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Federal government published rules for the use of tariff quotas in trade between Mercosur and the European Union, with benefits for products such as meats, sugar, ethanol, rice, and beverages, while the division among the bloc’s countries is still under negotiation.
The federal government published this Friday (1st) the rules that enable the use of tariff quotas in bilateral trade between Mercosur and the European Union, on the same day the agreement provisionally came into force. The guidelines define how importers and exporters can access tariff benefits provided for in the agreement, with tariff reductions for some products and protection mechanisms for European items.
Tariff quotas will have a limited impact on the trade flow between the two blocs. The Ministry of Development, Industry, Trade, and Services informed that they affect about 4% of exports and 0.3% of imports.
In practice, most trade between Mercosur and the European Union will occur with a reduction or full elimination of tariffs, without quantitative restrictions. Quotas will only be applied to certain products, with specific rules for the entry or exit of goods.
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Mercosur rules still depend on division among countries
The division of quotas among Mercosur countries is still under negotiation. Until a joint definition is reached, each country will continue to operate with its own procedures, without changing the total volume negotiated or the right to access the benefits provided for in the agreement.
This arrangement maintains the functioning of operations while the bloc’s countries advance in internal negotiations. The rule also avoids immediate alteration in access to quotas already foreseen for trade with the European Union.
The restrictions provided for in the quotas aim to protect certain European products. At the same time, they allow part of the goods to enter the European market with reduced tariffs, provided that the established limits are respected.
Imports will follow the order of registration in Siscomex
For imports, products such as vehicles, dairy products, garlic, tomato preparations, chocolates, and confectionery items will now follow a model based on the order of license registration in the Siscomex Single Portal. Access to the quota will depend on availability and the limits applicable to each operation.
To guarantee the use of the quota, the importer will have to link the license to the Single Import Declaration within 60 days. The operation must also respect the limits defined for each case.
The adopted model organizes the use of tariff benefits according to the order of registration. Thus, the procedure now depends on the request made within the system and the analysis of the conditions available at the time.
Mercosur exports include meats, sugar, ethanol, and rice
In the case of exports, quotas cover strategic products on the Brazilian agenda, such as meats, sugar, ethanol, rice, corn, and derivatives. Items such as honey, eggs, and beverages, including rum and cachaça, are also on the list.
Distribution will follow the same principle of order of request, observing the limits of each quota and availability at the time of analysis. After the completion of the procedures, the Mercosur Quota Authorization Certificate will be issued.
This certificate will accompany the merchandise and allow the application of the tariff benefit in the European market. The document will be necessary to confirm that the operation is within the foreseen rules.
On Thursday (30), a 2023 ordinance from the Foreign Trade Secretariat was updated to adapt Brazilian rules for origin certification to new trade agreements. The change strengthens the country’s preparation for the entry into force of the Mercosur-European Union agreement, focusing on simplifying procedures and reducing operational costs for companies.
Among the changes included are the specific Certificate of Origin model for the agreement with the European Union, the expansion of the use of the Electronic Certificate of Origin for strategic markets such as the European Union and India, the authorization of electronic signatures, and clearer rules for self-certification. The ministry stated that the changes increase predictability, reduce bureaucracy, and align Brazil with international best practices, creating a more agile and secure environment for exporters.
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