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:

Brazilian government authorized the eleventh round of Oil & Gas fields exploitation

The Oil and Gas industry in Brazil may now expect the eleventh round of fields exploitation, as it has been announced by the National Agency for Petroleum, Natural Gas and Biofuels (ANP) after a meeting between President Dilma Rousseff and Edson Lobão, the Minister of Mines and Energy, held on January 10, 2013.

Public bidding announcements are expected to be released next May, 2013 for the offering of 172 land and ocean fields, divided in 17 sectors among nine sedimentary basins: Barreirinhas, Ceará, Parnaíba, Espírito Santo, Foz do Amazonas, Pará-Maranhão, Potiguar, Recôncavo and Sergipe-Alagoas.

Detailed information is available in English at the official website Brasil-Round 11, from the National Agency of Petroleum, Natural Gas and Biofuels (ANP).