RESTRICTED
WORLD TRADE G/STR/N/1/BRA
21March 1996
ORGANIZATION(96-1030)
Original: English
STATE TRADING
Notification Pursuant toArticle XVII:4(a) oftheGATT 1994 and
Paragraph 1oftheUnderstanding ontheInterpretation ofArticle XVII
BRAZIL
Thefollowing communication, dated 8March 1996, hasbeenreceived from thePermanent
Mission ofBrazil.
_______________
1. COBRA -Computadores eSistemas Brasileiros S.A.
(a) Legislation andobjectives
- COBRA wascreated in1974 asaprivate company, COBRA became indirectly controlled by
theFederal Government in1977, through theparticipation ofBanco doBrasil S.A., Banco
Nacional deDesenvolvimento Econômico eSocial (BNDES), Caixa Econômica Federal (CEF)
andServiçoFederal deProcessamento daDados (SERPRO), asaninstrument ofthenational
policy oninformatics;
- In1990, thecompany came under control ofBanco doBrasil S.A., which holds 80.6percent
ofitscapital stocks;
- Atpresent, thecompany provides services oftechnical assistance toBanco doBrasil andother
companies inthedomestic market. Theprivatisation process isunder way.
(b) Functioning ofthecompany
- COBRA operates withonlyoneimporter ofinformatics components andequipment, through
partnership withmanufacturers anddistributors intheinternational market, under market
conditions;
- Theprivate sector operates inthissegment under thesame conditions;
- Thecompany doesnothavethepractice ofestablishing longtermimport contracts.G/STR/N/1/BRA
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(c) Statistical information fortheperiod 1992/1994 (imports -US$thousands)
Year Spare parts Equipment Software Total
1992 562.5 93.0 5.1 660.6
1993 289.4 795.4 48.3 1,133.1
1994 3,189.5 909.3 180.3 4,279.1
Source: COBRA -Computadores eSistemas Brasileiros S.A.
2. Petrobrás Química S.A.-PETROQUISA
(a) Legislation andobjectives
- PETROQUISA wascreated byDecree No.61.981, of28December 1967, based on
LawNo.2004/53, under theform ofmixed capital company, subsidiary ofPetróleo
Brasileiro S.A.-PETROBR ÁS.Thecompany hastheobjective ofpromoting theintegration
oftheprivate sector intheGovernment ’sefforts todiversify industrial activities andtopromote
industrial projects inthepetrochemical sector.
(b) Functioning ofthecompany
- Atpresent, PETROQUISA participates inother companies involved withmanufacture, trade,
imports andexports ofproducts from chemical andpetrochemical companies ingeneral.
PETROQUISA ’sactivities arelimited tothemanagement ofitsshareholding participation,
thus, notparticipating ininternational trade.
(c) Statistical information fortheperiod 1992/1994
- Notapplicable duetoitem(b)above.
3. ITAIPU Binacional
(a) Legislation andobjectives
- ITAIPU wascreated in1973, asresult oftheinternational agreement between theGovernments
ofBrazil andParaguay, which constituted “ainternational juridical company ”;
- Itsobjective ittoexplore thehydroelectric resources ofParaná River.
(b) Functioning ofthecompany
- Inconformity withtheinternational treaty signed between Brazil andParaguay, eachcountry
hastherighttoacquire fromtheother theexceeding oftheenergy quota allocated toeachparty
(50percent). InthecaseofBrazil, suchacquisition isdonebyELETROBR ÁS,theholding
company oftheBrazilian electrical system;
- Inpractice, Paraguay doesnorconsume thetotality ofitsenergy quota produced byITAIPU,
soBrazil works asanimporter oftheexceeding amount.G/STR/N/1/BRA
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(c) Statistical information fortheperiod 1992/1994 (Imported Electric Energy -US$Thousands):
Year Million MWh US$
1992 24.5 52,250.3
1993 28.0 58,796.0
1994 32.3 60,571.4
Source: ITAIPU Binacional
4. Industrias Nucleares doBrasil S.A.-INB
(a) Legislation andobjectives
- INBwascreated byLawNo.5.570, of1December 1971, under denomination ofCompanhia
BrasileiradeTecnologiaNuclear-CBTN,whichwaschangedtoEmpresasNuclearesBrasileiras
-NUCLEBR ÁSand,later, became Indústrias Nucleares doBrasil S.A.(Decree LawNo.2.464,
of31August 1988);
- Objective: toassist governmental interests indeveloping anddominating hightechnology in
thegeneration ofelectric energy.
(b) Functioning ofthecompany
- INBoperates atpresent onlywithimports.
- Theprivate sector doesnotoperate inthearea, which constitutes amonopoly oftheUnion.
- Thecriteria usedfordetermining thequantities beimported: suchamount isdetermined
according tothenecessity oftheBrazilian nuclear power plants, operated byFURNAS electric
complex (FURNAS Centrais Elétricas).
- Long-term contracts -atpresent, there arethree contracts inforce withSiemens (Germany)
andonewithURENCO (Germany, Netherlands andUnited Kingdom).
(c) Statistical information fortheperiod 1992/1994 -imports ofspare partsandfuelforthenuclear
power plant (enriched uranium):
Year US$Thousands
1992 4,500.00
1993 Noimports
1994 Noimports
Source: INB-Indústrias Nucleares Brasileiras S.A.G/STR/N/1/BRA
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5. Florestas RioDoce S.A.
(a) Legislation andobjectives
- Thecompany iscontrolled byCompanhia ValedoRioDoce -CVRD, created in1967onthe
basis offiscal incentives bytheFederal Government. Later, Florestas RioDoce S.A. was
transformed intoacompany fordevelopment offorestry projects ofCVRD.
(b) Functioning ofthecompany
- Thecompanyparticipatesintheinternationalmarketbyimportingcapitalgoods,undertendering
process, fortheinstallation ofanindustry, and,intheareaofexports, through thesaleof
eucalyptus andboards;
- Theprivate sector operates inthisareaunder equal conditions, considering thatthecompany
receives nosubsidies from thegovernment;
- Thecriteria usedfordetermining thequantities beimported -theexports ofwood andboards
isdefined according toexternal demand andproduction capacity;
- Long-term contracts -non-existent untilpresent.
(c) Statistical information fortheperiod 1992/1994
- There were noexports inthisperiod -export operations began in1995.
6. Companhia ValedoRioDoce -CVRD
(a) Legislation andobjectives
- CVRD wascreated under theform ofaSociedade Anônima (corporation), byDecree Law
No.4.352, of1June1942, aimed atexploitation, trade, transport andexport ofiron-ore from
Itabira mines, aswellastheoperation oftheVitória-Minas Railroad.
(b) Functioning ofthecompany
- CVRD operates inexternal market asexporter, without anyprivilege incomparison toprivate
competitor companies;
- Theamount tobeexported (about 2/3ofthecompany ’sproduction) isdetermined bylong-term
contracts, from 5to15years, which form 95percentoftheoperations.G/STR/N/1/BRA
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(c) Statistical information fortheperiod 1992/1994
EXPORTS OFIRON ORE AND PELLETS (US$ Thousands)
1992 1993 1994
1,000 TM US$ 1,000 TM US$ 1,000 MT US$
Fine 46,767 901,568 47,576 821,256 50,903 796,501
Granulated 4,069 83,649 4,043 74,397 5,290 91,002
Pellet feed 1,233 22,659 3,086 46,472 3,064 42,243
Pellets 6,164 206,306 7,126 218,505 9,875 296,113
National
production145,767 150,348 166,514
Source: Cia.ValedoRioDoce
7. Companhia Nacional deAbastecimento -CONAB
(a) Legislation andobjectives
- CONAB wascreated under theformofapublic enterprise byLawNo.8.29, of2April 1990,
andislinked toMinistry ofAgriculture, Supply andAgrarian Reform. Thislawhasunified
three other previously existing government companies. CONAB was instituted by
Decree No.99.944, of16December 1990, andhastheobjective toactasaState instrument
insupport oftheformulation andexecution ofagricultural andsupply policies, assuring the
basic necessities ofsociety, preserving andstimulating market mechanisms.
(b) Functioning ofthecompany
- CONAB doesnotactinimports orexports. Itmaycarry onimports, under exceptional
circumstances, bydecision ofMinistry ofAgriculture, while theprivate sector isresponsible
fortheimports ofagricultural products innormal situations.
(c) Statistical information fortheperiod 1992/1994
- There were noimports operations inthisperiod.
8. Casa daMoeda doBrasil -CMB
(a) Legislation andobjectives
- CMB wascreated byLawNo.5.895, of19June1973, withtheobjective ofmanufacturing,
under exclusive conditions, money andcoins, printing postal andfiscal federal stamps, aswell
asfederal public bonds.G/STR/N/1/BRA
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(b) Functioning ofthecompany
CMB operates intheinternational market, inthefollowing sectors:
- Exports: Money, coins, passports, postal stamps, bonuses etc.;
- Imports: Rawmaterials, inputs, equipment andspare parts.
Theprivate sector doesnotwork inthedomestic market asmanufacturer ofmoney, coins,
passports, postal andfiscal stamps andfederal public bonds.
Criteria usedfordetermining thequantities beexported orimported:
- Exports: Theproduction capacity available, volume oforders, price andterm.
- Imports: Endofanequipment cycle, attherequest ofclients (inputs andraw-materials)
forexport orders.
(c) Statistical information fortheperiod 1992/1994 (IMPORTS /EXPORTS -US$thousands)
Imports Exports
Spare parts and
equipmentRawmaterials andinputs
1992 127.1 803.9 1,085.0
1993 1,360.1 1,705.6 3,815.4
1994 2,426.0 1,462.5 1,057.7
Source: Casa daMoeda doBrasil
9. BR-Petrobrás Distribuidora S.A.
(a) Legislation andobjectives
- BRDistribuidora wascreated onJuly.20.1971, based onLawNo.2004/53, bydecision
oftheConselho Nacional doPetróleo. Itsobjective istoproduce andcommercialise
lubricants andfuel.
(b) Functioning ofthecompany
- Thecompany exports lubricants andfuelforthesupply offoreign aircraft andvessels
andimports additives fortheproduction oflubricants.
- Other companies operate inthesector, under rules ofDepartamento Nacional de
Combustíveis. BRDistribuidora istheonlycompany tooperate inthewhole Brazilian
territory.
- Long-term contracts between BRDistribuidora anditsclients andsuppliers arebased
onnegotiations andmarket conditions.G/STR/N/1/BRA
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(c) Statistical information fortheperiod 1992/1994 (Imports/Exports US$Thousands)
Exports Imports
Fuel Lubricants Machinery and
equipmentAdditives
1992 US$ 41,954 2,648 5,786 1,404
M3 203,290 2,640 - -
1993 US$ 31,908 3,048 1,404 2,328
M3 472,560 3,136 - -
1994 US$ 23,768 5,558 - 1,971
M3 475,334 6,267
Source: BR-Petrobrás Distribuidora S.A.
10.Petróleo Brasileiro S.A.-PETROBR ÁS
(a)Legislation andobjectives
-PETROBR ÁSwascreated byLaw2.004, of1953, which established theoilnational policy and
gavenewdefinition totheConselho Nacional doPetróleo. Under themonopoly oftheUnion,
PETROBR ÁSwasincharge ofcarrying outtheactivities intheoilsector.
(b)Functioning ofthecompany
-PETROBR ÁSoperates inimports andexports anditsactivities aredetermined bythenecessities
oftheBrazilian internal market. Theexports arelimited toexceeding oilderivatives.
-Theimport contracts aresigned according totheinternational market. About 70percentofsuch
contracts areoneyeartermandtherestcorrespond toshorter periods.G/STR/N/1/BRA
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(c)Statistical information fortheperiod 1992/1994 (imports/exports -US$ Millions and
Thousand BPD)
Year Product Imports (c.i.f.) Exports (f.o.b.) (1)
US$ BPD US$ BPD BPD
1992 Oil 3,407 495 0 0 643
Derivatives 1,220 165 620 87
1993 Oil 2,388 400 0 0 665
Derivatives 2,455 388 863 132
1994 Oil 2,685 474 0 0 680
Derivatives 2,046 319 799 124
Source: PETROBR ÁS
(1)National Production ofProcessable Oil
BPD=Barrels PerDay