FORTALEZA’S PORT REGULATION

Updated on August 7th, 2000

I - OBJECTIVE

The present regulation, elaborated from Law No. 8.630, on the 25th of February of 1993, establishes the basic and disciplinary means of Fortaleza’s Organized Port activities, pertinent to the functioning, services, use of facilities and infrastructure, as well as harmonious and integrated relations between the Port’s Administration, port authorities, port operators, users and workers. II - DEFINITIONS

2.1 – Organized Port: built and equipped to meet the necessities of navigation and

movement and storage of goods, granted or explored by the Confederation, whose business and port operations are under the jurisdiction of a Port Authority.

2.2 – Port Operation: movement and storage of goods destined to or originating

from water transportation, at the port and organized by port operators. 2.3 – Port Operator: the pre-qualified legal entity which carries-out port

operations within the area of the organized port. 2.4 – Port User: port operator, armador, transporter, owner of goods or any and

all persons who use the port’s facilities or services offered at the organized port, in order to service ships, transportation vehicles or for moving and/or storing goods within the port.

2.5 – Organized Port Area: comprised by port facilities, any of the following:

anchoring places , docks, piers, overpasses and wharfs, grounds, warehouses, buildings and internal circulation routes, as well as by the infrastructure of access and protection and water access to the port such as guias correntes, break waters, jetties, entrance canals, evolution basins and anchorage areas which shall be maintained by the Port’s Administration, named the Port Authority, and/or by the facility’s lessee.

2.6 – Port Facilities for Public Use: explored directly by the Confederation or by

the organized port’s utility, used in the moving and/or storing of goods, destined to or originating from water transportation.Can also be explored by the port’s facilities lessee of the organized port. This exploration is restricted to the organized port area.

2.7 – Fortaleza’s Organized Port Administration: is the Port Authority, in

reference to article 3o of Law 8.630, of the 25th of February of 1993, for the

port of Fortaleza and its competences are exercised by the CDC, a mixed economy corporation constituted on the 9th of April of 1965, in the terms of the Law and its respective statutes and regiments.

2.8 – Port Work: Custom duty services, stowage, cargo inspection, cargo repair,

ship and block surveillance. 2.9 – Custom Duty: The activity of moving goods within facilities for public use,

encompassing receiving, inspection, internal transportation, opening of volumes for customs inspection, handling, stowing and delivery, as well as loading and unloading of ships, when done so with port equipment.

2.10 - Stowage: The activity of moving goods on deck or in the compartments of

main or auxiliary ship, including transshipment, stowage, peação and despeação, as well as loading and unloading of ships, when done so with on board equipment;

2.11 – Cargo inspection – The activity of volume counts, writing down of features,

origin and/or destination, verification of the goods’ physical state, help with weighing, inspection of other related services, during the operations of loading and unloading ships;

2.12 – Cargo repair – The activity of repairing and restoring goods’ packaging

during the operations of loading and unloading of ships, repackaging, marking, remarking, stamping, labeling, opening of volumes for inspection and further recomposition;

2.13 – Ship surveillance – The activity of inspecting both the entrance and exit of

people onboard docked or anchored ships as well as the moving of goods in the portalós, ramps, basements, decks, platforms and on any other place within the ship;

2.14 - Block – The activity of cleaning and conserving merchant ships and its

compartments and tanks, including the scraping of rust, painting, small repairs and other related services;

III - GENERAL INFORMATION CONCERNING FORTALEZA’S PORT

3.1 – Geographical position * Latitude South 03°41’28” * Longitude W 38°33’29”

3.2 – Ocean Map * Brazilian 701 * Foreign HD(MK) 526 USN00 24251 3.3 – Local time * GMT minus 03:00 hours

3.4 – Average temperature * 26.7 oC 3.5 – Atmospheric pressure (average) * 1000.9 mb of mercury 3.6 – Relative air humidity (average) * 85% ( eighty-five percent) 3.7 – Wind speed and direction (average) * 3.8 m/sec, East and Southeast direction 3.8 - Tide * Maximum 2.60 m * Average fluctuation 2.00 m * Average level 1.39 m 3.9 – Entrance canal * Length1,000 m * Width 100 m * Depth 11 m 3.10 – Evolution Basin: Width of 500 meters through out the entire pier, with a

depth of 7 meters to 10 meters. 3.11 - Mooring facilities 3.11.1 - Commercial pier: Extending 1,054 m, with 05 mooring berths, full

container ships, General Cargo and Bulk Solids with a depth which varies between 10 to 3 meters.

3.11.2 - Oil tanker Pier: Operation platform which extends 90 meters with a

depth which varies from 12 to 11 meters, has an entrance overpass which extends 853m and 02(two) mooring berths and 07(seven) tubovias.

3.12 - Piloting: Carried out by contractors, counts with the help of 06 pilots which

obey the port’s work schedule of 24 uninterrupted hours, during all days of the week.

3.13 - Support ships: There are 04 contracted tugboats, with power between

1.050hp and 2200hp and 04 boats, also contracted, to aid with ship mooring operations.

3.14 – Facilities and storage

* 03 warehouses with a static capacity for 105,800 tones of bulk solids;

* 02 warehouses for general cargo with a total area of 12,000 m2.* 04 silos with a capacity for 80,000 Tones of bulk solids, belonging to the

mills: Grande Moinho Cearense, Moinho Fortaleza and Empresa Comercial e Industrial de Produtos Vegetais.

* 01 yard with a capacity for 4,570 TEU’s (empty containers);

* 01 yard with a capacity for 3,084 TEU’s (full containers);* 100 inputs for freezer containers.

3.15 - Unions

* Workers Union for Customs Duty at Public, Private and Retroports of the State of Ceará.Av. Matias Beck, 6920 - Mucuripe - Fortaleza-CEPhone: 263-4207 * Loading and Unloading Inspectors and Repairmen’s Union of the Port of Fortaleza.Edifício do operadores portuários salas 08 e 09 - Fortaleza-CEPhone: 263-4138 * Stowers and Mining Stowage Workers’ Union of the State of Ceará.Av. Presidente Castelo Branco, 168 - Centro - Fortaleza-CEPhone: 231-0385 * Longshoremen’s Union of Fortaleza.Rua José Avelino, 14/20 - Praia de Iracema - Fortaleza-CE * Watchmen’s Union (security) Rua Alfredo Salgado, 48 - Centro - Fortaleza-CEPhone: 212-7633 * Port Operator’s Union from the State of Ceará – SINDOPCEAvenida Monsenhor Tabosa, 111 – 2o Andar Sala 45 – Centro – Fortaleza- CEPhone: 219- 0940. * Maritime Agencies’ Union of the State of Ceará – SINDACE Avenida Monsenhor Tabosa, 111 – 2o Andar Sala 45 – Centro – Fortaleza- CEPhone: 219- 0940.

IV – INTERVENING ENTITIES AND AUTHORITIES IN THE PORT’S

FUNCTIONING .

4.1 – General Classification 4.1.1 – The following are intervening entities and authorities in the

Organized Port of Fortaleza.:

a) Port Authority Council - CAPb) Port Authorityc) Maritime Authority d) Customs Authority e) Sanitation and Health Authorityf) Phytosanitary Authorityg) Maritime Police Authorityh) IBAMA

i) SEFAZj) Labor Management

4.1.2 – The intervening entities and authorities in the Organized Port of Fortaleza shall create permanent mechanisms for coordinating and integrating of the respective functions, with the purpose of helping inspection and the liberation of people, ships and goods.

4.2 – Port Authority Council - CAP

4.2.1 – It is the responsibility of the Port Authority Council - CAP, entity of collegiate deliberation, of obligatory existence, and of permanent functioning, in terms of Law No. 8.630, of the 25th of February of 1993, to:

a) Obey Exploration Regulation; b) Ratify the Port’s operational schedule;c) ratify the values of port tariffs;d) consider the Port’s budget proposal;e) promote the rationing and optimization of the use of the port’s facilities; f) stimulate the Port’s industrial and commercial action;g) oversee the compliance of defense regulation; h) develop a mechanism to attract cargo; i) ascertain compliance of environmental protection regulation;j) approve the Port’s Zoning and Development Plan;k) manifest itself about construction programs, acquisitions, and

improvements in the Port’s infrastructure; l) promote studies aiming to make the port’s development plan

compatible with federal, state and municipal transportation programs in all its modalities;

m) stimulate competitiveness; n) indicate a member of the business class and another from the

working class to compose the administrative council or an equivalent entity from the port’s utility, as long as it’s under state control;

o) obey its internal regiment;p) to pronounce itself about other matters which concern the Port.

4.3 – Port Authority

4.3.1 – Fortaleza’s Organized Port Authority, to whom, this function, and within the limits of Fortaleza’s Organized Port, is responsible for:a) comply and make others comply with the laws and the regulations

of the service and with contract clauses;b) ascertain, to businesses and navigation, the use of advantages

derived from the improvement and equipment supply of the Port; c) pre-qualify port operators;

d) fix the values and collect port tariffs; e) supply technical and administrative support to the Port Authority

Council and to labor management;f) inspect the execution or execute construction projects, reforms,

expansion, improvement and conservation of port facilities, including protection infrastructure and water access to the Port;

g) inspect port operations, making sure that the services are done regularly, with efficiency, safety and respects the environment;

h) adopt the measures required by all Port authorities, in the scope of their competencies;

i) organize and regulate port security, in order to promote surveillance and safety in the Port;

j) promote the removal of ships or abandoned ships which can harm the navigation of ships which access the Port;

k) previously authorize, after hearing all port authorities, the entry or exit, including mooring and unmooring, anchoring and ship traffic in the port’s area, as well as the moving of cargo of the referred ship, with the exception of the intervention of maritime authority in priority situations of assistance and rescue of ships;

l) suspend operations which may harm port operations, with the exception of aspects which are of interest to the maritime authority responsible for the safety of water traffic;

m) go after infractions and initiate administrative processes, applying penalties established by law, with the exception of legal aspects concerning the Confederation, so that the facts be investigated and judged together;

n) carry out work and other attributions which were handed down from the Port Authority Council;

o) establish the port’s operation schedule, as well as the work week in the pier for public use;

4.4 - Maritime Authority

4.4.1 – The Maritime Authority of Fortaleza’s Organized Port, is carried out

by the Capitania dos Portos do Estado do Ceará, Ministry of the Marine.

4.4.2 - The Martime Authority responsible for traffic safety can intervene in order to ascertain or guaranty priority to Brazilian Marine vessels to set anchor in the port.

4.5 - Customs Authority

4.5.1 - The Customs Authority of Fortaleza’s Organized Port, is carried out by Fortaleza’s Port Customs, of the Ministry of Treasury, with the responsibility to:a) comply and enforce compliance with the legislation that regulates

the entry, stay and exit of any goods or merchandise from the country;

b) inspect the entry, stay, and movement and exit of people, vehicles, cargo units, without causing harm to other port authorities;

c) carry out customs surveillance and promote the repression against smuggled goods and drug trafficking, without harming the attributes of other entities;

d) collect the duties incurred from foreign trade;e) proceed with customs dispatching with exports and imports;f) demand tributary responsability for damages, breakage or faulty

goods in volumes which are subject to customs control;g) proceed with the apprehension of irregular goods, according to the

applicable fiscal legislation;h) authorize the removal of goods from the port to other areas, be it

customs related or not, according to customs legislation;i) manage the application, to imported and exported goods, whereby

duties may be suspended or exonorated; j) guaranty, in the customs plan, the compliance with international

treaties, agreements or conventions;k) Over see customs legislation compliance and national defense

interests.4.5.2 – Customs control of organized ports, grounds, warehouses, terminals

and other places destined for movement and storage of imported goods or destined for export, shall be carried out after complying with the requirements according to specific legislation

4.5.3 – In carrying out its duties, the Customs Authority shall have free access to all port areas and to ships moored or not, as well as places where goods destined or arrived from foreign soil, able to judge, when judged necessary, demand papers, books and other documents, including, when deemed necessary, help from federal, state and municipal police.

4.6 – Sanitation and Health Authority

4.6.1 – The Sanitation and Health Authority is carried out by the Regional Sanitary Surveillance Service of Ports, Airports and Borders of the State of Ceará, the Ministry of Health, having full access to ships, or in Fortaleza’s Organized Port’s areas;

a) observe the occurrence of suspicious cases onboard; b) inspect the compliance of the responsibility term about the

procedures for “cholera”;c) promote the reading of onboard text concerning “cholera”;d) inspect the treatment and final destination of onboard waste;e) inspect the hygienic/sanitary conditions of risk compartments;f) inspect the water supply system and supply of drinkable water for

human consumption; g) inspect the operational conditions of waste-water and waste

treatment systems. 4.7 – Fitossanitária Authority

4.7.1 – The Phytosanitary Authority is carried out by the Agricultural Surveillance Post, from the Ministry of Agriculture, according to the

specific legislation.

4.8 – Maritime Police Authority

4.8.1 – The Maritime Police Authority is carried out by the Maritime, Air and Border Police Services, from the Ministry of Justice, according to the specific legislation.

4.9 - IBAMA

4.9.1 – Carries out its activities in terms of the specific legislation.

4.10 - SEFAZ

4.10.1 - Carries out its activities in terms of the specific legislation.

4.11 – Labor Management

4.10.1 – It is the responsibility of Labor Management to:

a) manage the supply of labor of port workers; b) organize and maintain, with exclusiveness, the register of port

workers and the register of outsourced port workers, trained in order to perform the activities of customs duty, stowage, cargo inspection, cargo repair, ship and block surveillance;

c) select and register all outsourced port workers; d) establish the number of jobs, the way and the frequency for the

outsourced workers register;e) expedite identification documents of port workers; f) collect and pass onto the respective beneficiaries: g) apply when applicable, all disciplinary norms according to laws,

contracts, conventions or collective work agreements, and in the case of disciplinary transgression, the following penalties:

g.1 – verbal or written apprehension;g.2 – suspension of the register during a period of ten to thirty days; g.3 – canceling of the register.

h) promote professional and multifunctional training for port workers, as well as relocation and incentives programs in the cancellation of the register and advancing retirement payment;

i) collect all contributions destined to support the entity;j) over see health, hygiene and safety norms in port work; k) submit to Companhia Docas do Ceará and to the Port Authority

Council of Fortaleza, proposals which are aimed at improving port operations and increasing the port’s economic value;

l) respond, to Port Operators, in terms of port workers’ remuneration;

m) observe norms of contracts, conventions or collective work agreements, in labor management.

V – THE ORGANIZED PORT’S AREA

5.1 – Fortaleza’s Organized Port Area is defined by the Law-Decree No. 239, 05th

of May of 1994, from the Ministry of Transport, as published in the Confederation’s Official Journal.

VI – WORK SCHEDULE

6.1 – Fortaleza’S Organized Port’s work schedule established by CDC and ratified

by the Port Authority Council – CAP, is defined as the following: 6.1.1 – Operational Schedule 6.1.1.1 – In order to service port operations, the port functions

continuously, 24 hours a day, including Saturdays, Sundays and holidays, divided into 04(four) shifts of 06(six) hours, distributed as follows:

* 1st shift: 07:00 to 13:00 * 2 nd shift: 13:00 to 19:00

* 3 rd shift: 19:00 to 01:00 * 4 th shift: 01:00 to 07:00

6.1.2 – Administrative Schedule

6.1.2.1 – In order to service CDC’s administrative activities, the sectors shall function from Monday to Friday in two shifts of 04(four) hours, distributed as follows:

* 1 st shift: 07:00 to 11:00 * 2 nd shift: 13:00 to 17:00

VII – USE OF THE PORT’S FACILITIES

7.1 – GENERAL CONDITIONS

7.1.1 – The use of Fortaleza’s Organized Port’s facilities, shall be carried out according to the conditions established in this Regulation, observing the competence of Maritime, Customs, Sanitation and Health and Maritime Police Authorities.

7.1.2 – All those that use the port’s facilities shall receive from the port’s

administration guidance aiming to optimize and rationalize its use.

7.1.3 – The dangerous goods operator, described in item 7.1.13, shall be consulted, by the user or Port Operator, in terms of availability of the facility, equipment and compatible means with the requested operation; the port’s administration shall also confirm, the acceptance, or the reasons for refusal of the operation.

7.1.4 – The use of port facilities shall be authorized, according to this

Regulation, by the Port Administration from the request of the port operator, armador or representative, cargo owner or lessee, depending on the case, and shall be retributed with the payment of port tariffs, ratified by the Port Authority Council.

7.1.5 – In order to service all orders made to the Port’s Administration,

according to the terms of the previous item, interested parties shall pay in advance or deposit ahead of time, as a guaranty, these requirements may be disregarded when there is a partnership or contract, between the user and the Port’s Administration, or if the user is a regular, registered member.

7.1.6 – Except in the case of arribada, no service shall be rendered by the

Port’s Administration without previous consent and compliance with item 7.1.5 of this Regulation.

7.1.7 – When the value of the service to be rendered goes beyond the

amount paid or deposited as a guaranty, the applicant is obliged to make, immediately, a complementary payment or deposit required by the Port’s Administration.

7.1.8 – It shall be established that the tariff to be paid for any rate or service

required shall be effective on the date where the operation begins, no readjustments or increases shall be applicable.

7.1.9 – At the end of each operation the accounts between the values

collected in advance and the values effectively owed due to the use of the required facilities shall be added. In the vent that the amount collected is superior to the value of the inquired balance at the end, the difference shall be immediately reimbursed, and in the event that it is not enough, the applicant shall complement, immediately, the difference.

7.1.10 – A user with outstanding payments in order to use port equipment or

facilities, directly or through third parties, shall make an advance payment of the services to be used, without the loses due to penalties applied to present outstanding payments.

7.1.11 – For legal and regulation means, ship brokers or their

representatives and/or port operators act as representatives of the freight forwarders and their representatives such as owners or lessee of goods.

7.1.12 – It is up to the applicants to assume full, civil and penal liability, for

their actions or omission, including from their respective reps, within the limits of the mandate.

7.1.13 – For the terms of this Regulation, the following are considered to be

dangerous goods:

a- Class 1 - Explosives;

b- Class 2 - Compressed, liquefied gases, or gases dissolved under pressure;

c- Class 3 - Inflammable liquids;

d- Class 4.1- Inflammable solids;

e- Class 4.2- Solid substances susceptible to spontaneous combustion;

f- Class 4.3- Solid substances which release inflammable gases

when wet; g- Class 5.1- Oxidating substances;

h- Class 5.2- Organic peroxides;

i- Class 6.1- Poisonous substances (toxic);

j- Class 6.2- Infectious substances;

k- Class 7 - Radioactive substances;

l- Class 8 - Corrosives;

m- Class 9 - Other dangerous substances.

7.1.14 – Ships and their crew are subject to the present Regulation during

the time that they remain in the organized port’s area.

7.2 – Use of Port facilities and Protection and Water Access Infrastructure

7.2.1 – The use of the anchor area, evolution basin and access canal by ships shall be authorized by the Port Authority, according to the terms and conditions of this Regulation and with previous authorization of the Maritime, Customs, Sanitation and Maritime Police Authorities.

7.2.2 – The entry and exit operations of ships are disciplined by the Traffic

and Stay Regulation in all Ports and Terminals.

7.2.3 – Except in the case of arribada, the armador, the water carrier or his agent, depending on the case, shall require the authorization in reference to item 7.2.1, therefore supplying, 24 (twenty-four) hours in advance the arrival of the ship, the following information:

a - name of the ship;

b - flag under which it is navigating;

c - nature and purpose of navigation;

d - last port visited and next port of destination;

e – name and address of person responsible for the ship

and for the payment of port taxes;

f – ship features:

f.1 – total length and clearance width

f.2 – net tons, net capacity tons and liquid capacity tons;

f.3 – max. depth, entry depth and foreseen depth for exit;

g - nature of the operation;

h – copy of cargo to be unloaded or boarded, or, provissionaly, detailed list of cargo signed by the responsible party for the ship or by a representative;

i – number of passengers to board and not onboard;

j – foreseen dates of arrival and departure;

k – any irregularity or abnormality which could affect navigational safety or which could harm the efficient use of port facilities;

l - indicate the need to use operational equipment and services.

7.2.4 – In the case of ships which transport dangerous goods, the armador,

the water carrier or his agent, shall, together with the information indicated in item 7.2.3 of this Regulation, supply the following specific data:

a – correct technical name of all goods, according to the

classification of the Codes of the INTERNACIONAL MARITIME ORGANIZATION - IMO, the United Nations - UN, flash point, if necessary, and the UN Nr. (identification number established by the United Nations Committee);

b – the amount of dangerous cargo on board, identifying which

shall be unloaded at the port and which shall remain on board, with the localization of the latter within the ship;

c – type of packaging;

d - the physical state of the dangerous goods and the possibility of accidents;

e - information about if the ship has some type of certified

insurance for transporting dangerous goods.

7.2.5 – When the data referred to in item 7.2.4 is omitted or imprecise and results in a harmful event, the responsibility of the damages or for the accidents shall be of the armador, the water carrier and its agent.

7.2.6 –Stay within the anchorage area shall be for a limited time,

established in function of:

a - the availability of the mooring berth compatible with the foreseen port operation;

b - the availability of the mooring berth compatible with the ship’s depth;

c - safety and epidemic measures.

7.2.7 – The ship’s anchoring shall only be allowed in an area defined for this purpose by the Maritime Authority, the anchoring of ships not being allowed in the access canal; anchoring in the evolution basin may be authorized, and is up to Port Authority, as long as it does not harm traffic or maneuvering of other ships.

7.2.8 – For the use water access infrastructure, the applicants shall pay the tariffs on Table I

of Fortaleza’s Port tariffs.

7.3 – Use of the Port’s Mooring Facilities

7.3.1 – General Dispositions

7.3.1.1 – Once the ship’s arrival is confirmed and having the mooring request in order, after obtaining proper clearance from the authorities, the Port’s Administration shall authorize the ship’s mooring by chronological order of arrival at the port for the designated occupation, while observing all legal priorities.

7.3.1.2 – The Port’s Administration is not obliged to accept mooring

requests for ships which come into the port in order to receive cargo in quantities that can not guaranty continuous movement and with a performance level which is compatible with the foreseen duration of stay for the ship and which does not comply with mooring berth requirements.

7.3.1.3 -Mooring and unmooring shall be done under the

responsibility of the ships officer and it is up to the Port’s Administration to help with the operations, with its own staff.

7.3.1.4 – Mooring and unmooring shall be done after the end of port

operations or after refueling, depending on the case. 7.3.1.5 – Moored ships shall comply with all orders given by the

Port’s Administration, especially in situations of abnormalities which may compromise the safety of people, facilities and of the ships, or which may harm the proper functioning of the port.

7.3.1.6 – In case of fire on board, the ships shall unmoor from the

pier, moving to the fire prevention anchorage area, except in situations defined by authorities.

7.3.1.7 – A ship’s time of stay at the mooring birth begins at the end

of mooring and ends after the last cable is released. 7.3.1.8 – The time of stay at the mooring berth shall be estimated by

the Port’s Administration based on the information which is referred to in items 7.2.3 and 7.2.4 of this Regulation, also based on their previous experiences with similar situations.

7.3.1.9 – The Port’s Administration may authorize the mooring of a ship facing another ship moored at the mooring berth, at the armador’s request or of his superiors and under total responsibility of the respective officers.

7.3.1.10 – All sips remain subject to the present Regulation during

the time which they stay in the anchorage area, access canal, evolution basin or moored, as well as its crew.

7.3.1.11 – All ships which enter the port, shall correspond to a

number which shall be given the Port Authority. 7.3.1.12 – The officer or his superior remain, responsible for any

breakdown which may occur during mooring/unmooring maneuvers.

7.3.1.13 – For the use of mooring facilities, the applicants shall pay

the tariffs on Table II of Fortaleza’s Port tariffs.

7.3.2 – Mooring Priority

7.3.2.1- The concession of mooring priority shall be regulated by the regulations listed below:

a – Immediate Mooring shall be granted to passenger ships,

without any cargo to move, for tourism trips having more than 50 passengers and to mixed ships, with or without cargo to move, having 50 or more passengers.

b – Preferential Mooring shall be granted at the respective areas of the pier, to ships which have exclusively to move goods for which the port has specific or preferential facilities.

c – Immediate Mooring shall be granted to ships whose armadores have a mooring window concession

agreement.c.1- Agreement conditions for window concession:

c.1.1 – program of ship’s arrival, with the day and time of the week determined at the request, for the entire validity of the agreement, which shall be 06(six) months minimum, renewable for subsequent periods.c.1.2 –Guaranty of minimum movement for the validity of the agreement, being penalized if the guaranty is not complied with.c.1.3 – Guaranty of minimum productivity per scale, 25% more than the one established by the port, being penalized if the guaranty is not complied with.

c.1.4 – Maximum period of 06(six) hours (duration of window) for ship mooring, while observing tide conditions, after arrival.

c.1.5 – The period in which the pier becomes available and is not occupied, a fee shall be charged according to item 4.2. of the Application Norms of Table II, of Fortaleza’s Port Tariffs, based on the length and the period in which the pier remained available.c.1.6 – Canceling of the window’s use, shall only be made possible with, a minimum of 48(forty-eight) hours in advance, the armador remaining subject to the payment of 50% of the value calculated according to what is established in item 4.2. of the Application Norms of Table II, of Fortaleza’s Port Tariffs, based on the length and period of the mooring window.c.1.7 - The non use of the window, without the canceling procedure found in item c.1.6, will result in the full charge of the value calculated according to the Application Norms of Table II, of Fortaleza’s Port Tariffs, based on the length and period of the mooring window.

d- When the terms established in items “a”, “b” and “c” are respected, the following mooring priorities shall be granted:

I – to ships specially to load/unload containers; II – to ships with paper rolls; III – to ships with frozen cargo; IV – to ships with bulk or packed cereals as long as

these cereals are needed in the local region. 7.3.3 – Mooring Regulation

a - Maneuver requirements shall be solicited in writing, within 48(forty-eight) hours minimum in advance in relation to the required mooring time, signed by the person responsible, to CODGEP of CDC, between 07:00 and 17:00 Monday to Friday and between 07: 00 and 12:00 on Saturdays.

a.1 – The cost of mooring and unmooring maneuvers which

are done until 1:00 hour after the time foreseen in the request, shall be passed on to the requisition agent.

a.2 – Maneuver costs are understood as, those incurred from the payment of fees to CDC staff and/or costs incurred from contracted workers solicited by OGMO.

a.3 – Schedule changes solicited for maneuvers if they are required after the determination of extra expenses and/or request of outsourced work from OGMO, without the possibility of canceling both, the incurred cost is passed on to the agent.

a.4 – According to item a.1, previous defense shall be guarantied, based on technical justification, within the deadline of 05(five) business days after receipt of notification, for analysis and decision by infrastructure and port management of the CDC.

b – Immediate, preferential, priority or non-priority moorings shall

be granted by the CDC, for ships operating at a normal rhythm, during all consecutive periods during the port’s work schedule.

c – For regulation purposes, the following are defined:

c.1 – Normal Rhythm – simultaneous work in all ship compartments which have goods for loading or unloading;

c.2 - Period –time of daily or nightly work established in the port’s schedule;

d – The ship which fails to follow a normal rhythm for loading and

unloading, without just cause, shall unmoor, go to the end of the mooring line. In this case, the CDC shall promote the unmooring with the risk and cost being assumed by the armador.

e – Ship companies, by themselves or through their representatives,

shall present to the CDC all priority requests, in print format, which, if deemed necessary, may demand proof of authenticity of the information supplied.

f – In the event that a ship has benefited from preferential mooring,

and if the information is found to be imprecise, the ship shall unmoor and go to the end of the mooring line, and the responsible companies shall assume all expenses incurred.

g – For immediate moorings which arrive at the Port, the people

responsible shall request priority within 48(forty-eight) hours minimum ahead of time before the intended mooring time.

h – For mixed ships which have passengers to unboard and cargo to

move, shall be granted, 3(three) consecutive work periods max. of boarding and unboarding operations.

i – For passenger and mixed ships, without any cargo to move, shall

be granted only one work period. j – In the absence of a free pier for immediate mooring for mixed

and tourist ships, the unmooring of a cargo ship belonging to the same armador of the same mixed ship; if this cargo ship does not exist, the choice shall be made by the agent of the mixed ship; if this also lacking, the unmooring of the most recently moored cargo ship, among them the one with the space which is most compatible with the mooring of the mixed ship.

k – The unmooring of a cargo ship, according to the previous item,

shall only be determined if the mixed ship’s company, alone or through its agent, commit itself to pay all transportation expenses, in order to moor and unmoor.

l – The ship which obtains priority in order to unload live animals,

mooring shall be granted for limited time to the operation which gave motive for this priority and, in each case, fixed by the CDC, to the ship which has to unload live animals shall receive the same treatment.

m – Ships which only need to receive goods, mooring shall only be

granted when the ships have the cargo dispatched and ready in order to maintain operations at a normal rhythm.

n – All ships with or without mooring priority, shall unmoor

immediately, after the end of boarding and unboarding operations, so that their space can be immediately taken, by another ship. If there are no ships waiting for mooring, the CDC may, if chooses to do so and through a written request, authorize the stay of the moored ship, during the period in which there is no other ship to be moored in the same place.

o – Priority mooring shall be granted to the ship who performs one

type of operation or unboarding or unloading, with the following exceptions:

o.1 – Mixed ships, oil tankers, ships which obtain priority

mooring because they remained 10(ten) or more days.o.2 – Ships which, having obtained priority, can

simultaneously board or unload non-priority goods, as long as, in all cases, authorized by the CDC. Under no circumstance, the normal deadline can not be expedited for priority boarding or unloading, this deadline shall

be previously fixed by the CDC.

p – Preference for boarding or unloading is guarantied for crude oil, gasoline, kerosene, diesel oil, fuel oil and simple lubrifiers, compounds and emulsives, when transported in bulk, these services shall be uninterrupted, including on Sundays and holidays in the existing pier, destined for petroleum derivatives (Law Decree 4.627 of August 27th of 1942).

q – Within each priority range the chronological order of arrival of

ships to the port shall be followed , except when the length and/or depth of the available place in the pier is not compatible with the length and/or ship’s depth to be moored and when the removal of the ship to accommodate the requester is physically impossible. In this case, the CDC, as it deems necessary, may alter the order mentioned herein.

r – Moore granting during the window periods mentioned in item

7.3.2.1- c, of this regulation, shall always be conditioned to unmooring, for the arrival of ships holding a window.

r.1 – The unmooring of the cargo ship shall be determined more recently, among those whose place is compatible with a ship which holds a window. The costs of the necessary maneuvers shall be taken on by the cargo ship which does not hold a window.

r.2 – The cargo ship which fails to unmoor in proper time for the entry of a ship holder of a window, shall take on all window operation costs.

r.3 – Item r-1 does not apply to ships with preferential mooring. s – Cases of omission shall be resolved by the CDC.

7.4 – Use of Land Port Facilities Which Support Port Operations

7.4.1 – Land port facilities which support port operations of goods are understood as facilities for storage, grounds, vehicle circulation, rail tracks for wagons, piers, mooring maneuvers, supplies and access and platform for the oil tanker pier and piping for unloading/boarding.

7.4.2 – The request shall be done in advance by the interested party,

instructed as the information required by the Port’s Administration. 7.4.3 – Goods may only be deposited in storage facilities compatible with

the nature and type. Dangerous goods may only be deposited in storage facilities with strict compliance with the pertinent safety regulation.

7.4.4 – The deposit of goods in circulation areas shall not be allowed, which shall be marked by the Port’s Administration. The deposit of goods is allowed, with the exception of dangerous goods, on the pier, without, however, harming the circulation of equipment and vehicles and wagons, only during operation phase, with the moored ship in the corresponding occupied pier.

7.4.5 – Unloaded goods, with the exception of dangerous goods, according to the Port’s Administration choice, and guarantying free circulation of equipment and vehicles, under the responsibility of the Port Operator, may remain at the pier until the end of the port operation of the goods or unmooring of the ship. In case of the non-removal of the goods, within the established deadline for storage or removal from the port, without harming the sanctions applicable to the Port Operator, by the Port’s Administration remains authorized to:

a - with the responsibility and risk of the port operator, remove

the goods, from the pier until the location of deposit;b – demand from the port operator the importance equivalent to

storage of the port operation, starting from the day of unloading until its removal from the port’s area;

c – The Port’s Administration shall only be responsible for the goods after its effective receipt, when its delivered.

7.4.6 – Goods to be loaded, with the exception of dangerous goods,

according to the Port’s Administration, and guarantying free circulation of equipment, vehicles and wagons under the responsibility of the Port Operator, may be deposited on the pier for future loading. In case they have not been loaded, they shall be removed until the end of the port operation of the goods or unmooring of the ship. In case of non-removal of the goods within the established deadline, for storage or removal from the port's area, the Port’s Administration, without harming applicable sanctions to the Port Operator, are authorized to:

a - with the responsibility and risk of the Port Operator, remove

the goods, from the pier until the deposit;b – demand the Port Operator the equivalent importance for

storage of the goods, from the day its deposited at the pier until its final deposit;

c – The Port’s Administration shall only be responsible for the goods after its effective receipt, when its delivered.

7.4.7 – It is the Port Operator’s responsibility to clean the pier, equipment,

facilities, yards and areas, immediately after the end of the operation, in such a way as to maintain all hygienic and safety conditions of the pier. Failure to do so, within the established deadline after the end of port operations, the Port’s Administration shall be authorized to carry out cleaning services with the expenses covered by the party responsible for the operation, without harming applicable sanctions to the Port Operator.

7.4.8 – In the vent of spills of dangerous goods due to damages, with possible physical damages and harming workers’ health, the responsible party for the port operation shall immediately, isolate the effected area, communicate the incident to the Port’s Administration and take action, aiming to immediately eliminate risks.

7.4.9 – With the use of land infrastructure the applicant shall pay all fees

from table III of Fortaleza’s Port tariffs.

7.5 – Use of Port’s Administration Equipment or Devices

7.5.1 – The Port’s Administration shall supply its own equipment or devices, if possible, to any Port Operator which requests it, for port operations.

7.5.2 – With the use of equipment belonging to the Port’s Administration

for moving goods or cargo, it shall be up to the Port Operator or the applicant to refuse them, in the event that they are not in operational condition.

7.5.3 – Equipment operators shall be trained for the service which is to be

performed, and shall be under the orders of the port operator or applicant, for the operation to be performed.

7.5.4 – The Port’s Administration is not responsible for any accidents or

damages caused to people, ships, facilities, goods or cargo, nor those which result from misconduct, negligence or failure of the equipment operators or from any other cause of any nature.

7.5.5 – The Port Operator shall insure its equipment against third parties,

assuming all costs from this action. 7.5.6 – The responsibility of the party which uses a piece of equipment or a

device begins at the beginning of its use, and ends after it is returned. This responsibility does not end during eventual stops of equipment or devices during moving goods or cargo.

7.5.7 – If the Port Operator wishes to use two or more pieces of equipment

from the Port’s Administration for goods or cargo, simultaneously, or separately with some special device, shall request its authorization. The given authorization does not imply any responsibility from the Port’s Administration.

7.5.8 – The Port Operator may use its own equipment and from third parties,

as long as they are in good condition, in order to perform port operations of their responsibility, needing only to communicate to the Port’s Administration, which equipment are to be used and for what they will be used.

7.5.9 – For the use of port equipment fees shall be paid according to table VI of Fortaleza’s port table and/or the table for equipment rental approved by the CAP.

7.5.10 – Hoisting equipment and its accessories, on ships or on land, which

may be necessary in moving cargo shall be periodically inspected and tested in terms of their physical state of conservation and functioning, with a technical report produced by the specialized company.

VIII – PORT OPERATIONS

8.1 – General Dispositions

8.1.1 – Port operations are made up of services performed by port operators, duly qualified by the CDC, in the port's area, relative to:

a - moving of goods destined for or originating from water transport ;

b - storage of goods destined for or originating from water transport.

8.1.2 – Internal transportation includes the transportation of goods with the use of equipment proper for its nature and type, from its unloading at the pier, together with the moored ship until the place of deposit in the storage facilities, designated by the depository or vice-versa.

8.2 – Moving of General Cargo and Bulk Solids

8.2.1 – The moving of goods from ships moored at the mooring berth to the pier or vice-versa, performed by the port operator, includes the activities of stowage, custom duty, cargo inspection and, eventually, in cases of specific requests, cargo repair and surveillance.

8.2.2 – The moving of goods shall be performed, preferentially, with

the ship moored at the mooring berth, for both loading and unloading operations.

8.2.3 – The moving of goods to ships moored at the mooring berth to

aother area, or from a ship to another area shall only be authorized by the Port’s Administration, through previous authorization by the Customs Authority, when need be.

8.2.4 - Transshipping imported or exported goods operations,

contrabordo of the ship moored or anchored, through cabotage or long route and auxilliary ships, may be authorized by the Port’s Administration, with previous notice from the Customs Authority, when need be.

8.2.5 – The Port Operator or ship broker shall communicate and

supply the following informative elements to the Port’s Administration, within 24(twenty-four) hours minimum in advance at the beginning of the corresponding operation:

a- a- ship’s name;

a- b- nature, type and respective quantity of goods to

move, inform, by the owner or trustee of the goods or

cargo;

b.1 – in operation to and from the port’s storage

facilities or yard ;b.2 – in operations of direct loading or unloading of

goods;

b.3 – in transshipment operations.

c – number of ternos and compartments which will be used;

d – time foreseen for port operations;

e – Port’s Administration port equipment or devices intended to be requested;

f – Port Administration’s port services or accessories intended to be requested.

8.2.6 – When the case is of dangerous goods, its movement shall only

be authorized by the Port’s Administration with the following information to be presented by the port operator, within 48(forty-eight) hours minimum in advance to the port operation:

a – the information required in item 7.2.4

b – management’s responsible technician for moving services;

c – work plan and safety measures which shall be adopted for moving goods.

8.2.7 – The volumes of goods which present signs or traces of

breakdown, with improper or damaged packaging: a – when destined for boarding, the most adequate measures

for the circumstances, by the Port Operator; b – In the case of boarded products which are damaged,

broken, with weight differences or which have some trace of violation, shall be set aside, on the same day of the unloading, where the characteristics of each volume, nature of damages or irregularity verified shall be mentioned, still sealed and closed for inspection purposes, according to the established legislation.

8.2.8 – Unloaded goods, either by long route or by cabotage, shall be

registered and documented by the receiving entity, which shall constitute, together with all which is in the established legislation and, when need be, with the cargo’s receipt, the documentation for all questions concerning the responsibility of receiving and delivery entities.

8.2.9 – The volumes shall be weighed when placed in warehouses and yards, whenever possible, keeping the brands, counter brands and mooring numbers legible, as well as dangerous goods or special symbols, when need be.

8.2.10 – The loading and unloading of explosives (class 1), gases

(class 2), inflammable liquids (class 3) and of inflammable solids (classes 4.1, 4.2 and 4.3), shall be performed in such a manner as to not remain in areas of operation.

8.2.11 – The moving of explosive goods shall only be authorized by

the Port’s Administration together with the Ministry of the Army, obtained by the user.

8.2.12 – The moving of radioactive goods shall only be authorized by

the Port’s Administration, when the operation is assisted and guided by a representative of the Comissão Nacional de Energia Nuclear – CNEN (National Commission of Nuclear Energy).

8.3 – Moving of Bulk Liquids

a – Moving of bulk liquids remains under control of this Regulation and by the “Operations, Safety and Maintenance Procedures of Facilities and Equipment of Fortaleza’s Port Oil Tanker Pier”, of the CDC.

b – The bulk liquid operations mentioned herein, remain restricted to the areas of the oil tanker pier, entrance overpass and the section of ducts until the limits of the port’s area, physically characterized by the port’s wall.

c – Navigational Agencies shall inform the CDC within 03(three) days in advance regarding ship programs, as well as, request mooring within at least 24(twenty-four) hours in advance, through the delivery, of port services documents (RSP).

d – Navigational agencies shall take necessary suspension action for mooring or operations canceling, in function of the ship Officer’s orders or of the CDC, in the event of unfavorable meteorological conditions.

e – The CDC shall include the ship’s mooring in the program, as soon as it receives the mooring request, from the navigational agency, determining the necessary operational procedures.

f – It shall still remain the CDC’s responsibility for electrical installations, concrete and metallic structures, fenders, mooring

posts, stairs, guarda corpos, building facilities and safety signs on the pier.

g – Operation companies are responsible for executing the operations, of loading and

unloading, which include:- connection, disconnection and grounding of pipes;- verification of the alignment, opening and closing of valves of

the unloading lines of the receiving tanks;- measures and tests which may become necessary; - cleaning and housekeeping in indicated areas, of the material,

tools and devices used; - cleaning and removal of bulk liquid residues which remain on

the platform after the operation; - filling out of forms and elaboration of reports required in each

case. 8.4 – Storage Services

8.4.1 – Storage service is trustworthy safekeeping and conservation of goods deposited in storage facilities, compatible with the nature and type of operation.

8.4.2 – Storage services also include inspection, receiving and and

later delivery: a – to the owner of the goods, or his representative, in the

case of unboarding, and its delivery by the Port Operator, for storage;

b – to the Port Operator, destined for the service of moving goods, in the case of loading after receipt of the respective owner or representative, or loading for storage.

8.4.3 – inspection is restricted to:

a - the type, weight, brand and counter brand and quantity of goods or cargo;

b – the integrity and absence of traces of violation to the volumes’ packaging;

c - absence of signs of damages. 8.4.4 – The goods shall be stowed by type, brand and counter brand,

knowledge, trustee and loader, always avoiding any contamination from one good to another; when working with dangerous goods, they shall always be segregated, according to the decision of the Port’s Administration, according to the terms established by the IMO.

8.4.5 – In the storage of goods, dangerous goods shall be separated,

according to its transportation: loading, unloading or transit, always avoiding any contamination from one good to another.

8.4.6 – Goods under Customs Authority inspection shall be stored in

adequate customs areas. 8.4.7 – Dangerous goods shall be deposited in special storage

facilities, provided with proper signs and identification, with strict compliance to Safety Regulations and moving; its storage in common storage facilities, even being compatible shall only be done if careful measures are taken to isolate the area and separate all other goods, in order to avoid contamination, risk of fire, explosion or harm to the environment. The signs mentioned above shall be supplied by the agent responsible for the goods.

8.4.8 – The storage period of dangerous goods, when authorized by

the Port’s Administration, shall be as short as possible. 8.4.9 – Goods in transit are considered to be:

a – originating from a port, going on to another port and unloaded for later boarding or delivery;

b- destined to the countries which have relations with Brazil, if unloaded, for later transport, by land or sea, or vice-versa.

8.4.10 – When the volumes of goods display signs of damages or

conditions which do not meet the requirements from health and phytosanitation authorities, having their packaging damaged or inadequate, the following procedures shall come into force:

a – when destined for boarding, it shall be adopted, by the Port’s

Administration, the most adequate measures for the circumstances;

b – if originating from boarding, the goods shall be received and

registered by documents with absence of damages, according to the present legislation, they shall also be deposited in an isolated place, reserved for inspection;

b.1 – ship officers or their representatives and port

operators shall look over the terms and sign them with the Fiel do Armazém, and if need be, the Customs Authority representative;

b.2 – for the terms of damages, if need be, summaries shall be submitted to the Customs Authority on the first day after unloading.

8.4.11 – The depository is now responsible for the goods after

receiving them from the deliverer. 8.4.12 – The depository responsibility does not cover:

a – the faults in the volumes’ content, if the volumes enter the

warehouses or grounds without traces of violation, with the original packaging and without any traces of damages and if these conditions remain until the opening for customs inspection or exit from warehouses or grounds;

b – faulty or damaged goods which are not reported, by writing, during delivery or boarding;

c – faults, content deterioration, contamination or destruction of volumes due to fortuitous or higher causes described in the terms of the Civil Code.

8.4.13 – The depository shall promote the sale, in a public auction, of

national or nationalized goods to whom the storage was confided, in the following cases:

a – when the owners of these goods declare, by writing, that

they have abandoned them; b – when, dealing with goods received by cabotage are not

dispatched for exit within the deadline of 90(ninety) days, starting from the respective unloading date;

c – when the goods referred to in line “b”, despite being dispatched for exit, are no longer removed by their owners within the deadline of 30(thirty) days, starting from the respective unloading date;

d – when, dealing with goods that are easily perishable, imported by cabotage and deposited in common warehouses, are not dispatched for exit within the deadline of 8(eight) days, starting from the respective unloading date;

e – when the goods referred to in line “d”, despite exit dispatches, are no longer removed by their owners, within the deadline of 5(five) days, starting from the respective unloading date;

f – when the respective owners fail to pay to the depositorys the value for the warehouse.

8.4.14 – The depository may establish longer deadlines than those

described in the lines of item 8.4.13 of this Regulation, thereby establishing so, by writing, after receiving goods at the deposit, may, also, reduce these deadlines for perishable goods, as long as it is authorized by the inspection entities, through justified order.

8.4.15 – From each sale which is done for stored goods, according to

item 8.3.13 of this Regulation, the depository shall communicate in a detailed fashion to the respective inspection entities.

8.4.16 – The product of the auctioned sale of stored goods, which is

done according to item 8.4.13 of this Regulation, the depository shall retain the portion corresponding to the withdrawal of the goods’ owners, for services rendered to them, and shall make the legal deposit to the balance, if need be, to be inquired by who has the right to do so.

8.4.17 – When the stored goods present risk of deterioration or

damage, the depository shall communicate the fact to the trustee or its representative or to the Customs Authority, if need be, for due action.

8.4.18 – National and nationalized goods which deteriorate during the

storage period shall be removed by the depository for proper care, all port costs and other costs which may be incurred shall be assumed by the goods’ trustee or representatives.

8.4.19 – In the cared for or lost goods treaty, the depository shall

observe the applicable legal procedures, mainly those established in Law-Decree no. 1.455/76.

8.4.20 – Storage services of goods in non-rented or rented areas shall

be carried out, exclusively, by the Port’s Administration. 8.4.21 – The depository shall establish the procedures for all

applicable documentation, at delivery and loading of goods which are under its care.

8.4.22 - The fiel do Armazém, responsible for the care of goods, shall

always assist in customs inspection done in the port’s storage facilities.

8.4.23 – The Port’s Administration shall become responsible for the

goods which are delivered to it by the owner, loader or its representative, or by the port operator with the effective receipt, after its arrangement, piling and inspection at the place of deposit at the storage facility.

8.4.24 – For storage services applicable fees are described in table V

of Fortaleza’s Port tariffs. 8.5 – Miscellaneous Services, Accessories or Connections for Port

Operations

8.5.1 – Miscellaneous services, accessories or connections for port services are considered to be services of a specific, eventual, complementary nature of the moving and/or of the storage of goods or cargo.

8.5.2 – Miscellaneous services are:

a – drinking water and electric power supply, communication

means for moored ships or when the consumer is a facility within the limits of the organized port’s area, when these facilities are used;

b – occupation of train tracks by contracted wagons, empty or full wagons, before or after the period of the effective operation.

c – parking of vehicles, empty or full, in port facilities area, before or after the effective operation period.

d – other non-specified services.

8.5.3 – The following make up moving accessory or connection

services:

a – cargo repair;

b – loading or unloading of goods from vehicles or train wagons, not contained in the use of port services for public use;

c – transfer of goods, within the port’s facilities, for the applicant’s convenience, or in compliance with the dispositions of this Regulation, or imposed by an operational nature;

d – removal of goods, non-boarded or unloaded and not removed, from the piers;

e – removal of goods from the storage platform, to grounds or warehouses, in compliance with the dispositions of this Regulation;

f – weighing of goods loaded onto train wagons or other vehicles;

g - other non-specified services. 8.5.4 – The following are storage accessory or connection services:

a – verification of the weight of goods, when required by the

user;

b – moving and opening of volumes, for inspection;

c – transfer of goods from one storage facility to another, due to modification of its initial regiment condition of storage;

d – unification of cargo, consolidation or unconsolidation of container cargo, within the port’s facilities;

e – expedition of certificates and other relative documents for the storage of goods, when required by interested parties;

f - other non-specified services. IX – PORT OPERATOR

9.1 - General Dispositions

9.1.1 – The port operator is a pre-qualified legal entity together with the

Port’s Administration, according to the Regulation published by the Port Authority Council, for carrying out port operations within the organized port’s area.

9.1.2 – The activity of port operator obeys the present Regulation. 9.1.3 – The Companhia Docas do Estado do Ceará (Dock Company of the

State of Ceará) is considered to be pre-qualified as Port Operator.