On April 5, 2019, the Official Gazette published the Normative Ruling RFB No. 1,880, which outlined modifications to the Tax and Customs Special Regime for Temporary Admission of Oil and Gas Equipment (the so-called "Repetro-Sped"), regulated by Normative Ruling RFB No. 1,871/2018. In addition, the new Normative Ruling modified Normative Rulings RFB No. 1,600/2015 and 1,415/2013.
The main modifications are as follows:
- The definitive import, the temporary admission without payment of taxes and the Repetro-Industrialization can be adopted until December 31, 2020 (Section 2, §6º).
- The use of Temporary Admission of goods that will be permanently imported or consumed under the Repetro-Sped regime is forbidden (Section 3, §1º, III).
- The simultaneous use of goods in one or more exploration blocks or production fields (Section 3, §3º and Section 22) is authorized.
- Rental, assignment, provision or lease agreements must list the individual goods and the unitary value of the rental, assignment, provision or lease of each good separately, under penalty of being denied temporary admission for economic utilization regime with or without the payment of related taxes (Section 3, §4º, III).
- The restriction foreseen in Section 3, §4º, item V, was revoked. Thus, the agreement can foresee the supply of consumables in the provision of services and will still remain eligible under the Repetro-Sped regime.
- The temporary admission for economic use without the payment of taxes is applicable to FPSOs as long as (i) the charter, leasing, assignment, provision or rental agreement is related to an agreement for provision of operation services and the charter company and the provision of services company are not considered related to the contracting company; or (ii) the good is destined for temporary utilization in production tests or anticipated production systems in production fields or exploration blocks (Section 3, §8º, I and II).
- The companies interested in using the Repetro-Industrialization must already be registered in Repetro-Sped (Section 4 and 5, §1º).
- Companies interested in using the Repetro-Industrialization are required to be in compliance with the EFD-ICMS/IPI (Section 5, III).
- Registration in Repetro-Sped requires companies to issue electronic invoices or electronic individual invoices for all remittance of goods between establishments, deposits and other utilization places (Section 5, IV)
- The presentation of guarantee is not required for Repetro-Sped (Section 10). However, the amount of the suspended taxes must be indicated in a Responsibility Term (the so-called "TR") (Section 9).
- The Repetro-Sped registrant must be presented with several documents, including an insurance policy of hull and equipment, which can now be hired in Brazil or abroad (Section 14, §1º, VIII).
- Repetro-Sped register will be tacitly granted after five years from the first day of the year subsequent to the conversion into exemption of the IPI tax's suspension and conversion into a zero-percent rate of the PIS and COFINS taxes' suspension (Section 18, I, II and sole paragraph).
- The analysis if the agreements submitted to Repetro-Sped's legislation is regular will be made by the Brazil IRS tax auditor responsible for the audit procedure and no longer by the customs/foreign trade team.
- The request for Repetro-Sped extension will be automatically granted under a resolutory condition subjected to a approval within 5 years(Section 21, §1º, III).
- In the case of termination of the regime due to the destruction of the goods, it is necessary to present a technical opinion that proves that the goods were destroyed (Section 27, §4º, II).
- Goods imported under Repetro-Sped, while not being used, can remain at a shipyard or another location to be tested, repaired, fixed or maintained (Section 32, II).
- The rules set forth in Normative Ruling No. 1,600/2015 are applicable in case of any appeals against the decision that deny Repetro-Sped (Section 38).
- The goods imported under Repetro (Normative Ruling RFB No 1,415/2013) until December 31, 2018, or whose habilitation request was filed until such date, are still regulated by Repetro rules until December 31, 2020 (Section 39, §2º).
- Those same goods submitted to Repetro until December 31, 2018, or whose habilitation request was filed until such date, can be transferred to Repetro-Sped through a simplified proceeding between January 1, 2018, and June 30, 2019 (Section 39, §3º).
- The Repetro-Sped rules are applicable to requests filed after December 31, 2018 (Section 39, §4º).
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