Mercosur TEC: Calculating Argentina/Brazil/Paraguay/Uruguay Duty

Mercosur (the Common Market of the South) operates the Tarifa Externa Comun (TEC) as its common external tariff. The TEC applies in principle to all four full members (Argentina, Brazil, Paraguay, Uruguay) on imports from outside the bloc. Intra-Mercosur trade among the four full members is largely duty-free under the bloc's customs union.

For importers shipping into a Mercosur member from outside the bloc, the calculation requires the TEC rate, any national exception, the member-state VAT, and a tangle of additional national charges. This guide explains the mechanics with worked examples for Brazil and Argentina imports.

The TEC structure

The TEC follows the Mercosur Common Nomenclature (Nomenclatura Comun del Mercosur, NCM), an eight-digit code aligned with the HS at six digits. Rates run from 0 to 35 percent. Bands commonly include 0, 2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 22, 25, 30, 35 percent.

Approximate distribution:

• About 12 percent of NCM lines at 0 percent (some raw materials, capital goods, books).
• About 20 percent at 6 to 10 percent (intermediate goods).
• About 35 percent at 14 to 18 percent (semi-finished and finished goods).
• About 25 percent at 20 percent (final consumer goods).
• About 8 percent at 25 to 35 percent (sensitive sectors: textiles, footwear, toys, certain electronics).

National exceptions

Each member state can maintain a national exception list for specific NCM codes. Argentina's list (~100 NCM codes), Brazil's list (~100 codes), Paraguay's list (~600 codes due to its developing-country status), and Uruguay's list (~225 codes due to small-economy status) all allow each country to charge a different rate than the TEC for the listed codes.

Exception lists are gazetted periodically. Importers should always verify the actual applied rate, not just the published TEC, especially for goods in chapters 27 (petroleum), 28-29 (chemicals), 84-85 (machinery and electronics), 87 (vehicles).

Worked example: importing capital machinery into Brazil

A US exporter ships 500,000 USD of industrial machinery (NCM 8479.89.99) to Santos port. TEC rate 14 percent. Brazil is on the BK ("Bens de Capital") list which allows capital goods to enter at reduced duty under certain industrial promotion schemes; assume the BK rate of 0 percent applies here. Brazil federal VAT (IPI on import): 5 percent; ICMS (state VAT, Sao Paulo): 18 percent; PIS-COFINS on import: 9.25 percent; AFRMM (port surcharge): 8 percent of freight.

Freight: 22,000 USD. Insurance: 800 USD. CIF: 522,800 USD.

ICMS in Brazil is famously calculated "by inside" (gross-up). The effective rate on landed cost is about 40 percent of CIF even with the duty waived under BK.

Worked example: importing consumer electronics into Argentina

A US exporter ships 200,000 USD of smartphones (NCM 8517.13.00) to Buenos Aires. TEC rate 16 percent. Argentina has a high import surcharge regime under the PAIS tax and various foreign exchange restrictions.

CIF (assume freight 8,000, insurance 600): 208,600 USD.

Argentina layers multiple anticipations and surcharges. The 78 percent effective rate on FOB is not unusual for finished consumer goods. The PAIS tax (a separate currency-conversion surcharge applied when buying USD to pay the supplier) added more on top, though it has been subject to recent reform.

Argentine importers contend with import licensing (SIRA system since 2023), foreign exchange access (limited supply of official USD), and frequent regulatory changes. The customs duty is one component of a complex equation.

Member-state specifics

Intra-Mercosur trade

Goods of Mercosur origin move duty-free among the four full members. Rules of origin require either wholly-produced or substantial transformation with regional value content of at least 60 percent (FOB-based). A Certificate of Origin (Form Mercosur) is required, issued by the relevant national authority (Argentina IPCVA, Brazil Apex, Paraguay REDIEX, Uruguay UR).

Significant carve-outs:

• Automotive industry has special bilateral arrangements (Argentina-Brazil PAC, Argentina-Uruguay).
• Sugar has bilateral arrangements.
• A small list of sensitive items remained outside free trade circulation longer than the rest.

EU-Mercosur Association Agreement (ratified 2025)

After more than 20 years of negotiation, the EU-Mercosur Association Agreement was ratified in 2025 and entered into force in stages. Key features:

• Progressive elimination of duty on roughly 90 percent of intra-EU-Mercosur trade.
• Beef, ethanol, sugar, poultry covered by TRQs (limited quotas at preferential rates).
• Automotive sector preferences with rules of origin.
• Phase-in over 10-15 years for most lines.

For US exporters, the EU-Mercosur deal is a competitive disadvantage: EU competitors will progressively get lower duty into Mercosur markets while US exporters continue paying full TEC. This may shift sourcing decisions for Mercosur-based assembly/distribution.

Mercosur-third-country deals

Other in-force preferential arrangements:

• Israel: Mercosur-Israel FTA in force.
• Egypt: in force.
• Palestine: in force.
• Mercosur-Andean Community: economic complementarity agreements; partial preferences.
• Mercosur-India: limited preference agreement on a narrow product list.
• Mercosur-SACU: limited preference agreement.
• Mercosur-Singapore: signed 2023, in ratification.
• Mercosur-EFTA: under negotiation.

Customs procedures

Brazil uses Siscomex Importacao. Argentina uses MARIA/SIM. Paraguay uses Sofia. Uruguay uses LUCIA. Each has its own broker requirements, document standards, and timing.

Brazil is famously paperwork-intensive: typical clearance time 5 to 15 days, with documentation requirements including registro de importacao for many products. Argentina's SIRA (sistema de importaciones) import licensing system requires approval before any commercial import.

How the calculator handles Mercosur destinations

When you select a Mercosur destination in the calculator, the engine:

1. Looks up the TEC rate for the NCM code.
2. Checks the national exception list for the destination country.
3. Computes member-state VAT (with the Brazil gross-up complexity).
4. Adds member-state federal levies (Brazil IPI, PIS-COFINS, AFRMM; Argentina statistical fee, anticipations).
5. Notes import licensing requirements.

Related guides

• ECOWAS Common External Tariff: Complete Guide
• EAC Common External Tariff: Sensitive Items and Rates
• CARICOM CET: How Caribbean Imports Are Taxed
• Calculate Import Duty: Brazil to USA
• Incoterms 2020 vs Landed Cost: A Clear Guide
• HS Code Lookup: How to Find Yours

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