New Mercosur origin regime adopts simple rules and strengthens trade

The new Mercosur Origin Regime (ROM) was approved on Tuesday (4) during the bloc’s summit meeting in Puerto Iguazú, Argentina. The new text adopts international best practices, simplifies current standards, and enhances the agility of the verification and origin control mechanism.

One of the changes in the ROM is a 5% increase in the limit of imported inputs for a product to be considered of Brazilian origin. Therefore, a maximum of 45% of the raw materials can be purchased outside Mercosur for a product to be considered national. This flexibility applies to 100% of industrial products and 80.5% of agricultural products, while the remaining 19.5% maintains the percentage at 40%. Argentina has the same rule as Brazil, while Paraguay and Uruguay have limits on imported inputs of 60% and 50%, respectively.

According to Márcio Elias Rosa, the Ministry of Development, Industry, Commerce, and Services (MDIC) executive secretary, “this measure represents a significant step towards strengthening economic integration in the region and increasing the competitiveness of Brazilian companies in the international market.”

Simplified proof of origin

The rules of origin are part of trade agreements to ensure that the goods that will benefit from reducing or eliminating tariffs come from the bloc’s member countries. In the case of Mercosur, products considered to originate from the bloc’s countries (Brazil, Argentina, Paraguay, and Uruguay) can circulate between the four economies without the incidence of import tax.

One of the simplified measures is the proof of origin. Companies engaged in trade between the bloc’s countries can now make a self-declaration of origin, eliminating the need for a Certificate of Origin issued by qualified entities.

The new ROM began to be negotiated in 2019, based on the most modern commercial agreements in the world. Among the good experiences is the single list with the rules of origin for all products. This gives more clarity and transparency for importers and exporters.

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