Special customs regime for the Oil & Gas industry in Brazil

The special Brazilian customs regime REPETRO allows companies to import specific equipments to be used in research and exploitation of oil and natural gas fields, with the exemption of federal taxes such as the following:

  • II – Import tax;
  • IPI – Excise tax;
  • PIS – Contribution to the social inclusion program;
  • COFINS – Contribution to the social security financing;
  • AFRMM – Additional freight for the renewal of the merchant navy.

The goods which REPETRO may be applied to are listed under the sole appendix of the Normative Resolution RFB 844. The resolution determines the general ruling of the special fiscal regime, including licensing requirements and conditions.

In general, the regime may be applied to a) Fictitious exporting of equipment, when it is bought from a national supplier by a foreign company in order to be used in national territory. In this case, the product is re-imported under “temporary admission” conditions; b) Temporary admission to products bought from national suppliers by the national licensee; and c) The Drawback regime, applied to the importing of industrial supplies for the production of goods destined to fictitious exporting.

Further legislation details may be found at the following Federal Reserve site:

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