PRESENTACIN EMS

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SISCOSERV AND NBS THE BRAZILIAN EFFORT IN
MEASURING ITS FOREIGN TRADE IN SERVICES
Meeting of the WPTGS, Paris, 16 18 November 2009
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BACKGROUND

• Service sector in Brazil has traditionally
  accounted for the great part of the countrys
  GDP. Today, it is also the greatest recipient of
  Foreign Direct Investment.
• Brazilian service exports in particular have
  been increasing in recent years at a faster rate
  than have the worlds total exports of services.
  Their growth has been limited by the low
  availability and soundness of current statistics
  in services trade.
• To address the demands for more relevant,
  detailed and internationally comparable
  statistics on services trade, the Brazilian
  Government (through the Ministry of Development,
  Industry and Trade) has advanced two main
  initiatives the SISCOSERV and the NBS.

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SISCOSERV INTEGRATED SYSTEM OF FOREIGN TRADE IN
SERVICES, INTANGIBLES AND OTHER OPERATIONS THAT
PRODUCE VARIATIONS IN THE CAPITAL OF THE ENTITIES
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INTEGRATED SYSTEM OF FOREIGN TRADE IN SERVICES,
INTANGIBLES AND OTHER OPERATIONS THAT PRODUCE
VARIATIONS IN THE CAPITAL OF THE ENTITIES

• Online measurement of Brazils foreign trade in
  services and the production of statistics
  relevant for the formulation and implementation
  of public policies.
• Help the management of the support mechanisms
  (credit and financial incentives, tax relief,
  trade promotion, etc.) created at the Federal,
  State and Local levels to strengthen Brazilian
  services exports.
• Support international negotiations on trade in
  services.

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ORIGINS OF THE SISCOSERV

• Action 1H20 of the Pluriannual Plan 2008-2011
• Responsibility
• Ministry of Development, Industry and Foreign
  Trade (MDIC)
• Coordination
• Secretariat of Commerce and Services (SCS) /
  Department of Commerce and Service Policies
  (DECOS)

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SISCOSERV COMMISSION
SCS/MDIC
RFB/MF
BACEN
Trade Policy
Fiscal/Tax Policy
Exchange Policy
The Joint Act nº 170, of 8/20/2008, signed by the
Minister of Development, Industry and Foreign
Trade (MDIC), the President of the Central Bank
(BACEN) and the Minister of Economy (MF), created
the SISCOSERV Commission.
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TECHNICAL GROUP
Act nº 01 (9/19/2008) of the SISCOSERV Commission
created the Technical Group to assist the
Commission, composed of three subgroups

• Harmonization of Concepts
• Legal definitions
• Creation of registries
• Establishment of the SISCOSERV

Subgroup 1 Legislation (SCS / RFB / BACEN)
Subgroup 2 System Development (SCS / RFB /
SERPRO)

• Development of the Sales and the Acquisition
  Modules of the SISCOSERV
• Homologation, Training and Production Phases

Subgroup 3 Nomenclature (SCS / RFB /BACEN / IBGE)

• Creation of the 9-digit classifier, based on the
  CPC, with a structure similar to the Mercosur
  Common Nomenclature (NCM)

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BASIC CHARACTERISTICS OF THE SISCOSERV

• The System will be available online, where
  operations will be registered.
• Access by Digital Certificate and an Electronic
  Warrant.
• Classification of the operations Brazilian
  Nomenclature of Services, Intangibles and Other
  Operations that Produce Variations in the Capital
  of the Entities (NBS).
• Only running or completed services will be
  registered.
• There will be no need for previous approval of
  the registry by the government.

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BASIC CHARACTERISTICS OF THE SISCOSERV

• The four GATS Modes will be easily identifiable.
• Tool functionality to assist users.
• News functionality related to operations carried
  out in SISCOSERV.
• Periodical and customized reports will be
  available to the federal, state and local
  agencies responsible for the mechanisms that
  support services exports.
• Possibility of communication with other
  electronic systems of the Brazilian Government in
  the future.

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STATISTICAL REPORTS

• The Reports will be a central feature of the
  system.
• Managers of the SISCOSERV (SCS and the Federal
  Revenue) will access, select, sort, filter,
  average, disperse, consolidate or refine the
  data.
• Crossings of information will be possible through
  periodical management reports, for instance
  between each service in the NBS and the countries
  of destination each GATS Mode and the service
  supplied each government incentive and services
  supplied etc.
• N by n combinations will also be possible.

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STATISTICAL REPORTS - PROTOTYPE EXAMPLE NBS X
COUNTRY X MONTH
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TECHNICAL MEETINGS

• Technical meetings were held aimed at
• Demonstrating the main functionalities of the
  SISCOSERV
• Presenting additional information for the public
  and private sectors
• Resolving possible inquiries concerning the
  system (since it will enter into operation in
  early 2010)

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SUPPORT MECHANISMS

• The SISCOSERV will identify the public mechanisms
  that provide some type of incentive to services
  exports.
• A list of these mechanisms was developed in
  consultation with the agencies in charge of them.
• Mechanisms listed
• Credit supplying, financing and guarantees
• Trade promotion
• Tax exemption
• Federal, State and Local mechanisms.

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SISCOSERV - MODULES
SALES
ACQUISITION

• Will be registered in SISCOSERV information about
  transactions between residents or domiciled in
  Brazil and resident or domiciled abroad,
  involving services, intangibles and other
  operations that produce variations in the capital
  of the entities, including transactions of import
  and export services.
• The Test Phase of the Sales Module initiated in
  October 1st, 2009, and will finish in November
  30, 2009.

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SISCOSERV SUB-MODULES

• Commercial Sub-module
• Will target the creation of more
  accurate statistics on services supplied under
  GATS Modes 1, 2 and 4 and will be administered
  by the SCS/MDIC.
• Commercial Presence Sub-module
• Will target the creation of more accurate
  statistics on services supplied under GATS Mode 3
  and ultimately on foreign affiliates trade in
  services (FATS).
• Revenue/Billing Sub-module
• Will be administered by the Federal Revenue of
  Brazil and will integrate gathered data with the
  other information provided by the taxpayers, thus
  allowing for a better control over the taxes
  involved.

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COMMERCIAL SUB-MODULE

• Registry (RVS)
• Include
• Rectify
• Consult
• Adding to the RVS
• Include
• Rectify
• Consult

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REGISTRY (RVS)

• Data of the Purchaser
• Name, Address, Purchasers Country
• Data of the Business
• NBS Code, Country of Destination, Currency, Mode
  of Supply, Data of Beginning and Finishing,
  Amount, Support Mechanism
• Connection with export of goods
• Complimentary Information

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Frames Prototypes
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Accessing the System
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Accessing the System
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Accessing the System
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Including Registry
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Commercial Sub-module
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Including Data on Commercial Presence
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Commercial Presence Sub-module
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Commercial Presence Sub-module
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Commercial Presence Sub-module
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Commercial Presence Sub-module
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Commercial Presence Sub-module
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NBS BRAZILIAN NOMENCLATURE OF SERVICES,
INTANGIBLES AND OTHER OPERATIONS THAT PRODUCE
VARIATIONS IN THE CAPITAL OF THE ENTITIES
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NBS

• The NBS is a 9-digit classification system that
  will identify the services, intangibles and other
  operations that produce variations in the capital
  of the entities
• Examples1 ) SERVICES engineering services
  web management services photographic
  services.2) INTANGIBLES licensing of patents
  and trademarks.3) OTHER OPERATIONS THAT PRODUCE
  VARIATIONS IN THE CAPITAL OF THE ENTITIES food
  and beverage supplies financial leasing
  franchising.

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NBS

• The NBS will provide a straightforward, technical
  mechanism for the classification of services
  (taken in their broader definition), with an easy
  and familiar structure.
• The NBS (as well as its explanatory notes, the
  NEBS) will be ordered by an Act of the Executive
  Branch at the Federal level.
• It will have a neutral nature with respect to
  the
• Tax laws
• Economic laws
• Other regulating norms of the Public
  Administration.

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NBS

• Will allow for the creation of the Business and
  Revenue Registries of the operations.
• Will also allow the consolidation of the data on
  service operations, which in turn will allow for
  more targeted public policies, the tax control of
  service operations and the negotiations of
  international trade agreements.
• It is possible that over time the NBS will be
  used (as has the NCM) in a subsidiary manner by
  the Federal, State and Local governments.

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NBS

• The NBS was developed jointly by the following
  agencies
• The GT-3 of the SISCOSERV (MF, RFB, MDIC, SCS,
  BCB and IBGE)
• 55 consulted government agencies
• Local governments with relevant services exports
• Public consultations.
• The United Nations Central Product
  Classification, Draft Version 2.0 (CPC 2.0),
  served as a starting point and the basis of the
  NBS. Not all the of the CPC was used though, only
  its sections related to the provision of
  services.
• The focus of the NBS, however, is not on the
  service economic activity but on the
  characteristics of the service provision.

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NBS

• Contents of the NBS
• Summary
• Section and Chapter Notes
• Explain what may or may not be classified under
  them.
• These notes have legal effects.
• Rules
• Allow the definition of a given service by the
  NBS.

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NBS

• Structure of the NBS
• I. 6 Sections
• II. 27 Chapters
• Codifying (similar to the NCM)
• Note The digit 1 was added in all NBS codes.

NBS
NEBS
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NBS
Sections I to III
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NBS
Sections IV to VI
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THANK YOU VERY MUCH!
Ministry of Development, Industry and Foreign
Trade (MDIC) Secretariat of Commerce and Services
(SCS) JANE ALCANFOR DE PINHO General Coordinator
for Services Telephone ( 55 61)
2027-7214 E-mail cgse.decos_at_mdic.gov.br SISCOSERV
link www.siscoserv.mdic.gov.br
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