Home Business House of Representatives endorses extension of special customs regime for oil industry

House of Representatives endorses extension of special customs regime for oil industry

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Brazil’s  House or Representatives lower house approved (208 votes to 184) on Nov.30 the text of a Provisional Measure  that extends for twenty years a preferential customs regime for the oil industry, a measure that has helped make Brazil attractive to major global oil companies

The customs regime (Repetro) suspends export and import duties on goods used in oil exploration and production. It has been an incentive for long-term investment in Brazil’s oil and gas industry.

A Provisional Measure (in Portuguese: Medida Provisoria) is a legal act in Brazil through which the President can enact laws without approval by the National Congress. There are two requirements for a provisional measure to be used: urgency and relevance of the matter to be regulated. A Provisional Measure is subject to Congress’ approval in 60 days. If not approved it loses its effectiveness.

The House has yet to vote several amendments to  Provisional Measure,  but the extension of the so-called Repetro scheme is expected to move ahead to the Senate for final approval before the Dec. 15 expiry date.