Normative Instruction No. 1,901/2019: Repetro-Industrialização Regulation

On July 19, 2019, Normative Instruction No. 1901 was published, establishing a special regime for the manufacturing of goods destined to be used for the exploration and production of oil, natural gas and other fluid hydrocarbons (the "Repetro-Industrialização" regulation).

We summarize below the main aspects of the Repetro-Industrialização rule:

• Federal taxes will be suspended on the importation or local purchase of raw materials, intermediate products and packaging materials to be used to manufacture goods later destined to entities legally qualified in Repetro and Repetro-SPED (Article 2).
• The following entities can be legally qualified to the regime: (i)  The manufacturers of final goods to be directly supplied to other companies qualified in the Repetro and Repetro-SPED regimes (Article 2, sole paragraph) and (ii) intermediate manufacturers, whose goods will be used in the final manufacturing (Article 2, paragraph II).