Brazil — Rules of Origin & FTAs

Brazil's rules-of-origin framework is administered jointly by the Câmara de Comércio Exterior (CAMEX), the Foreign Trade Chamber within the Ministry of Development, Industry, Trade, and Services (MDIC), and the Secretariat of Foreign Trade (SECEX), the executive arm of MDIC responsible for day-to-day foreign-trade administration and import/export controls.

CAMEX holds statutory authority to define rules of origin and procedência (provenance) under Decree 11.428 of 1 March 2023, which sets out the Chamber's mandate to formulate and coordinate policies relating to foreign trade in goods and services, foreign direct investment, and export financing. Article 2 of the predecessor Decree 3.756/2001 explicitly enumerates "regras de origem e procedência de mercadorias" (rules of origin and provenance of goods) among CAMEX's competences in the area of import and export policy, a mandate that continues under the 2023 reorganisation.

Within this delegation, CAMEX Resolution 80 of 9 November 2010 establishes Brazil's non-preferential rules of origin, governing how customs authorities determine the country of origin when goods enter Brazil from jurisdictions with which Brazil does not have a preferential trade agreement. These rules rely on the wholly-obtained criterion (for goods of a single country) or on the substantial-transformation test (measured by change of tariff heading in the Nomenclatura Comum do Mercosul — NCM, Brazil's national implementation of the Harmonized System) when materials from multiple countries are incorporated. CAMEX Resolution 80/2010 transposes into Brazilian law the WTO Agreement on Rules of Origin (Annex 1A to the Marrakesh Agreement, promulgated in Brazil by Decree 1.355 of 30 December 1994).

SECEX implements and enforces CAMEX's origin policy. SECEX Portaria 38 of 18 May 2015 (as amended) sets out the procedural framework for special verification procedures for non-preferential origin (procedimento especial de verificação de origem não preferencial), invoked when Brazilian customs identifies a risk of origin fraud — for example, when imports subject to anti-dumping duties on goods from China arrive with origin declarations from third countries. The procedure allows SECEX to request detailed origin declarations and supporting documentation from the foreign exporter, to conduct on-site verification, and ultimately to issue a determination qualifying or disqualifying the claimed origin. Determinations are published in the Diário Oficial da União (DOU) and bind the Federal Revenue Service (Receita Federal do Brasil, RFB) for customs clearance.

For preferential origin, Brazil applies the origin rules embedded in the text of each free-trade agreement or regional integration instrument. Within Mercosul, the principal instrument is Mercosul Common Market Council (CMC) Decision 01/2009, which harmonises preferential-origin criteria across Argentina, Brazil, Paraguay, and Uruguay; SECEX administers certificates of origin and validates compliance for tariff-preference claims under Mercosul and other bilateral/plurilateral agreements negotiated by Brazil (including those with EFTA, Israel, Egypt, the Southern African Customs Union, and others).

Importers and exporters must register with SECEX through the Integrated Foreign Trade System (SISCOMEX), the electronic platform that handles import licensing, export declarations, and certificate-of-origin issuance. Entities authorised by SECEX (including state-level federations of industry — FIESPs — and chambers of commerce) may issue preferential certificates of origin for Brazilian exports; SECEX itself issues the Form A certificate for exports under the Generalized System of Preferences (GSP).

The division of labour is clear: CAMEX sets origin policy at the regulatory level; SECEX administers the documentary requirements, licensing, verification investigations, and origin determinations; Receita Federal applies the resulting origin classifications at the port of entry for the purpose of duty assessment, quota administration, and trade-remedy enforcement.

Source: Decreto 11.428 de 1° de março de 2023 Source: Decreto 3.756 de 19 de fevereiro de 2001, Art. 2 Source: MDIC — Regimes de Origem (CAMEX Resolução 80/2010; SECEX Portaria 38/2015)

Brazil's preferential rules of origin for intra-Mercosul trade are governed by Common Market Council (Conselho do Mercado Comum — CMC) Decision 05/23, which entered into force on 18 July 2024 and replaced the prior CMC Decision 01/09 regime that had been in place since 2009. CMC Decision 05/23 was incorporated into Brazilian law by Decreto 12.058 of 13 June 2024, which promulgated the 218th Additional Protocol to the Economic Complementation Agreement No. 18 (ACE 18) among Argentina, Brazil, Paraguay, and Uruguay.

Goods qualifying as originating under CMC Decision 05/23 enjoy zero-tariff treatment when traded among the four Mercosul member states, provided the importer presents valid proof of origin (either a certificate of origin issued by an authorised certifying entity or, under the new regime, a self-declaration of origin by the exporter — the "dual-system" model aligned with EU and EFTA best practices).

## Wholly-obtained criterion

Goods are wholly obtained in a single Mercosul state if they fall within one of the enumerated categories in CMC Decision 05/23, including: mineral products extracted from the soil or seabed of that state; vegetable products harvested there; live animals born and raised there; products derived from live animals raised there; products of hunting, trapping, fishing, or aquaculture conducted there; products of sea fishing and other products taken from the sea by vessels registered in that state; waste and scrap resulting from manufacturing operations conducted there; and goods produced there exclusively from the foregoing. A good that is wholly obtained in one Mercosul state is deemed 100% originating for the purpose of tariff preferences.

## Substantial-transformation test — tariff-shift and maximum non-originating materials (MaxMNO)

When a good incorporates materials from non-Mercosul countries (third-country inputs), it qualifies as originating if it satisfies the product-specific rules of origin (requisitos específicos de origem — REOs) listed in Appendix II to CMC Decision 05/23. Each NCM tariff line (Nomenclatura Comum do Mercosul, Brazil's national implementation of the Harmonized System) is assigned one of the following rules:

• MC (mudança de capítulo) — change of chapter: all non-originating materials must be classified in a different HS chapter (two-digit level) from the finished good.
• MP (mudança de posição) — change of heading: all non-originating materials must be classified in a different HS heading (four-digit level) from the finished good.
• MSP (mudança de subposição) — change of subheading: all non-originating materials must be classified in a different HS subheading (six-digit level) from the finished good.
• MaxMNO (valor máximo de materiais não originários) — maximum value of non-originating materials, expressed as a percentage of the ex-works price of the finished good.

The general MaxMNO threshold for Mercosul origin under CMC Decision 05/23 is 45% for industrial products and for 80.5% of agricultural products (measured against the list in Appendix II). This represents a five-percentage-point increase from the prior 40% threshold under CMC Decision 01/09, a change that Brazilian industry federations (including the Confederação Nacional da Indústria — CNI) had advocated for years as essential to fostering regional value chains. In practical terms, a good may incorporate up to 45% (by value) of third-country materials and still qualify as Mercosul-originating, provided the remaining production and value-addition occur within the four member states.

For the 19.5% of agricultural products marked with an **asterisk () in Appendix II, the MaxMNO threshold remains 40%*; these are products for which the Mercosul states judged that a higher third-country content would undermine the policy objective of intra-bloc agricultural integration.

## Differential treatment — Paraguay and Uruguay

Under CMC Decision 06/23 (promulgated in Brazil by Decreto 12.059 of 13 June 2024), Paraguay and Uruguay — the two smaller, less-developed economies in Mercosul — receive more-favourable MaxMNO thresholds to compensate for their smaller industrial base and limited domestic input availability. For the product-specific rules of origin marked with an asterisk in Appendix II:

• Paraguay: MaxMNO of 60% (i.e., Paraguayan producers may use up to 60% third-country inputs and still claim Mercosul origin).
• Uruguay: MaxMNO of 50%.
• Argentina and Brazil: the general 45% (or 40% for the asterisked agricultural products).

This asymmetry — authorised by CMC Decision 16/07, which mandates that exports from Paraguay and Uruguay not face less favourable origin conditions than exports from other countries — aims to preserve the competitiveness of Paraguayan and Uruguayan exporters in intra-Mercosul trade.

## Third-country materials that have "complied with the Common External Tariff" (PTC)

Article 7 of CMC Decision 05/23 (codified in the annex to Decreto 12.058) provides that materials imported from third countries that have entered the territory of a Mercosul state and have complied with the Common External Tariff (Política Tarifária Comum — PTC) are treated as originating materials for the purpose of calculating origin in a subsequent production stage, provided they have received the electronic customs-clearance marker under CMC Decision 54/04 (the "double-taxation elimination" regime, regulated by CMC Decision 37/05). In effect, once a third-country input has paid the Mercosul common external tariff on first entry into one member state and received the electronic Certificado de Cumprimento do Regime de Origem Mercosul (CCROM), that input is "nationalised" for the purpose of subsequent intra-Mercosul trade, and its value does not count against the MaxMNO threshold in the next manufacturing stage. This provision incentivises consolidation of supply chains at the bloc level.

## Insufficient operations

Article 8 of CMC Decision 05/23 lists operations that are insufficient to confer origin, even when performed in a Mercosul state. These include: operations to preserve goods during transport or storage (ventilation, refrigeration, drying, removal of damaged parts); simple assembly or disassembly; packaging, repackaging, or presentation for retail sale; simple mixing of materials; slaughter of animals; simple dilution in water or another substance that does not materially alter the character of the good; simple painting or polishing; and combinations of the foregoing. If the only operations performed in Mercosul are on the insufficient-operations list and the materials used are exclusively non-originating, the good does not acquire Mercosul origin.

## Cumulation

Bilateral cumulation operates automatically among the four Mercosul states: materials originating in one member state retain their originating status when incorporated into a good produced in another member state. Diagonal cumulation with materials originating in countries of the Andean Community (CAN — Colombia, Ecuador, Peru, Bolivia) is governed by CMC Decision 41/03 and GMC Resolution 37/04: CAN-originating materials may be treated as Mercosul-originating for the purpose of the origin calculation, provided the bilateral ACE (Economic Complementation Agreement) between Mercosul and the relevant Andean country contains a definitive origin rule for that material and the final good achieves the minimum regional-value-content threshold specified in that ACE.

## Entry into force and transition

CMC Decision 05/23 was adopted at the 62nd Mercosul Summit in Puerto Iguazú, Argentina, on 3 July 2023. Article 5 of the Decision required the four member states to incorporate it into national law before 1 January 2024. Brazil completed incorporation by Decreto 12.058 of 13 June 2024. The 218th Additional Protocol to ACE 18 entered into force 30 days after the ALADI Secretariat-General (Asociación Latino-Americana de Integración) notified the signatory countries that it had received confirmation from the Mercosul Secretariat that all four states had incorporated the Decision and its companion Decision 06/23. That notification occurred in mid-June 2024, and the new regime became operative on 18 July 2024. Article 2 of CMC Decision 05/23 provides a twelve-month grace period (until 18 July 2025) during which certificates of origin using the old form from CMC Decision 01/09 will continue to be accepted, to facilitate the transition for trade operators.

CMC Decision 05/23 revoked CMC Decision 01/09, GMC Resolution 37/14, and a series of CCM Directives (04/10, 05/10, 14/10, 07/11, 16/11, 33/14, 39/18, 72/18, 37/19, 38/19, 56/19, and 142/21). Decreto 12.058 simultaneously revoked eleven prior Additional Protocols to ACE 18 (Nos. 18.77, 18.83, 18.94, 18.99, 18.106, 18.159, 18.180, 18.182, 18.183, 18.194, and 18.217).

Source: Decreto 12.058 de 13 de junho de 2024 (Incorpora CMC Decisão 05/23 — Regime de Origem Mercosul) Source: Decreto 12.059 de 13 de junho de 2024 (Incorpora CMC Decisão 06/23 — Tratamento diferenciado Paraguai e Uruguai) Source: MDIC Siscomex — Mercosul (ACE 18) — Regime de Origem CMC 05/23

Brazilian exporters claiming preferential tariff treatment for goods shipped to Mercosul partners (Argentina, Paraguay, Uruguay) must provide proof of origin to the importer in the destination country. Under the Mercosul Origin Regime (Regime de Origem Mercosul — ROM) established by CMC Decision 05/23 and incorporated into Brazilian law by Decreto 12.058 of 13 June 2024, exporters may now choose between two methods for proving origin: the traditional Certificate of Origin (Certificado de Origem) issued by an authorised certifying entity, or a Declaration of Origin (Declaração de Origem) — a self-certification completed directly by the exporter or producer on the commercial invoice or another commercial document.

This dual-system approach allows each exporter to choose the method that suits its compliance infrastructure. The new regime took effect on 18 July 2024, with a twelve-month transitional period (until 18 July 2025) during which certificates of origin issued under the old CMC Decision 01/09 form remain valid (Article 2 of CMC Decision 05/23).

## Method 1: Traditional Certificate of Origin issued by authorised entities

The Certificate of Origin is a formal document issued by entities authorised by SECEX (the Secretariat of Foreign Trade) to certify that goods comply with Mercosul origin rules. Authorised certifying entities are designated by SECEX and include state-level Federations of Industry (such as FIESP in São Paulo, FIRJAN in Rio de Janeiro), Federations of Trade Associations (such as FecomercioSP), and Chambers of Commerce and Commercial Associations at state or municipal level. SECEX publishes the list of authorised certifying entities and their credentialed officials; certificates signed by non-authorised entities or non-credentialed individuals are invalid.

The model Certificate of Origin for Mercosul is prescribed in Appendix III to CMC Decision 05/23; it must be completed following the instructions in Appendix IV. The certificate is issued per commercial invoice: each export transaction requires a separate certificate. A Mercosul certificate of origin is valid for 180 days from the date of issuance.

To obtain a certificate, the exporter or producer prepares a Producer's Sworn Declaration (Declaração Juramentada do Produtor) containing the information necessary to substantiate the origin claim — materials used, production operations performed, tariff classification, calculation of the MaxMNO or demonstration of tariff shift — and submits it to the authorised certifying entity along with supporting documentation. The certifying entity reviews the declaration and issues the certificate. Under the new regime, the certificate form includes a field for the number and date of the Producer's Sworn Declaration, creating an audit trail linking the certificate to its underlying documentation (Appendix III, field 12).

Certificates of Origin under the Mercosul regime are available in both paper and digital formats. The Digital Certificate of Origin (Certificado de Origem Digital — COD) is an XML-format electronic document that carries the same legal force as a paper certificate. Since 18 July 2025, all Digital Certificates of Origin must be uploaded and validated through the LPCO module of the Portal Único Siscomex (the Integrated Foreign Trade System); the legacy Siscoimagem system was retired for COD purposes after that date (Receita Federal Comunicado Importação 068/2025).

## Method 2: Self-certification via Declaration of Origin

The Declaration of Origin (Declaração de Origem) permits the exporter or producer to attest to origin directly, without the intermediation of a certifying entity, by including prescribed origin information on the commercial invoice, delivery note, or other commercial document accompanying the shipment.

The regulatory framework for self-certification in Brazil is set out in Portaria SECEX 373 of 18 December 2024, which amended Portaria SECEX 249/2023 (the omnibus regulation governing origin certificates and procedures). Portaria 373/2024 authorises self-certification for Brazilian free-trade agreements that permit it; for Mercosul exports, Brazilian exporters and producers may issue Declarations of Origin under Article 54-A of Portaria 249/2023 (as amended).

Minimum required information for a Mercosul Declaration of Origin is specified in Appendix V to CMC Decision 05/23, and the detailed instructions for completing it appear in Appendix VI. The declaration must include:

• Name, address, email, and telephone of the exporter;
• Name, address, email, and telephone of the producer (if different from the exporter, or if there are multiple producers, a list of producers with the prescribed information; the exporter may declare "Available upon request by the competent authorities" if confidentiality of the producer's identity is desired);
• Description and tariff classification of the product according to the Nomenclatura Comum do Mercosul (NCM), at the 8-digit level; the description must be sufficiently detailed to match the product on the commercial invoice;
• The origin criterion under which the good qualifies (wholly obtained, change of tariff classification, MaxMNO, or cumulation);
• Signature of the exporter or authorised representative;
• Date of the declaration.

The declaration is typed or printed directly onto the invoice or delivery note, or attached as a separate sheet referencing the invoice. The exporter does not need prior authorisation from SECEX to begin self-certifying; the regime operates on a presumption of truthfulness with ex-post verification.

## Record-keeping and verification obligations

Under Article 54-B of Portaria SECEX 249/2023 (as amended by Portaria 373/2024), exporters and producers who issue Declarations of Origin must retain all supporting records for a minimum of five years from the date of issuance of the declaration. Supporting records include bills of materials, invoices and import declarations for inputs, production worksheets, calculations of regional value content, and any other documentation necessary to substantiate the origin claim.

SECEX's Department of International Negotiations (DEINT) has authority under Article 54-B, paragraph 2 to conduct technical visits to the facilities of exporters and producers who issue Declarations of Origin, and to access all records required to verify the accuracy of the origin claim. If SECEX determines that a declaration was false or insufficiently supported, the exporter or producer is subject to administrative sanctions under Article 54-C of Portaria 249/2023, without prejudice to any sanctions imposed by the importing country under the trade agreement. Sanctions include suspension from self-certification for a period determined by SECEX; during the suspension period, the exporter may still obtain Certificates of Origin from authorised certifying entities under the traditional procedure (Article 54-C, sole paragraph).

Exporters who use the traditional Certificate of Origin route face equivalent record-retention requirements: the Producer's Sworn Declaration and supporting documentation must be retained by the producer and made available to SECEX or to the importing country's verification authorities upon request.

## Importer's obligations and customs acceptance

Brazilian importers claiming Mercosul preferential tariff treatment must present valid proof of origin to the Receita Federal do Brasil (RFB), the federal customs authority, at the time of import clearance. Acceptable proof of origin includes:

• A Certificate of Origin (paper or digital) issued by an authorised certifying entity in the exporting Mercosul state;
• A Declaration of Origin completed by the exporter or producer on the commercial invoice or delivery note;
• For goods that have entered the Mercosul customs territory from a third country and complied with the Mercosul Common External Tariff (Política Tarifária Comum — PTC) under CMC Decision 54/04 and 37/05, a Certificate of Compliance with the Common External Tariff (Certificado de Cumprimento da Política Tarifária Comum — CCPTC) or a Certificate of Compliance with the Mercosul Origin Regime (Certificado de Cumprimento do Regime de Origem Mercosul — CCROM), which is an alphanumeric code generated by SISCOMEX or the equivalent system in the other Mercosul state and entered into the import declaration; this code "nationalises" the third-country input for purposes of Mercosul origin cumulation (Receita Federal guidance on CCPTC and CCROM).

The importer must retain the proof of origin for audit purposes. Receita Federal guidance indicates that certain certificate defects — such as a certificate lacking the certifying entity's seal or signature, a certificate issued by a non-authorised entity, a certificate emitted by a non-credentialed official, or a certificate dated more than 60 days after the commercial invoice — are non-rectifiable and may lead to denial of the tariff preference or a requirement to post a guarantee pending resolution. Minor errors that do not affect the substance of the origin claim may be rectified through supplementary certification by the exporting country's authority; substantive errors require issuance of a new certificate or declaration.

## Comparison: certificate vs. self-declaration

The choice between the two methods is a compliance and cost tradeoff:

• Certificate of Origin (issued by authorised entity): the exporter must submit a Producer's Sworn Declaration and wait for entity review and issuance; certifying entities may charge a fee per certificate (though the digital COD is often issued at lower or zero cost); the certificate benefits from the authority and credibility of the certifying entity's seal.

• Declaration of Origin (self-certification): zero issuance fee; immediate issuance by the exporter at the time of shipment; but the exporter assumes full legal responsibility for the accuracy of the origin claim and must maintain robust internal compliance procedures and record-keeping to withstand SECEX technical visits and foreign verification requests.

SECEX's Department of International Negotiations (DEINT) has published a Self-Certification Guide (Guia de Autocertificação) providing step-by-step instructions for Brazilian exporters on how to prepare a Declaration of Origin, which records to retain, and how to respond to a foreign verification request; the guide is available on the SISCOMEX portal.

Source: Decreto 12.058 de 13 de junho de 2024 (Incorpora CMC Decisão 05/23 — Regime de Origem Mercosul) Source: Portaria SECEX 373 de 18 de dezembro de 2024 (Altera Portaria 249/2023 — Autocertificação de origem) Source: MDIC/SISCOMEX — Mercosul (ACE 18) — Regime de Origem CMC 05/23 Source: Receita Federal — Prova de Origem (Importações Mercosul)

Brazil's non-preferential rules of origin govern the country-of-origin determination for imports from countries with which Brazil has no preferential trade agreement. These rules are crucial for anti-dumping/countervailing duties, safeguard measures, import quotas, and trade-remedy enforcement. The legal framework remains anchored in Article 9 of Decree-Law 37/1966 and Article 31 of Law No. 12.546/2011, as well as the WTO Agreement on Rules of Origin (promulgated in Brazil by Decree 1.355/1994).

A key operational instrument, Portaria SECEX No. 87/2021, was amended by Portaria SECEX No. 480 of 24 March 2026 (effective 25 March 2026), which updates procedures for special verification and administrative appeals of non-preferential origin claims. Portaria 480/2026 introduced new deadlines for submission of evidence by importers/exporters, clarified the right to present supplementary documentation before a determination, and adopted electronic-only communication for most phases. The underlying substantive criteria for wholly-obtained goods and the substantial-transformation test (change of four-digit HS heading) remain unchanged under Article 31 of Law No. 12.546/2011. However, administrative timelines for verification and appeal, as well as documentation formats and communication protocols, now follow the 2026 Portaria.

Wholly obtained: Brazil continues to deem unprocessed goods (live animals, agricultural goods, minerals, sea products) as "wholly obtained" in the country of extraction/growth (Law 12.546/2011, Art. 31, I).

Substantial-transformation test: For mixed-origin goods, origin is conferred if the final product is classifiable under a different four-digit HS code than any non-originating input (Art. 31, II). There is no regional value content threshold for non-preferential origin; only the tariff change matters. An anti-circumvention clause applies: if final operations involve only packaging, simple assembly, fragmentation, or similar minor processes, origin is not conferred even if the tariff code changes (Art. 31, §§2–3).

The most recent administrative cases—processed according to the new 2026 Portaria—are published by SECEX in the DOU and are available in summary via the MDIC portal. Importers/exporters subject to verification must now lodge appeals and respond to document requests exclusively via the electronic system, within the updated regulatory deadlines.

Source: Lei 12.546 de 14 de dezembro de 2011, Art. 31 Source: Portaria SECEX 87 de 18 de maio de 2021, alterada pela Portaria SECEX 480 de 24 de março de 2026 Source: Decreto 1.355 de 30 de dezembro de 1994 (promulga o Acordo sobre Regras de Origem — OMC)

Brazil's preferential trade agreements with most of Latin America are negotiated and administered through the Associação Latino-Americana de Integração (ALADI) — the Latin American Integration Association — a regional integration organization established by the Treaty of Montevideo 1980 (Tratado de Montevidéu 1980), promulgated in Brazil by Decreto 87.054 of 23 March 1982. ALADI provides the legal and institutional framework for Brazil to negotiate Economic Complementation Agreements (Acordos de Complementação Econômica — ACEs) and Partial Scope Agreements (Acordos de Alcance Parcial) with other member countries, enabling tariff preferences and regulatory cooperation on a bilateral or plurilateral basis.

The original ALADI signatories to the Treaty of Montevideo 1980 were Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. ALADI currently has 13 member countries (the 11 originals plus Cuba and Panama). The association's objective is to promote regional economic integration and the gradual establishment of a Latin American common market through incremental preferential agreements among subsets of members, with the ultimate goal of progressive multilateralization.

## Treaty of Montevideo 1980 — types of agreements

The Treaty of Montevideo 1980 authorizes member states to negotiate three categories of preferential agreements:

1. Regional Scope Agreements (Acordos de Alcance Regional — AAR), in which all ALADI members participate. The principal Regional Scope Agreement is the Regional Tariff Preference Agreement No. 4 (APTR 04), which establishes a minimum tariff preference that all members grant to one another on specified product lists.

1. Partial Scope Agreements (Acordos de Alcance Parcial — AAP), which do not require participation of all members and may cover specific sectors or themes, such as trade in seeds, cultural goods, or environmental goods.

1. Economic Complementation Agreements (Acordos de Complementação Econômica — ACEs), the most flexible and widely used instrument. ACEs are negotiated among subsets of ALADI members and may range from simple preferential tariff schedules on limited product lists to comprehensive free-trade agreements covering the entire tariff universe, services, investment, government procurement, and other trade disciplines.

Under Article 7 of the Treaty of Montevideo 1980, ACEs are intended to promote the development of member countries through the complementarity of their productive systems, and the progressive multilateralization of ACE commitments is encouraged to deepen regional integration.

## ACE 18 — Mercosul's legal foundation within ALADI

ACE 18, signed on 29 November 1991 in Montevideo and promulgated in Brazil by Decreto 550 of 27 May 1992, is the Economic Complementation Agreement among Argentina, Brazil, Paraguay, and Uruguay that formalizes the Mercosul customs union within the ALADI framework. All Mercosul decisions — including the Mercosul Common External Tariff, the Mercosul origin regime (most recently updated by CMC Decision 05/23, incorporated into ACE 18 by the 218th Additional Protocol and promulgated in Brazil by Decreto 12.058 of 13 June 2024), and intra-Mercosul trade-defense disciplines — are incorporated into Brazilian law as Additional Protocols to ACE 18, which are then deposited with the ALADI Secretariat-General. This dual architecture allows Mercosul to function as a customs union while maintaining ALADI's multilateral preference framework and enabling Mercosul as a bloc to negotiate ACEs with third countries.

## Brazil's principal bilateral and plurilateral ACEs (outside Mercosul)

Brazil participates in more than a dozen ACEs negotiated either bilaterally or as part of Mercosul. The most commercially significant include:

**ACE 35 — Mercosul–Chile**

Signed in June 1996 and promulgated in Brazil by Decreto 2.075 of 19 November 1996, ACE 35 was the first free-trade agreement negotiated by Mercosul with a third country, making Chile an associated state of Mercosul. SISCOMEX reports that the agreement achieved zero tariffs on 100% of the tariff universe (6,811 lines) for trade between Brazil and Chile as of 2015, with the nomenclature updated to NALADI/SH 2012 by Decreto 9.389 of 29 May 2018. ACE 35 was substantially expanded in 2018 by the 64th Additional Protocol (the "Brazil–Chile Free Trade Agreement"), which added disciplines on trade facilitation, services, investment, electronic commerce, government procurement, and technical barriers to trade.

**ACE 36 — Mercosul–Bolivia**

Signed in December 1996 and promulgated in Brazil by Decreto 2.240 of 8 June 1997, ACE 36 establishes a free-trade area between Mercosul and Bolivia (now the Plurinational State of Bolivia). Bolivia was authorized by the Andean Community to negotiate separately with Mercosul; the other Andean Community members negotiated collectively under ACE 59.

**ACE 58 — Mercosul–Peru**

Signed on 30 November 2005 and promulgated in Brazil by Decreto 5.651 of 29 December 2005, ACE 58 entered into force for Brazil and Peru on 2 January 2006. SISCOMEX reports that the agreement's tariff-elimination schedule was completed in January 2019, achieving zero tariffs on 6,524 codes (covering 100% of the tariff universe), except for twelve tariff codes covering sugar, alcohol, tires, and certain textile articles, which remain excluded from the liberalization program. The completion of ACE 58's tariff elimination, together with the earlier completion of ACE schedules with Colombia, Ecuador, Chile, and Bolivia, created a de facto South American free-trade area linking Brazil with all its continental neighbors. ACE 58 includes anti-dumping and countervailing-duty disciplines (Title V), bilateral safeguards (Annex VI), and product-specific rules of origin (Annex V, Appendix 1).

**ACE 59 — Mercosul–CAN (Colombia, Ecuador, Venezuela)**

ACE 59, signed in 2004, established free-trade commitments between Mercosul and the Andean Community countries of Colombia, Ecuador, and Venezuela (Venezuela subsequently withdrew from the Andean Community and joined Mercosul, though its Mercosul accession remains suspended). The agreement's origin rules permit diagonal cumulation with Bolivia and Peru (also Andean Community members covered by ACEs 36 and 58, respectively), allowing materials originating in one Andean country or one Mercosul country to be treated as originating when incorporated into a good produced in another signatory country.

**ACE 53 — Brazil–Mexico (non-automotive)**

ACE 53 is a bilateral agreement between Brazil and Mexico covering all products except automotive goods (which are governed by the separate Mercosul–Mexico ACE 55). Brazil and Mexico have been engaged in multiple rounds of negotiation since 2015 to expand and deepen ACE 53, with the goal of achieving broader tariff liberalization and incorporating disciplines on services, investment, trade facilitation, sanitary and phytosanitary measures, and government procurement. The expansion has not yet entered into force as of June 2026; the existing ACE 53 schedule provides preferential tariff access on a positive list of products.

**ACE 55 — Mercosul–Mexico (automotive)**

ACE 55, negotiated collectively by Mercosul and Mexico, governs trade in automotive vehicles and parts. In March 2019, ACE 55 achieved free trade in the automotive sector between Brazil and Mexico, eliminating tariffs on passenger vehicles, light trucks, heavy trucks, buses, and a wide range of automotive components. The agreement includes specific origin rules for the automotive sector and provisions on regulatory cooperation to harmonize vehicle-safety and environmental standards.

**ACE 62 — Mercosul–Cuba**

Signed in 2006, ACE 62 provides for preferential tariff treatment on positive lists of products traded between Mercosul and Cuba. Tariff preferences are fixed (not progressive elimination), reflecting the different economic systems and trade structures of the parties.

**ACE 2 — Brazil–Uruguay (bilateral, predating Mercosul)**

ACE 2, signed on 20 December 1982, is one of the oldest ALADI agreements and provided for preferential trade between Brazil and Uruguay before both countries became founding members of Mercosul in 1991. After the entry into force of Mercosul (ACE 18), most trade between Brazil and Uruguay has been governed by the Mercosul zero-tariff regime; however, ACE 2 remains formally in force and has been amended by numerous Additional Protocols, including the Protocol of Commercial Expansion (Protocolo de Expansão Comercial — PEC). For practical purposes, ACE 2 is now superseded by ACE 18 for tariff preferences, but it continues to serve as a legal framework for bilateral regulatory cooperation on standards, SPS measures, and cross-border services that are not yet harmonized at the Mercosul level.

**ACE 14 — Brazil–Argentina (bilateral, predating Mercosul)**

ACE 14, signed on 20 December 1990, is the bilateral Economic Complementation Agreement between Brazil and Argentina that served as the immediate precursor to Mercosul. Following the entry into force of the Treaty of Asunción (1991) and ACE 18, trade between Brazil and Argentina has been governed by the Mercosul regime; however, ACE 14 remains in the ALADI treaty registry and has been amended by more than forty Additional Protocols addressing sector-specific issues, including the 45th Additional Protocol (promulgated by Decreto 11.743 of 25 September 2023), which incorporated a Mutual Recognition Agreement on Vehicle Approvals to eliminate duplicative vehicle-homologation testing for passenger cars, light commercial vehicles, and heavy vehicles traded between the two countries. ACE 14 is now primarily a framework for bilateral regulatory cooperation in the automotive, pharmaceutical, and technical-standards sectors, complementing the broader Mercosul disciplines.

## Depositary function and entry into force

The ALADI Secretariat-General in Montevideo serves as the depositary for all ACEs and their Additional Protocols. Each ACE and Additional Protocol enters into force 30 days after the Secretariat-General notifies the signatory countries that it has received confirmation from all parties that the agreement has been incorporated into their national legal systems. In Brazil, incorporation occurs by presidential decree (after congressional approval if required), and the Ministry of Foreign Affairs (Itamaraty) notifies ALADI of the decree's publication. Numerous Brazilian decrees incorporating ACE Additional Protocols recite this procedural framework, including Decreto 12.058 of 13 June 2024 (218th Additional Protocol to ACE 18) and Decreto 12.059 of 13 June 2024 (219th Additional Protocol to ACE 18).

## Practical significance for Brazilian importers and exporters

Brazilian importers claiming preferential tariff treatment under an ACE must present valid proof of origin to Receita Federal at the time of customs clearance. The form of proof of origin — certificate issued by an authorized certifying entity, digital certificate, or self-declaration — depends on the specific ACE and is prescribed in the agreement's origin annex. For example, ACE 58 (Mercosul–Peru) uses a certificate-of-origin model similar to Mercosul's (Annex V to the ACE), while ACE 35 (Mercosul–Chile) permits both certificates and self-declarations under the 64th Additional Protocol's facilitation provisions.

Brazilian exporters must ensure that goods comply with the product-specific rules of origin of the relevant ACE. Each ACE has a distinct origin regime, and the rules for a given tariff line under ACE 35 (Mercosul–Chile) may differ from the rules for the same tariff line under ACE 58 (Mercosul–Peru) or under the Mercosul intra-bloc regime (CMC Decision 05/23). SECEX maintains a consolidated tariff-preference query tool within the SISCOMEX portal (accessible at www.gov.br/siscomex), allowing exporters to look up the applicable tariff preference and origin rule for any NCM code under any ACE in which Brazil participates.

ALADI supports a Digital Certificate of Origin system enabling authorized certifying entities in member countries to issue, transmit, and validate certificates of origin in electronic format, reducing paperwork and clearance times for intra-ALADI trade.

Source: Decreto 87.054 de 23 de março de 1982 (Promulga o Tratado de Montevidéu 1980 — ALADI) Source: Decreto 5.651 de 29 de dezembro de 2005 (Promulga ACE 58 — Mercosul–Peru) Source: Decreto 12.058 de 13 de junho de 2024 (Incorpora CMC Decisão 05/23 — Regime de Origem Mercosul, 218º Protocolo Adicional ao ACE 18) Source: Decreto 11.743 de 25 de setembro de 2023 (Incorpora 45º Protocolo Adicional ao ACE 14 — Reconhecimento Mútuo de Homologações Veiculares Brasil-Argentina) Source: MDIC/SISCOMEX — ALADI (overview of ALADI framework and Brazil's ACE agreements) Source: MDIC/SISCOMEX — Mercosul–Chile (ACE 35) Source: MDIC/SISCOMEX — Mercosul–Peru (ACE 58)

Brazil’s preferential tariff treatment under Economic Complementation Agreements (Acordos de Complementação Econômica — ACEs) with non-Mercosul partners—such as Chile (ACE 35), Peru (ACE 58), and Mexico (ACE 53/55)—is subject to compliance with product-specific rules of origin (Requisitos Específicos de Origem, REOs). Each ACE’s annex on origin sets binding REOs for each NCM (Mercosul Common Nomenclature, HS-based) tariff line. The applicable REO may be a change of tariff classification, a regional value content (RVC) calculation, specific processing operations, or a combination, depending on the tariff item and the agreement text.

ACE 35 (Mercosul–Chile): The 64th Additional Protocol (2018), incorporated in Brazil by Decreto 9.389/2018, contains annexes listing REOs for each NCM code. For many industrial goods, the REO requires a change of tariff heading (cth, i.e., four-digit HS code). Some tariff lines include an additional value-content requirement, with the percentage threshold stated in the annex itself—percentages are not uniform, and both cth and value-content requirements should always be checked against the actual annex. Certain lines permit self-certification of origin, but only as expressly provided in the text and facilitation protocols.

ACE 58 (Mercosul–Peru): Annex V in Decreto 5.651/2005 sets out REOs which may require a change of heading, a regional value content (commonly in the 40–50% range), or both. For example, the annex sets a 50% ex-works minimum RVC for various machinery, but unique requirements apply by product. Agricultural goods often require wholly obtained status or more restrictive changes (e.g., chapter or subheading). The agreement text and annexes, not summary lists, control.

ACE 53/55 (Brazil–Mexico, Mercosul–Mexico—automotive): Automotive trade under ACE 55 is governed by protocols cited in decrees such as Decreto 8.841/2016, with REOs regularly combining high regional value content and specific manufacturing processes. Non-automotive goods in ACE 53 use cth or cth+RVC rules, but each tariff line must be verified against the operative annex version.

RVC calculation: RVC = [(Ex-works Price – Value of Non-Originating Materials) / Ex-works Price] × 100. The precise method (ex-works vs. FOB, eligible cost inclusions) is always defined in the individual ACE’s origin annex or its application protocols. Practitioners should treat percentage or processing thresholds as controlled by each schedule—illustrative ranges are for orientation only.

Finding the REO: The MDIC/SISCOMEX portal publishes the authoritative REO annexes for all ACEs to which Brazil is a party and provides a lookup by NCM code. Documentary and record-keeping requirements are prescribed in each agreement’s implementing decree and SECEX instructions; retention periods and verification procedures may vary, so practitioners should confirm in each agreement and supporting regulation.

Failure to satisfy the applicable REO generally disqualifies the good from preferential tariff treatment, resulting in application of the MFN rate under Brazil’s TEC (Tarifa Externa Comum) or national deviations. Enforcement and audit procedures are governed by Receita Federal and SECEX under the enabling decrees.

Source: Decreto 5.651 de 29 de dezembro de 2005 (ACE 58 — Mercosul–Peru, Annex V Requisitos de Origem) Source: Decreto 9.389 de 29 de maio de 2018 (ACE 35 — Mercosul–Chile, 64º Protocolo Adicional) Source: MDIC/SISCOMEX — ACE agreements and REO query tool

Brazilian importers or exporters who receive a negative origin determination—whether under preferential or non-preferential rules—can contest this through established administrative procedures, and, if necessary, judicial review. The appeal procedures depend on whether the decision was issued by the Secretariat of Foreign Trade (SECEX) under origin verification procedures or by the Federal Revenue Service (Receita Federal do Brasil, RFB) during customs clearance.

SECEX origin determinations — administrative appeal procedure: When SECEX issues a final origin ruling under Portaria SECEX 38/2015’s special verification regime (procedimento especial de verificação de origem não preferencial), the notified party (importer or exporter) may file an administrative appeal (recurso administrativo) with SECEX’s Department of International Negotiations (DEINT). The deadline is ten calendar days from notification, unless a more specific procedural rule applies (Portaria SECEX 38/2015, Arts. 57–60, in force since 18 May 2015). The appeal must state the factual and legal grounds and attach supporting documentation. DEINT reviews the case and issues a final administrative decision—this is the last administrative instance within SECEX.

Receita Federal customs decisions — administrative tax appeal: When RFB denies preferential origin or reclassifies a good at import clearance, the importer may file an objection (impugnação) under the federal tax litigation code, Decreto 70.235/1972 (Arts. 146–149, in force since 6 March 1972, as amended by Lei Complementar 227/2026). Notably, Lei Complementar 227/2026 (effective 13 January 2026) updated rules across the tax litigation code regarding how deadlines are counted, periods of suspension, and timeframes for response/appeal. The procedural hierarchies for appeal (customs office, DRJ, then CARF) are unchanged, but precise deadlines may differ from previous versions; practitioners must check the operative language at the time of use. The full factual record and legal arguments—including evidence on origin or tariff treatment—are considered. CARF’s decision is final within the executive branch.

Judicial review: After exhausting administrative avenues at SECEX or RFB, an affected party may file suit in the federal courts for judicial review. The federal codes do not prescribe specific procedures for origin disputes in this context; aggrieved parties proceed under general administrative law. Note: The sources below do not specify whether the filing of an appeal or suit automatically suspends duty payment or preference denial—this is not confirmed as of 2026-06-15.

Source: Portaria SECEX 38/2015, arts. 57–60 (gov.br) Source: Decreto 70.235/1972, arts. 146–149 (Código de Processo Administrativo Fiscal, as amended by Lei Complementar 227/2026)

Cumulation allows materials or processing originating in certain partner countries to be counted as originating for the purposes of an origin determination under Brazil's free-trade agreements (FTAs) and Economic Complementation Agreements (ACEs). Brazilian operators need to distinguish sharply between the main types: bilateral (two-party), diagonal (three or more, with compatible protocols), and regional (bloc-wide, such as Mercosul), and understand the required documentation for each route—because the consequences for getting it wrong are substantial, ranging from denial of preferences to duty liability.

1. Bilateral cumulation (Mercosul and select ACEs)

Materials or processing originating in one Mercosul member (Argentina, Brazil, Paraguay, Uruguay) are treated as originating in another member for Mercosul origin claims, as per Art. 3 and Annex III of CMC Decision 05/23, incorporated into Brazilian law in Decreto 12.058/2024. The same principle applies, as permitted by the specific ACE, in agreements like ACE 58 (Mercosul–Peru) and ACE 36 (Mercosul–Bolivia). The certificate of origin (or declaration, per Annex IV, CMC 05/23) for the input must be available to tie the originating status to the final product.

2. Diagonal cumulation (Mercosul–Andean Community agreements: ACE 59, ACE 58)

Diagonal cumulation allows originating materials from one FTA/ACE partner to count when used in production in another FTA party, but only where: (1) all parties are bound by compatible origin protocols, and (2) the underlying agreements explicitly provide for this. For example, Annex V, Appendix 2 of ACE 58 states the conditions under which Peruvian and Mercosul-originating inputs used in each other’s territory qualify. Each input must be supported by the specific Certificate of Origin from the originating country (model Annex V, ACE 58); all final processing and origin calculation must meet the criteria imposed by Appendix 1 (change in tariff heading or RVC threshold as set out for that NCM position).

3. Regional cumulation (Mercosul-wide aggregation)

Regional cumulation is codified in CMC Decision 05/23, Decreto 12.058/2024, Art. 3º and Annexes III/IV. Inputs originating in any Mercosul state aggregate toward the origin test. The documentary proof must be maintained per Annex III (certificate of origin issued by authorised entity) or Annex IV (declaration of origin—self-certification) for each batch of contributing material.

Restrictions and Documentation Checks

Many ACEs restrict cumulation sharply. For example, ACE 35 (Mercosul–Chile) allows only bilateral cumulation (Annex 3, Art. 10) and explicitly bars diagonal cumulation: operators cannot count Chile-origin material as “originating” when further processed in Brazil and combined with, say, Peruvian material. Always check the protocol: failure to supply a complete audit trail—certificate or declaration of origin for each contributing input, tied to the eligible cumulation—will result in preference denial. If diagonal cumulation is claimed but not permitted by the harmonised protocols, Receita Federal will apply the MFN rate.

Practical Checklist

• Present for every cumulated input: (1) Certificate/Declaration (per agreement annex) proving eligible origin; (2) Invoice or bill tying the input to the final item; (3) For diagonal cumulation, ensure the chain matches the annex cross-references (Annex V, ACE 58; Annex III, CMC 05/23).
• Do not rely on summaries—use the actual decree/annex texts and cross-verify via SISCOMEX protocol links.

Source: Decreto 12.058 de 13 de junho de 2024 (CMC Decisão 05/23 – Mercosul) Source: Decreto 5.651 de 29 de dezembro de 2005 (ACE 58 – Mercosul–Peru, Annex V and Appendices) Source: MDIC/SISCOMEX — ACE agreements overview and links

Brazilian importers claiming preferential tariff treatment under a Free Trade Agreement (FTA) or Economic Complementation Agreement (ACE) with Receita Federal must present proof of origin for each import in strict accordance with SECEX Portaria 249/2023 (as amended), Receita Federal operational rules, and the terms of the specific agreement. Failure to follow these procedures results in denial of preference and MFN-rate assessment.

Importer documentation checklist (2026):

1. Valid Certificate or Declaration of Origin:

• Submit either a certificate of origin from a SECEX-authorized entity, or — only where permitted (e.g., Mercosul per CMC 05/23) — a Declaration of Origin (self-certification). The certificate or declaration must use the exact text and format prescribed by the agreement and implemented in Brazil—for example: Appendix III/IV of CMC 05/23 for Mercosul, Annex V of ACE 58 (Peru), Annex III of ACE 35 (Chile) (Portaria SECEX 249/2023, Art. 53; see also Receita Federal guidance).
• For certain goods processed with third-country inputs that complied with the Mercosul Common External Tariff, include the relevant CCPTC/CCROM certificate (Portaria SECEX 249/2023, CMC 05/23; only where expressly allowed).

1. Direct linkage to shipment documents:

• The certificate or declaration must reference the commercial invoice and match the details entered in the import declaration (DI or DUIMP in SISCOMEX) (Portaria SECEX 249/2023, Art. 54-A; Receita Federal, Prova de Origem).

1. Filing and submission:

• Original or digitally certified documents should be registered in the Portal Único Siscomex as part of the customs clearance process. For Digital Certificates of Origin (COD), use the LPCO module; for physical certificates, upload scans if required by agreement procedures or SISCOMEX technical notes. Refer to each FTA’s annexes and Receita Federal’s operational instructions for submission specifics. (Unable to confirm comprehensive SISCOMEX submission details from Portaria/Receita sources as of 2026-06-15.)

1. Validity and form requirements:

• Certificates and declarations must be within their period of validity; for Mercosul, the general period is 180 days from issuance (CMC 05/23, Appendix III), but this may differ by FTA/ACE. Always confirm the relevant decree or annex for precise dates. Certificates require all prescribed stamps, signature, and (if digital) full XML authentication. Incomplete, unsigned, or late-issued certificates are non-rectifiable defects (Portaria SECEX 249/2023, Art. 53; Receita Federal guidance).

1. Supporting records and retention:

• Importers must retain the certificate/declaration and all supporting commercial paperwork for at least 5 years from date of import (Portaria SECEX 249/2023, Arts. 53, 54-B). Failure to do so can result in preference loss, retroactive liability, and penalties.

Frequent mistakes triggering preference denial:

• Submitting a certificate not issued by a SECEX-authorized (or credentialed) entity (Portaria SECEX 249/2023, Art. 53)
• Using a declaration of origin where not permitted under the FTA/ACE (Portaria SECEX 249/2023, Art. 54-A)
• Certificate not referencing import invoice/shipment (Art. 54-A)
• Certificate expired, incomplete, or altered (Art. 53)

Receita Federal’s online guidance and the MDIC/SISCOMEX portal provide further agreement-by-agreement requirements. Do not rely on unofficial summaries—use the original decree and Portaria text, and cross-verify for every FTA.

Source: Receita Federal — Prova de Origem (Importações Mercosul) Source: Portaria SECEX 249 de 20 de setembro de 2023 (Texto Consolidado, atualizado até maio de 2026)

Brazil imposes administrative, customs, and criminal penalties for submitting false, fraudulent, or materially incorrect origin claims in both preferential and non-preferential contexts. Practitioners face risk under three primary frameworks: (1) administrative sanctions (SECEX); (2) customs penalties (Receita Federal, under the Customs Law); and (3) criminal prosecution for tax/customs fraud.

1. Administrative sanctions — SECEX and Portaria SECEX 249/2023 Article 54-C of Portaria SECEX 249/2023 provides that exporters or producers who submit false declarations of origin, or who fail to properly retain supporting records for at least five years, are subject to administrative sanctions. These sanctions explicitly include suspension or cancellation of the right to issue self-declarations or certificates of origin, and exclusion from accreditation lists. Article 55 additionally states that SECEX may apply sanctions provided for in the agreement or in the regulation, and that determinations are notified to parties concerned. The exact monetary penalties or durations of suspension may be specified by the relevant trade agreement or by further regulation. The regulation does not define a right to appeal beyond the procedures already present in the Portaria; practitioners should confirm current appeal options in the operative version.

2. Customs/fiscal penalties — Decreto-Lei 37/1966 (Customs Law) Article 94 of the Customs Law (Decreto-Lei 37/1966) provides that importers who present untruthful or incomplete documents to obtain tariff preferences (or other customs benefits) may incur a fine equal to the value of the duties that would have been collected, as well as suspension of import privileges in case of recurrence (the text: "suspensão do exercício das atividades de importação"). Seizure and forfeiture of goods may also apply if intent to defraud is established (art. 96). The penalties apply regardless of whether a false origin certificate or declaration is the mechanism used to secure the benefit.

3. Criminal penalties — Lei 8.137/1990 Articles 1–2 of Lei 8.137/1990 address crimes against tax order, including customs fraud involving "falsificação ou alteração de documento fiscal" (falsification or alteration of fiscal/customs documents). Penalties range from two to five years' imprisonment, in addition to fines. The law applies where intent to defraud is present; negligence or honest error is not separately addressed. Referral to federal prosecutors is standard if Receita Federal or SECEX investigations uncover evidence meeting the statute’s criteria.

The underlying statutes and Portaria should be read as they appear—if any more lenient treatment or additional procedural rights exist, they are not stated in the cited texts as of 2026-06-16. Practitioners must assume strict application unless the current published regulation or law expressly provides otherwise.

Source: Portaria SECEX 249 de 20 de setembro de 2023 (Arts. 54-C, 55) Source: Decreto-Lei 37 de 18 de novembro de 1966, Arts. 94–96 (Customs Law) Source: Lei 8.137 de 27 de dezembro de 1990, Arts. 1–2 (Crimes contra a ordem tributária)

Not every process performed in Brazil or a partner country is sufficient to confer origin for preferential tariff treatment under a Free Trade Agreement (FTA) or Economic Complementation Agreement (ACE). Across Brazil’s FTAs and ACEs—including Mercosul (CMC Decision 05/23), Chile (ACE 35), Peru (ACE 58), and Mexico (ACE 53/55)—agreements include express lists of “insufficient operations.” If a good undergoes only these minimal processes, it does not qualify as originating, even if other origin tests (like change in tariff heading) are formally satisfied.

What are “insufficient operations”? The detailed list of insufficient operations is annexed to each agreement. Examples typically include:

• Packaging, repackaging, or labeling for shipment or retail sale;
• Simple mixing or dilution without material change in character;
• Simple assembly, mounting, or disassembly of parts;
• Sorting, selection, washing, painting, or polishing;
• Fractioning into lots, splitting, or classification by grade or size;
• Preservation operations (chilling, drying, freezing) to enable storage;
• Slaughter of animals;
• Combinations of such processes.

Why does this matter? Under CMC Decision 05/23 (Mercosul) Appendix I, change of tariff heading alone does not confer origin if the final processing is limited to insufficient operations. For example: affixing a label to a finished product; assembling imported kits into finished retail packaging; or bottling, repackaging, or relabeling cosmetic imports. If all non-originating materials are used and operations performed in Brazil are only on the insufficient operation list, the goods will not gain Brazilian origin—Section 8, CMC 05/23; similarly, see Annex V, Appendix 6, ACE 58 (Peru).

Agreement-by-agreement: the rule is not identical

• Mercosul: CMC 05/23, Appendix I, Article 8.
• ACE 58 (Peru): Annex V, Appendix 6 enumerates insufficient operations verbatim.
• ACE 35 (Chile) and ACE 53/55 (Mexico): Each has a distinct insufficient operations annex with minor textual and scope differences. Always check the operative agreement text for the specific NCM/HS code—do not rely on general summaries.

Practical risk: Many origin-verification disputes and preference denials arise from misclassifying simple assembly as substantial transformation. Receita Federal and SECEX regularly audit for this, and audits target products known for “tolling” operations (e.g., relabeling electronics, bottling imported liquids, assembling knockdown kits).

Checklist: Before certifying Brazilian origin on any FTA shipment, confirm:

• The final processing in Brazil is more than an insufficient operation under the specific agreement’s annex;
• All relevant paperwork ties processing steps to the origin claim;
• You can substantiate value-add beyond mere packaging or assembly.

Source: Decreto 12.058 de 13 de junho de 2024 (CMC Decisão 05/23, Regime de Origem Mercosul) Source: Decreto 5.651 de 29 de dezembro de 2005 (ACE 58 — Mercosul–Peru, Annex V) Source: Decreto 9.389 de 29 de maio de 2018 (ACE 35 — Mercosul–Chile, 64º Protocolo Adicional) Source: MDIC/SISCOMEX — ACE agreements and REO query tool

Brazil does not have a formal advance binding origin ruling system analogous to the well-known BTI (Binding Tariff Information) and BOI (Binding Origin Information) programs operated by the EU or to U.S. CBP origin rulings. Under the current legal and regulatory framework—anchored by CAMEX Resolution 80/2010 for non-preferential origin, SECEX Portaria 38/2015 (effective 18 May 2015) for verification procedures, and Portaria SECEX 249/2023 (effective 20 September 2023) for proof and contestation of origin—a Brazilian importer or exporter cannot proactively secure an advance, case-specific, binding origin determination from SECEX or Receita Federal prior to import or export filing.

Instead, Brazil’s administrative practice is to review origin claims ex post—either at the point of customs clearance (Receita Federal assessing proof-of-origin), or retrospectively upon origin-check investigations ("procedimento especial de verificação de origem"). Origin may become definitively established only when SECEX issues an official determination (determinação de origem) in the context of a special verification procedure, typically triggered by import monitoring, anti-dumping enforcement, or risk profiling—rather than a request from the operator. These determinations are binding for the case at hand, and subject to appeal per Portaria SECEX 38/2015 (arts. 57–60), but their effect does not extend as prospective, operator-driven advance rulings.

For preferential origin (Mercosul and ACE agreements), SECEX and delegated certifying entities review origin compliance at the time of certificate/declaration issuance but do not issue advance origin opinions with binding effect for future shipments outside the framework of certificate regularization or verification procedures. No official regulatory avenue—via SISCOMEX or direct submission to SECEX—exists for a requested, consultative, or binding advance origin opinion pre-import/export as of June 2026.

Brazilian operators needing legal certainty on origin position must rely on internal legal analysis, follow regulatory guidance, or, if challenged during customs clearance, seek judicial review after administrative exhaustion. Only tariff classification advance rulings (classificação fiscal) are explicitly formalized under Receita Federal procedures; origin is not covered.

Source: SECEX Portaria 38/2015 (procedimento especial de verificação de origem) Source: Portaria SECEX 249/2023 (regras para comprovação de origem na importação) Source: MDIC Guidance — Regimes de Origem (CAMEX Resolução 80/2010)

Under Brazil’s updated Mercosul origin regime (effective 18 July 2024, via Decreto 12.058/2024, incorporating CMC Decision 05/23), a critical provision enables materials from non-Mercosul (“third”) countries to be treated as originating for preferential-tariff purposes if specific conditions are met. This mechanism, generally known as the “CCROM regime” (Certificado de Cumprimento do Regime de Origem Mercosul), prevents double application of the Mercosul Common External Tariff (CET) across supply chains and allows for strategic value-chain structuring within the bloc.

Legal framework

• CMC Decision 05/23, Annex (Art. 7): Codifies the treatment in Mercosul law—third-country inputs are counted as originating if they entered the customs territory of any Mercosul state, complied with CET, and received an electronic customs-clearance marker per CMC 54/04 and CMC 37/05.
• Decreto 12.058/2024: Incorporates the entire updated Mercosul regime into Brazilian law.
• CCROM process: Materials imported from outside Mercosul pay the CET at initial importation (typically at DUIMP/SISCOMEX entry). The importer or subsequent user registers the CCROM event in SISCOMEX, linking the NCM position, volume/quantity, and corresponding declaration. This CCROM code serves as the proof that double-taxation elimination applies.

Practical application

• Once a CCROM is assigned to third-country goods that have paid the CET and entered free circulation, such goods—if used in further production in Brazil, Argentina, Paraguay, or Uruguay—are treated as "originating" for calculating the originating status of the final product. Their value does not count toward the maximum non-originating materials (MaxMNO) threshold or the applicable regional value-content test for downstream Mercosul origin claims.
• This mechanism is especially significant for industries with upstream consolidation models (auto, electronics, processed foods). For example, imported Chilean steel (from outside Mercosul) pays full CET upon first arrival in Brazil; after issuance of a CCROM event, it may be used in a Brazilian factory and “nationalised” for origin in subsequent exports within Mercosul, reducing the compliance burden and risk of preference loss.

Documentation and compliance

• The CCROM event and code must be properly recorded in SISCOMEX at each stage. For customs clearance and preferential-tariff claims, the downstream exporter must present the CCROM event code, invoice linkage, and corresponding proof of CET payment as part of the origin documentation package.
• Receita Federal and SECEX may request supporting CCROM documentation during audits or ex-post verification. Failure to produce valid CCROM registration or use CCROM for materials not actually nationalised (i.e., that did not pay CET or were not properly cleared) will result in denial of preference and possible sanctions for misstatement of origin.

Sources and references

• The CCROM regime is detailed in Art. 7 of the Annex to CMC Decision 05/23 (Decreto 12.058/2024), with operational details in CMC Decisions 54/04 and 37/05 and corresponding SISCOMEX technical notes.

Source: Decreto 12.058 de 13 de junho de 2024, Art. 7, Annex (CCROM — Regime de Origem Mercosul) Source: Mercosul CMC Decision 54/04 — double-taxation elimination (link via MDIC/SISCOMEX)

Brazil’s rules of origin and FTA protocols address the treatment of goods that are exported from Brazil and later returned—whether due to repairs, defects, warranty claims, or commercial returns. The core regulatory foundation is provided by Decree-Law 37/1966 (as amended), SECEX Portaria 249/2023, and by the specific provisions on reimportation found in Mercosul and ALADI FTAs. For importers and exporters, accurate identification of the status and eligibility of returned goods is critical for both duty assessment and proof-of-origin compliance.

Non-preferential context (Brazilian law)

Under Article 70 of Decree-Law 37/1966 and Receita Federal IN RFB 1.702/2017, Brazilian-origin goods that are exported and subsequently returned to Brazil within five years, without having undergone operations abroad other than necessary repairs or restoration, may re-enter the country free of import duties. The goods must retain their original identity and must not have been altered except for repair, cleaning, or restoration necessary for their return. If there is value addition or transformation abroad, the returned good loses its original Brazilian origin for customs purposes, and only the Brazilian-origin portion may be exempted from duties—the foreign value-add becomes dutiable. Returned goods must be identified in SISCOMEX as regime code 1.402/1.403, with supporting documentation maintained for audit by Receita Federal.

FTAs (Mercosul, ACE)

Under Mercosul’s CMC Decision 05/23 and its implementation in Decreto 12.058/2024, returned goods are addressed implicitly: Article 2 and related annexes define “originating” goods but do not attribute origin status to goods simply because they have been returned post-export. Goods repaired in another Mercosul state may retain originating status upon return only to the extent allowed by the specific FTA or ACE protocol—generally, the certificate or declaration must clearly state the repair/return, and supporting evidence (including the original export documents and repair invoices) must be produced.

ALADI ACEs typically incorporate the same discipline: under ACE 58 (Annex V, Appendix 8), for example, returned goods repaired abroad may enter with tariff exemption only for the value attributable to the original exported good; the value of new parts or labor originating outside the region is dutiable and does not confer origin. No “tolerance” or de minimis rule provides for full duty exemption or originating status unless expressly stated in the relevant protocol.

Returned goods are not automatically considered “originating” under any of Brazil’s FTAs if they received value-add or material transformation abroad. Strict administrative compliance is required—operators must provide clear audit trails linking the returned goods to their original export, document the absence (or nature) of foreign operations, and record all events in SISCOMEX.

Exporters and compliance leads should review each applicable FTA annex and SISCOMEX technical notes for any derogations or sector-specific exceptions, as the standard rule does not permit origin status for reimports with substantive foreign value-add.

Source: Decreto-Lei 37 de 18 de novembro de 1966, arts. 70–72 (regime de reimportação) Source: Receita Federal IN RFB 1.702 de 21 de março de 2017, arts. 44–48 (reimportação) Source: Decreto 12.058 de 13 de junho de 2024 (Mercosul — CMC Decisão 05/23) Source: Decreto 5.651 de 29 de dezembro de 2005 (ACE 58 — Mercosul–Peru, Annex V)

The “de minimis” rule—also known as the “tolerance rule” (regra de tolerância)—plays a vital role in Brazil’s preferential trade agreements (FTAs) and the post-2024 Mercosul origin regime. This rule allows a limited proportion of non-originating materials to be disregarded when determining a product’s qualification for preferential origin, enabling goods on the compliance margin to qualify for preference where strict origin tests might be narrowly missed.

Mercosul: CMC Decision 05/23 and Decreto 12.058/2024 Article 11 of the Annex to CMC Decision 05/23, incorporated into Brazilian law by Decreto 12.058/2024 (effective 18 July 2024), sets a clear tolerance: for products not qualifying under the wholly-obtained criterion, up to 10% of the ex-works value (for industrial goods) or up to 10% of the net weight (for agricultural and processed food products) may consist of non-originating materials and will be disregarded for origin purposes. This means that, provided the product passes its relevant product-specific rule of origin (REO)—such as a required tariff shift or a maximum value of non-originating materials (MaxMNO)—a minor non-originating input won’t block preference if it stays within the 10% threshold.

Limits: The de minimis cannot be used to exceed a maximum non-originating materials threshold (MaxMNO) prescribed for a good under the specific REO in Appendix II to CMC 05/23. It also does not apply where an REO or sectoral appendix expressly excludes use of the tolerance (these exceptions are specified for certain product categories in the agreement text).

Example: If an industrial product has a MaxMNO of 45% for non-originating materials in its REO, using 9% of non-originating material under the de minimis rule would only be permitted if, altogether, the total non-originating content remains within 45%, inclusive of the de minimis portion. The 10% rule is not additive to the MaxMNO—it is a fallback for “small” third-country content within otherwise compliant goods.

ALADI ACEs: Other major FTAs—such as ACE 58 (Mercosul–Peru)—incorporate nearly identical de minimis language. Annex V, Appendix 1, Article 6 of ACE 58 also sets a 10% threshold (by ex-works value for industrial goods, net weight for agricultural/food), subject to the restriction that it cannot be used to exceed an REO’s maximum value-content ceiling or if specifically excluded for a product. Exact text and sectoral exceptions should always be checked in the operative annex for each agreement—some ACEs may specify different tolerance levels or further product exclusions.

Definitions:

• REO (Requisito Específico de Origem): The product-specific origin rule (e.g., tariff shift, MaxMNO, processing test) set for each NCM/HS tariff line by CMC Decision 05/23 or in each ACE annex.
• MaxMNO: Maximum value (or sometimes net weight) of non-originating materials permitted, typically expressed as a percentage, for a good to qualify as originating. If the sum (including de minimis) breaches the MaxMNO, origin is denied.

Recordkeeping: Documentary support for use of the de minimis rule—including bills of materials, cost sheets, and calculation of non-originating inputs—must be maintained in the records supporting the producer’s declaration or certificate. Receita Federal and SECEX can verify these calculations through audit.

Goods not qualifying for the de minimis tolerance—whether by exceeding the threshold or breaching a listed exception—will not obtain preferential treatment and will be assessed at the MFN tariff rate. Practitioners should always review the actual agreement text for the relevant product/sector.

Source: Decreto 12.058 de 13 de junho de 2024 (CMC Decisão 05/23, Art. 11 – de minimis rule, Mercosul) Source: Decreto 5.651 de 29 de dezembro de 2005 (ACE 58 – Mercosul–Peru, Annex V) Source: MDIC/SISCOMEX – Agreements and REO search