Key Benefits:
DECREE NO. 5,078, OF May 11, 2004
Disposes on the execution of the Quadragth Eighth Protocol Additional 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 February 17, 2004.
THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that confers him 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 up by Brazil on August 12, 1980 and approved by the Congress National, by means of the Legislative Decree no 66, of November 16, 1981, provides for the modality of Economic Supplementation Agreement;
Whereas the Plenipotentiaries of the Federative Republic of Brazil, of the Republic Argentina, the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the 1980 Treaty of Montevideo, 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, 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 February 17, 2004, the Quadragth Eighth 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;
DECRETA:
Art. 1º The Quadragentieth Eighth Protocol Additional 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 Republic Eastern Uruguay, apensed by copy to the present Decree, will be executed and fulfilled as entirely as it contains.
Art. 2º This Decree comes into effect on the date of its publication.
Brasília, May 11, 2004; 183º of Independence and 116º of the Republic.
LUIZ INACIO LULA DA SILVA
Celso Luiz Nunes Amorim
The Plenipotentiaries of the Argentine Republic, of the Federative Republic 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),
TAKING INTO ACCOUNT the Eighteenth Additional Protocol to the Economic Supplementation Agreement N ° 18 and the GMC Resolution N ° 43/03,
DECK IN:
Article 1.-Incorporating the Economic Supplementation Agreement N ° 18 a Decision No. 34/03 of the Council of the Common Market for Capital Bens, which is listed as Annex and is part of this Protocol.
Article 2º.-The this Protocol shall enter into force thirty days after the notification of the General Secretariat of the ALADI to the signatory countries accusing the receipt of the communication of the MERCOSUR Secretariat regarding the incorporation of the MERCOSUR standard and its correspondent Additional Protocol to the legal ordinances of the four States Parties of MERCOSUR.
The General Secretariat of ALADI should make such notification, if possible, on the same day as receiving the communication from the MERCOSUR Secretariat.
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 to the Registry of MERCOSUR.
IN FÉ THAN, THE RESPECTIVE PLENIPOTENTIARIES SIGN THE GIFT Protocol in the city of Montevideo, at the seventeen days of the month of February of the year two thousand and four, 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: Bernardino Hugo Saguier Caballero; By the Government of the Eastern Republic of the Uruguay: Agustín Espinosa.
HAVING IN VISTA: The Treaty of Asunciation, the Black Gold Protocol and Decisions No. 07/94, 22/94, 69/00, 01/01, 05/01, 02/03 and 10/03 of the Common Market Council.
CONSIDERING:
That access to capital goods is essential to maintain the growth levels of the economies of the region.
That the implementation of the instruments of common commercial policy should take into consideration the existing differences between the productive sectors of the States Parties.
THE COMMON MARKET COUNCIL
DECIDE:
Art. 1? To approve the Common Regime of Non-Produced Capital Bens listed in Annex and form part of this Decision, which will enter into force in 1º January 2006.
Art. 2-Until December 31, 2005, whether they will be able to maintain the import regimes of capital goods currently beholsable in the States Parties, including the Exceptional Measures in the Tariff Scope provided for in the Decision CMC No. 02/03.
Art. 3-Authorize Paraguay to apply, until December 31, 2010, an aliquot of 2 (two)% for extrazone import of capital goods, with the exception of items included in the Common List of the Regime referred to in Article 1 of this Decision, which shall have the aliquot of 0 (zero)% in it provided for.
Art. 4-Authorising Uruguay to apply, between 1 ° January 2004 and December 31, 2010, an aliquot of 2 (two)% for extrazone import of capital goods, with the exception of the items included in the Common List of the Regime referred to in Article 1 of this Decision, which shall have the aliquot of 0 (zero)% in it.
Art. 5- The measures provided for in this Decision will be the subject of consultations between the States Parties and an annual assessment in order to examine their effects on trade flows and intrazone productive integration. To that end, States Parties should submit the required statistical information, by NCM item, as well as other supplementary information elements, within 60 days numbered from 1º January each year.
Art. 6-Proceed by examining the situation of the Capital Bens taking into account the goal of preserving the competiveness of the economies of the States Parties.
Art. 7-Request to the States Parties that instruct their respective Representations before the Latin American Integration Association (ALADI) to have protocolized this Decision in the framework of the Economic Compeleance Agreement No. 18, pursuant to the GMC Resolution No. 43/03.
Art. 8? This Decision is to be incorporated into the national legal ordinances of the States Parties up to 1/iii/0404.
XXV CMC-Montevideo, 15 /XII/03
Art. 1? It establishes a Common Import Regime of New Capital Bens, its parts, parts and components, classified in the codes identified as "BK" in the Common Nomenclature of Mercosur, not produced in the States Parties of MERCOSUR.
Art. 2-The State Party that intends to include a BK in the present regime shall submit its request to the Trade Commission of MERCOSUR in accordance with the following procedure:
a) requests should be forwarded in writing to the Pro Tempore Presidency, with copy to the remaining Coordinations of the CCM National Sections, in order that the CCM may decide, by Guideline, on the inclusion of the product in question in the Common List of Bens of Capital not produced in MERCOSUR. The solicitation should:
i) identify, in a sufficiently specific and detailed manner, the technical characteristics of the product in question, second form approved by the CCM for that purpose, with delivery of the catalogues corresponding technicians; and
ii) contain description of the product, with classification suggestion.
b) The goods included in that list will have their aliquots reduced, temporarily, to 0% (zero percent).
Art. 3-If at the meeting of the following CCM there is no consensus to include the said well in the Joint List for alleged existence of regional production or doubts as to the description or tariff framing of the good, the States Parties concerned may, upon prior notification to the remaining States Parties, include it in a National List of Non-Produced Capital Bens.
The goods included in the National Lists will have their aliquots reduced temporarily in their respective States Parties to 2% (two percent).
Art. 4-In cases of urgency, determined by the nature of the investments involved, the State Party concerned may include the good directly in the National List, which should be notified in advance to the MERCOSUR Trade Commission.
The goods in issue will automatically be subject to the procedure laid down in Article 2 of this standard, with views to their possible inclusion in the Common List. To that end, the notification referred to in the "caput" of this article shall meet the specifications of the item (a) of Article 2.
In case there is no consensus to include these goods in the common list, they will remain in the National Lists, respected the provisions of article 11 of this Annex.
Art. 5? The States Parties will be able to request, at any time, the inclusion of a good that appears in the National Lists in the Joint List.
Once the solicitation is received in this regard, States Parties shall have 60 days to express on the request, without prejudice to the maintenance of the product on the national list.
Art. 6-Eventual objections to the inclusion or re-inclusion of a good in the Common List should be substantiated in writing, having present, among others, for the purposes of verification and comparative analysis of existence of regional production, the following factors:
(i) equipment productivity or functional unit, considering the main factors (raw material consumption, utilization of labor, energy consumption, cost manufacturing unit, other relevant factors),
(ii) degree of automation and technology used;
(iii) quality and technical specifications of the product elaborated;
(iv) performance guarantee of the equipment or functional unit;
(v) usual delivery time for the same type of good; and
(vi) previous supplies effected by the manufacturer.
Art. 7-The goods included in the lists provided for in Articles 2 and 3 of this Resolution, shall be imported with the aliquots set out in this special import regime for a minimum of 21 months and at most 27 months, consigned from the target date for the incorporation of the Guideline that approved the inclusion of the product in the Common List or the entry into force of the domestic standard that modifies the National Lists, respected the provisions of Article 11 of this Annex.
In order to ensure greater predictability to the import regime provided for in this standard, the Guideline or internal standard that includes a particular good on the common or national list shall expressly establish the date established, in accordance with the provisions of this article, for the termination of the term of the benefit, which shall always give effect on June 30 or December 31, as the case may be.
Art. 8-Before the expiry of that period, any State Party may, complied with the provisions of Article 11, request that the goods listed in the said lists remain to the amparo of this tariff regime for a further period of 21 a to 27 months, upon written request to PPT, which will include the theme on the agenda of the next meeting of the CCM.
According to it is analysis will be applied to the established in the artículo 3, except in the case where the good is included in the national list in which case it will be applied to that set out in Article 5.
The States Parties shall seek to make every effort in order to include progressively the items listed in the National Lists in the Joint List.
Art. 9-Prior to the expiry of the period referred to in Article 7, States Parties may determine the exclusion of the lists provided for in Articles 2 and 3 of the goods which, by some subsequent amendment of the Fee Common external, pass to be imported with their respective definitive aliquots. Modifications to the national lists effected by the amparo of this article should be promptly notified to the CCM.
Art. 10? The present regime shall not apply to tariff relief solicitations for entire items of BK not produced in the States Parties, which shall be trambred normally via Technical Committee No. 1, under an emergency regime.
Art. 11-A as of 01/1/2008 will only be admitted imports, with the benefits provided for in this scheme, of new capital goods, their parts, parts and components, classified in the identified codes as "BK" in the Common Nomenclature of MERCOSUR, not produced that build on the Common List.
Art. 12? As of the duration of this Decision, further tariff reductions for capital goods not produced in the States Parties to the MERCOSUR that are to be held in the framework of the scheme set out in this standard are to be admitted.
In the The States Parties will be able to maintain the Exceptional Measures in the Tariff Framework which makes reference to the art. 2 of this Decision up to 60 days after the first meeting of the CCM that analyzes the first list of applications.
The unilateral reductions of tariffs for non-produced capital goods existing in the States Parties on the date of approval of this Decision will be able to remain in duration for the maximum period of two years, counted from of the date laid down for the incorporation of this Decision. The lists of goods benefited by these reductions shall be notified to the CCM by up to 30 days after the entry into force of this Annex for examination of the possibility of their inclusion in the common list mentioned in Article 2.
Art. 13-A CCM should annually assess the impact of the benefits granted to the amparo of this Annex on intra-and extra-zone trade. To that end, States Parties shall submit by June 30 each year the statistical data relating to the import of the goods benefited by the Regime in the previous year.
Based on that assessment, or if constate that a particular good has remained in the amparo of the present regime for consecutive periods, CCM will be able to examine the possibility of specific opening-up for definitive import of the goods in issue with zero aliquot.
In addition to the annual assessment conducted within the framework of the CCM, it is available to States Parties to request any time information on the import of such goods.
Art. 14-States Parties that are deemed to be impaired by the inclusion, in the terms set out in this Annex, of a particular good in the National List of another State Party, will be able to request, by intermediate of the Trade Commission, which is reassessed the permanence of the good in the said list.
In case it is not possible to exclude the good of the said list, the State Party in question should submit detailed justifications in substantive terms, and not merely legal-formal, for the non-service of the request.
