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What is a beer in Brazil?

President Jair Bolsonaro struck down beer regulations, allowing producers to remove barley from their recipes. Prior to that, a drink would only be considered beer if non-malted cereals amounted to no more than 45 percent of its formula. For years, mainstream producers have used corn and rice up to that limit, for cost-saving purposes. Now, as long as

ingredients feature on labels, there is no limit.</span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Ingredients of animal origin can now be added, such as honey. Craft producers celebrated the rule. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The new legislation ends the need to specify beer color, alcohol volume, or even denominations such as &#8220;lager&#8221;, &#8220;pilsen&#8221;, &#8220;weiss&#8221; and so on, on the label.</span></li> </ul> <p><b>Source: </b><span style="font-weight: 400;">Decreto nº 9.902, de 8 de julho de 2019</span></p> <h4></h4> <h4><b>Tequila regulations</b></h4> <p><span style="font-weight: 400;">The Agriculture Ministry published a norm specifying that a beverage can only be called &#8220;tequila&#8221; if it meets production standards set by the Mexican government. Parameters like minimum and maximum alcohol content will now be subject to explicit regulation.</span></p> <p><b>Source: </b><span style="font-weight: 400;">Instrução Normativa nº 22, de 9 de julho de 2019</span></p> <p>&nbsp;</p> <h2 style="text-align: center;"><b>BANKS AND FINANCIAL SYSTEM</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Credit control</b></h4> <p><span style="font-weight: 400;">The Central Bank has decided to force credit-issuing institutions to inform the national Credit Information System (SCR) of each operation according to a standardized identifier (specifying the nature of the operation: leases or loans for example). </span></p> <p><b>Source:</b><span style="font-weight: 400;"> Circular nº 3.953, de 10 de julho de 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Selic rules</b></h4> <p><span style="font-weight: 400;">The Central Bank now forces banks, brokerage firms, share distributors, and other financial institutions to become a part of Selic (the Special Clearance and Escrow System). Although Selic is known for setting Brazil&#8217;s benchmark interest rate, it is actually a Central Bank-controlled system where bonds are issued by the Treasury Department. The system is used for inter-bank loans.</span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Besides many other operations that already allowed, the system can now operate bond transfers issuing from inheritance, donations, divorce, among others.  </span></li> </ul> <p><b>Source: </b><span style="font-weight: 400;">Circular nº 3.954, de 10 de julho de 2019</span></p> <h1></h1> <h2 style="text-align: center;"><b>TAXES</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Manaus Free Trade Zone</b></h4> <p><span style="font-weight: 400;">President Bolsonaro named the ministers of Education, Science &amp; Technology, and Tourism to the board of administrators of the Manaus Free Trade Zone. The board was left with fewer members than before, as ministries which used form part of it were dissolved or collapsed into other, larger ministries. The move could be aimed only at filling the vacancies—or it might impact which projects will be considered for future tax exemptions.</span></p> <p><b>Source: </b><span style="font-weight: 400;">Decreto nº 9.912, de 10 de julho de 2019</span></p> <h1></h1> <h2 style="text-align: center;"><b>ENVIRONMENT</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Atlantic Forest suppression</b></h4> <p><span style="font-weight: 400;">In February, a norm by Brazil&#8217;s environmental agency (Ibama) set ground rules for giving the green light to deforestation of the Atlantic Forest area for construction ventures in general. The government tweaked those rules, giving more power to local environmental secretariats. Local authorities will now have two appeals to higher Ibama levels if their motion to grant authorization for the clearing of forest area is denied by local Ibama offices. Ultimately, the decision may fall to Ibama&#8217;s president&#8217;s office. </span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">If deforestation is carried out without authorization, the so-called &#8220;environmental compensation&#8221; will be of twice the deforested area—nothing less, nothing more. That was previously the minimum penalty.</span></li> </ul> <p><b>Source:</b> <span style="font-weight: 400;">Instrução Normativa nº 20, de 4 de julho de 2019</span></p> <h1><b> </b></h1> <h2 style="text-align: center;"><b>INFRASTRUCTURE</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Determining road project viability</b></h4> <p><span style="font-weight: 400;">Since 2018, Brazil&#8217;s National Transportation Infrastructure Department (Dnit) has delegated to regional superintendencies the role of elaborating, analyzing and approving studies to determine the viability of road projects. However, the body never bothered to assess the qualifications of the teams that would be charged with the task. Now, the Dnit board in Brasília will have to vet local analysts by November 15.</span></p> <p><b>Source:</b> <span style="font-weight: 400;">Portaria nº 4.675, de 4 de julho de 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Harsher Traffic Code</b></h4> <p><span style="font-weight: 400;">The act of driving school transportation vehicles without specific authorization has now become a “very serious” offense (previously just “serious”)—with transgressors to be fined and have their vehicles impounded. Unlicensed transportation services in other situations will also face harsher penalties: fines and vehicle impoundment. The law comes into effect within three months.</span></p> <p><b>Source:</b> <span style="font-weight: 400;">Lei nº 13.855, de 8 de julho de 2019</span></p> <p><b> </b></p> <h2 style="text-align: center;"><b>ENERGY</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Opening up the fuel sector</b></h4> <p><span style="font-weight: 400;">In its effort to liberalize the fuel market in general, and natural gas commercialization specifically, the National Petrol Agency (ANP) published two resolutions implementing concrete changes. The first ends the so-called &#8220;destination restriction clause&#8221;, present in most contracts between gas producers and distributors. These were instruments that prevented buyers from making arbitrage gains from re-selling gas in areas with a greater return. Now, distributors can resell fuels in any market they want. Changes will be enforced in August—with the exception being natural gas, for which new regulations come into effect in two months.</span></p> <p><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">In a push for more transparency, ANP will now force companies to publicize their sale prices. The agency will also publicize data on the volume of fuels sold. However, as other sources for pricing information appear, the agency will halt its monthly reports. </span></li> </ul> <p><b>Source: </b><span style="font-weight: 400;">Resolução nº 794, de 5 de julho de 2019, Resolução nº 795, de 5 de julho de 2019</span></p> <p style="text-align: center;"> <h4><b>Reducing energy consumption</b></h4> <p><span style="font-weight: 400;">Late in 2017, the National Electric Power Agency (Aneel) launched a pilot program to reduce energy consumption. Instead of activating coal-based thermal plants if energy from cleaner sources was down, the program would give big consumers (like industries) financial compensation for the reduction of their consumption—specifically in the North and Northeast regions. The program should have ended on June 30, but was extended until December 27. Only two firms  (Braskem and Cimento Apodi) adhered to the program in its first ten months. At the time, Aneel identified bottlenecks for companies to join the program, such as geographical restrictions.</span></p> <p><b>Source: </b><span style="font-weight: 400;">Resolução Normativa nº 849, de 2 de julho de 2019</span></p> <p><b> </b></p> <h2 style="text-align: center;"><b>PUBLIC ADMINISTRATION</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Budget cuts on one side&#8230;</b></h4> <p><span style="font-weight: 400;">Last week, the House approved, in the first of two rounds of votes, pension reform. That was only possible after the government promised to comply with a series of demands from lawmakers, including BRL 1 billion allocated to housing projects. The cash-strapped administration said yes, which implicated cuts in several other areas of government. Here we list the main cuts—mostly to the education budget.</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Support to basic education development: BRL 10.1 million</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Scholarships to university degrees: BRL 20.7 million</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Support to federal universities: BRL 14.8 million</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Infrastructure for basic education: BRL 15 million (of which BRL 12 million was to be spent on building works).</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Census (demographic, agricultural, and geographical): BRL 1.71 million</span></li> </ul> <p><b>Source: </b><span style="font-weight: 400;">Portaria nº 169, de 11 de julho de 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>&#8230;more spending on the other</b></h4> <p><span style="font-weight: 400;">The president signed a law into effect allowing the federal budget to be used to finance the acquisition, construction, beautification, and leasing of real estate to be used by members of Congress, Supreme Court justices (and member of superior courts in general), the prosecutor general, and the public defender. This was not in the original bill. Originally it was only intended to give BRL 223m in bonuses to civil servants working in the National Social Security Institute (INSS), as compensation for their intensive work to analyze irregular benefits.</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 money to pay for the bonuses will come from the education budget. More specifically, from vacant, better-paying teacher positions that won&#8217;t be filled. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The law also greenlights the purchase of cars for the president, the vice president, and former heads of state.</span></li> </ul> <p><b>Source: </b><span style="font-weight: 400;">Lei nº 13.857, de 11 de julho de 2019 and Lei nº 13.858, de 11 de julho de 2019 </span></p> <p><b> </b></p> <h2 style="text-align: center;"><b>PUBLIC SECURITY</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Funding public safety</b></h4> <p><span style="font-weight: 400;">The National Fund for Public Safety receives 5% of everything raised by the federally-owned lottery. Now, half of that pie will be shared with state administrations, based on eight criteria, among which are units exclusively dedicated to fighting corruption. States with higher crime rates will also get a bigger share. Per the established rules, the states to receive the most money are São Paulo, Mato Grosso do Sul, Rio de Janeiro, Goiás, and Amazonas. These are the criteria, and the volume of the fund associated to each:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Population: 15%</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Police efficacy and social indicators: 15%</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">High violent crime rates: 40%</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Low violent crime rates: 5% to the 10 states with better rates</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Biggest crime rate reduction: 5% to the top 10 states which reduced rates</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Border states: 10%</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Complying with the use of the federal DNA database: 5%</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Having an anti-corruption division in state police forces: 5%</span></li> </ul> <p><b>Source: </b><span style="font-weight: 400;">Portaria nº 631, de 6 de julho de 2019</span></p> <p><b> </b></p> <h2 style="text-align: center;"><b>SCIENCE AND TECHNOLOGY</b></h2> <h2 style="text-align: center;"></h2> <h4><b>Personal data protection</b></h4> <p><span style="font-weight: 400;">President Jair Bolsonaro sanctioned, with a few relevant vetoes, the law creating National Data Protection Authority (ANPD) and altering the General Data Protection Law (LGPD). Despite being attached to the president&#8217;s office, the ANPD can become an autonomous administrative entity in two years. However, as of its inception, the agency will have technical and decision-making autonomy. Its board of advisors will need to be confirmed by the Senate.</span></p> <p><span style="font-weight: 400;"> </span><b>Other important aspects to bear in mind:</b></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The agency will have to create simplified procedures for small-size companies to comply with LGPD without major impacts on their business. </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The National Data Protection council will have 23 seats, three of which will be named by companies&#8217; representatives, and two by labor unions.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">A change in the law left a loophole so that, if someone asks a data controller to have their personal information made anonymous, the data controller will no longer be obligated to share data with their peers with whom they had previously shared information. That goes for cases in which this effort demands &#8220;disproportional measures.&#8221;</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Fines issued by ANPD will be destined to the Fund in Defense of Diffuse Rights.</span></li> </ul> <h4><b>Mr. Bolsonaro&#8217;s most important vetoes:</b></h4> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Decisions made by algorithms will no longer have to be reviewed by humans if the data&#8217;s owner demands it, e.g. for credit-scoring purposes. The veto was issued as it would “go against the public interest, making business plans for many companies, startups especially, not viable.”</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Bolsonaro also vetoed the protection of personal data of applicants requesting information under the Information Access Law, which would have prohibited that the data be shared amongst public authorities, as well as with private enterprises.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Data Protection Officers in companies will no longer necessarily have to be someone with regulatory knowledge.</span></li> </ul> <p><b>Source:</b><span style="font-weight: 400;"> Lei nº 13.853, de 8 de julho de 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Open data</b></h4> <p><span style="font-weight: 400;">Data made available by the federal government can now be accessed by all public bodies, including the Legislative and Judiciary branches of government, as well as state- and municipal-level administrations. Databases of government intellectual property (including anthologies, encyclopedias, and dictionaries) can be freely accessed by anyone.</span></p> <p><b>Source: </b><span style="font-weight: 400;">Decreto nº 9.903, de 8 de julho de 2019</span></p> <h2 style="text-align: center;"></h2> <h4><b>Cryptocurrencies</b></h4> <p><span style="font-weight: 400;">For cryptocurrency owners living abroad, information such as country of residence, address, and fiscal identification number will only be necessary as of January 2020. For those in Brazil, it will no longer be necessary to divulge the cryptocurrency wallet of remittances and receipts. The only exception is if the owner is subpoenaed.</span></p> <p><b>Source: </b><span style="font-weight: 400;">Instrução Normativa nº 1.899, de 10 de julho de 2019</span></p> <p>

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