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Brazil’s Aerospace Ecosystem

Brazil hosts a robust aerospace cluster anchored by Embraer’s regional jet and defense aircraft production in São José dos Campos. Supply chains extend across composites, avionics, and additive manufacturing, supported by technology parks and government R&D incentives. The Alcântara Space Center seeks commercial launches, while the Amazon basin spurs demand for ISR satellites. Investors benefit from offset programs, yet must navigate defense-sensitive technology controls, intricate tax regimes, and multilayer export regulations.

Regulatory Bodies and Legal Foundations

The National Civil Aviation Agency oversees civil aircraft certification, while the Ministry of Defense and Air Force Command regulate military platforms. The Brazilian Space Agency formulates orbital policy and licenses launch activities. Key statutes include the Aeronautical Code, Defense Industrial Base Law, Space Activities Decree, and Export Control Ordinance 93. A Brazilian aerospace lawyer mediates across ministries, ensuring seamless compliance.

Aircraft and Component Certification

Type certification follows ANAC RBAC 21, which is harmonized with FAA and EASA standards and demands conformity inspections, flight tests, and continued airworthiness programs. PMA suppliers obtain parts approval under RBAC 21 subpart L. Legal counsel structures technical-assistance agreements, IP licensing, and DER services while managing confidentiality aligned with Brazilian Industrial Property Law.

Offset and Industrial Cooperation

Defense procurements exceeding US$5M trigger offset obligations equaling at least 30 percent of contract value. Credits accrue via technology transfer, local sourcing, and R&D investments, approved by SEPROD. Contracts allocate proprietary data rights, export resale permissions, and milestone audits to secure full offset credit.

Space Launch Licensing and Satellite Regulation

Launch operators at Alcântara justify orbital safety analyses, range agreements, and environmental studies. Satellite operators follow General Telecommunications Law concessions overseen by Anatel, auctioning orbital slots coordinated at the ITU. Counsel negotiates frequency allocations, de-orbit plans, and ground-station leases.

Export Control and ITAR Compliance

Brazilian Ordinance 93 adopts a catch-all list similar to Wassenaar. Dual-use avionics, encryption, and military UAVs require MOFA licencing. When US-origin components exist, ITAR re-export approvals are mandatory. Attorneys design technology-control plans, visitor protocols, and encrypted file-transfer systems to prevent unauthorized releases.

R&D Incentives and Tax Benefits

The Lei do Bem grants a 60—to 80% super-dedication to aerospace R&D expenses. The SUDENE and SUDAM regions offer corporate tax reductions for plants in the Northeast and Amazon. Regimes like REIDI suspend PIS/COFINS on satellite ground infrastructure. Counsel optimizes incentive stacking while safeguarding compliance audit trails.

Intellectual Property and Technology Transfer

Joint-development and license agreements govern composite layup methods, flight-control algorithms, and satellite payload designs. Patent filings secure aero‑structural innovations, while trade-secret vaults protect manufacturing tolerances. Brazil’s Patent Law imposes local working requirements; lawyers craft contractual clauses enabling demonstrable exploitation to avoid compulsory licensing.

Liability in Product and Launch

Brazil’s Consumer Code imposes strict liability for defective aircraft parts sold to end-users, while the Space Liability Convention governs third-party damage from launches. Launch contracts allocate cross-waivers, indemnities, and insurance thresholds often exceeding US$ 500 M. Counsel synchronizes contract provisions with ANAC AD requirements and insurer endorsements.

Unmanned Aircraft Systems and Urban Air Mobility

RBAC-E 94 expanded to heavier-class drones, integrating detect-and-avoid—São Paulo’s drone-delivery corridors pilot and BVLOS operations. Lawyers secure experimental certificates, draft data privacy compliance, and negotiate municipal overflight rights.

Cybersecurity and Data Protection

Aerospace companies store sensitive export-controlled data and flight telemetry subject to LGPD. Zero-trust architectures, tokenization, and DLP solutions underpin compliance. Incident response plans integrate CERT.br reporting and contractual breach-notification clauses to OEMs and defense clients.

Government Procurement and Bidding

Federal Law 14,133 modernizes bidding rules, enabling EPCM contracts and competitive dialogue for space systems. Qualification demands fiscal clearance, ISO 9100 certification, and anti-corruption compliance programs. Tailored legal strategies frame proposals that maximize technical scores under Best-Value criteria.

Insurance and Risk Mitigation

Hull, satellite in-orbit, and launch policies sourced via Lloyd’s markets require Brazilian co‑insurance shares under SUSEP rules. Counsel reviews war-risk exclusions, consequential-loss carve-outs, and claim-adjustment procedures, aligning them with mandatory self-insured deductibles under government contracts.

Environmental and ESG Considerations

Composite scrap recycling, PFAS elimination in firefighting foams, and low‑NOx engine initiatives reflect ESG integration. Space debris mitigation aligns with UN guidelines. Lawyers draft sustainability-linked loan covenants linking interest margins to carbon-intensity metrics.

Mergers, Acquisitions, and Joint Ventures

When strategic technologies transfer, cross-border acquisitions require CADE antitrust approval and Defense Production Board vetting. Due diligence dissects export licenses, offset obligations, and classified contracts. Share-purchase agreements encode milestone earn‑outs tied to certification or launch success.

Dispute Resolution and Arbitration

Supply contracts favor ICC arbitration in São Paulo under Brazilian law; launch-service agreements may adopt LCIA or ICSID where sovereign operators participate. Emergency arbitration secures injunctive relief for IP breaches, while local courts enforce awards per the New York Convention.

Workforce and Labor Compliance

RBAC 183 certifies aviation mechanics; specialized aerospace engineers fall under CREAs. Collective bargaining agreements define shift differentials for clean‑room technicians, counsel structures stock‑option plans, and expatriate visas for high‑skill expatriates.

Future Horizons: Hypersonics and Constellations

Brazil explores hypersonic vehicle testing corridors and Ka‑band satellite constellations for Amazon connectivity. Stakeholders who align regulatory foresight, manufacturing agility, and sustainability commitments will pioneer the next aerospace frontier with steadfast legal guidance.

Frequently Asked Questions

Q: Can foreign investors control Brazilian aerospace firms?
A: Foreign capital may hold up to 100 percent, except in strategic defense areas requiring Defense approval.

Q: How long does satellite licence issuance take?
A: Typically, it takes nine to twelve months, including Anatel public consultation and ITU coordination.

Q: Is Alcântara open to commercial launches?
A: Yes, via concession agreements offering equatorial efficiency and tax incentives.

Q: Do offsets apply to space contracts?
A: Yes, defense-space hybrids trigger offset rules above US$5M thresholds.

Q: What taxes apply to imported aircraft parts?
A: Temporarily admitted parts enjoy suspension of import duties and ICMS when re-exported within 24 months.

Q: Are software algorithms patentable?
A: Algorithms per se are excluded, but applied technical solutions, such as flight‑control logic, may be patented.

Q: What is the liability cap for launch damage?
A: Brazilian law mirrors the Space Liability Convention's unlimited liability to third parties; contractual caps allocate risk among parties.

Q: Is ITAR compliance mandatory for Brazilian subsidiaries?
A: Yes, when handling US-origin defense items, even with local incorporation.

Q: Can drones carry cargo BVLOS nationwide?
A: BVLOS cargo flights require ANAC special authorization and DECEA airspace integration approvals.

Q: Are export licences needed for composite materials?
A: Certain high-modulus fibers fall under Wassenaar control lists requiring MOFA permits.

Q: How is IP ownership handled in offsets?
A: The government may require joint ownership or free licences; negotiation protects proprietary know‑how.

Q: Does CORSIA affect satellite operators?
A: No, CORSIA targets aviation emissions; satellite launch emissions are currently unregulated.

Q: Are space objects insured domestically?
A: Brazilian insurers must cover a quota share; reinsurance ceded abroad under SUSEP limits.

Q: What corporate tax incentives exist for R&D?
A: Super deduction under Lei do Bem plus immediate depreciation for capital R&D equipment.

Q: Can foreign courts govern supply contracts?
A: Yes, for commercial contracts, defense agreements require Brazilian law jurisdiction.

Q: How to register an aircraft mortgage?
A: Execute a notarized deed and file it at RAB to perfect priority over subsequent liens.

Q: Is satellite imagery subject to data privacy?
A: Yes, when it contains identifiable personal data or sensitive infrastructure per LGPD and defense ordinances.

Q: What labor quota applies to apprentice machinists?
A: Five to fifteen percent of the workforce per CLT apprenticeship rules for companies with over 100 employees.

Q: Are there grants for green aviation fuel R&D?
A: BNDES and FINEP provide low-interest loans and non‑reimbursable funds for SAF development.

Q: How to handle dual‑use software export?
A: Classify ECCN, secure MOFA licence, and implement user certification and end‑use monitoring.

For personalized guidance, send an email to: [email protected]

ALESSANDRO ALVES JACOB

Mr. Alessandro Jacob speaking about Brazilian Law on "International Bar Association" conference

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