The Roadmap to Zero Tariffs: How to Bring Your Products to the EU with Lower

A "customs duty" is a tax or charge applied to a good when it is imported into a country. Think of it as an entry fee that the EU charges on your products, which increases their final cost to the consumer.

The main objective of this agreement is to reduce or eliminate the customs duties applicable to eligible products. During a transition period, customs duties on certain goods may be reduced in stages, in accordance with the applicable tariff treatment.

What does this mean for you?: Lower or zero customs duties can make your product more competitive in the EU market, which can improve its market access conditions and its sales potential.

However, not all products receive this benefit automatically; they must first comply with the applicable rules to be eligible for preferential tariff treatment.

The tariff benefits of this agreement apply only to Mercosur "originating products." This is a crucial concept you need to master. To be considered "originating in Mercosur" and receive preferential tariff treatment, your product must meet specific criteria set out in the Rules of Origin chapter of the agreement.

There are three main ways your product can qualify as "originating in Mercosur":

Wholly obtained: This is the simplest category. It means your product is grown, raised, or extracted entirely in Mercosur. Examples include mineral products extracted from its soil, plants and vegetable products grown or harvested there, and live animals born and raised there (Art. 3.4).

Produced exclusively from originating materials: This applies to products manufactured in Mercosur using only materials that also qualify as originating in Mercosur. This includes materials originating in the EU (see cumulation below), and there is no need to prove the origin of the energy, machines, or tools used to manufacture the product (Art. 3.12). For example, an orange jam made in Brazil with oranges grown in Mercosur and sugar originating in Mercosur.

Sufficiently worked or processed: If your product is made with some non-originating (imported) materials, it can still qualify. To do so, it must undergo sufficient working or processing within Mercosur to meet the product-specific processing rules set out for that product in Annex 3-B of the agreement. For example, a leather handbag made in Argentina with imported leather meets the rule for these articles (heading 42.02), which only requires that non-originating materials change tariff heading: the leather (Chapter 41) becomes a handbag. Keep two more rules in mind. There is a tolerance: if a non-originating material does not meet the rule, the product can still qualify if that material does not exceed 10% of the ex-works price and the maximums set by Annex 3-B are not exceeded (Art. 3.5; textiles in Chapters 50 to 63 have their own tolerances). And there are simple operations, such as repackaging, labeling, simple mixing, or simple assembly of parts, that are never enough to confer origin (Art. 3.6).

Use of EU inputs (cumulation): This is not a fourth way to qualify, but a rule that helps you meet the previous two. EU-originating materials that you use to produce your goods in Mercosur are considered originating in Mercosur, provided that in Mercosur they undergo more than the minimal operations that do not confer origin, such as repackaging or labeling (Art. 3.3 and 3.6). This means they do not count against you as non-originating materials, which can make it easier for your product to qualify. For example, if the Argentine orange jam company uses EU-originating sugar, that sugar counts as originating in Mercosur. This matters because, for jams, Annex 3-B requires that non-originating sugar not exceed 40% of the product's weight.

How to prove origin: it is not enough for your product to be originating; to obtain the preferential tariff, you must prove it to EU customs with a proof of origin (Art. 3.16). The general form is the statement on origin, made by the exporter themselves on the invoice or another commercial document, using the text in Annex 3-C and indicating "MERCOSUR" as the origin (Art. 3.17). It is valid for 12 months from the date it is issued (Art. 3.18), and the exporter must keep a copy and the documentation supporting the origin for at least 3 years (Art. 3.22). During a transition period of up to 3 years, extendable by 2 more, the EU also accepts a certificate of origin issued by authorized entities (Annex 3-D). Each Mercosur country has its own procedure; in Argentina, for example, the statement is issued through the TAD platform (Disposición SSCE 1/2026). In addition, the product must arrive in the EU as it left, without being altered or transformed along the way (Art. 3.14).

To find out which Annex 3-B rule of origin applies to your product and what tariff it will pay, the next step is to identify it with the corresponding tariff classification code.

3. Your Product's Passport: How to Find Its EU Combined Nomenclature (CN) Code

The Harmonized System (HS) is the international basis for product classification, generally at the six-digit level. Building on that basis, each Party to the agreement uses its own tariff nomenclature, compatible with the HS.

For the European Union, the tariff schedules in Appendix 2-A-1 of Annex 2-A are expressed using the 2013 Combined Nomenclature (CN 2013), which is based on the HS. However, EU customs uses the current CN (in 2026, CN 2026), which is updated every year, so your product's current CN code may not match the CN 2013 line in Appendix 2-A-1, and you will need to correlate the two.

For a Mercosur company seeking to determine the tariff applicable to a product entering the European Union, the relevant step is to identify the corresponding EU Combined Nomenclature (CN) code.

The CN code is essential because the EU's tariff schedule in the agreement is organized according to the EU tariff nomenclature. Once you have identified the applicable CN code, you can locate the corresponding tariff treatment and staging category in the EU tariff schedule.

Practical tip: Check the rate applicable to your product with the EU's official tool: Access2Markets (My Trade Assistant).

Reduce Uncertainty: Advance Rulings (Article 4.6)

Correctly classifying your product is not always straightforward, and getting it wrong can mean costly delays or disputes once your goods reach the border. The agreement addresses this directly through Advance Rulings, provided for in Article 4.6.

Before importation, you can request from the customs authority of the destination EU Member State a written decision on two critical points: your product's tariff classification and its origin status. Once issued, this ruling is valid for at least three years, unless the legislation, facts, or circumstances on which the ruling was based change. Since the ruling is binding only with respect to the person who requested it (Art. 4.6.7), it is advisable to coordinate the request with your importer in the EU.

What does this mean for you? An Advance Ruling turns uncertainty into a planning tool. It gives you greater certainty about your product's classification and origin status before you commit to the shipment, helping you plan your costs, documentation, and timelines and reducing the risk of surprises or problems at the border.

With your product's EU CN code in hand, you can now consult the specific tariff reduction plan that applies to your goods.

4. The Roadmap to Lower (or Zero) Tariffs: How to Use the Tariff Elimination Schedule (Annex 2-A)

Annex 2-A of the agreement is the central document for this process. It sets the general rules (how years are counted, what each staging category means, and how quotas work), and its Appendix 2-A-1 contains the EU schedule, line by line, with the tariff treatment of each product.

Here is how you should use this Annex to find your product's specific tariff treatment:

1. Locate your product: Look up the applicable EU Combined Nomenclature (CN) code in the EU tariff schedule.
2. Identify the Base Rate: Note the customs duty indicated as the base rate for your tariff line in the EU tariff schedule. Tariff reductions are calculated from this rate. Note: if the general (MFN) tariff the EU applies today is lower than the base rate, the calculation is made on that lower tariff, maintaining the margin of preference (Art. 2.4.7).
3. Check the Staging Category: The category indicates how the tariff decreases. In category 0, it is eliminated from the outset. In categories 4, 7, 8, 10, and 15, it decreases in equal annual stages and reaches zero on January 1 of year 4, 7, 8, 10, or 15 of the agreement. Year 0 runs from May 1 to December 31, 2026, and each new reduction applies on January 1; in calendar terms, category 4 reaches zero on January 1, 2030, category 7 in 2033, category 8 in 2034, category 10 in 2036, and category 15 in 2041. Other categories do not reach zero: the "50%" category leaves the tariff at half the base rate, the "EP" categories eliminate only the ad valorem component and maintain the specific duty of the entry price system, and category "E" excludes the product from the preference.
4. Determine the Applicable Rate: Based on the staging category and the applicable year of the agreement, you can determine the preferential rate applicable to your product. For example, with a base rate of 10% in category 4, the tariff stands at 8% in 2026, 6% in 2027, 4% in 2028, 2% in 2029, and 0% from January 1, 2030.

Find the Zero-Tariff Year: Where full tariff elimination applies, the schedule allows you to identify the year in which the customs duty on your product will be fully eliminated.

An important warning: Not all products follow a direct path to zero. Some goods are excluded from tariff preferences, while others are subject to tariff-rate quotas (TRQs) or special staging categories. In the case of a TRQ, a certain quantity may receive preferential tariff treatment, while out-of-quota imports pay, as a general rule, the base rate in the schedule. Before finalizing your export plan, always check whether your product's specific tariff line is subject to any of these special regimes in Annex 2-A.

By following these steps, you can build a clear and predictable financial projection for your export business, turning a complex legal agreement into a powerful growth tool.

5. Your Action Plan: Step-by-Step Checklist

Here is a summary of the entire process, condensed into a clear, actionable checklist for your Mercosur business.

1. Confirm your objective: Understand that the EU-Mercosur agreement can reduce or eliminate customs duties for eligible products, according to the applicable tariff treatment.
2. Verify origin and prepare the statement on origin: Make sure your product qualifies as a Mercosur "originating product" under the rules of the Rules of Origin chapter. This is essential to access preferential tariff treatment. Then, issue the statement on origin (or, during the transition, the certificate of origin) according to your country's procedure (Art. 3.16 and 3.17; Annex 3-D).
3. Determine your EU Combined Nomenclature (CN) code: Classify your product correctly and identify the EU CN code that corresponds to it.
4. Consider an Advance Ruling: If your product's tariff classification or origin raises doubts, consider requesting a written decision from the customs authority of the destination EU Member State on tariff classification or origin, in accordance with Article 4.6.
5. Consult the tariff schedule: Use your EU CN code to locate your product in the EU tariff schedule in Appendix 2-A-1 of Annex 2-A.
6. Analyze your tariff treatment: Identify the base rate, the staging category, and the applicable preferential rate and, where applicable, the year in which the tariff will be fully eliminated. Convert the agreement year to the calendar (year 0 runs from May 1, 2026 to December 31, 2026, and each reduction applies on January 1) and compare the base rate with the EU's current MFN tariff (Art. 2.4.7).
7. Check for special regimes: Check whether your product is subject to a tariff-rate quota (TRQ), an exclusion from tariff preferences, or another special tariff provision. If there is a TRQ, find out how the quota is administered and what certificate you need to access it.
8. Set a competitive price: Use this information to assess your tariff costs, set competitive prices in the EU market, and develop your export strategy. Remember that the agreement lowers the tariff, but not VAT or other domestic taxes in the destination country.

Conclusion: Seizing the Opportunity

By following this roadmap, Mercosur businesses like yours can better understand the tariff opportunities available under the EU-Mercosur agreement and assess how they may affect their export strategy. The EU-Mercosur agreement is more than a document: it is a framework that can help businesses understand and manage market access and international expansion. Use the tools it offers to assess your tariff treatment, plan your costs, reach new customers, and grow your business on the global stage.

If you are interested in this topic, don’t miss the recordings of the Connect+ Europe LAC Edition training cycle. There, you will find sessions dedicated to the EU–Mercosur agreement. Click here to access the recordings on ConnectAmericas Academy.