Legislation - Regulatory Instructions

THE SUBSTITUTE SECRETARY OF THE BRAZILIAN INTERNAL REVENUE DEPARTMENT, within his responsibilities, granted by Administrative Ruling MF no. 233 (April 14th, 2011), and the sub-items III and XVI of Article 273 of the Internal Regulations of the Federal Internal Revenue Department, approved by Administrative Ruling MF no. 587 (December 21th, 2010), and in view of the provisions of Provisional Measure no. 2.158-35 (August 24th, 2001), article 24, hereby sets forth:

Article 1 - The export revenues received in Brazilian currency during the 2011 calendar-year, arising from exports performed with related parties could be multiplied by 1.11 (one and eleven), according to disposition of Administrative Ruling MF nº 563 (December 28th, 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 2009 and 2010 calendar-year, arising from export performed with related parties can be multiplied by 1.00 (one) and 1.09 (one and zero nine), respectively, according to the Administrative ruling MF nº 1010 (February 19th, 2010) and Administrative ruling MF nº 4 (January 13th, 2011).

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 2011 calendar-year.

Article 3 - This Normative Ruling goes into effect on the date of its publication, giving effects exclusively for the calendar-year 2011.

ZAYDA BASTOS MANATTA