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Certificates of origin are suspended for exports of auto parts to Brazil

The Ministry of Economy reported that it suspended the issuance of certificates of origin for exports of auto parts to Brazil under the Economic Complementation Agreement 55 (ACE 55).

The measure is aimed at all users of the tariff preferences established in the framework of Appendix II of that agreement.

As of August 26, 2020, the issuance of certificates of origin for auto parts that are destined for the manufacture of a motor vehicle assembled in the territory of Brazil was suspended.

Auto parts correspond to those included in literal d) of article 1 of the aforementioned Appendix II under the rules of origin Article 5 paragraph I, subparagraphs c) and d), as long as the governments of Mexico and Brazil reach a mutual agreement satisfactory regarding the scope and application of Article 5 of the Fifth Additional Protocol to Appendix II.

Consequently, certificates are not issued, for these criteria, for applications entered in the VUCEM from 9:00 p.m. on Monday, August 24.

Additionally, the Ministry of Economy informed exporters that, to avoid the issuance of certificates of origin that could be rejected, it will cease to authorize Registries of Eligible Products (RPE) for auto parts destined for Brazil, and those that have been authorized until the date.

Certificates of origin

However, it will be possible to use the rules of origin established in Article 5, paragraph I, subsections c) and d) for auto parts that are intended for the manufacture of a motor vehicle assembled in Mexican territory under the AAP.CE No. 55, under the rules of origin Article 5, paragraph I, subsections c) and d).

Finally, the Ministry of Economy reminded users that, if the auto parts to be exported comply with a Regional Content Index of at least 40%, they will be able to continue processing their RPE and requesting their certificates of origin under the usual procedure under the Fifth Protocol standard. Additional, Article 4.

 

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