Flights under an exchange agreement may be subject to a federal consumption tax (FET). For information on this tax, members should access the NBAA web resource on IRS commercial transportation taxes for Part 91 flights. Aircraft, including piston aircraft, small carriers and all helicopters operated under the NBAA small aircraft waiver, may also use the reimbursement options authorized in Part 91, Part F, such as a replacement contract.B. For more information, visit the Small Aircraft Exemption Web Resource. An exchange contract allows existing federal agents in the service to be candidates for job promotion in a competitive service. Guidelines and reflections on joint leasing and management agreements with business aircraft, such as the exchange of .B. In addition, the Senate began discussing a new bill in mid-2016. The bill has not yet been passed. It aims to modernize the code and a whole part of the exchange agreements. The original text of this bill contained a legal definition of aircraft exchange, which is a transaction by which a trailer exchange contract renders the motor vehicle – the trucker that carries the trailer – responsible for any property damage to the trailer. Companies involved in trailer exchange contracts may require these trailers to purchase replacement insurance for trailers. In its current form, the bill would require the replacement of an aircraft in order to comply with the international treaties and conventions to which Brazil has adhered and the exchange agreement to comply with the laws of the country where an exchange aircraft is operated. Although the bill represents considerable progress in terms of clarity in the law applicable to trade agreements in Brazil, it is still being discussed by Congress and its provisions can be amended before a final text is adopted.
These regulations lack clarity on some points. For example, they need a registration from the Central Bank of Brazil, which is normally required for the transfer of foreign currency; However, the central bank`s rules do not always require such registrations. They are not required for agreements lasting less than 360 days.B. Therefore, if an exchange contract is less than 360 days, the airline may not meet this requirement. In addition, the central bank requires the registrant to indicate a certain amount of fixed payments. However, in the case of exchange agreements, the parties rarely know in advance how many times the exchange will use the aircraft. As a result, trade may not meet this requirement, even for exchange contracts lasting more than 360 days. However, the main problem with the 2013 regulations is that they do not specify whether an exchange agreement involving an aircraft registered in another jurisdiction can be exchanged to allow a Brazilian airline to operate it. This type of agreement is common when semi-trailers are used to transport goods over long distances. The bill also provides that foreign aircraft exchanged with Brazilian airlines will be subject to a technical inspection carried out by the ANAC, although they retain their original (foreign) registration signs. It also provides that an exchange agreement between a Brazilian airline must be registered as part of the RAB registration, even if the exchanged aircraft is a foreign aircraft. This provision will fill the void mentioned in the 2013 regulations.
Another important aspect of the trade agreements stems from the Cape Town Agreement.