EU-Mercosur
Rules of Origin
Your product must originate in the EU to qualify for preferential rates. Here's how origin is determined — by product type, transformation rules, and proof requirements.
Key concepts
Wholly obtained
Products entirely produced in the EU: minerals extracted, crops grown, animals raised, fish caught in EU waters. No non-originating materials allowed.
CTH / CTSH
Change of Tariff Heading (4-digit) or Subheading (6-digit). The finished product must be in a different HS heading/subheading than any non-originating inputs.
MaxNOM
Maximum Non-Originating Materials. Non-EU inputs cannot exceed a percentage of the ex-works price (typically 40–50%).
Cumulation
Materials originating in Mercosur used in EU manufacturing count as EU-originating. Bilateral cumulation enables EU-Mercosur supply chains.
Product-specific rules by HS chapter
| HS | Sector | Origin rule | Notes |
|---|---|---|---|
| 01–05 | Live animals, meat, dairy | Wholly obtained | Animals must be born and raised in the EU. Dairy from EU milk. |
| 06–14 | Plants, vegetables, fruits | Wholly obtained | Grown and harvested in the EU. |
| 15 | Fats and oils | Wholly obtained or CTH | Olive oil: olives must be EU-grown. Blended oils: CTH applies. |
| 16–24 | Processed food, beverages | CTH or MaxNOM 50% | Ingredients from non-EU sources allowed if sufficient transformation. |
| 25–27 | Minerals, fuels | Wholly obtained (extracted) | Minerals must be extracted in the EU. Refined fuels: CTH. |
| 28–38 | Chemicals, pharma | CTSH or chemical reaction or MaxNOM 50% | Chemical reaction in EU qualifies regardless of input origin. |
| 39–40 | Plastics, rubber | CTH or MaxNOM 50% | Polymerization qualifies. Extrusion alone may not suffice. |
| 41–43 | Leather, hides | CTH | Tanning of non-originating raw hides qualifies. |
| 50–63 | Textiles, clothing | Fabric-forward or MaxNOM 50% | Weaving + making-up must occur in the EU. Yarn-forward for some. |
| 64–67 | Footwear, headgear | CTH (except from same chapter) | Assembly from non-originating uppers may not qualify. |
| 72–83 | Metals | CTH or MaxNOM 50% | Smelting of non-originating ore qualifies. Rolling/forming: CTH. |
| 84–85 | Machinery, electrical | CTH or MaxNOM 50% | Assembly of components from different headings qualifies. |
| 87 | Vehicles | MaxNOM 45% or RVC 55% | Strict value rule. Battery cells must be EU-made for EVs. |
| 90 | Instruments, medical | CTH or MaxNOM 50% | Assembly with testing/calibration in EU qualifies. |
| 94–96 | Furniture, misc. | CTH or MaxNOM 50% | Assembly of non-originating parts may qualify if CTH met. |
This is a simplified summary. The actual agreement contains detailed product-specific rules at the 6- or 8-digit level. Consult the full Annex on Product-Specific Rules of Origin for your specific NCM code.
General tolerance
A general tolerance of 10% of the ex-works price is allowed for non-originating materials that don't meet the product-specific rule. This means:
- If the product-specific rule requires CTH but a small component doesn't change heading, it's still OK if that component is ≤10% of ex-works price.
- Textiles exception: tolerance is 10% by weight (not value) for fibers, or 10% of total area for fabrics.
- Does not apply to: wholly obtained requirements (agricultural products must still be 100% EU-produced).
Proof of origin
To claim preferential treatment at Brazilian customs, the importer needs proof of origin from the EU exporter:
EUR.1 Movement Certificate
- Issued by customs authorities of the EU member state
- Covers a single shipment
- Valid for 12 months from date of issue
- Standard format used in all EU trade agreements
- Recommended for high-value shipments
Origin Declaration (invoice declaration)
- Self-declaration by the exporter on the commercial invoice
- For shipments ≤EUR 6,000: any exporter can make the declaration
- For shipments >EUR 6,000: only approved/REX exporters
- Must include specific treaty-mandated text
- Faster and simpler than EUR.1
Common mistakes that invalidate origin claims
- • EUR.1 issued after shipment without prior authorization
- • Origin declaration missing the mandatory treaty reference text
- • Goods transshipped through a third country with further processing (breaks direct transport rule)
- • Non-originating inputs exceed MaxNOM threshold due to exchange rate fluctuation
- • Cumulation claimed but Mercosur-origin inputs don't have supporting documentation
Direct transport rule
Products must be transported directly from the EU to Brazil (or vice versa). This means:
- Allowed: direct shipping EU → Brazil
- Allowed: transshipment through a third country (e.g., EU → Singapore → Brazil) as long as goods remain under customs control and are not processed
- Not allowed: goods enter free circulation in a third country before re-export to Brazil
- Not allowed: further processing, assembly, or repackaging in a third country
Verification
Brazilian customs (Receita Federal) can verify origin claims through:
- Document review — checking EUR.1 or origin declaration for completeness and accuracy
- Verification request — requesting the EU exporter's origin records (production cost accounting, input sourcing documentation)
- Verification visit — in rare cases, Brazilian customs may request to visit the EU production facility (coordinated with EU customs authorities)
- Consequence of non-compliance: preferential rate denied, full MFN rate applied retroactively, plus potential penalties