WT/TPR/S/50 Trade Policies Review
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III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) INTRODUCTION
1. Today, Uruguay's major trade policy instrument is the tariff, whose structure and level has
been determined by the programme of conv ergence towards the MERCOSUR Common External
Tariff (CET) since 1995.  The MFN tariff rates in 1998 range from 0% to 23%, including a temporary
increase of 3 percentage points agreed by the MERCOSUR partners, which has raised certain appliedrates beyond bound rates negotiated during the Uruguay Round.  This tariff structure provides higher
effective protection than is indicated by the nominal tariff.  Tariff escalation is reinforced by
Uruguay's concessionary regimes, which include tax and duty exemptions to selective activities,
temporary admission and drawback for goods used in export production, and free-trade zones, as well
as by the recent, temporary increase of the CET, which applies only to certain goods, excluding mostbasic goods and inputs.
2. The reference price system previously applied by Uruguay was eliminated in 1994, adding
transparency to the trade policy regime.  Minimum "export" prices remain in force, mainly on textiles
and sugar.  As the number of goods subject to this measure decreases, Uruguay has started to make
use of anti-dumping procedures, even though no final measures have yet been applied.
3. Even though the role of the State remains important, a substantial reform of the public sector
has taken place since 1990.  In particular, certain state-owned enterprises have become regulatory
bodies, while value-added services are supplied by private enterprises.  An example is the
privatization of port services, which has resulted in cost reductions and an increase in efficiency at the
ports and which, together with the simplification of  both import and export procedures, has been a key
element in the development of Uruguay's trade.
4. Uruguay is in the process of updating its legislation on intellectual property rights, dating
from the 1930s and 1940s.  Uruguay has no competition law;  the increasing role of the private sector
as well as MERCOSUR requirements suggest that an in itiative may be needed in this area to improve
conditions of competition within the Uruguayan economy as it becomes further integrated at the
regional and global level.
(2) M
EASURES DIRECTLY AFFECTING IMPORTS
(i) Registration, documentation, and rules of origin
5. Only commercial firms, industrial firms or individuals listed in the Registry of Importers at
the Banco de la República Oriental del Uruguay  (BROU) may legally import products into Uruguay.1
Customs operations must be requested, declared and authorized in written form by means of a
customs declaration.  The same formalities apply to merchandise subject to and exempt from importduties.
2
6. In 1992, in order to simplify customs procedur es, the Single Import Document (DUI) for
dispatching merchandise was adopted.3  The DUI's original print-out has to be submitted to the
National Customs Office with the following original documents:  a certificate of origin (for labelling
                                                     
1 Bureau of National Affairs, Inc. (1997), and National Trade Data Bank and Economic Bulletin Board
- STAT-USA, U.S. Department of Commerce, http ://tradeport.org/cgi-bin/banner.pl/ts/countries/-
uruguay/index.htlml, 19 November 1997.
2 Law No. 15.691, 7 December 1984.
3 Decree No. 333/92, 16 July of 1992.Uruguay WT/TPR/S/50
Page 27
purposes or preferential treatment), a phyto- and zoo-sanitary certificate (for goods subject to such
controls – see later), the bill of lading, the commercial invoice, a packing list (if not explicit in the
commercial invoice), and the declaration of value.  Without such documentation the DUI will not be
processed.4
7. The customs broker, through an electronic system, inputs the information required to
prepare/complete the DUI, namely basic information on the importer and the shipment.  Thisinformation is checked by the computer programme;  if it is complete and accurate, the taxes and
duties levied on the imported merchandise are calculated and payment may be made.  All duties and
taxes  have to be paid in full at the BROU and, once paid, the broker can print out the processed DUI,
which has to be presented to the National Customs Office.  The DUI is submitted and processed in a
different manner according to the port-of-entry's infrastructure and facilities.  Additional procedures,such as translation of documents into Spanish and photocopying, may also be required.
5
8. In order to expedite the dispatch of perishables, goods imported in case of  emergency and
goods imported in bulk, customs brokers can use a Simplified Import Declaration (DSI).6  As in the
case of the DUI, the customs broker enters the basic information about the importer and the shipment
through the electronic system and pre-pays all duties and charges.  After payment it is possible toprint the processed DSI which is then presented to Customs with the certificate of origin (where
required) and other original documents, even if they are provisional.  Additional procedures, which
include obtaining different stamps, photocopies, translations, etc., vary according to the customs
house according to its infrastructure and facilities.  Moreover, a complete DUI with other original
documents has to be presented a posteriori  by the customs broker.
9. This simplified mechanism cannot be used to disembark merchandise subject to compulsory
certificates or eligible for fiscal exemptions, nor when the National Customs Office requires aninvestigation to determine the value of the imported good.
7
10. The National Customs Office verifies the documentation and about 20% of the merchandise.
Verification takes place at the depot of the importer, who is liable for the inspection charges.8
11. The BROU charges a commission for the services rendered related to the import procedures.
This is not based on the cost of the service;  rather, the rate varies according to the c.i.f. value ofimports:  a commission of 1.1% is levied on imports of less than US$10 million, 0.65% on imports
between US$10 and US$20 million, and 0.35% on imports that exceed US$20 million.
9  T h e
Executive may authorize the BROU to increase the commission up to 3%.10  Consular fees are not
                                                     
4 Article 33, Decree No. 570/94, 29 December 1994 , Official Journal No. 24212 of 10 January 1995
and Import Procedures, O/D ( Orden del Día )  No. 3/96,  8 January 1996.
5 Import Procedures, O/D  No. 3/96, 8 January 1996.
6 Goods eligible for the simplified procedure include:  perishables such as meat, fish, milk and other
dairy products, eggs, fruits, legumes, other food items, plants and fresh flowers;  live animals;  organs, blood,and plasma;  perishables to be used in medical resear ch, radioactive material, inflammable material, weapons
and  munitions;  medicines and vaccines;  scientific and medical material;  materials to be used in printed media,
radio and television;  goods transported in bulk, Import Procedures, O/D No. 3/96, 8 January 1996).
7 Import Procedures, O/D No. 3/96, 8 January 1996.
8 Decree No. 334/92, 16 July 1992.
9 Circular No. 98/23, 9 July 93, and Resolution of the  BROU, 28 August 1996.
10 Law No.16.492, 2 June 1994.WT/TPR/S/50 Trade Policies Review
Page 28
required since there is no need to authenticate or "legalize" documents.11  No documents are required
to release foreign exchange for imports.12
12. Sanitary and phytosanitary certificates, in duplicate, are required for animals, products of
animal origin, plants, seeds and similar products.13  These may be obtained from official sanitary or
agriculture authorities in the country of origin and should state that the shipment has been inspected
and is free of disease.14  The National Customs Office will only allow the entrance of products of the
sea with a prior authorization from the Uruguayan National Fisheries Institute (INAPE).  INAPE has
to inspect and authorize fish products, including when they enter Uruguay under the temporary
admission regime.15  Imports of seeds also require prior authorization of the National Institute of
Seeds, where they have to be registered.16  Similarly, importers of poultry meat have to be registered
at the National Meat Institute (INAC) in the Regist ry of Exporters and Importers of Poultry Meat.17
13. Oil, hydrocarbon and their by-products are under the control of the National Administration
for Fuel, Alcohol and Portland Cement (ANCAP), a st ate-trading enterprise.  ANCAP has to authorize
the entry of such goods before Customs will process the DUI or the DSI.18  Importers of alcohol and
alcoholic beverages no longer require authoriz ation from the ANCAP to import;  however, the
importer must register with the ANCAP.  The items to be imported are also subject to a similarregistration requirement.  Registrations are valid for five years.
14. Other goods such as textiles
19, vehicles20, phonograms, and weapons are subject to special
import requirements.  Imported textiles (HS Chapters 51-55 and 58-63) have to undergo a technical
analysis to verify their content and determine if they are subject to minimum export prices
(section (2)(ii)(g) of this Chapter).21  This verification can be undertaken only in Montevideo.22
Imports of explosives, weapons, munitions and hazardous chemical substances require an importpermit, granted by the Material and Arms Service after verification of all the required importdocuments and applications.
23  Importers of phonograms when submitting import documents to
Customs must include a certificate issued by the General Association of Authors of Uruguay
(AGADU) to demonstrate compliance with copyright rules, unless they already have a contract with
AGADU.24
15. In recent years, the time taken to clear imports has been reduced;  perishables are cleared
within 24 hours of their arrival, while other goods take a maximum of 48 hours.  The authorities
attribute this improvement to the simplification of verification procedures, such as verification at the
                                                     
11 Dun & Bradstreet Information Services (1997).
12 IMF (1997a).
13 Shipments of fresh fruit, plants, seeds, potatoes, parts of plant, beef, prepared meats, milk and milk
products, fish, shellfish, molluscs, poultry, all live animals, tobacco, and all products of similar nature require asanitary certificate (Bureau of National Affairs, Inc., (1997));  Decree No. 14/93, 12 January 1993;Dun & Bradstreet Information Services (1997);  and Law No. 16.811 (Seeds), 21 February 1997.
14 Bureau of National Affairs, Inc. (1997).
15 Decree No. 149/97, 5 May 1997.
16 Law No. 16.811, 21 February 1997.
17 Resolution No. 47/93 of the  National Meat Institute (INAC), 15 April 1993.
18 O/D No. 89/95, 19 September 1995.
19 O/D No. 46/97, 11 June 1997.
20 O/D No. 115/96, 7 November 1996;  O/D No. 122/96, 27 November 1996;  Decree No. 152/97,
14 May 1997;  and O/D No. 57/97, 11 July 1997.
21 O/D No. 46/97, 11 June 1997.
22 O/D No. 97/95, 30 October 1995.
23 Decree No. 91/93, 24 February 1993.
24 Decree No. 134/95, 28 March 1995.Uruguay WT/TPR/S/50
Page 29
depot, and to the reform of the Uruguayan ports (C hapter IV).  However, while customs requirements
have been simplified, they continue to be somewhat cumbersome, with variations according to
product and the port of entry.  To rectify this situation, in December 1997 a decree to continue the
modernization of customs was approved.  The proposed reforms entail customs decentralization and
computerization, as well as the creation of a unified procedure;  a single window for import
formalities, which would further streamline the system, is now under consideration.  Key to thisreform is the completion of the renegotiation of  the MERCOSUR Customs Code, due to be finalized
in July 1998.  (An earlier version of the Code was negotiated but never entered into force.)
Transit
16. Goods may be re-shipped only after having been consigned to a local commercial firm or
representative who will be responsible for any irregularities. Goods to be re-shipped are cleared in thesame way as goods cleared for entry.
25
17. In 1996, the Control, Transit, and Guarantees Office, a dependency of the National Customs
Office, was created to control and regulate transit operations of cigars, cigarettes, tobacco
(MERCOSUR Common Nomenclature, NMC 24.02), and whisky (NMC 22.08.30).26  These goods
are subject to a different transit regime, including the use of a special form and of a guarantee depositequivalent to 100% and 140%, respectively, of the customs value of the merchandise.  The guarantee
is reimbursed once the transit operation is finalized.
27
18. Uruguay is a signatory to the Customs Conven tion on the International Transport of Goods.28
The convention is designed to standardize documentation requirements and to facilitate international
movement of goods on road motor vehicles through one or more member countries to the country of
destination.29  As a result, since 15 December 1991, a specific form (MIC/DTA) is the required
document for goods in transit within MERCOSUR.30  In addition, within the framework of LAIA, an
agreement to facilitate the transportation of goods among MERCOSU R countries was signed
in 1994.31
(ii) Tariffs
(a) Structure (average tariff levels, tariff range and tariff escalation)
19. Uruguay agreed with its MERCOSUR partners  on a common external tariff (CET) in
December 1994, and on 1 January, 1995, the CET entered into effect on imports from non-member
countries, at rates ranging between 0% and 20%.32  As discussed below, the rates for some goods were
recently temporarily increased to 23%.  A number of sectors have been temporarily excluded from the
CET;  these include sugar, automobiles and parts, capital goods, and informatics and
telecommunication goods.  The rates for the latter three products are scheduled to conform to the CETby the year 2006, at which time the maximum rates will be 14% for capital goods and 16% for
                                                     
25 Bureau of National Affairs, Inc. (1997).
26 O/D No. 79/96, 6 September 1996.
27 Decree No. 353/96, 5 September 1996, Official Journal No. 24.615, 6 September 1996.
28 The other MERCOSUR countries, as well as Chile, Bolivia and Peru, are signatories to this
convention.
29 Bureau of National Affairs, Inc. (1997).
30 Article 1, O/D No. 153/91, 13 December 1991.
31 Decree No. 299/95, 8 August 1995, Official Journal No. 24, 29 August 1995.
32 Decree No. 466/95, 29 December 1995.WT/TPR/S/50 Trade Policies Review
Page 30
informatics and telecommunication goods.33  Common sugar and automotive regimes for
MERCOSUR are to be adopted by the year 2001.34  Each member of MERCOSUR has an additional
exception regime – a national list of products whose rates are those established in the separate tariff of
each country.35  Argentina, Brazil and Uruguay can maintain their exception regimes until the
year 2001, while Paraguay has been allowed to maintain the exceptions until the year 2006.36
20. Goods included in the Regime of Final Adjust ment to the Customs Union, which are items
considered to be especially sensitive, are temporarily exempt from duty-free treatment within
MERCOSUR.37  Uruguay and Paraguay must phase out this regime by the year 2000, and Argentina
and Brazil by 1 January 1999.  The duties levied on these goods are being reduced according to a
progressive, lineal and automatic calendar.  Uruguay's list includes pharmaceuticals, plastics,
automobile parts, textiles and dairy products.38  An additional list of goods not covered by the CET
includes those goods that are to be included in the Regime of Final Adjustment to the Customs
Union.39  Duties specified on this list apply both to intra- and extra-regional trade;  rates are to
conform to the CET by the year 2000.40  Uruguay has included in this list those goods which were
subject to reference and minimum export prices;  thus, it mainly contains textiles, clothing and
apparel.  As noted, automotive products and suga r do not yet circulate fr eely within MERCOSUR.41
21. Uruguay adopted a temporary 3 percentage points increase of the CET which has been in
force since 31 December 1997 and is scheduled to be eliminated by 31 December 2000.42  However,
Uruguay is applying exceptions to this increase, ma inly for inputs with tariff rates lying between 0%
and 2%.43  The increase did not apply to goods included in the various lists of exceptions:  capital and
telecommunication goods, sugar or automotive goods.44  Uruguay was also able to maintain its special
concessionary import regimes under the Forestry Law, the Industrial Promotion Law and regulations
regarding agricultural inputs (discussed later).45
22. At present, there is no mechanism for managing (distributing) the collection of the CET;
merchandise which enters Uruguay through anothe r MERCOSUR country is subject to import duties
and other taxes when entering the Uruguayan customs territory.  In principle, this could entail double
imposition of duties46, but the authorities note that double taxation  is not common because, when
importers use one of the MERCOSUR countries as a base from which to distribute merchandise toother member countries, imports usually enter duty-free via a customs warehouse or a free-trade zone.
                                                     
33 These goods are included in Annex V of the Uruguayan Tariff.
34 WTO document WT/COMTD/1/Add.4, 14 August 1996.
35 These goods are listed in Annex VI of the Uruguayan Tariff.
36 WTO document WT/COMTD/1/Corr.1, 9 October 1995.
37 The list of these goods is included in Annex II of the Uruguayan Tariff.
38 IMF (1997a).
39 The list of these goods is included in Annex VII of the Uruguayan Tariff.
40 There does not seem to be a time schedule to include these products in the Regime of Final
Adjustment.
41 Annex III of the Uruguayan Tariff.
42 MERCOSUR/CMC/DEC No. 15/97;  and Decree No. 484/97, 29 December 1997.
43 Annex I and Annex IV of the Uruguayan Tariff include goods subject to the tariff rates in force on
31 December 1997;  this includes basic goods such as agricultural products, fuels, books and inputs.
44 Decree 484/997, 29 December 1997.
45 Diario El País , 23 November 1997 and 15 December 1997.
46 Article 82, Decree No. 570/94, 29 December 1994 , Official Journal No. 24.212, 10 January 1995.Uruguay WT/TPR/S/50
Page 31
23. All told, at the time of preparation of this report in mid-1998, the Uruguayan applied tariff
had seven annexes which included all the mentioned exceptions (Table III.1).  Uruguay's tariff has
been based on the "HS" or Harmonized System of tariff nomenclature, since 1 January 1993.47
Table III.1
Annexes to the Uruguayan Applied Tariff
(a)  Annex I Goods subject to the tariff rates in force on 31 December 1997 (i.e. 0%).  It includes basic goods:  agricultural
products, fuels and books
(b)  Annex II Regime of Final Adjustment to the Customs Union ( Régimen de Adecuación Final a la Unión Aduanera ) (no free
trade intra-MERCOSUR)
(c)  Annex III Sugar and automotive products (no free trade intra-MERCOSUR)
(d)  Annex IV Products subject to the tariff rates in force on 31 December 1997 (inputs)
(e)  Annex V Capital goods, informatics and telecommunications (conformance to the CET in 2006)
(f)  Annex VI List of exceptions to the CET
(g)  Annex VII Products excluded form the CET because of their inclusion in the Regime of Final Adjustment to the Customs
Union (duties apply to intra- and extra-zone)
Source: Decree No. 484/97, 29 December 1997.
24. Since 1995, all customs duties, surcharges, service and other charges have been combined in a
unified customs charge (TGA) which is levied on the c.i.f. value of the imported good with theexception of goods subject to the Minimum Export Price Regime (MEP) (see below).
48  The TGA is
the sum of three components:  the minimum surcharge, additional surcharge and the single customs
tax on imports (IMADUNI).  The minimum surcharge is levied on all imports, with the exception of
merchandise imported under the temporary admission regime and precious metals.49  The minimum
surcharge ranges from 0% to 6%, and the additional surcharge from 0% to 8%.50  The IMADUNI,
which ranges from 0% to 10%, was created in 1977 to replace earlier customs charges collected by
the National Customs Directory.51
25. The current tariff applied in Uruguay has 25 tiers, comprising rates from 0% to 24%.  All
tariffs are ad valorem , applied on the c.i.f. value of imported goods with the exception of goods
subject to the MEP regime.  They apply throughout the year, with no seasonal variation.
26. Rationalization of the tariff structure was initiated in Uruguay in 1980.  In 1991, tariffs ranged
from 10% to 40%, with an average of 21.5%.52  As a result of continuing reforms and implementation
of the MERCOSUR CET, the simple average was re duced to 12.2% in 1998;  the average tariff for
agricultural goods (HS Chapters 01-24) is 13.0% and for manufactured goods (HS Chapters 25-99) is
12.1%.53
27. Chart III.1 shows the changes in the applied tariff structure to take place as Uruguay
conforms to the CET.  The major change in the tariff structure would be the elimination of tariff lines
                                                     
47 Decree No. 304/92, 1 July 1992.
48 Article 2, Decree No. 574/94, 29 December 1994, Official Journal No. 24.214, 12 January 1995.
49 Decree No. 125/77, 2 March 1977.
50 The maximum limit of the minimum surcharge was reduced from 10% to 6% in 1995
(Decree No. 466/95, 29 December 1995).  S ee also Decree No. 484/97, 29 December 1997.
51 Decree Law No. 14.629, 5 January 1977, and GATT (1992a).
52 GATT (1992a).
53 The average applied tariff for agricultural goods using the Uruguay Round definition of agriculture is
12.4%.  The Uruguay Round definition of agriculture covers the following products: HS Chapters 1 to 24 lessfish and fish products (HS 0301-0307, 0509, 1504, 1603-1605 and 230120) plus other products (290543,290544, 3301, 3501-3505, 380910, 382360, 4101-4103, 4 301, 5001-5003, 5101-5103, 5201-5203, 5301, 5302).Uruguay WT/TPR/S/50
Page 33
Table III.2
Average Tariff Levels 1998, 2001 and 2006
1998 2001 2006
Total Agric. Manuf. Total Agric. Manuf. Total Agric. Manuf.
Standard Definition 12.2 13.0 12.1 10.4 10.2 10.5 11.1 10.2 11.2
Uruguay Round
Definitiona12.2 12.4 12.2 10.4 9.6 10.5 11.1 9.6 11.3
a The Uruguay Round definition of Agriculture covers the following products:  HS Chapters 1 to 24 less fish and fish products
(HS 0301-0307, 0509, 1504, 1603-1605 and 230120) plus other products (290543, 290544, 3301, 3501-3505, 380910, 382360,
4101-4103, 4301, 5001-5003, 5101-5103, 5201-5203, 5301, 5302).  The average applied tariff for agricultural goods using the
standard definition (HS Chapters 01-24) is 13.0%  and that of manufactured goods (Chapter 25-99) is 12.1%.
Source: WTO Secretariat calculation based on data provided by the Government of Uruguay.
29. The Uruguayan tariff shows escalation, with a higher tariff average on processed items than
on semi-processed goods and raw materials.  The average tariff on finished goods is 13.2%; forsemi-finished goods, 11.7%; and for raw materials, 9.2%.  This pattern holds for all industries except
for fabricated metal products and machinery where semi-processed goods show a higher protection
than finished goods (Chart III.2).  This pattern of protection will be maintained as Uruguay converges
towards the MERCOSUR CET.  Protection for the chemi cal industry will vary:  in 1998 the tariff on
raw materials is lower than at the other stages, while in 2001 the average tariff on raw materials willbecome slightly higher than that on semi-processed goods.
30. Effective protection (protection for the value added in each sector) is increased by the
existence of special import regimes, which also entail internal tax exemptions, under the Forestry
Law, the Industrial Promotion Law, and under regulations regarding agricultural inputs.  It was also
increased by the application of the temporary increase of the tariff by 3 percentage points, given the
exemptions for rate increases in a number of inputs.
(b) Tariff bindings in the Uruguay Round
31. In the Uruguay Round, Uruguay bound all tariff lines in Chapters 1 to 97 of the Harmonized
System at ceiling levels of 35% for most products and 55% for some exceptions.  There are also some
products bound at lower levels from previous GATT rounds.  As a result, bindings for agricultural
goods now vary from 6% to 55% (6, 9, 10, 12, 12.5, 15, 19, 20, 21, 22, 35 and 55%), while for
industrial goods the bound rates vary from 10 to 35% (10, 12, 15, 17.5, 20, 22.5, 23, 25 and 35%).The average bound rate for agricultural goods, using the definition (HS Chapters 1-24) is 35.2%, and
that of manufactured goods (HS Chapters 25-99) is 29.9%.  While using the Uruguay Round
definition, the average bound rate for agricultural goods is 34.5%, and that of manufactured goods is
30%.  As a result of the temporary increase of 3 percentage points in the applied tariff, nine tariff lines
at the 10-digit level now bear tariff rates which are above the bound rates (Table III.3).  Uruguay alsoreserved the right to notify other duties and charges.
55
(c) Seasonal tariffs
32. Uruguay does not use seasonal tariffs.
                                                     
55 This is in accordance with paragraph 7 of the Understanding on the Interpretation of Article  II:1(b)
of the General Agreement on Tariffs and Trade 1994 (WTO 1995).WT/TPR/S/50 Trade Policies Review
Page 34
0510152025
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishing Chemicals Non-metallic
mineral
products Basic metal Fabricated
metal
products and
machineryOther
0510152025
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishing Chemicals Non-metallic
mineral
products Basic metal Fabricated
metal
products and
machineryOtherChart III.2
Tariff escalation by 2-digit ISIC industry, 1998, 2001 and 2006
Per cent
Calculations for 1998 include the 3 percentage points increase of the CET on a number of items (see Chapter III).
WTO Secretariat calculations based on data provided by the Government of Uruguay.0510152025
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishingChemicals Non-metallic
mineral
products Basic metal Fabricated
metal
products and
machineryOther
Note:
Source :Per cent
First sta ge of processin g Fully processed Semi-processedPer cent
20061998
2001Uruguay WT/TPR/S/50
Page 35
Table III.3
Tariff lines for which the 1998 applied rate exceeds the bound rate
Code Description Bound Applied
rate
1 0813201000 Prunes not stoned 12 13
2 0813202000 Prunes stoned 12 13
3 3926901000 Washers 20 21
4 3926909010 Lasts (for shoes) 20 21
5 3926909091 Polyethylene pipes and tubes for sanitary installations 20 21
6 3926909099 Other articles of plastics and articles of other materials of heading Nos. 39.01 to 39.14 20 21
7 8479893100 Hydraulic windscreen wiping mechanisms for aircrafts 18 21
8 8479893200 Hydraulic accumulators for aircrafts 18 21
9 8479901000 Parts of electrical windscreen wiping mechanisms and hydraulic accumulators, for
aircraft 18 19
Source:  WTO Secretariat calculation based on data provided by the Government of Uruguay.
(d) Concessional entry
33. Authorization to import under the temporary admission regime is granted even if similar
goods are produced locally.56  Since 1994, products imported under temporary admission have been
free of all taxes, including the commission charged by the BROU.  The 1% duty based on the c.i.f.
value, which used to be levied upon these goods, was eliminated in 1994.57  Goods admitted under the
temporary admission regime should be re-exported in the same state in which they were imported or
after undergoing a process of transformation, elabor ation or reparation at the end of the temporary
admission period58, but in any case no later than 18 months after their initial entry.59  Raw materials
may be re-exported without undergoing a process of substantial transformation if the transaction
generates foreign exchange.60
34. Merchandise which enters Uruguay under the temporary admission regime can be re-exported
to a free zone, and the final importation of these goods may also be authorized for entry into thenational customs territory on payment of all duties and taxes.
35. Temporary admission of merchandise to be used in trade shows and other specific purposes
has to be authorized by the Ministry of Economy and Finance
61;  while the entry of merchandise to be
transformed or elaborated is authorized by the Technological Laboratory of Uruguay (LATU), which
also regulates and monitors the entry of merchandise under the regime.62  The fees charged by LATU
for these services are set according to the cost of the services rendered63;  however, since
November 1996 this fee has been fixed at 0.6% of the c.i.f. value of the goods admitted under the
regime.
                                                     
56 Goods eligible to enter under this regime include:  raw materials which undergo a substantial process
of transformation;  parts, pieces, motors, and materials which are incorporated in the final good to be exported;
packaging materials; matrices, moulds and models;  intermediate semi-processed products;  agricultural
products;  products that are used during production but are not incorporated into the final good, but intervenedirectly in the elaboration of the product to be exported (Decree No. 420/90, 11 September 1990, Official
Journal  No. 23.202, 5 October 1990).
57 Decree No. 21/94 (O/D No. 10/94), 19 January 1994.
58 Article 50 of Law No. 15.691, 7 December 1984.
59 Dun & Bradstreet Information Services (1997).
60 Article 23, Decree No. 420/90 of 11 September 1990, Official Journal No. 23.202, 5 October 1990.
61 O/D No. 12/94, 31 January of 1994.
62 Decree No. 420/90, 11 September 1990, Official Journal No.23.202 of 5 October 1990.
63 Decree No. 21/94 (O/D No.10/94), 19 January 1994.WT/TPR/S/50 Trade Policies Review
Page 36
36. Several sectorial laws provide for duty exemptions. Through the Industrial Promotion Law
of 1974, imports of equipment for industries considered of "national interest" are still exempt from
duties and other import charges.64  There are also tariff exemptions for goods destined for use in the
tourism and forestry industries.65  The Fisheries Law also allows for the exemption of duties levied on
machinery and equipment to be used in fisheries development.66  In addition, as notified by Uruguay
in 1995 and 1996, a zero rate of duty was applied to imports of agricultural inputs from non-MERCOSUR countries.
67  In 1998, Uruguay notified that in 1997 imports of agricultural inputs from
non-MERCOSUR countries were exempt from paymen t of the CET, while inputs from MERCOSUR
countries are duty-free.68
37. Goods, services and raw materials imported into a free zone are exempt from all taxes and
duties levied on imports, including the VAT and IMESI.  However, the National Ports Administration(ANP) charges for services rendered.
69
38. Diplomatic missions are allowed to import goods duty-free for official use.70
(e) Tariff quotas
39. Uruguay does not apply tariff quotas.  However, preferential tariff quotas exist in some of the
Economic Complementarity Agreements  within the framework of ALADI.
(f) Minimum "export" prices and variable surcharges
40. Minimum import prices are set under the so-called "minimum export price" (MEP) system,
which has been used since 1983.71  This instrument is used as a contingency measure, as was the
reference price system that was eliminated in 1994. The reference price system was used as a built-in
response to "unfair trade practices" by foreigners;  the MEP was essentially designed to be used when
reference prices were insufficient to offset "abnormally" low world prices.
41. Although the number of tariff lines covered by the MEP system has increased as a result of
changes in tariff nomenclature, the range of products covered has been reduced since the first Trade
Policy Review in 1992.  In 1991,  the system covered butter, wheat, sugar (including raw sugar), wine
in bulk, tyres, paper, wire and other iron products, gas cookers and refrigerators for domestic use;  at
present, the MEP system covers some 117 tariff lines comprising sugar (four tariff lines) and  textiles
and clothing (Tables AIII.1 and AIII.2).  The authorities stated that the system has been retained forthose goods which are considered sensitive within MERCOSUR;   as mentioned earlier, no agreement
has yet been reached for a MERCOSUR sugar regime, while textiles are subject to special safeguards
in Brazil.  Minimum prices cannot be applied to merchandise imported from a MERCOSUR partner.
72
42. The Ministry of Economy and Finance, is allowed to impose "minimum export prices", when:
(i) the export price in the country of origin is not considered a "normal" international  price, and
                                                     
64 Article 8, Lit. D, Law No. 14.178, 28 March 1974.
65 Law No. 15.939, 28 December 1988.  Benefits under the Forestry Law are available for 15 years
from the date that the law was passed, but these may be extended.
66 Law No. 13.833, 29 December 1969.
67 WTO document G/AG/N/URY/3, 7 May 1996 and G/AG/N/URY/9, 28 April 1997.
68 WTO document G/AG/N/URY/13, 12 June 1998.
69 Article 22 and 23 of Law No. 15.921, 17 December of 1987.
70 Decree No. 99/86, 13 February 1986.
71 GATT (1992a).
72 Decree No. 357/97, 29 September 1997.Uruguay WT/TPR/S/50
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(ii) this causes or threatens to cause an important injury to a national industry or a delay in its
development.73
43. The Application Commission, under the Ministry of Economy and Finance, headed by the
representative of the Ministry and comprising, also, one representative each of the Ministries of:
Industry, Energy and Mines (MIEM) and Livestock, Agriculture and Fisheries (MGAP), is charge of
determining the existence of a price distortion, injury and causality, as well as recommending to theMinistry of Economy and Finance the imposition of a temporary or permanent minimum export price
and its level.  Temporary minimum export prices  can be established for four months, on the
simultaneous initiation of an investigation.  If this period is insufficient to conclude the investigation,
the provisional measure can be extended for two more months.  Once the investigation is concluded, a
permanent minimum export price may be applied for up to one year.  A new investigation is requiredfor re-application of an MEP beyond that time.
74  The current "minimum export prices" are valid until
30 September 1998. 75  At the time of completion of the Report there was no indication as to whether
these prices would be extended.
44. The MEP system results in the application of a variable surcharge or levy that is equal to the
difference between the computed minimum export price and actual export price or declared c.i.f.price, that is, the price which is effectively paid or  to be paid for the export in Uruguay net of taxes,
discounts, and other reductions.
76   For  exports of specified textiles and clothing products originating
in Asia the variable surcharge is calculated either as the difference between the MEP and the world
price or as the difference between the MEP and a reference price (calculated by Uruguayan customs),
whichever is greater (Tables AIII.1 and AIII.2).77
45. Duties are computed on the basis of the MEP or the c.i.f. price, whichever is higher.  The
charges to be paid for imports subject to MEPs are determined as follows:
- if the c.i.f. price is greater than or equal to the MEP, the charges to be paid by the
importer are equal to the c.i.f. price times the duty: (c.i.f. price * duty);
- if the c.i.f. price is less than the MEP, the charges to be paid by the importer are equal
to the MEP times the duty, to which the difference between the MEP and the c.i.f.
price is added: (MEP * duty) + (MEP - c.i.f. price).
46. Minimum export prices for clothing "MEPc'" are determined on the basis of the minimum
export price of their major input, which is multiplied by a specific factor.  The factors employed are:
2, 1.85, 1.65, 1.5, 1.25 and 1.15.78  If the calculated "MEPc" is higher than the listed minimum export
price for the item, the "MEPc" is used as the basis for the calculation of the charges to be paid by the
importer.
                                                     
73 Decree No. 315/93, Official Journal  No. 23.852, 29 July 1993.
74 Decree No. 315/93, Official Journal No. 23.852, 29 July 1993.
75 Decree No. 357/97, 29 September 1997, Official Journal No. 24.889, 15 October 1997.
76 Decree No. 315/93, Official Journal No. 23.852, 29 July 1993.
77 National Statistics and International Trade Centre ( Centro de Estadísticas Nacionales y Comercio
Internacional del Uruguay , CENCI), Minimum Export Prices, Actualization 8/97, as communicated by Uruguay
to the WTO Secretariat.
78 No information was supplied on how it is decided which factor to apply.WT/TPR/S/50 Trade Policies Review
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(iii) Other levies and charges
47. The value-added tax (VAT) is levied on domestic and imported goods and services alike.  The
general rate of 23% is levied on most goods and services, and 14% applies to essential products such
as food and medical goods as well as services rendered by hotels.79  As shown in Table III.4, some
basic goods and services are exempt from this tax, as are imports of crude oil and imports of goods to
be used in the construction, renovation or enlargement of tourism resorts.80  In addition, the Executive
has the authority to exonerate other activities from the VAT, including merchandise imported by the
National Administration of  Factories and Electrical Transmissions (UTE), goods to be used for public
works, and items related to some insurance contracts, etc. (Article 63 to 67).  Activities which enjoy
the benefits of special promotion laws, such as the forestry and tourism sectors, are also exempt from
VAT.
Table III.4
Goods and services exempt from the VAT
Goods
Fruits, vegetables, pasteurized milk
Ovine meata
Fishb
Goods and inputs to be used in the agricultural sector
Newspapers, magazines, books and educational material
Fuel, except fuel-oilSales of precious metals, shares and negotiable papers
Fire wood
Imported crude oilServices
Real estate transactions
Water and electricity
c
Interest on loans to individuals
Public transport
RentsServices rendered by enterprises that apply pesticides and chemicals using airplanes
Interests on loans to enterprises considered of national interest.
Cultural activitiesServices of cold-storage rooms
The renting of agricultural machinery by a cooperative
a When the Executive so determines, exemption can be in force only for 90 days.
b When the Executive so determines.
c If the IMESI is fixed at 0% the basic rate of 14% would be levied upon this service.
Source: Código Tributario, Texto Ordenado 1996.
48.  The VAT on imports is levied on the c.i.f. price plus import duty.81  Importers of goods
subject to VAT must make an advance payment of 5% at the time of importation of goods taxed at the
basic rate and an advance of 3% for goods taxed at the minimum rate.  The VAT is reimbursed if the
                                                     
79 http://tradeport.org, 16 October 1997.
80 Decree No. 291/95, 2 August 1995.
81 Art 8, Title 10, Value-added Tax, ( Dirección General Impositiva , 1996).Uruguay WT/TPR/S/50
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imported goods are to be used in the production of agricultural machinery, accessories, and/or any
other agricultural goods or inputs for which domestic goods are also exempt from VAT.82  There is a
credit on the VAT paid on imports or the acquisition of machinery and equipment to be used in
industrial activities.
49. The Specific Internal Tax (IMESI) is an excise tax levied at the wholesale level for domestic
goods and equivalent imported goods.  The products affected are alcoholic and non-alcoholicbeverages (22% to 85%), cosmetics and perfumes (15%), cigarettes and tobacco (66.5%), gasoline
(101% to 133%), diesel engine vehicles (37%), gasoline and diesel motor vehicles (25% to 30%) and
electricity (10%).
83  The IMESI applied to non-alcoholic and alcoholic beverages ranges from 85%
(for sugar cane spirits and grapa) to 22% (for non-alcoholic beverages).  The IMESI levied on
non-alcoholic beverages varies according to national content.  A rate of 22% is levied on fruit drinks,except for lemon drinks, with a minimum national content of 10%, and of 5% for lemon drinks,
mineral waters and soft drinks;  other non-alcoholic drinks are subject to a rate of 30%.
84
50. Other charges on imports include:  BROU's commission (discussed earlier), the commission
charged by private banks, fees charged by customs agents and port authorities, and the fees charged
by LATU for services rendered.  Table III.5 illu strates the charges and taxes levied on three
representative goods imported into Uruguay. However, this table shows that some of the
aforementioned charges are only levied on imports such as wheat and cars.
Table III.5
Structure of charges on imports of selected products, 1998
Durum wheat
(HS 1001.10)Laminated steel
(HS 72121.20)Cars (1600 cc)
 (HS 8703.23)
Description Rate (%) Value Rate (%) Value Rate (%) Value
1 Value f.o.b 100.00 100.00 100.00
2 Freight (on 1) 10.0 10.00 10.0 10.00 4.5 4.50
3 Insurance (on 1) 0.3 0.30 1.0 1.00 0.5 0.50
4 Value c.i.f. (1+2+3) 110.30 111.00 105.00
5 Import duty (on 4) 15.0 16.55 15.0 16.65 20.0 21.00
6 Other charges (bank charges, customs agent,
port fees, etc.)a9.63 .. .. 2.52
7 Value of import excluding taxes (4+5+6) 136.48 127.65 128.52
8 IMESI (on 7) n.a. n.a. 30.0 38.56
9 Advanced VAT payment (on 4+5) n.a.b5.0 6.38 5.0 6.30
10 VAT (on 4+5) n.a.b18.0 22.98 18.0 22.68
11 Cost of transportation port-factory 2.80 .. ..
12 Wholesale price in Uruguay  (7+8+9+10+11) 139.28 157.01 196.06
n.a. Not applicable.
.. Not available.
a Bank charges includes the BROU's commission of 0.5% on c.i.f and private bank's commission of 0.5% on f.o.b. customs agent fee s
are 1.5% on f.o.b.,  port fees 5.2 % on c.i.f.
b Non-processed agricultural goods are exempt from VAT.
Source: Government of Uruguay.
                                                     
82 Article 68 and 69, Title 10, Value-added Tax, ( Dirección General Impositiva , 1996).
83 Information supplied by the authorities.
84 Article 1, Title 11, Specific Internal Tax ( Dirección General Impositiva , 1996).WT/TPR/S/50 Trade Policies Review
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51. A tax of 0.25% based on the c.i.f. value is levied on imports transported in ships, to finance
the severance packages of ANP's personnel (Chapter IV, Transport).  Imports transported in ships
with foreign flag were subject to a 0.5% ad valorem  tax based on the c.i.f. value of the imported
merchandise but this was abolished in 1992.85
(iv) Customs valuation and Rules of origin
52. Customs valuation:  Uruguay availed itself of the five-year period allowed for developing
countries to apply the provisions of the WTO Agreement on Customs Valuation, and of an additional
three-year period (after the application of all other article provisions) in which to base customs values
on computed values as stipulated in Article 6 of the Agreement.86  Nevertheless, Uruguay has
adopted, and in most cases applies, WTO provisions relating to the estimation of the value of
imported merchandise, replacing the earlier Brussels valuation system.87  However, the application of
WTO provisions and related conditions have not yet been notified to the Committee on Customs
Valuation.  Goods subject to the minimum export price system are excluded from the new valuation
system (section (2)(ii)(f) of this Chapter).
53. Uruguay has reserved, but has not used, the right88:
- to retain the system of minimum official values for the valuation of goods under such
terms and conditions as may be agreed to by WTO Members89;
- to provide that the relevant provisions of the Article 4 of the Agreement90 shall apply
only when the customs authorities agree to the reverse the order of Articles 5
(valuation according to unit price) and 6 (valuation according to computed value)91;
- to apply paragraph 2 of Article 5 of the Agreement in accordance with the provisions
of the relevant note thereto92, whether or not the importer so requests it.93
                                                     
85 Law No. 16.320, 1992.
86 Article 20.1 and 20.2, Agreement on Implementation of Article VII of the GATT 1994 (Agreement
on Customs Valuation), (WTO, 1995).
87 Normas comunes de valoración aduaneras, ALADI/CR/Resolution 226, 5 march 1997.
88 WTO document WT/Let/1, 2 March 1995.
89 Paragraph 2 of Annex III of the Agreement on Customs Valuation.
90 Article 4 states that:  if the customs value of the imported good cannot be determined under the
provisions of Articles 1, 2 and 3 (i.e. valuation accordi ng to transactions value, to transaction value of an
identical good, and to transaction value of a similar good respectively), the customs value should be determinedunder the provisions of Article 5 or, when the customs value cannot be determined under that Article, it shouldbe determined under the provisions of Article 6 except that, at the request of the importer, the order ofapplication of Articles 5 and 6 shall be reversed. According to Article 5 the customs value of imported goodsshall be based on  the unit price;  while Article 6 stipulates that the customs value of imported goods shall be
based on a computed value (Agreement on Customs Valuation).
91 Paragraph 3 of Annex III of the Agreement on Customs Valuation.
92 Under paragraph 2 of Article 5 the importer may request that the customs value be based on the unit
price at which the imported good, after further processing, is sold in greatest aggregate quantity.  In such cases,deductions made for the value added by further proce ssing shall be based on objective and quantifiable data
relating to the costs of such work.  Accepted industry formulae, recipes, methods of construction and other
industry practices would form the basis of the calculations.  This method of valuation would normally not be
applicable when, as a result of further processing, the imported goods lose their identity, unless the value addedof the product can be determined accurately without unr easonable difficulty. Each situation must be considered
case by case (Agreement on Customs Valuation).
93 Paragraph 4 of Annex III of the Agreement on Customs Valuation.Uruguay WT/TPR/S/50
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54. Customs valuation on the basis of a value other than the transaction value may be applied by
the Office of the Director General of Customs when there is some doubt concerning a supplier's
classification and/or valuation.94  Even in such cases, the imported goods can be removed from
customs on the deposit of a guarantee.95  However, any deception on the part of the importer or
alteration of the value of imports is considered fraud.96  In case of doubt concerning the classification
and valuation of goods shipped to Uruguay, the importer or the customs broker may consult thecustoms authorities before presenting the goods for clearance through customs.
97
55. The process in force on 9 January 1995 for making adjustments to the value of a good will
remain in place, with the exception of adjustments regarding:  (i) commissions;  (ii) sellers' benefits
(advertisement, participation in fairs, guarantees, etc.);  (iii) special discounts;  and (iv) the
provisional adjustment of 10% of the f.o.b. value of the imported merchandise due to commissionsand/or reduced prices obtained by national importers if related to a foreign supplier.  Pre-established
adjustments, as permitted in the WTO Agreement, may also be revised on request by the interested
parties.
98
56. The value of most used merchandise imported into Uruguay is determined on the basis of the
value of similar unused goods.  Nevertheless, specific regulations exist to determine the value of usedcapital goods, informatics and telecommunications goods, vehicles, and motors, other components
and parts of automotive vehicles.
99
57. The reference price system, which in 1991 covered mainly textiles and items such as
polyethylene products, plywood, paper, iron tubes, ki ts of motor vehicles, and cycles, was eliminated
in 1993 for most products and for remaining textiles and clothing items in 1994.  However, as noted
earlier, minimum export prices, which mainly affect textiles and sugar, still remain in place.
58. Uruguay notified as preferential rules of origin the General Regime of Rules of Origin of the
Latin American Integration Association (ALADI ), Resolution 78, and Agreement 91 of the
Committee of Representatives, the specific rules of origin of the LAIA Partial Scope Agreements, and
the MERCOSUR rules of origin regime.100
59. The LAIA rules of origin are based upon the principle of substantial transformation or tariff
classification change.  If there is no substantial transformation, for example, if the process ofproduction entails only mounting or assembling, the c.i.f. value of foreign inputs must not exceed
50% of the f.o.b. value of the good produced, or 60% of the f.o.b. value for goods produced in
countries at a lower stage of development.  In addition, a wide range of products are subject to
specific rules of origin.
101
60. MERCOSUR rules of origin are also based on the principle of substantial transformation with
a tariff classification change.  For MERCOSUR preferential treatment, a 60% local or regional
                                                     
94 Article 8, Normas comunes de valoración aduaneras, ALADI/CR/Resolution 226, 5 March  1997
95 Article 10, Normas comunes de valoración aduaneras, ALADI/CR/Resolution  226, 5 March 1997.
96 National Trade Data Bank and Economic Bulletin Board - STAT-USA, U.S. Department of
Commerce, http://tradeport.org/cgi-bin/banner.pl/ts/countries/-uruguay/index.htlml, 19 November 1997.
97 Bureau of National Affairs, Inc. (1997).
98 O/D No. 2/95, 5 January 1995.
99 Decree No. 373/95, 5 October 1995, Official Journal No. 24.399, 19 October 1995;  Decree
No. 567/94, 29 December 1994, Official Journa l No. 24.211, 9 January 1995;  O/D No. 113/95,
21 December 1995 and complement 2 January 1996;  and O/D No. 22/96, 13 February 1996.
100 WTO document G/RO/N/5, 1 November 1995.
101 Resolution No. 78 of the Committee of Representatives of the Latin American Integration
Association (LAIA), 1987.WT/TPR/S/50 Trade Policies Review
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content is generally required;  goods contained in Uruguay's national exception list are subject to
different domestic or regional requirements.102  In addition, specific criteria apply to chemical, steel,
telecommunications and informatics products.103
(v) Import prohibitions, restriction and licensing
61. Certain import prohibitions are applied for phyto- and zoo-sanitary reasons.  The importation
of any good may be prohibited if it represents a risk to the sanitary conditions of the country.  Recentexamples are the prohibition of imports of feeding stuff for livestock which contain bone meal of
mammals and imports from countries where there is risk of BSE or Scrapie.
104  Prohibitions apply also
to the importation of a limited number of goods including:  bovine blood 105, exotic fish species106 and
other products of the sea.107 From time to time the Government may ban the importation of certain
food articles originated in areas declared unfit by the World Health Organization (WHO).108
62. A prohibition is also applied to imports of hazardous waste. 109
63. The importation of used cars is subject to a temporary prohibition for a period of 180 days
during the ongoing negotiations to establis h a common automotive regime within MERCOSUR.110
64. Import licensing and authorization:   The Agreement on Import Licensing Procedures was
incorporated into Uruguayan domestic legislation by virtue of the ratification of the WTO Agreements
by Law 16.671 of 13 December 1994.111  Nevertheless, Uruguay availed itself of the special treatment
reservations for developing countries provided for in the Agreement on Import Licensing
Procedures.112  Thus, the Government delayed for a period of two years from the date of entry into
force of the WTO, in other words, until 1 January 1997, the application of sub-paragraphs (a)(ii) and
(a)(iii) of Article 2.2. of the Agreement on Import Licensing.113  In practice, Uruguay does not have
any import licensing mechanism.114
(vi) Import quotas
65. Uruguay has notified that it applies no quantitative restrictions.115
                                                     
102 WTO (1997a).
103 WTO (1997b).
104 Article 286 of Law 16.736, January 1996;  and Decree 139/996 modified by Decree 374/996.
105 Resolution of the MGAP, 16 August 1993.
106 Law No. 13.833, 29 December 1969.
107 Law No. 13.833, 29 December 1969 and Decree No. 521/93.
108 National Trade Data Bank and Economic Bulletin Board - STAT-USA, U.S. Department of
Commerce, http://tradeport.org/cgi-bin/banner.pl/ts/countries/-uruguay/index.htlml, 19 November 1997.
109 Decree No. 252/89, 31 May 1989.
110 Decree No. 41, 12 February 1998.
111 WTO document, G/LIC/N/1/URY/1, 4 October 1996.
112 Invocation of footnote 5 to Article 2.2, WTO documents WT/Let/1, 2 March 1995;  and G/LIC/1,
24 April 1995.
113 Sub-paragraph (a)(ii) states that the applicatio n of licenses may be submitted on any working day
prior to customs clearance of the goods;  and sub-paragr aph (a)(iii) states that application for licenses where
submitted in an appropriate and complete form are approved immediately on receipt to the extent that isfeasible, but in any case within a maximum of 10 working days (WTO (1995), pp. 257-8).
114 WTO document, G/LIC/N/3/URY/1, 3 October 1996.
115 WTO document, G/MA/NTM/QR/1/Add.2, 9 October 1996.Uruguay WT/TPR/S/50
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(vii) Import surveillance
66. There is no import surveillance mechanism in Uruguay.
(viii) Import cartels
67. As far as can be ascertained, there are no import cartels.
(ix) State-owned enterprises
68. In 1995, Uruguay notified to the WTO that the only public enterprise coming within the
definition of Article XVII of GATT 1994 is the National Administration for Fuels, Alcohol and
Portland Cement (ANCAP).  This enterprise has a monopoly on the import and refining of crude
petroleum and by-products, the export of fuels, and the production and importation of industrial and
denatured alcohol.116  These monopolies were created in 1931 under the law setting up ANCAP.
However, ANCAP never had the monopoly to produce, trade or market Portland cement.
69. The prices of the products produced by ANCAP are set by the Executive on the
recommendation of ANCAP's Directorate.   Imports or exports by third parties of products over which
ANCAP has a monopoly are not allowed.  Imports of  crude petroleum and by-products and alcohol
are determined by domestic demand, while exports depend upon the competitiveness of the enterprise
and the stocks available.117
70. However, Law 16.753 of June 1996 eliminated  ANCAP's monopoly to produce, market and
trade alcohol and alcoholic beverages.  ANCAP continues to produce, market, and trade in these
products, but competition from the private sector is now allowed.118  This was notified to the WTO in
January 1998.119  The authorities noted that no other distilleries have been established yet, but there
are private importers and distributors of alcohol and alcoholic beverages.
71. ANCAP establishes the sales price of all goods that it produces and sells.120  Prices are set
according to the financial requirements of each sect or within the institution.  The price of oil and its
by-products have to be approved by the Executive, while the price of the other products (for which
ANCAP does not hold a monopoly) do not require ap proval.  In order to dismantle the monopoly,
ANCAP can extend temporary or permanent contracts to private or public enterprises, domestic or
foreign, as long as they follow the government procurement guidelines which are in force
(section 4(v) of this Chapter).121  In addition, ANCAP has to guarantee that none of these ventures or
association reduces or eliminates competition in the market were the activity is to take place.122
72. State involvement in Uruguay is still substantial, especially in the services sector. State-
owned or -managed enterprises include:
- UTE which controls distribution of electricity in Uruguay123;
                                                     
116 WTO document G/STR/N/1/URY, 25 July 1995.
117 WTO document  G/STR/N/1/URY/Add.1, 25 July 1995.
118 Article 1, Law 16753, 13 June  1996.
119 WTO document G/STR/N3/URY, 28 January 1998.
120 Article 12, Law 16753, 13 June 1996.
121 Article 14, Law 16753, 13 June 1996;  and Article 1, Decree No. 298/997, 20 August 1997.
122 Article 1, Decree No. 298/997, 20 August 1997.
123 A law, approved by the Parliament and Congress in mid-1997, liberalizes the generation and
commercialization of electric power and allows UTE's association with private enterprises. It promotesWT/TPR/S/50 Trade Policies Review
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- the state railroad company, AFE, which controls all freight shipment124;
- the state telephone company, ANTEL, which controls the private telephone and
telecommunications industry.  Cellular services are provided by ANTEL and a competing
private firm;
- the National Ports Administrations (ANP) which operates and administers all ports;  however
many port services  have been privatized;
- the state enterprise OSE, which controls most water and sewage services in Uruguay, except
in some small resorts on the Atlantic coast;
- the state-owned airline, PLUNA, of which 51% is controlled by the private sector.125
73. As a result of a 1991 law on the reform of the state, some activities have been transferred to
the private sector either under contract, concession or sale.  Examples include:  ground services and
operation of the cargo terminal at Montevideo's Carrasco International Airport;  domestic air services;
and the construction and operation of the new airport in Punta del Este.  The state-owned insurance
monopoly has been dismantled, while two of the three banks which had been taken over by the
Government because of bankruptcy were re-privatized.126
(x) Anti-dumping and countervailing measures
74. The Uruguayan authorities notified that the Agreement on Implementation of Article VI of
the General Agreement on Tariffs and Trade had been adopted by law in Uruguay and, accordingly,
formed part of domestic legislation.127  Decree No. 142/996, the regulation implementing the
Agreement,  was approved on 23 April 1996.128
75. Uruguay has not applied any final anti-dumping  or countervailing duty measures during the
period under review (1992-98).129  Under Uruguay's former anti-dumping law (Law 15085 of 1980)
no actions were ever taken. In fact, there was no need to initiate any anti-dumping procedures sinceUruguay used the reference and minimum export price systems to counteract potential unfair trade
practices (section (2)(ii)(f) and (iv)).  The diminished use of these systems has led to the first
application of anti-dumping procedures, with two investigations being opened in 1998.  These were in
their initial stages at the time of completion of this report in September 1998.  It is possible that anti-
dumping procedures might become more common in Uruguay, since the new legislation on valuationstates that valuation procedures should not be used instead of anti-dumping measures.
130
                                                                                                                                                                    
competition in this market by granting concessions, an d allows major consumers to choose their suppliers. UTE
would be allowed to contract with public and private enterprises, national or foreign, to generate, transform,
transmit, distribute, export and import electric energy ( Búsqueda , 15 January 1998).
124 Since 1997 the private sector, through a concession, is allowed to operate certain lines and transport
specific products such as lumber.
125 http://www.stat-usa.gov, October 1997.
126 http://tradeport.org/cgi-bin, 16 October 1997, U.S. State Department.
127 WTO document G/ADP/N/1/URY/1, 24 March 1995.
128 WTO document G/ADP/N/1/URY/2, 5 December 1996.
129 WTO documents G/ADP/N/2/Add.1, 12 July 1995;  G/ADP/N/4/Add.1/Rev.4, 10 October 1996;
G/ADP/N/9/Add.1/Rev.3, 21 November 1996;  G/AD P/N/16/Add.1, 9 October 1996;  G/ADP/N/22/Add.1,
21 April 1997;  G/ADP/N/29/Add.1/Rev.1, 20 Marc h 1998;  and G/ADP/N/35/Add.1, 20 March 1998.
130 ALADI/CR/Resolution 226, 5 march 1997.Uruguay WT/TPR/S/50
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76. The Executive adopts the resolutions concerning the application of provisional measures and
definitive anti-dumping duties and, where required, reviews and may extend the latter if warranted.
There is an Advisory Committee under the Ministry of Economy and Finance, headed by the
representative of the Ministry and comprising, also, one representative each of the Ministries of:
Livestock, Agriculture and Fisheries (MGAP);  Industry, Energy and Mines (MIEM);  and Foreign
Affairs;  as well as of the Office of Planing and Budget (OPP).  The Advisory Committee carries outan evaluation of the technical aspects of an investigation and advises the Executive regarding the
adoption of a resolution. The investigation itself is carried out by the Agricultural Planning and Policy
Office (OPYPA ) of the MGAP (for goods included in HS Chapters 1-24 and agro-industrial products)
or the National Industry Directorate (DNI) of th e MIEM (for industrial goods) (Article 2 and 3 of
Decree 142), and these agencies receive evidence from the industry concerned.
77. An anti-dumping duty can be imposed only if it can be demonstrated that there is a causal
relationship between dumped imports and injury to the domestic industry.
131  The determination of
injury should be based on positive evidence:  the volume of imports;  the effect of dumped imports on
prices of Uruguayan like products;  and the impact  of these imports on Uruguayan producers of such
products.
78. An investigation to determine the existence, degree and effect of any alleged dumping is
initiated upon a written application by or on behalf of the industry addressed to either OPYPA or the
DNI.  This application should include evidence of the existence of dumping, injury and the causal link
between the dumped good and injury (Article 29 and 30).  The authorities have 20 days to decide
whether the application has been properly documented or is inadmissible (Article 31).  If the
application is properly documented the authorities have 30 days to decide on the appropriateness of
initiating an investigation (Article 33).  The init iation of an investigation is published in the Official
Journal and notified to the interested parties (Artic le 36).  An anti-dumping investigation proceeding
should not hinder customs clearance of the product investigated (Article 41).
79. Any anti-dumping investigation should normally be concluded within one year or maximum
18 months of its initiation.  However, the applicant may request the termination of the investigation at
any time prior to the normal conclusion.  An investigation may also be terminated without theapplication of anti-dumping duties if the following conditions are met:  there is insufficient evidence
of dumping or injury;  if the margin of dumping is de minimis
132;  or if the volume of dumped goods
or the injury caused is negligible.  If an anti-dumping duty is imposed, its amount may not exceed the
margin of dumping (Arts. 77-81).  Anti-dumping duties and price undertakings can remain in force
only as long as the dumping that is causing injury continues (Article 96).
80. During the investigation all interested parties have the opportunity to defend their interests.
The inquiry stage of the investigation must be completed at least 120 days before the maximum time-
limit of 18 months (Article 56 and 77). OPYPA or the DNI is required to make a determination
regarding the application of anti-dumping duty within 30 days of the completion of the inquiry stage
of the investigation and refer the proceedings to the Advisory Committee (Article 57).
81. Provisional anti-dumping duties may be applied pending completion of a full investigation
when a preliminary determination has been made of dumping and consequent injury to a domestic
industry and the measure is necessary to prevent injury during the course of the investigation
(Article 59).  The amount of the provisional an ti-dumping measure may not be greater than the
                                                     
131 Injury is to be taken as meaning material injury to a domestic industry, threat of material injury to a
domestic industry or delay of the establishment of an industry (Article 21, Decree 142).
132 The margin of dumping is considered to be de minimis  if it less than 2%, expressed as a percentage
of the export price (Article 22, Decree 142).WT/TPR/S/50 Trade Policies Review
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provisionally estimated margin of dumping, determined by the implementing authority (OPYPA or
DNI).  These duties can be imposed for a maximum of four months (Article 65).  The implementing
authority gives its opinion regarding the application of a provisional measure to the Advisory
Committee.  An interministerial resolution ordering the application of the provisional measure is
required (Article 63).  The Advisory Committee may also suspend an investigation and accept a price
undertaking (Article 67).
82. A Common MERCOSUR Anti-dumping Regulation is being negotiated;  in the meantime,
each Member continues applying its own national legislation.133  If a MERCOSUR member initiates
an anti-dumping investigation against a thir d country, other MERCOSUR members are to be
informed, following the procedures stip ulated in the relevant WTO Agreement.134
(xi) Safeguard actions
83. The WTO Agreement on Safeguards has been adopted by law in Uruguay and, accordingly,
forms part of domestic legislation.  No regulation implementing the Agreement has been issued.
84. Since 1995 Uruguay has not made use of the special safeguard provisions under the WTO
Agreement of Agriculture, reserved in its schedule for other durum wheat (HS 1001.10.00.90) and
other non-durum wheat (HS 1001.90.10.90).135
85. Uruguay has retained the right to use the transitional safeguard mechanism under Article 6 of
the Uruguay Round Agreement on Textiles and Clothing.136
(xii) Local-content schemes
86. The automotive industry is the only sector in Uruguay affected by a local-content scheme
(section 4(iv) of this Chapter).  The IMESI levied on non-alcoholic beverages is also subject to a
minimum national content of 10%, and 5% for lemon drinks, mineral waters and soft drinks.137  The
rate of the IMESI levied on drinks which do not comply with the minimum local content is higher.The reimbursements given to exporters who benefit from the drawback regime are tied to the national
content of the export:  the higher the national content, the higher the reimbursement (section (4) of
this Chapter).
138
(xiii) Measures implemented in exporting countries
87. Uruguay does not have any agreements that would limit merchandise exports by foreign trade
partners.
(xiv) Balance-of-payments measures
88. Uruguay does not maintain any import restrictions for balance-of-payments purposes.
                                                     
133 Diario El País , 14 November 1997.
134 Diario El País , 15 December 1997.
135 WTO documents G/AG/N/URY/4, 3 May 1996;  G/AG/N/URY/7, 14 April 1997;  and
G/AG/N/URY/12, 17 March 1998.
136 WTO document, G/TMB/N/11, 2 March 1995.
137 Article 1, Title 11, Specific Internal Tax ( Dirección General Impositiva , 1996).
138 Decree No. 487/997.Uruguay WT/TPR/S/50
Page 47
(xv) Countertrade
89. Uruguay has no legislation to regulate countertrade;  nevertheless, countertrade agreements
are possible for direct Government purchases.139
(3) MEASURES DIRECTLY AFFECTING EXPORTS
(i) Registration and documentation
90. The use of the Single Export Document (DUE) was implemented in 1995.140  In order to
obtain the DUE the customs broker enters the export information in a computerized system, the DUE
is numbered automatically and three original print-outs are issued.  These three copies are submitted
to the BROU with the required signatures (exporter, custom broker, bank official) and all the required
original documents (invoices, certificates, etc.).  The BROU approves (or rejects) these documents
and informs the National Customs Directorate (DNA).  Two copies of the DUE approved by theBROU and five copies of commercial invoices and th e certificates (which act as an export permit), are
submitted to the Expor t Department of DNA.
141  Customs verifies the merchandise prior to its
shipment.  This last procedure varies according to port of exit, since some of these are not connected
to the electronic system.142
91. Exports, originating in Uruguay but which have to be transported through another
MERCOSUR country, are subject to taxes and benef its stipulated under Uruguayan internal law.143
(ii) Export taxes, charges and levies
92. Exports of dry, salted, and pickled hides are subject to a 5% tax.144  Other agricultural goods
are also subject to taxes and/or fees used to finance bodies such as the Uruguayan Wool Secretariat
and the National Meat Institute.145  Exports of bales of wool are subject to a 1.6% tax on their f.o.b.
value;  processed wool is subject to US$0.03 per e xported kilogramme, and exports of wool clothing
and apparel are also subject to US$0.03 per kilogramme of wool contained in the item.  Exports ofmeat are subject to a 0.6% tax on f.o.b. value.
93. The domestic tax on transactions involving ag ricultural goods (IMEBA) is levied on some
export items, that is, exports are not excluded from the payment of the tax.  The rate varies according
to the product but in each case a maximum rate is stipulated.  The IMEBA is levied on f.o.b. price of
the export (Table III.6).
(iii) Minimum prices
94. Uruguay does not apply mi nimum prices on exports.
                                                     
139 GATT (1992a).
140 O/D No. 71/95, 1 July 1995.
141 This procedure is different for exports to other MERCOSUR countries.
142 O/D No. 71/95, 1 July 1995.
143 Article 82, Decree No. 570/94, 29 December 1994 , Official Journal No. 24.212, 10 January 1995.
144 IMF (1997a).
145 Uruguay XXI (1997).WT/TPR/S/50 Trade Policies Review
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Table III.6
Goods on which IMEBA must be paid at export
MERCOSUR Common
Market NomenclatureGoods Rate (%)
0102 Bovine animals 2.5
0103 Swine 1.5
0104 Sheep 2.5
0105 Poultry 1.5
0106 Rabbits 1.5
0401 Milk 2.0
0407 Eggs 1.5
0409 Honey 1.5
0410 Royal jelly 1.5
0603 Flowers 1.5
07 Vegetables 1.2a
08 Fruit and nuts, other than 0811, 0812 and 0814 1.2 or 2.0 for citrus fruitb
10 Cereals 2.0
1201 Soya seeds 2.0
1202 Ground-nut seeds 2.0
1204 Linseed 2.0
1205 Rape or colza seeds 2.0
1206 Sunflower seeds 2.0
1207 Other  oilseeds and oleaginous fruits 2.0
1209 Seeds, fruit and spores, of a kind used for sowing 1.5
1301 Propolis 1.5
4104 Bovine hides 2.5
4102 Sheepskins 2.5
5101 Wool 2.5
a Fruit and vegetables exported directly by the producer bear a tax of 0.7%.
b Citrus fruits exported directly by the producer bear a tax of 1.2%
Source: O/D No. 131/96 of 18 December 1996, Law No. 16.737 (Article 655) of 5 January 1996, and Decree No. 15/96 of 24 January 1 996.
(iv) Export prohibitions and other controls
95. Only a few export controls are currently in force.146  Export licences (without quotas) are
occasionally required.  For reasons such as to assure supplies to user industries and consumers or
sanitary considerations, certain exports are prohibited or are subject to special requirements.147
Exports of live products of the sea are prohibited unless INAPE authorizes it.148  In addition, the
Ministry of Livestock, Agriculture and Fisheries, after consulting with the National Seeds Institute,
may, owing to a shortage of seeds,  temporarily pr ohibit their export.  Exporters of seeds must register
                                                     
146 National Trade Data Bank and Economic Bulletin Board - products of STAT-USA,
U.S. Department of Commerce, http://tradeport.org/ cgi-bin/banner.pl/ts/countries/-uruguay/index.htlml,
19 November 1997.
147 IMF (1997a).
148 Law No. 13.833, 29 December 1969.Uruguay WT/TPR/S/50
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with the Registry of Farms, Producers and Merchants of Seeds at the National Institute of Seeds
(Article 63).149
96. Exports of bovine, ovine, and equine livestock were liberalized in 1993.150
(v) Export quotas
97. Uruguay has notified that it applies no quantitative restrictions on exports.151
(vi) Export cartels
98. There are no export cartels in Uruguay.
(vii) Voluntary restraints, surveillance and similar measures
99. Uruguay does not apply voluntary export restraints or any similar measures.
(viii) Export subsidies
100. The Agreement on Subsidies and Countervailing Measures has been adopted by law in
Uruguay and, accordingly, forms part of the domestic legislation. However, no regulations
implementing the Agreement have been issued.152
101. Enterprises which export vehicles wholly or partly constructed in Uruguay, or motor parts of
national origin may benefit from a customs concession, applicable to the importation of motor
vehicles assembled in the place of origin destined for the domestic market (see section 4).153
102. Uruguay notified the WTO Committee on Agriculture that for the calendar years 1995, 1996
and 1997 no subsidies were applied to exports of rice, butter, and oil-cake (soya-bean pellets).154
(ix) Duty and tax concessions
103. Industries whose output is exclusively destined for export are allowed to import inputs under
the temporary admission regime that allows importa tion without payment of tariffs (section 2(ii)(d) of
this Chapter).155
104. Uruguay promotes manufactured products, including those for export, through specific fiscal
incentives for the industry provided by the Industrial Promotion Law.  Manufacturing enterprises may
apply for a declaration that an investment project is in the national interest and thus obtain partial tax
exemptions for a certain number of years, as well as total tax exemptions on imported industrial
equipment.156
                                                     
149 Law No. 16.811, 21 February 1997.
150 Decree No. 457/93, 30 September 1993.
151 WTO document, G/MA/NTM/QR/1/Add.2, 9 October 1996.
152 WTO document  G/SCM/N/1/URY/1, 27 March 1995.
153 WTO document G/SCM/N/3/URY - G/SCM/N/16/URY, 20 December 1996.
154 WTO documents G/AG/N/URY/1, 13 March 1996;  G/AG/N/URY/8, 14 April 1997;  and
G/AG/N/URY/11, 17 March 1998.
155 Uruguay XXI (1997).
156 Uruguay XXI (1997).WT/TPR/S/50 Trade Policies Review
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105. There is a special regime under which exports are exempt from the VAT, as well as a
mechanism that allows the exporter to recover the tax levied on its inputs, so that the cost incidence of
this tax on the product to be exported is neutralized.157  Exports are also exempt from the IMESI.158
106. In order to neutralize the incidence of indirect taxes, these are reimbursed on exports, but the
regime only applies to exports for which the c.i.f. value of inputs exceeds 80% of the f.o.b. value of
the export itself.  Thus, the benefit depends upon the national content of the product.159  The precise
amount to be reimbursed is calculated either as a percentage of the f.o.b. or a fixed amount per tonne,
litre or crate (in the case of agricultural goods ).  Reimbursements may vary between 2% and 6%,
depending on the normal rate of the indirect tax, but cannot exceed 6% of the f.o.b. value of the
exported good.  These rates are fixed by the Ministry of Economy and Finance, the Ministry of
Industry, Energy and Mining or the Ministry of Li vestock, Agriculture and Fisheries, which act in
coordination.  The higher the national content included in the exportable item the higher the amount
reimbursed.160
107. In addition, the Uruguayan drawback scheme allows the partial or total reimbursement of
duties and charges paid for imported goods used in adding value assembling or preparation of
merchandise to be exported.161  The Technological Laboratory of Uruguay (LATU) authorizes and
controls the implementation of the scheme.  This regime applies to all exports, except those whose
inputs have a c.i.f. value exceeding 80% of the f.o.b. value of the export itself.  In other words, this
benefit also depends upon the national content of the product.162  For eligible items, the precise
amount to be reimbursed varies between 1.25% and 6% of the total f.o.b. value of the final export
item.  These rates are fixed by the Executive, specifically the Ministry of Economy and Finance, the
Ministry of Industry, Energy and Mining and the Mi nistry of Livestock, Agriculture and Fisheries.
108. The free-trade zone regime has not undergone substantial change since the first Trade Policy
Review of Uruguay in 1992.  Law No. 15.921 of 17 December 1987 and Decree No. 455/988 of
8 July 1988, which regulate the operation of the zones, allow storage and warehousing,
manufacturing, financial institutions, data processing and other activities that the Executive deems
beneficial to the country's economy (Article 2).  However, companies established in a free trade zone
are not allowed to undertake manufacturing, commercial or service activities outside the free zones(Article 14), that is, separate companies have to be established to conduct operations outside the zone.
The free zones are administered, supervised and controlled by the Ministry of Economy and Finance,
through the Directorate of Free Zones (Article 5).  To utilize, operate in and obtain the benefits of
free-trade zones, companies require authorization from the Directorate of Free Zones and a contract
must be signed. 
163
109. Under the law, foreign investors receive national treatment:
(i) both local and foreign-owned industries operating in a free zone benefit from
exemption from all domestic taxes in effect or which may be created, with the
exception of the employer's contributions to social security for Uruguayan employees
                                                     
157 Uruguay XXI (1997);  and Article 5, Title 10, Value-added Tax, ( Dirección General Impositiva ,
1996).
158 Article 6, Title 11 IMESI, ( Dirección General Impositiva , 1996).
159 Article 3, Decree No. 487/997, 31 December 1997.
160 Decree No. 487/997, 31 December 1997.
161 Decree No. 431/997,  6 November 1997, O fficial Journal No. 24.922, 1 December 1997.
162 Article 3, Decree No. 487/997, 31 December 1997.
163 Bureau of National Affairs, Inc. (1997).Uruguay WT/TPR/S/50
Page 51
(Uruguayans must comprise 75% of the labour force employed by the user of the
zone (Article18))164;
(ii) goods, services, and raw materials of foreign and Uruguayan origin may be supplied
to the zones, held there, processed, and re-exported without payment of Uruguayan
customs duties and import taxes.165  However, goods entering into the Uruguayan
customs territory from free zones are subject to customs duties and import taxes.166
Payment must be made for the services of the National Port Administration (ANP)
and167;
(iii) the users of free zones do not have to use the services supplied by state monopolies,
so that all companies operating in the zone s may freely contract these services abroad
or produce them themselves.168
110. There are three types of free-trade zones:  (i) state-owned and -operated;  (ii) state-owned but
privately operated;  and (iii) private free-trade zones.  The only government-operated trade zone is
Nueva Palmira (which has its own port at the mouth of the Paraná-Paraguay rivers).  Private free
zones include:  Montevideo, Fray Bentos (San José), Florida, Rivera, Nueva Helvecia (ColoniaSuiza), Libertad and Rio Negro.
169  The Colonia free-trade zone is owned by the State but operated by
the private sector.
111. Under MERCOSUR regulations, products manuf actured in member-state trade zones,
whether by Uruguayan or foreign firms, are considered extra-territorial; therefore, they do not benefit
from the MERCOSUR customs union advantages.170  Similarly, Uruguayan automotive industries
cannot meet the export balancing or national content requirement by using inputs or other goods that
originate or are manufactured in a free-trade zone171 (section (4)(iv)).
(x) Export finance
112. An export financing regime allows exporters access to credit at preferential interest rates.
Thus, US$ loans may be obtained through private financial intermediaries which hold at least 30% of
their assets with the Central Bank.172
(xi) Export insurance and guarantees
113. There are no preferential insurance mechanisms for exports.
                                                     
164 The employer is free from payment of social security taxes for non-Uruguayan employees if those
employees waive coverage under the Uruguayan Social Security.
165 Goods of Uruguayan origin entering the free zones will be treated as Uruguayan exports for all tax
and other legal purposes.
166 National Trade Data Bank and Economic Bulletin Board - products of STAT-USA,
U.S. Department of Commerce, http://tradeport.org/ cgi-bin/banner.pl/ts/countries/-uruguay/index.htlml,
19 November 1997;  and Dun & Bradstreet Information Services (1997).
167 Article 22 and 23 of Law No. 15.921, 17 December of 1987.
168 http://www.embassy.org/uruguay/econ/eecon2.html, November 1997.
169 http://www.embassy.org/uruguay/econ/eecon2.h tml, November 1997;  and Dun & Bradstreet
Information Services (1997).
170 Dun & Bradstreet Information Services (1997).
171 Decree No. 455/988 of 8 July 1988.
172 Uruguay XXI (1997).WT/TPR/S/50 Trade Policies Review
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(xii) Export promotion and marketing assistance
114. The institutions in charge of the promotion of exports are:  (i) the Ministry of Foreign Affairs
through the Directorate of Trade Programming;  (ii) the Ministry of Livestock, Agriculture and
Fisheries programmes to promote exports of non-traditional agricultural exports (PENTA)
(section 4)(i));  (iii) the National Directorate of Small and Medium Enterprises of the Ministry of
Industry and Energy, which promotes exports of crafts;  (iv) Uruguay XXI (Chapter II) and (v) theLATU.  LATU has an important role in the promotion of exports:  it manages and implements the
temporary admission and draw-back regimes, controls the quality of exports, promotes the use of
technology in the country, and organizes trade shows and fairs.
(4) M
EASURES AFFECTING PRODUCTION AND TRADE
(i) Incentives
(a) Production subsidies and tax concessions
115. In 1995, 1996 and 1997, Uruguay's total aggregate measurement of support (AMS) for the
agricultural sector was below the " de minimis " level under the WTO Agreement on Agriculture.
Uruguay provided domestic support for research, pest and disease control, extension and advisory
services, and inspection services, which are considered  non-actionable or "Green Box" measures.Investment subsidies were also available to agriculture through specific projects funded by
international organizations.  Subsidized interest rates could be available on loans by the BROU for
wheat, but not for the rest of the agricultural sector.
 173  However, the authorities noted that loans at
subsidized rates have not been available since 1986-88.  Uruguay applies a concessional rate of 0% on
imports of agricultural input s from non-MERCOSUR countries.174  Under this special import regime,
MERCOSUR's CET is not applied.
116. Uruguay still enforces a price support mechanism for milk producers through a differential
pricing arrangement (see also Chapter IV(2)).
117. In the forestry sector, Law No. 15939, in force si nce the previous trade policy review in 1992,
provides for tax and tariff concessions, and partial refund of planting costs.  Exemptions and other
benefits apply to all taxes that could in future be levied on forestry enterprises or their owners.
Exemptions apply for a period of 12 years from the planting of the forest.  Imports of raw materialsneeded for the processing of domestically produced wood, and imports of equipment, machinery,
utility vehicles and tools needed for the installation and operation of such enterprises may be fully or
partly exempted from import taxes,  port charges or fees, surcharges, advance deposits, or any other
levy on imports, for a period of 15 years.
175
118. The authorities estimated the average amount of the refund of plantation costs at about
$180 per hectare in the case of plantations;  this is applied once only for each hectare planted.  The
value of tax exemptions for protective forests (natural or artificial) and productive forests were
estimated at about $9 per hectare per year176;  and the total cost for 1992-97 amounted to some
US$19.3 million.
                                                     
173 WTO documents G/AG/N/URY/3, 7 May 1996;  and G/AG/N/URY/9, 28 April 1997.
174 WTO documents G/AG/N/URY/3, 7 May 1996;  and G/AG/N/URY/9, 28 April 1997.
175 WTO document G/SCM/N/3/URY - G/SCM/N/16/URY, 20 December 1996.
176 WTO document G/SCM/N/3/URY - G/SCM/N/16/URY, 20 December 1996.Uruguay WT/TPR/S/50
Page 53
119. The Industrial Promotion Law of 1974, which benefits industries considered of "national
interest", provides for:
(i) total or partial exemption of all taxes;
(ii) exemption of up to 60% of the employers' social security contributions (this benefit
has never been granted);
(iii) partial exemption of taxes on income generated by the enterprise;(iv) 20% reduction of port charges and exemption of other charges levied upon imported
industrial material required to equip the enterprise;  and
 (v) exemption of taxes and charges such as surcharges, taxes, consular charges, customs
duties, and port charges on imported merchandise required for the initiation of a new
activity or the enlargement of an existing one (this benefit has never been granted).
177
120. In addition, manufacturing industries are exempt from payment of the VAT and IMESI when
importing machinery and equipment. These industrie s are also entitled to a credit on the VAT
payment when purchasing in the domestic market.178
(b) Adjustment or regional assistance
121. Uruguay has several programmes to assist the agricultural sector financed by international
organizations. The National Programme to Support the Small Farmer (PRONAPPA), initiated
in 1993, provides credit lines at market rates and te chnical assistance to small farmers, whose incomes
place them below the poverty line.  A resource management programme supports exporters of non-
traditional agricultural products and provides technical assistance in the management of water and soil
(PRENADER).  The Second Agricultural Development Programme offers credit lines at international
market rates to increase productivity in the  agricultural sector, to promote re-afforestation, and to
promote the development of new markets for non-traditional exports (PENTA).  There is also aprogramme to promote the reconversion and development of the fruit, vegetables and small animals
sub-sectors.  The development of small and medium-size livestock producers is also promoted
through a specific assistance programme (PRONADEGA).
122. In the face of difficulties in the sugar sector (need for modernization, low prices, etc.) there is
a programme to assist the sugar sector to move into the production of rice, vegetables and wine.
(ii) Pricing and marketing arrangements
123. The prices of urban and inter-urban transport, and of some health services, and of some types
of bread and milk are controlled in Uruguay. The pricing and marketing arrangements for milk, noted
in the Secretariat report for the previous trade policy review, are still in force (Chapter IV (2)).
179
(iii) Standards and other technical requirements
(a) Standards, testing and certification
124. Since September 1997, the Uruguayan Institute of Technical Standards (UNIT), a private
institution, has accepted and applied the Code of Good Practice for the Preparation, Adoption and
                                                     
177 Article 8, Lit. D, Law No. 14.178, 28 March 1974.  Some of the taxes and charges mentioned in
point (v), which existed in 1979, have since been eliminated or unified into one tax (the IMADUNI), asmentioned in section 2(ii) of this Chapter.
178 Decree No. 227/93, 24 May 1993.
179 GATT (1992a).WT/TPR/S/50 Trade Policies Review
Page 54
Application of Standards contained in Annex 3 to the WTO Agreement on Technical Barriers to
Trade. The Institute is in charge of:  (i) certification of products;  (ii) certifications of systems;
(iii) standardization (technical committees);  (iv) training (quality);  (v) information (through their
library);  and (vi) edition or printing (books, standards, drafts for courses, etc.).180   The UNIT has
been a full member of the ISO since 1991.181  The Technological Laboratory of Uruguay (LATU)
certifies the quality of industrial imports and exports.182
125. Uruguay's policies regarding standards have not changed since 1991, the objective being to
safeguard public health, safety, consumers' rights, the environment and the image of the country as an
exporter.183  However, technical standards have been harmonized within MERCOSUR.  Technical
regulations generally follow international guidel ines and apply equally to domestic and imported
goods. Uruguay usually accepts international standards/specifications, such as those of the ISO or theIEC
184, except when these are not compatible with national technology and/or national risk factors.
However, the authorities noted that the adjusted standards do not contradict international ones.
126. Export goods use international standards or standards of the country of destination.
127. Uruguay recognizes tests carried out in the exporting country if there is an agreement of
mutual recognition.  In the area of certificati on of products and systems, Uruguay has operative
agreements with organizations in:  Argentina, Austria, Brazil, Colombia, Germany, Italy and
Switzerland.
128. Imported foods and beverages are subject to an inspection by LATU. The Ministry of
Industry and Energy determines which products are subject to inspection, and can also eliminate this
requirement. For these products to obtain a certificate of fitness for sale they must not constitute a
danger to human health.  Labels on these products mu st be visible, legible and in Spanish.  Imported
food  products whose labels are not in Spanish, must have additional inscriptions in Spanish.  If theimported products satisfy the technical regulations , and labelling requirements, LATU grants the
commercialization certificate within 12 working days.
185
129. LATU uses the food analysis regulations in force in Uruguay.  If the product is not included
in the national technical regulations, international standards or those designed by competent,
recognized foreign standards institutes are used.186
130. Uruguay follows MERCOSUR's regulations regarding marking, labelling and packaging.  A
number of federal and municipal agencies set and control labelling and marking requirements.187  The
National Directorate of Commerce and Consumer De fense of the Ministry of Economy and Finance is
in charge of ensuring compliance with labelling requirements.188
                                                     
180 WTO document G/TBT/CS/N/82, 20 October 1997.
181 GATT (1992a).
182 National Trade Data Bank and Economic Bulletin Board - STAT-USA, U.S. Department of
Commerce, http://tradeport.org/cgi-bin/banner.pl/ts/countries/-uruguay/index.htlml, 19 November 1997.
183GATT (1992a).
184 Dun & Bradstreet Information Services (1997).
185 Decree No. 338/82, 22 September 1982.
186 Decree No. 338/82, 22 September 1982.
187 National Trade Data Bank and Economic Bulletin Board - STAT-USA, U.S. Department of
Commerce, http://tradeport.org/cgi-bin/banner.pl/ts/countries/-uruguay/index.htlml, 19 November 1997.
188 Decree No. 141/92, 2 April 1992.Uruguay WT/TPR/S/50
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131. All products for sale must bear a label with at least the following information in Spanish:
name and origin of the product, name and address of the producer or importer, weight, date of
expiration, ingredients, instructions and storing conditions.189
132. All containers/bottles of alcoholic beverages, domestically produced or imported, must have a
printed label indicating the nature or type of beverage, its alcoholic content, and the identification of
the producer or importer.190  Imported fine wines (" calidad preferente ") with recognized
denomination of origin (DOR), must have an additional label approved by the National Institute of
Grape Growing and Wine Production.
(b) Sanitary and phytosanitary standards
133. The General Directorate of Agricultural Services , of the Ministry of Livestock, Agriculture
and Fisheries, is in charge of designing and implementing the phytosanitary protection programmesfor the agricultural sector.  The Directorate is also in charge of surveying compliance of:  sanitary and
phytosanitary standards for imports;  quality standards for food and agricultural inputs;  and standards
for residues of pesticides.  The Directorate also verifies and certifies the compliance of national and
international sanitary and phytosanitary standards for exports and imports of agricultural products and
inputs.
191
134. The National Plant Protection System requires that imported products of food origin comply
with phytosanitary requirements that are determined  according to a risk analysis.  This risk analysis
takes into account the phytosanitary conditions of Uruguay and the country of origin.  Prior to
embarking the merchandise, the prospective importer must obtain the Phytosanitary Accreditation for
Imports (AFIDI) that stipulates the phytosanitary requirements of the item to be imported.  The
sanitary authorities in the country of origin are required to issue a certificate ensuring that the
merchandise to be imported complies with the phytosanitary requirements stipulated in the AFIDI.  Atthe point of entrance the AFIDI document and the certif icate of origin are checked to determine if the
merchandise complies with the requirements.  If imports do not comply with the requirements, they
are either:  (i) allowed to enter subject to later sani tary treatment;  or (ii) not allowed to enter and may
be re-exported or destroyed.  The authorities noted that in the latter case the measure which restricts
trade the least will be adopted, provided that it grants the level of protection required by Uruguay(Box III.1).
135. The National Fisheries Institute (INAPE) is the official sanitary authority in charge of
establishing and monitoring sanitary standards in the fishing industry and for fisheries products of
national and foreign origin.  INAPE's standards apply to the extraction of fish products for human or
animal consumption, as well as to their processing, storage, transportation and marketing.
192
Regulations and controls implemented by INAPE follow the guidelines set up by FAO-WHO, Codex
Alimentarius, etc.193  In order to ensure the sanitary conditions of the industry, INAPE inspects and
audits vessels and industries on a regular basis, and if necessary carries out the required analysis.
INAPE also issues sanitary certificates, recogniz ed internationally, for exports of fish products.
                                                     
189 Decree No. 141/92, 2 April 1992.
190 Article 7, Law  16.753, 13 June 1996.
191 http://www.chasque.apc.org, (MGAP's homepage), 20 November 1997.
192 Decree No. 312/97, 18 June 1997.
193 Decree No. 149/97, 5 May 1997.WT/TPR/S/50 Trade Policies Review
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Box III.1:  Animal feed import procedures
The importer must request the registration of the product with the Agricultural Services Directorate, indicating
its origin, which will enable him to obtain a tax exemption.
Once the new product has been registered, it may be imported as often as desired.  On each occasion, the
interested party must arrange for direct unloading (i.e. without passing through customs or privatewarehouses) and for Phytosanitary Accreditation for Import (AFIDI) with the General Agricultural Services
Directorate, together with the zoosanitary certificate of origin required by the General Livestock Services
Directorate, according to product type and origin.
The General Agricultural Services Directorate issues the AFIDI and the Provisional Direct Unloading
Certificate which the interested party submits to the General Directorate of Customs together with the SingleImport Document (DUI).
When the goods cross the frontier,  MGAP proceeds with the sanita ry checks and certification, where
appropriate (Plant Import Certificate, wh en the product is of plant origin).
The Final Direct Unloading Certificate is issued by  the General Agricultural Services Directorate in
accordance with the following criteria:
- When the imported feed is to be marketed, the issue of a certificate will depend on the verification of
conformity with nutriti onal quality requirements;
- When the imported feed is for the importer's own use, a final certificate is issued, without further
formalities.
The General Directorate of Customs releases the c onsignment against presentation of the final certificates
(plant import and direct unloading) issued by the General Agricultural Services Directorate.
The producer may import the goods without prior registration provided they are for his own use and not for
marketing;  in this case the phyto-zoosanitary formalities must also be completed.
Source:  Ministry of Livestock, Agriculture and Fisheries (MGAP) and General Agricultural Services
Directorate (Quality Unit), http://www.chasque .apc.org (MGAP's home page) 20 November 1997 .
136. The Ministry of Public Health establishes the sanitary requirements for food products of
domestic or foreign origin marketed in Uruguay.  A technical commission within the Ministry ofPublic Health advises the Ministry on the elaboration of sanitary standards.  As a basis for the
development of national standards, the comm ission uses food standards approved by the
MERCOSUR Council and the technical standard s that normally prevail in the Uruguay.
194  T h e
standards set by the Ministry replace or complement those of the Codex Alimentarius.  However, if
there are no national standards, the provisions of the Codex Alimentarius are applied.  Sanitaryrequirements for foods to be exported can be determined in the country of destination.
137. Sanitary and phytosanitary requirements or restrictions include:
- Imports of animal and plant products or of animal and plant origin must be
accompanied by a certificate issued by the sanitary authorities in the country of origin
stating that specific requirements are met.
195
- A resolution of the Uruguayan Ministry of Agriculture and Fisheries prohibits the
import, manufacture or formulation of hexachlorocyclhexane-in pesticides and in
other preparations for the control of diseases of animals and plants because of the risk
to human and animal health.196
                                                     
194 Decree No. 95/94, 2 March 1994.
195 Decree No. 14/93, 12 January 1993.
196 Dun & Bradstreet Information Services (1997).Uruguay WT/TPR/S/50
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- Imported insecticides and fungicides for agriculture cannot be sold in Uruguay before
they are registered with and have been issued sales permits by the National Service of
Food and Plant Protection of the General Directorate of Agricultural Services of the
Ministry of Livestock, Agriculture and Fisheries.197
- Veterinary products must be officially tested or approved before they can be imported
to Uruguay.198
- Grapevines allowed to enter the country have to be produced under an official
certification scheme approved by the Agricultural Protection Services and undergo a
sanitary control.199
- The Government bans imports of food products originating from areas declared unfit
by the World Health Organization.200
- Pharmaceutical products may be marketed  in Uruguay only if they are approved by
the Ministry of Public Health and are covered by a sales permit.201
138. On 23 May 1996 the OIE officially recognized Uruguay as being free of foot and mouth
disease;  vaccination is no longer required against the disease.202  Consequently, Uruguay can export
beef, lamb and pork to any country in the world.  Uruguay has been on the list of countries which
were free of foot and mouth disease since 1993.  The United States and the European Union, have
both allowed imports of beef from Uruguay sin ce that time.  During the Uruguay Round, Uruguay
was able to negotiate a quota of  20,000 tonnes of boneless beef in the United States' market.
Uruguay also exports boneless beef and giblets to the European Union.  Chile, Mexico, Japan, and
Korea also recognize Uruguay's status of being free of foot and mouth disease.203
139. Uruguay has never experienced any case of bovine spongiform encephalopathy (BSE) or
encephalopathies of the ovine (scrapie).204   On April 1996, Uruguay revised and strengthened its
provisions relating to the importation of live bovine animals and sheep, genetic material and products
and by-products thereof.  This measure will continue to be applied until more information is available
and pending a review of the situation regarding transmissible spongiform encephalopathy.205
140. The Regime of Phytosanitary Certification and Verification (RVD) of MERCOSUR, aims at
facilitating trade in plant products within the Member States.206  The RVD, stipulates that
phytosanitary and quality inspections are undertaken at the origin and destination, and that inspections
at the borders are to be carried out more expeditiously since only document and merchandise
verification are required (Resolution No. 2/96 of Grupo Mercado Común ).207  In principle the RVD
applies to goods produced within MERCOSUR, but it  can be applied to goods from third countries
through bilateral phytosanitary harmonization and equivalence-recognition processes.
                                                     
197 Dun & Bradstreet Information Services (1997).
198 Dun & Bradstreet Information Services (1997).
199 Decree No. 13/94, 12 January 1994.
200 National Trade Data Bank and Economic Bulletin Board - products of STAT-USA,
U.S. Department of Commerce, http://tradeport.org/ cgi-bin/banner.pl/ts/countries/-uruguay/index.htlml,
19 November 1997.
201 Dun & Bradstreet Information Services (1997).
202 This was officially approved through Resolutions Nos. XI and XII of the OIE.
203 http:// www. chasque.apc.org, (MGAP's homepage), 20 November 1997.
204 http:// www. chasque.apc.org, (MGAP's homepage), 20  November 1997.
205WTO document G/SPS/N/URY/1,  24 May 1996.
206 The RVD does not apply to all goods of vegetable origin only those listed in Resolution No. 247/96,
26 July 1996.
207 Diario El País , 14 de December 1997.WT/TPR/S/50 Trade Policies Review
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141. Uruguay is a member of the Ministerial Council for Plant Health of the Southern Cone
(COSAVE), a regional organization operating with in the framework of the International Plant
Protection Convention.  In 1997, COSAVE adopted the international quarantine standards of the
FAO.  The General Directorate of Agricultural Services of the MGAP takes these standards into
account when establishing quarantine requirements for imports of plants and products of plant
origin.208  Uruguay is also a member of the Commission on Animal Health of MERCOSUR.
MERCOSUR's Sanitary and Phytosanitary Agreement (ACSAFIM) was repealed when the WTO
Agreement on Sanitary and Phytosanitary measures was adopted.209
(iv) Trade-related investment measures (TRIMs)
142. Uruguay notified a trade-related investment measure (TRIM) in the automotive industry.  The
measure applies to enterprises exporting finished or semi-finished vehicles or producers of auto-partswhose products comply with the national and regi onal value-added prescriptions and hence accepted
as suitable by the National Directorate of Industr y of the Ministry of Industry, Energy and Mining,
which administers this programme.  For each U.S. dollar of exports of vehicles or auto-parts of
national origin, an equal U.S. dollar value of vehicles, assembled in the country of origin, may be
imported with a reduction of 10 percentage points of the tariff.
210  In principle, the measure can be
applied to new enterprises that wish to operate under the same programme, that is, enterprises
established after the conclusion of the Uruguay Round.  However, the WTO Secretariat is unaware of
the measure having been extended in this way.211
143. The measure is optional and there is no obligation to export in order to be able to import, and
any person or firm may import by paying the normal applied tariff.  However, the same goods do not
need to be re-exported and the benefit is transferable.  This means that exporters can transfer to an
importer of vehicles their rights to import assembled vehicles with a reduction of 10 percentage pointsreduction of the applied tariff.
212  Those who benefit from this tariff reduction cannot simultaneously
benefit from the reimbursement of taxes on imported goods that are re-exported.
144. The aim of this programme is the restructuring of the national automotive industry from an
domestic-oriented industry to an export-oriented one, while ensuring that the exporting firms, through
the incentives provided by this measure, will be able to satisfy the domestic market with a range ofimports.
213  This measure will remain in place until a common automotive regime is adopted within
MERCOSUR, scheduled for 1999.
(v) Government procurement
145. Uruguay has not adopted the WTO Agreement on Government Procurement, which is a
plurilateral agreement and not covered by the Single Undertaking of the Uruguay Round.
146. Since 1997 government procurement procedures have been regulated by Decree No. 194/997
which stipulates that contracting should be conducted by means of a public tender.214  However, other
                                                     
208 Decree No. 372/97, 8 October 1997. For more information regarding COSAVE see WTO document
G/SPS/W/38, 6 December 1995.
209 Decision of the Council of the Common Market No. 6/96.
210 Decree No. 316, 7 July 1992.
211 WTO document G/TRIMS/N/URY/1/Add.1, 21 September 1995.
212 Article 4, Decree No. 316, 7 July 1992.
213 WTO document G/TRIMS/N/URY/1/Add.1, 21 September 1995.
214 This section is based on Decree No. 194/997 - Apruébase el Texto Ordenado de Contabilidad y
Administración Financiera y Normas Concordantes y Complementarias  (T.O.C.A.F.), 10 June 1997.Uruguay WT/TPR/S/50
Page 59
methods such as an "abbreviated tender" or direct purchases can be used, depending upon the value of
the contract (Table III.7).  In addition, the Executive can authorize special regimes and procedures for
contracting if the characteristics of the market or of the goods and services to be acquired so require it
(Article 34).  Tenders are public and open to all bidders, domestic and foreign (Article 43).
Table III.7
Government procurement
Types of procurement
1. By abbreviated tendering when the amount does not exceed Ur$700,000, this limit being fixed at Ur$4.1 million for State
industrial and commercial autonomous entities and decentralized services (listed in Article 221 of the Constitution)
(Article 41).
2. Directly when the amount does not exceed Ur$35,000, this limit being fixed at 105,000 pesos for State industrial and
commercial autonomous entities and decentralized services (listed in Article 221 of the Constitution) (Article 41).
3. Directly or by procedure determined by the contracting authority for reasons of sound administrative practice in the followin g
cases:
- Between State organizations and departments or with non-governmental public entities;
- when in a public or abbreviated tender procedure or auction contracts are not awarded or no valid or acceptable bids are submi tted or
the bids are clearly unsuitable.  In this case the contract must be awarded on the same basis and specifications as those of th e
unsuccessful procedure, in some cases with invitations being extended to the original bidders in addition to those whom the
administration considers necessary;
- to purchase exclusively manufactured goods or contract for exclusive services, provided that they cannot be replaced by simila r goods
or services;
- for purchasing, executing or restoring works of art and scientific or historical works;
- purchases of goods not produced or supplied in the country which must be made through international organizations;
- repair of machinery, equipment or engines whose dismantling, movement or prior inspection would be burdensome in the event of an
invitation to tender;
- contracts which must be concluded in foreign countries;
- when the circumstances require that the operation must be kept secret;
- in emergencies (a certificate of the Ministry of Economy and Finance is required);
- when there is an obvious shortage of the goods or services to be procured;
- the purchase of goods sold at public auctions;
- the purchase of livestock for breeding, where special specimens are involved;
- the sale of products intended for economic development or for the satisfaction of sanitary requirements;
- purchases of teaching or bibliographic material from abroad;
- the purchase of fresh food;
- the purchase abroad of crude oil and its derivatives, basic oils and additives for lubricants;
- purchases made within the framework of intergovernmental agreem ents or with foreign State entities involving an exchange for
national exports.
147. The invitation to participate in a public tender or a bid is published in the Official Journal and
in one other newspaper of wide circulation and, if considered necessary to ensure widespread
publicity, is also publicized by other means.  To promote the participation of foreign suppliers,tenders are publicized abroad through Uruguay's diplomatic missions.  These announcements take
place 15 days prior to the date of the opening of the tender, or 30 days prior to the opening date when
the participation of foreigners in the process is deemed necessary.  In cases of emergency these
periods can be reduced (Article 47).
148. At least six companies are invited to participat e in the "abbreviated tender", three days in
advance of the opening date. This time period could be reduced even to 48 hours if circumstances so
require it.  The tender takes place even if less than six companies present their bids (Article 48).
149. Contracts for purchasing and contracting goods and services financed by international
financial agencies, such as the Inter-American Development Bank and World Bank, stipulate the
procurement procedures.  However, these procedures must respect the general principles of
administrative contracts, especially when selecting the suppliers (Article 42).
150. State and para-state institutions give preference to national over foreign products, where these
are of similar quality.  This requirement allows local bidders to win contracts even if their bids are upWT/TPR/S/50 Trade Policies Review
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to 10% higher than foreign bids.215  In contracts for public works preference is given to those that
ensure the highest utilization of domestic raw materials and labour. Among foreign bidders,
preference is shown to those who offer to purchase and use local products.216  The authorities
indicated that imports are a major component of government purchases, since the required goods can
often not be supplied locally.  However, given the decentralization of public purchases, the authorities
were unable to supply the Secretariat with detailed data regarding total public sector purchases or theshare of imports therein.
151. In cases in which the public contract entails the purchase of products abroad, the law
stipulates that preference is to be given to those bidders that ensure market access for Uruguayan
exports (Article 53), but the authorities no ted that in practice this is not applied.
152. The Uruguayan Constitution allows for the possibility of recourse to administrative and
judicial bodies if an interested party wishes to contest the award of a contract (Articles 317-319 and
309-313 of the Uruguayan Constitution).
153. There is a resolution of the MERCOSUR Common Market Group, already endorsed by the
Council of Ministries, which establishes the creation of an ad hoc group in charge of designing a
government procurement regime for MERCOSUR.
217  This group met for the first time on
26-27 March 1998 and, in another meeting in June 1998, the members agreed to start negotiations.
(vi) Intellectual property protection
154. Uruguay has adopted the TRIPS Agreement, which has had the force of law in Uruguay since
1 January 1995.218  Uruguay has until the 1 January 2000 to comply with this specific provisions of
the Agreement.  Existing Uruguayan IPR laws, cove ring patents, trademarks and copyright, have
become outdated, having been developed within a different technological context in the late 1930s
and early 1940s.  Thus, new legislation in each of these areas has been drafted and is in the process ofbeing approved.  The authorities believe that the new legislation will comply fully with the TRIPS
Agreement.  Apart from these statutory provisions, the Uruguayan Constitution of 1997 stipulates that
intellectual works and the copyright of inventors or artists be recognized and protected by law
(Article 33).
155. Uruguay is a member of the World Intellectual Property Organization and is a party to
several international conventions for the protection of intellectual property rights (Table III.8).
156. Law 10.098 of 12 December 1941 for patent protection of inventions and Law 14.549 of
29 July 1976 for utility models and designs is based on the novelty criterion, covering both process
and product patents.
219  Patents are granted for a non-renewable 15-year period for inventions not
previously released, publicized or distributed in Uruguay or abroad before their application date.  If apatent is not exploited for more than three years, it can be granted to a third party.
220
                                                     
215 Law No. 16.170 of 28 December 1990, which stipulated that the margin of preference of 40%
established in 1961 was to be reduced 10% by 1992.
216 Bureau of National Affairs, Inc. (1997).
217 Diario El País , 15 December 1997.
218 All the provisions of the WTO Agreements were ratified by Law No. 16.671 of 13 December 1994.
219 Rowat et. al. (1997).
220 Dun & Bradstreet Information Service (1997).Uruguay WT/TPR/S/50
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Table III.8
Laws, international conventions and agreements that regulate intellectual property rights in Uruguay
Constitution (1997)
Laws
Law No. 10089 of 1941 (patents)
Law No. 9956 of 1940 (trademarks)
Law No. 9739 of 1937 (copyrights)
Conventions
Patents
Stockholm Act of the Paris Convention (Decree-Law No. 14910, 10 July 1979)
Trademark s
Paris Convention for the Protection of Industrial Property
Copyrights
Washington Convention on Copyrights (1946)
Berne Convention for the Protection of Literary and Artistic Works (Paris Act, 1971)
Universal Copyright Convention (Geneva, 1952 and its revision Paris, 1971)
Geneva Phonograms Convention (1971)
Rome Convention for the Protection of Performers, Pro ducers of Phonograms and Broadcasting Organizations (1961)
Convention Relating to the Distribution of Programme Carrying Signals Transmitted by Satellite (Brussels 1974)
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) (Law No. 16671, 13 December 1994)
157. Under current patent legislation, pharmaceuticals and medicines are not patentable; only their
production process may be protected. For this reason, on 30 December 1994, the National Directorate
of Industrial Property of the Ministry of Industry, Energy and Mining, issued a resolution, pursuant to
the ratification of the TRIPS Agreement, to be able to fulfil the obligation contained in Article 70.8 of
this Agreement, allowing applications for patents for pharmaceuticals and agricultural chemicals
products to be filed.221  In accordance with these provisions, since 1 January 1995 the National
Directorate of Industrial Property has been able to receive applications for patents for chemical,
pharmaceutical and agricultural chemical products.222  In such cases the Directorate applies the
patentability criteria provided for in the TRIPS Agr eement, utilizing the date of the application for the
purpose of determining the priority of a filing.223
158. In December 1997 the Executive approved a draft law to update the prevailing patent regime
of 1941;  the draft is still being discussed by the Industry Commission of the Senate.  The draft law
regulates the rights and obligations related to invention patents, utility models and industrial designs.
In order to pre-empt any possible conflict in case of  simultaneous inventions, priority is given to the
first applicant for the patent.  Inventions may be patented if they have industrial application, and entail
substantial novelty.224  In addition, the application for a patent has to be filed and the corresponding
fees paid.  Part of the fees charged for processing a patent, some US$1.3 million in 1996, are to be
used to support and improve the operation of this service.
                                                     
221 WTO (1995), TRIPS Article 70.8(a), p. 401.
222 The National Directorate of Industrial Property of the Ministry of Industry, Energy and Mining is
responsible for the design, implementation and monitoring of the patent and trademark regime.  This institution
is now reported to be functioning in a timely and efficient manner.
223 WTO document IP/N/1//URY/1, 16 May 1995.
224 The legislation does not provide a definition for an invention, since this is considered a dynamic
concept:  defining the concept could have the disadvantage of limiting the applicability of the new law(Exposición de Motivos ).WT/TPR/S/50 Trade Policies Review
Page 62
159. Under the draft law, pharmaceuticals and chemical products as such will also be patentable,
but plants, animals, therapeutic and surgical diagnostic methods will not.  Workers' inventions are also
covered by this draft law.
160. Patents are to be granted for 20 years from the time the application is submitted.  The
authorities noted that the patent draft law includes different types of contractual and compulsory
licencing.
161. Under Law No. 9.956 of 1940, foreign trademarks may be registered in Uruguay and receive
the same exclusive property rights as domestic trademarks. Protection is afforded to the registered
owner for ten years from the date of filing, with subsequent ten-year extensions available.  Names can
be registered as well as emblems or other creations with which products or services can be identified.
The name of a merchant or industrialist as well as the company and title of the commercialestablishment also constitute industrial property and are protected by Uruguayan legislation.
225
162. The existing legislation includes rules which forbid trademark piracy, nevertheless many
speculative registrations have been made.  To address this situation, the Trade Mark Act was modified
in 1992 to establish a summary anti-piracy proceeding.  This new procedure has helped foreign trade
mark owners recover their marks in Uruguay.  The application of the procedure, and of the specialexamination standards, by a special anti-piracy unit within the Patent and Trade Mark Office appears
to have been successful.
226
163. The trademarks legislation has also been throughly revised to adapt it to international
requirements, and a draft law is now before the legislature.227  The draft law also contains regulations
regarding commercial names, denominations of origin and geographical indications.228  T h e  m o s t
important innovation of this project is that it allows for the registration of signs even if these are not
visible, for instance, those related to smell, taste, a nd auditory characteristics.  There is also provision
for registering slogans.
164. The draft law on trademarks, which was discussed and approved by the Senate, is now being
discussed by the representatives.  Under this legislation, a transitory period of two years will be
allowed for the implementation of the law to give users time to get used to the new system to register
a sign.  The National Directorate of Industrial Property will also be responsible for the Registry ofIndustrial Trademarks.
165. Uruguay's current copyright law, dating from 1937 (Law 9.739), provides protection to books,
records, videos and computer software. Copyright is protected for 50 years after the copyright holder's
death and can be freely transferred, with a few exceptions.
229
166. Computer software may also be registered as an intellectual work, including successive
versions of derivative programs. If software is developed abroad, it is protected without registration.
However, piracy of computer software, as well as  CDs and videos, is reported to be common, despite
being protected by law.  The Executive is working with the law enforcement authorities to enforce
copyright laws in these matters.230
                                                     
225 Dun & Bradstreet Information Services (1997).
226 Moreno, Alberto et. al. (1995) in http://www.umi.com/proquest, November 1997.
227 http://www.embassy.org/uruguay,  October, 1997.
228 In Uruguay denominations of origin are protected by the Paris Convention.
229 Dun & Bradstreet Information Services (1997).
230 Dun & Bradstreet Information Services (1997).Uruguay WT/TPR/S/50
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167. As in the case of patents and trademarks, Uruguay's copyright law has become outdated,
having been designed within a different technological context, before the widespread use of
photocopy machines, the appearance of audiovisual equipment allowing easy reproduction (e.g. video
cassettes, diskettes, compact disks, etc.); and the development of new creations such as computer
programmes.  Thus a draft law on copyright and related rights is also being discussed by the
Education and Culture Commission at the Senate.
168. The approval of these drafts laws would strengthen the intellectual property system, while the
implementation of the TRIPS Agreements would also entail the strengthening of enforcement.
However, there is insufficient equipment, personnel, and funds to meet all obligations in an
expeditious manner.  In addition, the judiciary may well need training in intellectual property law
litigation to ensure the effective enforcement of the statutes.231
(vii) Competition rules
169. Uruguay has no legislation to promote competition in the domestic market, nor are there any
government agencies whose responsibilities incl ude the monitoring of competitive conditions.232
Indeed, competition is restricted in those sectors where state-owned enterprises still hold a monopoly,
for instance, basic telecommunications and a number of other services (Chapter IV(4)).  However, inrecent years, there has been some progress in allowing private enterprises to compete alongside
state-owned companies, even though privatization itself has been modest.  In this context, the
MERCOSUR Competition Protocol could have an  important impact on Uruguay, improving
competitive conditions, providing long-term benef its as Uruguay becomes more integrated in the
region and the world economy.
170. Uruguay has a number of statutes dealing with consumer protection.  Examples include:  the
regulation of purveyors of necessities;  a requirement to display price lists where food is sold; and theforbidding of misleading labelling or advertising.
233  However, the penalties and enforcement
mechanism provided therein are ineffective.  In addition there is no public agency responsible for
consumer information and protection.234
                                                     
231 Rowat et. al. (1997).
232 Rowat et. al. (1997).
233 Decree 25/968 of 25 January 1968, regulating purveyors of necessities;  Decree 80/968 of
1 February 1968, requiring the display of price lists where food is sold;  Decree 264/977 of 2 May 1977, and432/979 of 5 September 1979, requiring the listing of sales prices and terms by merchants;  Decree 264/982 of
28 July 1982, forbidding misleading  labelling of ad vertising;  Decree 338/982 of 22 September 1982, on
labelling and inspection requirements for foodstuffs;  Decree Law 15361 of 24 December 1982, regulatingtobacco advertisement;  Decree 141/992 of 2 April 1992, regulating product labelling;  and Law 16226 of
21 October 1991 on misleading advertisement (Rowat et. al., 1997).
234 Rowat et. al. (1997).