In a recent decision, the 1st Panel of 3rd Chamber of 1st Judgment Section of the Federal Administrative Tax Court, contrarily to other recent decisions, recognized, by majority of votes, (i) the legality of the calculation methodology under method PRL 60% provided by Normative Ruling No. 243, of November 11, 2002 (NR IRS No. 243/2002”), and (ii) the application of method PRL 60% instead of PRL 20% to imported products packed in Brazil.


Reporting Member Carlos Augusto Andrade Jenier was defeated. Notwithstanding the arguments presented, the Panel decided that NR IRS No. 243/2002 is legal, since its methodology was reproduced by Law No. 12,715, of September 17, 2012, and that the IPI legislation concerning the definition of manufacturing activities provides that any “addition of value” to an imported product, such as its packing, is a manufacturing activity, so method PRL 60% applies.