MERCOSUR ORIGIN REGIME

• Dec. CMC 1/04 and Dec. CMC 20/05 and CCM Dir 4/04, CCM Dir 6/05, CCM Dir 5/06, CCM Dir 10/07, CCM Dir 21 are repealed. / 07, Dir.CCM 12/08 and Dir.CCM 27/08.
• The model form of the previous Certificate of Origin (Annex II of Dec. CMC 1/04) will be accepted until 06/26/2016.
• Until 12/31/2016, the States Parties may require compliance with the MERCOSUR Origin Regime for all intra-zone trade (Dec. CMC 44/10).

Origin Requirements

Fully obtained products (products from the mineral, vegetable and animal kingdoms, extracted, harvested or collected, born and raised in their territory):

• Rule: LXXVII ADDITIONAL PROTOCOL TO AAP.CE / 18 * -CHAPTER III-ARTICLE 3º - ITEM a)

Products made entirely in the territory of any of the States Parties when materials originating in the States Parties are used, solely and exclusively:

• Rule: LXXVII ADDITIONAL PROTOCOL TO AAP.CE / 18 * -CHAPTER III-ARTICLE 3º - ITEM b)

Products in the production of which materials not originating in the States Parties are used, when they result from a transformation process that gives them a new individuality, characterized by the fact that they are classified in a tariff heading (first four digits of the NCM) different from the of the mentioned materials. It is admitted that the CIF value of the inputs that do not comply with the starting jump does not exceed 10% of the FOB value:

• Rule: LXXVII ADDITIONAL PROTOCOL TO AAP.CE / 18 * -CHAPTER III-ARTICLE 3º - ITEM c)

Products for which the requirement established in section c) cannot be met because the transformation process operated does not imply a change in the tariff heading (first four digits of the NCM), it will suffice that the CIF value of the inputs from third countries does not exceed The 40% of FOB value (1):

• Rule: LXXVII ADDITIONAL PROTOCOL TO AAP.CE / 18 * -CHAPTER III-ARTICLE 3º - ITEM d)

Products resulting from assembly or assembly operations carried out in the territory of a MERCOSUR country, using materials originating from third countries, when the CIF value of those materials does not exceed 40% of the FOB value (1):

• Rule: LXXVII ADDITIONAL PROTOCOL TO AAP.CE / 18 * -CHAPTER III-ARTICLE 3º - ITEM e)

Capital Goods must meet an origin requirement of 60% of regional added value.

• Rule: LXXVII ADDITIONAL PROTOCOL TO AAP.CE / 18 * -CHAPTER III-ARTICLE 3º - ITEM f)

Products subject to specific origin requirements (Appendix I - See CCM Dir 41/11). Said requirements shall prevail over the general criteria (lit. c) to f) and shall not be required for fully obtained products (lit.a)) and products manufactured entirely in the territory (lit.b)).

• Rule: LXXVII ADDITIONAL PROTOCOL TO AAP.CE / 18 * -APPENDIX I

* The expression 'AL AAP.CE / 18' can be omitted.

Common Tariff Policy (CAP)
Products imported from third countries that enter the territory of any of the States Parties that comply with the CAP will receive originating treatment (Dec. CMC 54/04 and Dec. CMC 37/05) (detailed in the affidavit prior to the preparation of the Certificate), except when they are incorporated into processed products in the territory of one of the States Parties and are subject to specific origin requirements that imply regional supply or production processes that must be carried out in the region (art.4) .
In the case of products resulting from assembly or assembly operations carried out in the territory of a MERCOSUR country, even using exclusively materials originating from third countries, non-originating materials that have obtained a Certificate of Compliance with the CAP (CCPAC -SI) will receive the treatment of originating (art.7 °).
Materials originating in any of the States Parties that comply with the rules of origin and those materials that receive the treatment of originating from having obtained the CCPAC, which are incorporated into a certain product in a State Party, will be considered originating (art.10 ).
The goods that comply with the CAP will receive the treatment of originating, both with regard to their circulation among the States Parties to MERCOSUR, as well as their incorporation in production processes. To do so, they must receive the identification in the Customs Management Information Systems of the States Parties of the "Certificate of Compliance with the Common Tariff Policy" (CCPAC) (art.23).

Andean Community
Materials originating in the Andean Community (AAP.CE / 59, AAP.CE / 58 and AAP.CE / 36) incorporated into a certain merchandise in the territory of one of the MERCOSUR States Parties will be considered originating in MERCOSUR, provided that :

1. comply with the Regime of Origin of the respective ACEs;
2. have a definitive origin requirement in the respective ACEs;
3. have reached the level of preference of 100%, without quantitative limits, in the four States Parties to MERCOSUR in relation to each of the Andean Countries; and
4. are not subject to different origin requirements, based on quotas established in those agreements.

(art.10)

Regional Added Value
It is understood by "X %" of regional added value the value calculated according to the following formula:

(art.6 °).

Productive Process Integration
In order to establish whether a product is originating under the "Regime for the Integration of Productive Processes in several States Parties to MERCOSUR with the use of non-originating materials" (Dec. CMC 3/05), all stages of the integrated production process, carried out in the territory of one or more States Parties, occur in the territory of the last State Party involved in the process.
The final products produced under this Regime may be exported under the protection of a MERCOSUR Certificate of Origin, issued by the State Party where the last stage of the production process would have been completed (art.12).

Intra-MERCOSUR Product Circulation
All the goods of the tariff universe imported from another State Party and that prove compliance with the MERCOSUR Origin Regime will receive from the Customs Management Information Systems of the States Parties the "Certificate of Compliance with the MERCOSUR Origin Regime" (CCROM-SI) ( art.22).

Products originating from MERCOSUR stored in customs warehouses 
The State Party that has incorporated the “Regime of certification of merchandise originating from MERCOSUR stored in customs warehouses of one of its States Parties” (Dec. CMC 17/03) to its internal legal system and dictated the corresponding Regulations, may carry out operations at through it from the date of the adoption of its regulations.
Likewise, the State Party receiving the merchandise that has not completed the process of incorporation and regulation thereof, may not refuse to recognize the MERCOSUR preference under this Regime.

APPENDIX II
MERCOSUR CERTIFICATE OF ORIGIN

SEE BACK

NOTES

THE PRESENT CERTIFICATE:

• You may not submit deletions, corrections or amendments and it will only be valid if all your fields, except field 14 and field 3 (when the importer and the consignee were the same person), were duly completed;
• It will be valid for 180 days from the date of issue;
• It must be issued within 60 days, counted from the date of issue of the commercial invoice;
• In order for originating products to benefit from preferential treatment, they must have been shipped directly by the exporting country to the destination country;
• The intervention of third-party operators may be accepted, provided that the provisions of Appendix III, subsection A, item j are met.

FILL:
Field 8 (Order No.) - This column indicates the order in which the products included in this certificate are identified.
Field 10 (Name of Products) - The name of the products must coincide with that corresponding to the negotiated product, classified according to the NCM -Common Nomenclature of MERCOSUR- and with which it registers the commercial invoice. In addition, the usual description of the product may be included.
Field 13 (Rules of Origin) - This column will identify the rules of origin with which each product met the respective requirement, individualized by its order number. The demonstration of compliance with the requirement will be included in the declaration to be previously submitted to the authorized issuing entities or distributions.
Field 12 (Value) - The value that appears on the commercial invoice must be entered in this column.

APPENDIX III
INSTRUCTION FOR ENTITIES ENABLED FOR THE ISSUE OF CERTIFICATES OF ORIGIN
Third operator
The filling of the MERCOSUR Certificate of Origin for operations involving a third operator must be carried out as follows:

1. Field 2 (Importer) of the Certificate of Origin must be filled with the name of the importer of the country of final destination of the product.
2. Field 12 (Value) must be filled with the value corresponding to the invoice entered in field 7 (Commercial Invoice) of the certificate.
3. The Certificate of Origin must be issued within 60 days, counted from the date of issuance of the commercial invoice entered in field 7.
4. Field 7 (Commercial Invoice) of the MERCOSUR Certificate of Origin may be completed in the following ways:
   1. with the number and date of the commercial invoice issued by the exporter of the country of origin of the product (first invoice).
      In this case, it must appear in field 14 (Observations) of the Certificate that it is an operation for the account and order of a third operator, as well as the name, address and country of the latter. For the customs clearance of the product in the importing country, it must be indicated, in the form of an affidavit, on the last invoice, that it corresponds to the Certificate of Origin that is presented, citing the number of the same and its date of issue, all it, duly signed by said operator.
   2. with the number and date of the commercial invoice issued by the third operator to the importer of the country of final destination of the merchandise (last invoice). In this case, it must appear in field 14 (Observations) of the Certificate of Origin, that it is an operation for the account and order of the third operator, as well as its name, address and country. For the purposes of control and verification of origin, the data included in the Sworn Statement and in the first invoice will be considered.

Observations
Field 14 (Observations) of the MERCOSUR Certificate of Origin may be used to include any additional information regarding the other fields of the Certificate, without prejudice to the cases expressly established in the MERCOSUR Origin Regime.
You must record:

1. In the case of Dec. CMC 16/07: "regional added value as established in the LXV Additional Protocol to ACE No. 18- ARTICLE 3".
2. In the case of Res.GMC 37/04: "regional added value as established in the LI Additional Protocol to ACE No. 18 - ARTICLE 1".
3. In the case of Dec. CMC 37/05: The order number (s) corresponding to the NCM of the property or goods that have used inputs that comply with the CAP, being recorded as follows: "Order number XX, ZZ : PAC supplies. ”

APPENDIX IV
INSTRUCTION FOR THE CONTROL OF MERCOSUR CERTIFICATES OF ORIGIN BY CUSTOMS ADMINISTRATIONS
Tariff classification errors
In cases of tariff classification errors, and provided that the product described in the Certificate of Origin coincides with the product indicated in the complementary documentation of the customs office, and the correct classification does not imply a change in the origin requirement, nor in the aliquot of the AEC, it will be considered a formal error and the procedure provided for formal errors will be applied.