Brazil – Certain Measures Concerning Taxation and Charges

Status Report regarding implementation of
the dsb recommendations and rulings
by Brazil

Addendum

The following communication, dated 16 January 2020, from the delegation of Brazil to the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 21.6 of the DSU.

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Brazil submits this report in accordance with Article 21.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes.

On 11 January 2019, the Dispute Settlement Body ("DSB") adopted its recommendations and rulings in Brazil – Certain Measures Concerning Taxation and Charges (WT/DS472 and WT/DS497). At the following DSB meeting, Brazil informed the DSB of its intention to implement the recommendations and rulings of the DSB in connection with this matter.

Brazil and Japan agreed that the reasonable period of time ("RPT") for Brazil to implement the recommendations and rulings of the DSB would end on 31 December 2019.

Three programmes have expired before the adoption of the reports of the Panel and of the Appellate Body: INOVAR-AUTO expired on 31 December 2017, pursuant to Law 12,715/2012; PATVD expired on 22 January 2017, pursuant to Law 11,484/2007; and Digital Inclusion expired on 30 December 2015, pursuant to Law 13,241/2015. These programmes have expired and have not been renewed. Therefore, there are no further obligations with regard to recommendations made in relation to those programmes.

With regard to the findings on "Processos Produtivos Básicos" (PPBs), Brazil has either revoked or substituted all implementing orders found to be inconsistent with the reports. In this context, all PPBs currently in effect are consistent with Brazil’s obligations under the WTO.

With relation to the findings on the Informatics and PADIS programmes, the Government of Brazil has enacted Law 13.969 of 26 December 2019, bringing those measures into conformity within the agreed RPT.

Brazil is therefore in full compliance with the DSB recommendations and rulings in this dispute.