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Agricultural support

The Federal Savings Bank is no longer responsible for analyzing agricultural ventures to be executed via transfer agreements and contracts. The Ministry of Agriculture is now responsible for these analyses. According to the decision, the Federal Savings Bank will remain

as the financial agent behind the agreements and contracts. The transfer agreements now encompass other activities, such as fishery and aquaculture production. The agreements also continue to cover agroindustrial projects, agricultural mechanization, and collective construction projects that serve the demands of the agricultural sector. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Normative Ordinance No. 140, July 15, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Bacterial resistance </b></h4> <p><span style="font-weight: 400;">Three years ago, the Ministry of Agriculture developed new rules regarding the manufacture, sale and use of animal feed containing antibiotics for food-producing animals. July 17 was the deadline for manufacturers and importers of veterinary medicine, producers of animal feed and owners of food-producing animals to adjust to the new regulations. Initially, the deadline was July 2017, but the Ministry of Agriculture granted a two-year extension. Now, an additional one-year extension has been granted.</span></p> <p><b>Source:</b><span style="font-weight: 400;"> Informative Instruction No. 17, July 17, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>“Artisanal” cheese</b></h4> <p><span style="font-weight: 400;">With many vetos, President Jair Bolsonaro sanctioned a law that recognizes artisanal cheese, but a loophole also allows them to be made through industrial processes. These new norms need to be analyzed not only in relation to what is in the law, but with respect to another decree published on July 18 that concerns artisanal products of animal origin (derived from meat, eggs, fish and honey, as well as other milk products). </span></p> <p><span style="font-weight: 400;">On the one hand, Bolsonaro vetoed the formal definition of artisanal cheese, which states that cheese produced by small businesses should come from milk extracted at the local farm or supplied within a radius of 5km from the business’ farm. On the other, the president also vetoed part of the approved law which stated that artisanal cheese could not be produced through an industrial process. </span></p> <p><span style="font-weight: 400;">The decree signed by Bolsonaro allows the cheese’s raw material to come from any origin, as long as it has a determined origin and follows “a process of sustainable production.” The decree also allows for the addition of industrialized ingredients “restricted to the necessary minimum”, as long as they aren’t aesthetic additives, such as food coloring or flavoring. It also suggests that cheese be produced using traditional recipes, although this isn’t required. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Law No. 13860, July 18, 2019 and Decree No. 9918, July 18, 2019</span></p> <p><span style="font-weight: 400;"> </span></p> <h2 style="text-align: center;"><b>BANKS AND FINANCIAL SYSTEM</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Real estate financing</b></h4> <p><span style="font-weight: 400;">The Fund for Compensation of Wage Rates (FCVS) is what guarantees the payment of any remaining balance from real estate financing, through the Housing Financial System, whose value has been affected by inflation. It works as a kind of insurance. The fund’s Board of Trustees has decided to abolish the resource committees—one of which is linked to the Board of Trustees itself, and another which is related to the fund’s Housing Insurance. The committees served as first instances for the presentation of appeals against decisions related to financing contracts, for example. In theory, the Board of Trustees will become solely responsible for single appeal instances.</span></p> <p><b>Source:</b><span style="font-weight: 400;"> Ordinance No. 441, of July 11, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Money laundering</b></h4> <p><span style="font-weight: 400;">The government revoked a normative ruling that standardized regulations for money-laundering prevention adopted by Trade Boards all over Brazil. The rules helped identify individuals, record large transactions, and notify the Council for Control of Financial Activity (Coaf) about any suspicious cases. Trade Boards are legally required to follow these rules. Although procedures are carried out by the states, in 2014 the federal government set out general regulations. Now, the repeal of the normative ruling guarantees greater administrative autonomy for the states, who will have to regulate activity as they see fit. However, weak regulations create room for failures and/or distortions in the process of money laundering prevention. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Ordinance No. 61, July 15, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Fiscal benefits</b></h4> <p><span style="font-weight: 400;">The Brazilian IRS regulated a program called Repetition-Industrialization that exempts companies from federal taxes in acquisitions within the domestic market or in imports used integrally in the production process of goods used in the exploration, development and production of petroleum and natural gas. The measure benefits manufacturers of products that are directly delivered to the oil companies, and producers who deliver materials to those manufacturers. To benefit from the exemption, companies will have to demonstrate that they were granted contracts with oil companies or companies that benefit from the Repetition-Industrialization project.</span></p> <p><b>Source:</b><span style="font-weight: 400;"> Informative Instruction No. 1901, July 17, 2019</span><span style="font-weight: 400;"> </span></p> <h2 style="text-align: center;"><b>MINING AND ENERGY</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Price floor for road freight transport</b></h4> <p><span style="font-weight: 400;">The National Agency of Terrestrial Transportation (ANTT) has defined specific rules to calculate Brazil’s price floor for land freight. There are a series of variables considered in this calculation, including the type of cargo being transported, the cost of the truck’s depreciation, the cost of the truck’s acquisition, the cost of drivers’ labor, fuel expenses, vehicle maintenance, and other fixed and variable costs. ANTT’s resolution includes detailed explanations behind the calculation of each variable. In general, the freight cost will consider the distance traveled and as well as the cost of loading and unloading cargo. The calculations will be adjusted whenever there is a 10 percent change, either positive or negative, in the consumer price of diesel. These changes came into force on July 20.</span></p> <p><b>Other important facts you should know:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The freight calculations don’t include profit, toll prices, food expenses or administration fees. Nonetheless, these variables can be considered in the price floor if both the contractor and the transporter reach an agreement. The toll fee is an exception: it must always be covered through the Toll Voucher, which must be paid by the cargo’s owner. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Those that do not follow the new freight prices will be fined. They will have to pay two times the difference between what was paid and the official freight price, although the fine cannot exceed BRL 10,500. If a driver or transportation company offers their services below the price floor, they will be fined BRL 4,975.</span></li> </ul> <p><b>Source: </b><span style="font-weight: 400;">Normative Instruction nº 17, July 17, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Nuclear Energy</b></h4> <p><span style="font-weight: 400;">Angra 3 is a nuclear power plant that has been under construction for decades. Construction was completely suspended after the Car Wash Operation uncovered a series of irregularities. The power plant is now part of an Investment Partnership Program, which attracts investment from the private sector. The project has become a top priority for the federal government. A presidential decree states that in order to stimulate investment for the power plant, it is necessary to define a legal and operational model for the partnership program. </span></p> <p><span style="font-weight: 400;">Moreover, it will also be necessary to “conduct a study for technical, legal and economic-financial evaluation, which will allow for a competitive selection of a private partner.” Eletronuclear, the company in charge of nuclear energy in Brazil, may hire “independent consultants” to plan the study. </span></p> <p><span style="font-weight: 400;">The operational and legal model will be developed by the Interministerial Council, comprised by the Ministries of Mining, Energy and Economy, as well as the Institutional Security Cabinet and the Secretariat of Investment Partnership Programs. Once the model is defined, it will be evaluated by the Court of the Union’s Accounts. Once approved, a company will be selected to finalize the power plant&#8217;s construction. </span></p> <p><span style="font-weight: 400;">The committee will meet fortnightly and will have six months to complete the power plant. They may also receive a six-month extension.</span></p> <p><b>Source:</b><span style="font-weight: 400;"> Decree No. 9915, July 16, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Gold ore</b></h4> <p><span style="font-weight: 400;">The Ministry of Mining and Energy will potentially simplify the process of issuing grants for prospector mining where minerals can be harnessed immediately, usually through subsoil extraction in small quantities, and where they are unevenly distributed across the land. Classic examples are gold and diamonds, but there are many other lesser-known minerals that fit into the concept of prospector mining. The group will “study the possibility of simplifying the process of issuing grants” and will be comprised of three members from the federal government. They will have only 30 days to complete their task— suggesting that looser regulations will be approved. Two representatives of the Secretariat of Geology, Mining and Mineral Transformation, and another from the National Agency of Mining, will conduct the study. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Ordinance No. 108, of July 11, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Airport risks</b></h4> <p><span style="font-weight: 400;">The Aeronautical Command is no longer responsible for developing procedures regarding prior consultation and approval of projects that might attract birds to airport zones. The Command is still responsible for establishing guidelines and mitigating risks for airplanes through their Basic Plan for Mitigation of Airport Risks. It is unclear who will be responsible for the prior consultation of projects that might attract birds to airports— there is even the possibility that there will be no such consultation. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Normative Ordinance No. 54 / GM-MD, of July 15, 2019</span><b> </b></p> <h2></h2> <h2 style="text-align: center;"><b>INFRASTRUCTURE</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Corruption in the National Department of Transportation Infrastructure (Dnit)</b></h4> <p><span style="font-weight: 400;">The Board of Directors responsible for construction works on federal highways and waterways has delegated responsibility for construction in the state of Rondônia to its neighboring state, Amazonas (both located in the North region of Brazil). This was done because of “indications of irregularities in the Regional Superintendence of Rondônia’s Dnit branch with regards to the issuing of bids for highway construction.” Moreover, decisions made by Rondônia’s Superintendence over the past year will be suspended. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Ordinance No. 4801: July 11, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Obligations of Telephone Operators</b></h4> <p><span style="font-weight: 400;">Every year, telephone companies must report information to the National Communications Agency (Anatel), including technical and operational data. Granted permission by the regulatory agency’s directory, telephone companies could choose whether to omit or substitute certain pieces of data. Now, changes in data reports will have to pass through a public consultation. Anatel’s Superintendent of Competition will develop a new structure to encompass these structural changes.</span></p> <p><b>Other important facts you should know:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Anatel will stop requiring independent auditors to verify the reliability of economic-financial information presented by telephone companies. Auditors were required to check companies’ accounting records, as well as the methods used to allocate liabilities and assets across their corporations. Now, companies are responsible for consulting independent auditors. They must prove they have done so by presenting a document issued by the auditor. </span></li> </ul> <p><b>Source:</b><span style="font-weight: 400;"> Ordinance No. 714, July 15, 2019</span></p> <p>&nbsp;</p> <h2 style="text-align: center;"><b>HOUSING</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Minha Casa Minha Vida</b></h4> <p><span style="font-weight: 400;">Minha Casa Minha Vida is an initiative led by the federal government to create favorable conditions to fund housing for low-income families in urban areas. Previously, November 2019 was to the limit, after which housing could no longer be acquired through the project using funds from Service Assurance Fund (FGTS). This limit has now been abolished for houses that haven’t been built by construction companies, but that began construction before July 2017, have been granted official permission to be inhabited before November 2018, and have been inspected by the Federal Savings Bank at least once. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Ordinance No. 1735, July 16, 2019</span></p> <p>&nbsp;</p> <h2 style="text-align: center;"><b>LAND ISSUES</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Declaration on the Rural Territorial Tax</b></h4> <p><span style="font-weight: 400;">The rules for the declaration of this year’s Rural Territorial Tax have just been finalized. They are similar to last year’s rules, with a few exceptions. The main difference is that after this year, when filing the Rural Territorial Tax, owners must prove that their property is recorded under the Rural Environmental Registry by including the serial number of their registration receipt. Another difference is that registration information of rural properties and their holders will no longer be used to update information in the Rural Property Registry (Cadir). Previously, only properties larger than 50 hectares were exempt from presenting such information to Cadir. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Informative Instruction No. 1902, July 17, 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Water in Indigenous Lands</b></h4> <p><span style="font-weight: 400;">The National Water Agency defined a new procedure regarding requests for the use of water in indigenous lands and its surrounding territories. However, the resolution’s content has not been published in the Official Diary and is not yet included in the list of resolutions published in the Agency’s webpage. </span></p> <p><b>Other important points you should know:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">A separate measure defines how certain questions, such as the management of water sources, will be supervised. This has also not been published in the Official Diary nor has it been included on the Agency’s website. </span></li> </ul> <p><span style="font-weight: 400;">Source: Resolution No. 43, July 15 2019 and Resolution No. 42, July 15, 2019</span></p> <h2 style="text-align: center;"></h2> <p><span style="font-weight: 400;"> </span></p> <h2 style="text-align: center;"><b>INTERNATIONAL AFFAIRS</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Brazil in the OECD</b></h4> <p><span style="font-weight: 400;">With the possibility that Brazil might become a member of the Organization for Economic Co-operation and Development (OECD), the government has created the Brazil OECD Council. The committee will be small, comprised of the Chief of Staff plus ministers of the Economy, Foreign Relations and the General Secretariat. Chief of Staff Onyx Lorenzoni will lead the group. An administrative committee formed by members of these ministries will develop a strategy for Brazil’s accession to the OECD, presenting their plan to the rest of the council. The committee will also produce quarterly reports regarding Brazil’s preparation for accession to the OECD. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Decree No. 9920, July 18, 2019</span></p> <p>&nbsp;</p> <h2 style="text-align: center;"><b>CULTURE</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Cultural heritage</b></h4> <p><span style="font-weight: 400;">The National Institute of Historic and Artistic Heritage (Iphan) has developed new procedures for the reevaluation of the status of cultural goods considered to be a part of Brazil’s cultural heritage. Revaluation procedures have been around since 2013, but new modifications seem to increase bureaucracy. Under the new procedure, Iphan’s regional superintendents have 60 days, with the possibility for a 30-day extension, to deliver a revaluation of assets. </span></p> <p><span style="font-weight: 400;">This revaluation “should consider stakeholders, partners and other interested segments,” which indicates that the process can even include discussions of a religious nature, depending on the kind of cultural heritage under review. Iphan’s resolution also defines that in some cases, they may welcome “outside collaborators” to help gather information pertinent to the asset revaluation. Once this step is completed, the case will be evaluated by Iphan’s Department for Intangible Heritage and its Sectoral Chamber. After that, Iphan’s president should present the final document to Advisory Council of Cultural Heritage. </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Resolution No. 5, July 12, 2019</span></p> <p><span style="font-weight: 400;"> </span></p> <h2 style="text-align: center;"><b>POPULATION</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Autism in the Census</b></h4> <p><span style="font-weight: 400;">As of now, the demographic censuses will have to record cases of autism in Brazilian households. This comes in response to a 2012 legal provision that considers people with any level of autism to have disabilities for all legal purposes. The original proposal was presented by Deputy Carmen Zanotto (Cidadania, Santa Catarina). </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Law No. 13861, 18 July 2019

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