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1.1.2.1.1. Foreign Capital Flows

Foreign capital is defined as currency, goods, machinery and equipment that a non-resident owns and introduces into Brazil pursuant to an equity contribution (whether in cash or in kind) or loan.  The fundamental legal basis for the movement to and from Brazil of foreign capital is Law no. 4131 of September 3, 1962, as amended.  This movement is further governed by administrative regulations set forth in resolutions laid down by the National Monetary Council and circulars issued by the Central Bank of Brazil ("Central Bank").