DECREE NO7,716, DE April 3, 2012

Regulation the Provisional Measure # 563,de April 3, 2012, in the part where it has on special tax credit scheme of the Industrialized Products-IPI to which they do jus the manufacturers of products classified under codes 87.01 a to 87.06 of the Table of Incidence of Tax on Industrialized Products-TIPI.

THE REPUBLIC OF THE REPUBLIC, in the use of the attribution conferring you the art. 84, caput, inciso IV, of the Constitution, and in view of the willing in the arts. 31 a to 35 of Provisional Measure No. 563 of April 3, 2012,

D E C R E T A:

Art. 1º The companies empowered to the Technological Innovation and Adding Program of the Automotive Chain Production Chain-INNOVAR-AUTO, instituted by Provisional Measure No. 563 of April 3, 2012, will make jus the presumed credit of the Tax on Industrialized Products-IPI, of maximum value corresponding to what would result from the application of the aliquot of thirty-two per cent on the basis of calculation provided for in IPI legislation, observed the provisions of this Decree.

§ 1º The value corresponding to up to thirty percentage points will be formed on the basis of the values of the acquisitions, in the calendar quarter immediately prior to what is ascertained the presumed credit, of materials, including ferraments, intended for the production of vehicles upon proven by means of tax notes.

§ 2º The materials originating in and originating in the States-Part of Mercosur will be considered for effect of application of the provisions of § 1º.

§ 3º The presumed IPI credit will be ascertained on a monthly basis upon the multiplication of the values of the acquisitions referred to § 1º per factor set in joint act of the State Ministers of Finance and Development, Industry and Foreign Trade.

§ 4º Exceptionally, for the calendar year 2013, the factor dealing with § 3º is set at 1.3 for cars and light commercial vehicles.

§ 5º The presumed credit that it treats § 3º will be used in the calculation of IPI due in the periods subsequent.

§ 6º The enabled company will also be able to ascertain monthly presumed IPI credit for the expenditures in research and development, limited to the value corresponding to the application of the one per cent aliquot on the IPI calculation basis in the month.

§ 7º The credit that it treats § 6º will be ascertained upon application, on the basis of calculation of IPI in the month, of the percentage of expenditures in research and development incurred in the quarter-calendar immediately prior to what is ascertained the credit, in respect of total gross proceeds from the sale of goods and services, excluded taxes and contributions incidents on the sale.

§ 8º The enabled company will also be able to ascertain monthly presumed IPI credit for the expenditures in engineering and basic industrial technology, limited to the value corresponding to the application of one per cent aliquot over the IPI calculation basis in the month.

§ 9º The credit that it treats § 8º will be ascertained upon application, on the basis of calculation of IPI in the month, of the percentage of expenditures in engineering and basic industrial technology incurred the quarter-calendar immediately prior to what is ascertained the credit, in respect of total gross proceeds from the sale of goods and services, excluded the taxes and incident contributions on the sale.

§ 10. The Company shall only be entitled to the presumed credit that it treats § 8º in relation to the percentage exceeding seventy-five per cent of the revenue referred to in § 9º.

§ 11. Credits that cannot be appropriate in accordance with the provisions of § § 1º, 6º and 8º may be used in subsequent months, by the end of the calendar year.

Art. 2º The enabled companies that come to settle in the Country and the new plants or industrial projects of already installed companies will be able to enjoy the presumed IPI credit, corresponding to thirty percentage points of the IPI incident on the basis of calculation of the tax on the exit of the vehicles imported from the importer establishment of the enabled company.

§ 1º The ascertaining of the presumed credit that it treats the caput will be made from the date established in the Company's habilitation, shall subsist for a maximum period of twenty-four months or up to the date of commencement of commercialization of vehicles produced as an investment project, and shall be bound by the fulfilment of the schedule constant of the said project.

§ 2º The amount of vehicles imported in the calendar year that will give right to credit ascertaining presumed is limited to fifty percent of the annual production capacity provided for in the approved investment project.

§ 3º Initiated the commercialization of the object vehicles of the investment project, it may be taken the assumed credit in the amount corresponding to fifty-five per cent of the debtor balance ascertained to each IPI span period.

§ 4º Joint Act of the State Ministers of the Finance and Development, Industry and Trade Exterior will be able to set annual limit on the quantity of vehicles that will give right the presumed credit generation on import.

§ 5º The characterization of imported vehicles that will give entitlement to the credit referred to in the caput will be fixed in act of the Ministry of Development, Industry and Foreign Trade, based on equivalence criteria for vehicles that will be produced in the Country.

§ 6º The import mentioned in the caput is to be effected directly by the company or by its account and order.

Art. 3º The enabled companies that come to settle in the Country and the new plants or projects of companies already installed that initiate the marketing of new vehicle models, respected the listing of Annex I, before March 31, 2017, will be able to use the credit of the IPI to which the arts refer. 1º and 2º, concomitant.

Art. 4º To qualify for the regime that treats art. 1º, the company is obliged to meet at least three of the following requirements:

I-carry out, in the Country, directly or through third parties, the minimum amount of activities manufactures and engineering infrastructure related in Annex II, as set timetable set out in the following table, in at least eighty per cent of the vehicles manufactured by it.

Automobines and Picapes:

ANNEX I

Commercial Vehicles:

ANNEX II

II-carry out, in the Country, expenditures in research and development based, at a minimum, in the percentage indicated in the following table, incidents on total gross proceeds of sale of goods and services, excluded taxes and incident contributions on the sale:

ANNEX III

III-realizing, in the Country, expenditon in engineering, basic industrial technology and development of suppliers based, at the very least, in the percentage indicated in the following table, incidents on total gross revenue from sale of goods and services, excluded taxes and incident contributions on sale:

ANNEX IV

IV-adhere to the Brazilian Program of Vehicular-PBEV Etiquets of the National Institute of Metrology, Quality and Technology-INMETRE, with suitability of the production of goods related in Annex I, to the said Program, in the minimum percent of:

ANNEX V

§ 1º In relation to vehicles classified under the codes listed in Annex III, the Company shall meet at least two of the requirements set out in this article, not by applying the willing requirement in the inciso IV of the caput.

§ 2º The values ascertained in accordance with the provisions of the inciso II of the caput must be applied in the activities of:

I-directed basic research, consisting of the work performed with the aim of acquiring knowledge as to the understanding of new phenomena, with a view to the development of innovative products, processes or systems ;

II-applied research, consisting of the work performed with the aim of acquiring new knowledge, with views to the development or enhancement of products, processes and systems ;

III-experimental development, comprised of the systematic work outlined from pre-existing knowledge, aiming at the demonstration or demonstration of the technical or functional feasibility of new products, processes, systems and services or, still, an evident improvement of those already produced or established ; and

IV-technical support services, thus considered those that are indispensable to the deployment and the maintenance of the facilities or equipment intended exclusively for the execution of research, development or technological innovation projects, as well as the empowerment of the human resources dedicated to them, directly linked to the activities related in the incisos I, II and III of this paragraph.

§ 3º The values ascertained in accordance with the provisions of the inciso III of the caput must be applied in the activities of:

I-technological innovation, the design of new product or manufacturing process and the aggregation of new functionalities or characteristics to the product or process that entails incremental and effective improvements in quality gain or productivity, resulting greater competitiveness in the market ;

II-basic industrial technology, such as the calibration and calibration of machinery and equipment, the project and the confection of specific measuring instruments, the certification of conformity, including the corresponding essays, standardization or technical documentation generated and the patenting of the developed product or process ;

III-personnel training dedicated to research, development and innovation ;

IV-development of products, including vehicles, systems and their components, auto parts, machines and equipment ;

V-construction of technology development labs in automotive safety, active and passively ;

VI-construction of laboratories of development of new reduction technologies in the emission polluting gases ;

VII-construction of style development labs and design;

VIII-development of tooling, moulds and models for moulds, instruments and apparatus industrial and quality control, new, and the respective accessories, spare parts and spare parts, used in the productive process ; and

IX-capacitor empowerment, as set out in act of the Minister of State of the Development, Industry and Exterior Trade.

Art. 5º The investments in research and technological development and engineering and basic industrial technology of which deal with the incisos II and III of the art's caput . 4º:

I-should be carried out, in the Country, by the legal person benefiting from the IPI credit:

a) directly ; or

b) through university hiring, research institution, specialized company or by independent inventor that it treats the inciso IX of the caput of the art. 2º of Law No. 10,973 of December 2, 2004 ;

II-will not be able to cover the donation of goods and services and the destination for values on the grounds of fruition of any other tax benefit or incentive ;

III-will be able to cover the targeting of resources to the National Scientific Development Fund and Technological-FNDCT, in the case of investments in research and technological development ;

IV-shall take the basis of total gross proceeds of sale of goods and services, excluded taxes and contributions incidents on the sale, ascertained in the year-calendar ; and

V-shall observe the procedures laid down in joint portion of the State Ministers of the Science, Technology and Innovation and Development, Industry and Exterior Trade.

Art. 6º May apply for enabling INOVAR-AUTO the companies that come to install themselves and those already installed that they will be able to implement investment projects for the production, in the Country, of new models of goods related in Annex I.

§ 1º The investment project should contain:

I-prediction of inception and termination of investment ;

II-prediction of annual production capacity ; and

III-other information, which should be submitted in accordance with the established model by the Ministry of Development, Industry and Exterior Trade.

§ 2º Companies already installed, in the Country, will be able to submit project for the installation of new plant industrial or for manufacturing of new vehicle model that represents new production line.

§ 3º When carried out by companies that come to settle in the Country, the expenditures set forth in the incisos II and III of the caput of the art. 4th could be reduced by up to forty per cent in the first year and up to twenty per cent in the second year, counted from the start year of commercialization of the project's object vehicles.

§ 4º Reached the minimum percentage of expenditures to which they refer to the incisos II and III of the caput from art. 4º, with the application of the reduction in which it treats § 3º, IPI credits will be calculated on the basis of the percentage effectively realized.

Art. 7º The habilitation of the beneficial companies is conditioned to:

I-approval of the investment project submitted or, in the case of companies already installed, of the habilitation request, in accordance with the model established by the Ministry of Development, Industry and Foreign Trade ;

II-regularity in relation to federal tributes and the proven delivery of Fiscal Office Digital-EFD, pursuant to the Adjustment SINIEF No 2 of April 3, 2009 ; and

III-subscription of compromise term, in which they will be related to commitments and rights of the company, until March 31, 2017.

§ 1º The habilitation will be granted, by the Ministry of Development, Industry and Foreign Trade, with validity of up to twelve months, which may be renewed, on request of the Company, having as its validity limit the date of March 31, 2017, conditional on compliance with the commitments made.

§ 2º In the case of the companies that come to settle the requirement set by the inciso II of the caput should be proven from the start of production of the approved project's object vehicles.

Art. 8º The presumed credit of the IPI to which the arts refers. 1º and 2º should be taken advantage of in the exit of the vehicles manufactured by the enabled company of its industrial establishments.

Single Paragraph. In the case of the presumed credit referred to in art. 2º, the exploitation can only occur from the beginning of the commercialization of the object vehicles of the project.

Art. 9º To make it possible to take advantage of the assumed credit of IPI in accordance with the provisions of the art. 8º, the Office of the Brazilian Federal Revenue Office of the Ministry of Finance may:

I-establish IPI's distinguished highlight procedure in the exit tax bill of the establishments manufacturers and importers of the products classified under headings 87.01 a to 87.06 of TIPI, approved by Decree No 7,660 of December 23, 2011 ; and

II-condition the fruition of the presumed credit to the observance of specific ancillary obligations.

Art. 10. It will be up to the Ministries of Science, Technology and Innovation and Development, Industry and Trade Exterior to verify compliance with the requirements of which this Decree.

§ 1º For the purposes of the caput the enabled company is expected to report as per model to be established by:

I-Ministry of Science, Technology and Innovation, reporting on activities and expenditures in research and development ; and

II-Ministry of Development, Industry and Foreign Trade, informing the expenditures in engineering, basic industrial technology and server development and, quarterly, on the execution of INOVAR-auto.

§ 2º Joint Action of the Ministers of State for Science, Technology and Innovation and Development, Industry and Trade Exterior will set minimum energy efficiency levels for vehicles produced by the companies enabled in the INNOVAR-AUTO.

Art. 11. Verification of the fulfillment of the requirements will be made, annually, by audits carried out by Union-accredited entities, which will be remunerated by the beneficiary companies of the INOVAR-AUTO.

Art. 12. The company will have cancelled the habilitation when it demonstrated that it did not meet or have ceased to meet the requirements for the habilitation or any of the commitments made.

Single Paragraph. The cancellation of the enabling:

I-will be carried out by joint act of the State Ministers of Development, Industry and Exterior Trade, Science, Technology and Innovation and the Finance ;

II-will produce effects from the date of disfulfilment of the requirements, or from the date of habilitation in the hypothesis where it is found that the company did not meet the requirements for the habilitation ; and

III-will entail the obligation to collect the tax that has ceased to be paid, with the additions provided for in tax legislation and the loss of the presumed credit balance still existing on the date of cancellation of the habilitation.

Art. 13. The credits to which the arts refer. 1º and 2º can be enjoyed in conjunction with the benefits provided for in the arts. 11-A and 11-B of Law No. 9,440, March 14, 1997, at art. 1º of Law No. 9,826 of August 23, 1999, and, still, with the special taxation regime of which it treats art. 56 of Provisional Measure No. 2.158-35 of August 24, 2001.

Art. 14. The Ministries of Development, Industry and Exterior Trade, Science, Technology and Innovation and the Finance will be able to edit acts complementary to the provisions of this Decree.

Art. 15. It is instituted Monitoring Group composed of representatives of the Ministries of Finance, Development, Industry and Foreign Trade and Science, Technology and Innovation, designated by joint act, with the aim of defining the criteria for the accreditation of audits, and the criteria to monitor the impacts of this Decree in terms of production, employment, investment, innovation, price and value aggregation.

Art. 16. The art. 2º of Decree No 7,567 of September 15, 2011, passes vigorously with the following essay:

" Art. 2º ....................................................................................

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§ 8º In the case of bodywork assembly or bodywork and cabin over chassis, which result product classified under codes 8704.2, 8704.3 or 8704.90.00 from TIPI, the reduction of which treats the caput can be enjoyed by the company performing the operation, regardless of enabling and fulfillment to the requirements of which it treats the inciso III of § 1º, provided that:

I-the manufacturer of the chassis has, as for this product, enjoyed by the reduction of IPI under this Decree ; or

II-the company performs the operation of industrialization on used chassis belonging to the commissioning of the assembly operation. " (NR)

Art. 17. This Decree goes into effect on the date of its publication, producing effects, in relation to the arts. 1º to 3º, 8º, 10, 11 and 13, starting from 1º January 2013.

Brasilia, April 3, 2012 ; 191º of the Independence and 124º of the Republic.

DILMA ROUSSEFF

Guido Mantega

Fernando Damata Pimentel

Marco Antonio Raupp

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