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CHAPTER I - THE GENERAL PRINCIPLES OF THE ECONOMIC ACTIVITY
Article 170.The economic order, founded on the appreciation of the value of human work and on free enterprise, is intended to ensure everyone a life with dignity, in accordance with the dictates of social justice, with due regard for the following principles:
Clause XI, text in purple added by CA 42, December 19th 2003.
VII - reduction of regional and social differences;
Clause IX amended by CA 6, August 15th 1998. The original text made reference to "Brazilian enterprises" only.
Sole paragraph - Free exercise of any economic activity is ensured to everyone, regardless of authorization from government agencies, except in the cases set forth bv law.
Article l7l. (revoked).
This article defined what a "Brazilian enterprise" was, for the purposes of the provisions of article 170, IX, and others.
Article 172. The law shall regulate, based on national interests, the foreign capital investments, shall encourage reinvestments and shall regulate the remittance of profits.
Article 173. With the exception of the cases set forth in this Constitution, the direct exploitation of an economic activity by the State shall only be allowed whenever needed to the imperative necessities of the national security or to a relevant collective interest, as defined by law.
Paragraph 1 ammended by CA 19, June 4th 1998. Original text read: "Paragraph 1 - The public company, the mixed-capital company and other entities engaged in economic activities are subject to the specific legal system governing private companies, including labour and tax liabilities." The aim of this CA was twofold: to give more freedom to State companies to compete with private companies (before the CA, State companies and the direct public administration were subject to the same bidding and contracting laws; so, to buy a truck, Petrobrás had to face the same bureaucratic bidding as a hospital to buy medicines) and to bring accountability to the administration of the State companies (most directors are still appointed by politicians, and some directors used to be more concerned with political than economic results).
Paragraph 2 - The public companies and the mixed-capital companies may not enjoy fiscal privileges which are not extended to companies of the private sector.
Article 174. As the normative and regulating agent of the economic activity, the State shall, in the manner set forth by law, perform the functions of control, incentive and planning, the latter being binding for the public sector and indicative for the private sector.
Article 175. It is incumbent upon the Government, as set forth by law, to provide public utility services, either directly or by concession or permission, which will always be through public bidding.
Article 176.Mineral deposits, under exploitation or not, and other mineral resources and the hydraulic energy potentials form, for the purpose of exploitation or use, a property separate from that of the soil and belong to the Union, the concessionaire being guaranteed the ownership of the mined product.
Paragraph 1 amended by CA 6, August 15th 1995. See article 171.
Paragraph 2 - The owner of the soil is ensured of participation in the results of the mining operation, in the manner and amount as the law shall establish.
Paragraph 4 - Exploitation of a renewable energy potential of small capacity shall not require an authorization or concession.
Article 177. The following are the monopoly of the Union:
Paragraph 1 amended by CA 9, November 9th 1995. Original text read: "Paragraph 1. The monopoly set forth by this article includes the risks and results derived from the activities mentioned, the Union being forbidden of granting or chartering any kind of participation, in cash or valuables, in the exploration of reservoirs of oil or natural gas, excepted the provisions of article 20, paragraph 1." This CA ended the monopoly of Petrobrás. This CA passed in the first year of the first term of President Fernando Henrique Cardoso; the same year, the CA ending the monopoly of the Telecommunication companies passed. Nationalists accused FHC of "selling the assets of Brazilian society".
Paragraph 2 - The law referred to in paragraph I shall provide for:
Paragraph 2 added by CA 9, November 9th 1995. The former paragraph 2 was turned into paragraph 3 below.
Paragraph 3 - The law shall provide with respect to the transportation and use of radioactive materials within the national territory.
Paragraph 4 added by CA 33, December 11th 2001.
Article 178. The law shall provide for the regulation of air, water and ground transportation, and it shall, in respect to the regulation of international transportation, comply with the agreements entered into by the Union, with due regard to the principle of reciprocity.
Article 178 amended by CA 7, August 15th 1998. The original text gave a monopoly to national vessels to make transportations along the Brazilian coast, and determined other privileges to Brazilian ships and respective commanders.
Article 179. The Union, the states, the Federal District and the municipalities shall afford micro-enterprises and small enterprises, as defined by law, differentiated legal treatment, seeking to further them through simplification of their administration, tax, social security and credit obligations or through elimination or reduction thereof by means of law.
Article 180.The Union, the states, the Federal District and the municipalities shall promote and further tourism as a factor of social and economic development.
Article 181. Compliance with request for a document or for information of commercial nature, made by a foreign administrative or judicial authority to an individual or legal entity residing or domiciled in the country shall depend upon authorization from the competent authority.
CHAPTER II - URBAN POLICY
Article 182.The urban development policy carried out by the municipal government, according to general guidelines set forth in the law, is aimed at ordaining the full development of the social functions of the city and ensuring the well-being of its inhabitants.
Paragraph 1 - The master plan, approved by the City Council, which is compulsory for cities of over twenty thousand inhabitants, is the basic tool of the urban development and expansion policy.
Paragraph 2 - Urban property performs its social function when it meets the fundamental requirements for the ordainment of the city as set forth in the master plan.
Paragraph 3 - Expropriation of urban property shall be made against prior and fair compensation in cash.
Paragraph 4 - The municipal government may, by means of a specific law, for an area included in the master plan, demand, according to federal law, that the owner of unbuilt, underused or unused urban soil provide for adequate use thereof, subject, sucessively, to:
Article 183.An individual who possesses an urban area of up to two hundred and fifty square meters, for five years, without interruption or opposition, using it as his or as his family's home, shall acquire domain of it, provided that he does not own any other urban or rural property.
Paragraph 1 - The deed of domain and concession of use shall be granted to the man or woman, or both, regardless of their marital status.
Paragraph 2 - This right shall not be recognized for the same holder more than once.
Paragraph 3 - Public real estate shall not be acquired by prescription.
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