ROTTERDAM CONVENTION

Brazilian Seminar of Qualification for the Rotterdam Conventionon the Prior Informed Consent – PIC

Procedure for Certain Hazardous Chemicals and Pesticides in International Trade

Control of imports/exports of hazardous chemicals

- Work Document -

Brasília, May 21st to 24th, 2007.SUMMARY

1. Introduction1.1. Rotterdam Convention1.2. Brazilian Seminar of Qualification for the Rotterdam Convention

2. Brazilian System of Imports and Exports Control2.1. Imports2.2. Exports2.3. Exports Customs Clearance2.4. System of Foreign Trade Information Analysis – ALICE Web

3. Performance of Brazilian environmental area in the control of foreign trade of hazardous chemicals and waste.

4. Rotterdam Convention in Brazil

Annexes

I. Chemicals Subject to the Prior Informed Consent Procedure (Annex III of the Convention)

II. Schedule of Brazilian Actions Aiming at the Implementation of the Convention.

III. Basel Convention – Procedures for Waste Import and Export

IV. Seminar Program

V. List of Participants

VI. Glossary

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1. Introduction

The ecologically safe handling of toxic substances, including prevention of illegal international traffic of toxic and hazardous products, is present on Chapter 19, Agenda 21, admitting the substantial use of chemical products is essential for reaching the social and economical goals of the world community, and the best modern practice shows they can be widely used with a good cost – efficiency relation, and a high safety level.

For the compliance with the Chapter 19 of Agenda 21, six program areas were proposed: expansion and acceleration of international evaluation of the chemical risks; unification of classification and labeling of chemical products; information interchange about toxic chemical products and chemical risks; implantation of risk reduction programs; strengthening of national abilities and potential to handle chemical resources; prevention against illegal international traffic of toxic and hazardous products.

In Chapter 20, Agenda 21 approaches healthy environmental handling of hazardous waste, and also includes the prevention against the illicit international traffic of such waste, with the general goal of preventing it as much as possible and to reduce production of hazardous waste to its minimum, submitting such waste to handling that will stop them from causing damage to the environment.

The activities planned on Chapters 19 and 20 are closely related to many of the fields of programs from other chapters, and so having influence on them. Therefore, it is necessary to have an integrated general approach for the handling of hazardous products and waste. Such requires the cooperation and active participation from the international community, from governments and from the industry.

In this context, three Conventions were developed, dealing with the healthy environmental handling of chemicals – the Basel Convention about the Control of Hazardous Waste Transfrontiers Shipments and their Deposit, the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, and the Stockholm Convention about Persistent Organic Pollutants (POP), which, altogether, offer the basis for building a healthy environmentally global handling of hazardous substances.

The United Nations Environment Programme - UNEP, sponsors the secretariat for the Basel Convention and for the Stockholm in Geneva, and along with the Food and Agriculture Organization of the United Nations - FAO, the Rotterdam Convention Secretariat, located in Geneva and in Rome.

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1.1. Rotterdam Convention

The Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade was adopted in September 1998, and started to be in force on February 24, 2004, when 50 countries have ratified it. Brazil signed on the Convention in 1998, and approved its content by means of Legislative Decree No. 197, of May 07, 2004. The publishing of the Rotterdam Convention in Brazil happened by Decree No. 5.360, of January 31st, 2005.

The Rotterdam Convention – PIC originated from FAO’s International Procedure Code about the distribution and use of pesticides, 1985, and from London Guidelines established by UNEP in 1987, for the exchange of information in the international trade of chemicals. PIC aims at the control of transfrontier shipments of hazardous chemical products, based on the prior consent principle of the importing country and in the share responsibility in the international trade of these products. Currently, according to the website¹ of the Rotterdam Convention, formed by 117 parts and 39 substances selected are included by PIC list (Annex I), being most of them of agricultural use. The information on the substances of PIC list are found on PIC circular letter, a document updated each six months by the Convention’s Secretariat.

The PIC Convention is made operational by the Conference of Parties – COP; Chemical Review Committee; and the Secretariat.

The Conference of the Parties, instituted by the Convention, is summoned along with Executive Director of UNEP and by Director-General of FAO. COP keeps under permanent review and evaluation the implementation of the Convention, and it performs, among others, the following functions: creation of subsidiary agencies deemed as necessary for the implementation of the Convention; the cooperation with international organizations and inter-governmental and non-governmental relevant agencies; and the analysis and adoption of any additional action which may be needed for performance of the Convention’s objectives.

The Chemical Review Committee – CRC, has as main function, as of the verification of information received by means of notification of prohibitive legislation or legislation severely restricting the use of a determined substance, recommend the inclusion or not of the substance on Annex III of the Convention. The CRC is also in charge of recommending the exclusion of substances from Annex III. The CRC elaborates the Decision Guidance Document (DGD), which is submitted to COP and made available for the Parties, in order to subsidize the replies relating to the consent on future imports of substances recently included in Annex III.

The members of Chemical Review Committee are appointed by the Conference of the Parties, based on the criteria of equal geographic distribution and also taking into consideration the need to keep an adequate balance between the developed and under development Parties. The Committee is formed by a limited number of experts in chemicals management, appointed by their respective governments.

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The Secretariat is in charge of, among other affairs, the organization of Conference of Parties meetings and its subsidiary agencies, and the assistance to the Parties, especially for the under development countries and those under economic transition, upon request. The Secretariat’s functions are performed along with UNEP Executive Director and by Director-general of FAO.

The text of PIC Convention is composed of preface, 30 articles and other six annexes, respectively:

Annex I – Information requirements for notifications made pursuant to article 5;Annex II – Criteria for listing banned or severely restricted chemicals in Annex III;Annex III – Chemicals subject to the prior informed consent procedure;Annex IV – Information and criteria for listing severely hazardous pesticide

formulations in Annex III;Annex V – Information requirements for export notification; andAnnex VI – Settlements of disputes.

1.2. Brazilian Seminar of Qualification for the Rotterdam Convention

Aiming at expanding the knowledge about the Convention and consequently about the proceedings foreseen, related to import and export of hazardous chemicals, which are object of the Convention, the Ministry of Environment, Brazilian technical focus of the Convention, and the Rotterdam Convention Secretariat held the Brazilian Seminar of Qualification for the Rotterdam Convention, from May 21 to 24, 2007, in Brasília (Annex IV), with the participation of public agencies and private institutions representatives, related to foreign trade of chemicals (Annex V).

The event sought to increment the domestic cooperation, by means of technical debates on the Rotterdam Convention. The theme of the event was the control of imports / exports of hazardous chemicals, and it had as main goal to provide the participants a comprehension of requirements comprised by the Convention and try to establish procedures for its performance.

As the final results of the seminar, besides training in question, it was created the information flow and interactions between the different agencies in order to increment the actions of implementation of Rotterdam Convention in Brazil, as well as the schedule of actions focused to its implementation (Annex II).

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2. Brazilian system of import and export control

The Integrated System of Foreign Trade (SISCOMEX, in Portuguese Abbreviation), established by Decree No. 660, of 1992, is a Brazilian administrative instrument that includes the activities of registration, follow-up and control of foreign trade operations, upon the single, electronic flow of information.

SISCOMEX promotes the integration of activities of all the management agencies of foreign trade, eliminating parallel controls and significantly decreasing the volume of documents involved in the operations. It makes the administrative processing faster and enables follow-up, orientation and control of several steps of the exporter and importer process. Its implementation granted more reliability, reduction of costs and bureaucracy, automation, quick access to statistics, and faster procedures.

The operations recorded in this System are analyzed in real time, both by the management agencies and by the consenting agencies, which establish specific rules for clearance of goods within their area of competence.

The user may register and follow his/her exports and imports, receive messages, and exchange information with the agencies responsible for the consents and inspections.

The access to SISCOMEX may be performed from any computer connected to internet in domestic territory (banks, brokers, customs clearance, or the user’s), as well as by means of terminals installed in the federal departments in charge of foreign trade control.

The intervenient governmental agencies on SISCOMEX are classified as:

Management: responsible for the administration, maintenance and improvement of the System, within its respective areas of competence. They are: Brazilian Federal Revenue (RFB), responsible for the customs, fiscal and tax areas; - Foreign Trade Secretary (SECEX) of the Ministry for Development, Industry and Foreign Trade (MDIC), responsible for the administrative and commercial areas; and – Central Bank of Brazil (BACEN), responsible for the financial and currency exchange area.

Consent: all the agencies that perform analysis, within their area of competence, about determined operations of export or import for certain types of goods, whether due to the product intended to be traded, or due to the nature of the operation in question. The consenting agencies are interconnected to SISCOMEX, in order to make such analysis faster.

2.1. Imports

The administrative system of Brazilian imports is under terms of Administrative Rule MDIC/SECEX No. 35, of November 24, 2006, and contains the following:

a) Imports Exempt from Licensing;

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b) Imports Subject to Automatic Licensing; andc) Imports Subject to Non-Automatic Licensing.

As general rule, the Brazilian imports are exempt from licensing. The importer or its legal representative must only provide the registration of Declaration of Imports (DI) on SISCOMEX, with the objective of starting procedures for Customs Clearance next to the local unit of Federal Revenue Secretary (SRF). Except if otherwise stated in the legislation, DI can only be registered after the arrival of the goods in Brazil. (Flowchart 1).

Flowchart 1. Imports Exempt from Licensing

Before starting your imports operation, the interested party shall verify if it is necessary to enable use on SISCOMEX, and if it is in force.

The imports subject to licensing occur in the event the legislation requires the previous authorization from specific agencies of Public Administration of Brazil for import of determined goods, or when specific conditions must be complied with. In such cases, the importer shall make an Import License (LI) on SISCOMEX, containing the information of trade, financial, currency exchange and fiscal nature relevant to the operation intended to perform (Flowchart 2). The LI must be registered in advance, according to the legislation, and the shipping of goods abroad can only happen after licensing authorization, except if otherwise provided by the legislation. The maximum term for LI procedure is of 10 business days in case of Automatic Licensing, and of 60 calendar days in case of Non-Automatic Licensing, as of the registration date on SISCOMEX. Usually, both licensing are valid for 60 days, for purposes of shipping goods abroad.

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ENABLED ON SISCOMEXNCM CLASSIFICATION

ADMINISTRATIVE TREATMENT

DECLARATION OF IMPORTS(DI)

CUSTOMS CLEARANCE

Flowchart 2. Imports Subject to Licensing

The relationship of products / operations subject to licensing may be found on “Administrative Treatment” of SISCOMEX Imports, also available at the electronic address of MDIC (http://www.desenvolvimento.gov.br), where they are listed in function of their fiscal classification at the Mercosul Common Nomenclature (NCM)1.

After registration, LI presents “for analysis” status, which means it is available for allocation at the responsible consenting agency. After allocated, LI gets “under analysis” status, indicating it is already undergoing agency’s verification. The requirements eventually thought of by the consenting agency are registered on SISCOMEX for acknowledgement and provisions by the importer, who, while not performing them, shall find LI with the “under requirement” status.

Once the analysis is finished, the consenting agency registers its decision in the System, with the indication of Granted or Not Granted. In case of LI be subject to grant from more than one agency, the importer must await authorization from all of them. After

1 NCM: – it is a code formed by internationally standardized digits, and other two digits specific from Mercosul.

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ENABLED ON SISCOMEXNCM CLASSIFICATION

ADMINISTRATIVE TREATMENT

IMPORTS LICENSE(LI)

CONSENTING AGENCY

DECISION

NOT GRANTED

GRANTED

IMPORTS DECLARATION (DI)

CUSTOMS CLEARANCE

REQUIREMENT

AUTHORIZED SHIPPING

In the event there is the need of physical inspection

authorization of all the consenting agencies, the goods can be shipped abroad, and when the same gets to Brazil, should be registered in the Declaration of Imports (DI).

When the DI is created, the importer shall inform the No. of Imports License, so that SISCOMEX makes the bond of LI to DI. Thus, when registering DI on the System, the data, already typed in by the time of LI creation, shall be automatically transferred to the respective DI.

Due to previous grants required for some products, it is important for the foreign exporter, before goods shipping, to get information with the importer about the necessary procedures for licensing.

Although the importer is the responsible one for the compliance with the Brazilian regulations, it is necessary that the exporter provides all the required information, specially technical details of the product, which will define not only the correct classification, but also the collection of previous requirements of consenting agencies.

The Imports License coordinate information referring to goods and to operations, in five cards: basic information (referring to the importer, the source country and the units of Brazil Federal Revenue), supplier, goods, negotiation and complementary information.

The customs clearance has as purpose to verify the accuracy of data declared by the importer in relation to the imported goods, to the documents presented and to the legislation in force, aiming at clearance and delivery of goods to the importer.

Every goods coming from abroad, imported as definite title or not, subject or not to payment of Imports Tax, must be submitted to imports clearance, which is performed based on declaration presented to the customs unit to which the good is under control.

Overall, the imports clearance is processed by means of a Declaration of Imports (DI), registered in the Foreign Trade Integrated System (SISCOMEX), under the terms of Regulatory Instruction SRF No. 680/06. However, in some circumstances, the importer may choose a simplified customs clearance, which may be done by SISCOMEX or by specific forms, depending on the case.

The customs clearance is divided into two categories: the clearance for consumption and clearance for admission under special customs system or applied in special areas.

The clearance for consumption occurs when the goods entering the Country are destined to use by domestic productive devices, as supplies, raw-materials, production assets and intermediary products, as well as when they are destined for own consumption and re-sales. Thus, the clearance for consumption aims at nationalization of the imported goods, and applies to it the common system of imports.

Most of the goods exported or imported are submitted to common customs clearance. In some situations, however, the interested party may prefer the simplified customs clearance.

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The parameterized selection is the SISCOMEX function, by means of which, after registration of Declaration of Imports, it submits the same to procedures of customs verification, in accordance with the criteria previously established by the General Coordination of Customs Administration (COANA, in Portuguese abbreviation).

The Declaration of Imports shall be selected, after its registration, for one of the following of customs check:

I - Green – by which the System registers the automatic clearance of goods, dispensed from documents and goods check and preliminary verification of amount;

II - Yellow – by which documents inspection is performed, and when presenting no irregularities, the customs clearance shall be performed, dispensed from goods check and preliminary verification of amount;

III - Red – by which the clearance of goods is only performed after documents and goods check; or

IV - Gray – by which the clearance is only performed after documents and goods check, and having performed preliminary verification of customs amount, once complied with such other requirements established in specific rule.

Therefore, according to the parameterized selection, the Declaration of Imports shall be the documents and goods check and verification of customs amount.

The documents verification is destined to prove: the integrity of presented documents; the accuracy and correspondence of information provided on Declaration, in relation to those presented on documents that guide them; the compliance with requirements of legal order or regulatory ones, corresponding to customs and tax systems requested; and the merit of tax benefit pleaded.

The physical check is destined to identify the goods, as well as to determine its source and fiscal classification, it must be performed in any condition, by the presence of importer or its legal representative.

The preliminary verification of amount declared has as objective to check the existence of documents that justify the declared customs amount, and the correspondence of information contained with those provided at Declaration of Imports and at Customs Amount Declaration (DVA in Portuguese abbreviation). This verification shall begin only after presentation of DVA on SISCOMEX. DVA shall be filled out for each addition, which goods are object of customs amount control.

2.2. Exports

The Registration of Exports (RE) is the set of information of commercial, financial, currency exchange and tax nature that present features of the export operation by means of specific conformation. Obtaining RE is the initial step for most of the operations, except the cases dispensed from such or for which the Simplified Declaration of Exports (DSE, in Portuguese abbreviation) is used.

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The administrative treatment for exports is similar to imports’. The exports operations can be classified under Common System (Flowchart 3) or Subject to Previous Approval (Flowchart 4). In Common System, it can be classified as: free, prohibited or suspended. In Subject to Previous Approval, it can be classified as: operations subject to special proceedings, sales of used goods, temporary exports, subject to quota, margin not withdrawn and without exchange retention, without exchange coverage, and goods subject to approval from specific agency (Brazilian Institute of Environment and Renewable Natural Resources – IBAMA, Ministry of Agriculture, Livestock and Food Supply – MAPA, Brazilian Sanitary Surveillance Agency / Ministry of Health – ANVISA/MS and such others).

Flowchart 3. Exports under Common System - Free

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ENABLED ON SISCOMEXNCM QUALIFICATION

ADMINISTRATIVE TREATMENT(RE)

DECLARATION OF EXPORTS

CUSTOMS CLEARANCE

Flowchart 4. Exports Subject to Previous Approval

2.3. Exports Customs Clearance

It is the fiscal clearance procedure of goods destined to go abroad, based on information contained in the Registration of Exports (RE), in the Formal Bill (first copy) and in data available about the goods, for verification by the customs authorities. The Exports Customs Clearance is processed by SISCOMEX. In the case of land, lake or river exports, besides the first copy of Formal Bill, it is necessary to present Bill of Lading and International Cargo Manifest.

The Exports Customs Clearance has as basis the declaration made by exporter or by its attorney-in-fact (customs forwarder or employee specifically appointed), also by SISCOMEX. The Declaration for Exports Clearance (DDE, in Portuguese abbreviation), also known as Clearance Application (SD), should be presented to the relevant unit of Federal Revenue.

By the end of the proceeding, the Federal Revenue, by SISCOMEX, registers the “Approval”, which consists on confirmation of goods shipping or its frontier transposition.

2.4. Foreign Trade Information Analysis System – ALICE Web

The Foreign Trade Information Analysis System by Internet, called ALICE-Web, of the Foreign Trade Secretary (SECEX), of the Ministry of Development, Industry and Foreign Trade (MDIC), was developed aiming at updating the forms of access and systems of divulgation of statistics of Brazilian exports and imports. It is a consultation system of public access.

ALICE-Web is monthly updated, as of divulgation of the balance of trades, and it has as basis the data obtained from the Foreign Trade Integrated System (SISCOMEX), a system that manages the Brazilian foreign trade.

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ENABLEDREGISTRATION OF

EXPORTS (RE)

Consenting Party Analysis

Prohibited or

suspended

Declaration of Exports (DE)

Not granted or Rejected

Common system

Free

Granted or Performed

ALICE-Web’s information is available monthly and kept (from January 1989 up to the last month disclosed).

The following information is available for consultation, both for exports and for imports: goods; country; economic block; Federation unit (States and Federal District); transportation; and port.

The electronic address of Alice System is http://aliceweb.desenvolvimento.gov.br

3. Performance of Brazilian environmental area in the control of foreign trade of hazardous chemicals and waste.

Brazil is signatory of international treaties that deal with the control of determined hazardous chemicals and waste. In this sense, the proceedings for import and export of chemicals that need follow-up from the Brazilian Government are consolidated, such as the Montreal Protocol on Substances that Deplete the Ozone Layer (SDOs) and the Basel Convention that treats the transfrontier shipping of hazardous waste and its deposit. The transfrontier shipping of waste is only allowed between countries which are members of the Basel Convention, being forbidden for non-members, and follows the imports procedures by SISCOMEX. For exports, it is used a device of exports notification between the national authorities appointed (Annex III).

For the Montreal Protocol, only the imports procedure occurs, being such performed by SISCOMEX. The Brazilian Institute of Environment and Renewable Natural Resources – IBAMA, agency bond to the Ministry of the Environment, is a consenting agency, responsible for the analysis and granting or no granting of imports license, and within the scope of the Basel Convention, by exports notification.

Flowchart 5 shows the procedures adopted in Brazil for import and export of chemicals related to International Treaties.

Flowchart 5: Import and Export of chemicals

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IMPORT EXPORT

SISCOMEX Designated National Authority - DNA

Import permitted or not Export permitted or not

4. Rotterdam Convention in Brazil

The Brazilian Government approved the Rotterdam Convention by means of Legislative Decree No. 197, of 2004 and, by Decree No. 5.360, of January 31, 2005 it was issued.

In Brazil, there are currently three Designated National Authorities: the Ministry of Foreign Affairs (MRE) – official contact point, the Ministry of the Environment (MMA) and IBAMA – agency bond to MMA (Ministry of the Environment) and executer of the National Policy for the Environment.

The effective implementation of the Convention requires the adequate flow of information and coordination in country level, between the Designated National Authority and the others active persons inside and outside the Government.

As a first step, the authorities need to have a common agreement about the procedures of the Rotterdam Convention (RC), and they need to identify the necessary interactions. In this sense, the obligations and actions required by the Party must be made clear; the usual practice and procedures adopted for actions and obligations must be reviewed, as well as the actions implemented for the different responsible persons to interact with one another; and the faults and proposals of solutions must be identified, establishing operational flowcharts.

The Convention articles that involve procedures that are more directly related to import and export are the Articles 10, 11, 12 and 13, which specify the obligations and actions required by the Parties.

Article 10 establishes the obligations relating to the import of chemicals listed on Annex III of the Convention. It imposes to the Parties the implementation of legal actions or administrative ones to decide about the import of such chemical products.

The Parties, when receiving the Decision Guidance Document, must convey to the Secretariat, within 9 months, an answer about the future imports of such chemical. When there is alteration of this answer, the new answer must be immediately forwarded to the Secretariat.

The Brazilian government has fully complied with the demand established on Article 10, forwarding to the Secretariat all the decisions of imports for the Annex III chemicals.

The Brazilian legislation which supported the answers of imports decision (form containing the decision for future imports of a certain substance of Annex III), forwarded to the Secretariat, are the following: Law No. 7.802/89 (pesticides), Law No. 4.797/65 (wood preservatives), Law No. 9.055/95 (asbestos). Other rules are the Resolutions of the Brazilian National Council for the Environment (CONAMA), Resolutions of the Brazilian Sanitary Surveillance Agency (ANVISA) and Administrative Rules of the Ministry of Agriculture, Livestock and Food Supply (MAPA).

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The consultations for elaboration of import decision answer to a determined substance are coordinated by the Ministry of the Environment (Designated National Authority - DNA), in a process of continuous consultation with such other agencies of administration (Ministry of Agriculture, Livestock and Food Supply, Ministry of Health, Ministry of External Relations, Ministry of Work and Labor, Ministry of Development, Industry and Trade, Ministry of Mines and Energy, among others).

The actions performed for forwarding of answer to the Secretariat consist of getting the available information about a specific substance, such as ecotoxicological and human health data, which are collected from the agencies responsible for this evaluation; verification of legislation in force that deals with this substance; and research about the different uses of the substance in the country.

The national decisions of import shall be notified to the authorities responsible for the control of imports, such as the customs officers and the importers and producers of the substance, as established in the Convention.

However, there is no formal procedure defined, up to now, for the communication of import decision answers by the Brazilian government forwarded to the Secretariat, next to the interested parties in the country, including proceedings about the responsible agency by the foreign trade system. Nevertheless, some of such substances are already controlled by the registering agency according to the legislation by SISCOMEX. It is undergoing, by means of meeting with the registration and foreign trade agencies, elaboration of a document for formalization and inclusion, along with SISCOMEX, of prohibitions, permissions with restriction or permission (provisional decision) adopted by Brazil, referring to the substances included in Annex III of Rotterdam Convention.

Thus, the forbidden substances would be automatically rejected by SISCOMEX, preventing its import, and the substances with restriction would be controlled by the imports consent from DNA.

Other obligation provided on Article 10 of the Convention is that the Party should ensure the national decision of imports to be equally applied to national production for the domestic use and import of any other source, implying actions at the regulatory and Brazilian control areas, about the production and domestic use.

The Brazilian legislation referring to pesticide and wood preservative products requires the registration prior to production, use, import and export. Thus, the pure substances or formulas prohibited in Brazil and included in Annex III have no permit for its import and use, and the ones having registration are controlled by the responsible agencies, by means of import consent, in this case, Ministry of Agriculture, Livestock and Food Supply, Ministry of Health or IBAMA (consenting agencies), by SISCOMEX. These legislations legally support the control and monitoring of the domestic production, use and import of Annex III substances, classified as pesticides or wood preservatives, ensuring the commercial neutrality established by the Rotterdam Convention.

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About the substances of industrial use, there is the legislation for some specific products, not having general ruling for the registration prior to production, use, import and export, as already pointed out to exist in case of pesticides and wood preservatives.

DNA receives from the Secretariat, each six months, by PIC circular letter, all the answers of import from such other Parties of the Convention, for the Annex III substances, making them available to all the interested parties in the country. This procedure established by the Convention aims at ensuring the ones involved with export and control of exports to have the information necessary in order to guarantee the exports are not performed in non-compliance with the decisions from the importer Party.

In order to communicate the answers about imports from all the Parties – received by PIC circular letter, to the interested parties in the country to export, or for the persons responsible for the control of export, a procedure is being studied, having as basis procedures already implemented in the country for other international conventions, as for example the Basel Convention, the International Convention about the Trade of Endangered Wild Fauna and Flora Species (CITES) and the Montreal Protocol. CITES uses the issue of license by IBAMA, previously granting the consent of exports with validity of one year and pre-established quantity; the Montreal Protocol, which controls the substances depleting the Ozone layer, by means of import quotas by SISCOMEX; and the Basel Convention, that deals with transfrontier shipments of hazardous waste and its deposit, also operates SISCOMEX for the control of these products imported by Brazil. About the exports, the Basel Convention uses the export notification device among the designated national authorities, not using the export control system.

There is also the proposal of disclosure each six months for the interested parties, of import answers from the Rotterdam Convention Parties, by means of communication between DNA and the representatives of the private sector, or even availability at the Website of MMA (DNA).

In accordance to the Article 11, the exporting Party shall establish legislative devices and / or administrative ones that ensure the exporters do not export substances for the importing Parties against their import decisions. The deadline for this communication is at most six months after the Secretariat informs the Parties about the import decisions by PIC circular letter.

The current system of the Brazilian Government to control and monitor the imports of substances from Annex III is the SISCOMEX. Next to SISCOMEX, the control of export of substances from Annex III of the Rotterdam Convention is under progress.

The actions proposed for the solution of this gap are: identification of exporters of Annex III products; verification of the feasibility that, for such products, the SISCOMEX system itself, in the event of prohibition (product versus importer country), may cross the information, automatically blocking the export; and promotion of action of information to exporter about the legislation of the importing country.

When a Party fails to send an import answer to the Secretariat, or to send a provisional answer that do not guide future imports – Annex IV of PIC circular letter, the

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exporting Party must ensure the export do not occur, except if: the substance is registered as a chemical at the importer Party; the substance has been proved as used or imported by the importer Party and in relation to which no regulatory action to forbid its use has been adopted; the exporter had requested and obtained an express consent about the import from DNA of importing Party.

It is not implemented yet the proceeding of notification for control of export applied to cases when the Parties did not submit a definite decision or have submitted a provisional decision that do not include import temporary decision, in case of Annex III substances.

The actions proposed in the Seminar were the following for effective compliance to the export notification, in the event of fault or provisional decision: to improve the information mechanism, for the exporter, of import answers from the countries; to make known to exporter their responsibilities in the process of export of a product from Annex III and to promote the previous approval for export issued by DNA; to seek verification, by exporters, of existing registration at the importer country; and to present reliable documentation at the moment of export request. In case of products without registration in the importing country, the Brazilian DNA shall consult with DNA of the importing country.

As of the Article 12, in the event of export of a substance that has been banished or severely restricted by the exporting party, an export notification shall be sent to the importing Parties, ensuring the information about the substance is in accordance with the Annex V of the Convention. This proceeding is applied to the substances that are not present on Annex III.

The export notifications for banished or severely restricted substances were not implemented yet by the Brazilian Government. There is no defined form for notification as of yet. At the moment, a proposal of form is being created.

The export notification proceeding used by the Basel Convention is already implemented in Brazil, it is under analysis, and it may be used as model for the Rotterdam Convention for the banished or severely restricted substances that are not included in Annex III.

A database of banished or severely restricted substances that are not present on Annex III and are exported by Brazil is also being created. The information obtained aim at guide the procedures for continuous communication between DNA and the sectors of export control, manufacturers, formulators and exporters of such substances in the country.

Thus, the following actions for full compliance with the Article 12 are proposed: to identify the products that are forbidden or duly restricted in Brazil, and which are exported; to establish a proceeding for sending export notification between DNAs (Brazil and importing country); to create a standard export notification form; to communicate the products list to their specific NCM, with restriction of prohibition in Brazil to MDIC/SECEX, in order to obtain the exporter list of such products; and to inform the producers/exporters about the need of previous export notification and about the proceedings provided in the Convention (links, manuals, etc.).

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As the exporting Parties may need to send an export notification, the importing Parties shall point out the reception. Brazil has been pointing out the reception of the export notification, being the same performed by DNA (MMA). So far, Brazil has only received export notification from the Europe Union countries, as shown in the following table.

Year 2004 2005 2006 2007 (April)Confirmation of

reception of Export Notification

9 11 17 8

Remitting countries: Europe Union countriesMain products: Nonylphenol ethoxylated, Carbon Tetrachloride, Endosulfan, Permethrin (diverse concentrations).

According to the provisions from Article 13, the World Customs Organization (WCO) has designed specific codes for substances or groups of substances listed in Annex III. These codes got in force internationally as of January 1st, 2007.

As of January 2007, the new version of the Mercosul Common Nomenclature (NCM) got to be in force in Brazil, adapted to the IV Amendment of the Standardized System of Goods Designation and Codification, approved by the Customs Cooperation Council (SH-2007). Therefore, as of January 1st, Brazil already adopted the new version of SH.

Still according to the Article 13, for Annex III substances export, as well as those substances severely restricted or banished in the country, the Parties are obliged to ensure the products have labeling with the adequate information about the dangers and risks offered by the substance to human health and to the environment, as well as to forward an updated security data card, internationally acknowledged, to each importer.

Concerning labeling, in case of wood preservatives and pesticides, Brazil have legislation requiring registration before the production, import and export. At the time of registration, obligatory information about the potential dangers to environment and human health are established. They should be included in the label and instructions of the product. In case of export, the labeling is obliged to be in compliance to the requirements of importing country, as of the legislation in force that determine the compliance with agreements of which Brazil is signatory (Article 17, Decree 4,074/2002).

For products of industrial use, procedures as the obligatory safety card are adopted in accordance with the specific regulations, as the ones relating to transportation of hazardous cargos. The Chemicals Safety Information Card is one way of providing objective and accurate information to receiver/user, about the ingredients of a product, the risks of manipulation, transportation and storage, besides measures of first aid in the event of accidents. The Chemicals Safety Information Card (FISPQ – NBR 14725) complies with the international regulations, in some countries referred to as Material Safety Data Sheet – MSDS – recently regulated by the Brazilian Association of Technical Standards (ABNT, in Portuguese abbreviation).

18

ANNEXES

Annex I – Chemicals subject to the Prior Informed Consent Procedure (Annex III of Rotterdam Convention).

Chemical Number(s) CAS Category Country Situation (PIC XXIV Circular)

Legislation

2,4,5-T 93-76-5 Pesticide Forbidden Law 7.082/89Aldrin 309-00-2 Pesticide Forbidden Law 7802/89

Binapacryl 485-31-4 Pesticide Forbidden Law 7.082/89Captafol 2425-06-1 Pesticide Forbidden Law 7.082/89

Chlordane 57-74-9 Pesticide Forbidden Law 7.082/89Chlordimeform 6164-98-3 Pesticide Forbidden Law 7.082/89Chlorobenzilate 510-15-6 Pesticide Forbidden Law 7.082/89

DDT 50-29-3 Pesticide Forbidden Law 7.082/89Dieldrin 60-57-1 Pesticide Forbidden Law 7.082/89

Dinitro-ortho-cresol (DNOC) and its salts (such as ammonium salt,

potassium salt and sodium salt)

534-52-1Pesticide Forbidden

Law 7.082/89

Dinoseb and its salts 88-85-7 Pesticide Forbidden Law 7.082/89

1,2-dibromoethane (EDB) 106-93-4 Pesticide Forbidden Law 7.082/89

Ethylene dichloride 107-06-2 Pesticide Forbidden Law 7.082/89Ethylene oxide 75-21-8 Pesticide Forbidden Law 7.082/89

Fluoroacetamide 640-19-7 Pesticide Forbidden Law 7.082/89HCH (mixed isomers) 608-73-1 Pesticide Forbidden Law 7.082/89

Heptachlor 76-44-8 Pesticide Forbidden Law 7.082/89Hexachlorobenzene 118-74-1 Pesticide Forbidden Law 7.082/89

Lindane 58-89-9 Wood preservative Restrictly allowed Law 4.797/65

Mercury compounds, including inorganic mercury compounds, alkyl

mercury compounds and alkyloxyalkyl and aryl mercury

compounds

99-99-9 Pesticide Forbidden Law 7.082/89

Monocrotophos 6923-22-4 Pesticide Restrictly allowed Law 7.082/89Parathion 56-38-2 Pesticide Forbidden Law 7.082/89

Pentachlorophenol and its salts and esters 87-86-5 Wood preservative Restrictly allowed Law 4.797/65

Toxaphene 8001-35-2 Pesticide Forbidden Law 7.082/89Dustable powder formulations containing a combination of:

Benomyl at or above 7%,Carbofuran at or above 10%, and

Thiram at or above 15%)

17804-35-21563-66-2137-26-8

Severely hazardous pesticide formulation Forbidden Law 7.082/89

Methamidophos (soluble liquid formulations of the substance that exceed 600 g active ingredient/1)

10265-92-6Severely hazardous

pesticide formulationRestrictly allowed Law 7.082/89

Phosphamidon (soluble liquid formulations of the substance that exceed 1000 g active ingredient/1)

13171-21-6(mixture, (E)&(Z)

isomers)23783-98-4 ((Z)- isomer)

297-99-4 ((E)- isomer)

Severely hazardous pesticide formulation

Forbidden Law 7.082/89

Methyl-parathion (emulsifiable concentrates containing 19,5%, 40%,

50%, 60% active ingredient and powders containing 1,5%, 2% and

3% active ingredient)

298-00-0Severely hazardous

pesticide formulationRestrictly allowed Law 7.082/89

3

Actinolite asbestos 77536-66-4 Industrial Forbidden Law 9055/95Amosite asbestos 12172-73-5 Industrial Forbidden Law 9055/95

Anthophyllite asbestos 77536-67-5 Industrial Forbidden Law 9055/95Crocidolite asbestos 12001-28-4 Industrial Forbidden Law 9055/95Tremolite asbestos 77536-68-3 Industrial Forbidden Law 9055/95

Polybrominated Biphenyls (PBB) 36355-01-8 (hexa-)27858-07-7 (octa-)13654-09-6 (deca-)

IndustrialAllowed

Interim decision _____

Polychlorinated Biphenyls (PCB) 1336-36-3 Industrial ForbiddenCONAMA Resolution 19/81

Polychlorinated Terphenyls (PCT) 61788-33-8 Industrial AllowedInterim decision

_____

Tetraethyl lead 78-00-2 Industrial AllowedInterim decision

CONAMA Resolution 18/86

Tetramethyl lead 75-74-1 Industrial AllowedInterim decision

_____

Tris phosphate (2,3- dibromopropyl) 126-72-7 Industrial Allowed ______

4

Annex II – Schedule of activities

Annex III – Basel Convention – Procedures for importing and exporting residues

STEP I STEP II STEP III

STEP I – Company Inclusion and Regularization in the Federal Technical Registration – CTFThe company shall be duly registered in CTF at the IBAMA website (www.ibama.gov.br/ctf) on a category related to the activity that it will do concerning the residues to be imported. Also, it shall have paid the Environmental Inspection and Control Fee (“TCFA”) and bear an Operating License issued by the competent environmental body.Yearly the company shall send the activity report which is available in CTF regarding the following: the imported quantities; the residues that are created in the process; emissions; effluents; the inputs that are used in the production process; and, the environmental license data of the producer company.Important: Complete the CTF until the Registration Certificate is issued on screen. The registration certificate is a document that the system creates when completing the registration.Under the Law no. 6.938/91, Art. 17, Paragraphs I and II, the registration is mandatory for all individuals or legal entities that are dedicated to the potential polluting activity and/or extraction, production, transport and commercialization of products that are potentially hazardous to environment.

STEP II – Filling in and sending documents In accordance with Article 6 for the Annex of Decree 875/93, the export State shall notify or require that the creator or exporter provide a notification in writing about any transboundary movement of hazardous residues or other proposed residues through the regulatory body of export State. For this purpose, the standard Convention notification form is used.The Notification Form can be found at the address www.basel.int/pub/notif.PDF; the Movement Form, at www.basel.int/pub/move.PDF; and, the instructions for filling in both forms, at www.basel.int/pub/instruct.html.

6

Company’s Inclusion in the Federal Technical Registration (“CTF”) To request

the Residue LI approval by e-mail

To fill in and send the following documents:

Notification Form filled in with the cargo information

Analytical Report with the residue characteristics and

Environmental License copy of the residue producer

Pursuant to Article 5 for CONAMA Resolution 23/96, a Residue Lab Analytical Report containing the test results of Gross Mass, Leaching and Solubilization is required to be sent according to the procedures that are provided for in NBR 10.005 (Procedure for obtaining a leached extract of solid residues), NBR 10.006 (Procedure for obtaining a solubilized extract of solid residues) and NBR 10.007 (Sampling of solid residues).The required parameters in all analyses are as follows:

LEACHINGInorganic Compounds Pesticides Other Organic Compounds- Arsenic;- Barium;- Cadmium;- Lead;- Total chromium;- Fluoride;- Mercury;- Silver;- Selenium.

- Aldrin + Dieldrin;- Chlordane (all isomers);- DDT (p,p´ DDT + p,p´ DDD + p,p´ DDE);- 2,4-D;- Endrin;- Heptachlor and its epoxides;- Lindane;- Methoxychlor;- Pentachlorophenol;- Toxaphene;- 2,4,5-T;- 2,4,5-TP.

- Benzene;- Benzo[a]pyrene;- Vinyl chloride;- Chlorobenzene;- Chloroform;- Total cresol;- o-Cresol;- m-Cresol;- p-Cresol;- 1,4-Dichlorobenzene;- 1,2-Dichloroethane;- 1,1-Dichloroethylene;- 2,4-Dinitrotoluene;- Hexachlorobenzene;- Hexachlorobutadiene;- Hexachloroethane;- Methyl ethyl ketone;- Nitrobenzene;- Pyridine;- Carbon tetrachloride;- Tetrachloroethylene;- Trichloroethylene;- 2,4,5-Trichlorophenol;- 2,4,6-Trichlorophenol.

SOLUBILIZATION- Aldrin and Dieldrin;- Aluminum;- Arsenic;- Barium;- Cadmium;- Lead;- Cyanide;- Chlordane (all isomers);- Chloride;- Copper;- Total chromium.

- 2,4-D;- DDT (all isomers);- Endrin;- Total phenols;- Iron;- Fluoride;- Heptachlor and its epoxide;- Hexachlorobenzene;- Lindane (y-BHC);- Manganese;- Mercury.

- Methoxychlor;- Nitrate (expressed in N);- Silver;- Selenium;- Sodium;- Sulfate (expressed in SO4);- Surfactants;- Toxaphene;- 2,4,5-T;- 2,4,5-TP;- Zinc.

The documents shall be sent to email residuos.sede@ibama.gov.br or by mail to Diretoria de Qualidade Ambiental / DIQUA - Edifício Sede do IBAMA, Bloco C, – 1º Andar, SCEN – Trecho 1 - Asa Norte, Cep: 70.818-900, Brasília – DF.After having its documents analyzed, the company is emailed about the import approval or refusal.

STEP III – Requesting the Residue LI Approval

7

After complying with the Step I and II requirements and the IBAMA’s authorization, the company shall send the Import License (“LI”) number and request the approval by email residuos.sede@ibama.gov.br.

8

Annex IV – Program of Lectures

MONDAY, May 21, 2007.8:30 a.m. – 9:00 a.m. Registration of the participants

1st Session: Opening – President 9:00 a.m. – 9:45 a.m. Opening Remarks

Host government, MMA-SQA; FAO representative; Convention Secretariat

9:45 a.m. – 10:00 a.m. Participants and Secretariat Introduction Meeting organization and agenda overview, A.Hruska, FAO Structure/ Objectives and local arrangements

10:00 a.m. – 10: 30 a.m. Break2nd Session: Introduction to the Rotterdam Convention

10:30 a.m. – 11:00 a.m. Convention Overview, G. Wyrwal – Convention Secretariat Benefits; Obligations; Operating Procedures (summary)

11:00 a.m. – 11:30 a.m. Overview of the elements for implementing the Convention in Brazil, as defined in the Subregional Lecture of October 2005. MMA

11:30 a.m. – 12:00 p.m. Draft introductions for the eleven elements to coordinate and implement the Convention, DNA (Designated National Authority for the Rotterdam Convention in Brazil)

12:00 p.m. – 12.30 p.m. Discussions/questions and answers 12:30 p.m. – 2:00 p.m. Lunch

3rd Session: Article 10 – Obligations regarding the import for the chemicals of Annex III (1-3 elements of the draft working paper)

2:00 p.m. – 2:30 p.m. Import decisions:Introduction of the 1-3 elements about the process for the Import Decisions, communication and international trade neutrality; Main documents; Obligations of the parties; The requested national action regard. G. Wyrwal, Secretariat.

2:30 p.m. – 3:00 p.m. 1-3 Elements for the draft working paper: The current national process description for the Import Decisions, informing the decisions and assuring the conformity; DNA

3:00 p.m. – 3:15 p.m. Panel discussion – questions and answers; 3:15 p.m. – 3:30 p.m. Preparation for the 3 discussion groups – G. Wyrwal,

Secretariat3:30 p.m. – 3:45 p.m. Break3:45 p.m. – 5:30 p.m. Discussion groups – 1st round

To consider the obligations and the current national process for the Import Decisions; To review the national process description in the draft; To prepare the meeting report of the 1-3 elements;

9

TUESDAY, May 22, 2007.

9:00 a.m. – 9:30 a.m. Plenary Session, PresidentGroups that will individually introduce the draft review result;Plenary Session to consider the amendments and changes proposed for the 1-3 elements in the draft’s text. 4th Session: Article 11. Obligations regarding the export for the chemicals of Annex III (4-6 elements of the draft) President

9:30 a.m. – 10:00 a.m. Obligations regarding the export for the chemicals of Annex III: Introduction of the 4-6 elements; process for sharing the Import Decisions of other countries that are partners of the national exporters; conformity; failure cases in informing the response – G. Wyrwal, Secretariat

10:00 a.m. – 10:30 a.m. Introductions for the 4-6 elements of the draft: The current process description for disseminating the Import Decisions of other countries that are partners of national exporters, assuring conformity with the decisions on the exports and considering the failure cases; DNA

10:30 a.m. – 10:45 a.m. Panel discussion – questions and answers; G. Wyrwal, Secretariat

10:45 a.m. – 11:00 a.m. Break 11:00 a.m. – 12:30 p.m. Discussion groups – 2nd round

To consider the obligations and the current national process for exporting the chemicals of Annex III; To review the national process description in the draft; To prepare the meeting report of the 4-6 elements.

12:30 p.m. – 2:00 p.m. Lunch 2:00 p.m. – 2:30 p.m. Plenary Session, President

Groups that will individually introduce the draft review result;Plenary Session to consider the amendments and changes proposed for the 4-6 elements in the draft’s text. 5th Session: Article 12 Export Notification (7-8 Elements of the draft) President

2:30 p.m. – 3:00 p.m. Export Notification: Process introduction for issuing or acknowledging the export notifications; obligations of the parties, required information, listed chemicals, the requested national action regard. G. Wyrwal, Secretariat

3:00 p.m. – 3:30 p.m. Introductions for the 7-8 elements about the draft export notifications: The current national process description about the export notifications, involved authorities, continuance for notifications, assuring the conformity; DNA....

3:30 p.m. – 3:40 p.m. Panel discussion – questions and answers; 3:40 p.m. – 3:50 p.m. Preparation for discussion groups G. Wyrwal, Secretariat

10

3:50 p.m. – 4:00 p.m. Break 4:00 p.m. – 5:30 p.m. Discussion groups – 3rd round

To consider the obligations and the national process regarding the export notifications; To review the national process description in the draft;To prepare the meeting report of the 7-8 elements.

WEDNESDAY, May 23, 2007.

9:00 a.m. – 9:30 a.m. Plenary Session, PresidentGroups individually introduce the draft review result; Plenary Session to consider the amendments and changes proposed for the 1-3 elements of the draft. 6th Session: Information of Article 13 to follow the export for chemicals – President

9:30 a.m. – 10:00 a.m. Obligations regarding the information that must follow the exports for chemicals: Presentation of information to be given when exporting chemicals: the WCO Harmonized System Codes, the specific labeling requirements and safety data report requirements – G. Wyrwal, Secretariat

10:00 a.m. – 10:30 a.m. Introductions for the 9-11 elements of the draft: Current process description, WCO Harmonized System Codes use, suitable labeling arrangement and safety data report arrangement; DNA ....

10:30 a.m. – 10:45 a.m. Panel discussion – questions and answers;10:45 a.m. – 11:00 a.m. Break G. Wyrwal, Secretariat 11:00 a.m. – 12:30 p.m. Discussion groups – 4th round

To consider the obligations and the current national process to provide information that must follow the exported chemicals; To review the national process description in the draft; To prepare the meeting report of the 9-11 elements.

12:30 p.m. – 2:00 p.m. Lunch2:00 p.m. – 2:30 p.m. Plenary Session, President

Groups that will individually introduce the draft review result;Plenary Session to consider the amendments and changes proposed for the 9-11 elements in the draft’s text.

THUSRDAY, May 24, 2007.

7th Session: Consolidation and conclusions, President9:00 a.m. – 10:00 a.m. Plenary Session, President

Draft review result discussion; Clarification for responsibilities, information flow, priority interactions and actions;Amendments and changes proposed for the individual sections of the groups and all elements of the final text.

10:00 a.m. – 10:30 a.m. Break

11

10:30 a.m. – 12:00 p.m. Work group Completion for the final document based on the results of the groups and the President’s plenary session discussions President

12:00 p.m. – 1:30 p.m. Lunch1:30 p.m. – 3:15 p.m. Plenary Session, President

Draft review;Plenary Session to adopt the draft final version.

3:15 p.m. – 3:30 p.m. Closing Session, Host country, Secretariat, FAO Representative

12

Annex V – List of Participants

Body Name E-mail

MDIC/SECEX Victoria de Freitas Dias victoria.freitas@desenvolvimento.gov.br MDIC/SECEX Tânia Fittipaldi

Magalhães tania.magalhães@desenvolvimento.gov.br

MDIC/SECEX Gláucia Belém de Oliveira

glaucia.oliveira@desenvolvimento.gov.br

MDIC/SECEX Maurício Genza Maragni

mauricio.maragni@desenvolvimento.gov.br

MDIC/SECEX Raimundo Monte Farias raimundo.farias@desenvolvimento.gov.br MDIC/SDP Manoel Tenórico Costa manoel.costa@desenvolvimento.gov.brMDIC/SDP Rildo Costa Farias rildo.farias@desenvolvimento.gov.brMDIC/SECEX Marcelo Landau marcelo.landau@desenvolvimento.gov.brMDIC/SECEX Verônica Lima veronica.lima@desenvolvimento.gov.brMDIC/SECEX Elizabeth Leite Duque

Estradaelizabeth.estrada@desenvolvimento.gov.br

MDIC/SECEX Vera Cristina A. da Silva

vera.silva@desenvolvimento.gov.br

MDIC/SECEX Raquel Pinheiro Ferreira raquel.ferreira@desenvolvimento.gov.brMDIC/SECEX Vanessa G. de Carvalho decex-cgoc@desenvolvimento.gov.brMDIC/SECEX Hearle Viena Calvão hearle.calvão@desenvolvimento.gov.brIBAMA Francine Gonzaga

Serafimfrancine.serafim@ibama.gov.br

IBAMA Marisa Zerbetto marisa.zerbetto@ibama.gov.br IBAMA Zilda Maria F. Veloso zilda.veloso@ibama.gov.br IBAMA Alessandro Moreira alechem@brturbo.com.br IBAMA Julevânia Alves

Olegáriojuly.bio@ig.com.br

IBAMA Thiago Eduardo Bian Coni

thibalbo@yahoo.com.br

IBAMA João Bosco Costa Dias joao.dias@ibama.gov.br IBAMA Adriana Oliveira adriana.dantas@ibama.gov.br IBAMA Ana CarolinaDias anacarolinadiasoliveira@yahoo.com.br IBAMA João Paulo Sotono joaopaulosotono@gmail.com.br MMA Robinson A M. Oliveira robinson-antonio.oliveira@mma.gov.br MMA Alberto da Rocha neto alberto.rocha@mma.gov.brMMA Julio César Baena julio.baena@mma.gov.br MMA Marília Marreco

Cerqueiramarilia.cerqueira@mma.gov.br

MMA Sérgia de Souza Oliveira

sergia.oliveira@mma.gov.br

MMA Sonia Maria Sayão de Morais Filgueiras

smsayao@yahoo.com.br

MMA Maria Luiza Jungle maria.jungles@mma.gov.br

13

MMA Maria Teresa R. Sanches

maria-teresa.sanches@mma.gov.br

Internal Revenue Service

Álvaro A Vasconcelos Ribeiro

alvaro.ribeiro@receita.gov.br

Internal Revenue Service

Yara Gil Silva Novis yara.novis@receita.fazenda.gov.br

Internal Revenue Service

Marco Aurélio Mucci Mattos

marco.mattos@receita.fazenda.gov.br

MAPA Júlio Sergio de Britto jsbrito@agricultura.gov.br MAPA/VIGIAGRO

Oscar de A Rosa Filho oscar@agricultura.gov.br

SINDAG Fernando Henrique Marini

fernando@sindag.com.br

ANVISA Patrícia Moreira da Silva

patricia.msilva@anvisa.gov.br

ANVISA Albanita Maria Bezerra albanita.bezerra@anvisa.gov.br ANDEF Luiz Carlos Ribeiro lribeiro@andef.com.brAENDA Marivalda Feitosa marivalda.feitosa@afeis.com.br FAO Allan Hruska allan.hruska@fao.org FAO Gerold Wyrwal gerold.wyrwal@fao.org

14

Annex VI – Glossary

Economic Bloc – The countries are grouped per economic blocs, following the constitution of geoeconomic regions and international agreements. A country may take part of more than one economic bloc.

Drawback – It is applicable in the import related to an export commitment. The drawback operation comprises the import bearing an exemption or suspension of Import Tax among other taxes. The purpose of drawback mechanism is to provide the exporter with the possibility of purchasing the inputs (raw materials, parts, parts and components) incorporated or used for industrializing the exporting product on the basis of international prices and free of taxes.

Importer State – For statistical effects, the importer fiscal domicile State is defined as importer state.

Producer State – For export statistical divulgation effect, it is the State in which the agricultural products were cultivated, the minerals were extracted or the manufactured goods were produced on a total or partial basis. In this latter case, the producer state is the state in which the last stage of manufacturing process was completed so that the product adopts its final form (origin concept).

Export – It corresponds to the foreign outgoing goods without a foreseen return.

Import – It corresponds to the foreign incoming goods without a foreseen return.

Good – It corresponds to every product object of an export or import. For goods classification effect, Brazil started to use the Mercosur Common Nomenclature (NCM) from 1996 and the other countries of the bloc (Argentina, Paraguay and Uruguay) did the same, based on the Harmonized System of Goods Codification and Designation (SH).

Mercosur Common Nomenclature (NCM) – NCM is composed of eight digits, six of which is formed by the Harmonized System (chapter, position and sub-position) and the last two ones (item and sub-item) are created according to the definition established among the Mercosur countries. The goods classification in NCM is ruled by the General Rules for the Harmonized System Interpretation.

Country of destination (export) – For export statistical divulgation effect, the country of destination is the country known at the shipping moment as the last country to which the goods are destined.

Country of origin (import) – For import statistical divulgation effect, it is the country in which the agricultural products were cultivated, the minerals were extracted or the manufactured goods were produced on a total or partial basis. In this latter case, the country of origin is the country in which the last stage of production was completed so that the product adopts its final form (as a concept defined by the Kyoto convention).

15

Port – In export, it is the port or location where the effective good shipment will take place, that is, the last national territory qualified location from which the good will be shipped abroad. In import, it is the location where the effective good unshipment will take place, that is, the first national territory accredited location from which the foreign good will arrive.

Transport route – In export, it is the mode used for the goods transport from the last shipment location abroad. In import, it takes place through the goods access means to the first incoming national territory location. According to what was established in the scope of Mercosur countries, Brazil adopts the following transport modes: maritime transport, fluvial transport, lacustrine transport, air transport, postal transport, railway transport, highway transport, pipe transport, transmission line and own means.

16

Ago Mar

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9

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Annex II - Schedule of Activities

Procedures May Jun Jul Sep Oct Nov Dec Jan Feb RemarksTo draft a legal instrument (possibly a Decree), defining the import and export procedures for the products of Annex III and other products that are forbidden or severely restricted (until 10/2007);To inventory the legislation concerning the forbiddance and severe restriction of chemicals based on environment and health issues (until 09/2007);To translate into English the legislation inventoried concerning the chemicals (permanent action);To draft a Decree with the negative list of products (until 12/2007);To keep the list of chemicals of Annex III updated in DECEX with their respectives NCM and import responses (permanent action);The communication process can be expanded by creating a Web link (database) and divulging such link, preparing translated forms and manuals on the Convention procedures, etc;To keep a permanent communication with the bodies acting in the custom houses (RFB) - MAPA, MS/ANVISA, IBAMA (permanent action);To request the NVE (Statistical Value Nomenclature) inclusion for COANA/RFB on the products bearing a prior import consent due to the Rotterdam Convention (until 12/2007);

To provide a “SISCOMEX news” when any changes are made in the Rotterdam Convention (permanent action);To divulge the Convention's dispositions so that opposite legislations are not established (immediate action for the situation update and then permanent action);In the PIC convention, a similar procedure used in other Conventions may be adopted, thereby making the import decisions available in websites - both in the MDIC links regarding the guidelines for the exporters and DNA's website (until 12/2007);Legal instrument with the obligations of each process participant (consent parties, exporter, importer) (until 10/2007);To create a mailing list by DNA for sending the received communications (immediately);To identify the exporters for the products of Annex III (until 07/2007);To check if it is possible for the SISCOMEX system to cross the information for the products of Annex III in case of forbiddance (product X importer country), thereby automatically blocking the export (until 10/2007);To promote the information action for the exporter on the importer country legislation (immediately);To improve the information mechanisms for the exporter of countries' import responses (immediately);To inform the exporter of its responsibilities in the export process of a product for the Annex III (until 08/2007);Prior export consent issued by the Designated National Authority (DNA);To identify the products that are forbidden or rigorously restricted in Brazil and exported (until 09/2007);To establish a procedure for sending an export notification between the DNAs (Brazil and importer country);To inform the MDIC/SECEX of the list of products bearing their specific NCM that are restricted or forbidden in Brazil, aiming at getting the list of exporters for these products (until 10/2007);Information for the producers/exporters on the need for this prior export notification and the procedures provided for in the Convention (links, manuals, etc);These products must have a higher priority in the inspection. The relation of codes for the custom house control must be sent to the RFB, MAPA, ANVISA and IBAMA bodies (immediately);To promote the qualification for the custom house control agents (start until 12/2007 and then permanent action);To identify if the procedures for export labeling industrial products are meeting the Convention requirements of showing information on hazards/dangers for health and environment (immediately);Higher divulgation of safety information report (permanent action);