DECREE NO. 5,900, OF September 20, 2006.

Disposes on the execution of the Fifty Fifth Additional Protocol to the Economic Supplementation Agreement no 18, between the Governments of the Federative Republic of Brazil, of the Argentine Republic, of 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

Considering that the Treaty of Montevideo from 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 Economic Supplementation Agreement;

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 November 29, 1991, the Agreement of Economic Complementation 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, incorporated into the Brazilian domestic law by the Decree no 550, of May 27 of 1992;

Considering that 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 March 28, 2006, the Fifty Fifth Additional Protocol to the Agreement of Economic Complementation 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;

DECRETA:

Art. 1st The Fifteenth Additional Protocol to the Economic Supplementation Agreement no 18, between the Governments of the Federative Republic of the Brazil, from 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 if it contains.

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

Brasilia, 20 of september 2006; 185th of the Independence and 118th of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

This text does not replaces the published in the D.O.U. of 9/21/2006.

ECONOMIC SUPPLEMENTATION AGREEMENT NO. 18 CELEBRATED AMONG ARGENTINA, BRAZIL, PARAGUAY AND URUGUAY

Fiftieth Fifth Additional Protocol

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 Association Latin American Integration (ALADI),

TAKING INTO ACCOUNT the 10th Eighth Additional Protocol to the Economic Supplementation Agreement No. 18 and the GMC Resolution No. 43/03,

CONVARISE IN:

Article 1-Incorporate to the Economic Supplementation Agreement N ° 18 a Decision No. 33/05 of the Common Market Council of MERCOSUR concerning?Special Import Regimes?, which is listed as Annex and is part of this Protocol.

Article 2º-This Protocol shall enter into force thirty 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 the ALADI is expected to make such notification, if possible, on the same day as receiving the communication from the MERCOSUR Registry.

Article 3º-After its entry into force, the present Protocol:

a) shall replace the provisions of Article 1º of the Additional Protocol No. 26 of the ACE 18, staying in the following way:

?Article 1-A This Decision applies to the special import regimes, unilaterally adopted by the States Parties which entail the complete or partial exemption of customs duties (Common External Tariff) that record the definitive import of goods that are not aimed at the improvement and further export of the resulting goods to third countries.

The one provided for in the preceding paragraph does not understand the areas special customs, export processing zones, nor free zones of any nature, to those referred to in CMC Decision No. 8/94.?

b) Modifying the provisions of Article 2º of the Additional Protocol No. 26 of the ACE 18 as it indicates:

?Article 2º.-The Signatory Countries undertake to completely eliminate, on December 31, 2007, the totality of the special import customs arrangements mentioned in the preceding article and the benefits granted to the amparo of such schemes, excepted the special customs areas:?

c) Modifying the provisions of Article 4º of the Additional Protocol No. 26 to ACE 18 as it indicates:

?Article 4º.-The products that have been drawn up using the mechanisms provided for in Article 2º shall benefit from free trade within the framework of MERCOSUR to the date indicated in that article, provided that they comply with the MERCOSUR Origin Scheme.?

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

IN FÉ FROM WHAT, THE RESPECTIVE PLENIPOTENTIARIES SIGN THE PRESENT 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 Oriental Republic of Uruguay: Gonzalo Rodríguez Gigena.

ANNEX

MERCOSUR ul/cmc/dec. No. 33/05

SPECIAL IMPORT REGIMES

HAVING IN VISTA: The Treaty of Asuncion, the Golden Protocol Black and Decisions No. 31/00, 69/00, 16/01, 26/03 and 32/03 of the Council of the Common Market.

CONSIDERING:

That the CMC Decision No. 69/00 determines the elimination in 1º of January 2006 of the special customs regimes of import adopted unilaterally by the States Parties and defined in the art. 1.

Which, of the work carried out at the MERCOSUR Trade Commission, arises the need for if you adjust the definition of the special import customs regimes established in the art. 1 from Dec. CMC No. 69/00.

That the cited Decision establishes that States Parties will be able to apply Special Regimes Import Commons to MERCOSUR, including with definitive internation in the territory of any of the States Parties, from the joint identification of sectors or products to be contemplated with specific trade policies.

Which identified the existence in the States Parties of Special Import regimes whose economic materiality is limited and deserve differential treatment.

THE COUNCIL OF THE COMMON MARKET

DECIDE:

Art. 1-Article 1º of CMC Decision No. 69/00 will be redacted in the following manner:

?Art. 1-A This Decision applies to the special import regimes, unilaterally adopted by the States Parties, which entail the complete or partial exemption of customs duties (Common External Fee) that record the definitive import of goods that are not aimed at the improvement and further export of the resulting goods to third countries.

The one provided for in the preceding paragraph does not understand the areas special customs, export processing zones, nor free zones of any nature, referred to in CMC Decision No. 8/94.?

Art. 2-Extend until December 31, 2007 the deadline to be refer to Articles 2º and 4º of CMC Decision No. 69/00.

Art. 3-A CCM will elevate to the last GMC of the first half of 2006 a draft standard that contains a list of the areas that States Parties consider to be of interest for the priority drafting of common import regimes.

Art. 4-A CCM will elevate to the last GMC of the first half of 2006 a draft standard that contains a list of the national schemes that will be able to remain beholdled for reasons such as limited economic impact or non-commercial purpose.

Art. 5-States Parties are expected to present at the last meeting Ordinary CCM of the year 2006 an inventory of the national import special import schemes not included in Articles 3 and 4 in order for the GMC to define the treatment to be heard from them.

Art. 6-For the purposes of the application of Article 1º of the CMC Decision No. 32/03, Paraguay will be able to present the reduced list of tariff items by December 31, 2007.

Art. 7-For the purposes of the application of Article 3º of the CMC Decision No. 32/03, Paraguay and Uruguay will be able to submit the tariff item list by December 31, 2007.

Art. 8-Request to the States Parties to instruct their respective representations to the ALADI for which to protocolize this Decision in the framework of the Economic Supplementation Agreement No. 18 pursuant to the GMC Resolution No. 43/03.

Art. 9-A This Decision is to be incorporated into the national legal ordinances of the States Parties before 1º January 2006.

XXIX CMC-Montevideo, 08 /XII/05