DECREE NO. 5,929, OF October 13, 2006.

Disposes on the execution of the Fifty Third Additional Protocol to the Economic Supplementation Agreement no 18, between 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 Third 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;

DECRETA:

Art. 1st The Qüinquagumth Third Additional Protocol to the Economic Supplementation Agreement no 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 in it contains.

Art. 2nd Decree comes into force on the date of its publication.

Brasilia, October 13, 2006; 185th of the Independence and 118th of the Republic.

LUIZ INÁCIO LULA DA SILVA

Celso Luiz Nunes Amorim

This text does not replace the one published in the DOU of 10/16/2006

ECONOMIC COMPLEMENTATION AGREEMENT No 18 CELEBRATED BETWEEN

ARGENTINA, BRAZIL, PARAGUAY, AND URUGUAY

Sequentieth Third Additional Protocol

The Plenipotentiaries of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay, accredited by their respective Governments, second powers heard 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,

CONVVE IN:

Article First-Incorporate to the Economic Supplementation Agreement No 18 a Guideline No 04/04 of the MERCOSUR Trade Commission concerning?Accumulation Total Source Intra-MERCOSUL?, which is listed as annex and integrates the present Protocol.

Article 2nd-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 Registry of the MERCOSUR, informing the incorporation of the MERCOSUR standard and its corresponding Additional Protocol to the legal ordinances of the four States-Part of MERCOSUR.

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

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

IN FÉ THAN, THE RESPECTIVE Plenipotentiaries sign this Protocol in the 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 Eastern Republic of the Uruguay: Gonzalo Rodríguez Gigena.

MERCOSUR-CCM/DIR NO 04/04

TOTAL ACCUMULATION OF INTRAMERCOSUL ORIGIN

HAVING IN VISTA: The Treaty of Asuncion, the Black Gold Protocol, and the Decision No 1/04 of the Common Market Council.

CONSIDERING:

That it makes itself necessary to regulate the total source accumulation provided for in the 2nd paragraph of Chapter III of CMC Decision No 1/04.

That the implementation of a mechanism with these characteristics will contribute substantially to the deepening of the integration process and a better positioning of MERCOSUR in the negotiations with third countries.

The TRADE commission

APPROVES THE FOLLOWING GUIDELINE:

Art. 1-States Parties shall adjust to the terms provided for in this Guideline to make jus to the total accumulation of origin set out in paragraph 1 of the Article 7th of Dec. CMC No 1/04.

Art. 2-A Total accumulation of origin implies that all the operations carried out in the territory of the States Parties of MERCOSUR to the elaboration of a product will be considered for the determination of the origin of the final product.

Art. 3-For the determination of the origin of the final product will be taken into account all the regional aggregate materials and value incorporated in the territory of the States Parties.

Art. 4-The present shall not exonerate, by itself, the payment of the Common External Tariff (TEC) nor does it generate the restitution of the same by the importation of the nonoriginating intermediary materials drawn up by any of the States Parties and incorporated into the product which falls into this mechanism.

Art. 5-Notwithstanding the one set out in the preceding article, the joint application of this mechanism with other import regimes of the States Parties shall not be excluded.

Art. 6-For the purposes of the provisions of Article 1, the final producer of the goods shall apply to the "Declarations of Use of Materials" which shall be provided by the producers of the materials used in the elaboration of the final product.

In the case of products that are exported on a regular basis, whenever the process and the component materials are not changed, the Declaration of Use of Materials may have a validity of 180 days, counted as of the date of its issuance.

The Declaration of Use of Materials should contain the following data:

a) Company or social reason;

b) Legal domicile and industrial plant;

c) Denomination of the material to be exported and position NCM/SH;

d) Value FOB;

e) Description of the productive process;

f) Demonstrative Elements of the components of the product, indicating:

i) Materials, components and / or parts or national parts;

ii) Materials, components and / or parts eparts originating from other States Parties, indicating provenance:

-Codes NCM/SH;

- CIF value in US dollars;

- Porcentagens of participation in the final product;

iii) Materials, components, and / or parts and parts originating from third countries:

- Codes NCM/SH;

- CIF Value in US Dollars;

- Porcentagens of participation in the final product.

The description of the product included in the declaration should coincide with the one that corresponds to the Common Market Nomenclature (NCM/SH) code and with the one listed in the tax note commercial. Additionally the usual description of the product can be added.

Art. 7-For the issuance of the MERCOSUR Origin Certificate, the exporter and / or producer should submit before the corresponding certifying entity / the "Materials Utilization Statements" that correspond to the final product jointly with the Declaration Juror of Origin disposed of in Article 15 of the CMC Decision No 1/04.

Art. 8-A or the Materials Utilization Declarations set out in Article 5th shall remain archived in the certifying entity for a period of 2 years, counted from the date of issue of the Certificate of Origin.

Art. 9-Request the States Parties to instruct their respective Representations to the Latin American Integration Association (ALADI) so that they protocol the present Guideline on the milestone in the 43/03.

Art. 10-The provisions adopted in this Guideline shall apply from the entry into force of the Dec. CMC No 1/04.

Art. 11-States Parties should incorporate the present Guideline to their national legal ordinances before 1/X/04.

IV CCM EXT. -Buenos Aires, 22 /VI/04