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Normative Instruction on the Economy allows installment payments, compensation and suspension of collection of fines arising from public tenders and administrative contracts

June 19, 2020

Put Beatriz Wehby – 18/06/2020

The Ministry of Economy, through the Special Secretariat for Debureaucratization, Management and Digital Government, published Normative Instruction No. 43/2020, which allows for the waiver, installment payment, compensation and suspension of the collection of administrative fines provided for in Laws No. 8,666/1993, No. 10,520/2002 and No. 12,462/2011, in public tenders and administrative contracts within the scope of the Federal Public Administration.

According to the Instruction, the hypotheses of installment payment, compensation and suspension of collection may be combined with each other, and States and Municipalities may also apply the new rules to administrative contracts that use Union resources resulting from voluntary transfers.

To pay the debt in installments, a formal request must be submitted, accompanied by proof that the amount corresponding to the debt (which you intend to pay in installments) divided by the number of installments has been paid to the Public Administration. The amount can be paid in up to 12 successive monthly installments. It is important to note that the public entity may deny the request or decide to pay fewer installments than intended.

Regarding the request for suspension, the Normative Instruction expressly mentions that this must be due to the economic impacts arising from the public health emergency, and that the suspension period may occur up to 60 days after the end of the state of public calamity.

The Public Law & Compliance team at Mazzucco & Mello Advogados has extensive experience in public-private contracts and administrative processes, and is available to provide any clarifications.

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