Introductory
Main objectives
Eligibility criteria
Temporary authorisations


Introductory

On 4 November 2022, the National Land Transport Agency (ANTT) published Resolution No. 5,999/2022, which provides the rules for the constitution and operation of an experimental regulatory environment (ie, a regulatory sandbox), in which participating legal entities may receive temporary authorisations to test new services, products or regulatory solutions in the land transport sector upon compliance with previously established criteria and limits.

Main objectives

The main objectives of the regulatory sandbox are to:

  • encourage innovation in the land transport sector;
  • encourage the development of regulatory services, products or solutions in a specific ANTT sector;
  • provide guidance for participants on regulatory issues during the development of activities to increase legal certainty;
  • decrease the costs and time involved in developing services, products or regulatory solutions in the land transport sector;
  • improve the current regulatory framework applicable to activities regulated by the ANTT; and
  • encourage competition between service providers in the land transport market.

The ANTT will define, in a public notice, which market segments will be submitted to the experimental regulatory environment and the respective rules to be removed, indicating:

  • a description of the experiment to be developed and the aspects that characterise it as a service, product or regulatory innovative solution;
  • the term of operation of the experimental regulatory environment, which cannot exceed 36 months;
  • the expected benefits from the experimental regulation;
  • the number of interested companies to be selected for the experimental regulatory environment;
  • exemptions from regulatory requirements and why they are necessary for the development of the activity subject to the temporary authorisation; and
  • the technical and economic-financial capacity criteria that interested companies must meet.

Eligibility criteria

Companies interested in accessing the sandbox must participate in the admission process, which the ANTT will publish.

The public notice will establish the eligibility criteria for participation in the sandbox. Participants must:

  • be a legal entity governed by private law and provide land transport services, through concession, authorisation or permission granted by the ANTT; and
  • demonstrate technical and economic-financial capacity, as defined in a public notice, sufficient to develop the activity intended by the ANTT in an experimental regulatory environment.

The company selected to participate in the sandbox must present, among other things:

  • an analysis of the main risks associated with its operation, including those related to the quality of services provided, ensuring high levels of satisfaction through the monitoring of indicators;
  • the object of the experiment;
  • the procedures necessary for entry into operation, containing an indicative operating schedule; and
  • a contingency plan for orderly discontinuation of the regulated activity for any reason.

Temporary authorisations

Temporary authorisations will be granted upon deliberation of the ANTT's collegiate board, and the following information must be included in the granting document for each participant:

  • the name of the company or entity;
  • the authorised activity and regulatory exceptions granted;
  • the conditions, limits and safeguards associated with the exercise of the authorised activity; and
  • the start and end date of the temporary authorisation and the effects arising from the termination of the temporary authorisation.

Temporary authorisations will be granted for a period of up to 24 months, renewable for up to 12 months.

Once temporary authorisations have been granted, the agency must monitor the progress of activities carried out by the participant within the scope of the experimental regulatory environment.

Participation in the experimental regulatory environment will end:

  • by the end of the period established in the authorisation;
  • at the request of the authorised participant;
  • as a result of cancellation or suspension of the temporary authorisation; or
  • upon obtaining authorisation from the ANTT to develop the respective activity as a result of the definitive regulation of the matter.

Finally, the resolution also provides that the ANTT will make efforts to develop regulatory cooperation and harmonisation mechanisms with regulatory bodies or entities from different jurisdictions and competences, when the innovative project deals with products, solutions and/or services related to different regulated markets of the land transport sector.

For further information on this topic please contact Juliana Pizzolato Furtado Senna or Paulo Fernandes at Kincaid | Mendes Vianna Advogados by telephone (+55 21 2276 6200) or email ([email protected] or [email protected]). The Kincaid | Mendes Vianna Advogados website can be accessed at www.kincaid.com.br.