IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jul 2013 | Removal date: 01 Jul 2017
Still in force

State loan

On July 1, 2013, the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP) announced a new program that incentivizes R&D in the aero-defense sector. Under the INOVA Aero-defense program, Brazilian aerospace companies can apply for subsidised financing for their R&D projects. This program defines companies that produce aerospace, defence, security or special materials to fit under INOVA Aero-defense’s program. The total funds available for INOVA Aero-Defense are R$ 2.9 billion (USD 1.2 billion).

Only companies that are based in Brazil may apply for these benefits and the financed projects must be undertaken on Brazilian territory. Companies that wish to apply must have revenues of over R$ 16 million or partner with a technological company which passes this revenue requirement. The interested companies must receive approval by the BNDES, FINEP, the Brazilian Ministry of Defense and the Brazilian Space Agency in order to benefit from the program. The BNDES and FINEP may finance up to 90% of the projects' total cost.

The Brazilian government, alongside with the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP), run and finance the program "INOVA firms". Originally launched in 2013, this program's main goal is to innovate new technologies and make Brazilian companies more competitive. The program achieves this by targeting new sectors through time and giving their companies temporal benefits by 1) financing R&D, 2) financing companies directly as shareholders, or 3) providing loans at subsidised interest rates. Involved governmental entities may also guarantee future demand for their goods in some cases. Sectoral programs are launched at the discretion of BNDES and last for a predetermined period of time where companies may apply.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

442 Machine-tools & parts
447 Weapons & ammunition & parts
449 Other special-purpose machinery & parts
469 Other electrical equipment & parts
472 Television & radio transmitters; cameras; telephone sets
478 Packaged software
496 Aircraft & spacecraft; parts

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