Government publishes rules for quota use under Mercosur-European Union agreement

Brazil’s Foreign Trade Secretariat (Secex), under the Ministry of Development, Industry, Trade and Services, published on Friday (May 1) the guidelines governing the use of export and import quotas established under the trade agreement between Mercosur and the European Union. The measures set out how the treaty, which entered into force on May 1, will operate in practice and update the rules governing certificates of origin.

According to the ministry, quotas apply to only about 4% of exports and 0.3% of imports. In a statement, the ministry said that most trade between the two blocs will take place under reduced or fully eliminated tariffs, without quantitative restrictions.

The decree enacting the free trade agreement was signed by President Luiz Inácio Lula da Silva on Wednesday (April 29), bringing to a close negotiations that had stretched on for nearly three decades. With the regulation published by Secex, the operational criteria for access to quotas and tariff preferences are now in force.

On the import side, products such as vehicles, dairy goods, garlic, tomato preparations, chocolates and confectionery will follow a first-come, first-served system based on license registration through the Single Foreign Trade Portal, Siscomex. To secure use of the quota, the importer must link the license to the Single Import Declaration, known as Duimp, within 60 days, subject to the limits established for each transaction.

On the export side, quotas apply to products in Brazil’s export basket such as meat, sugar, ethanol, rice, corn and related products, as well as honey, eggs, rum and cachaça. Allocation will follow the order in which requests are submitted, according to the limits of each quota and availability at the time of review. After the transaction, the Mercosur Quota Authorization Certificate will be issued. That document accompanies the shipment and allows the tariff benefit to be applied in the European market.

The division of quotas among Mercosur countries is still under negotiation. Until a joint definition is reached, each country will maintain its own procedures, with no change to the total negotiated volume or to the right of access to the benefits established under the agreement. For products outside the quota regime, tariff access will continue to depend solely on compliance with rules of origin.

Source: Canal Rural

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