FUNDAP

Port Activities Development Fund – FUNDAP

FUNDAP is a financial incentive to support companies based in Espírito Santo and that carry out foreign trade operations taxed with ICMS in Espírito Santo. Industrial companies that use imported inputs may qualify for FUNDAP financing, creating a branch specialized in foreign trade. The basic condition for FUNDAP financing is the taxable event and the need for collection. The company can be a Ltd. or S / A.

Foreign trade companies may apply for registration, which will have an operational limit to operate in the system. For the definition of the limit, which is valid for 12 months with annual renewals requested 60 days in advance, the following alternatives are considered: Paid-in Capital, PL, Billing Forecast and Pawnbrokers’ Equity. The limit setting is carried out in accordance with current regulations.

Documents required for registration:

Payment of the Analysis Fee;

Letter of request for registration with the forecast of sales of imported goods for the period of 12 months;

Names of guarantors with proven equity and free of mortgage, by Deed registered in the Registry of General Property Registry (the values of the properties shown, as well as the measurements in meters);

Certificate of Discharge of Federal Taxes administered by the Federal Revenue Secretariat;

Certificate Negative as to the Active Debt of the Union;

Negative Certificate of Active Debt to the State Public Treasury;

Negative Certificate of Municipal Taxes;

Negative Debt Certificate with the INSS;

CRS – FGTS;

CNPJ;

Fiche FICAD of SERASA;

Social contract and changes in case of S / A (two copies of the AGO / AGE minutes must be presented);

Three last balance sheets with income statements duly signed by the company’s head and accountant, registered with the Commercial Registry of Espírito Santo State and with a copy of the Opening and Closing Statement (also two copies);

Balance sheet of at least three months prior to the date of application for registration at FUNDAP, with a statement of income, duly signed by the company’s official and by the accountant (for applications filed up to the first half of April of each year, only the Balance Sheet for the previous year);

Operating permit, issued by the city hall of the municipality.

Regarding the operationalization, it is worth mentioning: Financing The rate of 8.0% of the value of the exit of the merchandise of the importing establishment Deadlines 5 years grace period and amortization 20 years, totaling 25 years. Charges Interest of 1% (one percent) per year, without monetary restatement. Payments Annual installments. Warranties Bond of the partners of the financed company and / or of third parties and collateral of the securities representing the compulsory investment. This investment must be made by 9% (nine percent) of the amount of the financing to be invested in BANDES credit lines (FUNDAPSOCIAL or FUNDAP Project) until the end of the year following the release of the financing. The project is chosen by the company, but the project must be approved by BANDES, and the executing agency must be an S / A. Investment guarantee At the time of the release of the financing, the 9% destined to the investment, shall be applied in CDB issued by BANDES, which will be redeemed upon application in the project. Operability The interested company must register and register with BANDES at CECEL – Electronic Credit Cell, presenting the balance that will be analyzed by SERASA. Auctions The Treasury Department may, from time to time, auction off the credits related to these contracts. The minimum bid amount is set at 10% of the outstanding balance. For a better understanding of the operating system in FUNDAP, we present below a simulation.

SIMULATION A company with FUNDAP registration with billing in June 2009 (sales of imported products out of state), implying a 12% ICMS payment to the State Treasury. In July 2009, the company must pay the ICMS. And in the month of July 2009 apply for funding based on 8% on net sales (exits minus the entries). Approximately in August 2009 the company receives the amount of financing deducted of 9% that is retained by BANDES in the form of CDB to be applied in project until the end of the following year. The debit balance of the financing may be paid in auctions at the discretion of the Treasury Department. Also, in the event of not opting for the project application, you can transfer the deposit for application in FUNDAPSOCIAL. Net sales R $ 1,000,000.00 Collection of ICMS R $ 120,000.00 Funding FUNDAP R $ 80,000.00 Value for FUNDAP project R $ 7,200.00 applied in CDB Other Expenses Registration Fee of the Contract at the Registry Office = 1.24% of the contracted value + R $ 102.00, limited to R $ 1,962.00. FUNDAP Auction The minimum bid amount is 10% of the outstanding balance.

Source: State Development Bank of Espírito Santo – Bandes