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: 06 Feb 2014 | Removal date: open ended
Still in force

State loan

The Brazilian Development Bank (BNDES) announced that it will support Embraer with BRL 1.4 billion (USD 588 million) to develop Legacy 500, its new mid-size jet, and its second generation commercial jets, E-Jets. The loan is backed by three different types of credit lines: (1) Investment Support (Sustençăo do Investimento), i.e., acquisition of capital goods (2) Pro-engineering (Proengenharia), i.e., development of national engineering (3) Social Investments of Companies (Investimentos Sociais de Empresas), i.e., corporate social responsibility The development of innovative technologies will mainly happen at Embraer’s Săo José dos Campos factory, in the state of Săo Paulo. Besides this, one part of the financing will be used for social investments in Embraer’s schools, such as the Embraer Casimiro Montenegro Filho college. Embraer estimates that the total investments will involve 1,800 employees until 2018. The Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil. In the case of companies with headquarters abroad, majority shareholders (private or public) need to have residence in Brazil.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

496 Aircraft & spacecraft; parts
8802 Other aircraft (for example, helicopters, aeroplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
880211 Of an unladen weight not exceeding 2,000 kg
880212 Of an unladen weight exceeding 2,000 kg
880220 Aeroplanes and other aircraft, of an unladen weight not exceeding 2,000 kg
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg
880240 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg

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