No. 8599-MEIC
THE PRESIDENT OF THE REPUBLIC
AND THE MINISTER OF ECONOMY, INDUSTRY AND COMMERCE.

Based on the capacities granted by subsections 3) and 18) of Section 140 of the Constitution and in Law No. 6209 of March 9, 1978.

Decree:

The following

Regulations to Law No. 6209 of March 9, 1978

 

Section 1- The amount of the indemnifications referred to in Section 2 of Law No. 6209 will be determined:

a- For the representatives of foreign companies, adding the commissions received during the last four years or fraction of effectiveness of the contract, including commissions corresponding to pending purchase orders. The above indicated amount will be divided between the number of months constituting the term of calculation for the purposes of establishing the gross profit monthly average, which will be multiplied by the number of years or fraction of effectiveness of the contract, then it will be multiplied by four.

b- For the distributors or co-distributors, adding the gross profits received during the last two years or fraction of effectiveness of the contract, amount that will be divided by the number of months constituting the term of calculation for the purposes of establishing the gross profit monthly average, which will be multiplied by the number of years or of effectiveness of the contract, then it will be multiplied by four.

c- For the manufacturers, adding the gross profits received during the last four years or fraction of effectiveness of the contract. Such amount will be divided between the number of months constituting the term of calculation for the purposes of establishing the gross profits monthly average. This amount will be multiplied by the number of years or of effectiveness of the contract, then it will be multiplied by four.

d- For the representative of foreign companies, which is also a distributor, co-distributor or manufacturer, adding all the amounts resulting from the calculations indicated in subsections a), b) and c) above.

e- For the distributor or co-distributor, which is also a manufacturer, adding the amounts resulting from the procedures indicated in subsections b) and c) above.

 

Section 2- For establishing the gross profits referred to in subsections b) and c) of the above Section, the difference between the product’s sales price and its cost is to be used.

Section 3- In no event, the indemnifications indicated in Section 1 of these Regulations, may exceed a total of 36 months of indemnification.

Section 4- Upon termination of the contract the foreign company must: