Circular No. 2751 — Proves the application of credits obtained abroad in financing Brazilian exports

CIRCULAR NO. 002751

Dispenses with the proof of the application of credits obtained abroad in the financing of Brazilian exports.

The Collegiate Board of the Central Bank of Brazil, in a session held on 09.04.97, based on art. 9 of Law No. 4.595, of 31.12.64, and having in view the provisions of Provisional Measure No. 1.563, of 31.12.96, and Ordinance No. 70, of 31.03.97, of the Minister of State for Finance,

DECIDED:

Art. 1 For the purpose of proving the application of credits obtained abroad in the financing of Brazilian exports, in order to be entitled to the reduction to zero of the withholding income tax rate provided for in art. 1 of Provisional Measure No. 1.563, of 31.12.96, banks authorized to operate in foreign exchange must use the form of the attached model, in which daily balances in foreign currencies will be registered, expressed by their global equivalence in United States dollars, presented in the following accounts:

1.8.2.06.10-2 FOREIGN EXCHANGE BOUGHT FOR SETTLEMENT - Exportation - Letters to be Delivered

1.8.2.06.20-5 FOREIGN EXCHANGE BOUGHT FOR SETTLEMENT - Exportation - Letters Delivered

1.8.2.13.30-8 FOREIGN EXCHANGE BOUGHT FOR SETTLEMENT - FLUCTUATING RATES - Exportation - Letters to be Delivered

1.8.2.13.40-1 FOREIGN EXCHANGE BOUGHT FOR SETTLEMENT - FLUCTUATING RATES - Exportation - Letters Delivered

1.8.2.20.00-9 FOREIGN EXCHANGE AND DOCUMENTS AT TERM IN FOREIGN CURRENCIES

4.6.1.70.00-4 CENTRAL BANK - SPECIAL CREDIT LINES, IN THE COUNTRY

4.6.3.10.13-2 OBLIGATIONS IN FOREIGN CURRENCIES - Exportation, up to 360 days

4.6.3.10.23-5 OBLIGATIONS IN FOREIGN CURRENCIES - Exportation, above 360 days

4.6.3.20.10-8 OBLIGATIONS IN FOREIGN CURRENCIES - FLUCTUATING RATES - Exportation

Paragraph 1 Foreign exchange contracts with deadlines for delivery of documents or for settlement that have expired are not computed for the purposes and effects of the provisions of this article.

Paragraph 2 For the calculation of the equivalence in United States dollars, the parity that is available in SISBACEN, PTAX800 transaction, option 1, on the day, must be used for each currency.

Art. 2 The tax base is obtained by applying the highest interest rate among those in force on the day, for the set of obligations by credits in foreign currencies obtained abroad, for the financing of exports, on the daily value not applied for this purpose.

Art. 3 In the event that the obligations by credits in foreign currencies obtained abroad, for the financing of exports, in the same currency, represent a percentage equal to or greater than 70% (seventy percent) of the total of the obligations of the species existing on the day, the highest prevailing interest rate for the obligations assumed in that currency of greater concentration will be used, for the purposes of the previous article.

Art. 4 The conversion into reais of the value of the tax due will be carried out by the selling exchange rate, for the United States dollar, of the "closing bulletin" available in SISBACEN, PTAX800 transaction, option 1.

Art. 5 This Circular enters into force on the date of its publication, retroacting its effects to 01.01.97.

Art. 6 Circular No. 2,263, of 06.01.93, is hereby revoked.

Brasília, April 9, 1997

Gustavo H. B. Franco
Director

NOTE: The form referred to in art. 1 of this Circular will be available at the Regional Delegacies/Foreign Exchange Control Sector of this Central Bank.