New rules on the Mercosur Origin Regime have been approved

July 06, 2023

On July 4, 2023, new rules of the Mercosur Origin Regime (ROM) were approved during the bloc's summit.


The rules of origin aims to ensure that goods circulate between the four economies without the incidence of import duty, when originating from the Mercosur member countries (Brazil, Argentina, Paraguay, and Uruguay).


The new text of the agreement signed after four years of negotiations adopted international best practices, simplified the current rules, and made the mechanism for verification and control of origin more agile while improving the conditions for the competitiveness of Brazilian companies in the international market.


With the ROM modifications, the limit of imported inputs in a product of Brazilian origin increased by 5%. With this, a product must have a maximum of 45% of raw materials purchased from a country outside Mercosur and 55% of national or regional origin to be considered national. This flexibility applies to 100% of industrial products and 80.5% of agricultural products, while the other 19.5% had the percentage of raw material maintained at 40%.


Argentina has the same rule as Brazil. Paraguay has a 60% limit on imported inputs, and Uruguay has a 50% limit.


Another change brought by the new Regime is the simplification of the proof of origin. Now, companies trading between the bloc's countries can make a self-declaration of origin, dispensing with the need of a Certificate of Origin issued by qualified entities. With the self-declaration, products can benefit from tariff reduction or elimination in exports between the bloc's member countries, and goods can circulate between the four economies without the incidence of import duties. This model is present in other trade agreements, such as the European Union or the European Free Trade Association (EFTA).


However, the Certificate of Origin is still valid. The hybrid model will be adopted and it will  be able to meet the needs of different types of Brazilian producers and exporters, especially small and medium-sized companies that need help with proof of origin.


These measures represent advances to guarantee agility and cost reduction in international trade activities.


Newsletter written by partner Vera Kanas and associates Isabelle Ruiz Guero and Amanda Mitsue Zuchieri, from TozziniFreire Advogados' International Trade practice.

Publication produced by our International Trade

Sign up for our newsletter to get up to speed on relevant legal matters