Mercosur Common Nomenclature

Mercosur Common Nomenclature
Name	Mercosur Common Nomenclature
Abbr	MCN
Formed	1991
Jurisdiction	Mercosur
Type	Trade classification system

Mercosur Common Nomenclature is the tariff and statistical nomenclature adopted by the Southern Common Market to harmonize external tariffs and trade data among member states. It functions as a regional adaptation of global classification frameworks and connects customs authorities in Argentina, Brazil, Paraguay, Uruguay, Venezuela and associate members for tariff schedules, trade negotiation and statistical comparability. The nomenclature is instrumental in implementing decisions by the Mercosur Parliament, coordinating policy among the Common Market Council, the Mercosur Trade Commission and national customs agencies such as the Dirección General de Aduanas (Argentina), Receita Federal (Brazil), and Dirección Nacional de Aduanas (Uruguay).

Overview and Legal Basis

The MCN was established under protocols and resolutions stemming from the Treaty of Asunción, the Protocol of Ouro Preto, and subsequent Mercosur Summit declarations to operationalize the Tariff Reactivation Mechanism and the Common External Tariff. Legal instruments referencing the MCN include acts approved by the Common Market Group and adjudications by the Mercosur Trade Commission that interpret tariff headings for dispute settlement. Implementation interacts with bilateral accords such as the Argentina–Brazil Integration Treaty and regional initiatives negotiated with third parties like the European Union, China, the United States, and Association of Southeast Asian Nations partners during trade missions led by presidents like Néstor Kirchner, Luiz Inácio Lula da Silva, and José Mujica.

Structure and Coding System

The MCN mirrors the hierarchical format of international systems with sections, chapters and headings used by customs administrations such as Aduana Argentina, Projeto Radar compliance units in Brazil, and statistical bureaus like Instituto Nacional de Estadística y Censos (INDEC). It uses numerical codes akin to those in the Harmonized System to specify product classifications for commodities including soybeans traded by firms like Cargill, automobile parts exported by Fiat Chrysler Automobiles and electronics from exporters such as Samsung. Coding supports tariff lines used in negotiations attended by delegations from ministries including Ministry of Foreign Affairs (Argentina), Ministry of Economy (Brazil), and agencies like the Inter-American Development Bank during capacity building.

Relationship to HS and TARIC

The MCN is aligned with the Harmonized System maintained by the World Customs Organization but incorporates regional tariff adjustments reflecting the Common External Tariff adopted by Mercosur. It is cross-referenced with EU systems such as TARIC for customs cooperation when engaging with the European Commission on market access, and with multilateral datasets from the United Nations Statistical Commission and World Trade Organization for reporting. Coordination involves technical groups interacting with the International Monetary Fund classification experts and trade policy analysts from institutions like the Economic Commission for Latin America and the Caribbean.

Implementation and Administration

Administration of the MCN is carried out jointly by national customs authorities including Servicio Nacional de Aduanas (Paraguay), Servicio de Impuestos Internos (Chile) where associate arrangements exist, and regional bodies such as the Common Market Group and Mercosur Secretariat. Implementation processes involve training programs delivered in partnership with the World Bank, the Inter-American Development Bank, and university centers like the Universidad de Buenos Aires and Universidade de São Paulo for customs officers and statisticians. Technical committees coordinate with standards bodies including the International Organization for Standardization and the World Customs Organization to ensure compatibility with HS revisions and with national legislatures such as the National Congress of Brazil for legal adoption.

Trade Statistics and Use in Customs Procedures

Customs clearance, origin determination, and tariff application in Mercosur rely on MCN codes recorded in declarations processed by electronic systems like the NOVA System and national platforms such as Siscomex and DGI Uruguay databases. Trade ministries and statistical agencies publish data aligned to the MCN in reports used by exporters including Arauco and Marfrig Global Foods, importers like Petrobras affiliates, and logistics firms like Mercosur Lines. The nomenclature supports rules of origin adjudications in panels composed under mechanisms resembling those used by the World Trade Organization dispute settlement body and bilateral arbitration instances involving entities such as the Chamber of Commerce of Buenos Aires.

Updates, Revisions, and Harmonization Processes

Revisions to the MCN follow schedules coordinated with HS updates promulgated by the World Customs Organization and are negotiated within working groups formed by the Common Market Group and specialist committees with representatives from national customs, trade ministries and research institutes like the Center for International Trade Studies at Universidade Federal do Rio de Janeiro. Harmonization efforts also involve consultations with external partners during negotiations with blocs such as the Pacific Alliance, Mercosur–EU dialogue, and technical assistance from agencies like UNCTAD and OECD. Periodic amendments are published following votes in bodies such as the Mercosur Parliament and administrative orders from customs chiefs to align tariff lines with global commodity markets including soy, beef and automotive supply chains managed by corporations like BRF S.A. and Volkswagen do Brasil.

Category:International trade