HIGHLIGHTS OF ANP RESOLUTION NO. 19 OF JUNE 17, 2013
Resolution No. 19/2013 of the Brazilian Oil, Natural Gas, and Biofuels Agency (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis - "ANP") went into effect on June 17, 2013, replacing Resolution No. 36/2007 with regard to local content certification. Important changes to the local content requirements include the following:
Revision of old definitions and insertion of new conceptsANP excluded various definitions and included others, such as the concepts of "product family" and "series products", as well as limitations for items that may be considered to be "goods" or "material" for local content calculation purposes.
Transition stage. This resolution establishes that contracts for purchase or provision of services signed before September 11, 2008, which were not amended after such date in order to modify their purpose or term, shall observe the transitional rules set forth in Article 59. In general, during the transitional stage, only the values stated by concessionaires in the quarterly reports shall be considered for local content proof purposes. Foreign goods and systems. Foreign goods and systems will not be subject to certification, except (i) if such goods or systems are manufactured in Brazil and are in Brazil under the "REPETRO" regime, or (ii) systems which are refurbished in Brazilian shipyards or in Brazil. Impossibility of local content certification. ANP established restrictions on the investments that may be considered...