AD_MAGAZINE_352

23 AutoData | February 2019 BRASILIA, JULY 2018 Temer signs the PM that creates ROTA 2030: later, the path of the program in the Congress of Brazil would be slow, tortuous and quite inventive. deadline of the Provisional Measure that gave origin to it. Thus, in practice, the country spent a whole year without counting on a specific policy for the automotive sector: since the end of Inovar Auto, on December 31, 2017, until the beginning of Rota 2030, which re- ally came into force only at the end of 2018. The president of Brazil made ten ve- toes to the text, but they all referred to pendants that were added to Rota 2030 during his turbulent passage through the Brazilian National Congress. The essence of the program negotiated before that was maintained. However, an important addition to the text made by the Chamber of Deputies, which extended the incentives and bene- fits’ deadline for manufacturers installed in the Brazilian Northeast region, remained still – there was only the veto to an item referring to the federal tax rebates on this issue. Therefore, the pressure of congres- smen of the region won, who demanded the fulfillment of the promise made by the former president in March 2018 during an event at the FCAplant in Goiana, PE, which was the incentive regime for the Northeast Region to be extended for more five years. Two more important points were chan- ged in the final text: the first refers to the IPI discount for flex-fuel hybrid vehicles, which increased by at least two percen- tage points envisaged in the Provisional Measure to at least three. With that, the tax discount table, which is progressive considering energy efficiency calculation versus weight, will have to be updated. Toyota was the one that celebrated, only two days later and certainly not coin- cidentally, with the presence of the former president in Brasilia, DF, to announce it will actually produce a flex hybrid vehicle in Brazil (see page 28). The second point concerns a difference in treatment for imported vehicles in terms of benefits for research and development programs: the Congress of Brazil wanted importers to be left out of it, but the law text makes clear that they will have “no Disclosure/MDIC less favorable” treatment than the Brazilian companies. The concern about that was evident: avoiding a newquestioning from theWTO. At a meeting held in Geneva, Switzerland, at the end of January, Brazil accepted the conviction for the imposition of 30 additio- nal IPI points on imports, a Inovar-Auto’s rule, and asked for a “reasonable time” for the incentives to be withdrawn. In the specific case of the automotive sector that has already occurred since January 1st, 2018, but the organization also considered as illegal practice four other Brazilian in- centive programs, involving other industrial sectors, and the verdict was collective. For Antônio Megale, president of Anfa- vea, “the government has taken measures to ensure that there is no misunderstan- ding regarding Rota 2030”. Although the text of the decree that regulates the program makes clear that Rota 2030 is a fifteen-year programdivided into three cycles of five, the law addresses only the next five years – and this is an unalterable issue as it is themaximum term for granting tax benefits under the Brazilian Constitution, just as it was in Inovar-Auto. In other words: although Rota is, in the- ory, a program for fifteen years, it can end or be totallymodified after its first five years. Anyway, Megale celebrated the result: “The core of Rota 2030, its essence, has become law”. By essence, it can be understood that the programs of energy efficiency impro- vement, vehicle labeling, schedule ofman- datory vehicle safety items, steering assist technologies, research and development and special tax regime for auto parts not produced in Brazil. Four companies were able to qualify for Rota 2030 still in December: Agrale, PSA Peugeot Citroën, Volkswagen and Voss, a component manufacturer. In 2019, no qualification was granted until the end of January - it is worth remembering that the MDIC, the Ministry of Development, Industry and Foreign Trade of Brazil, res- ponsible for granting the qualifications,