Brazil incorporates Mercosur rules on Special Customs Regimes

February 02, 2024

Decision No. 10/21 of the Mercosur Common Market Council – which authorizes the application of the special import regimes of Drawback and temporary admission for intra-zone trade, i.e. trade between Argentina, Brazil, Paraguay, and Uruguay, until the end of 2030 – was incorporated into the Economic Complementation Agreement Nº 18 (ACE 18), which is the free trade agreement that underpins Mercosur in the scope of ALADI.


The incorporation of this Decision was already the subject of the 215th Additional Protocol to ACE 18, but it had not yet been ratified by the Brazilian Executive Branch, which did so by means of Decree No. 11,896/2024, of January 23, 2024.


In the specific cases of Paraguay and Uruguay, if they do not use such special regimes, they may apply a 0% tax rate to the import of agricultural inputs, in accordance with the list of tariff items to be notified to the Mercosur Trade Commission.


In addition, Paraguay's differentiated regime for the import of raw materials with a tax rate of 2% was also extended until December 31, 2030.

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