(May 28, 2014) On May 20, 2104, Brazil promulgated Law No. 12,977, which regulates the dismantling of motor vehicles in the country that are subject to the Brazilian Traffic Code (Lei No. 12.977, de 20 de Maio de 2014, art. 1, PLANALTO; Código de Trânsito Brasileiro (Sept. 23, 1997), PLANALTO). The new law was published in the country’s Official Gazette of May 21, 2014, and will enter into force one year after its publication (Lei No. 12.977, art. 20). (Dilma Sanciona Lei de Maior Controle sobre Desmanche de Veículos, GLOBO.COM (May 21, 2014).)
Law No. 12,977 defines dismantling as the activity of disassembling or destroying a vehicle, followed by the allocation of parts, or of a set of used parts, for replacement, scrap, or other final method of disposal (Lei No. 12.977, art. 2(I)). It defines a dismantling company as the individual entrepreneur or company that performs the activities covered by Law No. 12,977 (id. art. 2(II)).
Dismantling activities can only be performed by companies registered with the governing body of the transit authority of the state or the Federal District in which the company is located (id. art. 3). The operation and registration of dismantling activities are dependent upon meeting certain terms established in article 4 of the Law, e.g., that the company’s business is exclusively dedicated to the activities regulated by Law No. 12,977.
Law No. 12,977 creates a national database containing information on dismantled vehicles and on activities carried out by the dismantling individuals or companies, in which the parts or sets of parts used for replacement, scrap, or other final method of disposal must be recorded (id. art. 11).
Article 13 of Law No. 12,977 establishes the penalties for violations of the Law, which include fines ranging from R$2,000 (about US$909) to R$8,000 (about US$3,636). Articles 14 to 16 define what acts are considered to be violations of the Law.