Secretariat of Commerce and Services Ministry of Development, Industry and Foreign Trade 1 1 Meeting...

Secretariat of Commerce and Services

Ministry of Development,

Industry and Foreign Trade

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SISCOSERV AND NBS – THE SISCOSERV AND NBS – THE BRAZILIAN EFFORT IN BRAZILIAN EFFORT IN

MEASURING ITS FOREIGN MEASURING ITS FOREIGN TRADE IN SERVICESTRADE IN SERVICES

Meeting of the WPTGS, Paris, 16 – 18 November 2009




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BACKGROUND

• Service sector in Brazil has traditionally accounted for the great part of the country’s GDP. Today, it is also the greatest recipient of Foreign Direct Investment.

• Brazilian service exports in particular have been increasing in recent years at a faster rate than have the world’s total exports of services. Their growth has been limited by the low availability and soundness of current statistics in services trade.

• To address the demands for more relevant, detailed and internationally comparable statistics on services trade, the Brazilian Government (through the Ministry of Development, Industry and Trade) has advanced two main initiatives: the SISCOSERV and the NBS.




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SISCOSERVINTEGRATED SYSTEM OF FOREIGN TRADE IN SERVICES,

INTANGIBLES AND OTHER OPERATIONS THAT PRODUCE VARIATIONS IN THE CAPITAL OF THE ENTITIES




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Online measurement of Brazil’s foreign trade in services and the production of statistics relevant for the formulation and implementation of public policies.

Help the management of the support mechanisms (credit and financial incentives, tax relief, trade promotion, etc.) created at the Federal, State and Local levels to strengthen Brazilian services exports.

Support international negotiations on trade in services.

INTEGRATED SYSTEM OF FOREIGN TRADE IN SERVICES, INTANGIBLES AND OTHER OPERATIONS THAT PRODUCE VARIATIONS IN THE CAPITAL OF THE ENTITIES




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Action 1H20 of the “Pluriannual Plan” 2008-2011

Responsibility:

Ministry of Development, Industry and Foreign Trade (MDIC)

Coordination:

Secretariat of Commerce and Services (SCS) / Department of Commerce and Service Policies (DECOS)

ORIGINS OF THE SISCOSERV:




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SCS/MDIC RFB/MF BACEN

SISCOSERV COMMISSION

Trade Policy

Fiscal/Tax Policy

Exchange Policy

The Joint Act nº 170, of 8/20/2008, signed by the Minister of Development, Industry and Foreign Trade (MDIC), the President of the Central Bank (BACEN) and the Minister of Economy (MF), created the SISCOSERV Commission.




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Subgroup 1:

Legislation

(SCS / RFB / BACEN)

Subgroup 3:

Nomenclature

(SCS / RFB /BACEN / IBGE)

• Harmonization of Concepts

• Legal definitions

• Creation of registries

• Establishment of the SISCOSERV

Subgroup 2:

System Development

(SCS / RFB / SERPRO)

• Creation of the 9-digit classifier, based on the CPC, with a structure similar to the Mercosur Common Nomenclature (NCM)

TECHNICAL GROUP

• Development of the Sales and the Acquisition Modules of the SISCOSERV

• Homologation, Training and Production Phases

Act nº 01 (9/19/2008) of the SISCOSERV Commission created the Technical Group to assist the Commission, composed of three subgroups:




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• The System will be available online, where operations will be registered.

• Access by Digital Certificate and an Electronic Warrant.

• Classification of the operations: Brazilian Nomenclature of Services, Intangibles and Other Operations that Produce Variations in the Capital of the Entities (NBS).

• Only running or completed services will be registered.

• There will be no need for previous approval of the registry by the government.

BASIC CHARACTERISTICS OF THE SISCOSERV




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• The four GATS Modes will be easily identifiable.

• Tool functionality to assist users.

• News functionality related to operations carried out in SISCOSERV.

• Periodical and customized reports will be available to the federal, state and local agencies responsible for the mechanisms that support services exports.

• Possibility of communication with other electronic systems of the Brazilian Government in the future.

BASIC CHARACTERISTICS OF THE SISCOSERV




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STATISTICAL REPORTS

• The Reports will be a central feature of the system.

• Managers of the SISCOSERV (SCS and the Federal Revenue) will access, select, sort, filter, average, disperse, consolidate or refine the data.

• Crossings of information will be possible through periodical management reports, for instance: between each service in the NBS and the countries of destination; each GATS Mode and the service supplied; each government incentive and services supplied; etc.

• “N” by “n” combinations will also be possible.




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STATISTICAL REPORTS - PROTOTYPEEXAMPLE: NBS X COUNTRY X MONTH




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TECHNICAL MEETINGS:

• Technical meetings were held aimed at:

• Demonstrating the main functionalities of the SISCOSERV;

• Presenting additional information for the public and private sectors;

• Resolving possible inquiries concerning the system (since it will enter into operation in early 2010)

SISCOSERV – Technical MeetingsVenue Number of participants

Rio de Janeiro – 11/5/2009 47

São Paulo – 11/6/2009 96

Brasília – 11/10/2009 55

Total of participants 198




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SUPPORT MECHANISMS:

• The SISCOSERV will identify the public mechanisms that provide some type of incentive to services exports.

• A list of these mechanisms was developed in consultation with the agencies in charge of them.

• Mechanisms listed:

• Credit supplying, financing and guarantees;

• Trade promotion;

• Tax exemption;

• Federal, State and Local mechanisms.




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SISCOSERV - MODULES

• Will be registered in SISCOSERV information about transactions between residents or domiciled in Brazil and resident or domiciled abroad, involving services, intangibles and other operations that produce variations in the capital of the entities, including transactions of import and export services.

• The Test Phase of the Sales Module initiated in October 1st, 2009, and will finish in November 30, 2009.

SALES ACQUISITION




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SISCOSERV SUB-MODULES

• Commercial Sub-module

Will target the creation of more accurate statistics on services supplied under GATS Modes 1, 2 and 4 and will be administered by the SCS/MDIC.

• Commercial Presence Sub-module

Will target the creation of more accurate statistics on services supplied under GATS Mode 3 and ultimately on foreign affiliates trade in services (FATS).

• Revenue/Billing Sub-module

Will be administered by the Federal Revenue of Brazil and will integrate gathered data with the other information provided by the taxpayers, thus allowing for a better control over the taxes involved.




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Registry (RVS)

• Include

• Rectify

• Consult

Adding to the RVS

• Include

• Rectify

• Consult

COMMERCIAL SUB-MODULE:




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Data of the Purchaser

• Name, Address, Purchaser’s Country;

Data of the Business

• NBS Code, Country of Destination, Currency, Mode of Supply, Data of Beginning and Finishing, Amount, Support Mechanism;

Connection with export of goods;

Complimentary Information;

REGISTRY (RVS):




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Frames PrototypesFrames Prototypes




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Accessing the SystemAccessing the System


Accessing the SystemAccessing the System




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Including RegistryIncluding Registry


Commercial Sub-moduleCommercial Sub-module




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Including Data on Including Data on Commercial Presence Commercial Presence


Commercial Presence Sub-moduleCommercial Presence Sub-module




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NBS:BRAZILIAN NOMENCLATURE OF SERVICES, INTANGIBLES AND OTHER OPERATIONS THAT

PRODUCE VARIATIONS IN THE CAPITAL OF THE ENTITIES




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The NBS is a 9-digit classification system that will identify the services, intangibles and other operations that produce variations in the capital of the entities

Examples:

1 ) SERVICES: engineering services; web management services; photographic services.

2) INTANGIBLES: licensing of patents and trademarks.

3) OTHER OPERATIONS THAT PRODUCE VARIATIONS IN THE CAPITAL OF THE ENTITIES: food and beverage supplies; financial leasing; franchising.

NBS




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NBS• The NBS will provide a straightforward, technical mechanism for the

classification of services (taken in their broader definition), with an easy and familiar structure.

• The NBS (as well as its explanatory notes, the NEBS) will be ordered by an Act of the Executive Branch at the Federal level.

• It will have a neutral nature with respect to the:

• Tax laws;

• Economic laws;

• Other regulating norms of the Public Administration.




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NBS• Will allow for the creation of the Business and Revenue Registries of

the operations.

• Will also allow the consolidation of the data on service operations, which in turn will allow for more targeted public policies, the tax control of service operations and the negotiations of international trade agreements.

• It is possible that over time the NBS will be used (as has the NCM) in a subsidiary manner by the Federal, State and Local governments.




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NBS• The NBS was developed jointly by the following agencies:

• The GT-3 of the SISCOSERV (MF, RFB, MDIC, SCS, BCB and IBGE);

• 55 consulted government agencies;

• Local governments with relevant services exports;

• Public consultations.

• The United Nations Central Product Classification, Draft Version 2.0 (CPC 2.0), served as a starting point and the basis of the NBS. Not all the of the CPC was used though, only its sections related to the provision of services.

• The focus of the NBS, however, is not on the service economic activity but on the characteristics of the service provision.




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NBS Contents of the NBS:

• Summary

• Section and Chapter Notes

• Explain what may or may not be classified under them.

• These notes have legal effects.

• Rules

• Allow the definition of a given service by the NBS.




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NBS Structure of the NBS:

• I. 6 Sections

• II. 27 Chapters

Codifying (similar to the NCM):

Note: The digit “1” was added in all NBS codes.

NBS NEBS




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Sections I to III

Chapter 04 - Passanger transport services

Chapter 06 - Transport support services

Chapter 02 - Goods distribution services

Chapter 10 - Real state services

Chapter 07 - Courier and mail servicesChapter 08 - Electricity, gas and water supply

Chapter 09 - Financial and related services

SECTION III - FINANCIAL AND RELATED SERVICES; REAL STATE SERVICES AND LEASING

SECTION I - CONSTRUCTION SERVICES

Chapter 01 - Construçtion Services

SECTION II - DISTRIBUTION SERVICES; HOSPITALITY, FOOD SERVICE;

Chapter 05 - Freight services

TRANSPORT SERVICES AND PUBLIC UTILITY SERVICES

Chapter 03 - Food services and hospitality services

SUMMARY

NBS




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Sections IV to VI

Chapter 14 - Other professional servicesChapter 15 - Telecommunications, broadcasting and information supply services Chapter 16 - Business activities support services Chpater 17 - Agricultural, forestry, fishing, mining, electricity, gas and water servicesChapter 18 - Maintenance, repair and installation services (except construction)Chapter 19 - Publishing, printing and reproduction services

SECTION V - COMMUNITY, SOCIAL AND PERSONAL SERVICES

Capítulo 23 - Recreational, cultural and sporting services

SECTION VI - OTHER SERVICES OR RIGHTS NOT INCLUDED ON ANY OF THE PREVIOUS SECTIONS

SECTION IV - BUSINESS AND MANUFACTURING SERVICES

Capítulo 24 - Private services

Chpater 21 - Health and social servicesChapter 20 - Education services

Chapter 12 - Research and development servicesChapter 13 - Legal and accounting services

Chapter 22 - Sewage and refuse disposal, sanitation and other environmental protection services

NBS




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Ministry of Development, Industry and Foreign Trade (MDIC)

Secretariat of Commerce and Services (SCS)

JANE ALCANFOR DE PINHOGeneral Coordinator for Services

Telephone: (+ 55 61) 2027-7214

E-mail: [email protected]

SISCOSERV link: www.siscoserv.mdic.gov.br

THANK YOU VERY MUCH!

Secretariat of Commerce and Services Ministry of Development, Industry and Foreign Trade 1 1 Meeting...

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Transcript of Secretariat of Commerce and Services Ministry of Development, Industry and Foreign Trade 1 1 Meeting...