Problems relating to Trade and Investment on Brazil

 
24. Indigested legislation, abrupt changes
Issue
Issue details
Requests
Reference
(1) Frequently Amended Taxation System - Especially as regards the taxation system, frequent amendments in laws/regulations compel the collection and follow up of detailed information. Moreover, amendments take the form of correction/addition so that the reading the latest law is not enough to grasp the total perspective. Hence, the endless reference to old laws continues to the detriment of efficiency and legibility. - It is requested that GOB takes steps to:
-- simplify and clarify the legislative scheme to the maximum extent possible and
-- ensure all changes are made known to one in the administration without exception.
- Columbia Tax Law, Article 292 (2).
- Implementing Regulation of Columbia Tax Law, Article 23(3), Paragraph 4.
- Laws and regulations of all kinds.
(2) Frequently Amended/Changed Laws and Regulations - Due to the foreign reserves situation, there have been numerous changes in imports the legislation with each change to be effective immediately on the date of promulgation.
Examples: Establishment of Import Quota in 1995; Change in import settlement terms in 1997.

- From time to time, abrupt changes in the legislation are made on import usance, while the details of changes are not made available in certain areas.
- It is requested that GOB:
-- allows ample transitional period, and
-- allows preparatory period of 3 months minimum.

- It is requested that GOB allows a longer period between the promulgation date and the enforcement date in any legislative changes.
- No 002753-ART.2 (1997.4.30)
- Circular BCB 2747 (On Import Usance)
(3) Inadequate Implementing Regulation of legislation and its interpretation - Due to unprepared Pharmaceutical Affairs Law (PAL), it takes many hours and much cost for acquisition of import licence for overseas' products. - It is requested that GOK enables mutual two-way authentication: 510K of the U.S./EU CE marking or Japanese pharmaceutical affairs law, as PAL has been overhauled and introduced especially into Asian countries. - Pharmaceutical Affairs Law (PAL)
(4) Outrageous Control by Secretariat of Labour Inspection, Ministry of Labour & Employment (SIT/MTE) - In October 2014, MFS received SIT/MTE notice, instructing work hour control on cargo truck drivers, including external constructors' drivers. There is no legal requirement for control of workers under payroll of other firms, while substantial cost will accrue. MFS will seek advice of its legal counsel to take responsive measures. - It is requested that GOB introduces a mechanism for a third party's monitoring on justification, etc. of the SIT's requirement.

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