcFq0BCICi7qvH2kl--SzLZ3PDgreU36aLe2F1B3zFLzp-cDl9Uq8Ybp32pKwT3NGXCEshmzVLsFBCSmey1L1mjyMFNI5Pc9WaqVnoTR3chASYNZSgB_IqTBB9QGjQ5Pi8pw2CJ4s5lHKdhEfl_67xXEcNER6T7_U5pOjbehTbdi13FIukAN0seN0ZEPnsevHE9t16cUYv3ZcKjW0ipFgzgZTgnHJmNKU09soejUq_SVuvfzk40Wy9c7pXu1ewP1Ql1aSDVaIbWIz_IUlQKQZT_HT_9Q21hpDeU4YwS7oTckVSXn_8WW1PDc0EY99wVIwv5vtX4Mcx540LZ_axdHYjDG5NoR_bTiBvQ"><span style="font-weight: 400;">Portaria nº 1.806, de 28 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;">DEFENSE AND FOREIGN POLICY</h2> <h4>Passports</h4> <p><b>To the core: </b><span style="font-weight: 400;">The Federal Police and Foreign Affairs Ministry must &#8220;create mechanisms&#8221; to report Brazilian passports which have been stolen, lost, or revoked, to Interpol. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUEluwzAMfE10s6DVjg86tA36DUMLkwiVJUNLDff1lROAHIAcAjMcqys8Uj7UlkpFrUBevFOMjlTMM3KKTMxOBvmy3DPAqn1QaGsmeKurT_E8FpJN6KnGUTJuDedGG3k3IKUgs2QwXyVj48jRqbDo5jxECyrFcCyb9g4F9ax1u_CPC_vute879hE_0i82-ZzBdHSpdRx6ZygpNKvTEAc6OBiYOLFbS6-J0HmgnFMmRnZFXp0L0i1SQQidMMWEMvopbjdKvq6SMnIRZH1QXJopVdsfbNOKsoKmY2dM1n8-eB1xhi3lej6_9Iu1RV-PBaI2AZyquQGq7xBff9ZjAxVhLwFqhfxe9rBGLieOupZL3XFUJkNMtpP6H6sUgKk"><span style="font-weight: 400;">Resolução nº 1, de 24 de maio de 2019</span></a></p> <hr /> <h4>Immigration</h4> <p><b>To the core: </b><span style="font-weight: 400;">In another migratory measure concerning Venezuela, residency requests from minors coming from neighboring countries may be made by either parent, legal representative, or legal assistant. After authorization, the &#8220;express and voluntary&#8221; withdrawal of refugee status is recognized. In the case of children under nine years old who do not have passports, an original copy of the child&#8217;s birth certificate may be submitted. This procedure will only be accepted in the presence of one of the parents and a formal declaration that the child is in fact that which is registered in the birth certificate. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMtuxCAM_JrlFgQEkuyBQ7tqfyPi4WytEogIaZR-faFr2WP5IXk8zhR4pnzpLe2FHDvkGb0WfODyfides1G40RLc5yUDrAaDJtthAzpTMMW2LJUYyZceBstAesUApLrzyfBBjIuTyzhU8wtpF2ZzeIToQKcYrnkz6EnQX6Vst_7tJj6rn-dJMdJn-qE2txpsRZ-Oil2NLeViMpoOY4G8YsS9ZjShi53oPHRcNaxUU8uC8XvHpVIDm5QkqFuDqZ5xyZgaKaePqRdqUuNH_xDynU83ydYnp_th92LcN3VpJVnDYWKd2Gx-MaCJNENj0sSY68Z6RCzXDNHYAF6XfAApL1H__y7XBjrCuQcole6rWcUb5DQJUm_5VBlHbTPE5OrQ_AGRzofG"><span style="font-weight: 400;">Portaria Interministerial nº 2, de 15 de maio de 2019</span></a></p> <hr /> <h4>Free flight for Feds</h4> <p><b>To the core: </b><span style="font-weight: 400;">By way of a Federal Police request (with some details kept secret), the National Civil Aviation Agency (ANAC) temporarily removed the need for people operating Brazilian planes outside of Brazil to be able to make contact to control towers in English. The clearance will be valid until June 10. While this is not a general normative act, it could be an alert to some form of operation in neighboring countries over the coming days. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMtuwyAQ_JpwMwJswD5waKP2Nywe6wQVg4Whlvv1xYm0Gu3M7GofVhd4pHyqLe0F1R3y7J1iVNBhmpBTRDIrDfL7vGSAVfug0FZN8FYXn-JVPHAm0VMxB6yfltYpFkJHyegIYIAwIbheeomuCbOuzkO0oFIM57xp71BQz1K2W_9xY98tjuPAPuJH-sUmXxxMQ5dqw-7KwPpdpy52UnQOOjZd2DZLL0bo1NGBc0GEYMirSyC8J3QghEtM8X3sGR-5_OrvbPik420g64PivZq9aPuDbVpRVlB1bI7J-s8HryPOsKVcrtvnVrHW6Ms5Q9QmgFMlV0Dl_cPXmeXcQEU49gClQH6L7VdiGEeG2iyX2sZRmQwx2WbqfyA6gEo"><span style="font-weight: 400;">Decisão nº 76, de 29 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;">ENVIRONMENT</h2> <h4>Taming the environment</h4> <p><b>To the core: </b><span style="font-weight: 400;">This week, the government activated the most incisive measure on environmental control since Jair Bolsonaro took office. The National Environment Board (Conama) has been completely gutted, resulting in less participation from civil society and environmental control agencies. Conama is the agency in charge of, among other duties, establishing &#8220;rules and criteria for licensing effectively or potentially polluting activities&#8221; and proposing &#8220;guidelines for governmental policies for the environment and natural resources.&#8221; As well as reducing its size, Conama will also no longer include representatives from the Federal and State Prosecution Service or the House of Representatives&#8217; Committee of the Environment, which previously took part as invited board members.</span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The decree also eliminates one of the responsibilities of Conama by extinguishing the Appeals Chamber. This chamber was in charge of making the final decision on fines and other penalties imposed by the Brazilian Environmental Protection Agency (Ibama). Conama now no longer has the power to decide upon appeals against Ibama fines.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Currently, the board has around 100 members, who are not paid to be part of the group. Despite that, the downsizing will be massive, with the board being cut to 23 members. The most important changes are the following: </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Removal of representatives from the Chico Mendes Institute of Environmental Preservation (ICMBio), the National Agency of Water (ANA), and the reduction, from 21 to 4, of representatives of workers and civil society (now restricted to four national environmental agencies). </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The reduction, from 8 to 2, of representatives from corporate organizations, which will now be represented alternately by appointees from the National Agriculture Confederation, the National Industry Confederation, the National Trade Confederation, the National Transport Confederation, and the National Services Confederation. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The government sector suffered the largest cut in numerical terms. Since the creation of the Conama, every cabinet ministry had a representative on the board, as well as each one of the armed forces. Now, there will be only seven (besides the Ministry of the Environment). Previously, there was also a representative for each state, which will now be replaced by a representative from each of the country&#8217;s five regions. The representation of municipalities also decreased, from 8 to 2. </span></li> </ul> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMuOwyAM_JpyCwJKHhw4VBvlNyIebhctgYjARtmvX2gla-TxWPJ4jMrwiumSezwyKgek1VnJ6EC5EMhKMjIzauSO9ZkANuW8RHvR3hmVXQxtmfdsRN9yEveR2afQExGcGVB9b4h4DoJZbc04oXZhVcU6CAZkDP5ad-Us8vI75_12f9zYUus8T-wCfsVfrFPjoCvaWCp2rQOTIMcudAJPZOgsdGxqWM3FNyNUdJRTTkbOOXKyDUjPBOWMMYopZmz5muflMZOZP6ZluXGyvSg-ij6yMj_YxA0lCUWFquik_px3KuAEe0y5vb_Wja0El68VgtIerMypAMqfGN-f5msHGeA8POQM6TOscQ28pxTVWzZWx0HqBCGaKqp_H6GBwQ"><span style="font-weight: 400;">Decreto nº 9.806, de 28 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;">HOUSING</h2> <h4>Housing 1</h4> <p><b>To the core: </b><span style="font-weight: 400;">The Ministry of Regional Development reduced the limit of funds available for this year to finance housing for low-income families, via the FGTS, in the North and Northeast regions. These two regions also saw cuts to their budgets for discounts to be given to individuals. Meanwhile, the South, Southeast, and Center-West regions saw increases in their respective funding limits. </span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The total available funds for this year for granting financing to families with a monthly income of up to BRL 4,000 to build or purchase homes in urban or rural areas fell from BRL 2.4 billion to BRL 2.3 billion. Meanwhile, the funds for financing property purchases in used homes specifically in urban areas rose from BRL 300 million to BRL 400 million. </span></li> </ul> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUEGOwyAMfE25BQGhTTlwqDbKNyIDTos2gYhAo-zrl7SSPdLYlmY8FjI-Yzr0GrdMyoZp9E4LfuNSKeI064TtDPHbOCXEBfysyVrM7C1kH8N5LK-iIy9tpmsLYuJCCXWbJjUx6FrbGiZacFIociqMUJzHYFHHMB_jCt6RWb9yXi_t4yKGWvu-Ux_oM76pSSdHU9HFUrGp7cOWU7EQmxDTUl28oQkNvzcOG_HB6jJ-GOOq4ZJL1jEpidfngF2F4lIIwSmnQgw_fT88etbLx30YLpItT063YrYM9pfauJCksUCoG5Pgz88eAk24xpTPHMZ6sZTg8zFiADOj09UckvzN8_NyPlbUAfdtxpwxfYc1t5u8ck6qlovVcdAmYYi2LuEfx1GF8w"><span style="font-weight: 400;">Instrução Normativa nº 18, de 28 de maio de 2019</span></a></p> <hr /> <h4>Housing 2</h4> <p><b>To the core: </b><span style="font-weight: 400;">Families selected for the Pro-Housing program, also funded with FGTS resources, will have a total period of 180 days (previously 120 days) to sign financing contracts after they are selected. This deadline can be extended, with proper justification to be submitted by the financial agent to the government. Furthermore, the government may authorize financing in the following tax year, if the financial agent justifies this need. With these changes, the fixed deadline of 30 days for selected families to submit documentation to banks now no longer exists. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlkNGOgyAQRb-mvEkEUdsHHpo1_oYZYNqSVTAINe7X79gmcJOZucmcuRYyPmM69Bq3zMqGafJOS9EJdbsxp-te2t4wv02PhLiAnzVbi5m9hexjOM2qlT17kbNpVGt6Z41tURhsRNfKW9M8GoQOgZ0bJijOY7CoY5iPaQXv2KxfOa-X5n6RI71937kP_Bnf3KSzRkPqYiGt6Puw5VQsxCrEtBDFG6pQiVvlsJLXU4kyfqqaukIJRWhKMa_PRk1MQkkpBRdcyvFnGMb7UA_qfh3Hi6qXp-BbMVsG-8ttXFjSWCDQxCT487OHwBOuMeUzh4kcSwk-HxMGMDM6TXDI8jfPz8n5WFEH3LcZc8b0bVJunWqFYLTLRSIO2iQM0dIQ_gH2yIYi"><span style="font-weight: 400;">Instrução Normativa nº 19, de 28 de maio de 2019</span></a></p> <hr /> <h4>Housing 3</h4> <p><b>To the core: </b><span style="font-weight: 400;">Low-income families (between BRL 2,600 and 4,000 in gross family income per month) qualifying for real estate financing via the FGTS by March 16 this year may definitively sign financing contracts with FGTS agents by June 28 under the same conditions and operational limits in force until the end of last year. The FGTS&#8217; Individual Credit Card program works with resources from the fund and aims at ensuring housing in urban or rural areas for individuals with a gross monthly family income of up to BRL 7,000, by way of financing agreements.  </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMuOwyAM_JpyCwIvNOXAodoovxHxcLtoE4gINMp-_ZJWskca29KMx5mCz5QPvaatkLphnoLXwK9cKEW8Zj243pKwTY-MuJgwa7JWOwdnSkjxPBYSevKjpb0qcAjKC2SKPTyAEPiQTjLrbsqTU2Ey1QeMDnWK8zGtJngy659S1svX_QJjq33faYj0mV7U5pOjbehTbdi1DnEruTqTupjy0ly8TBc73nceO7id2FymN2NcdVxwwXqpJAn6HDAJigsA4JRTgPF7GMb7wAZxv43jRbDlyelW7VaM-6UuLSRrrCa2jc3mL8zBRJpxTbmcOUztYqkxlGPCaOyMXjdzSMonz_fL5VhRR9y3GUvB_Bm23K5Cck6alk_NcdQ2Y0yuLc0_EjGGOQ"><span style="font-weight: 400;">Instrução Normativa nº 17, de 28 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;">INFRASTRUCTURE AND LOGISTICS</h2> <h4>Regional development policy</h4> <p><b>To the core: </b><span style="font-weight: 400;">The government reformed the National Policy of Regional Development, after 12 years of the last version being in force. Now there is a central concern about joint actions with states and the private sector, which was not present before, while still giving priority to activities in the North, Northeast, and Center-West regions. The focus is now purely economic, with the central objective of the policy to reduce economic and social inequality with the &#8220;creation of development opportunities which result in economic growth, generation of revenue, and improved quality of life for the population.&#8221; This is even more clear with the exclusion of more direct contributions which could be made from the ministries of the Environment, Education, Health, and others. Previously, the board which decided on the policies and priorities of the program was made up of representatives from 18 ministries. Now, it is only six: the Chief of Staff, Economy, Regional Development, Institutional Security, Government&#8217;s Secretary, and the General Secretary. </span></p> <p><b>Other interesting aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The plan will focus on six axes: &#8220;productive development,&#8221; &#8220;science, technology, and innovation,&#8221; &#8220;education and professional training,&#8221; &#8220;economic and urban infrastructure,&#8221; &#8220;social development and access to essential public services&#8221; and &#8220;strengthening of the governing powers of federative bodies.&#8221; </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Reinforcing the economic concern of the plan, among the specific objectives of the national policy are to generate &#8220;economic diversification,&#8221; particularly for regions &#8220;with significant specialization in the production of agricultural commodities or minerals,&#8221; and the &#8220;support for the productive integration of regions around structuring projects or processing zones,&#8221; in other words, close to major works and export hubs.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The board to decide on the program&#8217;s policies will become more centralized and strategic. As well as the reduction in the number of members, meetings will require the participation of all members and decisions with financial impacts will depend on unanimous approval. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Besides funds from the federal budget and public funds for performing the national policy, the reformed document also mentions &#8220;financial, tax or credit incentives and benefits&#8221; and &#8220;other sources of national or international funds.&#8221;</span></li> </ul> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMuOwyAM_JpyCwLyPnDIbre_ERlwW1QCEYGNsl-_pLWssT1jyQ8NCR8hHnINWyJ5wzhbIwXveDOOxEjWC90rYrf5HhEXsE6SNStnNSQb_NnctKInT9nf4Q7YC26E6kCZzqCoezF0I9Mth46cE2bIxqLXKIN3x7yCNcTJZ0rrpZ4u4lZ833dqPX2EX6riWaMqaEIuWJ0Z6ogpVL4a6cBZZbCq31iWC2cUjI8Vb4a6Y8WIlSfB2przRhSacjoMt5_p1k_t15VN7Pp9adjy4HTLakugX1SHhUSJGXxRVIQ_6yx4GnENMZ3nz6Vjyd6mY0YPyqGRKWYk6fPG96XpWFF63DeHKWH8kOVdXVuPjJRZJpSNvVQRfdBFhH9nZoHn"><span style="font-weight: 400;">Decreto nº 9.810, de 30 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;">LABOR</h2> <h4>Telework in the INSS</h4> <p><b>To the core: </b><span style="font-weight: 400;">The Brazilian social security institute (INSS) has implanted a teleworking pilot program, creating so-called High Performance Specialist Centers (CEAPs), aimed at &#8220;increasing the productivity, specialization, and quality of activities of initial recognition of rights and the inspection of cases with indications of irregularities.&#8221; </span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The number of places for each CEAP will be decided by a selection process open only to permanent staff members of the INSS. Those in commissioned posts may not take part in the selection process.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">In the case of limited places, preference should be given to people with disabilities, people with children, spouses or dependents with disabilities, and for pregnant women and nursing mothers. For the latter, this could result in &#8220;extended&#8221; maternity leave, allowing mothers to stay at home nursing their children while working. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Employees must report to their offices once every 30 days, but should be available for contact at any time during the regular working hours, and must check their emails every day. Costs of internet, phone and electricity will be borne by the employee. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">In a rule to frustrate digital nomads who may want to work directly from the beach, &#8220;in work trips, including for meetings or taking part in training, tickets may only be issued from the city where the employee is allocated.&#8221;</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Control of productivity will be crucial. If the employee has below average productivity, he/she will be removed from the CEAP and will return to a normal working regime. If productivity is below average for six consecutive months or for ten months in a year, the employee will leave the CEAP and be unable to apply for return for 12 months.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The system includes a potential loophole for leaking confidential information: the employee must take home &#8220;cases and other documents from the office facilities&#8221; whenever necessary to carry out his/her job, though the &#8220;procedures related to information security and the custody of documents&#8221; must be observed. </span></li> </ul> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMtuwyAQ_Jpws8XyMMmBQ9uov2Hx2CSoGCwMtdKvL06k3ZF2Z6WZHWcq3nN56jVvlbQNyxy8ZjCBuFyI11QxpywJ23wriIsJUZO12RicqSGn41hIpshDS3ljgnLPJjFJVNJzOZ2VmhQwZw0HcijMpvmAyaHOKT7n1QRPon7Uup74x4l999r3fQxpvOff0ZZjRtvR59Zx6F1wy7E5k4c0TGcYPA5MHNjN5ddE4TIA58CEYpQEfSxoNwmCUlAjjBQYfIrrFejXWQKjJ0GXO4xbs1s17md0eSFFYzOpM7aYvxCDSWPBNZd6vD_3i6WlUJ8zJmMjel1LQ1LfMb4-rc8VdcJ9i1grlveyxzVxqTjpWj53x0nbgim7Tpp_AzOAsw"><span style="font-weight: 400;">Resolução nº 681, de 24 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;">PUBLIC ADMINISTRATION</h2> <h4>Integrity in the Economy Ministry</h4> <p><b>To the core: </b><span style="font-weight: 400;">The Ministry of the Economy made its internal integrity program official. Entitled &#8220;Prevenir&#8221; (Prevent), it encompasses the ministry as a whole, and appears more robust than others which have been created by other government agencies. Among the objectives are to &#8220;disseminate rules, concepts, and practices related to ethics management, integrity risk management, principles and good practices of internal control, and correctional work.&#8221; The program also includes an incentive for civil servants to make complaints, encouraging the &#8220;appropriate use of complaint channels about ethical matters, administrative wrongdoings, fraud, and corruption within the ministry.&#8221; </span></p> <p><b>Potential loophole: </b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Precisely what this incentive will be is unclear. It will be defined by the Integrity Plan of the Ministry of the Economy, which is yet to be elaborated and will include the practical measures to be developed to meet Prevenir goals. The Federal Controller General (CGU) had ordered that all government agencies approve their own Integrity Plans before March 29. In the case of Prevenir, it states that plans of integrity measures will be announced each year, and carried out in the following year. In other words, even if a concrete plan is delivered next month, it will only take practical effect as of 2020. </span></li> </ul> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUNFuwyAM_JryFoRJGpoHHrZV-43IgNOiJRARWJR9_Ugr2WfZPunOtpjpEdOh17hlVjZKo3daQg_dMDCnhZJWGea3cUpEC_pZs7WY2VvMPoaT3F2lYk89qVs_KDAwoBHgwEgcpq4nO1lFRrbsVBixOE_Bko5hPsYVvWOzfua8XtqPi_yuse8794E_4i836ezJVHSxVGxqrjFlTB6b0Mh2aBzVcmL1Fl-dgKGBtgUpheyZ1-dAVI_QCQGKAxcg4bO730F83a4gxaUTywP4VsyW0f5wGxeWNBUMdWMS_vnZY-CJTunz-rEylhJ8PkYKaGZyOqdCLL-_-Do0HyvpQPs2U86U3sP6rb69qpZVLRer46BNohBtXeI_9B6Bjw"><span style="font-weight: 400;">Portaria nº 239, de 23 de maio de 2019</span></a></p> <hr /> <h4>Destination of FGTS funds</h4> <p><b>To the core: </b><span style="font-weight: 400;">In March, a decree signed by Jair Bolsonaro reduced the members of the FGTS curatory board from 18 to 12. The committee is primarily tasked with deciding where the fund&#8217;s resources are applied. Now, the internal rules of the board have been changed to reflect the alterations of the decree. The number of board members present to hold meetings has fallen (from 13 to 7), as well as the amount required to accept requests to take cases under advisement (from 8 to 4). However, there is one more important change, concerning the number of votes required to make changes to internal rules. Previously, 16 of the 18 board members had to approve rule changes, now this limit goes down to 8 out of 12. As it is a tripartite board made up of representatives of the government, corporations, and employees, it would be no surprise to see rule changes approved even with the total opposition of workers&#8217; representatives, for example.</span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMuOwyAM_JpyCwoueXDgUG2U34h4eFu0BCICG2W_fkkr2SPZY2nGY1TGZ0yn3OKeSdkxLc5KYD3jQhAr2wHMoInbl--EuCrnJdmK9s6o7GK4jnkHA3nJbtBmHK2yVvQce9HhiL29d4NFJWAw5FJYVLEOg0EZgz-XTTlLvHzlvN3ujxvMtY7joC7QZ_ylOl0z6oo2lopN7YR79MWo2IRGAG8sNjBeWM3F99Qy0TDOeAt9debktWg7EIwDAKOMAsxf0zQ_pnbij3Geb7xdn4zuRe9ZmR9q4kqSxKJCZXRSf847FWjCLaZ8vb_Ui7UEl88Fg9IercypIMmfGN-f5nNDGfDYPeaM6bOscfW8Y4xULRur4yB1whBNJdU_DEGCqQ"><span style="font-weight: 400;">Resolução nº 924, de 28 de maio de 2019</span></a></p> <hr /> <h4>Collection of debts</h4> <p><b>To the core: </b><span style="font-weight: 400;">The General Counsel of the National Treasure amended an ordinance published at the beginning of May ordering the suspension of tax foreclosures on debts &#8220;considered to be impossible to recover or highly unlikely to be recovered.&#8221; Previously, the rule was that foreclosures worth less than BRL 1 million (in 2016) would be suspended unless there was a useful guarantee provided by the debtor in the records. Now, the new ordinance includes the reference to debts of up to BRL 1 million once more, also including the mention of debts &#8220;considered to be impossible to recover or highly unlikely to be recovered.&#8221; Therefore, there is the possibility of prosecutors suspending tax foreclosures worth more than BRL 1 million when the debt is unlikely to be recovered. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMuOgzAM_JrmRpQXsBxyqBbxG8hJ3DZaSFBIFrFfv6GV7JE8tjTjsZDxGdOpt7hnUnZMs3da8I6rYSBOs17Y3hC_z4-EuIJfNNmKWbyF7GO4jlUrevLSlkkJhrXAbNcNw0P0nZRdp1ppemM6JJfCDMV5DBZ1DMs5b-AdWfQr5-0m7zcx1TqOg_pAn_GXmnTNaCq6WCo2tbeYMiQPTWhawRqHjegvrN7ie2J8aLjiirFeDsTri2CtGLgSQnDKqRDT9zhO95GN6v41TTfF1ienezF7BvtDbVxJ0lgg1I1J8OcXD4EmvKSv7-d6sZbg8zljALOg0zkVJPmT4vvRfG6oAx77gjlj-pA1rRoI56RquVgdB20ShmjrEv4BXKGBUQ"><span style="font-weight: 400;">Portaria nº 520, de 27 de maio de 2019</span></a></p> <hr /> <h4>Budget back and forths</h4> <p><b>To the core: </b><span style="font-weight: 400;">The government increased cuts of the administration&#8217;s optional expenses by BRL 1.646 billion. Since the beginning of the year, cuts total BRL 34.3 billion—26.5 percent less than what was foreseen by the budget. However, this latest change involved the allocation of funds for parliamentary grants which were separated in a reserve of the government&#8217;s budget. With this, despite the general cuts, some ministries which usually receive more funds from grants will have more available resources. One example is the Ministry of Education, where cuts have fueled protests across the country. The department will now have relief of 5.8%, while the Health Ministry receives a break of 29.7%. </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUNluxCAM_JrlLYgr1wMPabf5jYjDu4uaQESgUfr1ha5kje2xJc_YqATPEC-5hyOhfEBcnJWMdlSMI7KS9Mz0GrljeUSATblVoj3r1RmVXPB1WbSsRy8pOLECOmDUKkW6VnP66CyxyjBLqeKoXlhUtg68ARn8ei27chat8pXSfuPTjc0lzvPEzuNn-ME61h50QRtywaZWYCKk0PhmxAMZGwsNJxWLuFAzI3RsqBh4R0grkJOVIC2nVLBCY4qHYf6a5n5qP-5kIvfPmyDbk-Ij6yMp841N2FCUkJUvEx3Vr1ud8jjCHmKq9peysWXv0rWAV3oFK1PMgNL7jf9O07WD9HAeK6QE8U2Wd3UtHwkqt2woir3UEXwwZaj-AEH2gdg"><span style="font-weight: 400;">Decreto nº 9.809, de 30 de maio de 2019</span></a></p> <hr /> <h4>Donation of furniture and equipment</h4> <p><b>To the core: </b><span style="font-weight: 400;">States and NGOs which have signed covenants with the federal government concerning programs to protect witnesses, threatened children and human rights defenders may receive donations in the form of objects or equipment resulting from idle covenants.</span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMtuxCAM_JrlFgQkJOHAIe12fyPi4eyiJhARaJR-faErWWN7PNLYNirBM8RL7uFIKB8QZ2cloz3thEBWkoGZQSN3zEsE2JRbJdqzXp1RyQVfxR1nA3pJM2q7EC0I4f0iRtqKhakFjGUdt2IQqDrMKlsH3oAMfr3mXTmLVvlKab-10409SpzniZ3Hz_CDdaw96II25IJNrcBESKHxjcDFpbHQtKRiWS7UzAgVDe1GwXk_9MjJShDeUtqxQmOKx_HxNT2GiX_cyUTun7eObE-Kj6yPpMw3NmFDUUJWvkx0VL9udcrjCHuIqZ4_F8WWvUvXDF7pFaxMMQNK7zf-X5quHaSH81ghJYhvsryr560gqHjZUDb2UkfwwZSh-gNZUoHu"><span style="font-weight: 400;">Decreto nº 9.813, de 30 de maio de 2019</span></a></p> <hr /> <h4>Committees</h4> <p><b>To the core: </b><span style="font-weight: 400;">The government changes some aspects of the controversial decree restricting the existence of collegiate boards in the federal administration. There are no fundamental changes, instead there is a clarification that the restriction also applies to &#8220;collegiate bodies instituted by infralegal acts, where the law in which they are mentioned does not define their jurisdiction or composition&#8221; and excludes ethics committees from these rules, as well as committees investigating corporate liability and those monitoring management contracts.</span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUNFuwyAM_JryFgRJaMIDD9m6_kZkwGtRE4gILMq-frBK1tk-W_KdDSR8hHiqLeyJ5B3j7Kxq-ZX3UhKr2NCaQRO3z98RcQW3KLJlvTgDyQVfl3vRDuSppOYjGESjYbCA144LaQWgZFLwDiWpF2bI1qE3qIJfznkDZ8miniltl266tPcSx3FQ5-kj_FAda4-6oA25YFMrNBFTaHwj6cjbxmLTsYpFXKi5ZVw2vB-lEEMniVOVYKLjvG8LTTkdx_vXdB8m8XFjE7t9Xnq2Pjjds94TmBc1YSVRYQZfJjrCr1sceBpxCzFV-3PZWLN36ZzRg17QqhQzkvR-47_TdG6oPB77gilhfJPlXVfRSUbKLRuKYq90RB9MGcIfxCmCQg"><span style="font-weight: 400;">Decreto nº 9.812, de 30 de maio de 2019</span></a></p> <hr /> <h2 style="text-align: center;">PUBLIC SECURITY</h2> <h4>Tributes to dead police officers</h4> <p><b>To the core: </b><span style="font-weight: 400;">Ten federal agencies will take part in a 90-day project to think up ways to pay tribute to police officers and members of the military killed in service. An interministerial working group was set up by means of a presidential decree. Representatives of these agencies will propose &#8220;criteria and periodicity&#8221; for the selection of individuals to be honored, and establish &#8220;the ways of permanently preserving the memory of public agents.&#8221; Among the agencies involved are the Ministry of Regional Development, the Ministry of Education, and the Institute of Historic and Artistic Heritage (Iphan). </span></p> <p><b>Source:</b> <a href="http://email.mg1.substack.com/c/eJwlUMuOwyAM_JpyCwJKSnLgUDXKb0Q83BYtgYjARtmvX2gla-TxWPJ4jMrwiumUW9wzKjukxVnJ6I3ycURWEsGM0MjtyzMBrMp5ibaivTMquxjaMu-ZQG9JtTaKXwVY8tTkNjBOngMFcbWGCCMUahcWVayDYEDG4M9lU84iL985b5fr_cLmWsdxYBfwK_5inRoHXdHGUrFrHZgEOXahG_FARGehY0PDai5-GKFjRznlRPSCISfbgPRspJwxRjHFjM2PaZrvE5n4fZjnCyfri-K96D0r84NNXFGSUFSoik7qz3mnAk6wxZTb-0vdWEtw-VwgKO3BypwKoPyN8fNpPjeQAY7dQ86QvsMa1433lKJ6y8bqOEidIERTRfUPbEeB_A"><span style="font-weight: 400;">Decreto nº 9.807, de 28 de maio de 2019</span></a></p> <p>

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