EU-Mercosur Sector
Machinery & Equipment
93% of EU machinery exports to Brazil will reach 0% duty within 10 years. The largest sector benefiting from the agreement.
Tariff reduction schedule
The table below shows the preferential EU-Mercosur rates for key machinery headings. Categories: E0 = immediate elimination, A10 = linear reduction over 10 years, B10 = back-loaded reduction over 10 years.
| HS | Product | MFN | Year 0 | Year 4 | Year 10 | Cat. |
|---|---|---|---|---|---|---|
| 8428 | Lifting/handling machinery | 14% | 11.2% | 7% | 0% | A10 |
| 8429 | Bulldozers, graders, excavators | 14% | 14% | 10.5% | 0% | B10 |
| 8443 | Printing machinery | 14% | 11.2% | 7% | 0% | A10 |
| 8455 | Metal-rolling mills | 14% | 0% | 0% | 0% | E0 |
| 8457 | Machining centers | 14% | 11.2% | 7% | 0% | A10 |
| 8458 | Lathes (CNC and manual) | 14% | 11.2% | 7% | 0% | A10 |
| 8459 | Drilling/milling machines | 14% | 11.2% | 7% | 0% | A10 |
| 8462 | Forging/stamping machines | 14% | 0% | 0% | 0% | E0 |
| 8474 | Sorting/crushing machines | 14% | 11.2% | 7% | 0% | A10 |
| 8479 | Industrial robots, misc machinery | 14% | 11.2% | 7% | 0% | A10 |
| 8501 | Electric motors and generators | 14–18% | 14% | 10.5% | 0% | B10 |
| 8504 | Transformers, power supplies | 14–18% | 14% | 10.5% | 0% | B10 |
| 8537 | Electrical control panels | 14% | 11.2% | 7% | 0% | A10 |
| 8543 | Electrical machines NES | 16% | 12.8% | 8% | 0% | A10 |
Rates are indicative based on the agreement's tariff schedule (Annex 2-A). Actual preferential rate depends on the specific 8-digit NCM code. Verify with your customs broker.
Rules of Origin for machinery
To qualify for the EU-Mercosur preferential rate, machinery products must meet the following origin rules:
Chapter 84 — General rule
Change of Tariff Heading (CTH) — the finished machine must be classified in a different 4-digit heading than any non-originating materials used. Alternatively: MaxNOM 50% (maximum 50% non-originating materials by ex-works price).
Chapter 85 — General rule
CTH or MaxNOM 50%. For electrical motors (8501) and generators: CTH at the 6-digit level is sufficient. Semiconductors: CTSH (change of tariff subheading).
Cumulation
Components originating in Mercosur countries and used in EU manufacturing count as EU-originating. This benefits EU machinery manufacturers that source parts from Brazil or Argentina.
Savings example
A German manufacturer exports a CNC machining center (HS 8457.10) worth EUR 250,000 CIF Santos:
| Scenario | II rate | II amount | Savings |
|---|---|---|---|
| MFN (no preference) | 14% | EUR 35,000 | — |
| EU-Mercosur Year 0 (2026) | 11.2% | EUR 28,000 | EUR 7,000 |
| EU-Mercosur Year 4 (2030) | 7% | EUR 17,500 | EUR 17,500 |
| EU-Mercosur Year 10 (2036) | 0% | EUR 0 | EUR 35,000 |
At full liberalization, the German manufacturer saves EUR 35,000 per machine on import duty alone. Over 100 machines/year, that's EUR 3.5 million in annual savings — before considering the cascading effect on IPI, PIS/COFINS, and ICMS bases.
Key EU exporter countries
- Germany — machine tools, automotive equipment, industrial robots. Largest EU machinery exporter to Brazil.
- Italy — packaging machinery, food processing equipment, textile machinery. Second largest in this sector.
- France — aerospace components, nuclear equipment, electrical systems.
- Spain — construction machinery, renewable energy equipment.
- Netherlands — semiconductor equipment (ASML), agricultural machinery, pumps.