Southern Common Market (MERCOSUR)
DECISIONS OF THE COUNCIL OF COMMON MARKET
MERCOSUR/CMC/DEC. Nš 06/94: MERCOSUR ORIGIN SYSTEM
Art. 10 of the Treaty of Asuncion, Decisions No 1/93 and No 13/94 of
the Common Market Council, and Resolution No 39/94 of the Common Market
existence of products exempt from the Mercosur Common External Tariff after I
January 1995 necessitates the implementation of clear, predictable Rules of
Origin to facilitate the flow of intra-zonal trade;
is also extremely important to ensure that the aforementioned rules do not,
of themselves, create unnecessary obstacles to said flow of trade;
as not to extend the differential treatment to third countries, the Mercosur
Party States must adopt definite, clear rules of origin that will make it
Possible to determine certifiably the nationality of the products exchanged.
THE COMMON MARKET GROUP
Article 1 - To
approve the Regulations pertaining to the MERCOSUR Origin System, included as
an Annex to this Decision.
Article 2 - Once
the lists of exceptions have been approved by the Common Market Group, the
Party States shall agree, at a joint meeting of the Nos. 1 and 10 Working
Subgroups, on the origin requirements that must be met by products affected
by this system, comprising the different annexes relating thereto.
Article 3 - To
stipulate that the Trade Commission shall be the body responsible for the
administration of this System.
RULES OF ORIGIN OF GOODS IN THE COMMON
MARKET OF THE SOUTH
DEFINITION OF THE REGULATIONS
Regulations define the MERCOSUR rules of origin, the provisions, and the
administrative decisions to be applied by the State Parties for purposes of:
1) Classification and
determination of the native product;
of certificates of origin; and
3) Penalties for forging or falsification of
certificates of origin, or non-compliance with the verification and control
SCOPE OF APPLICATION
provisions of these Regulations shall be applied in the following cases:
- Products in the process of
convergence to the Common External Tariff;
- Products subject to the Common External
Tariff, but with input, parts, pieces, and components in the process of
convergence, except in cases wherein the total value of the extra-zonal input
does not exceed 40% of the total FOB value of the end product;
- Different trade policy measures applied by
one or more Party States;
- In exceptional cases to be decided by
the Mercosur Trade Commission.
GENERAL ORIGIN SYSTEM
be considered native are:
a) Products totally made in the territory of
any of the State Parties when materials solely and exclusively native to the
State Parties are used in making them;
b) Products from the animal, mineral, and
plant kingdoms, including those obtained from hunting and fishing, extracted,
harvested, or collected, born, and raised in their territory, or in their
territorial or patrimonial waters and exclusive economic zones, and products
of the sea extracted outside their territorial or patrimonial waters and
exclusive economic zones by vessels with their flag, or chartered by
companies established in their territory, and processed in their economic
zones, even if they have been subjected to primary packing and conservation
processes required for their marketing that do not entail any change in the
c) Products in the preparation of which
materials not native to the State Parties are used, when they result from a
transformation process carried out in their territory, which lends them a new
individuality, characterized by the fact that they are categorized in the
MERCOSUR Common Classification in a position different from that of the
aforementioned materials, except in cases wherein the criterion of a jump in
tariff position plus 60% added value is deemed necessary.
products resulting from operations or processes carried out in the territory
of a State Parties whereby they acquire the final form in which they will be
marketed shall not be considered native when, in those operations or
processes, materials or inputs exclusively non-native to the State Parties
are used, and they consist only of mountings, or assemblies, packing,
division into lots or volumes, selection, classification, marking,
composition of stocks of goods, or mere dilutions in water or another
substance that does not alter the characteristics of the product as native,
or other equivalent operations or processes;
d) In cases wherein the requirement stipulated
in section c) cannot be met, because the transformation process carried out
does not entail a change in position in the MERCOSUR Common Classification,
it shall suffice if the CIF port of destination or CIF maritime port value of
the input from third countries does not exceed 40% of the FOB value of the
weighing materials native to third countries for the State Parties without a
seacoast, the storage facilities and free trade zones granted by the other
Party States shall, be considered a port of destination when the materials arrive
by an ocean route.
e) Products resulting from assembly or
mounting operations conducted in the territory of a MERCOSUR country, using
materials native to third countries, when the CIF port of destination value
or CIF maritime port value of those materials does not exceed 40% of the FOB
f) Products that meet the specific
requirements to be established according to the procedure stipulated in Art.
2 of Res. [number missing] /94 of the GMC. Capital goods shall have an origin
requirement of 80% of the value added within MERCOSUR.
MERCOSUR Trade Commission may establish specitic origin requirements in the
future, in an exceptional and justified manner, and they shall take
precedence over the general criteria. It may also reconsider the established
determining the specific origin requirements cited in Article 4, and in
reconsidering those already established, the MERCOSUR Trade Commission shall
take the following items as a basis, individually or jointly:
I. Materials and other inputs used in
i) Preponderant raw material or that lending
the product its essential characteristics, and;
ii) Principal raw materials.
i) Part or piece lending the product
its final characteristic;
ii) Principal parts or pieces, and
iii) Percentage of the parts or pieces
in relation to the total value.
c) Other input.
II. Transformation or manufacturing process
proportion of the value of the materials imported from third countries in
relation to the total value of the product, resulting from the valuation
procedure agreed upon in each case.
In exceptional cases, when the specific
requirements cannot be met because of the occurrence of circumstantial
problems of supply, availability, technical specifications, or delivery time
and price, materials not native to the State Parties may be used.
In the situation specified in the
preceding paragraph, the qualified entities of the exporting State Parties
shall issue the corresponding certificate, which must be accompanied by a
declaration of necessity, issued by the competent government authority,
informing the importing State Parties and the Trade Commission of the
background and circumstances justifying the issuance of the aforementioned
If there is a constant, repetition of
these cases, the exporting State Parties or the importing State Parties shall
report this situation to the Trade Commission for purposes of a revision of
the specific requirement.
The criterion of maximum use of
materials and other inputs native to the Party States may not be considered
for setting requirements that entail an imposition of materials or other
input from the aforementioned Party States when, in their judgment, these
materials or inputs do not meet the appropriate requirements of supply,
quality, and price, or are not adapted to the industrial processes or applied
the request of any State Parties, the Trade Commission may authorize the
revision of the specific origin requirements stipulated in Articles 3 to 5.
The requesting State Parties must provide and give grounds for the
requirements applicable to the product or products involved.
fulfill the origin requirements, materials native to the territory of any of
the MERCOSUR countries
incorporated into a particular product shall be considered native to the
territory of the latter.
purposes of this system, the expression "materials" shall be
interpreted as covering the raw materials, inputs, intermediate products, and
parts and pieces used in making the product.
purposes of this system, the expression "territory" covers the
territory of the MERCOSUR State Parties, including their territorial and
patrimonial waters located within their geographical boundaries.
native goods to benefit from preferential treatment, they must have been
shipped directly from the exporting State Parties to the importing State
Parties. For this purpose, direct shipment is interpreted as:
a) Goods transported without passing through
the territory of any country not a participant in MERCOSUR;
b) Goods transported in transit through one
or more non-participating countries, with or without transshipment or
temporary storage, under the surveillance of a competent customs authority in
such countries, provided that:
i) the transit is justified for geographical
reasons or considerations relating to transport requirements;
ii) they were not destined for commerce, use,
or employment in the country of transit;
iii) during the transport or storage, they do not
undergo any operation other than those of loading and unloading, or handling,
to keep them in good condition or to ensure their conservation.
c) The intervention of operators from another
country may be allowed, provided that, adhering to the provisions in a) and
b), there is a commercial invoice issued by the intervening entity and a
Certificate of Origin issued by the authorities of the exporting State
issuance of the certificates of origin shall be the responsibility of
official departments, to be named by the State Parties, which may delegate
the issuance of certificates of origin to other public agencies or entities
on a higher level of class, operating in a national, state, or provincial
jurisdiction. An official department in each Party State shall be responsible
for controlling the issuance of certificates of origin.
Party State shall notify the Trade Commission of the pertinent official
delegating the authority to issue certificates of origin, the government
departments shall take into account the representative status, technical
capacity, and suitability of the entities
of higher rank for providing such service.
State Parties shall notify the Trade Commission of the
names of the official departments and entities of higher rank qualified to
issue certificates of origin, with the registration and facsimile of the
signatures of the officials accredited for that purpose.
DECLARATION, CERTIFICATION, AND
VERIFICATION OF ORIGIN
certificate of origin is the document permitting verification of the origin
of the goods, and must accompany them in all cases subject to the application
of origin rules, according to Article 2 of this System, except in the cases
specified in Article 4. This certificate must meet the following
- Be issued by qualified certifying
- Identify the goods to which it relates;
- Indicate unequivocally that the goods to
which it relates are native to the State Party
concerned, based on the terms and provisions of these Regulations.
application for a Certificate of Origin must be preceded by a sworn
declaration, or other legal instrument with equivalent effect, signed by the
final producer, which shall indicate the characteristics and components of
the product, and the processes for its manufacture, containing the following
required information as a minimum:
a) Company or firm name
Legal domicile and that of the industrial
c) Designation of the material to be exported,
and NCM/SH position
d) FOB value
e) Description of the productive process
f) Evidence demonstrating the components of
the product, indicating:
i) National materials, components, and/or
parts and pieces;
ii) Materials, components, and/or parts and
pieces native to other State Parties, indicating origin:
- NCM/SH codes - CIF value in American
dollars - Percentages of participation in the end product
iii) Materials, components, and/or parts and
pieces native to third countries:
- NCM/SH codes - CIF value in American
dollars - Percentage of participation in the end product
The description of the product included
in the declaration accrediting the fulfillment of the origin requirements
stipulated in these regulations must coincide with that corresponding to the code of the Common Market
Nermenclature (NCM/SH) with which it is registered on the commercial invoice,
as well as in the Certificate of Origin accompanying the documents submitted
for its customs clearance. In addition, the common description of the product
may be included.
aforementioned declarations must be submitted sufficiently in advance for
each application for certification. In the case of products or goods
regularly exported, provided that the process and the component materials
have not been changed, the declaration may have a validity of 180 days,
counted from the date of its issuance.
Certificates of Origin issued by the qualified entities must maintain a
correlative order number, and remain filed by the certifying entity for a
period of 2 (two) years after the date of issue. These files also must
include all the relevant background information on the certificate issued, as
well as that relating to the declaration required according to the
stipulations in the preceding article.
qualified entities shall keep a permanent record of all the certificates of
origin issued, which must contain, as a minimum, the certificate number, its
requester, and the date of its issuance.
of origin shall have a validity period of 180 (one hundred eighty) days, and
must be issued exclusively on the annexed form. They shall lack validity if
they are not filled out in all their spaces.
Certificates of Origin must be issued, at the latest, 10 (ten) business days
after the final shipment of the goods covered by them.
the submission of the certificate of origin based on the conditions
stipulated in these Regulations and their complementary rules, the competent
authorities may, in the event of doubts, with grounds, regarding the
authenticity or veracity of the certificate, require of the official
department responsible for verifying and controlling certificates of origin
additional information in order to dispel the doubt.
importing State Parties shall not detain the procedures to import the goods
involved. Meanwhile, it may, in addition to requesting the pertinent
additional evidence, adopt measures that it deems necessary to guarantee its
official department responsible for verifying and controlling Certificates of
Origin must provide the information requested through application of the
provisions of Article 18 within a period not exceeding 15 (fifteen) business
days, counted from the date of receipt of the respective request. The information
shall be confidential in nature and shall be used exclusively to clarify such
cases wherein the information requested is not provided or is unsatisfactory,
the authorities of the country importing such goods may order preventive
suspension of the entry of new transactions relating to products of that
company, or of transactions linked with the certifying entities involved,
including those that are undergoing or involved in customs procedures. The
authorities of the importing country must immediately submit to the Mercosur
Trade Commission the background information on the case, and the latter must
arbitrate the final decision within a period of 20 (twenty) consecutive days.
purposes of verifying whether a good is native to one of the State Parties, the
importing State Parties, through the competent authority of the exporting
State Parties, may:
a) send written questionnaires to exporters
or producers in the territory of another State Parties;
b) request, in duly justified cases, that
this authority take the pertinent action making it possible to pay
verification visits to the facilities of an exporter, to examine the
production processes and facilities used in the production of the good in
question, as well as other action that will help to verify the origin;
c) engage in other procedures agreed upon by
the State Parties.
this purpose, the State Parties promise to facilitate the execution of
reciprocal External Audits.
it is found that the certificates issued by a qualified entity do not conform
to the provisions contained in these Regulations, or to their
complementary rules, or when falsification or forging of certificates of
origin is verified, the country receiving the goods covered by said certificates
may adopt the penalties that it deems fitting to protect its fiscal or
entities issuing certificates of origin shall be jointly liable with the
applicant regarding the authenticity of the data contained in the Certificate
of Origin and in the declaration mentioned in Article 16, within the
authority delegated to them.
liability may be excused when an issuing entity claims it issued the
certificate of origin on the basis of false information supplied by the
applicant, which is beyond its usual control practices for which it is
falsity is found in the declaration provided for the issuance of a
certificate of origin, without precluding the pertinent criminal penalties
based on the legislation of its country, the exporter shall be suspended for
a period of 18 (eighteen) months from engaging in operations within the scope
of MERCOSUR. Entities qualified to issue certificates that have done so under
the conditions established in this Article may be suspended from issuing new
certificates for a period of 12 (twelve) months.
the event of recidivism, the final producer and/or exporter shall be
permanently disqualified from operating in MERCOSUR, and the entity
permanently discredited from issuing certificates of origin within the area
of the same market.
forging or falsification of certificates is confirmed in any of their parts,
the competent authorities of the issuing country shall disqualify the final
producer and/or exporter from operating within the scope of MERCOSUR. This
penalty may be extended to the one or more certifying entities when the
country's competent authorities so decide.
Party States agree that the rules contained in these Regulations and their
Annexes, concerning both the General System and the requirements in Annexes I
and II, shall be the minimum ones for the tariff universe included in
commercial and preferential negotiations with third countries.