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6.1.3. Export Duty on National or Nationalized Products (Imposto sobre a Exportação deProdutos Nacionais ou Nacionalizados - I.E)Although virtually inapplicable in practice, exports of some few national or nationalized products aresubject to export duty at rates of 0% to 150%, unless otherwise provided by law.6.1.4. Tax on Industrialized Products or Excise Tax – (Imposto sobre Produtos Industrializados– IPI)IPI is levied on the manufacture and importation of products. It is a tax on consumption, the mechanicsof which obey the product selectivity principle, in accordance with the product’s essentiality. Productsdeemed to be superfluous are subject to a higher tax burden, whereas those with a higher degree ofessentiality are treated differently.IPI rates currently range between 0% and 300%, the latter applicable to cigarettes. Most products aresubject to rates of 10% to 20% (Decree 7,660 of 26 December 2011 – The IPI Table – TIPI).IPI is a non-cumulative tax; this mechanism consists of offsetting what is due in each operation, by thecredit system, against the tax charged on the previous operation.We should point out that, in addition to industrialized products destined for export, books, newspapers,periodicals and the paper used for their printing; gold, when defined by law as a financial asset orexchange instrument; electric power, petroleum by-products, fuels and minerals of the Country are notsubject to IPI (art. 18 of Decree 7,212 of 15 June 2010 - IPI Regulation – “RIPI”).6.1.5. Tax on Credit, Insurance and Foreign Exchange Operations, or on Operations relating toNegotiable Instruments and Securities – (Imposto sobre Operações de Crédito, Seguro eCâmbio, ou sobre Operações relativas a Títulos e Valores Mobiliários – IOF)(i) Credit operationsIOF is levied on credit operations at the time of the total or partial delivery of the sum or of the amountthat constitutes the subject matter of the obligation, or its availability to the interested party (art. 3 ofDecree 6,306 of 14 December 2007).The taxpayers are the borrowers of the credit. IOF is charged at the maximum rate of 1.5% per day onthe credit operation amount, corresponding to the principal sum that constitutes the subject matter ofthe obligation, or the amount made available to the interested party, and may be reduced to zero inexpress cases provided for in the legislation (arts. 6 and 8 of Decree 6,306/07).36