DECREE NO. 5,944, OF October 26, 2006.

Disposes on the execution of the Fifty Additional Protocol to the Economic Supplementation Agreement no 18, among the Governments of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay, of March 28, 2006.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that gives it the art. 84, inciso IV, of the Constitution, and

Whereas the Treaty of Montevideo of 1980, which created the Latin American Integration Association (ALADI), firmed by Brazil on August 12, 1980, and approved by the National Congress, through the Legislative Decree no 66, of November 16, 1981, provides for the modality of Complementation Agreement Economic;

Considering that the Plenipotentiaries of the Federative Republic of Brazil, of the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed, in Montevideo on November 29, 1991, the Economic Supplementation Agreement no 18, between the Governments of the Republic Federative of Brazil, the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay, incorporated into Brazilian domestic law by the Decree no 550, of May 27, 1992;

Whereas the Plenipotentiaries of the Federative Republic of Brazil, of the Argentine Republic, of the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed, in Montevideo, on March 28, 2006, the Fifty Additional Protocol to the Economic Supplementation Agreement no 18, between the Governments of the Republic Federative of Brazil, the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay;

DECRETA:

Art. 1st The Fifty Additional Protocol to the Economic Supplementation Agreement in the 18, between the Governments of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay, apensed by copy to the present Decree, will be executed and fulfilled as entirely as it contains.

Art. 2nd This Decree goes into effect on the date of its publication.

Brasilia, October 26, 2006; 185th of Independence and 118th of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

This text does not replace the published one in the DOU of 10/27/2006

ECONOMIC COMPLEMENTATION AGREEMENT No 18 CONCLUDED BETWEEN ARGENTINA, BRAZIL, PARAGUAY AND URUGUAY

Sequentieth Additional Protocol

The Plenipotentiaries of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and of the Eastern Republic of Uruguay, accredited by their respective Governments second powers bestowed in good and due form, deposited opportunely at the General Secretariat of the Latin American Integration Association (ALADI),

TAKING INTO ACCOUNT the Eighteenth Additional Protocol to the Economic Supplementation Agreement No 18 and the GMC Resolution No 43/03,

DECK IN:

Article First-Incorporate to the Economic Supplementation Agreement No 18 a Decision No 31/04 of the Common Market Council on the?Normative for the approval and incorporation of the modifications of the Common Nomenclature of MERCOSUR and its corresponding Common External Fee?, which is listed as Annex and is part of this Protocol.

Article 2nd-The present Protocol will enter into force thirty days after the notification of the General Secretariat of the ALADI to the signatory countries that it has received the communication from the MERCOSUR Secretariat regarding the incorporation of the MERCOSUR standard and its corresponding Additional Protocol to the legal ordinances of the four States Parties to MERCOSUR.

The General Secretariat of ALADI should make such notification, if possible, on the same day in that receiving the communication from the MERCOSUR Registry.

Article 3rd-From the entry in vigour of this Protocol will be repealed Articles 2 a to 4 of the XXV Additional Protocol to the ACE 18.

The General Secretariat of the ALADI will be depositary of this Protocol, of which it will send duly certified copies to the Governments of the signatory countries and to the Registry of the MERCOSUR.

IN FÉ OF WHAT, THE RESPECTIVE PLENIPOTENTIARIES SIGN THE PRESENT PROTOCOL IN city of Montevideo, at the twenty-eight days of the month of March of the year two thousand and six, in an original in the Portuguese and Spanish languages, being both texts being equally valid. (a.:) By the Government of the Argentine Republic: Juan Carlos Olima; By the Government of the Federative Republic of Brazil: Bernardo Pericás Neto; By the Government of the Republic of Paraguay: Juan Carlos Ramírez Montalbetti; By the Government of the Oriental Republic of Uruguay: Gonzalo Rodríguez Gigena.

MERCOSUR / cmc/dec. In 31/04

NORMATIVE FOR THE APPROVAL AND INCORPORATION OF THE NCM MODIFICATIONS AND THEIR CORRESPONDENT TEC

HAVING IN VISTA: The Treaty of Asuncion, the Ouro Preto Protocol, the Decisions No 7/94, 22/94, 23/00 and 20/02 of the Common Market Council and Resolutions No 60/00 and 26/01 of the Common Market Group.

XX_ENCODE_CASE_One CONSIDERING:

Que the Common External Tariff of MERCOSUR constitutes the central element for the consolidation of the Customs Union and the conformation of the Common Market.

That the full effectiveness of common commercial policy instruments is conditional on their effective application by all States Parties.

Which, by their specificity, the standards regarding Common External Fee are subject to own procedures and systematization of approval and incorporation, designed with the purpose of confirming its technical and legal feasibility.

That the proper application of the standards concerning the modification of Common External Fee presupposes uniformity and speed in the process of incorporating these standards to the ordinances legal of the States Parties.

THE COUNCIL OF THE COMMON MARKET

DECIDE:

Art. 1-The designs of standards relating to modifications of the Common Nomenclature of MERCOSUR and its corresponding Common External Tariff and High Tariff Ditames high to the decision-making bodies of MERCOSUR will not be subject to the procedure of consultation provided for in Articles 1 a to 3 of the CMC Decision No 20/02.

Art. 2-Without prejudice to the provisions of the article, the designs of standards relating to the Common Nomenclature of MERCOSUR and its corresponding Common External Tariff, may be submitted to national consultation procedures, in the States Parties that so require, while it lasts its analysis at the technical venue and before it is elevated to the decision-making body.

Art. 3-By incorporating, pursuant to Articles 40 and 42 of the Black Gold Protocol, the Resolutions modifying the Common Nomenclature of MERCOSUR and its corresponding Common External Tariff, approved over a semester, the States Parties shall establish the dates of July and 1st January each year, as it corresponds, for its entry into force in their respective national territories.

When the said Resolutions are approved, the deadlines set for its duration and prior incorporation should adjust the mentioned dates.

Art. 4-In exceptional cases, for justified reasons of economic order, the Common Market Group may, by request of any State Party, establish other dates for the entry into force and the prior incorporation into the respective territories of the States Parties.

Art. 5-The Guidelines approving Tariff Classification Ditames are to be incorporated within the time frame provided for.

Art. 6-The State Party which, on the dates set out in this Decision, or within the period established by the GMC in application of Article 4th, shall not have placed on internal force the said Resolutions, shall not be allowed to deny course, under preferential conditions, to imports of the remaining States Parties amped by valid Source Certificates based on disagreements of Nomenclature.

Art. 7-A The obligation of the textual and integral incorporation of the MERCOSUR standards, set out in Article 7 of the CMC Decision No 20/02, achieves only the Annex to these Resolutions, and does not prevent States Parties from including in their respective internal acts of embedding additional data of tax character. In no case, they will be able to change the aliquots and nomenclature set out in the MERCOSUR standard.

Art. 8-In cases where a State Party or the MERCOSUR Registry identifies errors in the standards referred to in this Decision, the MERCOSUR Registry shall draw up a proposal for correction and send it to the Pro Tempore Presidency, with copy to the remaining States Parties.

If, in a time limit of thirty (30) days, counted from the submission of the proposal of correction are not forwarded to the MERCOSUR Registry objections to the proposed correction, the Registry will refer to the Presidency Pro Tempore, with copy to the remaining States Parties, the corresponding draft standard for its approval at the following meeting of the relevant decision-making body.

It will not apply in these cases the established Erratas correction and Fe procedure in Articles 8, 9 and 10 of the GMC Resolution No 26/01.

Art. 9-When some State Party manifests, within the time limit noted in the preceding article, objections to the requested correction, the MERCOSUR Registry shall communicate the fact to the Pro Tempore Presidency, with copy to the remaining States Parties, in order that the subject matter included in the agenda of the Technical Committee No 1, with views to its review in that scope and subsequent forwarding to the relevant decision-making body.

Art. 10-Once approved by the competent decision-making body, the standard approving the corrections agreed upon in the terms of this Decision shall replace in the relevant the original standard object of corrections.

The provisions of this article shall not apply to cases in which the original standard is corrected in only one of the official languages of MERCOSUR. In this hypothesis, the act of incorporation of the new standard, which will be governed by the provisions of Article 12 of the CMC Decision No 20/02, will also imply the incorporation of the original standard to the internal legal planning of the corresponding States Parties.

Art. 11-Unless otherwise agreed upon by the States Parties, the effective entry date of the corrected standard should be identical to that of the standard object of correction.

If, initiated a correction process, this one does not complete before the date set out in the original norm for its entry into effect, States Parties will be able to specify a new date of entry into force for both standards.

When depending on the date of entry into force provided for in the original standard, it is not possible to wait for the next meeting of the relevant decision-making body for the approval of the corrections effected in accordance with the procedure laid down in the preceding Articles, the States Parties will be able to authorize their respective representatives diplomatic to initialed, in a single State Party, the draft standard with the corrections effected in accordance with the one set out in article 6 of the CMC Decision No 20/02.

Art. 12-Revoke the GMC Resolution No 60/00.

Art. 13-Request to the States Parties to instruct their respective Representations to the Latin American Integration Association (ALADI) to have protocolized this Decision, at the milestone of the Economic Supplementation Agreement No 18, pursuant to established in the GMC Resolution No 43/03.

XXVII CMC-Belo Horizonte, 16 /XII/04