Legislation - Regulatory Instructions

THE SECRETARY OF THE BRAZILIAN INTERNAL REVENUE DEPARTMENT, within his responsibilities, granted by sub-item III of Article 261 of the Internal Regulations of the Federal Internal Revenue Department, approved by Administrative Ruling MF no. 125 (March 4th, 2009), and in view of the provisions Law no. 9.430 (December 27th, 1996), Articles 18 to 24 and 28, and Law no. 9.959 (January 27th, 2000), Article 2, and Law no. 10.451 (May 10th, 2002), Articles 3 and 4, and Law no 10.637 (December 30th, 2002),article 45, and Law no 10.833 (December 29th, 2003), article 45, and Law no. 11.196 (November 21th, 2005), article 36, hereby sets forth:

Article 1 - The export revenues received in Brazilian currency during the 2010 calendar-year, arising from exports performed with related parties could be multiplied by 1.09 (one and zero nine), according to disposition of Administrative Ruling MF nº 4 (January 13th, 2011), in order to determine the triennial weighted arithmetic average, treated by Normative Ruling SRF no. 243 (November 11th, 2002), article 35.

Paragraph. In order to determinate the triennial weighted arithmetic average of the net profit mentioned in the main section, the export revenues received in Brazilian currency during 2008 and 2009 calendar-year, arising from export performed with related parties can be multiplied by 1.20 (one and twenty) and 1.00 (one), respectively, according to the Administrative ruling MF nº 310 (December 29th, 2008) and Administrative ruling MF nº 1010 (February 19th, 2010).

Article 2 - Alternatively to the triennial average mentioned in article 1, main section, the legal entity could determine the annual net profit of at least five percent referred in Normative Ruling no. 243, article 35 (2002), multiplying the export sales revenues, performed with related entities, by the same factor referred in article 1, main section, only considering the 2010 calendar-year.

Article 3 - This Normative Ruling goes into effect on the date of its publication, giving effects exclusively for the calendar-year 2010.

CARLOS ALBERTO FREITAS BARRETO