DECREE NO. 6,680, OF December 8, 2008.

Disposes on the execution of the Sexagtieth Seventh Additional Protocol to the Economic Supplementation Agreement nth 18, between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, from 1th of October 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 87,054, of March 23, 1982, provides for the modality of Economic Supplementation Agreement;

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, based on the 1980 Treaty of Montevideo, signed on November 29, 1991, in Montevideo, the Economic Supplementation Agreement nth 18, promulgated by the Decree nth 550, of 27 of may 1992; and

Whereas the Plenipotentiaries of the Argentine Republic, of the Republic Federative of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed, in 1th of October 2008, in Montevideo, the Sexagtieth Seventh Additional Protocol to the Complementation Agreement Economic nth 18, among the Governments of the Argentine Republic, of the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay;

DECRETA:

Art. 1th The Sexagtieth Seventh Additional Protocol to the Economic Supplementation Agreement nth 18, between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, from 1th of October 2008, apensed by copy to the present Decree, it will be executed and fulfilled as entirely as it contains.

Art. 2th This Decree goes into effect on the date of its publication.

Brasilia, December 8, 2008; 187th of the Independence and 120th of the Republic.

LUIZ INACIO LULA DA SILVA

Samuel Pinheiro Guimarães Neto

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

Sexagtieth Seventh Additional Protocol

The Plenipotentiaries of the Argentine Republic, of the Federative Republic of the Brazil, 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),

HAVING IN VISTA the Eighteenth Additional Protocol to the ACE-18 and the GMC Resolution No. 43/03,

DECK IN:

Article 1-Incorporating to the Economic Supplementation Agreement No. 18 a Decision No. 3/06 of the Common Market Council and the Guideline No. 12/06 of the Trade Commission, concerning?Special Import Regimes?, which are listed as Annex and integrate the present Protocol.

Article 2º-This Protocol will 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 Registry of the MERCOSUR informing the incorporation of the MERCOSUR standards and its corresponding Additional Protocol to the legal ordinances of the four States Parties to MERCOSUR.

The General Secretariat of ALADI should make such notification, as far as possible, on the same day that 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 to the Registry of MERCOSUR.

IN FÉ DO THAT, the respective Plenipotentiaries sign the present Protocol in the city of Montevideo, to the 1º day of the month of October two thousand and eight, in an original in the Portuguese and Spanish languages, being both texts being equally valid.

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 Gimenez Franco

By the Government of the Eastern Republic of Uruguay: Gonzalo Rodríguez Gigena

_________

ANNEX

MERCOSUR / cmc/dec. No. 03/06

SPECIAL IMPORT REGIMES

HAVING IN VISTA: The Treaty of Assumption, the Black Gold Protocol and Decisions No. 31/00, 69/00, 16/01, 26/03, 32/03 and 33/05 of the Common Market Council.

XX_ENCODE_CASE_One CONSIDERING:

That Article 2º of CMC Decision No. 69/00 established the obligation for the States Parties to MERCOSUR to completely eliminate, by 1º January 2006, the customs arrangements import specials unilaterally adopted.

That Article 2º of the CMC Decision No. 33/05 extended that period until December 31, 2007.

That Article 4º of the cited Decision has commissioned the drafting of a list containing the national import regimes that will be able to remain behold-up for reasons such as their limited economic impact or their non-commercial purpose.

Which, from the work carried out, identified whether to exist in the States Parties of Special Regimes Of Import whose economic materiality is limited or whose purpose is to cater to matters of public interest or situations of a non-commercial nature.

Which, due to its purpose or its reduced economic impact, results in proper maintenance of these regimes, without prejudice to the establishment of common regimes in the future.

Which, therefore, makes itself necessary to appropriate the community legislation to allow for effective existing regimes, as well as allowing, for States Parties that do not count on such schemes, the adoption of others similar to those authorized to other States Parties.

Which, in the framework of the treatment of asymmetries in MERCOSUR, has authorized maintenance for Paraguay and Uruguay of certain special import schemes that will be on hold until December 31, 2010.

THE COMMON MARKET COUNCIL

DECIDE:

Art. 1º-The Special Import Regimes adopted unilaterally by the States Parties to MERCOSUR that are indicated in the Annex to this Decision shall not be subject to the obligation set out in Article 2º of the CMC Decision No. 69/00 and its modifiers.

For the purposes of this Decision, will you understand it by?Special Import Regimes? those achieved by the definition set out in Article 1º of the CMC Decision No. 33/05.

Art. 2º-The Special Import Regimes adopted unilaterally by the States Parties to MERCOSUR before June 30, 2000 that comply with the conditions laid down in Article 4º of the CMC Decision No. 33/05 will be able to be incorporated into the Annex to the present Decision, upon the approval of the Trade Commission of MERCOSUR (CCM).

Art. 3º-The Special Import Regimes referred to in Article 1º shall not be able to be modified unilaterally to extend the universe of goods or beneficiaries to which they refer, nor to modify the conditions and circumstances in which it corresponds the exemption or reduction of the import tariff, unless express permission from the remaining States Parties to the Trade Commission.

Art. 4º-The State Party which, at the date of this Decision, does not have any prevailing regimes of the same nature as those related in the Annex may adopt, upon the approval of the CCM, new schemes of a similar nature, where the benefits granted do not exceed the benefits heard from the corresponding regime included in the Attachment and provided that they meet the following conditions simultaneously:

a) The subject matter of the benefits of the new regime finds itself listed in the Annex;

b) The beneficiaries of the new regime are the same of the corresponding regime listed in the Annex;

c) The goods included in the new regime are the same of the corresponding regime listed in the Attachment.

Art. 5º-The Trade Commission shall be responsible for the periodic updating of the Annex by means of Guidelines in order to record the changes that may produce itself in accordance with Articles 2º to 4º of this Decision.

Art. 6º-States Parties shall report to the CCM, at the second meeting of the year, the trade data of imports (with tariff position discrimination, volume, FOB/CIF value and origin) effected by the amparo of the regimes listed in the Annex, correspondents the previous year.

States Parties should generate in their customs IT systems the corresponding field (s) in order to obtain the trade data corresponding to the imports amstops by the Annex. Instructs the Technical Committee No. 2 a to present, before the last meeting of 2006 of the CCM, a proposal for its implementation.

Art. 7º-Will be eliminated from the Annex those schemes contemplated in Common Special Import Regimes that settle after the entry into force of the corresponding MERCOSUR standard.

Art. 8º-States Parties should instruct their respective Representations to the Latin American Integration Association (ALADI) to protocol this Decision in the framework of the Economic Supplementation Agreement No. 18, pursuant to the terms set out in the Resolution GMC No. 43/03.

Art. 9º-States Parties should incorporate this Decision to their national legal ordinances before 1/I/08.

XXX CMC-Córdoba, 20 /VII/06

ANNEX

ARGENTINA

-Assistance and rescue dispatch regime, arts. 581 a 584 (CAA);

-Regime of diplomatic franchises, arts. 529 a 549 (CAA);

-Regime of the customs operations carried out by means of transport of war, security and police, arts. 472 a 484 (CAA);

-Import or export regime to compensate for submissions from merchandise with defects, arts. 573 a 577 (CAA);

-Regime of postal submissions, arts. 550 a 559 (CAA);

-Regime of samples, arts. 560 a 565 (CAA);

-Dispatch of craft-Mercatorio that there has been the object of penalty of persediment or abandonment, arts. 429 a 436 (CAA);

-Regime of border trafficking, arts. 578 a 580 (CAA) (with third countries exclusively);

-Import of works of art made by hand, with or without aid of instruments of achievement or application-art. 4º of Law No. 24,633-International Movement of Works of Art;

-Goods imported in the milestone of the international technical cooperation agreements, in so far as they are intended solely for the purposes provided for in the agreements;

XX_ENCODE_CASE_One exemption from import duties for sports clubs that import goods destined to perform construction, repair or extension of stadiums or facilities sports, Law N ° 16,774;

-Exemption from import duties for political parties, Law No. 25,600;

-Exemption from import duties to trade fairs and missions, Law No. 20,545;

-Bens imported with destination to teaching, research and health, Decree No. 732/72;

-Regime for reimportation of exported merchandise for consumption, arts. 566 a 572. of the Customs Code, Decree No. 1001/82;

-Import or export regime to compensate for deficiencies, arts. 573 a to 577 of the Customs Code;

-Automotive vehicles for persons with disabilities, Law No. 19,279.

BRASIL

XX_ENCODE_CASE_CAPS_LOCK_On diplomatic missions, consular offices and representations of international bodies, of permanent character, inclusive of the regional ones, of which Brazil is a member, and to the goods of its members, inclusive automobiles (Law No. 8,032, of 1990, art. 2º, inciso I, point "c", and Law No. 8,402, of 1992, art. 1º, inciso IV and art. 140 of the Customs Regulation);

-The identical foreign markets, in equal quantity and value, and which departs to the reposition of another previously imported which has been revealed, after the customs landed, defective or imprinted to the end to which it was intended, provided that the regulations edited by the Ministry of the Farm;

-Samples and international postal shipments, without commercial value (Law No. 8,032, of 1990, art. 2º, inciso II, point "b", and Law No. 8,402, of 1992, art. 1º, inciso IV; art. 15, Decree-law 37 of 1966);

-Postal shipments and international air orders, intended for the physical person (Law No. 8,032, of 1990, art. 2º, inciso II, point "c"; Law No. 8,402, of 1992, art. 1º, incisus IV and Decree-law No. 1,804, of 1980, art. 2º, inciso II, with the essay given by Law No. 8,383, of 1991, art. 93);

-Generic classification, for the purpose of import dispatch, of integral goods of international postal shipment or international air parcels carried to the amparo of cargo knowledge, upon application of differentiated aliquots of import tax, not applying to TEC (Decree-law No. 1804, of 1980, arts. 98 and 99);

-Foreign markets that have been the subject of the penalty of persediment, except in the hypothesis in which it is not located, has been consumed or resold (Law No. 10,833, of 2003, art. 77 and Customs Regulation, art. 73, inciso III);

-Bens brought from abroad, in the characteristic trade of cities situated on the land borders (with third countries exclusively);

-Art objects received in donation, by museums (Law No. 8,961, of 1994, art. 1º);

-Bens imported into the amparo of international technical cooperation agreements, with tax treatment in them provided for;

-Political parties and education institutions or of social assistance (Law No. 8,032, of 1990, art. 2º, inciso I, point "b", Law No. 8,402, of 1992, art. 1º, inciso IV, Law No. 5,172, of 1966, art. 14, and Law No. 9,532, of 1997, art. 12, § 2º);

-Goods intended for consumption in the enclosure of congresses, of fairs, of international exhibitions and other international assorted events (Law No. 8,383, 1991, art. 70);

-Books, newspapers, periodicals and the paper intended for your impression (art. 150, inciso VI, point? d? of the Federal Constitution);

-Union, States, Federal District, Territories, Municipalities and respective authorities and foundations (Law No. 8,032, of 1990, art. 2º, inciso I, paragraph "a", Law No. 8,402, of 1992, art. 1º, incisus IV and Act Interpretative Declaratory No. 20, of 2002);

-Bens intended for electronic ballot box (Law No. 9,643, of 1998, art. 1º);

-Equipment and materials intended, exclusively, to the training of athletes and to sports competitions related to the preparation of the Brazilian teams for Olympic games, Paralympics, Pan-Americans, Parapan-Americans and world (Law No. 10,451, 2002, art. 8º, with the essay given by Law No. 11,116, of 2005);

-Temporary export return (Decree-law No. 37, of 1966, art. 92, § 4º, with the wording given by the Decree-Law No. 2,472, of 1988);

-Mercatorate foreign who, correctly described in the transport documents, arrive in the Country by unequivocal or proven error of dispatch, and which is reintended or returned to the outside;

Foreign goods return abroad before the registration of the import declaration, observed regulation edited by the Ministry of Finance (Portaria No. 306, of 1995, of the Ministry of Finance);

- Vessels built in Brazil and transferred by matrix of Brazilian shipping company to wholly owned subsidiary abroad, which return to the Brazilian registry, as the property of the same national company of origin (Law No. 9,432, of 1997, art. 11, § 10);

-Mercatorate damaged or which proves to be worthless for the purposes to which if intended, as long as it is destroyed under customs control, before dispatched for consumption, with no burden on the National Farm (Law No. 10,833, of 2003, art. 77);

-Mercatorate in customs transit of passage, accidentally destroyed (Law No. 10,833, from 2003, art. 77);

-National or nationalized exported goods that return to the Country: a) sent on consignment and not sold at the time limits authorised; (b) returned by reason of technical defect, for repair or replacement; c) on the grounds of modifications to the import systematic by the importing country; d) by reason of war or public calamity; and and) by other factors alheds to the will of the exporter (Decree-law No. 37, of 1966, art. 1º, § 1º, with the essay given by the Decree-Law No. 2,472, of 1988, art. 1º and art. 70 of the Customs Regulation).

PARAGUAY

-Assistance and rescue submission regime, Section 10, arts. 239 and 240 of the Customs Code, Law No. 2.422/04;

-Diplomatic Franchise, Section 9, arts. 237 and 238 of the Customs Code, Law No. 2.422/04, which determines the regime of the franchises of diplomatic and consular character, Law No. 110/92;

- Substitution of goods, Section 11, art. 241 of the Customs Code, Law N ° 2.422/04;

-International postal submission, Section 2. arts. 218 and 219 of the Customs Code, Law No. 2.422/04, Express Shipment, Section 3. arts. 222 and 223 of the Customs Code, Law No. 2.422/04;

-Sample, Section 4, art. 224 of the Customs Code, Law No. 2.422/04;

-General goods in situation of being commercialized, art. 300 of the Customs Code, Law No. 2.422/04;

-Border Traffic, Section 8, arts. 234, 235 and 236 of the Customs Code, Law N ° 2.422/04 (with third countries exclusively);

Agreement of partial scope of cooperation and exchange of goods in the educational and scientific cultural areas, Law No. 367/94;

- Exoneration of tributes to the import and marketing of books, periodicals, and journals. It modifies and extends Law No. 22 of August 6, 1992, Law No. 94/92.

-Reboarding, art. 93, Lei No. 2422/04;

-exemption from payment of the tax for total destruction or loss of goods, art. 267, Customs Code, Law No. 2.422/04;

-Exonera the payment of tributes to the donations bestoed in favour of the State and other institutions and modifies art. 184 of Law No. 1.173/5, Law No. 302/93, Decree No. 6.359/05;

-Law No. 1.095/84, art. 8º, repatriated migrants.

URUGUAY

Diplomatic franchises and exonerations bestoed on retirees and foreign pensioners who radiate in the country (589/986 and 2 7 / 0 0 2; 99/986 and 5 1 1 / 9 9 0; 511/990; 260/00 and Law No. 16,340);

-Regime of import or export to compensate for submissions of goods with defects (CAU);

- Order regime (CAU);

-Regime of commercial samples (CAU);

- Dispatch of craft-Mercatorio that was the object of penalty of pervation or abandonment (CAU);

-Border Trafficking Regime (CAU) (with third countries exclusively);

- Goods imported in the milestone of international technical cooperation agreements, as far as are intended exclusively for the purposes provided for in the agreements (Laws No. 16,187; 16,174; 15,135, Decrees No. 235/00; 530/91; 75/90; 309/90; 334/93 and Decree-Law No. 15,642);

Sports clubs and non-profit associations that carry out imports that have as their sole destination a construction, repair, modification or processing of vessels or ships owned by the association or club, those which will not be able to be transferred, leased or ceded to any title for a period of ten years from the date of their enrollment in the records of the Naval Prefecture, Decree-Law No. 15,657, art 6º;

-Parts permanent politicians or fractions of the same with right to use of inscription with legal personality (Law No. 14,057, art. 91);

-Social assistance institutions: not-for-profit asylums (Law No. 16,226, art. 465), Associations of retirees and pensioners (Law No. 15,851, art. 200), Honorary Commission for the eradication of unhealthy rural housing (Law No. 13,640, arts. 473 and 476);

-Book Law No. 15,913, art. 8º;

-Law No. 16,226, arts. 463 (Impositive Immunity of the State) and 395 (Public Education);

-Exonerations in the milestone of the art. 69 of the Constitution: "Private educational institutions and cultural ones of the same nature will be exonerated from national and municipal taxes, as a grant for their services". As per interpretation given by Law No. 16,226 arts. 448 a 450;

-Cultural Institutes: Law No. 12,802, art.134, Law No. 14,057, art.27, Law No. 16,297, Law No. 16,320, art. 441, Law No. 16,624;

-Associations of university professionals with personality legal: Law No. 13,892, art. 517;

-Donation agreements subscribed to between Uruguay and other States Parties: Decree-law No. 14,189 art. 562, Decree-law No. 14,416, art. 390, Law No. 16,226, art. 220;

-Automobiles for invalids (Law No. 13,102), persons with disabilities (Law No. 16,095).

__________

MERCOSUR ul/ccm/dir. No. 12/06

SPECIAL IMPORT REGIMES

HAVING IN VISTA: The Treaty of Assumption, the Black Gold Protocol and Decisions No. 69/00, 33/05 and 03/06 of the Common Market Council.

XX_ENCODE_CASE_One CONSIDERING:

That Article 2º of the CMC Decision No. 69/00 established the obligation for States Parties to completely remove, by January 1, 2006, the special customs arrangements of import adopted unilaterally.

Which Article 2º of CMC Decision No. 33/05 extended that deadline to December 31, 2007.

That Article 4º of the cited Decision has commissioned the drafting of a list that contains the national import regimes that will be able to remain behold-up for reasons such as their limited economic impact or their non-commercial purpose.

That the CMC Decision No. 03/06 listed such national import regimes in their Annex.

That article 5º of CMC Decision No. 03/06 determined that the Trade Commission was responsible for the update periodical of this list through Guidelines.

THE MERCOSUR TRADE COMMISSION

APPROVES THE FOLLOWING GUIDELINE:

Art. 1-Include, in the Annex to CMC Decision No. 03/06, the special import regimes listed in annex to this Guideline.

Art. 2-States Parties should instruct their respective Representations to the Latin American Integration Association (ALADI) to protocol the present Guideline under the Economic Supplementation Agreement No. 18, pursuant to the Resolution GMC No. 43/03.

Art. 3-States Parties should incorporate the present Guideline to their national legal ordinances before 01 /I/08.

VII CCM EXT-Brasilia, 12 /XII/06

ANNEX

REGIMES TO BE INCLUDED IN THE ATTACHMENT OF DECISION CMC NO. 03/06

Argentina:

-Law No. 24,805, concerning the construction of aqueducts in the Province of La Pampa, on the grounds of its non-commercial purpose;

Uruguay:

-Regime for imports from the Public Sector, substantiated in the following standards:

Law No. 12,804, Art. 387;

Law No. 12,521, Art. 1º;

Law No. 10,062, Art. 1º and 4º (built-in partial text);

Law No. 12,997, Art. 1º and 4º;

Law No. 13,608, Art. 25;

Law No. 16,696, Art. 6º;

Decree-Law No. 15,031, Art. 18;

Law No. 11,907, Art. 33;

Law No. 11,740, Art. 17;

Decree-Law No. 15,103, Art. 1º;

Law No. 5,495, Art. 22;

Law No. 13,892, Art. 423;

Decree-Law No. 14,396, Art. 17;

Decree-Law No. 15,605, Art. 5º;

Law No. 15,903, Art. 141;

Law No. 16,736, Art. 202, 211, 432, and 747 (integrated partial text).