On June 25, 2025, the MERCOSUR Common Market Council (CMC) signed an agreement (Decisão CMC Nº 1/25) that allows member States of the bloc to incorporate up to 50 tariff codes into the National List of Exceptions to the Common External Tariff (in Portuguese, “LETEC”).

About LETEC

LETEC is a strategic mechanism that allows MERCOSUR countries to impose Import Tax rates distinguished from those established under the Common External Tariff (CET). This instrument gives MERCOSUR countries leeway to either increase or reduce tariffs according to their respective commercial and economic interests.

New limits per MERCOSUR country

The decision authorizes members of the bloc to incorporate up to 50 codes into their respective lists, as follows:

The new limits will remain effective until the expiration dates established previously for each country.

Requirements for using the 50 additional codes in case of tariff reduction

The CMC order provides for specific rules regarding the incorporation of the 50 additional codes in the event of an Import Tax reduction, namely:

• The use of additional codes is restricted to products whose exports to each MERCOSUR member State represent less than 20% of total exports under the MERCOSUR Common Nomenclature (NCM) code subject to the measure.
• Tariff reduction must be limited to 30% of the codes per NCM chapter.

MERCOSUR tariff exemption mechanisms

In addition to LETEC, MERCOSUR allows Brazil to set unilateral tariffs through other mechanisms, such as:

• List of tariff reductions due to supply shortage (Resolução GMC Nº 49/19);
• List of temporary trade imbalance measures (Decisões CMC Nº 27/15 and 90/21);
• Lists of exemptions and ex-tariffs for information technology, telecommunications goods, and capital goods (LEBIT/BK).

Demarest’s International Trade team is available to provide further information and solutions regarding tariff modification procedures aligned with the mechanisms mentioned in this Client Alert.