CUSTOMS CLEARANCE ON DONATED GOODS

In accordance with Brazilian Customs Regulations (Article 149, item III and 152 of Decree 91.030/1985), goods donated by international institutions, foundations or individuals to non-profit and legally operating Brazilian organizations, dedicated to public welfare, are exempted of the payment of customs duties.

For this purpose, the recipient of the donation in Brazil must be duly registered with the National Welfare Council of the Ministry of Welfare – “Conselho Nacional de Assist�ncia Social do Minist�rio da Previd�ncia e Assist�ncia Social” - Tel.: (61) 317-5356 - Fax: (61) 317-5737.

The donor institution is required to prepare three originals of a letter of donation, printed on the organization’s letterhead and have them legalized at the Consulate General of Brazil. The following letter can be referred to as an example:

- DONATION -

(PLACE AND DATE)

This letter certifies, for customs purposes in Brazil, that the shipment under Airway Bill No. ______________ (add all relevant information related to the shipment), consisting of ______________ (description of the goods and respective values; if necessary attach an inventory list), is a donation of _______________ (name of the donor institution).

This donation is supplied free of any payments, tax or charges. The freight has been paid ________________ (place and/or originating institution in charge) and there is no foreign exchange involved.

The shipment is consigned to: _______________ (name, address and C.G.C. of the consignee Brazilian organization).

(SIGNATURE) * Duly notarized with notary's raised seal and certified by the Secretary of State or County Clerk. If the Notary Public is registered with the Brazilian Consulate the certification mentioned above is not necessary. After this procedure the three letters must be legalized by the Consulate. The legalization for these documents are free of charge.

After been legalized by the Consulate, one of the three originals of the above letter will be filed at the Consulate; the second will be kept by the donor institution; and the third will be sent to the Brazilian organization. The recipient of the donation in Brazil will then add the referred letter and a copy of the “Airway Bill” or “Bill of Lading” to the documentation sent to the National Welfare Council. *A copy of the letter of donation should be attached to the “Airway Bill” or “Bill of Lading”.

Depending on the nature of the goods donated, the approval of another competent authority will be required (i.e. medical supplies will require the approval of the Ministry of Health; educational material will require the approval of the Ministry of Education).

THIS PROCEDURE IS NECESSARY IN ORDER FOR CUSTOMS DUTIES ON DONATED GOODS BE APPLIED.