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23Jan2013Jan23,2013
Infraestrutura e Energia
Globo.com

ANP Proposes Revision to Brazilian Local Content Rules

Seeking to revise local content requirements, Brazil's petroleum, natural gas, and biofuels regulatory agency, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis ("ANP"), made available for public consultation a draft regulation that would revise Resolution No. 36/2007 and the "Local Content Booklet" (Cartilha de Conteúdo Local), which currently define local content calculation and certification criteria. 

Suggestions and comments to the draft regulation must be submitted to ANP by no later than February 14, 2013, either by e-mail ([email protected]), fax ((+55 21) 2112-8552), or in person at ANP's headquarters in Rio de Janeiro. A public hearing at which ANP will respond to such comments is expected to be held on March 5, 2013, at ANP headquarters. Individuals seeking to attend the public hearing must register with ANP by March 1, 2013. 

From the analysis of the draft Resolution, we highlight the following: 

• Improvement of definitions and clarification of scope of certification – The draft further clarifies which types of goods or materials are subject to certification. For instance, ANP included within the definition of "goods" various types of support vessels used in maritime support services, thus aiming to clarify the types of vessels that would be subject to certification. In addition, ANP has introduced a list of equipment and products that cannot be considered for local content calculation, such as: trucks, cranes, containers, IT equipment (desktops, laptops, servers), utilities, furniture, lab equipment (ultrasound, etc.), catering, and medication, among others. 

• Criteria for supply of goods and services simultaneously – Resolution 36/2007 did not establish a specific criteria for the calculation of local content in contracts whose purpose included the supply of services and goods simultaneously. ANP currently adopts the criteria for calculation of "systems" in this event, provided, however, that it has decided to suggest a new methodology for this specific type of contract. 

• Systems under temporary use – ANP decided to include a methodology for "systems" that are under charter, rent, or other types of contracts which are by nature temporary. Resolution 36/2007 establishes a specific criteria for "temporary goods", but fails, however, to address the methodology for "systems". 

• Goods under REPETRO regime – Goods or systems manufactured in Brazil and imported under the "REPETRO regime" will be subject to local content certification. 

• Maintenance of drilling units and foreign vessels – the maintenance of drilling units and foreign vessels will be subject to local content certification, provided that the services are rendered by Brazilian shipyards.  

• Certification of multiple goods – The draft allows the use of a single local content certificate for a series of standard products with similar specifications and for which local content does not vary by more than 10% for each product. 

For additional information, please contact: 

Giovani Loss
T +55 21 3231 8246

Nilton Gomes de Mattos Neto
T +55 21 3231 8228

Cecilia Coelho Romero
T  +55 21 3231 8111

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