Provisional Presidential Decree (MP) #612 of April 2013, which, among other things, provides for the restructuring of the legal model of organization of secondary-zone customs-bonded facilities, especially those named dry ports, is being considered by the Brazilian Congress.

Pursuant to the current system, dry ports are under permit and concession regime. This format, according to the Federal Government, does not create incentives for new investments in the sector, an extremely relevant aspect vis-à-vis the increase in the volumes of exports and imports. Thus, in order to expand the offer of dry ports in the country, the Brazilian President caused the referred MP to be published. The referred piece of legislation proposes that dry ports be granted by licensing, and any company meeting the requirements set forth by the Government may be granted an authorization to operate.

The MP is interfaced with the new regulatory landmark for Brazilian ports, once companies may be established near organized ports, offering customs-bonded facilities and thereby creating an unplanned competition for public terminals.

The referred MP is being analyzed by a Mixed Committee of the House of Deputies and the Senate and needs to be submitted to voting by August 15, 2013.