IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 30 Jun 2015 | Removal date: 28 Dec 2016
Still in force

Local sourcing

On 30 June 2015, the Brazilian Development Bank BNDES amended its Prodesign credit line which was launched in 2013 and grants loans to the creative sector (see measure no. 10216 under Related Measures).
 
The amendments include:

  • Duration: Prodesign was supposed to end on 31 December 2015, but was extended until 31 December 2016.
  • Funding: The original fund of 500 million Real (USD 159 million) was increased to 1 billion Real (USD 320 million).
  • Eligible sectors: Additional economic sectors are now eligible for Pordesign loans, including glasses, suitcases, bags, fashion accessories, sports material, sanitary utilities and other items used in civil construction. Previously, Prodesign only supported fashion, furniture, personal hygiene, perfumes, cosmetics, domestic supplies (including electronic supplies), toys, sanitary metals, jewelry, watches, packaging, and ceramic tiles.
  • Local content: Retailers have now to adhere to a national content of at least 60 percent.

 
Subsidies and local content requirements
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 
The measure is considered discriminatory since, in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil. BNDES's long term interest rate was at 6 percent for the period of April to June 2015. The Central Bank's overnight interest rate however is at about 14 percent.
 
Besides this, the bank imposes local content requirements on goods (mainly capital goods), services and software financed through its credit lines.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

282 Wearing apparel, except fur apparel
3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14.
392620 Articles of apparel and clothing accessories (including gloves, mittens and mitts)
4203 Articles of apparel and clothing accessories, of leather or of composition leather.
420310 Articles of apparel
420329 Other
420330 Belts and bandoliers
6111 Babies' garments and clothing accessories, knitted or crocheted.
611120 Of cotton
611130 Of synthetic fibres
6209 Babies' garments and clothing accessories.
620920 Of cotton
620930 Of synthetic fibres
6217 Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 62.12.
621710 Accessories
292 Luggage & handbags; saddlery & harness; other leather articles
4202 Trunks, suitcases, vanitycases, executivecases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travellingbags, insulated food or beverages bags, toile
420212 With outer surface of plastics or of textile materials
420219 Other
420221 With outer surface of leather or of composition leather
420222 With outer surface of plastic sheeting or of textile materials
420229 Other
420231 With outer surface of leather or of composition leather
420232 With outer surface of plastic sheeting or of textile materials
420239 Other
420292 With outer surface of plastic sheeting or of textile materials
420299 Other
293 Footwear other than sports footwear
6402 Other footwear with outer soles and uppers of rubber or plastics.
640220 Footwear with upper straps or thongs assembled to the sole by means of plugs
640291 Covering the ankle
640299 Other
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640351 Covering the ankle
640359 Other
640391 Covering the ankle
640399 Other
6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.
640419 Other
640420 Footwear with outer soles of leather or composition leather
294 Sports footwear, except skating boots
6402 Other footwear with outer soles and uppers of rubber or plastics.
640219 Other
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640319 Other
6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.
640411 Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes and the like
321 Pulp, paper & paperboard
4803 Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibres, whether or not creped, crinkled, embossed, perforated, surfacecoloured, surface dec
480300 Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibres, whether or not creped, crinkled, embossed, perforated, surfacecoloured, surface dec
362 Other rubber products
4015 Articles of apparel and clothing accessories (including gloves, mittens and mitts), for all purposes, of vulcanised rubber other than hard rubber.
401511 Surgical
401519 Other
401590 Other
369 Other plastics products
3922 Baths, showerbaths, sinks, washbasins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware, of plastics.
392220 Lavatory seats and covers
392290 Other
3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14.
392610 Office or school supplies
392630 Fittings for furniture, coachwork or the like
392640 Statuettes and other ornamental articles
392690 Other
372 Non-structural ceramic ware
6910 Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures.
691010 Of porcelain or china
691090 Other
384 Sports goods
9506 Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including tabletennis) or outdoor games, not specified or included elsewhere in this Chapter; swimming pools and paddling pools.
950629 Other
950640 Articles and equipment for tabletennis
950651 Lawntennis rackets, whether or not strung
950661 Lawntennis balls
950662 Inflatable
950669 Other
950670 Ice skates and roller skates, including skating boots with skates attached
950691 Articles and equipment for general physical exercise, gymnastics or athletics
950699 Other

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