DECREE NO. 7,249, OF August 2, 2010

Disposes on the execution of the Septuagineteenth Additional Protocol to the Economic Supplementation Agreement # 18 (70PA-ACE18), signed between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, on May 19, 2010.

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

Whereas, upon the Treaty of Asuncion, the States Parties have decided to constitute a Common Market;

That Article 12 of the CMC Decision No. 69/00 has disposed that States Parties will be able to establish Common Special Import Regimes for MERCOSUR, including with the definitive internation on the territory of any of the States Parties, from the joint identification of sectors or products to be contemplated with specific trade policies;

That the harmonisation of Regimes Import Specials is a key instrument for strengthening the Customs Union and for the integration of productive chains in the region;

That the CMC Decision No. 02/06 approved the inclusion of the science and technology sector among those who will be the subject of the elaboration of Common Special Import Regimes; and

That the development of research activities requires a broad access to inputs and materials intended for this purpose,

DECRETA:

Art. 1º The Septuagineteenth Additional Protocol to the Economic Supplementation Agreement number 18 of the Latin American Association for Development and Integration (ALADI), which incorporates the Agreement to Decision No. 40/08 of the Common Market Council (CMC), on "Common Import Conditions of Goods Destined for Cyber And Technological Research", apensed by copy to this Decree, will be executed and fulfilled as entirely as in it contains.

Art. 2º This Decree comes into effect on the date of its publication.

Brasilia, August 2, 2010; 189º of the Independence and 122º of the Republic.

LUIZ INACIO LULA DA SILVA

Ruy Nunes Pinto Nogueira

ECONOMIC COMPLEMENTATION AGREEMENT N ° 18 CONCLUDED BETWEEN ARGENTINA, BRAZIL, PARAGUAY AND URUGUAY

Septuagineteenth Additional Protocol

The Plenipotentiaries of the Argentine Republic, of the Republic Federative of Brazil, the Republic of Paraguay and 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 Association of Integration (ALADI).

HAVING IN VISTA the Eighteenth Additional Protocol to ACE-18 and Resolution GMC No. 43/03.

CONVECTS IN:

Article 1 °-Incorporate to the Economic Supplementation Agreement N ° 18 a Decision N ° 40/08 of the Common Market Council concerning?Common Regime of Import of Goods Destined for Scientify and Technological Research (Repeal of Dec. CMC No. 36/03?), which is listed as annex and integrates the present Protocol.

Article 2º-This Protocol will enter into force 30 days after the notification of the General Secretariat of the ALADI to the signatory countries of which it received the communication from the MERCOSUR Secretariat informing 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 a notification, as far as possible, on the same day it receives the communication from the Secretariat of MERCOSUR.

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

IN FÉ DO WHY, the respective Plenipotentiaries sign the gift Protocol in the city of Montevideo, to the nineteen days of the month of May two thousand and ten, in an original in the Portuguese and Spanish languages, being both texts being equally valid. (a.:) By the Government of the Argentine Republic: María Cristina Boldorini; By the Government of the Federative Republic of Brazil: Regis Percy Arslanian; By the Government of the Republic of Paraguay: Emilio Giménez; By the Government of the Eastern Republic of Uruguay: Gonzalo Rodríguez Gigena.

ANNEX

MERCOSUR ul/cmc/dec. No. 40/08

COMMON IMPORT REGIME OF GOODS DESTINED FOR SCIENTIFIC AND TECHNOLOGICAL RESEARCH

(REVOCATION OF THE DEC. CMC N ° 36/03)

HAVING IN VISTA: The Treaty of Asuncion, the Black Gold Protocol and Decisions No. 69/00, 36/03, and 02/06 of the Common Market Council, and the N ° 17/99 Guideline of the Trade Commission of MERCOSUR;

XX_ENCODE_CASE_One CONSIDERING:

Which, upon the Treaty of Assumption, the States Parties have decided constitute a Common Market;

That the article 12 of the CMC Decision N ° 69/00 has laid down that States Parties will be able to establish Common Special Import Regimes for MERCOSUR, including with the definitive internation on the territory of any of the States Parties, from the Joint Identification of sectors or products to be contemplated with specific trade policies;

That the harmonisation of Special Import regimes is a key tool for strengthening the Customs Union and for the integration of productive chains in the region;

That the CMC Decision N ° 02/06 approved the inclusion of the science sector and technology among those who will be the subject of the elaboration of Common Special Import Regimes; and

That the development of the research activities requires a wide access to inputs and materials intended for this purpose,

The COUNCIL OF THE COMMON MARKET

DECIDE:

Art. 1 °-Imports of goods effected by the beneficiaries referred to in Article 2º of this Decision shall be exempt from the payment of the Common External Tariff (Import Tax), once the remaining requirements set out in the present are met Decision.

Art. 2 °-Are beneficiary of this Decision the non-profit legal persons who develop effective activities of execution, coordination or fomenting scientific or technological research and are recognized as such by the authorities competent of each country, in the conditions and limits set out in the national laws.

Any of the States Parties, when considering convenient, will be able to extend the predicted benefits regime in the present Decision to scientists and researchers, provided that they are recognized as such by the competent authorities, and shall report such decision to the Trade Commission of MERCOSUR (CCM).

Art. 3 °-In order to be able to enjoy the benefits set out in this Decision, the beneficiaries should register in a record that the competent authorities of each country should establish for that purpose.

The procedures and the documentation required for obtaining or renewal of the registration will be defined in accordance with the internal legislation of each State Party.

The denigration of enrollment, its cancellation or suspension imply the impossibility of accessing the benefits established in the this Decision.

Art. 4 °-The exemption set out in Article 1º comprises the import of live animals and products from the animal and plant kingdom, raw materials, semi-elaborate products, machinery, appliances, instruments, equipment, their spare parts and accessories.

At the discretion of each State Party, there could be established global quantitative limitations for the import of goods in the amparo of this regime. The eventual adoption of this limitation should be communicated in an informative title to CCM.

Art. 5 °-Stay excluded from the exemption provided for in this scheme for imports of goods intended for any activity that is not set up as scientific and technological research.

Ficam excluded from this Decision, likewise, the imports of new and used automotive vehicles.

Art. 6 °-The regime set out in this Decision does not exonerate the imports of the controls concerning radioactive materials, explosives, living beings or from any other specific surveillance.

Art. 7 °-The goods that are imported and are exempted by the exemption provided for in this Decision shall be intended solely for scientific or technological research to be carried out by the beneficiaries, and shall not be able to be transferred before compliance with the period of five years, counted from the date of their customs landings, save upon payment of the taxing and the cableable fees.

The willing in this article does not apply to goods transferred to any title to other bodies and entities benefitted by the present regime under Article 2º, where the goods continue to be used exclusively for scientific or technological research, in the terms provided for in this Decision.

Each State Party will maintain a system of prior authorization of the imports, to the amparo of this regime, in order to guarantee its correct destination.

Art. 8 °-The infractions to the standards of this Decision obliges the beneficiaries to the payment of the exempt tributes, without prejudice to the tax, criminal and administrative penalties that are relevant, which they may contemplate to the exclusion of the registration provided for in Article 3 for a minimum term of 3 years.

Art. 9 °-Each State Party shall maintain a mechanism for the control and monitoring of the complaints in order to determine due compliance with the standards set out in this Decision and too many supplementary norms.

In function of the request of some State Party or of determination of CCM, the State Party responsible should present at the CCM meeting justifying the adopted control measures.

Art. 10-The competent authorities of each State Party shall maintain a record of the imports permitted in the amparo of this Decision. This information will be presented at the CCM before the June 30 of the year following that to which they correspond the statistics.

The information obtained in the amparo of this article will be subject to the obligations regarding the secrecy of the information provided in the national legislations. The States Parties will be able to request at any time, within the framework of the consultation mechanism established by the CCM Guideline No. 17/99, information on the implementation of this Decision, especially with regard to the obtaining or revalidation of the record provided for in Article 3º.

Art. 11-States Parties shall be able to set out the regulatory standards they deem necessary for the implementation of the benefits provided for in this Decision, as well as those necessary to prevent and combat the existence of illicit.

Art. 12-States Parties shall notify the CCM of the supplementary legislation related to the application of this Decision, the organs responsible for the application of this Decision and their subsequent modifications.

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

Art. 14-Revoke the CMC Decision N ° 36/03.

Art. 15-This Decision is to be incorporated into the legal planning of the States Parties before 31 /XII/09.

XXXVI CMC-Salvador, 15 /XII/08