1E9Ct5D

intended for corporate entities established and domiciled in the Northern, Northeast and Central Westregions that have approved projects for the implementation of infrastructure works in thepetrochemical, oil refinement and natural gas-based ammonia and urea production sectors.Corporate entities benefited by REPENEC will be entitled to the suspension of PIS/PASEP, COFINS,PIS/Import, COFINS/Import, Excise Tax (IPI), and Import Duty (II), at the time of the sale in thedomestic market or importation of new machines, apparatus, instruments and equipment, andconstruction materials for use or incorporation in infrastructure works intended for property, plant andequipment.14.5. REPETROThe Special Customs Regime for the Export and Import of Goods to be Used in the Research andExploitation of Oil and Natural Gas (Regime Aduaneiro Especial de Exportação e Importação de BensDestinados às Atividades de Pesquisa e Lavra de Jazidas de Petróleo e Gás Natural - REPETRO)grants Brazilian and foreign manufacturers tax incentives for the import of goods to be used directly inoil and natural gas activities, i.e., exemption of federal taxes.Such regime allows the use of the following special customs regimes, depending on the situation:(i)(ii)(iii)(iv)“Fictitious” export, when the good is not actually shipped abroad, but the temporaryadmission regime is applied in relation to goods manufactured domestically and soldto a person located abroad;“Fictitious” export, when the good is not actually shipped abroad, but the temporaryadmission regime is applied in relation to components and spare parts of goodspreviously admitted under the same temporary admission regime;Import under the drawback regime, concerning the suspension of duties in relation toraw material, semi-finished or finished goods and parts and components to be used inthe production of goods to be exported according to item (i) above; andTemporary admission of foreign or denationalized goods coming from abroad.By allowing the combination of these three regimes – i.e., fictitious export, temporary admission anddrawback – the REPETRO regime grants exemption of taxes levied on export revenues and suspendsall federal customs duties levied on import, namely: (ii) Import Duty; (ii) Excise Tax (IPI); (iii) PISImport; (iv) COFINS Import; and (v) Freight Surcharge for Renovation of Merchant Marine (AFRMM).At the state level, the REPETRO regime also grants tax incentives in relation to the Tax on theCirculation of Goods and Services (ICMS) levied on oil and natural gas extraction and productionactivities.88