Trade and Industry Department Commerical Information Circular No. 416/2010

Commercial Information Circulars

24-hour hotline : 23 922 922

Ref : EIC 411/3, EIC 413/3, EIC 429/3, EIC 432/3

9 September 2010

Dear Sirs,

Commercial Information Circular No. 416/2010

MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) :
Elimination of Double Tariffs of Certain Imported Goods

The Southern Common Market (MERCOSUR), which includes Argentina, Brazil, Paraguay and Uruguay, has agreed to eliminate double tariffs of certain goods when they are imported into a MERCOSUR member country and then shipped to another MERCOSUR country for final consumption.

The elimination of double tariffs of imports will take place in three stages as summarised below:
First stage

By 1 January 2012, MERCOSUR will eliminate the double tariffs of goods subject to the Common Tariff Policy (Política Arancelaria Común/PAC) of the MERCOSUR that are imported from third countries and circulate without transformation within the Mercosur member countries.

Goods exempted from the Common External Tariff (Arancel Externo Común/AEC) under national and sectorial lists of exceptions and special import regimes will continue to be subject to double tariffs during the first stage of implementation.

Tariffs will be collected by the customs authorities in the first port of importation, which for goods in transit is the port of final destination.
Second stage
The second stage will begin when MERCOSUR defines the treatment of goods that simultaneously incorporate inputs that comply with the PAC and inputs imported under special import regimes and/or subject to promotional regimes, as well as goods produced under the coverage of promotional regimes that incorporate inputs which comply with the PAC.

This stage incorporates the goods imported from third countries that have complied with the PAC, which AEC is 2% or 4% and in circulation within the MERCOSUR after their incorporation into a production process.

This stage will be implemented by 1 January 2014.
Third stage
By 1 January 2019, MERCOSUR will eliminate the double tariffs of goods imported from third countries not included in the first and second stages which are incorporated into a production process and subject to the PAC.

For details, traders are advised to consult their importers in MERCOSUR member countries and/or the relevant MERCOSUR notice (No. 10/2010) (in Spanish or Portuguese) which can be retrieved from the website at
http://200.40.51.218/SAM/GestDoc/PubWeb.nsf/Normativa?ReadForm&lang=ESP&id=
264ED8E03094C7D083257776006C50A1.

ENQUIRIES

For enquiries about the content of this circular, please contact Miss S Y TANG at telephone number 2398 5405.

Yours faithfully,

(Larkin LEE)
for Director-General of Trade and Industry

Electronic services for Production Notification, Certificate of Origin, Textiles Notifications, and Cargo Manifests enable traders to lodge/make the relevant applications directly through their office computer faster and easier. Tradelink Electronic Commerce Ltd runs services for all the above documents. Brio Electronic Commerce Ltd provides services for Cargo Manifests and Certificate of Origin. Global e-Trading Services Ltd provides services for Cargo Manifests.
Please call the service providers for enquiries on their services:

Brio Electronic Commerce Limited (Tel: 2111 1288)
Global e-Trading Services Limited (Tel: 8109 1820)
Tradelink Electronic Commerce Limited (Tel: 2599 1700)

Note :

While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.