DECREE NO. 3,467, OF May 17, 2000.

Promults the Agreement between the Federative Republic of Brazil and the Argentine Republic for the Functioning of the Single Border Centre Are Borja-Santo Tomé, celebrated in Brasilia, on November 10, 1997.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers it on art. 84, inciso VIII, of the Constitution;

CONSIDERING that the Government of the Federative Republic of Brazil and the Government of the Argentine Republic have concluded, in Brasilia, on November 10, 1997, an Agreement for the Functioning of the Center Single of Frontier Saint Borja-Santo Tomé;

CONSIDERING that the National Congress has approved this Agreement through Legislative Decree No. 92 of October 18, 1999;

CONSIDERING that the Agreement has entered into vigour on March 28, 2000, we have the temper of your art. XVI;

Decreta:

Art. 1º The Agreement between the Federative Republic of Brazil and the Argentine Republic for the Functioning of the Single Frontier Center Saint Borja-Santo Tomé, celebrated in Brasilia, in 10 of november 1997, apensed by copy to the present Decree, will be executed and fulfilled as entirely as it contains.

Art. 2º Are subject to National Congress approval any acts that may result in revision of the said Agreement, as well as any further adjustments that, we have of the art. 49, inciso I, of the Constitution, carries charges or gravy commitments to the national heritage.

Art. 3º This Decree comes into force on the date of its publication.

Brasilia, May 17, 2000; 179º of the Independence and 112º of the Republic.

Fernando Henrique Cardoso

Luiz Felipe Lampreia

Agreement between the Federative Republic of Brazil and the Republic of Argentina for the Operation of the Single Frontier Center Saint Borja-Santo Tomé

The Government of the Federative Republic of Brazil

and

The Government of the Argentine Republic

(henceforth named Contracting Parties),

In view of the need to establish additional rules to the Recife Agreement and supplementary standards for the operation of the Unified International Bridge Boundary Centre are Borja-Santo Tomé,

Wake up the following:

Article I

For the purposes of this Agreement:

a)?Unified Frontier Center? -CUF-means the area bounded as per the International Grant Contract, based on the Argentine side, contiguous to the International Bridge São Borja-Santo Tomé, for purposes of ingress control and exit of persons, goods and means of transportation, as well as for the provision of correlated services (public or private);

b) the Unified Border Centre comprises the Integrated Control Area and too much facilities, in compliance with the International Contract of Grant;

c) Is it considered customs the area of the Unified Frontier Centre;

d)?Area in Grant? means the area defined in the International Grant Contract.

Article II

The ticket, transit and exit of the workers hired by the private companies that provide services at the Unified Frontier Center will be authorized by COMAB according to the exercise area of the worker's activity, upon request from the Concessionaire.

Article III

Access to the Unified Border Centre of the public servants of the Contracting Parties, for the exercise of their duties, shall observe the provisions of the Recife Agreement.

Article IV

It is free the transit of the entire staff of the Concessionaire and its subcontractors, as long as duly accredited, within the Area in Grant, for the exercise of their activities, the standards of the Concession Operation Regulation.

Single paragraph. In the Integrated Control Area, the disciplining of the entry, stay and movement of persons will be borne by the coordinating bodies of the Contracting Parties, we have the MERCOSUR Resolution MERCOSUR No 03/95.

Article V

In the CUF will be delimited the Brazilian exclusive space and the Argentine, which will be situated on both sides of the?Point of Frontier? in accordance with the drawing approved by COMAB. In the Brazilian exclusive space will it extend to the tax jurisdiction, pension and labor law of the Federative Republic of Brazil to the private economic activity that develops in the?Private Services zones?, to the extent that such services are permitted to exercise their activities by COMAB and are necessary for the normal development of the tasks carried out in the CUF.

Article VI

1. For the purposes of applying for indirect tax incidents on the services provided by the concessionaire, or by whom to pay them in their place, within the framework of the CUF, the legislation of the country of provenance corresponding to the flow of vehicles of the customers or users, to the extent that the cited services have as object satisfy users ' needs and by which they receive a payment on the part of those.

2. In cases where service benefits do not meet the previously stated requirements, they will be taxed in accordance with the legislation of your country of residence (physical persons) or where you have the companies your tax domicile (persons legal).

3. For the application of the direct tributes that correspond to the Concessionaire, these will be circulated as per the specific tax legislation of the Argentine Republic, distributing the collection obtained in the reason of fifty percent for each Part.

4. For the application, surveillance, reception and collection of the tributes referred to in the preceding paragraph-including the penalties that may correspond-will apply to the prevailing tax legislation in the Argentine Republic.

Article VII

It is free to hire by the Concessionaire or its subcontractors, of physical persons residing in the States Parties, to provide services in the area in concession.

Paragraph 1º: Apply for the State Party's labor and tax legislation Party in which the employer has its tax domicile, regardless of the worker's nationality.

Paragraph 2º: In what tange to Social Security, will observe the provisions of the Agreement of August 20, 1980, for workers residing in a country other than that of their employer, until the matter is regulated. Due to the two-year period authorized by the said Agreement without having been regulated the matter, it will be mandatory for the employer to assure the employee the effective payment of the previdentiary aports.

Article VIII

Workers who exercise their duties at the CUF, whatever their nationality, are expected to have their temporary or permanent residence in the country borrophe or the country's home country.

Article IX

Workers will enter the CUF under special migratory conditions, as provisions set forth by the competent authorities of the Contracting Parties, with the unique and exclusive goal of fulfilling your work contracts within the perimeter of the CUF, returning to your country of residence at the end of the work journey.

Article X

Workers will be able to benefit from the special migratory conditions referred to in the previous Article during the duration of their respective contracts for work.

Article XI

During the term of the Grant, the ingress, circulation and exit of vehicles, equipment and materials owned by the concessionaire, its subcontractors and physical or legal persons exercising activities at the CUF, coming from of Brazil, Argentina or third countries, must be joined by simplified procedures and by the temporary admission scheme, as certified by COMAB/DELCON.

Paragraph 1º: The goods, materials and equipment that is permanently incorporated into the concession's patrimony will be free of any import burden.

Paragraph 2º: At the end of the Grant period, the goods that are not incorporated into the estate of the concession or that they return to any of the States Parties, if these do not originate, shall be subject to the procedures of a common import.

Article XII

It will not be of application the one set out in the previous Article for the goods originating from third countries intended for marketing, which they must join with the tributes affecting the import complying with the formalities of the dispatch Customs.

Article XIII

COMAB, will act with liaison between the Concessionaire and the coordinating bodies indicated in the GMC Resolution 03/95, to ensure the means necessary for the functioning of the CUF.

Article XIV

1. The Contracting Parties undertake to encourage the installation of banking institutions in the CUF. Institutions which are indicated by the administrative authorities of any of the Contracting Parties will be allowed to settle in the CUF.

Paragraph 1º: The said institutions will be subject to the regulations of the Central Banks of their respective countries, relating to all banking operations connected to international freight traffic, international trade operations and international transport of goods and persons and operations correlates to be developed at the CUF, thus getting obliged to instrument their operation on a daily basis, in uninterrupted character.

Paragraph 2º: The payment of contributions, tributes, gravels, fees, which one should carry out as per the legislation of the Contracting Parties, may be effected in the branch of the Brazilian banks or Argentines located in the CUF.

Paragraph 3º It is free to circulate monetary values practiced by service providers or merchants established in the CUF.

For the purposes of controlling and requiring records of the legal persons acting within the CUF, the standards corresponding to the country of constitution of these are applied.

Article XV

Any communication that produces within the CUF with the territories of the thirst and borrolean countries, will be considered internal communication of each country. For this purpose, the communication companies of the borroid country are allowed to install the means necessary to propitiate the communication in the CUF.

Single paragraph. The provisions of the final part of this Article covers telephone, satellite and radio communications.

Article XVI

Each Party shall notify the other of the compliance of the internal formalities necessary for the entry into force of this Agreement, the duration of which shall begin on the date of the last of these notifications.

Done in Brasilia on November 10, 1997 in two original copies, nos languages, Portuguese and Spanish, being both also texts being equally authentic.

By the Government of the Federative Republic of Brazil Luiz Felipe Lampreia Minister of State for Foreign Relations

By the Government of the Argentine Republic Guido di Tella Minister of Foreign Affairs