DECREE NO. 5,738, OF March 30, 2006.

Disposes on the implementation of Decision No 37/05 of the Council of the Common Market of Mercosur, which approves transitional regulation of CMC Decision 54/04 " Elimination of Double Collection and Distribution of Income Customs ", adopted in Montevideo, on December 8, 2005.

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

Whereas the Treaty of Assumption, of 26 of March 1991, promulgated by the Decree no 350 of November 21, 1991, establishes that the Common Market Council is the superior body to which it corresponds to the political conduct of Mercosur and the decision making to ensure compliance with the objectives and deadlines set for the definitive constitution of the Common Market;

Considering that the Additional Protocol to the Treaty of Asuncion on the Institutional Structure of Mercosur (Black Gold Protocol) of December 17, 1994, promulgated by the Decree No 1,901 of May 9, 1996, provides that the Common Market Council will manifest itself upon decisions, which will be binding on the States Parties;

Considering that the Common Market Council approved, on December 8, 2005, Decision No 37/05 approving the transitional regulation of the decision in the 54/04 "Elimination of Double Collection and Distribution of the Customs Income", for the universe of goods defined in your Article 2;

DECRETA:

Art. 1º The CMC Decision No. 37/05 "Regulation of the CMC Decision No 54/04", of the Common Market Council of the Mercosur, of December 8, 2005, in apenso 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, from 30 of 2006; 185º of Independence and 118º of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

MERCOSUR / cmc/dec. No. 37/05: REGULATION OF THE CMC DECISION NO. 54/04

HAVING IN VISTA: The Treaty of Assumption, the Black Gold Protocol and Decisions No 26/03, No 01/04 and No 54/04 of the Common Market Council and the Directives No 03/04 and No 04/04 of the MERCOSUR Trade Commission.

CONSIDERING:

That it makes necessary to establish in a first step a regulation for control and commercialization between the States Parties to the goods that will receive the originating treatment, in accordance with the provisions of the CMC Decision No 54/04.

That the establishment of a transitional regulation in this first step constitutes an indispensable element in advancing the adoption of norms that ensure the elimination of the multiplicity of the collection of Common External Fee and the future distribution of customs income in MERCOSUR.

Which, as per the CMC Decision No 54/04, results in a convenient improvement of the conditions of movement of goods originating in the States Parties.

THE COUNCIL OF THE COMMON MARKET

DECIDE:

Art. 1-Approving the transitional regulation of CMC Decision No 54/04 "Elimination of the Double Collection and Distribution of the Customs Income" for the universe of goods defined in the article 2, pursuant to this Decision.

Chapter I-REACH

Art. 2-The goods imported from third countries entering the territory of some of the States Parties to starting from , they will receive the originating treatment, both with respect to their circulation between the States Parties of MERCOSUR, and to their incorporation into productive processes, where they apply:

a) a Common External Fee of 0% in all States Parties; these goods are found to be included in the Annex I to this Decision;

b) a tariff preference of 100%, quadripartite and simultaneously, and are subject to the same source requirement, within the framework of each of the agreements signed by MERCOSUR, without quotas or temporary origin requirements, when the same originates and proceeded from the country or groups of countries to that you overhear that preference. Those cited goods are included in Annex II and are identified by country or groups of countries of origin.

Art. 3-Annex I does not include the NCM tariff positions that are part of some of the national exception lists to TEC.

Art. 4-The goods from the NCM tariff positions included in Annexes I and II will not receive the treatment of originating in the CMC Decision No 54/04, when they are the object of the application of some measure of commercial defence (anti-dumping duty, countervailing duty) or safeguard, in some of the States Parties. These NCM tariff positions with the indication of the origins recorded by trade defence or safeguard measures are included in Annex III.

Art. 5-A Trade Commission of MERCOSUR will be responsible for the update periodical of Annexes I and II by means of Directives, so as to record the changes that can be produced, as follows:

a) After the entry into force of a Resolution modifying the TEC of 0% to some of the goods understood in Annex I or by modifying the TEC beholdment of some good until it reaches 0%, the CCM make the incorporation of the mentioned changes to the said Annex;

b) When some State Part introduces modifications to its Exception Lists to TEC (elimination or inclusion of a Fee Position), CCM will, if it matches, update the Annex I;

c) When within the framework of an agreement entered into with third countries or group of countries establish preferences quadripartites of 100%, or if they achieve quadripartite preferences of 100% by the application of a tariff-untapping schedule, or when the respective Administrative Commission produces modifications to the list of goods subject to preferences quadripartites of 100%, the CCM will update Annex II with the established changes, as the preferences or changes produced in the agreement come into force in the four States Parties;

d) When in the framework of an agreement entered into by MERCOSUR with third countries or groups of countries, be renegotiated the Rules of Origin, the CCM shall, if it is the case, update Annex II, once the modification in the Rules of Origin enters into force.

These updates will enter into force on or in July of each year, as is the case.

Art. 6-The State Party that adopts or leaves without effect any of the measures mentioned in Article 4 in relation to some of the goods understood in Annexes I and II should notify this situation to the CCM National Coordinators and to the SM. CCM will update Attachment III through Directive.

Transcurring 10 days counted as of the date of the notification, the State Party which adopted the measure mentioned in paragraph 1 may reject the CCPTC (SIM) that amped up the goods achieved by the measure, issued from the aforementioned deadline, by those States Parties that do not yet have been incorporated into their internal legal planning of the Directive mentioned earlier.

Chapter II-CUSTOMS PROCEDURES

Section I-Compliance Certification of Common Tariff Policy

Art. 7-The Aduanas Administrations of the States Parties shall certifying compliance with the Common Tariff Policy (PTC), informatically identifying the item of the declaration import customs that comply with or not with such an application as per the provisions of this standard.

Dita identification constitutes the' PTC Fulfillment Certificate ' (CCPTC), which will be individualised by the country code, by the customs targeting, by the item number corresponding and will contain the SIM/NOT statement regarding the compliance of the PTC.

The CCPTC will be available for consultation of the Fertilizer Administrations of States Parties, on line and in real time, through the INDIRA System.

Section II-Ingress of extra-zone goods.

Art. 8-The goods imported from third countries which are included in Annex I and whose tariff position and country of origin are not included in Annex III will receive, through the Computer Management Informatics Systems of the States Parties, the CCPTC (SIM).

The goods imported through third countries which are included in Annex II, which admission accompanied by the corresponding origin certification and whose tariff position and country of origin do not find themselves included in Annex III, they will receive through the Computer Management Systems of the States Parties to the CCPTC (SIM).

The remaining goods imported from third countries will receive, by means of the Management Informatics Systems Customs of States Parties, the CCPTC (NO).

Section III-Customs Certification of products with certificate of origin MERCOSUR

Art. 9-The Aduanas Administrations of the States Parties will certifying that the goods have entered with a MERCOSUR Origin Certificate, informatically identifying the item of the import customs declaration that complies or not with that application.

Dita identification constitutes the "Certificate of Enforcement of the MERCOSUR Origin Scheme" (CCROM), which will be individualized by the country code, the customs targeting, by the corresponding item number and will contain the SIM/NOT declaration on the presentation of the Certificate of Origin.

The CCROM will be available for consultation of the Aduanas Administrations of States Parties, on line and in real time, through the INDIRA System, as of the 1st April 2006.

Art. 10- All goods of the tariff universe imported from another State Party that prove compliance with the MERCOSUR Origin Scheme by the corresponding origin certification will receive from the Computer Systems of Customs Management of the States Parties the CCROM (SIM).

The remaining goods imported from another State Party of the MERCOSUR will receive from the Computer Management Systems of the States Parties the CCROM (NO).

Section IV-Output of goods originating in or which complied with PTC

from a State Party to another State Party

Art. 11-The States Parties will include in their export customs declarations a field so that the exporter of goods, which are exported in the same state where they were imported, inform the CCPTC code (SIM) or CCROM (SIM) bestoed to Aduana on the respective import.

The informatic development required for the implementation of the said field is expected to be operative until July 2006. Argentina, Paraguay and Uruguay will carry out this implementation and will put it into operation until .

While it is not available from that field, this information should be included in the export tax bill.

The State Customs Administration Part exporter, even making informatically the field of the CCPTC in the export customs declarations, will not accept export declarations that append the CCPTC (SIM) or CCROM (SIM) codes in the following cases:

a) when it does not confirm the existence of a CCPTC (SIM) or CCROM (SIM) in the respective import operations through the informatics system of each State Party; or

b) when it proves that the quantity of product declared in the export is higher than the stated in the import targeting with CCPTC (SIM) or CCROM (SIM), deduced other known addressations.

Art. 12-The States Parties should include in their export customs declarations the fields necessary for the exporter to declare about the inputs that count with CCPTC (SIM) the following information:

-NCM/SA Codes-CCPTC identifier code who believes the compliance of the CAP;

-Quantity used for the total exported from the product final.

The informatic development required for the implementation of the said fields should be operative until 1st January 2007.

While not available of that information in via informatics, the requirement of the authorities of the State Party to be an importer, the importers of the goods drawn up with inputs that have complied with the Common Tariff Policy of MERCOSUR shall be annexed, on the occasion of the order to consumption, the information mentioned in this article initialed by the exporter.

Section V-Ingress to States Parts of goods referred to in Sections II and III

Art. 13-The goods referred to in articles 8 and 10 will be imported by other States Parties of the MERCOSUR, including by the State Party of origin of the good, with no requirement to pay the tariff whenever the import declaration filed with the Aduana contains the identification of the CCPTC (SIM) or the CCROM identification (SIM). For that purpose, the States Parties shall include in their import customs declarations a field for the declarant to inform such codes,

The State Customs Administration Part importer will be able to refuse the CCPTC (SIM) or the CCROM (SIM) and demand payment of the tariff, in the following cases:

a) when you do not confirm the existence of a CCPTC (SIM) or CCROM (SIM) through the query informatics referred to in Articles 7 and 9; or

b) when it proves that the amount of goods declared in the import is greater than the certified with registration of CCPTC (SIM) or CCROM (SIM) in the first country, deduced other known addressations.

Section VI-Tariff-classification discrepancy

Art. 14-In cases of discrepancy in the tariff classification of the goods by the Aduanas Administrations of the States Parties, the State Fertilizer Part importer:

a) will give course to the import operation, by a half of the constitution of a warranty equivalent to the value of the eventually applicable gravames;

b) will consult the state adua Party that certified the CCPAC (SIM); and

c) case persists to classifying discrepancy, the State Party importer will present the case to the CT No 1, with a view to drafting and electing to the CCM the corresponding Tariff Classification Ditame.

Chapter III-SOURCE

Art. 15-The goods processed in the territory of one of the States Parties from imported materials from third countries that have complied with PTC, shall be governed by the established in the CMC Decision No 1/04 "MERCOSUR Source Regime" and the present Decision.

Art. 16-The materials not originating in the States Parties that have obtained a CCPAC (SIM) will receive the treatment of originating in the States Parties with views to the application from:

a) the incisos "b" a "g" of the art. 3 of the Annex to CMC Decision No 1/04, with the exception of the specific requirements of origin that imply regional supply or productive processes that are to be carried out in the region In that case the specific requirement will prevail over the treatment of originating in accordance with the CMC Decision No 54/04;

b) the art. 4 of the Annex to CMC Decision No 1/04.

Art. 17-A as of the duration of the present regulation, the Juristened Declaration of the producer provided for in Article 15 of the CMC Decision No 01/04 "MERCOSUR Source Regime" and the declaration of use of materials provided for in Article 6 of the CCM Directive No 4/04 " Total Origin Accumulation Intra-MERCOSUL " should additionally contain the following data:

The materials, components and / or parts and parts originating in third countries, which have complied with the PTC, detailing:

-Codes NCM/SH;

- CIF value in US dollars;

-Percentage of participation in the final product;

-Quantity used for the total exported from the final product;

-Code identifier of the CCPTC that believes the fulfillment of PTC.

Art. 18-The aduan administrations of the States Parties shall put at the disposal of the origin certifying entities, as of , an access limited to the customs management system to consult on each CCPTC (SIM) the following information:

-Existence of the CCPTC Identifier Code;

-Length or not of the CAP;

-Codes NCM/SH;

-Description of the merchandise;

-CIF value in US dollars;

-Quantity mattered.

For the issuance of the Certificates of Origin, as of the date indicated in the first paragraph, the certifying entities will verify this information with the one listed in the sworn affidavit from the producer referred to in Article 17.

Art. 19-In the field 14 "Observations" of the Certificate of Origin will identify either the or the No-order in the order corresponding to the NCM of the or of the goods that have been using inputs that comply with PTC, indicating as follows: "On the order XX, ZZ: inputs PTC."

Art. 20-You will not require MERCOSUR Source Certificate of the products that have CCPTC (SIM) or CCROM (SIM).

Chapter IV. EXCHANGE OF INFORMATION BETWEEN ADUANAS

Art. 21-The Aduanas Administrations of the States Parties are expected to establish the necessary mechanisms that allow the exchange of the information contained in Annex IV to this Decision set out in their respective computer systems via the INDIRA System, concerning:

a) imports of the subject goods from third countries effected by a State Party;

b) imports carried out by a State Part of goods proceeded from any of the remaining States Parties; and

c) exports carried out by a State Part of goods destined for any of the remaining states Parts.

Art. 22-The information will be transmitted on line and in real time and will be available to the officials authorized by the Aduanas Administrations of the States Parties through the INDIRA system.

The exchange of information through the computer systems will not require request, response, or confirmation.

Art. 23-The information obtained through the computer systems will enjoy, in the country that receives them, of the same protective measures that the confidential information and professional secret vigour in the country of origin.

CHAPTER V-GENERAL DEVICES

Art. 24-A Trade Commission of MERCOSUR will evaluate, every six months, the functioning of the present regulation and its impact on intrazone trade flows.

Art. 25- The CCM Directive No 03/04 is revoked.

Art. 26-States Parties should incorporate the present Decision to their national legal ordinances before 01/1/2006.

XXIX CMC-Montevideo, 08 /XII/05