Circular No. 1677 - Economic Stabilization Plan: Foreign Currency Credit Lines, Export Financing, Income Tax Exemption under Decree-Law 815/1969 and Decree-Law 2303/1986, Revocation of Circular 1589

CIRCULAR NO. 001677

TO
AUTHORIZED ESTABLISHMENTS OPERATING IN FOREIGN EXCHANGE

REVOKES AND REPLACES CIRCULAR NO. 1,589, OF MARCH 2, 1990.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, HAVING REGARD TO THE PROVISIONS OF ARTICLE 11 OF DECREE-LAW NO. 2,303, OF NOVEMBER 21, 1986, HAS DECIDED:

ART. 1. FOR THE PURPOSE OF PROVING THE APPLICATION OF RESOURCES FROM CREDITS OBTAINED ABROAD FOR FINANCING BRAZILIAN EXPORTS, SO AS TO QUALIFY FOR THE INCOME TAX EXEMPTION PROVIDED FOR IN ARTICLE 1 OF DECREE-LAW NO. 815, OF SEPTEMBER 4, 1969, WITH THE WORDING GIVEN BY ARTICLE 87 OF LAW NO. 7,450, OF DECEMBER 23, 1985, AUTHORIZED ESTABLISHMENTS OPERATING IN FOREIGN EXCHANGE MUST USE THE FORM OF THE ANNEXED MODEL, IN WHICH THE DAILY BALANCES IN FOREIGN CURRENCIES, EXPRESSED BY THEIR GLOBAL EQUIVALENCE IN UNITED STATES DOLLARS, WILL BE REGISTERED, PRESENTED IN THE FOLLOWING ACCOUNTS:

I - OF THE ASSET:
A) FOREIGN EXCHANGE PURCHASED FOR SETTLEMENT

• SUB-TITLES: EXPORTATION - LETTERS TO BE DELIVERED
  EXPORTATION - LETTERS DELIVERED; B) FOREIGN EXCHANGE AND DOCUMENTS PAYABLE AT A FUTURE DATE IN FOREIGN CURRENCIES; C) FINANCING IN FOREIGN CURRENCIES; II - OF THE LIABILITY:
  A) OBLIGATIONS IN FOREIGN CURRENCIES
• SUB-TITLES: BANK ACCEPTANCES LINKED TO EXPORTATION
  DISCOUNTED EXPORT LETTERS EXPORT FINANCING, UP TO 360 DAYS EXPORT FINANCING, ABOVE 360 DAYS; B) OBLIGATIONS - SPECIAL CREDIT LINES, IN THE COUNTRY
• SUB-TITLES: EXPORT FINANCING - CIRCULAR NO. 1,163
  PROEXPORT - CAMCOM COMMUNIQUE NO. 616 DISCOUNT OF FOREIGN EXCHANGE-CCR; C) ACCOUNTS IN FOREIGN CURRENCIES, IN THE COUNTRY - FLOATING RATES
• SUB-TITLES: OF TIME DEPOSITS
  OF NOTICE DEPOSITS.

SINGLE PARAGRAPH. FOR THE CALCULATION OF THE EQUIVALENCE IN UNITED STATES DOLLARS MENTIONED IN THE MAIN TEXT OF THIS ARTICLE, THE PARITIES THAT REFERENCE THE BUYING RATE PUBLISHED BY THE CENTRAL BANK ON THE PREVIOUS BUSINESS DAY, AVAILABLE IN THE CENTRAL BANK INFORMATION SYSTEM - SISBACEN, TRANSACTION PTAX800, OPTION 5 - QUOTATIONS FOR ACCOUNTING, MUST BE USED.

ART. 2. THE BASIS FOR CALCULATING THE INCIDENCE OF INCOME TAX REFERENCED IN THE SINGLE PARAGRAPH OF ARTICLE 12 OF DECREE-LAW NO. 2,303, OF NOVEMBER 21, 1986, SHALL BE OBTAINED THROUGH THE APPLICATION OF THE HIGHEST INTEREST RATE AMONG THOSE IN FORCE FOR THE SET OF OBLIGATIONS FOR CREDITS IN FOREIGN CURRENCIES OBTAINED ABROAD FOR FINANCING BRAZILIAN EXPORTS, EXISTING ON THE DAY (FIELD 14 OF THE ANNEXED MAP), ON THE VALUE NOT APPLIED IN EXPORT FINANCING, DETERMINED DAILY BASED ON THE BALANCES OF THE ACCOUNTS INDICATED IN THE PREVIOUS ARTICLE, AND REGISTERED IN FIELD 11 OF THE ANNEXED MAP, LIMITED TO THE AMOUNT REGISTERED IN FIELD 7.

ART. 3. IN THE EVENT THAT OBLIGATIONS FOR CREDITS IN FOREIGN CURRENCIES OBTAINED FOR FINANCING EXPORTS, IN THE SAME CURRENCY, REPRESENT A PERCENTAGE EQUAL TO OR GREATER THAN 70% (SEVENTY PERCENT) OF THE TOTALITY OF THE OBLIGATIONS OF THAT SPECIES EXISTING ON THE DAY, FOR THE EFFECTS OF THE PREVIOUS ARTICLE, THE HIGHEST INTEREST RATE IN FORCE FOR THE OBLIGATIONS ASSUMED IN THAT CURRENCY OF GREATER CONCENTRATION SHALL BE USED.

ART. 4. FIELDS 12, 13, AND 14 OF THE ANNEXED MAP MUST BE FILLED OUT APPROPRIATELY, EVEN IF, ON THE DAY, THERE IS NO VALUE TO BE REGISTERED IN FIELD 11.

ART. 5. THE CONVERSION INTO NATIONAL CURRENCY OF THE BASIS OF CALCULATION THUS OBTAINED SHALL BE MADE THROUGH THE APPLICATION OF THE SELLING EXCHANGE RATE FOR THE UNITED STATES DOLLAR AVAILABLE IN THE CENTRAL BANK INFORMATION SYSTEM - SISBACEN, TRANSACTION PTAX800, OPTION 5 - QUOTATIONS FOR ACCOUNTING, RELATIVE TO THE BUSINESS DAY IMMEDIATELY PRECEDING THE DAY OF PAYMENT OF THE TAX.

ART. 6. CIRCULAR NO. 1,589, OF MARCH 2, 1990, IS HEREBY REVOKED.

ART. 7. THIS CIRCULAR SHALL ENTER INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASILIA (DF), APRIL 18, 1990

ANTONIO CLAUDIO SOCHACZEWSKI
DIRECTOR

NOTE - THE MAP PUBLISHED BY THIS CIRCULAR IS AVAILABLE TO INTERESTED PARTIES, BY COPY, AT THE HEADQUARTERS AND REGIONAL DEPARTMENTS OF THIS CENTRAL BANK.