2nd Latin America Korea Investors Forum

Mercosur's Common Market Committee on 6 December 2012 issued a resolution (GMC Resolution 37/2012) authorising Argentina and Brazil to continue to apply through the end of 2014 a 35 percent MFN duty on toys classified under NCM 9503.00.10, 9503.00.21, 9503.00.22, 9503.00.31, 9503.00.39, 9503.00.40, 9503.00.50, 9503.00.60, 9503.00.70, 9503.00.80, 9503.00.91, 9503.00.97, 9503.00.98 and 9503.00.99.

In accordance with a previous resolution, Brazil originally increased this duty from 20 percent to 35 percent on 28 December 2010 in an effort to shield domestic producers from mainland Chinese competition, although toy parts and accessories suitable for use solely or primarily with toys of subheading 9503.

00.

99 remained subject to a reduced duty rate of two percent.

Argentina followed suit nearly two years later, on 15 November 2012, and recently issued a decree incorporating GMC Resolution 35/2012 into its domestic legal regime.

As a result, toys imported into Argentina will continue to face a duty rate of 35 percent through the end of 2014.