Circular No. 2627 — Sets Minimum and Maximum Duration for Automobile, Pickup, and Utility Consortium Groups, Cancels Unmarketed Quotas, and Establishes New Conditions for Acquiring Used Goods

CIRCULAR NO. 002627

Sets minimum and maximum duration periods for groups of consortiums for automobiles, pickups, and utility vehicles, cancels unmarketed quotas as specified, and establishes new conditions for the acquisition of used goods.

The Board of Directors of the Central Bank of Brazil, in a session held on 04.10.95, based on Article 33 of Law No. 8.177, of 01.03.91,

DECIDED:

Art. 1. Fix at 50 (fifty) months, minimum, and 60 (sixty) months, maximum, the periods for the duration of consortium groups referenced in automobiles, pickups, and utility vehicles, constituted from the date of publication of this Circular.

Art. 2. The unmarketed additional titles, as well as those contemplated where the corresponding goods have already been acquired, are cancelled, granted to Consórcio Nacional Volkswagen, Consórcio Nacional Fiat, Consórcio Nacional Ford, and Consórcio Nacional GM Ltda., in accordance with the Protocols of Intent and Addenda to these Protocols signed by the Federal Union and Autolatina Brasil S.A., Fiat Automóveis S.A., and General Motors do Brasil Ltda.

Sole Paragraph. The additional titles that have been marketed and are not yet contemplated will be cancelled upon the acquisition of the corresponding goods.

Art. 3. The granting of authorization to administer consortium groups and the formation of consortium groups referenced in home appliances and electronics remain suspended for an indefinite period.

Art. 4. Regarding contemplation by bid in consortium groups, the following must be observed:

I - it is permitted in consortium groups for trucks, buses, tractors, road equipment, agricultural machines and equipment, aircraft, vessels, and real estate;

II - in groups referenced in any other goods, including air travel tickets:

a) it remains prohibited, in those constituted from 20.10.94;

b) it continues to be permitted, in groups constituted until 19.10.94, limited the value of each bid to the equivalent of 10% (ten percent) of the value of the good subject to the contract.

Art. 5. It remains limited, in the consortium groups referred to in item II of the previous article, to the equivalent of 10% (ten percent) of the value of the good subject to the contract, the value of the advance payment, by a non-contemplrated consortium member, of installments in consortium groups.

Art. 6. The contemplrated consortium member of groups referenced in trucks, buses, tractors, road equipment, agricultural machines and equipment, aircraft, vessels, automobiles, pickups, utility vehicles, "buggies", motorcycles, and mopeds may opt for the acquisition of a used good of the same species as that referenced in the contract, provided it is acquired from a legal entity, through the issuance of an invoice and prior authorization by the administrator.

Paragraph 1. For the acquisition of the goods referred to herein, the presentation to the administrator of an Issued Invoice issued by a State Department of Revenue is valid.

Paragraph 2. The administrator will reimburse the group in the event of any losses resulting from the authorization granted for the acquisition of a good whose value and/or condition of conservation prove incompatible with the obligations of the acquiring consortium member towards the group.

Paragraph 3. The provisions of this article also apply to consortium groups already constituted.

Art. 7. This Circular enters into force on the date of its publication.

Art. 8. Circulars No. 2,496, of 19.10.94, 2,543, of 22.02.95, and 2,600, of 03.08.95, are hereby revoked.

Brasília, October 5, 1995

Gustavo Jorge Laboissière Loyola
President