52 



COMMERCIAL FISHERIES REVIEW 



Vol. 28. No. 11 



Ecuador (Contd.): 



ipal taxes for the importation of fishing equip- 

 ment on List I (essential imports). The decree 

 also reduces income taxes on all earnings 

 used to buy new, or improve existing, equip- 

 ment. The new legislation affects only the 

 "extractive" phase of the industry and grants 

 no special privileges to processing or mar- 

 keting operations. Equipment acquired under 

 the new law may not be sold or rented with- 

 out authorization of the Ministry of Indus- 

 tries and Commerce. (U. S. Embassy, Quito, 

 July 26, 1966.) 



Brazil 



DRAFTS REVISION OF 

 BASIC FISHERIES LAW 



President Castello Branco in late August 

 1966 forwarded to the Brazilian Congress 

 the draft of a basic fisheries law for action 

 within 60 days. Modifications must be ap- 

 proved by both the Chamber of Deputies and 

 the Senate within that period or it automati- 

 cally becomes law. It was drawn up by the 

 Superintendency for Development of Fisher- 

 ies (SUDEPE) in consultation with represen- 

 tatives of interested Government Ministries 

 (Agriculture, Navy, Industry and Commerce, 

 Planning and Finance) and technicians of the 

 Superintendency for Development of the 

 Northeast (SUDENE), and the Food and Agri- 

 culture Organization of the United Nations. 

 Because of this sponsorship, the bill is ex- 

 pected to prove less controversial than other 

 draft bills prepared by SUDEPE in recent 

 years. None of these reached the Congress. 



The proposed legislation revokes the ob- 

 solete 1938 Fishing Code and incorporates 

 many provisions of Decree No. 586 96, June 

 22, 1966. The decree classified fishing and 

 fish processing as a basic industry and pro- 

 vided incentives for developing commercial 

 fisheries operations. It is expected to re- 

 main in effect to complement the new law. 



There are provisions in the draft bill that 

 hold major interest to United States and oth- 

 er foreign investors. Some provisions stip- 

 ulate that foreign vessels may undertake 

 commercial fishing activities in Brazilian 

 waters when registered and authorized by 



SUDEPE and also specifically authorized by 

 executive decree. The bill establishes Brazil- 

 ian fisheries jurisdiction over inland and terri- 

 torial waters and the high seas and Continental 

 Shelf in accordance with international treaties 

 and conventions ratified by Brazil. It is ex- 

 pected that the Brazilian Government will 

 shortly ratify four Geneva Conventions: on 

 Fishing and Conservation, High Seas, Conti- 

 nental Shelf, and on Territorial Seas. 



Among other important modifications of 

 existing legislation: (a) duly authorized for- 

 eigners may engage in professional fishing, 

 but Brazilian nationals shall continue to pre- 

 dominate in crew composition; (b) the operation 

 of fishing vessels and processing industries 

 will be controlled to accelerate development; 

 (c) sets up a practicable system to protect 

 fisheries resources; (d) establishes incen- 

 tives for developing fisheries industry: ex- 

 emption for 5 years from publication date of 

 law from import, consumption, and other fed- 

 eral taxes on fishing boats, equipment, and 

 spare parts wher imported by firms with de- 

 velopment projects approved by SUDEPE. 

 The same benefits cover imports of machin- 

 ery and equipment to manufacture fishing nets 

 and similar products. Brazilian fishing firms 

 would be exempted from income tax for five 

 consecutive years on income reinvested in 

 development projects. Finally, investments 

 in the form of subscription to the capital of 

 fishing companies with approved projects 

 would also be exempt from income tax through 

 1971. (U. S, Embassy, Rio de Janiero, Sep- 

 tember 6, 1966.) 



CATFISH FOR SALE 



According to a reliable source, the Re- 

 gional Delegation of Superintendency for 

 Development of Fisheries (SUDEPE) in 

 Belem reports large supplies of catfish 

 available for export from that area. The 

 Regional Delegation understands that a num- 

 ber of United States firms are interested in 

 importing catfish and will be glad to put in- 

 quirers in touch with Belem exporters. The 

 species available are "Piramutaba" and 

 "Mapara." 



Inquiries to: Delegacia da Sudepe, Rua 

 Dr. Assis, 62, Belem, Para, Brazil. (U. S. 

 Embassy, Rio de Janeiro, September 8, 1966.) 



