BRAZIL

SUBSIDY PROGRAMS: GENERAL
Last Changes Made June 2006


Effective February 15, 2000, Import Administration began publishing "Decision Memos" to reduce the size of antidumping and countervailing duty Federal Register notices. In cases in which a decision memo was published, you will find a link to the memo listed below.

In addition, in the following programs, in instances below in which a proceeding was a Sunset Review, you will see the letters SR after the product name.


COUNTERVAILABLE SUBSIDY PROGRAMS

The subsidy programs listed below have been investigated by the Department and have been found to be "countervailable" in the cases listed and during the periods reviewed based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on The subsidy program title for a full explanation on the Department's analysis in each case where the subsidy program has been examined.

Accelerated Depreciation for Brazilian-Made Capital Goods

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82)
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final) not used
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final)
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final)
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final)
Certain Stainless Steel (1983)(1985) 51 FR 39697 (10/30/86-prelim);   51 FR 45376(12/18/86-final)
Certain Stainless Steel (1981/82) 47 FR 52207 (11/19/82-prelim);   48 FR 21610 (5/13/83-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Pig Iron (1991) 58 FR 6246(1/27/93-prelim);   58 FR 16398(3/26/93-final) not used
Pig Iron (1990) 57 FR 3185 (1/28/92-prelim);   57 FR 10460 (3/26/92-final) not used
Pig Iron (1989) 56 FR 5401 (2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim) not used
Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final) not used
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final) not used
Tillage Tools (1996) 63 FR 37532 (7/13/98-prelim);   63 FR 52685 (10/01/98-final)not used
Tillage Tools (1995) 62 FR 36771 (7/09/97-prelim);   62 FR 52973 (10/10/97-final) not used
Tillage Tools (1994) 61 FR 39949 (7/31/96-prelim);   61 FR 51681 (10/3/96-final) not used
Tillage Tools (1993) 60 FR 39933 (8/4/95-prelim);   60 FR 48692 (9/20/95-final)
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final) not used
Tool Steel (1983-85) 51 FR 39698 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)
Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended not used

Pursuant to Decree-Law 1137, any company which purchases Brazilian made equipment and has an expansion project approved by the CDI may depreciate this equipment at twice the rate normally permitted under Brazilian tax laws.

ACESITA Debt-for Debt Swap

Hot-Rolled Lead and Bismuth Steel Products (1991) 57 FR 42980 (9/17/92-prelim);   58 FR 6215 (1/27/93-final)

The debt-for-debt swap transaction in which the company, ACESITA, engaged in 1990 reduced its loan obligation substantially. Brazilian companies with foreign-denominated debt governed by resolution 4131 are required to service such debt through local currency payments processed through the central bank. Following the suspension of convertibility, the Central Bank issued negotiable notes known as Multi-Year Deposit Facility Agreement Certificates, or MYDFA's, in lue of the foreign currency due the creditor. Because of certain restrictions, and because MYDFA's are negotiable, they began selling at less than par value in secondary markets. Companies can then purchase theses instruments in the secondary market, using foreign currency, at extreme discounts, thereby substantially reducing the risk associated with the debt.

Financing for the Acquisition or Lease of Machinery and Equipment through the Special Agency for Industrial Financing

Cold-Rolled Carbon Steel Flat Products (2000) 67 FR 9652 (3/4/02-prelim);   67 FR 62128 (10/3/02-final);   Final Memo
Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended

The FINAME program, which is administered through BNDES and agent banks throughout Brazil, was established in 1966 by Decree No. 59.170 of September 2, 1966 and Decree/Law No. 45 of November 18, 1966. FINAME loans provide capital financing to companies located in Brazil for the acquisition or leasing of new machinery and equipment. Most FINAME financing is provided for new machinery and equipment manufactured in Brazil. FINAME financing is available for non-Brazilian machinery only when domestically-manufactured machinery is unavailable. We determined this financing to be specific because they constitute an import substitution subsidy, loans to lease equipment are limited to only Brazilian-produced machinery and these loans provide a financial contribution in the form of a direct transfer of funds.

FINEX Export Financing

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Heavy Iron Construction Castings (SR) 70 FR 24529 (5/10/05-final);   Final Memo
Heavy Iron Construction Castings (SR) 64 FR 30313 (6/7/99-final)
Heavy Iron Construction Castings (1990) 56 FR 58879 (11/22/91-prelim);   57 FR 2252 (1/21/92-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final)
Light Iron Construction Castings (1984) 52 FR 2322 (6/19/87-prelim);   Final info in Heavy Iron Construction Castings 51 FR 9491 (3/19/86-final)

Resolution 509 of the Conselho Nacional do Comercio Exterior (CONCEX) provides that CACEX may draw upon the resources of the Fundo de Financiamento Exportaxa (FINEX) to subsidize short- and long-term loans to foreign importers of Brazilian goods. The loans are extended to the importer by a bank in the importer's country at interest rates set by FINEX. These interest rates are based on LIBOR plus a spread. CACEX will in turn provide the lending bank, via a correspondent bank in Brazil with an "equalization fee" which makes up the difference to the bank between the subsidized interest rate and the prevailing commercial rate. CACEX also provides the lending bank with a "handling fee" equal to two percent of the loan principal to encourage foreign bank participation in the program. Use of Resolution 509 FINEX financing is contingent upon exports, and is contervailable to the extent that it is offered on preferential terms.

Government Assistance in Repaying Foreign Loans

Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)

The Aviso GB-588 program provides that under certain circumstances the Brazilian government, through the BCB, will assume the obligations for hard currency debts of state-owned companies which have overseas debt. Those companies are then required to pay the BCB in cruzeiros. The cruzeiro amount is based upon the dollar exchange rate on the date of repayment, but until the BCB has renegotiated the national debt the terms of repayment are unknown. Private companies that negotiate their own debt restructuring directly with creditor banks are not included in this program. Since the terms of the moratorium are not yet known, the Department treated it as a zero-interest, short-term loan equal to the amount of principal and interest payable during the review period.

Incentives for Trading Companies (Resolution 643)

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final) not used
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42026 (11/2/87-final) Under Resolution 883 in prelim
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final)
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final) not used
Certain Scissors and Shears (1981/82) 50 FR 11929 (3/26/85-prelim);   51 FR 45369 (12/18/86-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final)
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843(1/9/87-final)
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final)
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim)
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final) not used

CACEX declares trading companies eligible to receive loans at preferential rates. Eligible firms have access to a line of credit that can be drawn down to purchase goods for exports. The trading companies use the loans as advanced payment for the goods purchased.

IPI Export Credit Under BEFIEX

Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final) not used
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final)
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final)
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (SR) 70 FR 24529 (5/10/05-final);   Final Memo
Heavy Iron Construction Castings (SR) (Expedited review; no prelim) 64 FR 30313 (6/7/99-final)
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843(1/9/87-final)
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final) not used
Pig Iron (1989) 56 FR 5401(2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Pig Iron (1981) 48 FR 54091(11/30/83-prelim);   49 FR 9923 (3/16/84-final) not used
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final)

The Commission for the granting of fiscal benefits to special export program ("BEFIX") allows Brazilian exporters, in exchange for export commitments, to take advantage of several types of benefits, such as import duty reductions, an increased IPI export credit premium, and tax exemptions or tax credits.

"Presumed" Tax Credit for the Program of Social Integration (PIS) and the Social Contributions of Billings (COFINS) on Inputs Used in Exports

Cold-Rolled Carbon Steel Flat Products (2000) 67 FR 9652 (3/4/02-prelim);   67 FR 62128 (10/3/02-final);   Final Memo
Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended

This tax credit program was established on December 13, 1996. To calculate the PIS/COFINS tax credit, a company divides its export revenues, accumulated through the prior month, by its total gross sales revenues for the same period. The law pertaining to the "presumed" tax credit states that this tax credit is determined by using the total value of the purchases of raw materials, semi-finished products and packaging materials. Neither the GOB nor the companies involved have met the terms of section 351.518(a)(4)(ii) by carrying out an examination of the actual inputs involved, nor of whether the inputs are consumed in production and in what amounts. As a result, we determined that the entire amount of this tax credit is countervailable as an export subsidy.

PROEX Equalization Program

Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended

Under this program, exporters discount their receivables with a private lender. After payment is collected by the private bank from the customer, the GOB remits to the bank the difference between the financing costs collected from the exporter and the financing costs that would have been collected based on international financial rates at the time. The private bank then forwards this differential to the Brazilian company. We determined that the PROEX Equalization program constitutes an export subsidy, PROEX equalization funds provided by the GOB through this program constitute a financial contribution and a corresponding benefit in the amount of equalization funds received. Therefore, this program is countervailable.

Tax Incentives Provided by Amazon Region Development Authority (SUDAM) and the Northeest Region Development Authority (Sudene)

Wire Rod (2000) 67 FR 5967 ;   67 FR 169 (8/30/02-final);   Final Memo;   Amended

The SUDENE program was created under Law No. 3692 in order to promote the development of the Northeast Region of Brazil. The SUDAM program is a similar program that promotes the development of the Amazonia Region of Brazil. Under these programs, companies can receive either a partial or complete tax exemption on the standard income tax for Brazilian companies, which is 25 percent of annual income. The tax exemption applies only to income from facilities operating in the designated regions. Both programs allow companies a 100 percent exemption if the company 1) makes an initial investment in the region involved, 2) increases capacity in the applicable region, or 3) modernizes its facilities in the specific region. If a company does not meet these three criteria, it is permitted to exempt 37.5 percent of its income from facilities operating in that region from taxation. We found this program to be countervailable because it provides a benefit and is specific. Therefore, this program is countervailable.


SUBSIDY PROGRAMS FOUND TO BE NOT COUNTERVAILABLE

The subsidy programs listed below have been investigated by the Department and have been found to be "not countervailable" in the cases listed and during the periods reviewed based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed under the subsidy program title for a full explanation of the Department's analysis in each case where the subsidy program has been examined.

BNDES Export Financing

Cold-Rolled Carbon Steel Flat Products (2000) 67 FR 9652 (3/4/02-prelim);   67 FR 62128 (10/3/02-final);   Final Memo
Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended

BNDES provides three types of export loans to exporters meeting certain criteria: (1) Pre-shipment loans, (2) Special Pre-shipment loans, and (3) Post-shipment loans. Pre-shipment loans are linked to specific export shipments. Special Pre-shipment loans are not linked to specific export shipments but rather are granted to exporters who pledge to increase exports. BNDES only grants special pre-shipment loans to a company that has previously exported and seems in a likely position to increase exports. Post-shipment loans finance the export sales of goods or services abroad by financing an exporter's accounts receivable. We determined that this loans were offered at commercial rates and were not countervailable.

Certain Labor Programs

Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used

The government of Brazil has not provided funds or other forms of assistance for the training and career development of steel industry personnel, other than income tax deductions for employee training and meals

Export Financing Under Resolution 331

Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82)
Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final)

Resolution 331 is a set of rules and regulations established by the Brazilian government enabling banks, for export transactions, to discount accounts receivable denominated in foreign currency. Beyond establishing these enabling rules, the government has no further involvement. The Government of Brazil provides no funds to banks to enable them to discount such receivables, nor does it establish the discount rates. The Department found that the discounting of foreign exchange accounts receivable under the rules of Resolution 331 does not constitute a subsidy.

FINEM

Cold-Rolled Carbon Steel Flat Products (2000) 67 FR 9652 (3/4/02-prelim);   67 FR 62128 (10/3/02-final);   Final Memo

FINEM is a loan program administered by BNDES that supports fixed asset investments for projects in the industrial and agricultural sector in excess of seven million reais. We determined that FINEMN financing is provided to a wide variety of industries. We also determined that this program is not de facto or de jure specific. Therefore, we determined it was not countervailable.

Income Tax Deductions for Foreign Selling Expenses

Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final) not used

We found that income tax deductions for foreign selling expenses are granted under the same general criteria as equivalent domestic expenses, and that such expenses are deductible, if justified by accounting records, regardless of where the expense occurred. The deductions are apparently available for all selling expenses, so we determined this program not to be a subsidy.

Loan Guarantees on Foreign-Denominated Debt

Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final)

Under Decree-Law 1312, guarantees on foreign-denominated debt are available to Brazilian borrowers to finance the following projects: Modernization of harbors, programs of Federal agencies abroad, transportation, cold storage and slaughterhouses, electrical energy, basic industries and agriculture, education, public health, urban or rural sanitation, communications, fisheries, assistance to small and medium enterprises, housing, livestock raising, urban and regional integration and development, and national security. The law also indicates that guarantees are available to private as well as government-owned firms. Accordingly, the Department determined that government loan guarantees on foreign-denominated debt are not limited to a specific enterprise or industry or group of enterprises or industries.

Loans to Producers of Steel-Making Equipment

Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final) not used
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)

The Department determined that long-term FINAME loans were not made at preferential rates. FINAME loans to producers of steel-making equipment are made according to the same criteria and at approximately the same rates as to all other sectors. Therefore, there is no indirect subsidy to producers of carbon steel plate from FINAME loans granted to producers of steel-making equipment.

Income Tax Deduction for Employee Training and Meals

Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final)

Two companies had tax deductible training programs for which they may take special deductions for training costs, and for employee meals. The Department found that under the applicable tax law any manufacturer, without sectoral or regional preference, may take above deductions for training and meal expenditures for employees. We determined that the benefits conferred under this program are not countervailable because they are generally available on equal terms.

Investment Subsidy From Credit to the Corporate Income Tax

Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final)
Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended not used

Brazilian tax law allows any corporation that owes corporate income taxes to elect to apply up to 51 percent of its corporate income taxes owed to the government to specified investment funds. The investment funds generally are for the economic development of certain regions, industries or national interests (e.g., the Amazon, the Northeast, fisheries, tourism and reforestation). The Department determined that election to participate in this program does not constitute a subsidy since all corporations which pay corporate income taxes are eligible to participate in the program on equal terms.

Long-Term Loan Through FINEP

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82)
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Hot-Rolled Lead and Bismuth Steel Products (1991) 52 FR 42890 (9/17/92-prelim);   58 FR 6217 (1/27/93-final)
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final)
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

The Fund of Studies and Projects (FINEP) is a government agency that provides and administers loans in connection with projects created to encourage the development of technology and accelerate growth of industries. These loans have interest rates only partially indexed to inflation. There was no evidence that the steel industry received a disproportionate share of loans under this program; therefore, it was found not to be providing countervailable benefits to the steel industry.

Negotiated Deferrals of Tax Liabilities

Cold-Rolled Carbon Steel Products (1998) 64 FR 53337 (10/01/99-prelim);   65 FR 5546 (2/4/00-final)
Hot-Rolled Carbon Steel Products (1997) 64 FR 8320 (2/19/99-prelim);   64 FR 38748 (7/19/99-final)
;   69 FR 56040 (9/17/04-term. of susp. agreement & CVD oder);   Correction

COSIPA, a steel company, petitioned four different tax authorities to arrange for installment payments for different types of taxes owed. Each tax agency has established legal procedures for arranging installment payments for delinquent tax payers. We determined that the tax agencies applied the program to all companies that have outstanding tax obligations to the underlying tax authority. This program, therefore, is not countervailable.

Partial Relief from Payment of Retirement Benefits to Employees

Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final) not used

Two major pension funds exist in Brazil to provide retirement benefits for employees: PIS for private sector employees and PASEP for public sector employees. PIS is funded through employer contributions and PASEP through an earmarked portion (1 percent) of the state value-added (ICM) tax. The Department found that employees of COSIPA and USIMINAS are not participants in the PASEP program. This program is mainly for municipal, state and federal employees, and COSIPA and USIMINAS are treated as private enterprises in this regard, and as such are participants in the PIS program. Therefore, no subsidy is conferred to manufacturers, producers or exporters of carbon steel plate under this program.

Reduction of Urban Building and Land Tax ("IPTU")

Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended

The IPTU tax in Brazil is administered by each individual municipality in Brazil. Thus, the collection of the IPTU tax is the responsibility of each municipality, and any individual tax exemption results from direct negotiations between the municipality and the recipient of the exemption. In comparing the net present value of the tax abatement and the value of the land, we found that these values were approximately equivalent. It is the Department's practice in situations where any benefit to the subject merchandise would be so small that there would be no impact on the overall subsidy rate, regardless of a determination of countervailability, to not determine whether benefits conferred under these programs to the subject merchandise are countervailable

Resolution 695--Financing to Small-and Medium-Size Firms

Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used

Resolution 695 extends lines of credit to small- and medium-size firms through commercial banks in Brazil. The text of Resolution 695 indicates that there are no conditions which would limit or target the distribution of these loans to any particular type or group of companies. There is no regional preference, either in the distribution of, or in the purpose for these loans. Furthermore, Resolution 695 loans are made with commercial banks' own funds, to all types of companies. The Department determined that Resolution 695 loans are not limited to a specific enterprise or industry or group of enterprises or industries.

Simultaneous Devaluation and Imposition of Export Taxes

Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)

It was alleged that the government of Brazil devalued the cruzeiro in order to stimulate exports, and concurrently imposed an export tax on a number of products in order to offset the benefits of the devaluation. There is no such system in Brazil. The devaluation included no provisions to protect certain industries or groups of industries from the effects of the devaluation.

Subsidy Reserve and Tax Incentives Reserve

Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final)

No program description available.


SUBSIDY PROGRAMS THAT HAVE BEEN TERMINATED

The subsidy programs listed below have been investigated by the Department and have been found to have been terminated based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in each of these cases.

Benefits from Imports Substitution (PROSIM)

Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final) not used
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final)
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Pig Iron (1989) 56 FR 5401 (2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final)
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

No program description available.

CACEX Preferential Working Capital Financing For Export

Brass Sheet and Strip (SR) (Expedited review - no prelim);   70 FR 67139 (11/4/05-final);   Final Memo
Brass Sheet and Strip (SR) (Expedited review - no prelim);   64 FR 48367 (9/3/99-final)
Brass Sheet and Strip (1990) 56 FR 33252 (7/19/91-prelim);   56 FR 56631 (11/6/91-final)
Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final)
Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final)
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82)
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final)
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final)
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final)
Certain Castor Oil Products (1980) 48 FR 21982 (5/16/83-prelim);   48 FR 40534 (9/8/83-final)
Certain Scissors and Shears (1981/82) 50 FR 11928 (3/26/85-prelim);   51 FR 45369 (12/18/86-final)
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final)
Cotton Yarn (1992) 58 FR 68 (1/3/94-prelim);   59 FR 10371 (3/4/94-final) not used
Cotton Yarn (1991) 57 FR 58458 (12/10/92-prelim);   58 FR 6779 (2/2/93-final) not used
Cotton Yarn (1990) 56 FR 47456 (9/19/91-prelim);   57 FR 1454 (1/14/92-final) not used
Cotton Yarn (1987) 55 FR 19766 (5/11/90-prelim);   55 FR 28269 (7/10/90-final)
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final)
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final)
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final)
Heavy Iron Construction Castings (SR) 70 FR 24529 (5/10/05-final);   Final Memo
Heavy Iron Construction Castings (SR) (Expedited review; no prelim) 64 FR 30313 (6/7/99-final)
Heavy Iron Construction Castings (1990) 56 FR 58879 (11/22/91-prelim);   57 FR 2252 (1/21/92-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final)
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Light Iron Construction Castings (1984) 52 FR 2322 (6/19/87-prelim);   Final info in Heavy Iron Construction Castings 51 FR 9491 (3/19/86-final)
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843 (1/9/87-final)
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final)
Pig Iron (1991) 58 FR 6246 (1/27/93-prelim);   58 FR 16398(3/26/93-final)
Pig Iron (1990) 57 FR 3185 (1/28/92-prelim);   57 FR 10460 (3/26/92-final)
Pig Iron (1989) 56 FR 5401 (2/11/91-prelim);   56 FR 24174 (5/29/91-final)
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final)
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim)
Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final)
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final)
Silicon Metal (1989) 55 FR 49322 (11/27/90-prelim);   56 FR 26988 (6/12/91-final)
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final)
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final)
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final)
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final)
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

Under this program, the Department of Foreign Commerce ("CACEX") of the Branco do Brasil provides short term working capital financing to exporters at preferential rates. The loans have a term of one year or less. This program was terminated effective August 30, 1990 by Central Bank Resolution 1744.

Exemption from State-admin. Value-added Taxes "ICM" on Domestic Sales

Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36263 (10/9/86-prelim);   51 FR 45497 (12/19/86-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final)
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final)
Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended

This program provided Brazilian companies with an overrebate of state value-added tax on goods destined for export.

Exemption of IPI and Import Duties on Imports Under Decree/Law 2324 [E]

Carbon Steel Plate (SR) 65 FR 18065 (4/6/00-final);   Decision Memo (4/6/00)
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Certain Steel Products (1991) 57 FR 57810 (12/7/92-prelim);   58 FR 37299 (7/9/93-final)
Cotton Yarn (1992) 58 FR 69 (1/3/94-prelim);   49 FR 10371 (3/4/94-final) not used
Hot-Rolled Lead and Bismuth Steel Products (1991) 57 FR 42980 (9/17/92-prelim);   58 FR 6216 (1/27/93-final)

Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended

Decree/Law 2324 of March 30, 1987, provided exporters of manufactured products exemptions from IPI and duties on imported spare parts and machinery. This program is determined countervailable because this exemption is limited to exporters, and because the imported goods were not physically incorporated into the subject merchandise.

Export Financing Under CIC-OPCRE 6-2-6 (CIC-CREGE 14-11)

Brass Sheet and Strip (SR) (Expedited review - no prelim);   70 FR 67139 (11/4/05-final);   Final Memo
Brass Sheet and Strip (SR) (Expedited review - no prelim);   64 FR 48367 (9/3/99-final)
Brass Sheet and Strip (1990) 56 FR 33252 (7/19/91-prelim);   56 FR 56631 (11/6/91-final)
Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final)
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final)
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final)
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final)
Certain Scissors and Shears (1981/82) 50 FR 11929 (3/26/85-prelim);   51 FR 45369 (12/18/86-final)
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final)
Cotton Yarn (1992) 58 FR 68 (1/3/94-prelim);   59 FR 10371 (3/4/94-final) not used
Cotton Yarn (1991) 57 FR 58458 (12/10/92-prelim);   58 FR 6779 (2/2/93-final) not used
Cotton Yarn (1990) 56 FR 47456 (9/19/91-prelim);   57 FR 1454 (1/14/92-final) not used
Cotton Yarn (1987) 55 FR 19766 (5/11/90-prelim);   55 FR 28269 (7/10/90-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final)
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final)
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (SR) 70 FR 24529 (5/10/05-final);   Final Memo
Heavy Iron Construction Castings (1990) 56 FR 58879 (11/22/91-prelim);   57 FR 2252 (1/21/92-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843 (1/9/87-final)
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final)
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim)
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final)
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final)
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final)
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

Under this program, the Banco do Brasil provides preferential financing to exporters on the condition that they maintain on deposit a minimum level of foreign exchange. There is no maximum interest rate for this program. Interest payments are to be made quarterly or semiannually, with the full principle to be repaid upon maturity. As of September 20, 1988, interest rates applicable to these loans have been equal to those of market rate loans, so we deem this program to be terminated.

Export Financing under Fundo Nacional de Participadoes (FUNPAR)

Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final) not used
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final)
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Pig Iron (1989) 56 FR 5401 (2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

No program description available.

Export Premium for the IPI

Brass Sheet and Strip (1985) 86-619.html#top">51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final)
Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final)
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82)
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final)
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final)
Certain Castor Oil Products (1980) 48 FR 21982 (5/16/83-prelim);   48 FR 40534 (9/8/83-final)
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final)
Certain Scissors and Shears (1981/82) 50 FR 11928 (3/26/85-prelim);   51 FR 45371 (12/18/86-final)
Certain Stainless Steel (1983)(1985) 51 FR 39694 (10/30/86-prelim);   51 FR 45371 (12/18/86-final)
Certain Stainless Steel (1981/82) 47 FR 52207 (11/19/82-prelim);   48 FR 21610 (5/13/83-final)
Cotton Yarn (1987) 55 FR 19767 (5/11/90-prelim);   55 FR 28269 (7/10/90-final)
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final)
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843 (1/9/87-final)
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final)
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim)
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final)
Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final)
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final)
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final)
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final)
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

(Suspended December 1979, reinstated April 1, 1981, terminated May 1, 1985) Exporters are eligible for the maximum export credit premium for the IPI. The Brazilian government pays exporters in cash a percentage of the f.o.b. price of the exported merchandise. The payment is made through the bank involved in the export transaction.

Financing for the Storage of Merchandise Destined for Export (Resolution 330)

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82) not used
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final) not used
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final) not used
Certain Scissors and Shears (1981/82) 50 FR 11929 (3/26/85-prelim);   51 FR 45369 (12/18/86-final) not used
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (SR) 70 FR 24529 (5/10/05-final);   Final Memo
Heavy Iron Construction Castings (1990) 56 FR 58879 (11/22/91-prelim);   57 FR 2252 (1/21/92-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843 (1/9/87-final) not used
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final) not used
Pig Iron (1989) 56 FR 5401(2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim) not used
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final) not used
Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-inal) not used
Silicon Metal (1989) 55 FR 49322 (11/27/90-prelim);   56 FR 26988 (6/12/91-final) not used
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

No program description available.

Fiscal Benefits by Virtue of CDI (Also called Duty-Free Treatment and Tax Exemption on Imported Equipment)

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Plate (SR) (Expedited review - no prelim);   71 FR 32522 (6/6/06-final);   Final Memo
Carbon Steel Plate (SR) 65 FR 18065 (4/6/00-final);   Decision Memo (4/6/00)
Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final) not used
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82)
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final) not used
Certain Stainless Steel (1983) (1985)51 FR 39695 (10/30/86-prelim);   51 FR 45371 (12/18/86-final)
Certain Stainless Steel (1981/82) 47 FR 52207 (11/19/82-prelim);   48 FR 21610 (5/13/83-final)
Certain Steel Products (1991) 57 FR 57809 (12/7/92-preilm);   58 FR 37298 (7/9/93-final)
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final)
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

Under Decree/Law 1428, the Industrial Development Council (CDI) provides for the reduction of up to 100 percent of the import duties and up to 10 percent of the IPI tax (value-added sales tax) on certain imported machinery for specific projects in 14 industries approved by the government of Brazil. In order to be eligible for these reductions, the recipient must prove that the machinery or equipment to be imported is not available from a Brazilian manufacturer. Decree-Law 1726 repealed this program in 1979. However, companies whose projects were approved prior to the repeal continued to receive benefits from this program pending completion of the project.

Funding For Expansion Through IPI Tax Rebates

Carbon Steel Plate (SR) 65 FR 18065 (4/6/00-final);   Decision Memo (4/6/00)
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final)
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

This provides funding for approved expansion in the Brazilian Steel industry through a rebate of the IPI tax, a value added tax. Originally the IPI tax applied to all industries. Instead of paying the IPI tax directly to the government the, a Brazilian Steel company until 1981 was able to 95% of the net IPI tax due in a special account with the Banco de Brasil. When rebated the firms had to apply the deposits to steel expansion projects.

Fundo De Democratizacao do Capital das Empresas (FUNDECE)

Certain Scissors and Shears (1981/82) 50 FR 11929 (3/26/85-prelim);   51 FR 45369 (12/18/86-final)not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prealim);   49 FR 15250 (4/18/84-final) not used
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final)
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final)

This program was funded by the U.S. government through the Alliance for Progress. Its purpose was to provide Brazilian companies with export financing.

Gold Draft of Exportation

Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843 (1/9/87-final) not used
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final) not used

No program description available.

"Green-Yellow" Drawback

Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used

No program description available.

Import Duty Exemption Under Decree-Law 1189 of 1979

Brass Sheet and Strip (SR) (Expedited review - no prelim);   70 FR 67139 (11/4/05-final);   Final Memo
Brass Sheet and Strip (SR) (Expedited review - no prelim);   64 FR 48367 (9/3/99-final)
Brass Sheet and Strip (1990) 56 FR 33252 (7/19/91-prelim);   56 FR 56631 (11/6/91-final)
Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final)

(Terminated December 28, 1989) Decree-Law 1189 of 1979 allowed for duty-dree importation of certain merchandise which will be used in the production of export goods. Because the exemption from import duty is contingent upon export production, we deteremined that this program constituted a countervailable export subsidy.

Income Tax Exemption for Export Earnings

Brass Sheet and Strip (SR) (Expedited review - no prelim);  70 FR 67139 (11/4/05-final);   Final Memo
Brass Sheet and Strip (SR) (Expedited review - no prelim);   64 FR 48367 (9/3/99-final)
Brass Sheet and Strip (1990) 56 FR 33252 (7/19/91-prelim);   56 FR 56631 (11/6/91-final)
Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final)
Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82)
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final)
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final)
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final)
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final)
Certain Castor Oil Products (1980) 48 FR 21982 (5/16/83-prelim);   48 FR 40534 (9/8/83- final)
Certain Scissors and Shears (1981/82) 50 FR 11928 (3/26/85-prelim);   51 FR 45369 (12/18/86-final)
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final)
Certain Stainless Steel (1981/82) 47 FR 52207 (11/19/82-prelim);   48 FR 21610 (5/13/83-final)
Cotton Yarn (1992) 58 FR 69 (1/3/94-prelim);   59 FR 10371 (3/4/94-final) not used
Cotton Yarn (1991) 57 FR 58458 (12/10/92-prelim);   58 FR 6779 (2/2/93-final) not used
Cotton Yarn (1990) 56 FR 47456 (9/19/91-prelim);   57 FR 1454 (1/14/92-final)
Cotton Yarn (1987) 55 FR 19766 (5/11/90-prelim);   55 FR 28269 (7/10/90-final)
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final)
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final)
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final)
Heavy Iron Construction Castings (SR) 70 FR 24529 (5/10/05-final);   Final Memo
Heavy Iron Construction Castings (1990) 56 FR 58879 (11/22/91-prelim);   57 FR 2252 (1/21/92-final)
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final)
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final)
Light Iron Construction Castings (1984) 52 FR 2322 (6/19/87-prelim);   Final info in Heavy Iron Construction Castings 51 FR 9491 (3/19/86-final)
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843(1/9/87-final)
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final)
Pig Iron (1991) 58 FR 6246(1/27/93-prelim);   58 FR 16398(3/26/93-final)
Pig Iron (1990) 57 FR 3185 (1/28/92-prelim);   57 FR 10460 (3/26/92-final)
Pig Iron (1989) 56 FR 5401(2/11/91-prelim);   56 FR 24174 (5/29/91-final)
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final)
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim)
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final)
Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final)
Silicon Metal (1989) 55 FR 49322 (11/27/90-prelim);   56 FR 26988 (6/12/91-final)
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final)
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final)
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final)
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final)
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final)
Tool Steel (1983-85) 51 FR 39697(10/30/86-prelim);   51 FR 45376 (12/18/86-final)

(Also called Income Tax Reduction for Export Earnings)
Under this program, exporters are eligible for an exemption from income tax on the portion of their profits attributable to exports. According to Brazilian tax laws, the tax exempt fraction of profit is calculated as the ratio of export revenue to total revenue. This program was terminated by Decree Law 8034, April 12, 1990.

Preferential Financing for Trading Companies Under Resolution 883

Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final)Under Resolution 643 in Final
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final)
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

Under this program, the Department of Foreign Commerce declares trading companies eligible to receive loans at preferential rates. Eligible firms have access to a line of credit that can be drawn down to purchase goods for export. The trading companies use the loans as advanced payment for goods purchased. This program was terminated effective August 31, 1990 by Central Bank Resolution 1.744.

Preferential Export Financing Under FINEX Program [E] (Resolution 68)

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final)
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final)
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82) not used
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final) not used
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final)
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final) not used
Certain Scissors and Shears (1981/82) 50 FR 11929 (3/26/85-prelim);   51 FR 45369 (12/18/86-final) not used
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final)
Certain Stainless Steel (1981/82) 47 FR 52207 (11/19/82-prelim);   48 FR 21610 (5/13/83-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (SR) 70 FR 24529 (5/10/05-final);   Final Memo
Heavy Iron Construction Castings (1990) 56 FR 58879 (11/22/91-prelim);   57 FR 2252 (1/21/92-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Hot-Rolled Lead and Bismuth Steel Products 52 FR 42890 (9/17/92-prelim);   58 FR 6217 (1/27/93-final)
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843 (1/9/87-final) not used
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final) not used
Pig Iron (1991) 58 FR 6246 (1/27/93-prelim);   58 FR 16398(3/26/93-final) not used
Pig Iron (1990) 57 FR 3185 (1/28/92-prelim);   57 FR 10460 (3/26/92-final)
Pig Iron (1989) 56 FR 5401 (2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim) not used
Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final) not used
Silicon Metal (1989) 55 FR 49322 (11/27/90-prelim);   56 FR 26988 (6/12/91-final) not used
Standard Pipe (1991) 57 FR 24466 (6/9/92-prelim);   57 FR 42970 (9/17/92-final)
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final)
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final)
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final)
Tool Steel(1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

Resolution 68 of the Conselho Nacional do Comercio Exterior (CONCEX) provides the resources of the Fundo de Financiamento a Exportacao (FINEX) to extend medium-and long-term financing for manufactured exports. Financing may be provided to exporters or to foreign importers. When provided to exporters, up to 85 percent of the value of the merchandise may be financed. Resolution 68 sets no limit on the amount available to foreign importers, nor does it specify the interest rate charged to either importers or exporters. This program was terminated October 15, 1990 by Constitutional provision.

Price Equalization Program

Cotton Yarn (1987) 55 FR 19767 (5/11/90-prelim);   55 FR 28269 (7/10/90-final)
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final)

This program was operated from April 1985 through February 1986 under a government agency, the Companhia da Producao. This agency provided a specific quantity of raw cotton to textile exporters at a price that was significantly lower than the internal market price and the world market price.

Tax Deduction for Financial Transactions Related to the Recuperation of Capital Expended in Prospecting Mineral Deposits: Decree 58400

Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used

We found that this program is available only to individual taxpayers. Furthermore, this program is no longer in effect.

Tax Reductions on Equipment Used in Export Production ("CIEX")

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final)
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36262 (10/9/86-prelim);   51 FR 45497 (12/19/86-final) not used
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final) not used
Certain Scissors and Shears (1981/82) 50 FR 11929 (3/26/85-prelim);   51 FR 45369 (12/18/86-final) not used
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Non-rubber Footwear (1981) 50 FR 26397 (6/26/85-prelim);   52 FR 843(1/9/87-final)
Non-rubber Footwear (1980) 48 FR 9901 (3/9/83-prelim);   50 FR 15597 (4/19/85-final)
Pig Iron (1989) 56 FR 5401 (2/11/91-prelim);   56 FR 24174 (5/29/91-final)
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim) not used
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final) not used
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final) not used
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final) not used
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final)

No program description available.


PROGRAMS DETERMINED NOT TO BE USED

When potential subsidy programs are investigated and found not to be used by the companies being investigated, the Department makes no determination as to their countervailability. If you click on the subsidy program title, you will be linked to each case in which the subsidy program was referenced.

Articles 13 and 14 of Decree Law 2303

Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used

No program description available.

Benefits Provided Under the "Entreposto Aduaneiro" System

Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final) not used

This program permits small producers of manufactured products to receive both a remission of the IPI tax and tax credits immediately upon the sale of a product to licensed trading companies, rather than at the time of export. The Department found that this program was not used by producers of pig iron in the period under review.

Constitutional Funds for Financing Productive Sectors in the Northeast, North, and Midwest Regions (Fundos Constitucionais de Financiamento do Nordeste, do Norte, e do Centro-Oeste)

Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended not used

No program description available.

Excessive Remission on Export of Indirect Taxes other than IPI

Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final) not used

No program description available.

Exemption from the IPI tax and Import Duties under BEFIEX Program [E]

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Plate (1981) 47 FR 26310 (6/17/82-prelim);   48 FR 2568 (1/20/83-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used
Carbon Steel Wire Rod (1981) 47 FR 30550 (7/14/82-prelim);   Investigation Suspended 47 FR 42399 (9/27/82) not used
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final) not used
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921 (7/3/89-prelim);   54 FR 38262 (9/15/89-final) not used
Certain Scissors and Shears (1981/82) 50 FR 11928 (3/26/85-prelim);   51 FR 45369 (12/18/86-final) not used
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final) not used
Certain Stainless Steel (1981/82) 47 FR 52207 (11/19/82-prelim);   48 FR 21610 (5/13/83-final) not used
Cotton Yarn (1992) 58 FR 68 (1/3/94-prelim);   59 FR 10371 (3/4/94-final) not used
Cotton Yarn (1991) 57 FR 58458 (12/10/92-prelim);   58 FR 6779 (2/2/93-final) not used
Cotton Yarn (1990) 56 FR 47456 (9/19/91-prelim);   57 FR 1454 (1/14/92-final) not used
Cotton Yarn (1987) 55 FR 19767 (5/11/90-prelim);   55 FR 28269 (7/10/90-final) not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (1990) 56 FR 58879 (11/22/91-prelim);   57 FR 2252 (1/21/92-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Hot-Rolled Lead and Bismuth Steel Products (1991) 52 FR 48290 (9/17/92-prelim);   58 FR 6217 (1/27/93-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Pig Iron (1991) 58 FR 6246 (1/27/93-prelim);   58 FR 16398(3/26/93-final) not used
Pig Iron (1990) 57 FR 3185 (1/28/92-prelim);   57 FR 10460 (3/26/92-final) not used
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim) not used
Silicon Metal (1989) 55 FR 49322 (11/27/90-prelim);   56 FR 26988 (6/12/91-final) not used
Standard Pipe (1991) 57 FR 24466 (6/9/92-prelim);   57 FR 42970 (9/17/92-final) not used
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final) not used
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final) not used

The Commission for Granting of Fiscal Benefits to special Export Programs, or BEFIEX, grants at least 3 categories of benefits to Brazilian exporters. Under this program, exporters (1) may reduce by 70-90 percent, import tax or IPI duties on machinery, equipment, apparatus, instruments, accessories, and tools necessary for special export programs approved by the Ministry of Industry and Trade; it may also reduce by 50 percent import duties and the IPI Tax on imports of components, raw materials, or intermediate products, (2) may extend the carry-forward period for tax losses from 4 to 6 years, and (3) may allow special amortization of pre-operational expenses related to approved projects.

Fiscal Incentives for Regional Development (Provisional Measure No. 1532 of Dec. 18, 1996)

Wire Rod (2000) 67 FR 5967 (2/8/02-prelim);   67 FR 169 (8/30/02-final);   Final Memo;   Amended not used

No program description available.

Labor Subsidies for Employees of State Enterprises

Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used

Decree Laws 2036 and 2100 established programs that restricted fringe benefits and pay levels of public employees.

Loan Assumptions

Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used

No program description available.

Loan Guarantees

Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used

In 1982, the government of Brazil guaranteed a debenture that was floated by USIMINAS on the Japanese market. The issuance was made in a period in which we consider USIMINAS to be uncreditworthy. Becuase these long-term loans in foreign currency were guaranteed by the government of Brazil in years during which the companies were uncreditworthy, and evidence on the record suggests that government guarantees on foreign-currency loans are not generally available in Brazil, we used the methodology for "Loans and Loan Guarantees to Uncreditworthy Companies" described in the Subsidies Appendix to determine whether they were inconsistent with commerical considerations. Our analysis indicates that these loans were made at preferential interest rates.

Partially Indexed Long-Term Loans

Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final) not used
Certain Scissors and Shears (1981/82) 50 FR 11929 (3/26/85-prelim);   51 FR 45369 (12/18/86-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Pig Iron (1982) 50 FR 7206 (2/21/85-prelim) not used
Pig Iron (1981) 48 FR 54091 (11/30/83-prelim);   49 FR 9923 (3/16/84-final) not used

No program description available.

Preferential Export Financing Under the PROEX Program [E]

Brass Sheet and Strip (1985) 51 FR 20864 (6/19/86-prelim);   51 FR 40837 (11/10/86-final) not used
Carbon Steel Products (1984) 51 FR 39774 (10/31/86-prelim);   52 FR 829 (1/9/87-final) not used
Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used
Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final) not used
Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921(7/3/89-prelim);   54 FR 38262 (9/15/89-final) not used
Certain Castor Oil Products (1985) 52 FR 18726 (5/19/87-prelim);   52 FR 42025 (11/2/87-final) not used
Certain Castor Oil Products (1984) 51 FR 36264 (10/9/86-prealim);   51 FR 45498 (12/19/86-final) not used
Certain Castor Oil Products (1981) 48 FR 49320 (10/25/83-prelim);   49 FR 9921 (3/16/84-final) not used
Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final) not used
Certain Stainless Steel (1981/82) 47 FR 52207 (11/19/82-prelim);   48 FR 21610 (5/13/83-final) not used
Cold-Rolled Carbon Steel Flat Products (2000) 67 FR 9652 (3/4/02-prelim);   67 FR 62128 (10/3/02-final);   Final Memo not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Cotton Yarn (1982) 48 FR 50592 (11/2/83-prelim);   49 FR 15250 (4/18/84-final) not used
Forged Steel Crankshafts (1985) 52 FR 699 (1/8/87-prelim);   52 FR 38254 (10/15/87-final) not used
Heavy Iron Construction Castings (1984) 50 FR 32462 (8/12/85-prelim);   51 FR 9491 (3/19/86-final) not used
Hot-Rolled Lead and Bismuth Steel Products (1991) 52 FR 42890 (9/17/92-prelim;   58 FR 6215 (1/27/93-final) not used
Iron Ore Pellets (1984) 50 FR 11527 (3/22/85-prelim);   51 FR 21961 (6/17/86-final) not used
Pig Iron (1989) 56 FR 5401 (2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Silicon Metal (1989) 55 FR 49322 (11/27/90-prelim);   56 FR 26988 (6/12/91-final) not used
Standard Pipe (1991) 57 FR 24466 (6/9/92-prelim);   57 FR 42970 (9/17/92-final) not used
Tillage Tools (1996) 63 FR 37532 (7/13/98-prelim);   63 FR 52685 (10/01/98-final) not used
Tillage Tools (1995) 62 FR 36771 (7/09/97-prelim);   62 FR 52973 (10/10/97-final) not used
Tillage Tools (1994) 61 FR 39949 (7/31/96-prelim);   61 FR 51681 (10/3/96-final) not used
Tillage Tools (1993) 60 FR 39933 (8/4/95-prelim);   60 FR 48692 (9/20/95-final) not used
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used
Tillage Tools (1983) 50 FR 24270 (6/10/85-prelim);   50 FR 34525 (8/26/85-final) not used
Tool Steel (1983-85) 51 FR 39697 (10/30/86-prelim);   51 FR 45376 (12/18/86-final) not used

Short-term credits with interest rates below market value are available for exporters under the Programa de Financiamento a Producao para a Exportacao (PROEX).

Preferential Financing for Industrial Enterprises by the Banco do Brazil (FST and EGF loans)

Certain Castor Oil Products (1992) 59 FR 55443 (11/7/94-prelim);   60 FR 20478 (4/26/95-final) not used
Certain Castor Oil Products (1987) 54 FR 27921(7/3/89-prelim);   54 FR 38262 (9/15/89-final) not used
Cotton Yarn (1992) 58 FR 68 (1/3/94-prelim);   59 FR 10371 (3/4/94-final) not used
Cotton Yarn (1991) 57 FR 58458 (12/10/92-prelim);   58 FR 6779 (2/2/93-final) not used
Cotton Yarn (1990) 56 FR 47456 (9/19/91-prelim);   57 FR 1454 (1/14/92-final) not used
Cotton Yarn (1987) 55 FR 19766 (5/11/90-prelim);   55 FR 28269 (7/10/90-final)not used
Cotton Yarn (1984) 53 FR 9465 (3/23/88-prelim);   55 FR 3442 (2/1/90-final) not used
Pig Iron (1990) 57 FR 3185 (1/28/92-prelim);   57 FR 10460 (3/26/92-final) not used
Pig Iron (1989) 56 FR 5401(2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Pig Iron (1987) 56 FR 5403 (2/11/91-prelim);   56 FR 23692 (5/23/91-final) not used
Steel Wheels (1987) 53 FR 43749 (10/28/88-prelim);   54 FR 15523 (4/18/89-final) not used
Tillage Tools (1996) 63 FR 37532 (7/13/98-prelim);   63 FR 52685 (10/01/98-final) not used
Tillage Tools (1995) 62 FR 36771 (7/09/97-prelim);   62 FR 52973 (10/10/97-final) not used
Tillage Tools (1994) 61 FR 39949 (7/31/96-prelim);  61 FR 51681 (10/3/96-final) not used
Tillage Tools (1993) 60 FR 39933 (8/4/95-prelim);   60 FR 48692 (9/20/95-final) not used
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used

EFG loans are federal loans controlled by CONAP, the national supply company, whose source is the central bank of Brazil and other government agencies. The purpose of the EGF loans is to guarantee a minimum price for a commodity during periods when the price for that commodity is very low. EGF loans are provided to producers, when the government takes a special interest in a sector, so that producers can finance stocking or transportation.

Preferential Financing through FINEP

Certain Stainless Steel (1983)(1985) 51 FR 39693 (10/30/86-prelim);   51 FR 45371 (12/18/86-final) not used
Pig Iron (1991) 58 FR 6246 (1/27/93-prelim);   58 FR 16398 (3/26/93-final) not used
Pig Iron (1990) 57 FR 3185 (1/28/92-prelim);   57 FR 10460 (3/26/92-final) not used
Pig Iron (1989) 56 FR 5401 (2/11/91-prelim);   56 FR 24174 (5/29/91-final) not used
Tillage Tools (1996) 63 FR 37532 (7/13/98-prelim);   63 FR 52685 (10/01/98-final) not used
Tillage Tools (1995) 62 FR 36771 (7/09/97-prelim);   62 FR 52973 (10/10/97-final) not used
Tillage Tools (1994) 61 FR 39949 (7/31/96-prelim);   61 FR 51681 (10/3/96-final) not used
Tillage Tools (1993) 60 FR 39933 (8/4/95-prelim);   60 FR 48692 (9/20/95-final) not used
Tillage Tools (1990) 57 FR 10885 (3/31/92-prelim);   57 FR 22461 (5/28/92-final) not used
Tillage Tools (1989) 56 FR 24058 (5/28/91-prelim);   56 FR 32403 (7/16/91-final) not used
Tillage Tools (1987/88) 56 FR 7340 (2/22/91-prelim);   56 FR 15862 (4/18/91-final) not used

Financiadora de Estudos Projectos (FINEP) is a loan program that provides long-term loans on preferential terms to encourage the growth of industries and development of technology.

SUDENE Corporate Income Tax Reduction for Companies Located in the Northeast of Brazil

Cotton Yarn (1992) 58 FR 68 (1/3/94-prelim);   59 FR 10371 (3/4/94-final) not used
Cotton Yarn (1991) 57 FR 58458 (12/10/92-prelim);   58 FR 6779 (2/2/93-final) not used
Cotton Yarn (1990) 56 FR 47456 (9/19/91-prelim);   57 FR 1454 (1/14/92-final) not used
Pig Iron (1991) 58 FR 6246 (1/27/93-prelim);   58 FR 16398(3/26/93-final) not used
Silicon Metal (1989) 55 FR 49322 (11/27/90-prelim);   56 FR 26988 (6/12/91-final) not used
Tillage Tools (1996) 63 FR 37532 (7/13/98-prelim);   63 FR 52685 (10/01/98-final) not used
Tillage Tools (1995) 62 FR 36771 (7/09/97-prelim);   62 FR 52973 (10/10/97-final) not used
Tillage Tools (1994) 61 FR 39949 (7/31/96-prelim);   61 FR 51682 (10/3/96) not used

Companies which locate in the Northeast of Brazil are eligible for exemption from income tax for production attributable to SUDENE- approved projects. The intent of this program is to encourage development of this region of Brazil.

Tax Credits to Firms Located in Brazil's Less-Developed Regions

Pig Iron (1982) 50 FR 7206 (2/21/85-prelim) not used
Pig Iron (1980) 48 FR 6754 (2/15/83-prelim);   48 FR 31280 (7/7/83-final) not used

No program description available.

Tax Incentive Funds Through CONSERVE

Hot-Rolled Lead and Bismuth Steel Products (1991) 52 FR 48290 (9/17/92-prelim);   58 FR 6217 (1/27/93-final) not used

No program description available.


SUBSIDY PROGRAMS DETERMINED NOT TO EXIST

The following subsidy programs were alleged by the petitioning industries and were investigated by the Department. However, during the investigation we found no evidence that such programs actually existed. If you click on the subsidy program title, you will be linked to each case in which the subsidy program was referenced. It is possible that while the program named did not exist, a similar program having a different name actually was investigated. If this is the case, you will find that program listed elsewhere in this library.

The Foundry Plan

Cast Iron Pipe Fittings (1983/84) 49 FR 49319 (12/19/84-prelim);   50 FR 8755 (3/5/85-final)

"Foundry Plan" of the Third Basic Plan of Scientific and Technological Development--1980-1985 (III-PBDCT) calls for the "strengthening ofindigenous foundries with the active participation of the government." The III-PBDCT provides neither financial benefits nor any other types of assistance. It is simply a policy statement intended to stimulate the use of available public sector resources for scientific and technological development. Funds are provided through on-going programs of various Brazilian government ministries and agencies.

Government Funds to Cover Operating Losses

Carbon Steel Products (1982) 49 FR 5157 (2/10/84-prelim);   49 FR 17988 (4/26/84-final) not used

There was no evidence that the Government provided funds to cover operating losses.

Import-Export Reform Plan Preferential Financing

Hot-Rolled Lead and Bismuth Steel Products (1991) 52 FR 42890 (9/17/92-prelim);   58 FR 6217 (1/27/93-final)

No program description available.