Social Fuels Stamp
The Social Fuels Stamp is an identification component granted by the Agrarian Development Ministry to producers of biodiesel who promote social inclusion and regional development by creating jobs and income for family farmers who fall under the Pronaf (National Program for Family Farming Support) criteria.
By using the social fuels stamp, the biodiesel producer will qualify for PIS/Pasep (social integration program tax) and Cofins (social security funding tax) tax deductions with specific tax reduction coefficients, and for better financing from the National Economic and Social Development Bank – BNDES and its Accredited Financial Institutions, from the Banco da Amazônia (Bank of the Amazon) S/A – BASA, from the Banco do Nordeste do Brasil (Bank of Northeastern Brazil) - BNB, from the Banco do Brasil (Bank of Brazil) S/A, in addition to other financial institutions which have special financing terms for projects with the Social Fuels Stamp. Biodiesel producers will also be able to use the stamp in marketing initiatives to promote their company.
The stamp is only given to biodiesel producers who:
- Buy a minimal percentage of raw materials from family farms as follows:
- 50% from the Northeast and Semi-arid region,
- 10% from the North and Central West region, and
- 30% from the Southeast and South region
- Sign contracts with family farmers, which stipulate at least:
- Term of contract
- Amount of purchase and criteria for readjustment of the contracted price
- The conditions for delivery of raw material
- Safeguards for each party
- Identification of and agreement to representation of the farmers who took part in negotiations
- Assure assistance and technical training for family farmers
By using the social fuels stamp, the biodiesel producer will qualify for PIS/Pasep (social integration program tax) and Cofins (social security funding tax) tax deductions with specific tax reduction coefficients, and for better financing from the National Economic and Social Development Bank – BNDES and its Accredited Financial Institutions, from the Banco da Amazônia (Bank of the Amazon) S/A – BASA, from the Banco do Nordeste do Brasil (Bank of Northeastern Brazil) - BNB, from the Banco do Brasil (Bank of Brazil) S/A, in addition to other financial institutions which have special financing terms for projects with the Social Fuels Stamp. Biodiesel producers will also be able to use the stamp in marketing initiatives to promote their company.
The stamp is only given to biodiesel producers who:
- Buy a minimal percentage of raw materials from family farms as follows:
- 50% from the Northeast and Semi-arid region,
- 10% from the North and Central West region, and
- 30% from the Southeast and South region
- Sign contracts with family farmers, which stipulate at least:
- Term of contract
- Amount of purchase and criteria for readjustment of the contracted price
- The conditions for delivery of raw material
- Safeguards for each party
- Identification of and agreement to representation of the farmers who took part in negotiations
- Assure assistance and technical training for family farmers