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) on transactions transferring oil, including lubricants, liquid and gaseous fuels derived therefrom andelectric power to other States (art. 155, paragraph 2, X, “b” of the Federal Constitution);c) on gold, when it is considered a financial asset or foreign exchange instrument (art. 155, paragraph2, X, “c” of the Federal Constitution);d) on the exportation of merchandise and renderings that send services abroad (via an exportingcompany, including trading companies.It is important to note that some States of the Federation grant tax incentives in relation to the ICMSwith the aim of attracting the establishment of industrial projects, although sometimes such incentivesfail to meet the validity requirements laid down by the Federal Constitution.For transactions where sender and recipient are located within the same state (or the Federal District),the ICMS rate will be set by such state in relation to the relevant goods and services, subject to thelimits set in the applicable federal laws. In the state of São Paulo, for instance, the rate may vary from4 to 25%. In general, a 18% rate is applicable. In relation to communication services for consideration,a 25% ICMS rate is applicable.For transactions involving the exit of goods or services from one state to another to ICMS taxpayers, a12% rate is generally applicable. When such transactions are made in the South and Southeastregions and when the destination of such transactions are the North, Northeast and Midwest regionsor the state of Espírito Santo, then the rate will be 7%.In January 2013, however, Resolution 13, issued by the Senate on 25 April 2012 came into force.Under such Resolution, a 4% ICMS rate is applicable to interstate transactions involving importedgoods, provided that, after customs clearance, such goods (i) do not undergo any industrializationprocess and (ii) result in goods with an Import Content over 40% after undergoing any processing,improvement, assembly, packing, repacking and renovation process.This 4% rate is applicable even when the interstate transaction is not carried out immediately after theimport transaction. The Senate’s Resolution 13/2012 is applicable to all interstate transactions carriedout after importation.However, the 4% ICMS rate is not applicable to interstate transactions involving (i) imported goodswithout similar counterparts locally manufactured in Brazil, as defined in a list issued by the Council ofMinisters of the Chamber of Foreign Trade (Câmara de Comércio Exterior - CAMEX); and (ii) naturalgas imported from abroad. In these cases, the 7% or 12% rate applicable to interstate transactionswill be applicable, depending on the state of origin and state of destination of the goods.46