DECREE NO. 6,544, OF August 21, 2008.

Disposes on the execution of the Sexagtieth First Additional Protocol to the Economic Supplementation Agreement n^o 18, among the Governments of the Republic of Argentina, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties to MERCOSUR, April 11, 2008.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that confers it on 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 promulgated by Decree n^o 87,054, of March 23, 1982, provides for the modality of Economic Supplementation Arrangement;

Considering that the Plenipotentiaries of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed on November 29, 1991, in Montevideo, Uruguay, the Economic Supplementation Agreement n^o 18, promulgated by the Decree n^o 550, of May 27, 1992;

Whereas the Plenipotentiaries of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed, on April 11, 2008, in Montevideo, the Sexagtieth First Additional Protocol to the Economic Supplementation Agreement n^o 18, among the Governments of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay;

DECRETA:

Art. 1^o The Sexagtieth First Additional Protocol to the Economic Supplementation Agreement n^o 18, among the Governments of the Argentine Republic, of the Republic Federative of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, of April 11, 2008, apensed by copy to the present Decree, will be executed and fulfilled as entirely as it contains.

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

Brasilia, August 21, 2008; 187^the of Independence and 120^o of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

ECONOMIC COMPLEMENTATION AGREEMENT N^o 18 CELEBRATED BETWEEN

ARGENTINA, BRAZIL, PARAGUAY, AND URUGUAY

Sexagtieth First 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 heard in good and due form, deposited opportunely at the General Secretariat of the Latin American Integration Association (ALADI),

HAVING IN VISTA the Eighteenth Additional Protocol to ACE-18 and the GMC Resolution N^o 43/03,

CONVVE IN:

Article 1 °-Incorporating to the Economic Supplementation Agreement N ° 18 a Guideline N^o 05/06 of the MERCOSUR Trade Commission concerning?Explanatory note N^o 2 to the MERCOSUR Origin Scheme?, which appears as Annex and integrates the present Protocol.

Article 2^o -This 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, 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 the ALADI should make such a notification, as far as possible, in the same day that it receives the communication from the MERCOSUR Registry.

The General Secretariat of ALADI will be a 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 FROM WHAT, THE RESPECTIVE PLENIPOTENTIARIES SIGN THE PRESENT PROTOCOL IN THE CITY OF Montevideo, at the eleven days of the month of April of the year two thousand and eight, 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: José Humberto de Brito Cruz; By the Government of the Republic of Paraguay; Emilio Giménez Franco; By the Government of the Eastern Republic of Uruguay; Gonzalo Rodríguez Gigena.

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MERCOSUR-CCM/DIR. No. 05/06

EXPLANATORY NOTE NO. 2 TO THE MERCOSUR ORIGIN REGIME

HAVING IN VISTA: The Treaty of Assumption, the Black Gold Protocol, and Decision No. 01/04 of the Council of the Common Market.

CONSIDERING:

That some themes referred to the MERCOSUR Source Regime require common interpretation and harmonized practices.

That it is necessary to confer legal soundness on all matter regarding the interpretation and the operationality of the MERCOSUR Source Regime.

That it is necessary to guarantee the access of commercial operators to the consensuses in the Regime of Origin MERCOSUR.

THE MERCOSUR TRADE COMMISSION

APPROVE THE FOLLOWING GUIDELINE:

Source Requirement for Capital Bens

Art. 1-The requirement of origin in the MERCOSUR Origin Scheme for capital goods is a specific criterion according to what is stated in Annex I to Dec. CMC No. 01/04, and should be identified in the corresponding certificate of origin. For those cases where new tariff codes defined as capital goods are established, in the case of certification of origin, they should make reference to the inciso f) of Chapter III, Article 3º of the Dec. CMC No. 01/04.

Intermediate Materials

Art. 2-The producer of a good will be able to consider as an intermediary material any material produced in the country used in the production of the good, whenever this intermediate material qualifies as originating in accordance with the MERCOSUR Source Regime. The intermediate material will be considered 100% originating, once incorporated into the final product.

Form Certificate of Origin on recycled paper

Art. 3-Use of recycled paper for the confection of the form of the MERCOSUR Origin Certificate is allowed.

Art. 4-States Parties should instruct their respective Representations to the Latin American Integration Association (ALADI) for the protocolization of this Guideline under the Economic Supplementation Agreement No. 18, pursuant to established in the GMC Resolution No. 43/03.

Art. 5-States Parties shall incorporate the present Guideline to their national legal ordinances before 06 /VI/07.

LXXXIX CCM-Montevideo, 10 /XI/06